BILL ANALYSIS                                                                                                                                                                                                    



                                                                  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
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            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