BRADENTON, Fla. - Moody’s Investors Service said Monday that a lawsuit challenging Atlanta’s two-year-old pension reform is a credit negative because of the uncertainty it creates.

Police, fire, and employee unions filed the suit in Fulton County Superior Court Nov. 14 arguing that a portion of the 2011 reform plan is unconstitutional because it increases employee pension contributions by 5%, and provides for that rate to increase if the city’s required contribution exceeds 35% of total payroll.

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