public safety unions

The California Supreme Court ruled that public employees can only count vacation hours cashed out within a single calendar year toward their pension formulas, limiting retirees' ability to spread accrued time over multiple years. The decision centered on a case involving retired Ventura County Counsel Leroy Smith, who cashed out 240 hours of vacation time in a 12-month period but was denied pension credit for 40 hours exceeding his contract's annual limit.

CalPERS achieved a 14.8% investment return in the 2025-26 financial year, surpassing its 6.8% target and marking its best performance since 2014. The improved returns reduced its underfunded status to 85% of liabilities, easing pressure on government agencies and taxpayers to cover shortfalls.