San Diego County Employees Retirement Ass'n v. County of San Diego

The County of San Diego (County) adopted a resolution providing higher pension benefits (referred to as Tier A) for all County employees, but permitting a retroactive increase to Tier A only for those individuals employed on the effective date of the resolution, March 8, 2002. The San Diego County Employees Retirement Association (Retirement Association) challenged this resolution on behalf of two groups of employees who were not employed on March 8, 2002: (1) individuals who were employed before March 8, 2002, then left County employment without withdrawing their retirement contributions, and later returned to County employment after March 8, 2002; and (2) individuals who were employed before March 8, 2002, then left employment and withdrew their retirement contributions from the system, and later returned to County employment after March 8, 2002, and redeposited their retirement contributions with interest. The Retirement Association alleged the County Employees Retirement Law of 1937 (CERL) precluded the County from excluding these employees from a retroactive Tier A pension benefit increase. (Gov. Code, § 31450 et seq.) Two returning County employees intervened in the…