BILL ANALYSIS �
SENATE PUBLIC EMPLOYMENT & RETIREMENT BILL NO: AB 329
Gloria Negrete McLeod, Chair Hearing date: May 9, 2011
AB 329 (Dickinson) as amended 3/16/11 FISCAL: NO
COUNTY OF SACRAMENTO: LOWER RETIREMENT TIER FOR NEW HIRES
HISTORY :
Sponsor: Sacramento County Board of Supervisors
Prior legislation: AB 226 (Torrico)
Vetoed, 2010
AB 1667 (Swanson)
Chapter 81, Statutes of 2010
ASSEMBLY VOTES :
PER & SS 6-0 3/30/11
Assembly Floor 73-0 4/04/11
SUMMARY :
AB 329 would allow implementation of the memorandum of
understanding (MOU) between Sacramento County and the
Sacramento County Deputy Sheriffs' Association (SCDSA), which
represents approximately 1,150 safety employees, and the
Sacramento County Law Enforcement Managers' Association
(LEMA), which represents approximately 94 safety employees.
This is an URGENCY BILL .
BACKGROUND AND ANALYSIS :
1)Existing law :
a) allows public employers and employee representatives
to collectively bargain over wages, including benefits,
and working terms and conditions;
b) creates the 1937 Act County Retirement Law (CERL),
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which governs 20 independent county retirement
associations, including the Sacramento County Retirement
Association, which is the retirement system for
Sacramento County employees;
c) authorizes various safety retirement formulas in
CERL, including the 3% at age 50 safety retirement
formula, which is the retirement formula for
currently-employed deputy sheriff members of the SCDSA
and the LEMA, and
d) requires that all employee groups of a single
employer (such as Sacramento County) who are in the same
retirement classification (such as public safety)
receive the same retirement formula unless an exception
is made in the law.
2) This bill :
a) allows the Sacramento County Board of Supervisors to
adopt a resolution, by majority vote, to implement a
memorandum of understanding mutually agreed upon with a
bargaining unit representing public safety officers that
would do the following;
1) require new safety employees-first hired after
approval of the resolutions-to be subject to a retirement
formula based on 3% at age 55 (current employees are
subject to the 3% at age 50 formula).
2) use the 3-year highest years compensation average to
calculate retirements and provide retiree cost-of-living
adjustments of up to a 2% annually.
b) clarifies that the employees covered by this statute
include both newly hired represented and newly hired
nonrepresented employees;
b) provides that the resolution could provide a
different formula or retirement calculation for new
safety members in one bargaining unit than what is
provided to safety members in other bargaining units,
and
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c) states that this is an URGENCY BILL .
COMMENTS :
1) Reason for Governor's Veto in 2010
This bill is similar to AB 226 (Torrico) from 2010, which was
vetoed by the Governor. The Governor's veto was based on
certain provisions contained in AB 226 that are not included
in this bill. In his veto message, the Governor stated:
"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."
2) Arguments in Support :
According to the author,
On August 12, 2010, the Sacramento County Board of
Supervisors unanimously approved a labor agreement among
the County, SCDSA, and LEMA to establish a new lower
retirement tier for new public safety members. Instead
of using the current retirement benefits calculation of
3% at age 50, the retirement benefit for new public
safety employees will be calculated at 3% at age 55.
This new tier raises the age for retirement from 50 to
55, thereby achieving long-term savings for the County
and for the Sheriff's Department. Legislation is needed
to ratify this agreement.
As stated by the sponsor, Sacramento County, the MOU was
agreed to between the county, SCDSA, and LEMA in August
of 2010, but that agreement cannot be implemented until
the authorizing legislation is enacted. "Under the 1937
Retirement Act Law, all public safety members must
receive the same retirement benefits. Because the
County's agreement applies to members in two of our six
public safety units, AB 329 is needed so that we are in
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compliance with state law and can implement our
agreement."
3) SUPPORT :
Sacramento County Board of Supervisors, Sponsor
Sacramento County Alliance of Law Enforcement (SCALE)
Sacramento County Deputy Sheriffs' Association (SCDSA)
Sacramento County Law Enforcement Managers' Association
(LEMA)
4) OPPOSITION :
None to date
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