Court of Appeal holds pay additive pensionability not guaranteed under Meyers-Milias-Brown Act: Serrano v. Public Employees’ Retirement System

In Serrano v. Public Employees’ Retirement System (2025) 109 Cal.App.5th 96, the Court of Appeal (Third Appellate District) held that the Meyers-Milias-Brown Act (MMBA) (Cal. Gov. Code §§ 3500 et seq.) does not guarantee that additive pay received during union leave is pensionable. 

Plaintiff, after being elected police association president, took leave from the City of Santa Ana but continued to receive his police salary and various pay additives per an MOU between the city and the association. CalPERS determined these additives were not pensionable, a decision upheld by an administrative judge, except for an education incentive. The trial court denied Plaintiff’s petition for writ of administrative mandamus, and Plaintiff appealed.

The Court of Appeal affirmed the denial of Plaintiff’s petition for writ of administrative mandamus. The court held that while Gov. Code § 3505.4 mandates employers continue pay and benefits during union leave, it does not dictate pensionability. Whether compensation is pensionable is determined exclusively by the Public Employees’ Retirement Law (PERL). Therefore, pay additives received during leave must independently satisfy PERL’s definition of “compensation earnable” (Gov. Code, § 20636) to be pensionable. Accordingly, Plaintiff’s confidentiality premium was not pensionable because it failed PERL’s requirement (Gov. Code, § 20636(b)(1)) that special compensation be paid to “all persons in the group or class.” Likewise, the holiday pay was not pensionable as it did not qualify as “compensation earnable” under PERL (Gov. Code, § 20636(a)) and failed the regulatory test in Cal. Code Regs., tit. 2, § 571.

Full opinion

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