First Legal Challenge To PEPRA Results In Stay Of Implementation
On November 29, 2012, the Contra Costa County Superior Court granted a “stay order” to temporarily prevent the Contra Costa County Employees’ Retirement Association from implementing a section of the California Public Employees’ Pension Reform Act (PEPRA, AB 197, Section 31461). That section would restrict the right of current Retirement Association members to have terminal pay, vacation cash-outs, and stand by/on-call pay be considered “compensation earnable” for purposes of calculating their retirement benefit. The petitioners allege that PEPRA’s changes to the definition of “compensation earnable” threaten to reduce the members’ retirement benefit by approximately 10-15%.
The petitioners and the Retirement Association agreed to a stipulated stay order so that the litigation can proceed in an orderly fashion. Due to the “stay order,” the Retirement Association cannot implement the changes until the superior court judge decides whether those changes are unconstitutional, meaning they are unlawful because they would impair the current members’ vested rights.
The Contra Costa County Deputy Sheriffs Association and the United Professional Fire Fighters of Contra Costa County, Local 1230 filed the litigation. Other Contra Costa County labor organizations have worked closely with the Deputy Sheriffs Association and Fire Fighters on this issue, and will formally join the litigation in the next couple of weeks.
We can expect other similar lawsuits throughout the state. If you have any questions regarding PEPRA, please contact our office.
Author: Kerianne Steele
