BILL ANALYSIS
AB 1667
Page 1
Date of Hearing: May 5, 2010
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL
SECURITY
Alberto Torrico, Chair
AB 1667 (Swanson) - As Amended: April 27, 2010
SUBJECT : Public employment: County of Alameda.
SUMMARY : Implements the retirement provisions of a recently
negotiated bargaining agreement between Alameda County and the
Alameda County Deputy Sheriff's Association (DSA). This
agreement eliminates the current 3% at 50 formula for all new
deputies hired after April 17, 2010, and instead allows newly
hired deputies to choose between the basic 2% at 50 formula or a
3% at 55 formula which requires additional employee
contributions, as specified. Specifically, this bill :
1)Requires deputies and unrepresented safety employees first
hired after April 17, 2010, to make a written election to be
covered under either a 2% at 50 formula or a 3% at 55 formula.
The 3% at 50 formula will no longer be available to new
hires.
2)Specifies that this irrevocable election must be made within
45 calendar days of beginning employment with the county.
3)Specifies that if a new deputy fails to make an election
within the 45 days, the deputy will be deemed to have elected
the 2% at age 50 formula.
4)Allows the Board of Supervisors of the County of Alameda
(Board) to provide a different retirement formula for members
of other safety bargaining units or other unrepresented safety
employees if agreed to in a negotiated memorandum of
understanding. This agreement may require a member to pay all
or part of the required member or employer contributions.
5)Prohibits the Board from requiring that a bargaining unit be
divided solely for the purpose of providing different
retirement benefits. The Board may, however, separately
negotiate retirement benefits with a bargaining unit if the
members of that bargaining unit so elect.
FISCAL EFFECT : Unknown.
AB 1667
Page 2
COMMENTS : According to the author, "Alameda County recognizes
the need to address what has been identified as a looming
statewide problem in need of a timely fix; the future costs
associated with the provision of retirement benefits to public
sector employees. In its effort to avoid negative consequences
or runaway retirement costs, Alameda County has conscientiously
pursued modifications to the retirement benefits for its
respective employee bargaining units. To that end, the County
recently reached agreement with the Deputy Sheriff's Association
that will result in substantial long-term savings to County
taxpayers."
Based on information provided to the Committee, the terms of the
bargaining agreement are as follows:
The DSA contract expired on March 7, 2009. There are four
classes represented by the DSA. They are: Deputy Sheriff
Recruit; Deputy Sheriff I; Deputy Sheriff II; and Sergeant.
There are 1,004 total authorized positions. The County
and DSA began negotiating a successor memorandum of
understanding (MOU) in May 2009. The new MOU was adopted
by the Board on January 26, 2010.
The new six-year contract that expires on March 14, 2015
provides for no salary increases for the contract's first
three year and then incrementally aligns the DSA salaries
with the median of similarly-sized law enforcement agencies
during the final three years. The DSA also agreed to share
in 10% of the health premium costs effective plan year
2010.
Furthermore, the contract will eliminate the current 3% at
50 safety pension arrangement for all new deputies hire
after April 17, 2010, replacing it with the basic 2% at 50
formula. New deputies may opt for a 3% at 55 formula which
will require an additional employee contribution of 5% of
salary annually for five years until vested and 3% of
salary annually thereafter until retirement. Currently,
deputies pay up to 15% of salary towards their pensions.
The DSA agreed to jointly support state legislation
necessary to accomplish this change in the retirement
formula.
REGISTERED SUPPORT / OPPOSITION :
AB 1667
Page 3
Support
County of Alameda (Sponsor)
Deputy Sheriffs' Association of Alameda County
Opposition
None on file
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957