Senate Votes to Repeal Law on Pension Rules

In a slap at Los Angeles County officials, state lawmakers Thursday unanimously voted to overturn a law used by county officials to adopt controversial pension changes that will cost taxpayers $265 million.

The measure, sent to Gov. Pete Wilson by the Senate on a 34-0 vote, allows the Board of Supervisors to cancel pension changes that boosted the retirement pay of some officials by 19%, to more than $125,000 a year.

A spokesman for the governor said he does not know whether Wilson will sign the bill.

The bill’s co-authors said the measure--prompted by a Times story in February--drew no opposition.

“I would hope the board takes action to rescind what they’ve done,” said co-author Sen. Cecil N. Green (D-Norwalk), calling the county’s pension rules “not kosher” and a “waste of taxpayers’ money.”

The legislation repeals an obscure 1990 state law allowing counties to add benefits such as medical insurance to salaries in calculating retirement pay.

Los Angeles County--without any study of the financial effect--implemented the pension rules last year. Earlier this week, a county study concluded that the rule changes have created a liability of $265 million that will cost the county at least $18 million annually for the next 30 years.

Sen. Newton R. Russell (R-Glendale), co-author of the bill, said that county now has the opportunity to rescind the rules.

A spokesman for Supervisor Gloria Molina said the supervisor wants to rescind the rules as soon as possible.

Other board members could not be reached. Nor could Chief Administrative Officer Richard B. Dixon, who has defended the changes.

County attorneys have contended that the pension changes are irreversible because it is illegal to take away pension benefits already granted.

Though some changes eventually will benefit most of the county’s 85,000 employees, the Board of Supervisors and top county managers will derive the largest gains in retirement income.