BILL ANALYSIS
SB 752
Page 1
Date of Hearing: July 8, 2009
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL
SECURITY
Ed Hernandez, Chair
SB 752 (Wiggins) - As Amended: May 28, 2009
SENATE VOTE : 39-0
SUBJECT : Public employees' retirement: Solano County.
SUMMARY : Establishes certain requirements that must be met
before a county that, with a superior court, jointly contracts
with the California Public Employees' Retirement System
(CalPERS) for the provision of retirement benefits may issue a
pension obligation bond.
EXISTING LAW requires that in the case of a trial court located
within a county contracting with CalPERS for retirement
benefits, the trial court and the county must participate under
a joint contract with CalPERS, resulting in pooled assets and
liabilities and a single employer contribution rate.
FISCAL EFFECT : Unknown.
COMMENTS : According to the sponsor, "The Courts and the County
are now two separate entities governed by two separate and
independent governing bodies. The County and the Courts both
need the ability to track their separate assets and liabilities,
and the separate retirement rates to reflect the obligation for
the employees."
PROPOSED AMENDMENTS : Amendments will be adopted in Committee
that change the author of the bill from Senator Wiggins to
Senator Correa, delete the current contents of the bill, and
instead add language to implement a recently negotiated
bargaining agreement between Orange County and the Orange County
Employees' Association (OCEA). This agreement implements a
second tier option for new non-safety employees and gives
incumbent non-safety employees a one-time election to enter the
new lower tier, for prospective service only. Specifically, the
amendments do the following:
1)For employees first hired after the adoption of a resolution
by the board of supervisors, or the governing body of a
SB 752
Page 2
district within the county, authorizing this option:
a) Requires employees to make a written election between
two specified pension calculations - the current 2.7% at
age 55 formula or the newly offered 1.62% at age 65 formula
which also includes a Defined Contribution (DC) component.
b) Specifies that this irrevocable election must be made
within 45 calendar days of beginning employment with the
county.
c) Specifies that if a new employee fails to make an
election within the 45 days, the employee will be deemed to
have elected the 1.62% at age 65 formula.
2)For current employees in the 2.7% at age 55 formula:
a) Allows, within 180 calendar days of approval of the
resolution, employees to make a one-time written election
to have all future service calculated under the 1.62% at
age 65 formula.
b) Requires employees electing the 1.62% at age 65 formula
to sign an affidavit stating they fully understand the
impact of terminating the 2.7% at age 55 formula and that
the election is irrevocable.
3)For current employees who move into a position covered by the
2.7% at age 55 formula after adoption of the resolution:
a) Requires employees to make a one-time written election
between the two formulas - the 2.7% at age 55 formula or
the 1.62% at age 65 formula - within 45 calendar days of
becoming eligible for the 2.7% at age 55 formula.
b) Requires employees electing the 1.62% at age 65 formula
to sign an affidavit stating they fully understand the
impact of terminating the 2.7% at age 55 formula and that
the election is irrevocable.
c) Specifies that failure to make an election within 45
calendar days will be cause for termination of employment.
4)Requires any current county employee electing the 1.62% at age
65 formula to include the signature of the designated
SB 752
Page 3
beneficiary of the employee's pension acknowledging the
election or to include a written declaration, signed under
penalty of perjury, that one of the following is applicable:
a) The beneficiary has no identifiable community property
interest in the benefit;
b) The employee does not know the whereabouts of the
beneficiary;
c) The beneficiary has refused to sign the written
acknowledgement; or,
d) The beneficiary is incapacitated due to a mental or
physical condition.
5)Allows employees electing the 1.62% at age 65 formula to
receive a contribution from the county or district to a DC
plan.
6)Specifies that these provisions do not apply to safety
members.
REGISTERED SUPPORT / OPPOSITION (on bill as proposed to be
amended) :
Support
Orange County Employees' Association (Co-Sponsor)
Orange County Board of Supervisors (Co-Sponsor)
Opposition
None on file
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957