BILL ANALYSIS
SENATE PUBLIC EMPLOYMENT & RETIREMENT BILL NO: AB 2711
Nell Soto, Chair Hearing date: June 14, 2004
AB 2711 (Leno) as introduced February 20, 2004
FISCAL: YES
PERS: AUTHORIZE TRANSFER OF ASSETS TO SAN FRANCISCO
RETIREMENT SYSTEM UNDER CERTAIN CIRCUMSTANCES
HISTORY :
Sponsor: Author
Prior legislation: None
ASSEMBLY VOTES :
PER & SS 9-0 3/31/04
Appropriations 19-0 4/14/04
Assembly Floor 76-0 4/22/04
SUMMARY :
Would authorize the Public Employees' Retirement System
(PERS) to enter into an agreement for the transfer of assets
to the City and County of San Francisco retirement, system
under specified circumstances.
BACKGROUND :
The Committee is advised that, in 1996, the San Francisco
Airport Police, who had been members of PERS, were
transferred to the San Francisco Police Department, who are
members of the San Francisco Employees Retirement System
(SFERS).
In 1996, both the San Francisco Police Department and the San
Francisco Airport Police provided the 2% @ age 50 formula
prospectively under SFERS. For retirement purposes, the
members were transferred to SFERS in 1996 for prospective
service only, and their prior service and contributions as
airport police from before 1996 remained in PERS.
Recently, the City and County of San Francisco agreed to
increase the San Francisco police retirement formula to 3% @
David Felderstein
Date: 5/13/04 Page 1
age 55 for all future and prior service. However, the former
San Francisco airport police employees still have their prior
service with PERS at the 2% @ age 50 formula, so their prior
service has not been increased to the higher formula along
with the other officers.
Although San Francisco could contract with PERS to increase
the retirement formula on the prior service of the former
airport police, they would have to increase the formula for
other county peace officers included in their PERS contract,
since the law prohibits an employer from increasing benefits
for a subgroup within a member classification.
David Felderstein
Date: 5/13/04 Page 2
ANALYSIS :
1) Existing PERS law authorizes the PERS Board to enter into
an agreement with the '37 Act county boards of retirement for
the transfer of assets and liabilities from PERS to the '37
Act county retirement system with respect to safety members
who have ceased to be employed by a PERS public agency or the
state, and who have been employed by a '37 Act county, fire
authority, or district as a result of a transfer of
firefighting or law enforcement functions.
2) This bill authorizes the PERS Board to enter into an
agreement with the retirement board of the San Francisco City
and County Employees' Retirement System to facilitate the
transfer of assets and liabilities with respect to safety
members who are now employed by the City and County of San
Francisco as a result of a transfer of firefighting or law
enforcement functions.
FISCAL EFFECT :
No cost other than administrative costs related to the
negotiation and preparation of the transfer agreement.
COMMENTS :
1) SUPPORT :
American Federation of State, County and Municipal
Employees (AFSCME)
CalPERS Board of Administration
2) OPPOSITION :
None to date
David Felderstein
Date: 5/13/04 Page 3
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Date: 5/13/04 Page 4