Facts

The County of Orange sought to put an end to the Association of Orange County Deputy Sheriffs' seven-year-old "3 percent at 50" pension benefit increase provided for sheriff's deputies, matching 34 other cities and counties that had already adopted the same benefit increase. The benefit allows deputies who had worked for 30 years in the department to retire at age 50 with 90 percent of their salaries.

The County Board of Supervisors signed off on the benefit in 2001. Seven years later, the Board, with its new members, concluded that granting retroactive benefits violated the state constitution and was illegal without voter approval. The County sued OCERS to rescind the benefit (and AOCDS intervened). According to the County, the lawsuit would have helped to reduce the county's $3.7 billion unfunded pension liability by up to $500 million.

Result

The county lost its suit in the trial court, the Court of Appeal affirmed, and the Supreme Court denied review. When AOCDS and OCERS then claimed a right to recover their attorney fees, the parties agreed to mediate that issue. Under the terms of the mediated settlement, the County paid $1.3 million to AOCDS and $312,000 to OCERS as reimbursement for their attorney fees.

Other Information

MEDIATOR: Howard B. Wiener. The listed judge, case number, and court are from the trial court case.