BILL ANALYSIS Ó AB 2476 Page 1 Date of Hearing: May 7, 2014 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 2476 (PERSS Committee) - As Amended: April 29, 2014 Policy Committee: PERSSVote:6-0 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill makes technical corrections to the Public Employees' Pension Reform Act of 2013 (PEPRA) to assist certain affected employers and retirement systems in implementation of PEPRA. Specifically, this bill clarifies that for legislative and California State University staff, the certification necessary to bring a retiree back to fill a critically needed position before the person has been retired for 180 days falls to the Senate Committee on Rules or the Assembly Rules Committee and the Trustees of the CSU, respectively. This bill also 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. FISCAL EFFECT Insignificant costs to CSU and the State Legislature to administer certifications, likely more than offset by efficiency gains by not requiring the California Department of Human Resources (CalHR) provide the certification. COMMENTS 1) Purpose. According to the author, the complexities surrounding the passage of PEPRA in 2012 resulted in a number of provisions requiring clarification, many of which were addressed in in SB 13 (Beall), Chapter 528, Statutes of 2013. Certain minor clarifications remain necessary, however, and this bill provides employers and retirement system administrators with better guidelines for fully implementing AB 2476 Page 2 the requirements of PEPRA. 2) Background. Currently, PEPRA 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 CalHR if the person is a state retiree. Analysis Prepared by : Joel Tashjian / APPR. / (916) 319-2081