BILL ANALYSIS Ó
AB 1291
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB
1291 (Williams)
As Amended May 27, 2015
Majority vote
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|ASSEMBLY: |77-0 |(May 11, 2015) |SENATE: |38-0 |(July 6, 2015) |
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Original Committee Reference: P.E., R., & S.S.
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 a retirement administrator, chief
financial officer, chief operations officer, chief investment
officer, and general counsel who will be employees of the
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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 personnel appointed by the System who had
previously been in county service continue to be members of
the retirement system without interruption in service or loss
of credit and that any new employees of the district become
members of the system on the first day of the calendar month
following entrance into service.
4)Provides that the compensation for these appointed employees
will be treated as an expense of the administration of the
retirement system, as specified.
The Senate amendments revise the list of positions the System is
authorized to appoint and provide that personnel appointed by
the System who had previously been in county service continue to
be members of the retirement system without interruption in
service or loss of credit.
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
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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.
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.
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Analysis Prepared by: Karon Green / P.E., R., & S.S. / (916)
319-3957 FN:
0000924