Labor/Employment
Jul. 28, 2026
State high court clarifies limits on leave cashouts in public pension calculations
The California Supreme Court unanimously ruled that public employees cannot increase their pension benefits by counting leave cashouts that exceed annual limits, clarifying its 2020 interpretation of the Public Employees' Pension Reform Act and reinforcing the law's goal of preventing pension spiking.
In a follow-up to a 2020 decision, the California Supreme Court on Monday clarified how a 2013 law limits the use of cashed-out leave when calculating pension benefits for public employees.
The Public Employees' Pension Reform Act of 2013 (PEPRA) is designed to prevent "pension spiking," in which employees receive additional cash payments during their final years of employment to boost their pensions.
In 2020, the justices upheld the law on narrow grounds in...
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