Florida Supreme Court sides with Rick Scott in pension lawsuit

In a rare legal victory for Gov. Rick Scott, the state's highest court upheld a 2011 law that reduced state employees' earnings by 3 percent to offset the state's contribution to their retirement.

In its 4-3 decision, the Florida Supreme Court reversed a lower court's ruling and upheld the law. (Read the ruling for Scott v. Williams here.)

Scott, who had pledged to align state employees' pensions with other states and signed the pension reform law, celebrated the news on Twitter.

"The court's ruling today supports our efforts to lower the cost of living for FL families," Scott tweeted on Jan. 17, 2013.

House Speaker Will Weatherford, R-Wesley Chapel, and Senate President Don Gaetz, R-Niceville, issued statements saying they were still reviewing financial aspects of the decision but were pleased. Weatherford, who wants new workers to be on the state's 401(k)-like plan over the pension option, got a little more candid on Twitter, tweeting, "This day just got $2 billion better. ://bit.ly/Ux07A1  #penniesfromheaven."

He was referring to the lower court judge's order that the state reimburse, with interest, the money withheld from state workers' paychecks as a result of the law. Because the state continued to withhold 3 percent from paychecks, the possible hit was expected to reach $2 billion by June 30, 2013, the end of the fiscal year.

In a March 2012 ruling, Leon County Circuit Judge Jackie Fulford called the law an "unconstitutional taking of private property without full compensation" that violated employees' collective bargaining rights. She criticized the Legislature for citing the state's pension liability as its reason for the paycut but using the savings to plug a $3.6 billion budget hole instead.

Supreme Court justices agreed with the state, arguing they were bound by legal precedent to uphold the state's actions. Those justices were Charles Canady, Chief Justice Ricky Polston, Jorge Labarga and Barbara Pariente.

Justices Peggy Quince, James E.C. Perry and Fred Lewis dissented.

The Florida Education Association led the original lawsuit against the pension reform law. In a statement, FEA president Andy Ford said, "We are more determined than ever to change the face of the Florida Legislature. The next elections in 2014 can turn this decision around."

Scott's pledge remains Promise Kept.