BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1627|
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                                 THIRD READING


          Bill No:  AB 1627
          Author:   Assembly Budget Committee
          Amended:  10/7/10 in Senate
          Vote:     27 -- Urgency

           
          PRIOR VOTE NOT RELEVANT


           SUBJECT  :    Budget Act of 2010  Public pension system  
          transparency
                      reforms

           SOURCE  :     Author


           DIGEST  :    This bill makes statutory changes necessary to  
          implement public pension system transparency reforms  
          related to the 2010-11 budget.

           Senate Floor Amendments  of 10/7/10 deleted the prior  
          version of the bill expressing the intent of the  
          Legislature to enact statutory changes relating to the  
          Budget Act of 2010 and added the current content relating  
          to public pension system transparency reforms.

           ANALYSIS  :    This bill, in order to increase transparency,  
          require additional analysis and oversight of the Public  
          Employees' Retirement System's (PERS) actuarial  
          assumptions.  More specifically, the bill requires that the  
          PERS Board of Administration, every time it adopts  
          contribution rates, provide an actuarial report, containing  
          investment returns, amortization period, and discount rates  






                                                               AB 1627
                                                                Page  
          2

          using specific analytical guidelines, to the Legislature,  
          the Governor and the Treasurer.  The bill requires the  
          Treasurer to then, within 30 days of receipt of the report,  
          provide an address to both houses of the Legislature about  
          the report.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No


          CPM:cm  10/7/10   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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