BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
86 (Nava)
Hearing Date: 7/06/2009 Amended: As Introduced
Consultant: Maureen Ortiz Policy Vote: PE&R 4-1
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BILL SUMMARY: AB 86 authorizes specified airport law
enforcement officers to be reclassified as safety members for
purposes of retirement benefits with CalPERS if the option is
elected by the local agency.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Employer contribution ----moderate increase, subject to local
option--- Local
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STAFF COMMENTS:
The actual costs to local agencies will depend on whether that
agency chooses to reclassify airport law enforcement officers,
and the number of personnel who are reclassified from a
miscellaneous classification, with a 2% at age 55 retirement
benefit formula, to a local safety classification which offers
one of the following formulas, depending on the agency's
contract: 1) 2% at age 55, 2) 3% at age 50, or 3) 3% at age
55. In addition, since prior service of the participating
member is also reclassified, there will be increased costs to
each agency's future liability. However, most patrol officers
at major airports are either working for general police agencies
(and are already classified as safety members), or are employed
by agencies that do not contract with CalPERS. Since safety
members do not participate in the federal social security
program, there will be some savings to employers for no longer
making those contributions.
AB 86 allows local government agencies that contract with
CalPERS for employee retirement benefits to elect to include any
airport patrol officer, airport law enforcement officer, or
airport police officer within the status of "safety member" if
the primary duty of the peace officer is the enforcement of the
law. According to the author, these are specific security
officer personnel who, after September 11, 2001, were required
to take POST training, but have not been reclassified to safety
status for retirement purposes. In addition, these individuals
are already classified as peace officers under Section 830.33 of
the Penal Code. AB 86 will extend that classification to the
retirement law.
Safety members make higher contributions to their retirement
plans and in return, receive enhanced retirement formulas and
industrial death and disability benefits. The basic
requirements for safety status include actively enforcing the
law and being substantially responsible for the protection of
people and property.
Some safety designations are mandated by statute such as local
police officers, firefighters, sheriffs, and investigators for
district attorneys' offices. Others are available by contract
option such as lifeguards, emergency medical technicians, harbor
and port police, police in school districts, and park rangers.
AB 86 will add airport law
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AB 86 (Nava)
enforcement officers to those designations that are available to
local contracting agencies as a contract option.
This bill is identical to AB 376 (Nava) which was vetoed by the
Governor last year due to the 2008-09 State Budget delay.