Court rules fire chief didn't 'improperly' increase his pension benefits

The California Supreme Court's 2020 ruling in Alameda County Sheriff's Association v. Alameda County Employees' Association continues to affect the application of pension law across the state.

In the following case, the California Court of Appeal ruled a fire chief from Contra Costa County who retired in 2009 didn't cause his final compensation (which determined the amount of his pension) to be "improperly increased." The appellate court relied on the supreme court's ruling and decided the fire chief's pension spiking had been legal before the 2012 enactment of the Public Employee Pension Reform Act (PEPRA). Therefore, there was nothing "improper" when he took advantage of the pre-PEPRA rules.

The court of appeal also interpreted for the first time Government Code Section 31539(a)(2), which permits a retirement board to recalculate monthly pension benefits if "the member caused his or her final compensation to be improperly increased or otherwise overstated at the time of retirement." The court held that "improperly" means illegally, which it found didn't occur in this case.

Background

Peter Nowicki worked for the Contra Costa County Fire District from 1983 to 2009. He became fire chief in 2006 under a four-year contract that made him eligible for an annual salary adjustment following a performance evaluation by the district's board. In February 2008, the board granted Nowicki a salary increase and other benefits, retroactive to his contract anniversary date of July 2007, and later in 2008, it granted him additional leave benefits, retroactive to his anniversary and other dates in 2008.