Calif. Court Ruling Limits Cuts to Public Pensions

California's state Supreme Court ruled that Orange County could not retroactively cut its retired employees' benefits, reports The San Francisco Chronicle, a decision that could impact local governments across the state.
by | November 22, 2011

California's state Supreme Court ruled that Orange County could not retroactively cut its retired employees' health benefits, reports The San Francisco Chronicle, a decision that could impact local governments across the state.

The court ruled that once a city or county government has pledged retirement health care benefits at a certain level, it can't go back on its promise and cut benefits for employees who have already retired.

About 5,400 retired Orange County employees and their families were challenging an increase in their health premiums in 2008. A lawyer for the plaintiff said the increase added up to $3,000 in additional costs each year per retiree, although that number is disputed.

The ruling can be found below.

 
 

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