At The Lectern by Horvitz & Levy

Pension, sales tax refund opinions filing Monday

As expected, the Supreme Court on Monday morning will file its opinions in Cal Fire Local 2881 v. California Public Employees’ Retirement System and McClain v. Sav-On Drugs, the last two undecided cases from the December calendar. (Briefs here; oral argument videos here.)

Both cases have attracted lots of amicus briefs — 16 in Cal Fire and 6 in McClain.

Cal Fire raises these questions: (1) Was the option to purchase additional service credits pursuant to Government Code section 20909 (known as “airtime service credits”) a vested pension benefit of public employees enrolled in CalPERS?  (2) If so, did the Legislature’s withdrawal of this right through the enactment of the Public Employees’ Pension Reform Act of 2013 (PEPRA) (Gov. Code, §§ 7522.46, 20909, subd. (g)), violate the contracts clauses of the federal and state Constitutions? Second District, Division Seven, Justice Laurie Zelon is the pro tem.

Cal Fire is one of several high-profile pension matters pending before the court. (See here, here, here, here, and here.) Then-Governor Jerry Brown specifically asked the court to expedite the case.

McClain will decide whether a purchaser of products allegedly exempt from sales tax but for which the retailer collected sales tax reimbursement can bring an action to compel the retailer to seek a sales tax refund from the State Board of Equalization and remit the proceeds to purchasers? Fourth District, Division Three, Presiding Justice Kathleen O’Leary is the pro tem.

The two opinions can be viewed Monday starting at 10:00 a.m.