The Oregon Supreme Court says some of the 2013 cuts to public employee retirement benefits are unconstitutional. Today’s ruling eliminates much of the savings state lawmakers were seeking, and will probably lead to larger pension contributions for state and local governments starting in 2017. Justices ruled the Legislature couldn’t retroactively scale back an annual inflation increase of up to two percent. House Republican Leader Mike McLane and Senate Minority Leader Ted Ferrioli both expressed disappointment with the ruling, saying it reverses bipartisan work done to address PERS liabilities. The Court did rule the Legislature could change cost of living adjustments for services provided after the law was amended, and that out-of state retirees do not have a right to extra benefits to cover state taxes they don’t pay.