Story perspectives

California Supreme Court Limits Vacation Cashouts to 200 Hours

7/29/2026

Summary

Story summary

California Supreme Court ruled county employees may count vacation cashouts toward pension only 200-hour limit, not by spanning a 12-month period.
The court rejected Ventura County Counsel Leroy Smith after he cashed out 240 hours between October 2019 and October 2020 and claimed 40 hours should count.
The justices said Governor Jerry Brown’s 2013 pension reform law sets the limit within a calendar year, affecting pension plans separate from CalPERS and CalSTRS.

History

Historical Context

California’s 1995 Pension Reform Act (SB 400), signed by Governor Gray Davis, capped annual pension accrual at 200 hours and projected $1.5 billion in savings. The state Supreme Court’s recent ruling upholds that cap, rejecting Ventura County Counsel Leroy Smith’s attempt to count 240 cash-out hours, reinforcing the fiscal intent behind reforms such as Governor Jerry Brown’s 2012 benefit reductions for new hires.

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Story summary

California Supreme Court ruled county employees may count vacation cashouts toward pension only 200-hour limit, not by spanning a 12-month period.
The court rejected Ventura County Counsel Leroy Smith after he cashed out 240 hours between October 2019 and October 2020 and claimed 40 hours should count.
The justices said Governor Jerry Brown’s 2013 pension reform law sets the limit within a calendar year, affecting pension plans separate from CalPERS and CalSTRS.

1 / 2