In the past few years, the courts have made it more difficult to establish a vested right to retiree medical benefits. We now have a decision that greatly reduces employee / retiree defenses that a change in benefits is unconstitutional. The First District Court of Appeal last week upheld the Marin County Employees’ Retirement Association’s
"'37 Act"
Court Rules That ‘37 Act Employers Retain The Right To Discontinue Paying Employee Member Contributions After PEPRA
An employer subject to the County Employees Retirement Law of 1937 (“’37 Act”) maintains the unilateral right to discontinue picking-up the member contributions of its employees after exhausting all collective bargaining obligations. This was the decision of the San Bernardino County Superior Court on April 11, 2014 in denying a Petition for Writ of Mandate…
The California Public Employees Pension Reform Act Of 2013 Will Be Addressed By The Legislature Tomorrow
This guest post was authored by Alison Neufeld
Public sector pension reform has been a hot topic for months. But despite the public focus on the Governor’s 12-Point Pension Reform Plan, voter initiatives, charter amendments, litigation and bankruptcies fueled by unfunded pension liabilities, time seemed to be running out for pension reform during the current…
How the Latest Proposed Pension Reform Bill Will Impact Public School and Community College Employees Enrolled in CalSTRS
Pension reform might still have a fighting chance. As we mentioned in yesterday’s Special Bulletin, Governor Brown announced that he had reached an agreement with Legislative Democrats to move forward on pension reform with the California Public Employees’ Pension Reform Act of 2013 (”CPEPRA”).
At the eleventh hour, the joint Conference Committee on…
Comprehensive Pension Reform For California’s Local Public Employers Will Only Happen At The State Level…But Not Any Time Soon
Does your public agency contract with, or a member of, CalPERS, STRS, or a ’37 Act system? Have you exhausted all possible ways under those systems to reduce pension costs such as reducing benefits for new hires, eliminating or reducing employer paid member contributions, or reducing special compensation? Do you want to achieve…
Withholding Medicare And Social Security Taxes From Retirees’ Wages
This guest post was authored by Oliver Yee
In today’s challenging economic environment, public agency employers are looking to employ retirees for overflow work, special projects and other extra help assignments. There are, however, important implications that agencies should be aware of when hiring retirees, particularly retirees who are members of the California Public Employees&rsquo…
From Diego To The Bay: California Voters Love Pension Reform, But It’s Not As Simple As It Looks For Public Employers
Two pension reform ballot measures were overwhelmingly passed by voters in San Diego and San Jose last week. Now, other cities, counties and districts in California that participate in CalPERS or STRS, or maintain a ’37 Act system are asking, “can we do the same thing?” The short answer is, “no,” at least not at…
Rescission Of Pension Benefits By City Held To Be Lawful
The vested nature of public employee retirement benefits is a hot topic. On the one hand, there are municipalities dealing with increasing pension costs and unfunded liabilities. On the other hand, there are often times a vested right to future pension benefits for employees and retirees cannot be impaired except under very limited circumstances. Most…
You Say “Termination;” I Say, “Retirement.” Is It Just Semantics Or Are They Mutually Exclusive?
For every death certificate filed, there is one “manner” and one or more “cause(s)” of death. The manner is essentially whether it was accidental, natural, suicide, homicide or undetermined, but there can be only one. The cause, though, is more specific, such as exsanguination or a cardiopulmonary embolism and often times there is more than…
California Supreme Court Denies Review Of Court’s Decision That Orange County’s Retroactive Retirement Formula Enhancement Is Not Unconstitutional
Yesterday, the California Supreme Court denied the County of Orange’s petition to review the decision in County of Orange v. Association of Orange County Deputy Sheriffs (2011) 192 Cal.App.4th 21. This means the Court of Appeal’s decision stands holding that the County’s grant of a retroactive enhanced retirement formula for employees “all years of…