BILL ANALYSIS Ó AB 329 Page 1 ASSEMBLY THIRD READING AB 329 (Dickinson) As Amended March 16, 2011 2/3 vote. Urgency PUBLIC EMPLOYEES 6-0 ----------------------------------------------------------------- |Ayes:|Furutani, Mansoor, Allen, | | | | |Harkey, Ma, Wieckowski | | | | | | | | ----------------------------------------------------------------- SUMMARY : Implements the retirement provisions of a recently negotiated bargaining agreement between Sacramento County and the Sacramento County Deputy Sheriff's Association (SCDSA). Specifically, this bill : 1)Allows the Sacramento County Board of Supervisors, as part of an approved memorandum of understanding, to require safety employees of that bargaining unit first hired after the approval of the resolution to be covered by the 3% at 55 retirement formula rather than the current 3% at 50 formula. The Board of Supervisors may also apply this provision to an unrepresented safety employee first hired after the approval of the resolution. 2)Allows the Sacramento County Board of Supervisors, by resolution as specified, to provide different retirement formulas for new members in one safety bargaining unit or other new unrepresented safety employees than is provided for new safety members of other bargaining units or unrepresented safety members. EXISTING LAW : 1)Allows public employers and employee representatives to collectively bargain over wages, including benefits, and working terms and conditions. 2)Authorizes various safety retirement formulas under the County Employees' Retirement Law of 1937 ('37 Act). The '37 Act generally requires all members in the public safety classification to receive the same retirement benefits. Any exceptions to this requirement must be authorized in state AB 329 Page 2 law. FISCAL EFFECT : Unknown COMMENTS : According to the sponsor, on August 12, 2010, Sacramento County's Board of Supervisors unanimously approved a labor agreement between the County and two of the County's public safety units: the Sacramento County Deputy Sheriffs' Association (SCDSA) and the Law Enforcement Management Association (LEMA). The most significant change establishes a new lower retirement tier for new public safety members at 3% at age 55, with a three year highest compensation average and a Cost of Living Adjustment not to exceed 2% annually. The current safety retirement tier provides a retirement benefit formula based upon 3% at age 50. By raising the age for retirement from 50 to 55, the County states long-term savings for both the County and the Sheriff's Department will be achieved. The sponsor's conclude, "Because our County's agreement applies to members in two of our six public safety units, AB 329 is needed so that we are in compliance with state law and can implement our agreement." This bill is similar to AB 226 (Torrico) from last year which was vetoed by the Governor. The Governor's veto was based on other provisions that were contained in AB 226 that are not included in this bill. As the Governor noted in his veto message, "The other provision in this bill permits Sacramento County to immediately implement a lower retirement tier for newly hired safety employees, for specified bargaining groups. I encourage Sacramento County to reach responsible agreements with their employees, and seek new legislation to implement that component of the deal." This bill is also similar to AB 1667 (Swanson), Chapter 81, Statutes of 2010, which implemented the retirement provisions of a negotiated bargaining agreement between Alameda County and the Alameda County Deputy Sheriff's Association. That agreement eliminated the 3% at 50 formula for all new deputies hired after April 17, 2010, and instead allowed newly hired deputies to choose between the basic 2% at 50 formula or a 3% at 55 formula which requires additional contributions. AB 329 Page 3 Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916) 319-3957 FN: 0000143