The problems facing public agencies, many of which are struggling just to keep their heads above water, may get much worse in the near future. The California Legislature is currently debating Senate Bill (SB) 278 (Leyva), which if passed would create new and in some cases retroactive financial burdens and uncertainties for local public agencies
California Supreme Court May Soon Decide the Fate Of The “California Rule”
The California Supreme Court will soon schedule oral argument in controversial cases involving legislative pension reform impacting the pension benefits of state and local government employees. By the close of 2020, the Supreme Court will issue a decision that may very well strike at the heart of the so-called “California Rule.”
For nearly 60 years,
Voter – Backed Pension Reform Is Dealt a Blow by California Supreme Court
This post was authored by Frances Rogers and Brett A. Overby.
Last week, the City of San Diego’s Proposition B, a 2012 voter-approved ballot measure designed to save the City’s weakening pension system, was dealt a potentially fatal blow by the California Supreme Court in Boling v. Public Employment Relations Board. Although put
Overpaid Pensioners Lose on All Grounds
This post was authored by Erin Kunze.
In a Fourth District appellate case, Krolikowski v. San Diego City Employees’ Retirement System, issued in May 2018, the Court found that two overpaid retirees had no valid defense against the San Diego City Employees’ Retirement System (“SDCERS”) in recouping payments made to the retirees for
California Court of Appeal Issues A Contrary Decision Addressing “Vested Rights” of Public Employees in the Aftermath of PEPRA: Where Will the Supreme Court Land?
This post was authored by Frances Rogers and Brett A. Overby
A California Court of Appeal recently issued a decision with implications that can affect all public employers in California and in contrast to a decision by another Court of Appeal just over a year ago. The decision issued in Alameda County Deputy Sheriff’s Assn.
The New Year is Nigh, and so is PEPRA’s Authority to Impose Increases to Member Contributions
January 1, 2018, is just around the corner, and as of that date PERS contracting agencies, as well as employers in ‘37 Act county retirement systems, will for the first time have the legal ability to impose increases to the member contribution rate of their classic employees.
The Public Employee Pension Reform Act of 2013
CalPERS Explains Impact to Employer Contributions Due to Reduction in the Assumed Rate of Return
On January 19, 2017, CalPERS provided greater clarity on how contracting agency employers, and even some members, will see contribution rate increases due to a decision to reduce the assumed rate of return. On December 20, 2016, we reported that the Board of Administration was poised to, and in fact did, reduce the
Courts Continue to Chip Away at Vested Rights
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
Is Bankruptcy the Way Out of Pension Obligations?
We are all aware of the ongoing discussion over the rising cost of public pension benefits and whether they are sustainable in the long run. However, one unanswered question was lurking in the background: Is Chapter 9 bankruptcy a way for struggling municipalities to shed these pension liabilities? We now have a glimpse at what
Governor Announces Agreement on Comprehensive Pension Reform Pending Approval of Legislature by Friday
This guest post was authored by Steve M. Berliner
Governor Brown issued a press release today indicating that an agreement was reached with legislative Democrats on public employee pension reform at the state level to take effect on January 1, 2013. Details are sketchy at this point but it does appear that most of the