Pensions

Pensions in the United States

Public Pensions

In California, the state constitution protects public pension benefits, like other contracts, from impairment. (Cal. Const., Art. I, § 9.) Described succinctly by the state Supreme Court, “A public employee’s pension constitutes an element of compensation, and a vested contractual right to pension benefits accrues upon acceptance of employment.” (Betts v. Bd. of Admin., 21 Cal. 3d 859, 863 (1978) (citing Kern v. City of Long Beach, 29 Cal. 2d 848 (1947)).)

In the 2011 political milieu, however, the state constitution hasn’t stopped public entities from challenging existing employment contracts. Which brings us to the second skirmish. Three years ago the Orange County board of supervisors sued its deputy sheriffs and the county’s own pension fund, challenging the constitutionality of a particularly generous pension formula negotiated by a prior board. The suit was dismissed, and the county appealed.

On January 19, the Second District Court of Appeal heard oral arguments on whether the prior board had exceeded its debt authority without a two-thirds vote of the people, and whether it had illegally granted a benefit for past years of service. Just a week later, a unanimous panel affirmed the dismissal, concluding that “the past service portion of the enhanced retirement formula does not violate the Constitution.” Noting that the county had emphasized the “ruinous fiscal irresponsibility” of the prior board, the court noted, “Imprudence … is not unconstitutional.” (County of Orange v. Ass’n. of Orange County Deputy Sheriffs, 2011 WL 227711 at *8.)

Pensions. in 1899 (United States)

The following information about Pensions is from the Cyclopaedia of Political Science, Political Economy, and the Political History of the United States by the Best American and European Writers.

Pensions and the State Laws

Select from the list of U.S. States below for state-specific information on Pensions:

Resources

See Also

Further Reading

PENSIONS. (See UNITED STATES PENSION LAWS, AND THE PENSION LAWS OF OTHER COUNTRIES.)

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