Howard Jarvis Taxpayers' Ass'n v. Board of Supervisors

Introduction

In this appeal we are asked to overturn a judgment based upon an order of the trial court sustaining a demurrer to plaintiffs’ first amended complaint without leave to amend. The action below was brought by taxpayer groups Howard Jarvis Taxpayers’ Association and Los Angeles Taxpayers Association (plaintiffs) seeking to invalidate certain actions of the County of Los Angeles (County), the Los Angeles County Retirement Board (the Board) and the Los Angeles County Employees’ Retirement Association (LACERA). The first amended complaint alleged that defendants unlawfully included certain flexible benefits in the computation of “compensation eamable” for purposes of calculating the retirement benefits to County employees.

The taxpayer groups initially sued only the County claiming the County’s action which increased the retirement benefits was a violation of statute which required, among other things, an actuarial study and public hearings prior to the implementation of such benefits. The County filed a motion for judgment on the pleadings claiming it was not responsible for the computation and that the Board and LACERA had the statutory authority and duty to…