Creighton
Creighton v. Regents of University of California
Opinion
Opinion
Haerle, J.
I. Introduction
John Creighton et al., appeal from a judgment in favor of the Board of Regents of the University of California in a class action challenging the university’s voluntary early retirement incentive program on contract clause and equal protection grounds. We affirm.
II. Factual and Procedural Background
The University of California manages three national laboratories under contracts with the United States Department of Energy (DOE). Laboratory employees are covered by the University of California Retirement Plan (UCRP), a “defined benefit” plan funded by employer and employee contributions. The UCRP provides monthly pension benefits based primarily on retirees’ final salary, age, and years of service.
In the spring of 1993, DOE advised the university to expect declining laboratory budgets resulting in the loss of about 1,500 positions. In order to minimize the number of involuntary layoffs, the university decided to offer a voluntary early retirement incentive program paid for by a surplus in the retirement fund. On May 21, 1993, while still consulting with DOE on the details, the Regents passed a resolution to amend the UCRP to authorize “VERIP-m.” Under…