BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2476
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 2476 (Public Employees, Retirement and Social Security  
          Committee)
          As Amended May 23, 2014
          Majority vote
           
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          |ASSEMBLY:  |78-0 |(May 15, 2014)  |SENATE: |34-0 |(August 7,     |
          |           |     |                |        |     |2014)          |
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           Original Committee Reference:    P.E., R. & S.S.

          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 Rules  
            Committee 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. 

           The Senate amendments  add the provision related to retired  
          judges and make additional clarifications to the forfeiture of  
          benefits provisions.

           EXISTING LAW  :








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          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.

          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)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 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  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.

           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."


           Analysis Prepared by  :    Karon Green / P.E., R. & S.S. / (916)  
          319-3957 









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