BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 340| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 340 Author: Furutani (D), et al. Amended: 9/7/11 in Senate Vote: 21 SEN.PUBLIC EMPLOY. & RETIRE. COMMITTEE : 5-0, 6/27/11 AYES: Negrete McLeod, Walters, Gaines, Padilla, Vargas ASSEMBLY FLOOR : 73-0, 5/12/11 - See last page for vote SUBJECT : Public employees retirement SOURCE : Author DIGEST : This bill expresses the intent of the Legislature to convene a conference committee to craft responsible, comprehensive legislation to reform state and local pension systems in a manner that reflects both the legitimate needs of public employees and the fiscal committees of state and local governments. Senate Floor Amendments of 9/2/11 remove a redundant provision that is already provided for in another existing Government Code section and add a co-author. ANALYSIS : Existing law: 1.Establishes the 20 county retirement systems operating CONTINUED AB 340 Page 2 under the 1937 Act County Retirement Law ('37 Act), which provide defined benefit retirement allowances based on employees' years of service, age at retirement, and final compensation (most commonly, the highest paid 12 or 36 months of employment). 2.Allows public employers, through laws, rules, local ordinances, and collective bargaining agreements, to pay differentials, bonuses, overtime, separation pay, holiday pay, and other forms of compensation in addition to base pay and requires that employers accurately and timely report to the retirement boards the amount of compensation paid to employees, including special forms of pay, changes in employment status, leaves, and other facts that impact compensation. 3.Defines "compensation earnable" in the '37 Act system as the average compensation for the period under consideration with respect to the average number of days ordinarily worked by persons in the same grade or class of positions during the period, and at the same rate of pay. 4.Allows a retired public employee or teacher to return to public employment with an employer covered by the retirement system he or she retired from on a part-time basis, as specified. An employee who exceeds the limited time base or earnings, as specified, may be subject to reinstatement into the retirement system and reduction or cessation of his or her retirement allowance or earnings. This bill expresses the intent of the Legislature to convene a conference committee to craft responsible, comprehensive legislation to reform state and local pension systems in a manner that reflects both the legitimate needs of public employees and the fiscal committees of state and local governments. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No SUPPORT : (Verified 9/8/11) American Federation of State, County and Municipal CONTINUED AB 340 Page 3 Employees, AFL-CIO Association for Los Angeles Deputy Sheriffs California Association of Psychiatric Technicians California School Employees Association Glendale City Employees Association Los Angeles County Probation Officers Union Organization of SMUD Employees Redondo Beach Chamber of Commerce Retired Public Employees Association San Bernardino Public Employees Association San Luis Obispo County Employees Association Santa Rosa City Employees Association Service Employees International Union South Bay Association of Chambers of Commerce OPPOSITION : (Verified 9/8/11) Association of California Water Agencies California District Attorneys Association California State Association of Counties (oppose unless amended) ASSEMBLY FLOOR : 73-0, 5/12/11 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Butler, Charles Calderon, Campos, Carter, Chesbro, Cook, Davis, Dickinson, Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, Beth Gaines, Gatto, Gordon, Grove, Hagman, Halderman, Hall, Harkey, Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman, Jeffries, Jones, Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel Pérez, Silva, Skinner, Smyth, Solorio, Swanson, Valadao, Wagner, Wieckowski, Williams, Yamada, John A. Pérez NO VOTE RECORDED: Cedillo, Conway, Galgiani, Garrick, Gorell, Portantino, Torres CPM:cm 9/8/11 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE CONTINUED AB 340 Page 4 **** END **** CONTINUED