COLUMBIA--Four state employees have filed a lawsuit claiming changes approved this year to the state retirement system shortchanges them of pay.

The employees are part of the Teacher and Employee Retention Incentive, or TERI program. The program allows employees to return to work after retirement and earn both pension benefits and a salary without contributing to the retirement system.

Under the new law, workers will be required to chip in 6.25 percent of their paycheck starting Friday.

Four workers filed a lawsuit on June 13 alleging the state broke its contract with TERI workers and have asked a judge to temporarily stop the state from deducting the money from their paychecks.

The employees claim that requiring them to pay into the system but denying the credit for extra service, which would increase their pension, is like a sudden pay cut.

The suit seeks class-action status, which could include 13,670 TERI workers.

"It's like the government is raising money by calling it something other than a tax," said Cam Lewis, an attorney for the workers. "It's taking their (TERI workers) money."

But Bobby Stepp, the state's attorney in the lawsuit, said the state must have some leeway to make its retirement system financially sound for its 89,000 current and 181,000 future retirees.

"I certainly understand the point of view of the TERI employees, but the general issue is broader than that," Stepp said. "It involves the actuarial stability of the entire retirement system."

Dick Harpootlian, who also is representing the workers, said the issue is whether the change is legal. "A deal is a deal," he said.

Nancy Layman, 63, an attorney for the Department of Health and Environmental Control, says she'll lose about $4,200 in pay in the next year.

She earned $67,560 last year before retiring in May after 28 years.

"That was one of the inducements to sign -- that they would no longer be taking the 6 percent out because, in effect, I was retired," she said.

The change will bring in an extra $45 million to support the retirement system.

The system needs more money fast or it may not meet 30-year federal guidelines for solvency, said Rep. Herb Kirsh, D-Clover, who helped change the TERI law this year.

"You want the retirement plan to be like United Airlines pension plan and go under?"

Besides, Kirsh said, the TERI workers will get benefits for the cash they'll pay into the system -- a life insurance policy and cost-of- living increases in their pension.

Kirsh also said the state would not have been able to pay a 3.4 percent cost-of-living adjustment to 63,000 state employees had changes not been made to the TERI program.