Vielehr

This is a class action involving the validity of a 1968 legislative enactment which affected the amount of interest paid to members of the Public Employees Retirement System (PERS) who withdraw their PERS contributions in a lump sum upon leaving public service before retirement.

Prior to December 1, 1968, Government Code section 20031 provided for the payment of interest to a withdrawing member up to the precise date of withdrawal. In 1968 Assembly Bill No. 508 (Stats. 1968, ch. 941, operative Dec. 1, 1968) was enacted, section 1 of which amended Government Code section 20031 to provide for interest on PERS refunds only up to and including June 30 of the fiscal year preceding that in which the refund is accomplished.

The basic issue is whether the legislation (Assem. Bill No. 508) violated the “obligation of contracts” provisions of the federal and state Constitutions. The trial court answered this question in the negative by granting defendant’s motion for summary judgment and denying plaintiff’s motion for summary judgment. Plaintiff’s appeal is from the ensuing judgment in favor of defendant.

Plaintiff commenced work for the state on February 8, 1968, and thereby…