BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 1494|
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UNFINISHED BUSINESS
Bill No: SB 1494
Author: DeSaulnier (D)
Amended: 6/21/12
Vote: 21
SENATE PUBLIC EMPLOYMENT & RETIREMENT COM .: 5-0, 5/7/12
AYES: Negrete McLeod, Walters, Gaines, Padilla, Vargas
SENATE FLOOR : 37-0, 5/14/12
AYES: Alquist, Anderson, Berryhill, Blakeslee, Calderon,
Cannella, Corbett, Correa, De Le�n, DeSaulnier, Dutton,
Emmerson, Evans, Fuller, Gaines, Hancock, Harman,
Hernandez, Huff, Kehoe, La Malfa, Leno, Lieu, Liu,
Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Rubio,
Simitian, Steinberg, Vargas, Walters, Wolk, Wright, Yee
NO VOTE RECORDED: Runner, Strickland, Wyland
ASSEMBLY FLOOR : 78-0, 8/20/12 - See last page for vote
SUBJECT : County employees retirement: Contra Costa
County
SOURCE : Contra Costa County Board of Supervisors
DIGEST : This bill provides for implementation of the
negotiated agreement between Contra Costa County and county
employees to create lower benefit tiers for new employees.
Assembly Amendments make clarifying changes.
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ANALYSIS : Existing law:
1.Establishes the 1937 Act County Retirement Law, which
covers 20 independent county retirement systems,
including the Contra Costa County Employees Retirement
Association (CCCERA).
2.Requires a public employer and official employee
representative to collectively bargain over wages,
working conditions, and other terms and conditions of
employment.
3.Establishes various retirement formulas that public
employers may choose from, and subject to collective
bargaining, provide for employees.
4.Generally requires that when pension benefits are
reduced, the reduced benefits apply only to employees
hired on or after the date the reduced benefits become
applicable.
5.Requires an employer to provide disability benefits for
employees who become disabled while working.
6.Requires an employer to pay cost-of-living adjustments to
retirees.
7.Establishes a defined benefit retirement plan in Contra
Costa County that provides a retirement benefit based on
a percentage of the individual's final compensation,
which is determined by multiplying the number of years of
service by the individual's retirement age factor and
final compensation.
This bill:
1.Allows Contra Costa County, subject to collective
bargaining, to approve a resolution to establish lower
retirement tiers for employees first hired on or after
January, 1, 2013.
2.Allows a district that participates in CCCERA to also
approve the lower tiers, subject to collective
bargaining, for new hires on and after January 1, 2013.
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3.Creates two formulas for the new tiers: a two percent at
age 60 formula for non-safety workers, called Tier Four,
and a three percent at age 55 formula for safety workers,
called Tier D.
4.Requires annual two percent cost-of-living adjustments
for retirees subject to the new formulas, and disability
benefits that are that same as for existing employees
(i.e., employees hired prior to January 1, 2013).
5.Requires that employees in the new tiers be subject to a
three-year final compensation calculation based on either
the three years preceding retirement or any consecutive
three years elected by the member.
6.Requires that if the employee has less than three years
of service in the plan, his or her retirement benefit
shall be determined by dividing the total compensation by
the number of months of service and then multiplying by
12.
7.Identifies the collective bargaining units and their
official representatives that may be subject to the new
tiers.
8.Limits retirement the allowance for an employee subject
to Tier Four and Tier D to no more than 90 percent of the
employee's final compensation amount.
9.Requires that the new Tier Four and Tier D benefit plans
also apply to non-represented employees in related
classification who are first hired on and after January
1, 2013.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 8/16/12)
Contra Costa County Board of Supervisors (source)
AFSCME, Locals 512 and 2700
Contra Costa County Deputy Sheriffs Association
Contra Costa County District Attorney's Investigation
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Association
Probation Peace Officers Association of Contra Costa County
Public Employees Union, Local One
Western Council of Engineers
ARGUMENTS IN SUPPORT : According to the author:
Contra Costa County officials are presently in
negotiations with several of its employee bargaining
units regarding the creation of new pension tiers.
However, because of conditions set forth within the
County Employees Retirement Act of 1937, the County
cannot amend the pension tiers without legislative
approval.
By permitting the County to meet with its various
employee bargaining units at the negotiating table to
adjust the pension tiers, SB 1494 will afford the
County the opportunity to create a local pension
system that saves money for County taxpayers and helps
its pension system stay sustainable for its employees.
According to the Contra Costa County Board of Supervisors:
By negotiating these retirement plans at the
bargaining table, Contra Costa County achieves local
pension reform that saves money for county taxpayers
and helps the pension system, the Contra Costa County
Employees Retirement Association (CCCERA), stay
sustainable for retirees. Legislation is required to
amend the County Employees Retirement Law of 1937 to
enact these changes.
ASSEMBLY FLOOR : 78-0, 8/20/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Beth
Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell, Grove,
Hagman, Halderman, Hall, Harkey, Hayashi, Hill, Huber,
Hueso, Huffman, Jeffries, Jones, Knight, Lara, Logue,
Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell,
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Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan,
Perea, V. Manuel P�rez, Portantino, Silva, Skinner,
Smyth, Solorio, Swanson, Torres, Valadao, Wagner,
Wieckowski, Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Furutani, Roger Hern�ndez
DLW:n 8/21/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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