Molina v. Board of Administration
132 Cal. Rptr. 3d 435
Cal. Ct. App.2011Background
- Molina was terminated as Oxnard's Director of Finance and Administrative Services in November 1999 and later received a CalPERS pension based on service with Oxnard and LACOE.
- Molina and Oxnard settled in February 2007 for $875,000 to resolve Molina's wrongful-termination federal suit, including a one-day reinstatement to allow purchase of CalPERS service credits and an integration clause stating the agreement is the final understanding.
- After the settlement, Molina sought to have CalPERS treat settlement proceeds as back pay to increase his pension; CalPERS and Oxnard denied this characterization and the pension calculation.
- An ALJ ruled the settlement payment was neither payrate nor special compensation; CalPERS board denied Molina's administrative appeal; Molina then filed a petition for writ of mandate in superior court, which was denied.
- The appellate court independently reviews questions of law and reviews factual findings for substantial evidence, but here the issues are primarily legal interpretation of the settlement and PERL.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Molina has a right to characterize settlement proceeds as back pay | Molina | Oxnard | No; integrated agreement assigns characterization to Oxnard, not Molina |
| Whether PERL allows inclusion of settlement proceeds in final compensation | Molina | CalPERS/Oxnard | Settlement not count as payrate or special compensation under PERL |
| Whether one-day reinstatement can create qualifying service for pension purposes | Molina | CalPERS/Oxnard | One-day reinstatement cannot generate a year of service credit for pension calculation |
Key Cases Cited
- Ventura County Deputy Sheriffs' Ass'n v. Board of Retirement, 16 Cal.4th 483 (Cal. 1997) (limits compensation eamable to payrate or special compensation)
- City of Sacramento v. Public Employees Retirement System, 229 Cal.App.3d 1470 (Cal. App. Dist. 3rd Div. 1991) (final compensation framework under PERL)
- Prentice v. Board of Administration, 157 Cal.App.4th 983 (Cal. App. Dist. 2nd Div. 2007) (payrate and special compensation require published pay or policy-based schemes)
- O’Connor v. State Teachers’ Retirement System, 43 Cal.App.4th 1610 (Cal. App. Dist. 2nd Div. 1996) (independent review standard and substantial evidence for retirement findings)
- Alling v. Universal Manufacturing Corp., 5 Cal.App.4th 1412 (Cal. App. Dist. 4th Div. 1992) (integration clause precludes extrinsic evidence of prior agreements)