HomeMy WebLinkAbout04.b. Receive pension reform update associated with employees identified under the estoppel class Page 1 of 1
Item 4.b.
CENTRAL SAN
Y-109-ITMEN ME
June 7, 2022
TO: ADMINISTRATION COMMITTEE
FROM: TEJI O'MALLEY, HUMAN RESOURCES AND ORGANIZATIONAL
DEVELOPMENT MANAGER
REVIEWED BY: ROGER S. BAILEY, GENERAL MANAGER
SUBJECT: RECEIVE PENSION REFORM UPDATE ASSOCIATED WITH EMPLOYEES
IDENTIFIED UNDER THE ESTOPPEL CLASS
Contra Costa County Employees' Retirement Association (CCCERA) has been involved in lengthy
litigation regarding the pension reforms that were enacted in California in 2012 (Public Employees'
Pension Reform Act (PEPRA), Assembly Bill (AB) 340 and AB 197). In 2014, the trial court decision had
created a group of employees referred to as the "estoppel class" for whom the retirement benefit
calculation allowed for additional hours of vacation leave to be included in their final average salary (FAS)
period which is used to calculate the monthly pension benefit.
In July of 2020, the California Supreme Court issued a decision which stated that the trial court order be
vacated, and the estoppel class was not lawful.
Seven District employees were impacted as their pension benefit had been calculated including leave that
should not have been included in their FAS period. CCCERA implemented the decision and reduced the
pension for those impacted going forward but also determined that it would not collect on any overpayment
retroactively and which had already been paid to the retiree. All seven retirees were notified of this action in
October of 2021 by CCCERA.
Since those retirees did make contribution amounts on each calendar year sale of vacation hours (up to
160 hours)within their FAS and they are no longer eligible for the higher pension benefit which was
inclusive of two vacation sales (up to 320 hours), they are owed a refund of their contributions. As
CCCERA has determined not to collect any overpayments that were owed, the refunds have been applied
against the overpayment amounts.
Staff will be available at the meeting to answer any questions.
Strategic Plan Tie-In
GOAL THREE: Fiscal Responsibility
Strategy 2—Ensure integrity and transparency in financial management
June 7, 2022 Regular ADMIN Committee Meeting Agenda Packet- Page 11 of 13