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Judge: Don't divert pension money

Gov. Mike Easley should not have diverted $225 million headed to the state pension fund, a judge said.

An Appeals Court ruled Tuesday that Easley should not have intercepted $225 million for the state employee pension to cover a budget shortfall in 2001.

Though the state repaid the money and pension benefits were not affected, the 14 former and current state workers who first sued in 2002 wanted to ensure that it didn't happen again.

Republican Gov. Jim Martin also withheld pension money in 1991.

"It's a great ruling for the teachers and the state employees," said Hardy Lewis, an attorney representing the plaintiffs. "It essentially says the government can't use the pension fund as a rainy-day fund." (AP)

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