BILL ANALYSIS Ó AB 2476 Page 1 Date of Hearing: April 23, 2014 ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL SECURITY Rob Bonta, Chair AB 2476 (P.E.,R.& S.S. Com.) - As Amended: April 21, 2014 SUBJECT : Employment after retirement: eligibility. SUMMARY : Makes technical corrections to the Public Employees' Pension Reform Act of 2013 (PEPRA) in order to clarify the Legislature's intent in enacting PEPRA and to assist affected employers and retirement systems in implementation of PEPRA. Specifically, this bill : 1)Clarifies that, for legislative employees, the Senate Committee on Rules or the Assembly Rules Committee makes the certification necessary in order to bring a retired annuitant back to fill a critically needed position before the person has been retired for 180 days. 2)Clarifies that, for employees of the California State University (CSU), the Trustees of the CSU make the certification necessary in order to bring a retired annuitant back to fill a critically needed position before the person has been retired for 180 days. 3)Clarifies that, for judicial employees, the Administrative Office of the Courts makes the certification necessary in order to bring a retired annuitant back to fill a critically needed position before the person has been retired for 180 days. 4)Clarifies terminology in the sections governing forfeiture of benefits when a member of a public retirement system has been convicted of a felony, 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. AB 2476 Page 2 2)Prohibits a person who retires on or after January 1, 2013, from returning to work as a retired annuitant for a period of 180 days after retirement unless the action is approved in an open meeting, as specified by the governing body of the employer, or by California Department of Human Resources (CalHR) authority if state retiree, as specified. 3)Requires public officials and employees to forfeit pension and related benefits if they are convicted of a felony in carrying out official duties, in seeking an elected office or appointment, or in connection with obtaining salary or pension benefits. FISCAL EFFECT : Unknown. COMMENTS : According to the author, "The bill enacting PEPRA, AB 340 (Furutani), Chapter 296, Statutes of 2012, passed at the end of the 2012 session as a conference committee report following over a year of meetings, hearings, and various legislative efforts relative to comprehensive pension reform. Due to the scope of the bill and its complexity, and the requirement that a conference report may not be amended once in print, a number of provisions needed to be clarified. Last year's bill, SB 13 (Beall), Chapter 528, Statutes of 2013, made a number of clarifying changes to PEPRA but additional minor clarifications are necessary. This bill will provide employers and retirement system administrators with better guidelines for fully implementing the requirements of AB 340." REGISTERED SUPPORT / OPPOSITION : Support None on file Opposition None on file Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916) 319-3957 AB 2476 Page 3