A California appeals court overturned part of a pension increase for over 3,000 state workers. The deal was negotiated between the California Statewide Law Enforcement Association and then Governor Gray Davis's administration. The court said that the deal was not retroactive, and so does not cover the years between 2002-2004, but only after 2004. The cost of the retroactive benefits was estimated at around $40 million. Governor Jerry Brown's administration said that they agreed with the ruling.
See "State workers union loses pension ruling in court", Bob Egelko, San Francisco Chronicle, January 26, 2011