BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 868


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          Date of Hearing:   April 29, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          868 (Obernolte) - As Introduced February 26, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill authorizes the California Public Employees' Retirement  
          System (CalPERS) to enter into an agreement with the Board of  
          Retirement for the San Bernardino County Employees' Retirement  
          Association (SBCERA) for the transfer of service credit and  
          associated assets and liabilities for safety employees of a  
          public agency of the state who have been transferred to a local  
          firefighting or law enforcement agency that participates in  
          SBCERA.


          As a result of this bill, employees of the Big Bear Fire  
          Authority, a Joint Powers Authority created by the Big Bear City  








                                                                     AB 868


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          Community Services District and the Big Bear Lake Fire  
          Protection District, can be fully consolidated and participate  
          in SBCERA.


          FISCAL EFFECT:


          Minor and absorbable costs to CalPERS.


          COMMENTS:


          1)Purpose.  In June 2012, the boards of the Big Bear City  
            Community Services District and the Big Bear Lake Fire  
            Protection District established a Joint Powers Authority  
            creating the Big Bear Fire Authority.  The new authority has  
            consolidated fire department administration, removed  
            jurisdictional boundaries, and implemented standard operating  
            policies and procedures.  


            According to the author, the fire authority is now functioning  
            in almost every aspect as one department, and is ready to  
            manage its own financial responsibilities.  The author  
            contends the only issue impeding full consolidation is pension  
            realignment.  AB 868 allows the transfer of city employees  
            from CalPERS to SBCERA without triggering withdrawal  
            liability.


          2)Going It Alone.  Existing law allows the counties of Los  
            Angeles, Kern, and Orange, in specified instances, to transfer  
            service credit and associated assets and liabilities of active  
            CalPERS members to a county retirement system in cases where  
            firefighting or law enforcement functions are transferred from  
            the state or an agency participating in CalPERS to an agency  
            participating in a county retirement system.  The relevant  








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            provision allows the transfer to occur without triggering  
            withdrawal liability by also transferring all associated  
            liabilities for accrued benefits to the county retirement  
            system.





          Analysis Prepared by:Joel Tashjian / APPR. / (916)  
          319-2081