BILL ANALYSIS Ó
AB 1291
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ASSEMBLY THIRD READING
AB
1291 (Williams)
As Introduced February 27, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
|----------------+------+---------------------+----------------------|
|Public |7-0 |Bonta, Waldron, | |
|Employees | |Cooley, | |
| | |Jones-Sawyer, | |
| | |O'Donnell, Rendon, | |
| | |Wagner | |
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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
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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.
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."
There is no opposition on file.
Analysis Prepared by:
Karon Green / P.E.,R., & S.S. / (916) 319-3957
FN: 0000292
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