On November 28, 2012, the Deputy Sheriff’s Association (DSA) and the International Association of Firefighters (IAFF 1230), filed a lawsuit against CCCERA and the Board of Retirement. The suit was filed in Contra Costa County Superior Court, on behalf of ALL active and deferred members of CCCERA, to stop CCCERA and the Board of Retirement from implementing Assembly Bill 197. With CCCERA’s agreement, the Court issued a stay order in this matter, requiring that CCCERA refrain from implementing AB 197, and requiring that CCCERA continue to follow its policy on final average salary calculations until after this matter is heard and decided. This means that terminal pay will continue to be added into the calculation of final average salary beyond January 1, 2013 except for members who first became members of CCCERA on or after January 1, 2011. The current court order to “stay” implementation is in effect until 60 days after the court enters judgment in this case and determines whether or how AB 197 should be implemented. The order is subject to change by the Court. 

The “stay” order does not impact any other aspects of the pension reform legislation (AB 340). The “stay” order does not impact the new PEPRA tiers for new members. The “stay” order does not impact the new restrictions on the reemployment of CCCERA retirees. The “stay” order only maintains CCCERA’s existing treatment of the items included in the final average salary for CCCERA’s current (active and deferred) members until further order of the Court. 

Members who planned to retire before December 31, 2012, based on the anticipated loss of terminal pay and other additions to final average salary calculations, may wish to postpone their decision until an order from the Courts determining whether CCCERA may continue to include those items in final average salary subject to retirement is rendered. Please note that CCCERA cannot predict the outcome of this lawsuit.  

IMPORTANT NOTE: Members may rescind (cancel) their retirement applications at any time before cashing their first benefit payment. However, this does not mean that your employer must hold your job position open until you cash your first benefit payment. If you wish to delay your retirement, check with your employer about plans to recruit for your position.