Wednesday, August 24, 2016

California Appeals Court Denies Pension Spiking as Legal Right

Breitbart California reports:
A ruling by the California Appeals Court could terminate public employee unions’ claims that public pension spiking creates a legal contract under the “California Rule.” The ruling could overturn up to $250 billion of pension spiking.

The “California Rule” refers to a 1955 decision by the California Supreme Court in Allen v. City of Long Beach. Due to concerns by the City of Long Beach that its public pension plan was becoming insolvent, the city council had amended the city’s charter in 1951 to raise the annual amount public employees were required to contribute toward their retirement from 2 percent to 10 percent of wages.
An article , well worth your time.