Update on County Litigation: California Supreme Court Grants Review
On October 16, the California Supreme Court granted a review of LACERA’s ongoing case versus the County of Los Angeles, which began when we filed our lawsuit in October 2021. At the core of this case is the right of LACERA’s two governing Boards, the Board of Retirement and Board of Investments, to determine employee classifications, salaries, and other crucial decisions necessary to perform our exclusive fiduciary responsibilities to our members and their beneficiaries, without interference from the County.
In the first phase of the case, the Los Angeles Superior Court was bound by existing case law to rule in favor of the County, after which LACERA appealed the decision. In that second phase, on June 24, 2024, the California Court of Appeal ruled in favor of LACERA upholding LACERA’s autonomy as fiduciaries under the California Constitution and County Employees Retirement Law (CERL).
On August 2, 2024, the County petitioned for a review of the decision, bringing us to the current stage of the California Supreme Court’s grant of the petition. The Supreme Court’s grant of review does not suggest that the Court disagrees with the Court of Appeal or LACERA’s authority. It means that this important case, which potentially has substantial impact on all California public pension systems, will undergo further examination by the state’s highest court to clarify and resolve the legal issues.
LACERA and the County are now compiling additional briefs and responses in preparation for an oral argument before the Supreme Court. LACERA will continue to strongly advocate for its fiduciary authority to determine the staffing and other needs of the system—in support of our 194,000-plus members and investment of the more than $81 billion in trust funds—to fulfill our mission to produce, protect, and provide the promised benefits. We anticipate the review process will take 16 to 18 months, after which the Court will issue a decision.
We remain committed to keeping our members informed and will provide updates as the litigation continues.