BILL ANALYSIS �
AB 329
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Date of Hearing: March 30, 2011
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL
SECURITY
Warren T. Furutani, Chair
AB 329 (Dickinson) - As Amended: March 16, 2011
SUBJECT : County employees' retirement.
SUMMARY : Implements the retirement provisions of a recently
negotiated bargaining agreement between Sacramento County and
the Sacramento County Deputy Sheriff's Association (SCDSA).
Specifically, this bill :
1)Allows the Sacramento County Board of Supervisors, as part of
an approved memorandum of understanding, to require safety
employees of that bargaining unit first hired after the
approval of the resolution to be covered by the 3% at 55
retirement formula rather than the current 3% at 50 formula.
The Board of Supervisors may also apply this provision to an
unrepresented safety employee first hired after the approval
of the resolution.
2)Allows the Sacramento County Board of Supervisors, by
resolution as specified, to provide different retirement
formulas for new members in one safety bargaining unit or
other new unrepresented safety employees than is provided for
new safety members of other bargaining units or unrepresented
safety members.
EXISTING LAW :
1)Allows public employers and employee representatives to
collectively bargain over wages, including benefits, and
working terms and conditions.
2)Authorizes various safety retirement formulas under the County
Employees' Retirement Law of 1937 ('37 Act). The '37 Act
generally requires all members in the public safety
classification to receive the same retirement benefits. Any
exceptions to this requirement must be authorized in state
law.
FISCAL EFFECT : Unknown.
AB 329
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COMMENTS : According to the sponsor, on August 12, 2010,
Sacramento County's Board of Supervisors unanimously approved a
labor agreement between the County and two of the County's
public safety units: the Sacramento County Deputy Sheriffs'
Association (SCDSA) and the Law Enforcement Management
Association (LEMA). The most significant change establishes a
new lower retirement tier for new public safety members at 3% at
age 55, with a three year highest compensation average and a
Cost of Living Adjustment not to exceed 2% annually. The
current safety retirement tier provides a retirement benefit
formula based upon 3% at age 50. By raising the age for
retirement from 50 to 55, the County states long-term savings
for both the County and the Sheriff's Department will be
achieved.
The sponsor's conclude, "Because our County's agreement applies
to members in two of our five public safety units, AB 329 is
needed so that we are in compliance with state law and can
implement our agreement."
This bill is similar to AB 226 (Torrico) from last year which
was vetoed by the Governor. The Governor's veto was based on
other provisions that were contained in AB 226 that are not
included in this bill. As the Governor noted in his veto
message, "The other provision in this bill permits Sacramento
County to immediately implement a lower retirement tier for
newly hired safety employees, for specified bargaining groups.
I encourage Sacramento County to reach responsible agreements
with their employees, and seek new legislation to implement that
component of the deal."
This bill is also similar to AB 1667 (Swanson), Chapter 81,
Statutes of 2010, which implemented the retirement provisions of
a negotiated bargaining agreement between Alameda County and the
Alameda County Deputy Sheriff's Association. That agreement
eliminated the 3% at 50 formula for all new deputies hired after
April 17, 2010, and instead allowed newly hired deputies to
choose between the basic 2% at 50 formula or a 3% at 55 formula
which requires additional contributions.
REGISTERED SUPPORT / OPPOSITION :
Support
Sacramento County Board of Supervisors (Sponsor)
AB 329
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Sacramento County Sheriff's Department
Sacramento County Deputy Sheriffs' Association
Sacramento County Law Enforcement Managers Association
Opposition
None on file
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957