City of San Diego v. San Diego City Employees' Retirement System

**City vs. Pension System: Who Pays for Service Credits?** This case involved a dispute between the City of San Diego and its pension system over who should pay for certain pension service credits. The pension system (SDCERS) had been charging the city for the costs of allowing employees to purchase additional years of service credit to boost their retirement benefits. The city argued it shouldn't have to pay these costs. Both the trial court and appeals court sided with the city. The courts ruled that the pension system had no legal authority to charge the city for these service credits. According to the governing laws, employees themselves must pay the full cost of purchasing additional service credits, making the program financially neutral for the city. The pension system could not shift these costs to the employer. **Why This Matters for Workers:** This ruling clarifies that while employees can still purchase additional service credits to increase their pension benefits, they must pay the entire cost themselves. Workers cannot expect their employer to cover these optional pension enhancements. This decision reinforces that purchasing service credits remains a personal investment in retirement benefits, with the financial responsibility resting solely on the employee choosing to buy additional credited service time.