California Supreme Court

Cal Fire Local 2881 v. Cal. Pub. Employees' Retirement System

March 4, 2019

Summary

The court held that public employees had no constitutionally protected contractual right to continue purchasing additional retirement service credit under the state contract clause. The governing statute did not clearly manifest an intent to create contractual rights, and the purchase option was not deferred compensation or otherwise an implied vested pension right because it was optional, required a separate election and payment, and was not exchanged for public service. The court therefore affirmed without deciding whether eliminating a protected right would have constituted an unconstitutional impairment or whether to modify the California Rule.