Weber v. Board of Retirement

In Weber v. Board of Retirement (1998) 62 Cal.App.4th 1440, the court addressed the question of whether administrative agencies (e.g., retirement boards) have the authority "to award interest on benefits which have not been denied, but ... represent the period before the Board made the eligibility determination, and ... are designed to bring the disbursements current." (Id. at p. 1445.) Weber stated: "The event which triggers retirement and the right to allowance payments is the disability determination by the Board. Until that time, the member is not retired, and the retirement system has no monetary obligation to that member." (Id. at p. 1448, italics added.) "Once disability is demonstrated to the Board's satisfaction, the member's right to receive benefits vests retroactively to the date the application was filed." (Id. at p. 1449.) Alternatively stated, "Government Code section 31724 provides that once the eligibility determination is made, the right to benefits vests immediately, effective retroactively." (Id. at p. 1451.) Weber explained: "The member seeking disability retirement benefits must apply , and carries the burden of demonstrating, to the Board's satisfaction , his or her eligibility for the benefits. Until the member makes the necessary showing of eligibility, his or her right is merely inchoate." (Ibid., italics added.) Weber concluded neither the CERL nor section 3287(a) authorized an administrative award of prejudgment interest. (Weber, supra, at p. 1452.)