The California Court of Appeal recently ruled in the case of Szewczyk v. Orange County Employees Retirement System, affirming a decision that requires the inclusion of specific overtime pay in the pension calculations for two retired deputy sheriffs. This ruling affects not only the plaintiffs, Robert Szewczyk and Rodney Morikawa, but also sets a precedent for how overtime compensation is treated in pension calculations for public employees in California.
The court's decision, filed on August 14, 2026, and certified for publication on September 11, 2026, clarifies the definition of ‘compensation earnable’ under the County Employees Retirement Law (CERL). The ruling is significant for public employees, especially those in law enforcement, as it impacts their retirement benefits.
Background
Robert Szewczyk and Rodney Morikawa, both former deputy sheriffs with the Orange County Sheriff’s Department, were the plaintiffs in this case. Following a reorganization of the department in 2008, they remained in jail operations while other deputies were assigned to patrol duties. Upon their retirement in 2018, Szewczyk and Morikawa petitioned the Orange County Employees Retirement System (OCERS) to include a specific type of overtime pay, known as “6FE overtime,” in their pension calculations.
The OCERS denied their requests, arguing that the 6FE overtime was not considered ‘compensation earnable’ because it was not ordinarily worked by all deputy sheriffs in their classification. Szewczyk and Morikawa contested this decision, leading to a series of administrative hearings and ultimately a trial court ruling in their favor.
The Ruling
The California Court of Appeal upheld the trial court's decision, stating that the 6FE overtime pay should be included in Szewczyk’s and Morikawa’s compensation calculations. The court emphasized that the overtime was indeed earned by the deputies during their regular working hours and was part of their normal compensation. The ruling stated, “6FE overtime pay constituted compensation earned by persons in Szewczyk and Morikawa’s same grade or class of positions during the relevant time period.”
Judge Motoike, along with Justices Moore and Sanchez, concurred in the ruling, affirming the trial court's findings and emphasizing the importance of accurately calculating pension benefits based on all earned compensation.
Impact
This ruling is significant for public employees across California, particularly those in law enforcement and similar fields. It establishes a clearer understanding of what constitutes ‘compensation earnable’ under CERL, potentially affecting how overtime pay is treated in pension calculations. The decision may encourage other retired public employees to review their pension benefits to ensure all earned compensation is included.
The ruling also reinforces the notion that specific job classifications can have unique compensation structures, as seen with the deputies who worked in jail operations versus those who worked in patrol. This distinction may lead to further discussions about how different roles within public service are compensated and how those compensations are calculated for retirement benefits.
What's Next
While the OCERS parties have the option to appeal this ruling, the court's decision currently stands. There are no related cases pending that would directly affect this ruling, but it may influence future cases involving pension calculations for public employees.