BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 1667
                                                                  Page  1

          Date of Hearing:   May 5, 2010

                               Alberto Torrico, Chair
                   AB 1667 (Swanson) - As Amended:  April 27, 2010
          SUBJECT  :   Public employment: County of Alameda.

           SUMMARY  :   Implements the retirement provisions of a recently  
          negotiated bargaining agreement between Alameda County and the  
          Alameda County Deputy Sheriff's Association (DSA).  This  
          agreement eliminates the current 3% at 50 formula for all new  
          deputies hired after April 17, 2010, and instead allows newly  
          hired deputies to choose between the basic 2% at 50 formula or a  
          3% at 55 formula which requires additional employee  
          contributions, as specified.   Specifically, this bill  :

          1)Requires deputies and unrepresented safety employees first  
            hired after April 17, 2010, to make a written election to be  
            covered under either a 2% at 50 formula or a 3% at 55 formula.  
             The 3% at 50 formula will no longer be available to new  

          2)Specifies that this irrevocable election must be made within  
            45 calendar days of beginning employment with the county.

          3)Specifies that if a new deputy fails to make an election  
            within the 45 days, the deputy will be deemed to have elected  
            the 2% at age 50 formula.

          4)Allows the Board of Supervisors of the County of Alameda  
            (Board) to provide a different retirement formula for members  
            of other safety bargaining units or other unrepresented safety  
            employees if agreed to in a negotiated memorandum of  
            understanding.  This agreement may require a member to pay all  
            or part of the required member or employer contributions.

          5)Prohibits the Board from requiring that a bargaining unit be  
            divided solely for the purpose of providing different  
            retirement benefits.  The Board may, however, separately  
            negotiate retirement benefits with a bargaining unit if the  
            members of that bargaining unit so elect.   

           FISCAL EFFECT  :   Unknown.


                                                                  AB 1667
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           COMMENTS  :   According to the author, "Alameda County recognizes  
          the need to address what has been identified as a looming  
          statewide problem in need of a timely fix; the future costs  
          associated with the provision of retirement benefits to public  
          sector employees.  In its effort to avoid negative consequences  
          or runaway retirement costs, Alameda County has conscientiously  
          pursued modifications to the retirement benefits for its  
          respective employee bargaining units.  To that end, the County  
          recently reached agreement with the Deputy Sheriff's Association  
          that will result in substantial long-term savings to County  

          Based on information provided to the Committee, the terms of the  
          bargaining agreement are as follows:

               The DSA contract expired on March 7, 2009.  There are four  
               classes represented by the DSA.  They are: Deputy Sheriff  
               Recruit; Deputy Sheriff I; Deputy Sheriff II; and Sergeant.  
                There are 1,004 total authorized positions.  The County  
               and DSA began negotiating a successor memorandum of  
               understanding (MOU) in May 2009.  The new MOU was adopted  
               by the Board on January 26, 2010.

               The new six-year contract that expires on March 14, 2015  
               provides for no salary increases for the contract's first  
               three year and then incrementally aligns the DSA salaries  
               with the median of similarly-sized law enforcement agencies  
               during the final three years.  The DSA also agreed to share  
               in 10% of the health premium costs effective plan year  

               Furthermore, the contract will eliminate the current 3% at  
               50 safety pension arrangement for all new deputies hire  
               after April 17, 2010, replacing it with the basic 2% at 50  
               formula.  New deputies may opt for a 3% at 55 formula which  
               will require an additional employee contribution of 5% of  
               salary annually for five years until vested and 3% of  
               salary annually thereafter until retirement.  Currently,  
               deputies pay up to 15% of salary towards their pensions.   
               The DSA agreed to jointly support state legislation  
               necessary to accomplish this change in the retirement  



                                                                  AB 1667
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          County of Alameda (Sponsor)
          Deputy Sheriffs' Association of Alameda County

          None on file
          Analysis Prepared by  :    Karon Green / P.E., R. & S.S. / (916)