California Supreme Court Rules on Pension Board Hiring and Pay Authority in LACERA Case
The California Supreme Court has issued a narrow 4-3 decision in the case of LACERA v. County of Los Angeles, ruling that a public pension board's constitutional authority to administer a retirement system does not include independent authority over the classification and compensation of its own employees. The court sided with Los Angeles County, determining that final decisions regarding job classifications and salary levels for pension system employees remain with the sponsoring governmental entity. While retirement boards retain the authority to identify staffing needs, recruit professionals, and recommend compensation structures, the sponsoring government ultimately holds veto power over these decisions. The National Conference on Public Employee Retirement Systems (NCPERS) had filed an amicus curiae brief in support of LACERA, highlighting concerns about fiduciary independence. 
