FROM: Debby Cherney, Chief Executive Officer
SUBJECT: Alameda County Deputy Sheriff's Association v. Alameda County Employees' Retirement Association - California Supreme Court Decision Summary
RECOMMENDATION:
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Update re California Supreme Court Decision Alameda County Deputy Sheriff's Association v. Alameda County Employees' Retirement Association ("Alameda") and recommend the Board adopt Amendment to the Pay Code Resolution to implement Government Code section 31461 subdivision (b), effective as to SBCERA members who retired on and after January 1, 2013, pursuant to Alameda.
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BACKGROUND:
Ashley Dunning from the Nossaman firm will provide the Board with a summary oral report on the July 30, 2020 California Supreme Court decision in this closely-watched and important case.
The SBCERA Board of Retirement is required by Government Code sections 31461, 31542, 7522.10, and 7522.34, as well as Board Benefits Policy No. 026, Compensation Earnable and Pensionable Compensation, to determine what items of member compensation are included in employee compensation upon which appropriate contribution rates should be applied and upon which retirement benefits are calculated.
Effective January 1, 2013, the Legislature adopted amendments to Government Code section 31461's definition of compensation earnable in Assembly Bill 340 and Assembly 197 (collectively ("AB 197")) and the implementation of AB 197 by four other retirement systems governed by County Employees' Retirement Law of 1937 (CERL) had been challenged in court as a violation of members' constitutional rights, resulting in two cases before the California Supreme Court, one of which was decided on July 30, 2020- Alameda County Deputy Sheriff's Assoc. v. Alameda County Employees'' Retirement Association, Cal. Supreme Court Case No. S247095. ("Alameda")
Pending the resolution of the Alameda case, in March 2019, SBCERA adopted in its "AB 197 Clean-Up Resolution" addressing certain types of ...
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