Over the last several years, the California Courts of Appeal have addressed questions regarding the California State Teachers’ Retirement System’s (CalSTRS) ability to collect overpayments of monthly retirement benefits paid to retirees because of, among other things, miscalculations of the retirees’ compensation earnable. A Court of Appeal handed down the most recent case, Blaser v.
Is this PERSable/Reportable? Reporting and Tracking Temporary Upgrade Pay, Out-of-Class Appointments, and Extra Duty Pays
Applying the different California Public Employees’ Retirement System (“CalPERS”) rules related to Temporary Upgrade Pay, out-of-class appointments, and non-reportable extra-duty pays can be unnerving. For classic employees, compensation for appointments meeting the definition of Temporary Upgrade Pay are reportable to CalPERS and is included in pension benefits. For out-of-class appointments, the Government Code establishes a
CalPERS Reduces Amortization Period with Impacts to Employer Contribution Rates
This post was authored by Stephanie J. Lowe and Frances Rogers.
The California Public Employees’ Retirement System (CalPERS) recently decided to change its Actuarial Amortization Policy (“Amortization Policy”), which will impact employer contribution rates for contracting agencies. The revised Amortization Policy will go into effect for public agencies in the 2021-2022 fiscal year, which
Public Employers Dealing with Employees with Disabilities Can Feel Like Being Stuck on the California Freeways
Fans of the late night television show Saturday Night Live probably have seen the recurring sketch called, “The Californians.” “The Californians” is a soap opera, and the characters portray Californian stereotypes, such as poking fun at the way Californians speak and drive and their obsession over traffic. One of the recurring jokes is that Californians
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
Court Affirms that PEPRA Does Not Limit County’s Right to Repeal COLA Pickup
On December 20, 2016, the California Court of Appeal for the Third Appellate District reaffirmed the purpose and spirit of the Public Employees’ Pension Reform Act (“PEPRA”) as a law designed to “limit,” rather than “shield,” public employees’ retirement compensation. In the recent case, San Joaquin County Correctional Officers Association v. County of San Joaquin
CalPERS Poised to Lower Discount Rate Again, Increase Employer Contributions
CalPERS agencies still reeling from the increase in employer contribution rates beginning 2013/2014 may very well experience yet another increase in the next couple of years due to a further reduction in the “discount rate” or rate of return. Simply put, the discount rate or rate of return is the percentage of expected returns on
The Importance of Posting a Salary Schedule
We’ve all heard the saying, “If it’s not written down, it didn’t happen.” In the context of retirement benefits for PERS members, the saying is slightly modified: “If an employee’s salary isn’t set forth on a properly adopted salary schedule, that individual’s retirement benefits may not pay out as expected.” While a mouthful, the message
Do You Have Seasonal Workers? What To Know About Health & Retirement Benefit Obligations
As the summer season winds down, so do public agency departments that hire seasonal workers to staff summer camps, pools, extended park and recreation hours, and a myriad of season-specific facilities and activities. But, just how do seasonal workers impact the agency’s health and retirement benefit obligations?
- The Affordable Care Act (“ACA”), Seasonal Worker Exception
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