BILL NUMBER: AB 194	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 20, 2010

INTRODUCED BY    Committee on Budget   (
  Evans (Chair), Arambula, Beall, Blumenfield,
Brownley, Caballero, Carter, De La Torre, Feuer, Hill, Huffman,
Monning, Ruskin, and Swanson   )  
Assembly   Members   Torrico   and Torres

   (   Coauthors:   Assembly Members  
De La Torre   and Gatto   ) 

                        FEBRUARY 2, 2009

    An act relating to the Budget Act of 2009.  
An act to add Section 7503.5 to the Governm   ent Code,
relating to retirement. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 194, as amended,  Committee on Budget  
Torrico  .  Budget Act of 2009.  
Retirement: local employees.  
   The Public Employees' Retirement Law (PERL) creates the Public
Employees' Retirement System (PERS), which provides a defined benefit
to its members based on age at retirement, service credit, and final
compensation, as defined. The State Teachers' Retirement Law (STRL)
and the retirement laws for county employees and city employees also
provide for a defined benefit based on age at retirement, service
credit, and final compensation. Existing law requires the California
Citizens Compensation Commission to establish the annual salary and
the medical, dental, insurance, and other similar benefits of state
officers.  
   This bill would specify that, notwithstanding any other law, for
the purposes of determining a retirement benefit paid to a person who
first becomes a member of a public retirement system on or after
January 1, 2011, the maximum salary or payrate upon which retirement
benefits shall be based shall not exceed 125% of the salary
recommended by the California Citizens Compensation Commission to be
paid to the Governor of the State of California, effective December
7, 2009. The bill would require that this amount be adjusted annually
based on changes in the All Urban California Consumer Price Index.
 
   This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2009. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 7503.5 is added to the 
 Government Code  , to read:  
   7503.5.  Notwithstanding any other law, for the purposes of
determining a retirement benefit paid to a person who first becomes a
member of a public retirement system on or after January 1, 2011,
the maximum salary or payrate upon which retirement benefits shall be
based shall not exceed 125 percent of the salary recommended by the
California Citizens Compensation Commission to be paid to the
Governor of the State of California effective December 7, 2009. This
amount shall be adjusted annually based on changes in the All Urban
California Consumer Price Index.  
  SECTION 1.    It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2009.