South Pasadena Police Officers' Assn. v. City of South Pasadena CA2/2

FACTS

Appellants are the South Pasadena Police Officers’ Association, the South Pasadena Firefighters’ Association, and the South Pasadena Public Service Employees’ Association. They represent most employees of the City of South Pasadena (the City). Until 2011, the relationships between appellants and the City were governed by Memoranda of Understanding (MOU’s). Since 1972, the City has participated in a statutory medical benefits scheme known as the Public Employees’ Medical and Hospital Care Act (PEMHCA). (Gov. Code, § 22750 et seq.) Before 2000, the MOU’s did not address health insurance benefits for retired employees. From 2000 to 2008, the MOU’s for firefighters and public service employees stated that the City shall continue to pay 100 percent of the premium for retirees. The MOU’s for police officers had no provision for retiree medical insurance from 2000 to 2008. Appellants entered MOU’s with the City effective July 1, 2008 to June 30, 2011, which were adopted by municipal resolutions. The MOU’s address medical coverage for retired employees: “As regards employees hired prior to the date of Council adoption of this 2008-2011 Memorandum of Understanding, the City shall…