Cherry, Jr. v. Mayor and City Council of Baltimore City, No. 13-1007 (4th Cir. 2014)Annotate this Case
Plaintiffs, active and retired Baltimore police officers and firefighters who participate in a public pension plan, challenged the City's decision changing the manner in which annual increases to pension benefits are calculated. Plaintiffs claimed that the substitution of a cost-of-living adjustment for a "variable benefit" violates the members' rights under the Contract Clause and the Takings Clause. The court concluded that the members' rights under the Contract Clause were not impaired because the members retained a state law remedy for breach of contract. Accordingly, the court vacated the district court's judgment with respect to the City's elimination of the variable benefit. The court affirmed the district court's decision upholding the remaining portions of the ordinance at issue, and vacated the district court's order dismissing the Takings Clause claim. The court remanded for further proceedings.