BILL ANALYSIS �
SENATE PUBLIC EMPLOYMENT & RETIREMENT BILL NO: AB 2140
Gloria Negrete McLeod, Chair Hearing date: June 25, 2012
AB 2140 (Lara) as introduced 2/23/12 FISCAL: YES
CALIFORNIA HIGHWAY PATROL CADETS: RETIREMENT CONTRIBUTION
RATES
HISTORY :
Sponsor: California Association of Highway Patrolmen
Other legislation: SB 846 (Correa),
Chapter 162, Statutes of 2010
ASSEMBLY VOTES :
PER & SS 5-0 4/26/12
Appropriations 17-0 5/25/12
Assembly Floor 77-0 5/29/12
SUMMARY :
AB 2140 makes technical changes to reflect the actual
agreement between the state and Bargaining Unit (BU) 5
regarding the correct employee contribution rate for
retirement benefits for California Highway Patrol (CHP)
cadets. BU 5 cadets' employee contribution rate, according
to the agreement, should be 7 percent rather than the current
10 percent.
BACKGROUND AND ANALYSIS :
1)Existing Law :
a) pursuant to the current collective bargaining
agreement, Bargaining Unit 5's employee contribution
rates were supposed to increase 2 percent for each
classification. For patrol officers who are state
patrol members, the rate was to increase from 8 percent
to 10 percent. For cadets who are state miscellaneous
members, the rate was supposed to increase from 5
percent to 7 percent. Due to drafting errors in the
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Date: 6/11/12 Page 1
implementing legislation, the contribution rate for the
cadets was increased to 10 percent instead of 7 percent.
b) provides that CHP cadets shall participate in the
California Public Employees' Retirement System (CalPERS)
as state miscellaneous members in BU 5; and provides
that upon successful completion of the CHP Academy and
promotion to patrol officer, they shall become state
patrol members in BU 5.
c) sets employee retirement contribution amounts for all
members of BU 5 at 10 percent of compensation in excess
of $513 per month for members who are in Social
Security, and 11 percent of compensation in excess of
$317 per month towards retirement for members are not in
Social Security. As state miscellaneous members, cadets
are in Social Security. As state patrol members, patrol
officers are not in Social Security.
d) provides that upon becoming patrol officers, the
cadets' state miscellaneous service credit converts to
state patrol service credit if the cadet opts for the
conversion.
1)This bill :
a) resets the employer contribution rate for state
miscellaneous members of BU 5 (i.e., cadets) from 10
percent to 7 percent to reflect the actual agreement
negotiated between the state and BU 5.
COMMENTS :
1)Arguments in Support
According to the author, BU 5 and the Department of Personnel
Administration (DPA) negotiated an agreement that increased
BU 5's employee contribution rate by 2 percent. As
miscellaneous employees, the cadets' retirement contribution
should have increased from 5 percent to 7 percent. However,
the MOU and ratifying legislation, through an oversight,
included the state miscellaneous cadets with the safety
member patrolmen whose contribution increased from 8 percent
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Date: 6/11/12 Page 2
to 10 percent.
The sponsor notes that the State Controller has been taking
out 10 percent from the cadets' salary as if they were sworn
police officers. AB 2140 aims to correct that
misunderstanding by setting the contribution rate for the
cadets at 7 percent until they graduate and are sworn in as
patrolmen.
2)SUPPORT :
California Association of Highway Patrolmen (CAHP), Sponsor
1)OPPOSITION :
None to date
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Date: 6/11/12 Page 3