BILL NUMBER: AB 284	CHAPTERED
	BILL TEXT

	CHAPTER  66
	FILED WITH SECRETARY OF STATE  JULY 13, 2015
	APPROVED BY GOVERNOR  JULY 13, 2015
	PASSED THE SENATE  JUNE 18, 2015
	PASSED THE ASSEMBLY  JUNE 25, 2015
	AMENDED IN SENATE  JUNE 3, 2015

INTRODUCED BY   Assembly Member Brough
   (Coauthor: Senator Bates)

                        FEBRUARY 11, 2015

   An act relating to the public employee pension benefits of the
City of San Juan Capistrano.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 284, Brough. City of San Juan Capistrano: public employee
pension benefits.
   The California Public Employees' Pension Reform Act of 2013
(PEPRA) generally requires a public retirement system, as defined, to
modify its pension plan or plans to comply with the act and, among
other things, prohibits a public employer that offers a defined
benefit pension plan from exceeding specified retirement formulas for
new members, as defined. PEPRA permits a public employer to adopt a
new defined benefit formula, on or after January 1, 2013, that is not
consistent with PEPRA, if that formula is determined and certified
by the chief actuary and the board of that employer's retirement
system to not have a greater risk or greater cost to the sponsoring
employer than the defined benefit formula required by PEPRA and the
plan is approved by the Legislature.
   This bill would approve a specified defined benefit formula
applicable to employees of the City of San Juan Capistrano.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  (a) The Legislature finds and declares the following:
   (1) The California Pension Reform Act of 2013 (PEPRA) created
specified defined benefit formulas that are the only defined benefit
formulas that a public retirement system is permitted to offer to new
members, as that term is defined in Section 7522.04 of the
Government Code, unless the Legislature grants its approval for a
different defined benefit formula and other requirements are met.
   (2) The City of San Juan Capistrano has negotiated memoranda of
understanding with the San Juan Capistrano Management and
Professional Employees Association and the San Juan Capistrano
Classified Employees Association pursuant to which new employees may
elect, in preference to a defined benefit plan provided by PEPRA, a
hybrid retirement plan, termed Plan W, that consists of a defined
benefit plan component, which provides a lesser defined benefit than
that prescribed by PEPRA, and a defined contribution component.
   (3) Consistent with requirements of PEPRA, specifically
subdivision (d) of Section 7522.02 of the Government Code, the
defined benefit plan component of the hybrid plan described in
paragraph (2) has been certified and determined by the chief actuary
of the retirement system and the Board of Retirement of the Orange
County Employees Retirement System as representing no greater risk
and no greater cost to the employer than the relevant defined benefit
formula provided by PEPRA and is thus consistent with the PEPRA
principle of reducing the burden of public employee retirement
benefits on public agencies.
   (b) Pursuant to subdivision (d) of Section 7522.02 of the
Government Code, the Legislature hereby approves of the defined
benefit formula described in this act.