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New California ruling targets pension ‘spiking’ as retirees appeal for relief

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New California ruling targets pension ‘spiking’ as retirees appeal for relief


BY ADAM ASHTON | CalMatters

A California Supreme Court decision three years ago was supposed to be the final word on former Gov. Jerry Brown’s marquee pension limit law, but judges are still sorting it out — and making decisions that could mean thousands of dollars a year to government retirees.

Last week a state appeals court affirmed a Ventura County Employees’ Retirement Association’s decision undoing a perk that had allowed government workers to increase their pensions  in a way banned by Brown’s 2013 law.

The changes add up. Ventura’s retirement fund has estimated that some retirees could lose a couple hundred dollars a month once it complies with the pension  law and begins adjusting its vacation “cashout” policy and striking some other incentives, according to the Ventura County Star.

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Some of those affected retirees are urging the pension board to instead apply the new rules only to people who left civil service after 2020 — when the state Supreme Court upheld Brown’s law — rather than when the law itself took effect a decade ago. That’s in keeping with policies several other retirement boards have adopted.

“This can be the difference between whether they eat or pay a utility bill or purchase a prescription they need,” Tracey Pirie, a retired Ventura County Sheriff’s Department manager, told the board that oversees her pension fund earlier this week.

When the California Supreme Court  upheld Brown’s Public Employees’ Pension Reform Act in July of 2020, it directed the state’s 20 county-run pension funds to comply with it. The law reduced the potential retirement income of government employees hired after 2013 by changing pension formulas. It also restricted a variety of financial incentives that had counted toward workers’ pensions, including standby pay and large amounts of accrued vacation.

Since the 2020 decision, county funds have been recalculating how much they owe members whose pensions were calculated with the incentives that Brown’s law capped.

The process proved to be exceedingly complex. Pension funds in Sacramento and Los Angeles counties, for instance, this month reported they’re still making adjustments. In some cases, retirees are getting money back because they paid into the system for benefits they won’t receive.

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Leave cashouts in California pensions

The Ventura case at the 2nd District Court of Appeals turned on a narrow question: How many hours of leave could employees cash out in their final years on the job and apply toward the formula that determines their monthly pension income.

The 2013 law caps that amount at the number of hours an employee accrues in one year and is permitted to cash out. For instance, employees who accrue 200 hours of leave in one year could cash out that amount of time and apply the extra income toward their pension if their contract allows it.

Until 2020, the Ventura fund permitted workers to choose a 12- or 36-month period to calculate their average income. Those dates did not have to align with a calendar year, and an employee over a 12-month period could cash out unused hours of personal leave in amounts that exceeded a single year’s vacation buydown allowance.

The appeals court upheld the Ventura retirement fund’s decision to prohibit such “straddling. — or, as the Ventura retirement fund’s attorney Ashley Dunning labeled it, “pension spiking.”

A group of retirees sought to retain the previous policy, arguing that Ventura County’s leave cashout policies were already more stringent than state law allows. For instance, the lawsuit named retired Ventura County Counsel Leroy Smith, who accrued 368 hours of leave each year. The county capped his pensionable leave cashout at 200 hours in one year, which was far less than the time off he accrued every year.

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David Mastagni, a Sacramento lawyer who represents public safety unions and argued on their behalf in the 2020 pension case at the California Supreme Court, characterized the appeals court ruling as narrow. He said several other disputes are unfolding around the state on similarly niche questions.

He also said current employees could bargain to lift the amount of hours they can cashout in a single year, which would create a situation in which someone like Smith could have counted more hours toward his pension formula.

“The ironic thing is if in their next contract the union negotiates that they can cash out an additional 40 hours per year, then it’s going to be perfectly legal,” he said.



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Teen dies after losing control of electric motorcycle in Garden Grove

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Teen dies after losing control of electric motorcycle in Garden Grove


A 13-year-old boy riding an electric motorcycle in Garden Grove died after veering into the center median, flying into the air and then slamming onto the roadway, authorities said.

The crash took place shortly before 10 p.m. Thursday in the area of Magnolia Street and Larson Avenue, according to the Garden Grove Police Department. The Police Department received word of the incident via a call from Life360, a family safety and location-sharing app with emergency assistance features.

The Santa Ana teen was critically wounded in the crash, police said. He was loaded into an ambulance and taken to a hospital, where he was later pronounced dead.

The boy was traveling at around 35 mph on a black E Ride Pro electric motorcycle when he struck the median and lost control of the vehicle, according to authorities. Electric motorcycles are primarily designed for off-road riding and are not legal to use on California roadways.

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The teen’s death is the latest in a spate of serious collisions involving electric motorcycles and dirt bikes — some of which have led to serious injuries, death or charges for parents who allegedly allowed their minors to illegally ride the speedy devices.

An Orange County mother was charged with involuntary manslaughter last week after authorities said an 81-year-old Vietnam veteran died from injuries he suffered when her 14-year-old son slammed into him while riding an e-motorcycle, then fled the scene.

In April, a Yorba Linda father was charged with felony child endangerment after authorities alleged his son ran a red light and was hit by a car while riding a modified e-motorcycle capable of reaching up to 60 mph.

Last week, a 19-year-old riding an e-motorcycle was arrested on suspicion of felony evading police and felony reckless driving. He was accused of leading sheriff’s deputies on a speedy chase through a residential area of Oceanside, blowing past multiple red lights and knocking a deputy off a motorcycle.

Electric bikes, motorcycles and dirt bikes have surged in popularity in recent years and are especially popular among teens. However, while e-bikes generally top out at 28 mph and are legal to ride on the street, many e-motorcycles can go twice as fast and are generally not street legal.

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Anyone who witnessed Thursday’s crash in Garden Grove or has a video of the incident is asked to contact Investigator Lang via phone at (714) 741-5823 or email at mlang@ggcity.org.



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California to give newborns free diapers. What it means for families

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California to give newborns free diapers. What it means for families


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Gov. Gavin Newsom announced that newborn babies in California will start receiving free diapers as part of a new “first-in-the-nation” initiative to support families across the state with the rising cost of living.

Newsom, along with state leaders, met in San Francisco on Friday, May 8 to unveil California’s new partnership with Baby2Baby, a national nonprofit that provides diapers to children in need, and to explain how this new program will provide families with 400 “high-quality” diapers before they leave the hospital.

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Over the last six years, families have seen the average cost of diapers increase by 45% or “thousands plus dollars a year,” which has made raising a family unattainable for some, Newsom said during the press conference.

“Every baby born in California deserves a healthy start in life — and that means making sure parents have the basics they need from day one,” Newsom said. “One out of four families skip meals in order to pay for diapers.”

“The biggest problem defined universally, in our cities, our state and our nation, is the issue of affordability. This is what affordability looks like; it’s not a slogan, it’s a box. A box of diapers,” Newsom added.

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This new effort will be known as Golden State Start, as California uses its bulk purchasing power to obtain 40 million high-quality diapers in hopes of easing financial strain for families and supporting infant health by helping parents maintain an adequate supply of clean diapers.

“The first days at home with a newborn should be focused on the love, connection, and joy of an expanded family, not stress about affording diapers,” said Kim Johnson, secretary of the California Health and Human Services Agency. “This program helps ensure families can begin that journey with greater stability and peace of mind.”

The program is expected to start at the beginning of this summer in participating California hospitals. The list of participating hospitals was not released at the time of publication, but Newsom noted that the state was in talks with at least 60 hospitals across California.

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During the first year of the program, CalRx and Baby2Baby noted that they would prioritize hospitals that serve large numbers of Medi-Cal patients to ensure low-income families benefit early from the program. The state plans to scale the program to additional hospitals and birthing centers over time.

Newsom noted that this program is expected to grow: In 2027, the state is set to purchase 80 million diapers from manufacturers, with the goal of eventually purchasing up to 160 million.

“California families deserve to feel supported during one of life’s more exciting, yet vulnerable transitions,” Jennifer Siebel Newsom, the first partner, said in a press release. “Golden State Start will deliver immediate relief, allowing parents to focus on what matters most — caring for their newborn. Together with Baby2Baby, we can ease the financial burden on California parents while supporting healthier outcomes for babies and their mothers.”

Noe Padilla is a Northern California Reporter for USA Today. Contact him at npadilla@usatodayco.com, follow him on X @1NoePadilla or on Bluesky @noepadilla.bsky.socialSign up for the TODAY Californian newsletter or follow us on Facebook at TODAY Californian.



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Nordstrom Rack expands in Southern California with new stores

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Nordstrom Rack expands in Southern California with new stores


Nordstrom Rack will open two new Southern California stores next year.

The discount outlet said on Wednesday that it will open new stores in Marina del Rey in the spring of next year and in Torrance later that summer. The locations join 69 Nordstrom Rack locations already operating in the state.

“We’re excited to grow our footprint in the Los Angeles market and introduce new customers to the Nordstrom experience,” Gemma Lionello, president of Nordstrom Rack, said in a news release.

Nordstrom Rack is an outlet version of the upscale retailer Nordstrom, offering merchandise from top brands at a discount.

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Bargain retailers have expanded in California recently, benefiting from increasingly cost-conscious customers, who are motivated to spend less by economic anxiety and inflation.

Discount outlets such as Ross, T.J. Maxx and Dollar General have capitalized on the tough economic times and experienced accelerated growth. Ross reported record sales in 2025, up 8% from the year prior.

Bargain retail stores have acquired a larger supply of discounted products by buying unsold merchandise from struggling high-end stores. Customers who feel destabilized financially by tariffs and global conflict have used the stores to try to find lower prices.

The new Nordstrom Rack storefronts will be in Marina Marketplace in Marina del Rey and Rolling Hills Plaza in Torrance.

“The Los Angeles retail market continues to see growth from retailers like Nordstrom looking for anchor space in vibrant areas,” Scott Burns, senior managing director for the company that manages Marina Marketplace, said in a news release.

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The bargain outlet boom comes as department stores and malls struggle. Nordstrom, the upscale retailer, closed a Santa Monica location in July. Macy’s shuttered two California locations this year and will reduce its footprint by 30% in 2027.

Shopping malls across Southern California have also struggled to bring sales back as immigration raids continue to scare customers away.



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