BILL ANALYSIS Ó AB 1380 Page 1 Date of Hearing: May 8, 2013 ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL SECURITY Rob Bonta, Chair AB 1380 (P.E.,R. & S.S. Committee) - As Amended: April 23, 2013 SUBJECT : County employees' retirement. SUMMARY : Makes various technical corrections and conforming changes that align the County Employees' Retirement Law of 1937 ('37 Act) with the provisions of the Public Employees' Pension Reform Act of 2013 (PEPRA), as enacted in AB 340 (Furutani), Chapter 296, Statutes of 2012. Specifically, this bill : 1)Specifies that the provisions of the '37 Act governing the purchase of additional retirement credit only apply to an application received by the retirement system prior to January 1, 2013, that is subsequently approved. 2)Specifies that the provisions of the '37 Act that allow a member to retire at a specified age, or a specified age with a certain amount of service credit, or once they have attained a certain amount of service credit regardless of age, do not apply to members who are subject to PEPRA. 3)Authorizes a '37 Act retirement system member who is subject to PEPRA who has completed five years of service and has reached the applicable minimum retirement age or has reached age 70, to retire, as specified. EXISTING LAW : 1)Establishes comprehensive public employee pension reform through enactment of PEPRA (and related statutory changes) that apply to all public employers and public pension plans on and after January 1, 2013, excluding the University of California and charter cities and counties that do not participate in a retirement system governed by state statute. 2)Prohibits, under PEPRA, the purchase of nonqualified service credit unless the application to purchase the credit is received by the retirement system prior to January 1, 2013, and subsequently approved. AB 1380 Page 2 3)Authorizes, under the '37 Act, an active member of the retirement system to purchase up to five years of additional retirement credit for "nonqualified service," as specified. 4)Authorizes, under the '37 Act, a safety member who has completed 10 years of continuous service and has reached age 50, or who has completed 20 years of service regardless of age, to retire, as specified. 5)Authorizes, under the '37 Act, a general member who has reached age 70, or has completed 10 years of service and has reached age 55, or who has completed 30 years of service regardless of age, to retire, as specified. FISCAL EFFECT : This bill has been keyed non-fiscal by Legislative Counsel. COMMENTS : According to the sponsor of the bill, the State Association of County Retirement Systems, AB 1380 will ensure continued implementation of PEPRA as intended by placing the act's requirements in the '37 Act. REGISTERED SUPPORT / OPPOSITION : Support State Association of County Retirement Systems (Sponsor) Opposition None on file Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916) 319-3957