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
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          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