BILL ANALYSIS Ó
SENATE COMMITTEE ON
PUBLIC EMPLOYMENT AND RETIREMENT
Dr. Richard Pan, Chair
2015 - 2016 Regular
Bill No: AB 1692 Hearing Date: 6/13/16
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|Author: |Bonilla |
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|Version: |1/21/16 As introduced |
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|Urgency: |No |Fiscal: |No |
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|Consultant:|Pamela Schneider |
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Subject: County employees' retirement: Contra Costa County
SOURCE: Contra Costa County Board of Supervisors
ASSEMBLY VOTES:
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|Assembly Floor: |78 - 0 |
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|Assembly Public Employees, |7 - 0 |
|Retirement/Soc Sec Committee: | |
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DIGEST: This bill allows the Contra Costa County Board of
Supervisors to make the terms and conditions of disability
retirement allowances currently available to Tier Three members
of the Contra Costa County Employees' Retirement Association
(CCCERA) applicable to non-safety members subject to the
retirement benefit formula specified in the Public Employees'
Pension Reform Act of 2013 (PEPRA).
ANALYSIS:
Existing law:
1)Establishes comprehensive public employee pension reform
through enactment of PEPRA (and related statutory changes)
AB 1692 (Bonilla) Page 2 of ?
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, in PEPRA, a statewide retirement formula for all
non-safety public employees first hired on and after January
1, 2013.
3)Establishes the1937 Act County Employees' Retirement Law ('37
Act), which governs independent county retirement systems for
county and district employees in those counties adopting its
provisions. Currently 20 counties, including Contra Costa
County, operate retirement systems under the '37 Act.
4)Authorizes the Contra Costa County Board of Supervisors to
implement a Tier Three retirement plan applicable to
non-safety members of CCCERA, as specified.
5)Sets the terms and conditions of disability retirement
allowances for Tier Three members of CCCERA who are
permanently disabled due to either a work-related illness or
injury after any number of years of service, or any illness or
injury after 10 years of service with Contra Costa County.
AB 1692 (Bonilla) Page 3 of ?
6)Establishes a disability retirement allowance for Tier Three
members equal to 40% of final compensation, with additional
percentages for dependent children, as specified.
This bill:
1)Allows the Contra Costa Board of Supervisors to adopt an
ordinance making the Tier Three disability retirement benefit
applicable to non-safety Contra Costa County employees who are
subject to PEPRA.
2)Specifies that the retiree cost-of-living adjustments payable
to disabled Tier Three retirees shall also apply to disabled
non-safety retirees subject to PEPRA.
Background
With regard to PEPRA, while it made significant changes to
retirement formulas and final compensation rules, death and
disability benefits were intentionally unaffected.
According to the Contra Costa Board of Supervisors:
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 agreed that the disability standard and
disability retirement benefit applicable to Tier Three applies
to new hires who enter the County's and dependent special
AB 1692 (Bonilla) Page 4 of ?
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."
Related/Prior Legislation
AB 340 (Furutani, Chapter 296, Statutes of 2012) enacted PEPRA,
which established statewide pension reform for all public
employees fist hired on an after January 1, 2013 except those
employed in the University of California and charter cities and
counties not participating in a retirement system governed by
statute.
FISCAL EFFECT: Appropriation: No Fiscal
Com.: No Local: No
SUPPORT:
Contra Costa County Board of Supervisors (source)
California Nurses Association
Contra Costa County Defender Association
Contra Costa County Deputy Sheriffs' Association
Contra Costa County District Attorneys' Association
Professional & Technical Engineers, Local 21, IFPTE, AFL-CIO
Public Employees Union, Local 1
Service Employees International Union, Local 1021
United Professional Firefighters Contra Costa County, I.A.F.F.,
Local 1230
Western Council of Engineers
OPPOSITION:
None received
ARGUMENTS IN SUPPORT:
According to the sponsor, AB 1692 will ensure that current
Contra Costa County non-safety employees, dependent special
district non-safety employees, and new hires subject to the
PEPRA non-safety formula will all continue to receive the same
disability retirement benefit.
AB 1692 (Bonilla) Page 5 of ?