BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 871|
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UNFINISHED BUSINESS
Bill No: SB 871
Author: Senate Budget and Fiscal Review Committee
Amended: 10/7/10
Vote: 27 - Urgency
PRIOR VOTES NOT RELEVANT
ASSEMBLY FLOOR : Not available
SUBJECT : Budget Act of 2010
SOURCE : Author
DIGEST : Assembly Amendments delete the Senate version of
the bill which expressed the intent of the Legislature to
enact statutory changes relating to the Budget Act of 2010,
and add the current content relating to pension reform.
This bill now makes the statutory changes necessary to
implement the pension reform portions of the 2010-11
budget.
ANALYSIS : This bill enacts the 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 wit 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
SB 871
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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
SB 871
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CPM:cm 10/7/10 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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