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Borders v. City of Atlanta

The superior court properly granted summary judgment in favor of defendants City of Atlanta, the Mayor and the City Council in a class action lawsuit alleging that they breached certain City employees' employment contracts and violated the impairment clause of the Georgia Constitution in connection with a City ordinance that increased the amounts members were required to contribute to their benefit pension plans.

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This is an appeal in a class action challenging a 2011 City of Atlanta City ordinance Ordinance and the consequent amendment Amendment by the City of its three defined benefit pension plans Plans, i.e., the City’s General Employees’ Pension Plan; the City’s Police Officers’ Pension Plan; and the City’s Firefighters’ Pension Plan; the Ordinance and Amendment increased the percentage of salary required as the annual contributions of the members of the Plans.1 The action, filed against the City, the Mayor, and members of the Atlanta City Council collectively Defendants, is on behalf of City employees who participated in the Plans prior to November 1, 2011, and had not retired prior to that date, which was the start date for the increase, and were otherwise subject to the Amendment Plaintiffs.2 For the reasons which follow, we affirm the grant of summary judgment in favor of Defendants on Plaintiffs’ claims of breach of contract and unconstitutional impairment of contract and their consequent requests for declaratory and injunctive relief.

As noted, the Plans are defined benefit pension plans. As such, they provide each eligible member3 with a monthly income upon retirement for the remainder of the member’s life and a monthly income to the member’s surviving eligible beneficiary, if applicable, for the remainder of the surviving eligible beneficiary’s life. The member’s annual benefit amount is a percentage of the member’s annual salary, and is calculated at retirement by using a pre-determined formula.4

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