by The San Diego Union-Tribune Editorial Board

t’s a safe bet that most Californians know nothing about the “California rule,” but even though it is not a part of any state law, the rule has had consequences far greater than most state laws. It holds that public employee pension benefits for years not yet worked can never be reduced. Now, finally, the California Supreme Court is going to give the rule the scrutiny it deserves — and Gov. Jerry Brown has joined two state appellate courts in urging this interpretation be shelved. Good.

The rule has its roots in a 1955 California Supreme Court ruling in the Allen v. City of Long Beach case, in which an amendment to Long Beach’s charter that sharply increased employee pension contributions and which made other major pension changes was thrown out on the grounds that it violated the city’s contractual obligations to employees. Chief Justice Phil S. Gibson’s ruling said pensions could be modified so long as they remained reasonable if it were necessary to maintain the “integrity” and “successful operation” of a pension system. But he also created what’s become known as the “California rule” when he wrote that “changes in a pension plan which result in disadvantage to employees should be accompanied by comparable new advantages” — without offering evidence that this reflected the Legislature’s intent.

Read more at The San Diego Union-Tribune