KMTG Legal Alert

LEGISLATIVE UPDATE: New Laws Affecting Schools Districts And Community College Districts

KMTG Legal Alert

School District That Breached Contract To Provide Facilities To Charter School Liable For Damages, But Charter School Was Not Entitled To Private Attorney General Attorney Fees

KMTG Legal Alert

Legislative Update: New Laws Affecting School Districts and Community College Districts

Breaking news: Governor Vetoes Bills Aimed at Pension Reform

The Governor has vetoed two bills which would have had a significant impact on school employees. The first bill, AB 827, would have, among other things, limited automatic renewals of contracts with exempted employees such as superintendents where there was any increase in compensation under the contract. (Read veto message 827 link) The second bill, SB 1425, impacting both CalSTRS and CalPERS members, sought to curtail “spiking” or the practice of increasing final compensation in order to inflate retirement benefits by limiting the types of compensation which would “count” in determining final compensation and the amount an employee’s salary could increase in the last five years of employment and still be included in his/her retirement benefit. The bill also required a 180 day separation of service applicable to all retirees before returning to work. Current law only requires such a separation where an employee retires before the “normal” retirement age of 60. (Read veto message 1425 link)

By Chelsea R. Olson