BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                           2711 (Leno)
          
          Hearing Date:  6/28/04          Amended: As Introduced 
          Consultant:  Maureen Ortiz          Policy Vote: P. E. & R.  
           5-0                     
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          BILL SUMMARY:   AB 2711 authorizes CalPERS to enter into an  
          agreement with the San Francisco City and County Employees'  
          Retirement System for the transfer of specified employees'  
          prior service and accumulated contributions.

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                          Fiscal Impact (in thousands)

           Major Provisions                   2004-05             2005-06   
                      2006-07            Fund

           Transfer of service/assets  -------no net cost, potential  
          savings----       Local
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          STAFF COMMENTS:  Although there appears to be an increase  
          in costs to the employer, San Francisco currently has the  
          authority to amend its contract to increase the retirement  
          formula on the prior service of the former airport police  
          employees, however in doing so, they would have to increase  
          the formula for all other peace officers that are included  
          in their CalPERS contract which would have resulted in a  
          much greater cost.
          
          In 1996, the San Francisco airport police, who had been  
          members of CalPERS, were transferred to the San Francisco  
          Police Department and the San Francisco Employees  
          Retirement System (SFERS).  The members were transferred  
          prospectively, and their prior service and contributions as  
          airport police remained in CalPERS.  At that time, both  
          systems had a retirement formula of 2 percent at age 50.

          Since that time, SFERS has agreed to increase the  
          retirement formula to 3 percent at age 55 for all service,  
          both future and prior.  However, the former airport police  










          employees still have their prior service with CalPERS at  
          the 2 percent at age 50 formula.  AB 2711 will allow  
          CalPERS to transfer the prior service and accumulated  
          contributions to SFERS so that those members will have  
          their prior service calculated at the new 3 percent at age  
          55 formula.
          
          Staff notes that San Francisco could already contract with  
          CalPERS to increase the retirement formula on the prior  
          service of the former airport police employees, however, in  
          doing so they would have to increase the formula for all  
          other peace officers included in their CalPERS contract.