BILL NUMBER: AB 194	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 27, 2010
	AMENDED IN SENATE  AUGUST 20, 2010

INTRODUCED BY   Assembly Members Torrico and Torres
   (Coauthors: Assembly Members De La Torre and Gatto)

                        FEBRUARY 2, 2009

   An act to add Section 7503.5 to the Government Code, relating to
retirement , and declaring the urgency thereof, to take effect
immediately  .



	LEGISLATIVE COUNSEL'S DIGEST


   AB 194, as amended, Torrico. 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 declare that it is to take effect immediately as
an urgency statute. 
   Vote:  majority   2/3  . Appropriation:
no. Fiscal committee: 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.
   SEC. 2.    This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
 
   In order to preserve the fiscal integrity and increase the
stability of public retirement systems at the earliest possible time,
it is necessary that this measure take effect immediately.