BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 329
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          ASSEMBLY THIRD READING
          AB 329 (Dickinson)
          As Amended March 16, 2011
          2/3 vote.  Urgency

           PUBLIC EMPLOYEES    6-0                                         
           
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          |Ayes:|Furutani, Mansoor, Allen, |     |                          |
          |     |Harkey, Ma, Wieckowski    |     |                          |
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           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
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            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
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          Analysis Prepared by  :    Karon Green / P.E., R. & S.S. / (916) 
          319-3957 


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