The Fullerton City Council met behind closed doors on December 2, 2025, to discuss a little-known state enforcement case. The California Public Employees’ Retirement System (CalPERS), which oversees the state’s public pension system, has determined that Fullerton illegally employed several retirees in permanent, long-term positions. If CalPERS’s findings are upheld, the city could face significant financial liabilities—including repayment of pension benefits, backdated employer contributions, penalties, and legal expenses—at a time when Fullerton’s budget deficit is already worsening.
California law allows CalPERS retirees to return to public service, but only in limited situations. Retired annuitants may work no more than 960 hours per fiscal year, must fill short-term or emergency vacancies, cannot receive benefits, and cannot perform duties comparable to those of a permanent employee. Violations typically require the retiree to be reinstated into CalPERS and the agency to pay all missed contributions and potential penalties.
The roots of the issue stretch back to April 27, 2021, when the City Council voted to fire City Manager Ken Domer, with Councilmembers Zahra and Silva opposed. Domer, who had served as City Manager since 2017, was widely respected by staff and community stakeholders. His abrupt removal, just months after Councilmembers Fred Jung and Nick Dunlap took office, shocked City Hall. Several senior employees resigned shortly afterward, describing the firing as unnecessary and destabilizing…