LOS ANGELES COUNTY : Judge Dismisses Challenge to Pension Increases

Los Angeles County did not violate state law when officials adopted controversial pension rules that boosted retirement pay, a Superior Court judge said Wednesday in dismissing a taxpayer lawsuit.

Judge David A. Workman ruled that the Howard Jarvis Taxpayers Assn. and the Los Angeles Taxpayers Assn. had no valid claim against the county, its supervisors or the county Employees Retirement Assn.

A lawsuit filed last year by the two groups sought to repeal new pension rules that consider fringe benefits, such as car and medical insurance allowances, in determining retirement pay. The additions benefited longtime employees and department managers, and one county report concluded that the new rules will cost taxpayers at least $265 million over 20 years.

The Jarvis group plans to appeal, according to its president, Joel Fox. “We think the Board of Supervisors acted improperly. We feel the law requires that there be a public hearing and an audit before these benefits can be added, and that did not occur,” Fox said. “The taxpayers end up holding the bag again.”

County officials claimed that the pension changes were legal. After the ruling, no one at the county counsel’s office could be reached for comment.

A report recently issued by the county Citizens’ Economy and Efficiency Commission recommended that, in the future, employee benefit increases should not be added to pensions. The supervisors have not yet acted on the recommendation.