BILL ANALYSIS Ó
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THIRD READING
Bill No: SB 54
Author: Hancock (D)
Amended: 2/13/13
Vote: 27 - Urgency
SENATE PUBLIC EMPLOYMENT & RETIREMENT COMM. : 4-0, 2/11/13
AYES: Beall, Walters, Block, Gaines
NO VOTE RECORDED: Yee
SUBJECT : Retirement: county employees
SOURCE : Alameda County
DIGEST : This bill authorizes Alameda County to provide a 2%
at 65 retirement benefit formula for new employees covered by a
memorandum of understanding (MOU) adopted on or before December
31, 2012.
ANALYSIS :
Existing law:
1. Establishes the Alameda County Employees' Retirement
Association (ACERA), a public retirement system governed by
the County Employee's Retirement Law of 1937 ('37 Act).
2. Provides that all employees of the employer who are in the
same retirement classification (such as "general" members)
receive the same retirement benefit plan.
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3. Requires substantive changes to public retirement systems in
California pursuant to the Public Employee's Pension Reform
Act of 2013 (PEPRA), including to those systems established
under the '37 Act county retirement law.
4. Makes reforms pursuant to PEPRA, including that California
public retirement systems offer a 2% at 62 retirement benefit
formula to new miscellaneous (or general) members as of
January 1, 2013, in lieu of prior existing retirement benefit
formulas.
5. Authorizes a limited exception to allow public employers to
provide a defined benefit pension plan other than the PEPRA
plan to new members on or after January 1, 2013, but only if
the alternative plan has a lower retirement benefit formula
and lower normal cost than PEPRA and is approved by the
Legislature after being bargained between employer and
employee representatives.
This bill:
1. Authorizes Alameda County, subject to a MOU approved prior to
December 31, 2012, to provide a different retirement formula
in lieu of the PEPRA formula. The formula provides a
retirement benefit of approximately 2% at 65 for new members
after a resolution approving the formula is passed by the
Board of Supervisors.
2. Requires employees subject to the 2% at 65 formula to be
subject to all other requirements of PEPRA, including the cap
on pensionable compensation and the three-year final
compensation factor.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local:
No
SUPPORT : (Verified 2/12/13)
Alameda County (source)
California State Association of Counties
Service Employees International Union, Local 1021
ARGUMENTS IN SUPPORT : According to Alameda County's
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representative, this bill "represents the culmination of
contract negotiations between Alameda County and SEIU 1021."
SEIU Local 1021 states that this bill "will save money for
county taxpayers and will strengthen the (Alameda County)
pension system."
CSAC notes that "SB 54 is the product of local employees coming
together with Alameda County to achieve savings that will
protect local jobs and services."
JA:d 2/12/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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