BILL ANALYSIS                                                                                                                                                                                                    






          SENATE PUBLIC EMPLOYMENT & RETIREMENT   BILL NO:  AB 2476
          Norma Torres, Chair          HEARING DATE:  June 23, 2014
          AB 2476 (Asm. PER&SS Comm)    as amended   5/23/14        
          FISCAL:  YES

           PUBLIC EMPLOYEES' PENSITON REFORM ACT OF 2013:  TECHNICAL  
          CLEANUP
           
           HISTORY  :

            Sponsor:  Author

            Other legislation:  AB 340 (Furutani),
                          Chapter 296, Statutes of 2012
                        SB 13 (Beall),
                          Chapter 528, Statutes of 2013
                        SB 1219 (Torres),
                          Assembly PER&SS Committee
           
          ASSEMBLY VOTES  :

            PER & SS                 6-0       4/23/14
            Appropriations           17-0      5/07/14
            Assembly Floor           78-0      5/15/14
           
          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.

           BACKGROUND AND ANALYSIS  :
          
           1)Existing law  :

             a)   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.
          Pamela Schneider
          Date:  June 16, 2014                                    Page  
          1










             b)   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 by the governing body of  
               the employer, or by the California Department of Human  
               Resources (CalHR) if a state retiree, as specified.

             c)   permits a retired judge to be appointed to a court of  
               record without reduction or loss of retirement benefits,  
               as specified.
             d)    requires public officials and employees to forfeit  
               pension and related benefits, as specified, 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.

           1)This bill  : 
           
             a)   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.

             b)   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.

             c)   clarifies the provision under which a retired judge  
               is exempt from restrictions of PEPRA with regard to  
               working after retirement by citing the specific  
               statutory program for such employment.

             d)   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  :

          Pamela Schneider
          Date:  June 16, 2014                                    Page  
          2









          According to Assembly Appropriations committee:   
          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 to provide the certification.

           COMMENTS  :

           1)Argument in Support  :

          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.

           2)OPPOSITION  :

            None.                              #####











          Pamela Schneider
          Date:  June 16, 2014                                    Page  
          3