Court of Appeal affirms PEPRA excess leave cashouts exclusion: Ventura County Employees’ Retirement Assn. v. Criminal Justice Attorneys Assn. of Ventura County

In Ventura County Employees’ Retirement Assn. v. Criminal Justice Attorneys Assn. of Ventura County (2024) 98 Cal.App.5th 1119, the Court of Appeal (Second Appellate District, Division Six) upheld the exclusion of leave cashouts exceeding annual limits from retirement benefit calculations under PEPRA.

Defendant argued that the trial court erred in applying Gov. Code § 31461(b)(2) to employees who retired after January 1, 2013, and that the statute did not require excluding excess leave cashouts.

Following the Supreme Court’s analysis in Alameda County Deputy Sheriff’s Assn. v. Alameda County Employees’ Retirement Assn. (2020) 9 Cal.5th 1032, the Court of Appeal held that while Gov. Code § 31461(b) is ambiguous, its legislative intent to eliminate pension spiking is clear. Rejecting Defendant’s argument that the Supreme Court’s statements in Alameda County were dicta, the court held that “when the Supreme Court has reached well beyond the holding necessary to its opinion to express its broader view… dicta from the high court should be followed.”

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