Two former public employees have filed a class-action lawsuit against the state challenging pension legislation that state lawmakers passed at the end of the recently concluded legislative session.

Gov. Tim Pawlenty reversed his original stance in opposition to the omnibus pension bill and signed it 18 minutes before the midnight deadline.

Through a spokesman, Pawlenty said the bill lacks reform, adds costs to local governments and worsens the state's structural budget problems.

The state House this afternoon passed a pension conference report 116-16 that seeks to shore up the ailing finances of the state's three statewide pensions. The Senate today passed the conference report 52-14.

The Minnesota Senate passed the omnibus pension bill 44-19 after Republicans unsuccessfully called for the state to remove the risk of future state employee pension benefits from the state's shoulders.

An omnibus bill that proposes to shore up public pension funds by reaching into the pocketbooks of both public employees and retirees is teed up for end-of-session floor debate.

Teachers’ union is a lone — but loud — voice of opposition to omnibus bill The words being used to describe this year’s omnibus pension bill are more dramatic than those from previous legislative sessions. Legislators and lobbyists are referring to it as “shared sacrifice,” and one GOP state representative even used the term “bailout.”

Some of the state's most influential lobbying organizations are pushing state lawmakers to make the politically unpopular decision to cut the growth of pension benefit increases for retired public employees.

State budget problems won't be the only issue taken up by lawmakers in 2010. A raft of policy issues are expected to get time in the relevant House and Senate committees this session.

The board of a major Minnesota public pension plan has agreed to consider asking state lawmakers in 2010 to increase contributions and cut benefit increases to shore up its shaky finances.