Legal News

O.C. Board is suing to reduce sheriff deputies' pensions

By Jason Siegel

After $500,000 worth of legal preparation by four different firms, the Orange County Board of Supervisors voted unanimously on Tuesday to file a lawsuit to undo part of their pension agreement with sheriff's deputies.

Kirkland & Ellis, the most recent firm hired by the county, recommended that the county sue.

Two of the three prior firms hired by the county, Orrick Herrington and Snell & Wilmer, said the case was not legally viable, the Los Angeles Times reported.

The suit aims to take $187 million from the pension agreement, lead by board chairman John Moorlach, who's advocated reforming the O.C.'s pension agreements with public employee unions that have lead to a $2.3 billion pension shortfall over the next 30 years.

Moorlach said it would be faster and cheaper to sue than to hire a retired state Supreme Court judge to review the cases merits beforehand as the deputy sheriff's union proposed, the Orange County Register reported.

The better paying 2002 pension deal applied retroactively. The board claims this violates the state Constitution's prohibition on deficit spending and gifts of public funds, reports the Times.

The sheriff deputies union will join the case as an interested party since the O.C.'s employment retirement system is named as the defendant.

Full post as published by Legal Pad | LA on January 31, 2008 (boomark / email).