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Latest updates on pension litigation, retiree legislation, CRCEA news, and upcoming REAVC events.
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VCERA Pension Litigation (Alameda Case)
California Supreme Court Review Expected in 2026
REAVC’s most important issue at this time is protecting VCERA retirees from potential pension reductions for those who retired on or after January 1, 2013. VCERA insists that these reductions are required by the California Supreme Court’s Alameda decision (effective September 1, 2020).
So far, after litigation filed by VCERA, the Superior and Appellate Courts have said that while VCERA MUST apply the requirements of Alameda to employees who retire on or after September 1, 2020, they only MAY apply the required changes on or after beginning August 2020 for those who retired January 1, 2013, or later. VCERA still claims going back to those who retired on or after January 1, 2013 is required.
The main focus of reductions at this point are elimination of some vacation buydown from final compensation; callback and standby pay (and similar), and for more recent retirees, removal of Flex Credit from final compensation.
REAVC’s position: We do not agree on what pay items need reduction or elimination, and certainly not to retirees since 2013. This is based on legal advice, union opinions, and the opinions of other 1937 Act Counties. We do not agree that these reductions are required by law at all.
REAVC’s primary duty is to protect retirees’ pensions, especially for those already retired. We take this responsibility very seriously, first to be sure that VCERA only reduces pensions for those that retired on or after September 1, 2020, NOT those who retired on or after January 1, 2013, as they currently plan to do. Just as importantly, we want to be sure that the actions follow the true requirements of the law.
We have tried to work with VCERA, appearing at every Board meeting for more than a year, providing documents to prove our case. Seeing no opening for discussion, REAVC hired an attorney on your behalf. We have also supported the ongoing litigation by the unions. In doing this, we have been working with another group, also working for all of us — a retired CEO, a retired elected official, a retired member of County Counsel, retired department heads, and retired division heads. They have been admitted as “Friends of the Court,” and have also appeared before the VCERA Board and the courts, as needed.
CRCEA Newsletter: THE INTERCOM
The California Retired County Employees Association represents 163,000+ retirees across 20 counties.
The California Retired County Employees Association (CRCEA) is a coalition of all the associations of retired county employees from the 20 counties with retirement systems formed under the County Employees Retirement Law of 1937. CRCEA was created to identify and protect the rights of retired county employees.
CRCEA monitors state and federal legislative measures that may affect its member associations, sponsors and promotes its own legislative proposals, closely monitors court cases affecting retirees, and files amicus briefs with the courts on retirees’ behalf.
CRCEA publishes a bimonthly newsletter called THE INTERCOM, with articles of interest about legislation, litigation, pension reform developments, and CRCEA’s educational conferences.
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