What is the test for determining whether a pension is a gratuity?

California, United States of America


The following excerpt is from Marin Ass'n of Pub. Emps. v. Marin Cnty. Employees' Ret. Ass'n, 2 Cal.App.5th 674, 206 Cal.Rptr.3d 365 (Cal. App. 2016):

16 Which means it can never be the mere gratuity hyperbolically feared by plaintiffs. (See Riggs v. District Retirement Board (1942) 21 Cal.2d 382, 385, 132 P.2d 1 [ A pension is a gratuity only where it is granted for services previously rendered which at the time they were rendered gave rise to no legal obligation ... But where, as here, services are rendered under a pension statute, the pension provisions become a part of the contemplated compensation for those services and so in a sense a part of the contract of employment itself. ].)

16 Which means it can never be the mere gratuity hyperbolically feared by plaintiffs. (See Riggs v. District Retirement Board (1942) 21 Cal.2d 382, 385, 132 P.2d 1 [ A pension is a gratuity only where it is granted for services previously rendered which at the time they were rendered gave rise to no legal obligation ... But where, as here, services are rendered under a pension statute, the pension provisions become a part of the contemplated compensation for those services and so in a sense a part of the contract of employment itself. ].)

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