Unpaid Wages Lawsuit Focuses On Pension Funding

When a California worker accepts a position, he or she often factors in the retirement benefits associated with the job in making that decision. Retirement planning is an important financial concern for all Americans, especially in times of economic hardship or recovery. Once an individual has embarked on a career path, he or she often relies on these retirement benefits in structuring other investment goals. A recently filed unpaid wages lawsuit focuses on the issue, and centers on whether the correct percentage of wages are placed into the pension plan for affected employees.

The suit was filed on behalf of the San Diego County’s Deputy Sheriff’s Association. An existing labor agreement outlines how the county is to cover pension obligations for newly hired employees. That agreement is dated to extend until June 2014.

However, the suit claims that the county and its pension administrator have acted in violation of the California Public Employee’s Pension Reform Act of 2013. The alleged violation concerns the county asking new hires to contribute more to their pension plans than the existing agreement outlines. At the heart of the matter is whether changes set into place by the 2013 Act can supersede terms of a preexisting labor agreement.

As the case moves forward, a determination may be made regarding how pension changes can be implemented when an agreement is already in place. Many cases of this nature are settled out of court, but those that come before a judge serve to refine California law concerning unpaid wages as well as how wages are distributed into retirement funding. This case could reach Superior Court in June of this year.

Source: utsandiego.com, “DEPUTY SHERIFFS SUE OVER PENSION PAYMENTS,” Mark Walker, Feb. 20, 2013

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