Public employee unions said they will go to court to try to block the Contra Costa County retirement system board from implementing anti-spiking provisions that are part of new state pension reforms, local reports said.
The Contra Costa Employees’ Retirement Association board voted 7-to-2 Tuesday to adopt the pension reform legislation provision that bans employees from bumping up pay in a single year by using unused leave, according to The Mercury News.
The paper said the board already adopted the rules for new employees but the new provision is one of the few provisions in recent state reform legislation that targets current workers.
A representative of the Contra Costa Deputy Sheriffs Association told the newspaper the union would file a lawsuit and estimated his members would lose 15% or more in retirement income, calling them vested rights.
Last month, Gov. Jerry Brown signed pension reform legislation, Assembly Bill 340, which caps benefits for future hires, increases retirement ages, rolls back formulas used to calculate pensions, and require employees to pay at least half of the normal cost of the pension.
Current employees would have to pay at least half of the costs, a provision to be negotiated through collective bargaining or be imposed after five years.
The reforms will also apply to all general-law local governments. They exclude the University of California System and charter cities and counties with retirement systems outside of the state programs.