BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1667|
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                                 THIRD READING


          Bill No:  AB 1667
          Author:   Swanson (D)
          Amended:  5/6/10 in Assembly
          Vote:     27 - Urgency

           
           SENATE PUBLIC EMP. & RET. COMMITTEE  : 6-0, 06/28/10
          AYES: Correa, Ashburn, Corbett, Ducheny, Hollingsworth, Liu

           ASSEMBLY FLOOR  :  72-0, 5/20/10 - See last page for vote


           SUBJECT  :    Public employment:  County of Alameda

           SOURCE  :     County of Alameda


           DIGEST  :    This bill allows implementation of the  
          memorandum of understanding between Alameda County and the  
          Deputy Sheriffs' Association of Alameda County.  The MOU  
          eliminates the current 3% at age 50 retirement formula for  
          new hires and replaces it with the choice between two new  
          retirement formulas:  2% at age 50, or 3% at age 55 with  
          increased member contributions.

           ANALYSIS  :    

           Existing Law

          1.Allows public employers and employee representatives to  
            collectively bargain over wages, including benefits, and  
            working terms and conditions.

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          2.Authorizes various safety retirement formulas, including  
            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).

          3.Sets forth the required member contributions for 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.

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

           1.Allows the Alameda County Board of Supervisors, as agreed  
            to in a 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.

          2.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.

          3.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.

          4.Requires that the employee election be irrevocable.

          5.Allows the resolution to require specific member  
            contribution rates, which may or may not include part of  
            the employer contribution.

          6.Prohibits the resolution from requiring that a bargaining  
            unit be divided solely for the reason of providing  
            different retirement benefits.

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

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            County.

           Comments

           Based on information provided to the Assembly Public  
          Employment, Retirement, and Social Security Committee, the  
          terms of the bargaining agreement are as follows:

            The Deputy Sheriffs' Association (DSA) expired on March  
            7, 2009.  There are four classes represented by the  
            DSA.  They are (1) Deputy Sheriff Recruit, (2) Deputy  
            Sheriff I, Deputy Sheriff II, and Sergeant.  There are  
            1,004 total authorized positions.  Alameda County and  
            DSA began negotiating a successor MOU in May 2009.  The  
            new MOU was adopted by the Board on January 26, 2010.

            The new six-year contract that expires 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, effect 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  
            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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No

           SUPPORT  :   (Verified  6/30/10)

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


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           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          "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 taxpayers."


           ASSEMBLY FLOOR  : 
          AYES:  Adams, Ammiano, Anderson, Arambula, Bass, Beall,  
            Bill Berryhill, Tom Berryhill, Blakeslee, Block,  
            Blumenfield, Bradford, Brownley, Buchanan, Caballero,  
            Charles Calderon, Carter, Chesbro, Conway, Cook, Coto,  
            Davis, De Leon, DeVore, Emmerson, Eng, Feuer, Fong,  
            Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick,  
            Gilmore, Hagman, Hall, Hayashi, Hernandez, Hill, Huber,  
            Huffman, Jeffries, Jones, Knight, Lieu, Logue, Bonnie  
            Lowenthal, Ma, Mendoza, Miller, Monning, Nestande,  
            Niello, Nielsen, Norby, V. Manuel Perez, Portantino,  
            Ruskin, Salas, Saldana, Silva, Skinner, Smyth, Solorio,  
            Audra Strickland, Swanson, Torlakson, Torres, Torrico,  
            Tran, Yamada
          NO VOTE RECORDED:  De La Torre, Evans, Fletcher, Harkey,  
            Nava, Villines, John A. Perez, Vacancy


          CPM:cm  6/30/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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