CalPERS asked the California Supreme Court to overrule a state appellate court decision that the retirement system did not have authority to exempt certain employees from civil-service rules and to set their pay levels.
The $134 billion California Public Employees Retirement System, Sacramento, claims that Proposition 162, enacted by California voters in 1992, gives the fund full "plenary authority to administer the system and keep it from legislative and executive branch interference.
The Third Appellate District Courts Jan. 30 ruling affects up to 33 CalPERS employees who are exempt from civil service rules, including 10 internal portfolio managers. Hiring for one vacant position has been put on hold, said Pat Macht, CalPERS spokeswoman. The ruling also concerns all other California public pension funds, according to CalPERS March 11 brief to the California Supreme Court.