Ruling could make school district pay hundreds of millions

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ATLANTA (AP) — One of Georgia's largest school districts could owe hundreds of millions of dollars after the state Supreme Court found it stopped making retirement contributions without proper notice.

The 7-0 decision , released Monday, finds the DeKalb County district broke its own bylaws requiring a two-year notice before ceasing contributions.

A teacher and a school counselor sued the district in 2011, but the suit will likely become a class-action covering all affected employees. The Atlanta Journal-Constitution reports that in 2009-2010, the last year DeKalb funded the benefit, it paid $26.5 million.

DeKalb started making the payments, which didn't require an employee match, after it withdrew from making contributions to the federal Social Security system. The school system has since restarted a less generous retirement fund. Employees also get state pension benefits.

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Information from: The Atlanta Journal-Constitution, http://www.ajc.com


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