News

In October 2021, LACERA filed a lawsuit in Superior Court against the County of Los Angeles and its Board of Supervisors, seeking a court order confirming our autonomy under the California Constitution and County Employees Retirement Law (CERL). The trial court was bound to follow a cited case from 2003 and ruled in favor of the County, but LACERA appealed the decision.

On June 24, 2024, the California Court of Appeal issued a strong opinion in LACERA’s favor confirming that our Boards have authority to make classification and compensation decisions regarding LACERA staff and that the Board of Supervisors’ ministerial duty is to incorporate those decisions into the County salary ordinance without change. This decision was in keeping with the LACERA Boards’ plenary authority and exclusive fiduciary responsibility over the administration of the fund under the California Constitution and CERL, and the decision recognized the important power of the Boards as independent fiduciaries to manage the system without outside interference.

On August 2, 2024, the County exercised its right to seek review of the decision in the California Supreme Court, which will decide by this October or November if it will accept that review. LACERA believes the Court of Appeal was correct and will actively oppose the County’s request. If the Court does grant review, another round of briefing and oral argument will take place, after which the Court will provide a final decision on the merits of the issues in 12 to 18 months.

A grant of review does not mean the Court of Appeal decision will be reversed; it only means the Supreme Court believes the issues are important enough to warrant reconsideration. If the Court denies review, the decision will become final.

We will keep members informed and provide any significant updates as the litigation continues.