In an update from ACERA’s previous posting regarding the February 11 DSA Lawsuit hearing, Judge Flinn issued a Second (Modified) Tentative Combined Decision on February 28. The full text of that decision is attached to this page. ACERA staff is seeking further clarity, and hopes to be able to provide more information to members after the upcoming hearing on March 7.
A hearing was held on February 11, 2014 before Judge Flinn in Contra Costa County Superior Court in the lawsuit known as DSA v. CCCERA. The lawsuit was brought by Deputy Sheriff’s Association (DSA) and other employee groups who are opposing ACERA and other county pension funds’ implementation of AB 197, a part of the Public Employees’ Pension Reform Act (PEPRA) which was passed in California in late 2012.
On December 17, 2013, Contra Costa Superior Court Judge David Flinn, who is presiding over the lawsuit known as DSA v. CCCERA, et. al., issued a tentative combined decision in the case. The lawsuit was brought by Deputy Sheriff’s Association (DSA) and other employee groups who are opposing ACERA and other county pension funds’ implementation of AB 197, a part of the Public Employees’ Pension Reform Act (PEPRA) which was passed in California in late 2012.
On December 10, 2013, Judge Flinn, Contra Costa County Superior Court, conducted a hearing on the claims made by the Deputy Sheriffs’ Association and other representatives of active and deferred ACERA members who are challenging the application of AB 197 (part of the Public Employees’ Pension Reform Act) to those members.
As our members will recall, Judge Flinn issued a preliminary decision in November, stating his determination:
In December 2012, employee groups filed suit over ACERA’s implementation of the 2012 California Public Employees’ Pension Reform Act (AB 197), and the parties agreed to a stay on the implementation. On November 8, 2013, the Honorable Judge Flinn, Contra Costa County Superior Court issued his preliminary determination in the first phase of the lawsuit. There remain many questions, and many issues left to resolve in the next hearing to be held on December 10, 2013, but ACERA is reporting on the initial determination here to keep members informed:
When calculating your retirement benefit, the law requires that ACERA use a formula which includes your compensation. The compensation used is often a subset of all the compensation you have earned over the final average salary period (generally 12 months for Tier I and 36 months for Tier II). For employees who became ACERA members prior to January 1, 2013, the term for the compensation included in retirement calculations is “compensation earnable.” Due to passage of the California Public Employees’ Pension Reform Act and AB 197 (PEPRA), the term used for the compensation
ACERA’s implementation of one of the new state pension reform laws will be delayed until a lawsuit filed against ACERA is resolved. This applies to all active members (current employees) and deferred members, and applies to all proposed changes regarding salary that were to be enacted on January 1, 2013. The new effective date for the law will be determined by the court. For more information, read ACERA’s Notice of Delay in Implementing Assembly Bill 197.