O’Neal v. Stanislaus County Employees’ Retirement Association

Plaintiffs filed suit after StanCERA implemented several changes to the actuarial calculations used to determine how to amortize unfunded liabilities within the retirement system and chose to utilize so-called non-valuation funds, money not used to ensure the overall system was actuarially sound, to reduce or replace required employer contributions. Plaintiffs argued that these actions constituted a breach of the constitutional fiduciary duties placed on the board of a county retirement system. On appeal, plaintiffs challenged the trial court's grant of summary judgment to defendants. The court concluded that the trial court correctly determined that plaintiffs were not entitled to summary judgment, but the trial court erred in determining that no material issues of fact remained. The court explained that there remain material issues of fact regarding whether the resulting conduct violated the constitutionally mandated fiduciary duty of loyalty the board owed to StanCERA's members. Accordingly, the court reversed and remanded for further proceedings. View "O'Neal v. Stanislaus County Employees' Retirement Association" on Justia Law