BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2711
                                                                  Page  1

          Date of Hearing:   March 31, 2004

            ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL  
                                      SECURITY
                            Gloria Negrete McLeod, Chair
                  AB 2711 (Leno) - As Introduced:  February 20, 2004
           
          SUBJECT :  Public employees' retirement system: transfer  
          agreements.

           SUMMARY  :  Authorizes the Public Employees' Retirement System  
          (PERS) to enter into an agreement for the transfer assets for  
          certain local employees.  Specifically,  this bill  :  

          Authorizes the Board of Administration of the Public Employees'  
          Retirement System to enter into an agreement with the retirement  
          board of the San Francisco City and County Employees' Retirement  
          System.  The agreement would facilitate the transfer of assets  
          and liabilities with respect to safety members who are now  
          employed by the city and county or the local fire authority or  
          district as a result of a transfer of firefighting or law  
          enforcement functions. 

           EXISTING LAW:   Authorizes the Board of Administration of the  
          Public Employees' Retirement System to enter into an agreement  
          with the board of retirement of specified county retirement  
          systems subject to the County Employees Retirement Law of 1937  
          for the transfer of assets and liabilities from the Public  
          Employees' Retirement System to the county retirement system  
          with respect to safety members who have ceased to be employed by  
          a public agency or the state and who have been employed by a  
          county, fire authority, or district as a result of a transfer of  
          firefighting or law enforcement functions.

           FISCAL EFFECT  :  Administrative costs related to the negotiation  
          and preparation of the transfer agreement.

           COMMENTS  :  

           Arguments in Support
           According to the Author the San Francisco Airport Police were  
          recently absorbed into the City of San Francisco Police  
          Department.  Prior to this, the Airport Police were in CalPERS  
          and had a 2% at age 50 retirement formula.  Now as part of the  
          San Francisco Police, they will have an increased retirement  








                                                                  AB 2711
                                                                  Page  2

          benefit of 3% at age 55.  However, prior service will still be  
          calculated at the old formula.  This measure will allow the City  
          to request CalPERS to transfer the prior service in CalPERS over  
          to the City's retirement system.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Clem Meredith / P.E., R. & S.S. / (916)  
          319-3957