BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1631|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
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|327-4478 | |
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THIRD READING
Bill No: AB 1631
Author: Garrick (R)
Amended: 10/7/10 in Senate
Vote: 27 - Urgency
PRIOR VOTES NOT RELEVANT
SUBJECT : Budget Act of 2010 Pension Reform
SOURCE : Author
DIGEST : This bill makes the statutory changes necessary
to implement the pension reform portions of the 2010-11
budget.
Senate Floor Amendments of 10/6/10 delete the prior version
of the bill expressing the intent of the Legislature to
enact statutory changes relating to the Budget Act of 2010
and add the current content relating to the implementation
of pension reform.
ANALYSIS : This bill enacts pension reforms for all new
state employees hired on or after November 10, 2010,
including those employees in bargaining units that do not
currently have a Memorandum of Understanding with the
state, and employees of the California State University,
the judicial branch of government, the Legislature, and
classified school employees. These changes do not apply to
current state employees.
CONTINUED
AB 1631
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This bill adopts pension benefit levels that existed before
SB 400 (Ortiz), Chapter 555, Statutes of 1999, for these
various classifications of state employees and apply these
reduced benefit levels only to new state employees hired on
or after November 10, 2010. The chart below details how
the benefit levels will change for various employee
classifications:
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|Retirement |Current Retirement |Proposed Formulas |
|Category |Formulas | |
|-------------------+-------------------+---------------------|
|Miscellaneous |2% at Age 55 |2% at Age 60 |
| |(up to 2.5% at 63) |(up to 2.418% at age |
| | |63) |
| | | |
|-------------------+-------------------+---------------------|
|Industrial |2% at Age 55 |2% at Age 60 |
| |(up to 2.5% at 63) |(up to 2.418% at age |
| | |63) |
| | | |
|-------------------+-------------------+---------------------|
|State Safety |2.5% at Age 55 |2% at Age 55 |
| | | |
|-------------------+-------------------+---------------------|
|Peace Officer and |3% at Age 50 |2.5% at Age 55 |
|Firefighters in | | |
|CSU, Legislative, | | |
|and Judicial | | |
|-------------------+-------------------+---------------------|
|Classified School |2% at Age 55 |2% at Age 60 |
| |(up to 2.5% at 63) |(up to 2.418% at age |
| | |63) |
| | | |
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In addition, the bill requires a three-year final
compensation formula to calculate retirement final benefits
for new state employees, hired on or after November 10,
2010.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
AB 1631
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CPM:cm 10/7/10 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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