BILL ANALYSIS
SENATE PUBLIC EMPLOYMENT & RETIREMENT BILL NO: AB 1406
Lou Correa, Chair Hearing date: June 22, 2009
AB 1406 (Emmerson) as amended 5/07/09 FISCAL: NO
'37 ACT: SAN BERNARDINO COUNTY: HIRING SPECIFIED EMPLOYEES
OUTSIDE OF CIVIL SERVICE RULES
HISTORY :
Sponsor: San Bernardino County Board of Supervisors
Prior legislation: AB 2666 (Plescia) 2008
Died on the Senate Floor Inactive File
ASSEMBLY VOTES :
PER & SS 6-0 5/06/09
Assembly Floor 77-1 5/26/09
SUMMARY :
Would expand the current authority provided to the board of
retirement of San Bernardino County to appoint specified
personnel outside the civil service system to include
additional positions and classifications under the County
Employees' Retirement Law of 1937 ('37 Act).
BACKGROUND AND ANALYSIS :
1) Existing '37 Act law authorizes the board of retirement
of San Bernardino County, which operate retirement systems
under the '37 Act, upon adoption by the board of retirement,
to appoint, outside of the county civil service process, the
following positions:
a) an administrator,
b) an assistant administrator,
c) a chief investment officer,
David Felderstein
Date: 6/11/09 Page 1
d) subordinate administrators, and senior management
employees next in line of authority to subordinate
administrators, and
e) legal counsel.
These employees are classified as "at will" employees are
considered employees of the retirement system, not the
county, and are subject to the terms and conditions of
employment established by the retirement board.
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Date: 6/11/09 Page 2
2) This bill allows the board of retirement of San
Bernardino County, which operates '37 Act retirement systems,
to appoint, outside the county civil service system,
supervisors and employees who have specialized training and
knowledge in the following areas:
a) pension and benefit member services,
b) investment reporting compliance,
c) investment accounting,
d) pension benefit tax reporting,
e) pension benefit financial accounting, and
f) pension law.
FISCAL EFFECT :
Unknown.
COMMENTS :
1) Arguments in support
According to the author:
"AB 1406 would allow both the Board of Retirement of the
San Bernardino County Employees' Retirement Association
(SBCERA) to directly hire supervisors and employees with
specialized training and knowledge, instead of having to
hire these employees within the civil service system. This
bill would allow both counties to better recruit qualified
employees for these positions in a more timely manner.
Current law allows SBCERA to hire their own administrator,
management employees, investment officers and legal counsel
rather than having to hire from the list of applicants
available under the civil service process. However,
existing law does not include this quick and efficient
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Date: 6/11/09 Page 3
hiring process for the supervisors and employees with
specialized training and knowledge who serve the tens of
thousands of active and retired members and their
beneficiaries. Unfortunately, the county Board of
Retirement is experiencing a high turnover rate with its
supervisors and employees with specialized training and
knowledge. These employees obtain training and expertise
at the expense of the Board of Retirement and then leave to
take a better paying position with the counties. The
continuous instability for these positions is hurting the
overall service levels that SBCERA is able to provide to
its members and beneficiaries."
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Date: 6/11/09 Page 4
Supporters state:
"In these economically challenging time, SBCERA has been
able to maintain a superior level of service to our members
due to extensive training of specialized employees. AB
1406 offers these employees the opportunity to remain with
SBCERA as SBCERA employees rather than County employees and
maximize their professional training to the benefit of our
members."
2) Similar bill for San Diego County died last year
This bill is similar to AB 2666 (Plescia) of 2008, which
would have authorized the San Diego County board of
retirement to adopt provisions classifying personnel
appointed to administer the retirement system as employees of
the retirement system instead of county employees. These
employees would have been subject to the terms and conditions
of employment established by the board of retirement. This
bill died on the Senate inactive file.
3) SUPPORT :
San Bernardino Public Employees Association (SBCERA)
4) OPPOSITION :
None to date
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Date: 6/11/09 Page 5
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Date: 6/11/09 Page 6