City of Marysville v. State

The City of Marysville refused to pay funds allegedly owed to the Public Employees' Retirement System on the grounds that the payments were unconstitutional as violations of article 8, section 7 of the Washington State Constitution, prohibiting a gift or loan of the City's credit. This position was sustained by the trial court. We reverse, finding no constitutional prohibition applicable in this case.

In January of 1960, the City of Marysville was admitted as a participating employer in the Public Employees' Retirement System, commonly called PERS. Eleven years later, in October of 1971, the…