BILL ANALYSIS Ó
AB 1291
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Date of Hearing: May 6, 2015
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT, AND SOCIAL
SECURITY
Rob Bonta, Chair
AB 1291
(Williams) - As Introduced February 27, 2015
SUBJECT: The County Employees Retirement Law of 1937
SUMMARY: Makes the Ventura County retirement system (System) an
independent, public employer district within the Ventura County
Employees' Retirement Association (VCERA) and authorizes the
System to appoint specified positions as "at will" employees,
exempt from the county civil service system, as specified.
Specifically, this bill:
1)Includes the System in the definition of "district" for
purposes of the County Employees' Retirement Law of 1937 ('37
Act).
2)Authorizes the System, upon adoption of a resolution of the
retirement board, to appoint an administrator, assistant and
subordinate administrators, investment officers, and legal
counsel who will be classified as "at will" employees, exempt
from the county civil service system. These appointed
employees will be employees of the retirement system, not the
county, and will be subject to the terms and conditions of
employment established by the board of retirement.
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3)Provides that the compensation for these appointed employees
will be treated as an expense of the administration of the
retirement system, as specified.
EXISTING LAW:
1)Establishes the '37 Act which governs 20 independent county
retirement associations, including VCERA.
2)Defines specified districts formed under the law of the state,
located wholly or partially within a county and states that
these districts are public employers whose employees are
eligible to participate in their respective '37 Act county
retirement associations.
3)Provides Orange, San Bernardino, and Contra Costa county
retirement systems authority to be independent districts
within their respective retirement associations and the
statutory employer for purposes of determining their
employees' compensation and benefits, as specified.
4)Establishes the Public Employees' Pension Reform Act of 2013
(PEPRA), which requires, as of January 1, 2013, comprehensive
and statewide reform for the state's public pension systems
and plans and public employers and employees.
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5)Provides, under the provisions of PEPRA, '37 Act retirement
boards with more independence to perform audits and assess
penalties relating to pension spiking.
FISCAL EFFECT: Unknown. This bill is keyed non-fiscal by the
Legislative Counsel.
COMMENTS: According to the author, "There are many benefits to
becoming an independent district, but most applicable to Ventura
County is the ability to recruit and retain specially trained
staff with compensation that's competitive with the private
sector. Further, by allowing the retirement system a degree of
separation from the County, this bill enhances the ability of
the retirement system to implement and enforce the 2012 Public
Employee Pension Reform Act (PEPRA), including enforcement of
the new anti-spiking statutes by making it less uncomfortable to
report spiking. In other words, it better equips them to carry
out their fiduciary responsibility of managing employee
retirement funds."
Supporters state, "PORAC, as well as our member association, the
Ventura County Deputy Sheriffs' Association (VCDSA), supports
the fair and equitable administration of the county retirement
system in accordance with the law. AB 1291 will provide
assurance that the Ventura County Board of Retirement has the
means at its disposal to accomplish that goal."
REGISTERED SUPPORT / OPPOSITION:
AB 1291
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Support
Ventura County Employee Retirement Association (Sponsor)
California Nurses Association
California Professional Firefighters
Ventura County Deputy Sheriffs' Association
Peace Officers Research Association of California
Opposition
None on file
Analysis Prepared by:Karon Green / P.E.,R., & S.S. / (916)
319-3957
AB 1291
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