The Associated Press

SALEM — A suit involving more than 300 former public employees who paid income taxes on disability payments has been settled.

Salem lawyer Paul Connolly says the former workers will get typical payments of $5,000 to $10,000, although some may get nothing and others as much as $30,000.

The lawsuit started when Salem retiree Brad Howser sued the Public Employees Retirement System and the state revenue department for refunds of $20,000 he had paid in taxes on the advice of the retirement system.

After getting new legal advice, PERS determined in 2004 that the disability payments weren't taxable.

Eventually, 307 other former public employees who retired because of work-related injuries or disabilities were involved in a class-action lawsuit.

The settlement was approved Nov. 17 in Marion County Circuit Court. The state agreed to reimburse retirees who paid taxes they didn't owe.

The retirees must now submit their past tax filings to show how much they paid.