Merrill

This is a consolidated appeal in which plaintiff City of Watsonville (City) appeals from adverse judgments rendered in favor of the respective respondents.

The essential facts leading to the present appeals may be summarized as follows.

On February 26, 1949, the City entered into a contract with the State Employees Retirement System (now the Public Employees Retirement System (PERS)) which provides for the City to participate for and on behalf of its employees in PERS pursuant to the provisions of the Public Employees Retirement Law (Gov. Code, § 20000 et seq.). Said contract has been amended several times, the last amendment becoming effective on July 7,1979. Pursuant to the contract and the retirement statute the employees of the City who are members of the retirement system acquire vested right in their pension and the City bears a continuing obligation to both PERS and employees who have such vested rights to make annual payments to PERS.

Appellant is a charter city. The charter was approved and adopted by the voters of the City at a special municipal election on February 16, 1960, and became effective on March 15, 1960. It has been continuously in effect since…