A class action has been filed against the city of San Diego, California, on behalf of city employees who are vested in the City Employees' Retirement System, and who were unmarried when they retired or will be unmarried when they retire in the future. The action alleges that the city's retirement system discriminates against unmarried retirees in violation of federal and state civil rights laws. The action seeks unspecified compensatory and punitive damages.
The action alleges that San Diego's municipal code sets aside an extra retirement payment called the "surviving spouse benefit" for all retirees who are married at the time that they retire from their employment with the city, even though all employees pay into the retirement system equally. The retirement system is funded by joint contributions on the part of the city and its employees. Even so, the benefit received by unmarried retirees is allegedly almost $1.5 million less than that paid to married retirees.
Besides this allegedly negative impact on unmarried retirees, the system coincidentally has a negative effect on women retirees. The action alleges that the city is aware that more women retire unmarried than men, and in fact uses the figure that 80% of all male employees and 50% of all female employees are assumed to be married in its actuarial calculations. Allegedly, this disparate impact is sufficient to cause a violation of the federal Civil Rights Act of 1964 and the section of California's Government Code that deals with marital discrimination.