Proponents of a referendum will not appeal a ruling that invalidated a pension-cutting ballot measure. Last week, the measure was invalidated by Judge Kent Kellegrew. An appeal was widely expected, including by the court, which had stayed its decision long enough to allow an appellate court to rule prior to the printing deadline for November ballots.

The measure, if successful, would have phased out the County’s defined benefits pension plan and replaced it with a 401(k). A second question on the measure, if approved, would have set a cap on retirement benefits.

But in a surprising move, proponents threw in the towel. They will not appeal the August 4, 2014 ruling. However, the matter is far from over in Ventura County. Proponents of the measure have indicated that they plan to circle their wagons and determine how best to replace the county’s defined benefit plan with a 401(k). They provided no details about how that could be achieved. Judge Kellegrew ruled that a county’s electorate has no authority to wind down participation in the defined benefit plan, which was established under the County Employees Retirement Law of 1937 (“CERL”). This is because only the state legislature may authorize a plan to phase out the defined benefits plan. Even then, the legislature may only do so if it finds the plan protects employees’ pension rights.

If you have any questions, please contact Jonathan Yank at jonathan@majlabor.com.