BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                       CONSENT


          Bill No:  AB 2476
          Author:   Assembly Public Employees, Retirement and Social  
          Security Cmte.
          Amended:  5/23/14 in Senate
          Vote:     21

           
           SENATE PUBLIC EMPLOYMENT & RETIREMENT COMM  :  5-0, 6/23/14
          AYES:  Torres, Walters, De León, Gaines, Steinberg

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8
           
           ASSEMBLY FLOOR  :  78-0, 5/15/14 (Consent) - See last page for  
            vote


           SUBJECT  :    Public employees retirement and health benefits

           SOURCE  :     Author


           DIGEST  :    This bill 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.

           ANALYSIS  :    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  
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                                                                    AB 2476
                                                                     Page  
          2

            California and charter cities and counties that do not  
            participate in a retirement system governed by state statute.

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

          3.Permits a retired judge to be appointed to a court of record  
            without reduction or loss of retirement benefits, as  
            specified.

          4.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.

          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 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.

          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.

           Comments







                                                                   AB 2476
                                                                     Page  
          3

           
          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."

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           ASSEMBLY FLOOR  :  78-0, 5/15/14
          AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,  
            Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,  
            Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hernández,  
            Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,  
            Maienschein, Medina, Melendez, Mullin, Muratsuchi, Nazarian,  
            Nestande, Olsen, Pan, Patterson, Perea, John A. Pérez, V.  
            Manuel Pérez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas,  
            Rodriguez, Salas, Skinner, Stone, Ting, Wagner, Waldron,  
            Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
          NO VOTE RECORDED: Mansoor, Vacancy


          JL:nl  8/6/14   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  NONE RECEIVED

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