Wilson

This litigation arises from changes in the way the Legislature has funded the California Public Employees’ Retirement Fund (PERF). Until 1990, the state paid employer contributions to the PERF on a monthly basis. In 1990, the Legislature changed the payment schedule from monthly to quarterly. In 1991, the Legislature temporarily changed the payment schedule from quarterly to semiannually for one year only. Legislation in 1992 changed the schedule to “semiannually, six months in arrears.” Legislation in 1993 changed the schedule to “annually, 12 months in arrears.” (Gov. Code, § 20822.)

A mandamus action was brought in the trial court, challenging “in arrears” financing on various grounds, including violation of the constitutional right to be free of impairment of contracts. (U.S. Const., art. I, § 10; Cal. Const., art. I, § 9. ) The trial court determined “in arrears” financing is an unconstitutional impairment of contract.

Appellant Pete Wilson, Governor of the State of California, appeals from a judgment in favor of the Board of Administration of the California Public Employees’ Retirement System (the PERS Board), individually and as trustee of PERF on behalf of PERS…