September 28, 2020

The State Supreme Court has finally ruled on the Marin County pension case by sending this case back to the appellate court for final disposition because the ruling in the Alameda case, that was just decided by this court, was the same as the Marin case; anti-spiking practices curtailed by the 2012 pension reform act (PEPRA).  The ‘California Rule’ remains intact as a result of this decision.  Had the supreme court found in favor of Marin County’s pension system, pension provisions could have been reduced for working public employees because the law would have been changed to allow pensions to only be “reasonable.”  This would permit public agencies to change pension provisions which could reduce pension value over time – a reversal of the “California Rule.”  This means the ‘California Rule’ has prevailed again. Two cases that were returned to appellate courts remain as potential threats to the ‘California Rule.’ Both of these cases were rejected by the high court based on the Alameda Decision but there is a different issue in them that must be relitigated by the appellate courts that first decided these cases. It’s possible that they could be appealed to the state supreme court again.

RPEA supported ‘amicus briefs’ submitted to the supreme court that urged the court to retain the California Rule.

Al Darby