August 30, 2016

WINNING THE WAR ON UNIONS:

Finally, a California government pension safety valve (The San Diego Union-Tribune Editorial Board,  Aug. 27, 2016)

A unanimous state appeals court ruling that local and state governments can make "reasonable" changes in pension terms going forward is the best news on the California pension front ... ever.

For decades, under what was known as "the California rule," once a government employee was hired, her or his pension benefits could only be increased, not reduced. This was based on the assumption that these benefits amounted to a contract between employer and employee.

But in a ruling on unions' push to continue late-career pension spiking in Marin County despite a 2012 state law saying such maneuvers were no longer legal, Associate Justice James Richman made a broader point: "While a public employee does have a 'vested right' to a pension, that right is only to a 'reasonable' pension -- not an immutable entitlement to the most optimal formula of calculating the pension."

Posted by at August 30, 2016 11:43 AM

  

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