Recent court decisions illustrate the difficulty public employers face after the California Supreme Court’s decision in Retired Employees Assn. of Orange County, Inc. v. County of Orange (known as REAOC).
While I think this case badly misreads the MOU, it’s best to avoid using the term “future” in a document that’s intended to have limited duration.
The advent of Assembly Bill (AB) 646, which requires fact-finding after a bargaining impasse, has revived the wage/benefit comparability analysis in the public sector.
While the Contracts Clause is a key navigational star in the firmament of our Constitution and economic universe, it is subject to being eclipsed by the Bankruptcy Clause.
San Diego v. Haas confirms that a vested right may be implied only when a public employer’s governing body intends to confer such a benefit.
CalPERS has led the state, cities, counties, and other government agencies to the edge of ruin yet continues to stand in the way of pension and benefits reform.
In its decision, the court found that “under certain limited circumstances,” a vested right to retiree health benefits may be implied into formal legislation adopted by a public agency’s governing body.
With revenues generally flat or down and pension and retiree health benefits, medical insurance, and workers’ compensation costs going through the roof, it has been a brutal year for government.
Increasing pension and retiree health costs are eroding government-provided services at an alarming rate.