BILL ANALYSIS Ó
AB 1692
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Date of Hearing: May 4, 2016
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT, AND SOCIAL
SECURITY
Rob Bonta, Chair
AB 1692
(Bonilla) - As Introduced January 21, 2016
SUBJECT: County employees' retirement: Contra Costa County
SUMMARY: Allows the Contra Costa County Board of Supervisor
(Board) to make the terms and conditions of disability
retirement allowances currently available to Tier Three members
applicable to non-safety members subject to the retirement
formula specified in the Public Employees' Pension Reform Act of
2013 (PEPRA).
EXISTING LAW:
1)Establishes comprehensive public employee pension reform
through enactment of PEPRA (and related statutory changes)
that apply to all public employers and public pension plans on
and after January 1, 2013, excluding the University of
California and charter cities and counties that do not
participate in a retirement system governed by state statute.
2)Establishes the '37 Act, which provides for retirement systems
for county and district employees in those counties adopting
its provisions. Currently 20 counties operate retirement
systems under the '37 Act.
AB 1692
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3)Authorizes the Board to make a Tier Three retirement plan
applicable to non-safety members and other employees, as
specified.
4)Sets for the terms and conditions of disability retirement
allowances for Tier Three members.
FISCAL EFFECT: Unknown. This bill is keyed non-fiscal by the
Legislative Counsel.
COMMENTS: According to the sponsor, the Contra Costa Board of
Supervisors, "AB 1692 will ensure that both current Contra Costa
County and dependent special district non-safety employees and
new hires continue to receive the same disability retirement
benefit. Over thirty years ago, Contra Costa-specific
legislation was passed to establish a disability retirement
benefit for Contra Costa County's Retirement Tier Two (1.13%@55)
for non-safety employees. Tier Two was closed to new members in
2002. In 1998, County-specific legislation was passed to
establish a new Contra Costa County Retirement Tier Three
(2%@55) for non-safety employees. Tier Three expressly
incorporated the same disability retirement benefit applicable
to Tier Two employees. This thirty year-old, County-specific,
disability retirement benefit continues to apply to current
County employees in Tier Three and to new hires with
reciprocity. The Public Employees' Pension Reform Act of 2013
(PEPRA) does not address disability retirement benefits."
The sponsor concludes, "The County and its recognized employee
organization have all agree that the disability standard and
disability retirement benefit applicable to Tier Three applies
AB 1692
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to new hires who enter the County's and dependent special
districts' PEPRA non-safety tier. The County and its recognized
employee organizations have agreed to jointly seek
County-specific legislation to clarify that the current Tier
Three disability provisions apply to the PEPRA non-safety tier."
REGISTERED SUPPORT / OPPOSITION:
Support
California Nurses Association
Contra Costa County Board of Supervisors
Contra Costa County Defender Association
Contra Costa County Deputy Sheriffs' Association
Contra Costa County District Attorneys' Association
Professional & Technical Engineers, Local 21
Public Employees Union, Local 1
SEIU Local 1021 Service Line Supervisors
AB 1692
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United Professional Firefighters of Contra Costa County I.A.F.F.
Local 1230
Western Council of Engineers
Opposition
None on file
Analysis Prepared by:Karon Green / P.E.,R., & S.S. / (916)
319-3957