The Los Angeles County Employees Retirement Association (LACERA) sued the County of Los Angeles over which entity has the authority to set employment classifications and salaries for LACERA employees. LACERA argued that under the County Employees Retirement Law of 1937 (CERL) and the California Constitution, it had the authority. The County disagreed, asserting that it had that authority for all county employees, including those of LACERA. The lower court sided with the County.
The California Court of Appeal sided with LACERA. The appellate court found that the case law the trial court relied upon was inconsistent with Proposition 162, a voter initiative that gave governing boards of public employee retirement systems “plenary authority and fiduciary responsibility for investment of moneys and administration of the system.” The court concluded that this plenary authority included the power to create employment classifications and set salaries for employees of the retirement system.
Los Angeles County Employees Retirement Assn. v. County of Los Angeles, 102 Cal.App.5th 1167 (2024).