Superior Court Enjoins SFERS From Making Supplemental COLA Payments To Pre-1996 Retirees

Published: October 5, 2016

On October 4, 2016, the San Francisco Superior Court heard arguments from both SFERS and the City and County of San Francisco whether to issue a preliminary injunction preventing SFERS from paying supplemental COLA benefits to pre-1996 retirees on the same basis that those benefits have been paid to post-1996 retirees.  Counsel for Protect Our Benefits appeared as amicus curiae. 

The following day, on October 5, 2016, the Court issued its ruling granting the preliminary injunction.  The Court determined that the City was likely to prevail on the merits of its argument that the Retirement Board did not have the authority to apply Charter Code Section A8.526-3(d) to pre-1996 and post-1996 retirees equally.   

Based on the Court’s Order, SFERS is enjoined from implementing the Board Resolution that directed payment of the supplemental COLAS to the pre-1996 retirees unless the Retirement System is also fully funded as provided in Charter Section A8.526-3(d). Because the Retirement System was not fully funded, no further supplemental COLA payments will be issued.

A case management conference has been scheduled for November 1, 2016 at 9:30 am in Department 305.

 

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