California State Employees' Ass'n v. California Public Employees' Retirement System Board of Administration

Article XVI, section 17 of the state Constitution prohibits the Legislature from enacting, without a ratifying vote of the electorate, changes in the number, terms and methods of selecting employee members of a public employee retirement system’s governing board. The trial court below concluded the constitutional provision also applied to amendments adopted by the retirement system’s governing board to its regulations establishing procedures for elections required to be held for selecting employee board members. The court granted a petition for writ of mandate ordering a board not to implement such amendments. We conclude the trial court erred and reverse its judgment.

FACTS AND PROCEDURAL HISTORY

In 1931, the Legislature established the California Public Employees Retirement System (PERS), and established the Board of Administration (Board) to manage and control PERS. (Gov. Code, § 20120 (former Gov. Code, § 20103).) 1 As early as 1945, the state statute required the Board to be partially composed of employee members of the system. These employee members were to be “elected under the supervision of the board.” (Stats. 1945, ch. 123, § 1, p. 577.)

*140 As of July 1,…