Saturday, January 16, 2021
  • About
  • Advertise
  • Careers
  • Contact
Pension Changes
  • Home
  • Government Policy
  • Pension Changes
  • Pension Information
  • Pension Rights
  • Retirement Pension
No Result
View All Result
Pension Changes
Home Pension Changes

What the CA Supreme Court pension decision means for workers

July 31, 2020
in Pension Changes
What the CA Supreme Court pension decision means for workers
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

Related posts

State pension changes to give hundreds of thousands huge boost in retirement savings | Personal Finance | Finance

State pension changes to give hundreds of thousands huge boost in retirement savings | Personal Finance | Finance

January 14, 2021
Biden touts gender parity and diversity of his Cabinet

Biden touts gender parity and diversity of his Cabinet

January 12, 2021

A major pension decision published by the California Supreme Court on Thursday leaves retirement benefits intact for nearly all public workers in the state.

The case was the second in two years challenging the so-called California rule, the set of legal precedents that has long prevented state and local governments from reducing public pensions without offering new benefits to make up for the losses.

The court’s decision clears from the judicial pipeline any major cases that lawmakers could use to reduce workers’ retirement benefits to try to save money.

The court restricted its decision to specific practices that some county public workers have used to inflate their pensions before retirement, such as figuring bonuses, extra pay for off-hours work and leave balances into their pension calculations.

The Alameda County Deputy Sheriff’s Association filed the lawsuit in 2012 as a challenge to former Gov. Jerry Brown’s Public Employees Pension Reform Act, which banned the so-called pension spiking.

The decision means Alameda deputies hired before 2012 won’t be able to go back to counting those types of pay as pensionable, nor will other public workers in similar situations at the 20 counties that run their own pension systems instead of paying into CalPERS.

Are retiree pensions safe?

The ruling has no impact on retirees, current state workers or the majority of current workers in local governments.

Regarding the California rule, the court suggested saving money isn’t a good enough reason to modify workers’ future pension benefits, even when a worker won’t receive those benefits for decades to come.

Will the ruling help employers cut pensions?

Local government attorneys and experts might be looking for suggestions in the 90-page decision that the California rule has been weakened. Even if they find language they believe diminishes the rule, many things would have to happen — starting with the passage of new local or state laws — before any benefits would be affected.

Even then, it’s unlikely retirees would be affected.

As governments deal with hits to their budgets from the coronavirus, the court’s decision likely will act as a deterrent from looking for savings from pension changes.

And even in bankruptcy, the City of Stockton didn’t reduce pension benefits. City leaders decided they had to keep the benefits to remain competitive in hiring public safety workers.

Related stories from Sacramento Bee


Profile Image of Wes Venteicher

Wes Venteicher anchors The Bee’s popular State Worker coverage in the newspaper’s Capitol Bureau. He covers taxes, pensions, unions, state spending and California government. A Montana native, he reported on health care and politics in Chicago and Pittsburgh before joining The Bee in 2018.

— to www.sacbee.com

Previous Post

California High Court Upholds Law Closing Pension-Padding Loopholes

Next Post

Pension council rejects lower growth assumptions

Next Post
Pension council rejects lower growth assumptions

Pension council rejects lower growth assumptions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED NEWS

Gov’t confirms 2.5% state pension increase in 2021

Gov’t confirms 2.5% state pension increase in 2021

1 month ago
Tackling the Issue of ‘Time Poverty’ with Brewin Dolphin | | Irish Building Magazine.ie

Tackling the Issue of ‘Time Poverty’ with Brewin Dolphin | | Irish Building Magazine.ie

9 months ago
Arcadia staff rights for redundancy pay and pensions as Top Shop owner collapses

Arcadia staff rights for redundancy pay and pensions as Top Shop owner collapses

2 months ago
TPO upholds complaint against South Wales Fire & Rescue Service

TPO upholds transfer complaint against WTW and Lloyds Pension Trustees

1 month ago

FOLLOW US

  • 79 Followers
  • 27.6k Followers
  • 40.7k Subscribers

BROWSE BY CATEGORIES

  • Government Pension Policy
  • Pension Changes
  • Pension Information
  • Pension Policy
  • Pension Rights
  • Retirement Pension
  • Uncategorized

BROWSE BY TOPICS

2021 2021 Pensions auto-enrolment age 18 auto enrolment pension contributions 2021/22 auto enrolment rates 2020/21 auto enrolment rates 2021/22 cashing in pension at 55 cashing in pension calculator cashing in small pension pots CCP retirement check my state pension Disabled pensions drawdown employer pension contributions 2021/22 government policy examples uk list of government policies uk minimum pension contributions 2021 minimum pension contributions 2022 new state pension Pension age pension issues pension ombudsman pension plan pension regulator Pensions Advisory Service Pensions Brexit pension scheme uk Pensions outlook retirement 2 million scams scheme funding Single mothers pensions State Pension State Pension age state pension changes state pension forecast State Pensions State triple lock taking pension at 55 the pensions regulator Therese Coffey uk pension age UK State Pension uk state pension age what is government policy uk

POPULAR NEWS

  • Multiemployer pension reform not happening this year

    Multiemployer pension reform not happening this year

    5 shares
    Share 0 Tweet 0
  • Exit payment cap: Implications for the LGPS

    0 shares
    Share 0 Tweet 0
  • Public Service Pensions Update | October 2020

    0 shares
    Share 0 Tweet 0
  • NEST: More than a pension | Country Report

    0 shares
    Share 0 Tweet 0
  • Builders were not self-employed, rules employment tribunal

    0 shares
    Share 0 Tweet 0

Follow us on social media:

Recent News

  • Law, Practice and Precedents (8th Edition)
  • State pension payments can be received while working – will more tax need to be paid?
  • What is the average UK retirement income?

Category

  • Government Pension Policy
  • Pension Changes
  • Pension Information
  • Pension Policy
  • Pension Rights
  • Retirement Pension
  • Uncategorized

Recent News

Law, Practice and Precedents (8th Edition)

Law, Practice and Precedents (8th Edition)

January 15, 2021

State pension payments can be received while working – will more tax need to be paid?

January 15, 2021
  • About
  • Advertise
  • Careers
  • Contact

© 2020 Please contact us on partnership@pensionchanges.co.uk if you would like to reach our audience.

No Result
View All Result
  • Home

© 2020 Please contact us on partnership@pensionchanges.co.uk if you would like to reach our audience.