BILL ANALYSIS                                                                                                                                                                                                    

          Lou Correa, Chair            Hearing date:  June 28, 2010
          AB 1667 (Swanson)    as amended  5/06/10      FISCAL:  NO

           HISTORY :            

              Sponsor:  County of Alameda

              Prior Legislation:  none

           ASSEMBLY VOTES  :

              Assembly Rules       10-0      3/11/10
              PER & SS               6-0     5/05/10
              Assembly Floor       72-0      5/20/10
          SUMMARY  : 

          Would allow implementation of the memorandum of understanding  
          (MOU) between Alameda County and the Alameda County Deputy  
          Sheriffs' Association.  The MOU eliminates the current 3% at  
          age 50 retirement formula for new hires and replaces it with  
          the choice between 2 new retirement formulas:  2% at age 50,  
          or 3% at age 55 with increased member contributions.   URGENCY  
          BILL  .

              1)   Existing law  :

             a)   allows public employers and employee representatives  
               to collectively bargain over wages, including benefits,  
               and working terms and conditions.

             b)   authorizes various safety retirement formulas,  
               including the 3% at age 50 safety retirement formula,  
               which is the retirement formula for currently-employed  
               deputy sheriff members of the Alameda County Employees  
               Retirement Association (ACERA).

             c)   sets forth the required member contributions for  
          Pamela Schneider
          Date:  6/21/10                                         Page 1  


               safety retirement benefits but allows those  
               contributions to be higher (i.e., employer pays less) or  
               lower (i.e., employer pays more), as agreed to in a MOU.

          2)  This bill  will allow implementation of the collective  
            bargaining agreement between the Alameda County Deputy  
            Sheriffs' Association and Alameda County.  Specifically,  
            this bill:

             a)   allows the Alameda County Board of Supervisors, as  
               agreed to in an MOU with a safety employee group, to  
               offer different safety retirement formulas to safety  
               employees hired after the effective date of a resolution  
               to that effect.

             b)   requires new safety employees hired after the  
               effective date of the resolution to choose between two  
               other existing retirement formulas:  2% at age 50 or
               3% at age 55.

             c)   requires that new employees make this election within  
               45 days of beginning employment, or they will  
               automatically be placed in the 2% at age 50 formula.

             d)   requires that the employee election be irrevocable.

             e)   allows the resolution to require specific member  
               contribution rates, which may or may not include part of  
               the employer contribution.

             f)   prohibits the resolution from requiring that a  
               bargaining unit be divided solely for the reason of  
               providing different retirement benefits.

             g)   provides that this is an urgency statute in order to  
               timely implement the terms of the MOU between the County  
               of Alameda and the Deputy Sheriffs' Association.

          Pamela Schneider
          Date:  6/21/10                                         Page 2  


           COMMENTS  :

           1)   Arguments in support
          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 (DSA) that will result in substantial long-term  
            savings to County taxpayers.

          Based on information provided to the Assembly Public  
          Employment, Retirement, and Social Security 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,  

               The new six-year contract that expires on March 14, 2015  
               provides for no salary increases for the contract's  
               first three years 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 2010.

               Furthermore, the contract will eliminate the current 3%  
               at 50 safety pension arrangement for all new deputies  
               hired after April 17, 2010, replacing it with the basic  
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          Date:  6/21/10                                         Page 3  


               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 formula.  

          2)   SUPPORT  :

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

          3)   OPPOSITION  :

               None to date


          Pamela Schneider
          Date:  6/21/10                                         Page 4