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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|Policy |PERSS |Vote:|7 - 0 |
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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
AB 868
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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