California (Pacific Grove) — Limit...

California (Pacific Grove) — Limited Employer Contributions

Posted by Leila Walsh in - -View All States - - on May 19, 2014 with No Comments

Ballot initiative:

Measure R (November 2010)

Type of reform: 

The measure placed a limit of 10 percent on employer contributions and provided that employees have no vested right to retirement benefits.

Case: 

Pacific Grove Police Officers Association v. City of Pacific Grove, No. M109123 (Monterey Superior Court, Judge Thomas Wills) (filed Nov. 3, 2010)

Status of litigation:  

The plaintiffs alleged that the ballot initiative was a violation of the California Constitution and labor law. On May 17, 2013, the court struck down the ballot initiative. In a follow-up statement of decision issued on June 18, 2013, Judge Willis held that under California precedent, employees have a vested right to pensions when hired, and no alterations can occur unless accompanied by an equal advantage. Moreover, the city charter gave the council, not the voters, the right to set compensation.

Relevant documents: 

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