BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 2140|
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THIRD READING
Bill No: AB 2140
Author: Lara (D)
Amended: As introduced
Vote: 21
SENATE PUBLIC EMPLOYMENT & RETIRE. COMM. : 4-0, 6/25/12
AYES: Negrete McLeod, Walters, Padilla, Vargas
NO VOTE RECORDED: Gaines
SENATE APPROPRIATIONS COMMITTEE : 7-0, 8/16/12
AYES: Kehoe, Walters, Alquist, Dutton, Lieu, Price,
Steinberg
ASSEMBLY FLOOR : 77-0, 5/29/12 - See last page for vote
SUBJECT : State Bargaining Unit 5: Highway Patrol
SOURCE : California Association of Highway Patrolmen
DIGEST : This bill reduces retirement contribution rates
for miscellaneous and industrial members of State
Bargaining Unit 5, Highway Patrol, by 3%.
ANALYSIS : Existing law requires the following retirement
contribution amounts for state miscellaneous or state
industrial members of State Bargaining Unit (BU) 5:
1. For those members who do not participate in Social
Security, 11% of compensation in excess of $317 per
month towards retirement.
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2. For those members who do participate in Social Security,
10% of compensation in excess of $513 per month.
Comments
According to the author, this bill corrects a retirement
contribution oversight and ensures current law accurately
reflects the agreement reached between the state and the
California Association of Highway Patrolmen (CAHP)
regarding California Highway Patrol (CHP) cadet pension
contributions.
BU 5 cadets are the group of employees who undergo the
six-month CHP training academy. During this training
period, cadets are classified as miscellaneous employees
for retirement purposes. Upon graduation from the CHP
Academy, cadets are promoted to the position of officer and
become Patrol members of the California Public Employees'
Retirement System (CalPERS).
The current BU 5 memorandum of understanding (MOU) reached
between the state and the CAHP, required Patrol members to
increase their pension contribution by 2%, from 8% of
monthly pay to 10% of monthly pay. During negotiations
that culminated in the current BU 5 MOU, the state and CAHP
intended that cadets, while serving their six month academy
training, would also increase their pension contribution by
2%, from 5% to 7% of their monthly pay. Once the cadets
graduate and are sworn in, their contribution rate would
increase to 10%.
According to the Department of Personnel Administration
(DPA) who represents the state in these negotiations, the
parties' intent on the cadets' retirement contribution
issue did not translate onto the current MOU nor into the
legislation that ratified the BU 5 MOU, SB 846 (Correa),
Chapter 162, Statutes of 2010. As a result, CHP cadets are
now contributing more than what was agreed upon between the
state and CAHP into CalPERS. Further evidence of the
intent to have CHP cadets contribute 7% rather than the
current 10% can be seen in DPA's fiscal analysis of SB 846
which accurately reflects the intended 7% monthly pension
contribution for cadets.
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The author concludes, "In the ongoing process of
administering state employee bargaining agreements, the
State Controller's Office notified DPA of the oversight and
that current law required the cadets to contribute 10%
toward their pension. Consequently, a statutory change to
Government Code section 20677.7 is required to accurately
reflect the State's and CAHP's intent that BU 5 cadets pay
7% of monthly pay toward the pension fund."
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee, one-time
reimbursement costs from CalPERS of approximately $200,000
(Special); and minor, absorbable costs to the State
Controller's Office and to CalPERS for readjusting member
contributions (General/Special).
SUPPORT : (Verified 8/17/12)
California Association of Highway Patrolmen (source)
ASSEMBLY FLOOR : 77-0, 5/29/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fong, Fuentes, Furutani, Beth
Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell, Grove,
Hagman, Halderman, 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, Portantino,
Silva, Skinner, Smyth, Solorio, Swanson, Torres, Valadao,
Wagner, Wieckowski, Williams, Yamada, John A. Pérez
NO VOTE RECORDED: Cedillo, Fletcher, Hall
DLW:m 8/20/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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