BILL ANALYSIS �
AB 1212
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Date of Hearing: May 4, 2011
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL
SECURITY
Warren T. Furutani, Chair
AB 1212 (Mansoor) - As Introduced: February 18, 2011
SUBJECT : County employees' retirement.
SUMMARY : Allows an employer in counties operating retirement
systems under the County Employees' Retirement Law of 1937 ('37
Act) to provide different retirement benefit formulas for new
employees by ordinance, contract, or contract amendment adopted
by majority vote pursuant to the Meyers-Milias-Brown Act (MMBA)
and specifies that the retirement ordinance, contract, or
contract amendment cannot be imposed by the employer absent an
agreed to collective bargaining agreement.
EXISTING LAW :
1)Provides a variety of retirement formulas that may be adopted
by the 20 counties operating retirement systems under the '37
Act.
2)Prohibits a county from providing retirement benefit to some,
but not all members of a member classification (in the '37 Act
law, members are classified as general members or safety
members) unless benefits provided by statute for member hired
on or after the date specified in a resolution are adopted by
the county or district governing board pursuant to a
memorandum of understanding (MOU) made under the MMBA.
3)Prohibits any retirement contract amendment from being imposed
by the employer absent a MOU made under the MMBA.
FISCAL EFFECT : Unknown.
COMMENTS : According to the author, "Under existing law,
employees of the South Coast Air Quality Management District are
part of the San Bernardino County Employees' Retirement
Association (SBCERA) which is governed by the '37 Act. The law
currently requires that retirement benefit formulas be adopted
by the County Board of Supervisors. In addition, the law
provides that second tier retirement benefit formulas may be
applied to all new hires after a certain date, but are not
AB 1212
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allowed for different subgroups of members within a membership
classification. All South Coast Air Quality Management District
employees are general members of SBCERA, and consequently,
different retirement benefit formulas may not be applied to new
hires, or other subgroups, of the South Coast Air Quality
Management District.
"In the near future pension costs are expected to seriously
impact the budgets of state and local agencies. For the South
Coast Air Quality Management District, it is estimated that its
pension obligation costs will increase to fifteen to twenty
percent per year for the next several years. Unfortunately,
existing law precludes the District from considering certain
cost containment measures that other state and local agencies
were able to negotiate with their employees.
"This bill amends current law to allow the District to provide
different retirement benefit formulas for new employees, upon
adoption by a majority vote of the District's governing board,
pursuant to a MOU under the MMBA. This will allow the district
to better manage retirement benefits, and associated costs,
offered to the District's employees."
AB 1587 (Public Employees, Retirement and Social Security
Committee), Chapter 852, Statutes of 2003, prohibited the
adoption of any retirement benefits for some, but not all,
general members of a county or district.
AB 1255 (Parra), Chapter 86, Statutes of 2007, allowed the Board
of Supervisors in Fresno County to provide a particular two
percent at age 55 formula to members first hired by the county
on or after the effective date of the bill and to members of
Service Employees International Union (SEIU) Local 521, as
specified.
REGISTERED SUPPORT / OPPOSITION :
Support
South Coast Air Quality Management District (Sponsor)
Opposition
None on file
AB 1212
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Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957