FAULKENBURY v. TEACHERS' AND STATE EMP. RETIREMENT SYSTEM

No. 109PA96.

483 S.E.2d 422 (1997)

Dorothy M. FAULKENBURY, on behalf of herself and all others similarly situated, Plaintiffs, v. TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM OF NORTH CAROLINA, a corporation; Board of Trustees and State Employees' Retirement System of North Carolina, a body politic and corporate; Dennis Ducker, Director of the Retirement System Divisions and Deputy Treasurer of the State of North Carolina (in his official capacity); Harlan E. Boyles, Treasurer of the State of North Carolina and Chairman of the Board of Trustees Teachers' and State Employees' Retirement System of North Carolina (in his official capacity); and State of North Carolina, Defendants. William H. WOODARD, on behalf of himself and all others similarly situated, Plaintiffs, v. NORTH CAROLINA LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM, a corporation; Board of Trustees of the North Carolina Local Governmental Employees' Retirement System, a body politic and corporate; Dennis Ducker, Director of the Retirement System Divisions and Deputy Treasurer of the State of North Carolina (in his official capacity); Harlan E. Boyles, Treasurer of the State of North Carolina and Chairman of the Board of Trustees of the North Carolina Local Governmental Employees' Retirement System (in his official capacity); State of North Carolina, Defendants. Bonnie G. PEELE, on behalf of herself and all others similarly situated, Plaintiffs, v. TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM OF NORTH CAROLINA, a corporation; Board of Trustees Teachers' and State Employees' System of North Carolina, a body politic and corporate; Dennis Ducker, Director of the Retirement System Divisions and Deputy Treasurer of the State of North Carolina (in his official capacity); Harlan E. Boyles, Treasurer of the State of North Carolina and Chairman of the Board of Trustees Teachers' and State Employees' Retirement System of North Carolina, (in his official capacity); and State of North Carolina, Defendants.

Supreme Court of North Carolina.

April 11, 1997.


Attorney(s) appearing for the Case

Womble Carlyle Sandridge & Rice by G. Eugene Boyce, Raleigh; Susan McFarlane, Louisburg; and Marvin Schiller, Raleigh, for plaintiff-appellants and -appellees.

Michael F. Easley, Attorney General by Edwin M. Speas, Jr., Senior Deputy Attorney General, and Norma S. Harrell, and Tiare Bowe Smiley, Special Deputy Attorneys General, for defendant-appellants and — appellees.


WEBB, Justice.

The principal question raised by this appeal is whether a change in the law, which reduced plaintiffs' disability retirement payments, violates Article I, Section 10 of the Constitution of the United States, which provides in part: "No state shall ... pass any... law impairing the obligations of contracts." U.S. Const. art. I, § 10. In order to resolve this question, we must first determine whether there...

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