The California Policy Center
has found that many cities did not comply with state law when granting employees huge pension increases in the early 2000's.
In 1977, the Legislature enacted California Government Code Section 7507, which provides:
“The Legislature and local legislative bodies shall secure the services of an enrolled actuary to provide a statement of the actuarial impact upon future annual costs before authorizing increases in public retirement plan benefits. An “enrolled actuary” means an actuary enrolled under subtitle C of Title III of the federal Employee Retirement Income Security Act of 1974 and “future annual costs” shall include, but not be limited to, annual dollar increases or the total dollar increases involved when available.”
“The future annual costs as determined by the actuary shall be made public at a public meeting at least two weeks prior to the adoption of any increases in public retirement plan benefits.”
Suffice it to say, the CPC hasn't been able to find the required analysis in records at many of the cities and agencies that passed the massive pension increases that are now crippling their budgets.
Did Encinitas comply with the law? The required actuarial analysis certainly doesn't appear in the
2005 agenda item. We doubt it exists anywhere.
But does the public have any recourse if staff and council illegally gave themselves massive, retroactive pension increases? We shall see.
The California Policy Center offers an
instructional guide for anyone seeking to challenge those increases.