Benefits & Executive Compensation News

Case: Retirement Plans/Benefit Calculation (Cal.)

July 31, 2020, 4:56 PM

The California Supreme Court upheld provisions of a law that stops public employees from boosting their salaries before retirement with unused vacation days and other leave. At issue were provisions in the Public Employees’ Pension Reform Act of 2013 that stopped retirement systems from counting money employees nearing retirement get by cashing out unused vacation and other leave as compensation when calculating pension benefits. Various employee groups and unions brought suit, claiming that the state was trying to retain money that was promised to employees who were in the retirement system before the law took effect. The court determined that...

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