Despite the ruling, the court sidestepped a much larger issue, whether core pension benefits promised at the time of hire for public workers can be changed.
Group highlights financial risks sustained from misconduct in the workplace.
But the court might rule on a narrower issue, continuing the controversy over whether the benefits promised employees are fixed for life.
Decision could cost the city millions in creating retroactive pensions.
Proposed legislation would create an optional defined contribution plan.
City could be forced to create pensions for 3,000 workers if overturned.
City council significantly boosts annual payment from $1.3 million to pay down unfunded liability.