BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2474
                                                                  Page  1

          Date of Hearing:   May 7, 2014

            ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL  
                                      SECURITY
                                  Rob Bonta, Chair
              AB 2474 (P.E.,R.& S.S. Com.) - As Amended:  April 28, 2014
           
          SUBJECT  :   County employees retirement: benefits.

           SUMMARY  :   Makes various technical corrections and conforming  
          changes that align the County Employees' Retirement Law of 1937  
          ('37 Act) with the provisions of the Public Employees' Pension  
          Reform Act of 2013 (PEPRA), as enacted in AB 340 (Furutani),  
          Chapter 296, Statutes of 2012.  Specifically,  this bill  :  

          1)Clarifies the process for calculating final compensation for  
            members who are on a leave of absence during the three year  
            final compensation period or in the event there is not three  
            years of earned pensionable compensation.

          2)Conforms provisions of the '37 Act governing the loss of  
            member in the retirement system to the PEPRA requirements for  
            benefit forfeiture in the event of a felony conviction.

          3)Clarifies references to employee classifications by  
            designating the position as "safety" or "nonsafety", as  
            contained in PEPRA, rather than referring to multiple safety  
            employee classifications.

          4)Adds the term "pensionable compensation", as defined in PEPRA,  
            to the '37 Act's various death benefit provisions so that  
            benefits may be calculated appropriately.

          5)Adds the term "pensionable compensation", as defined in PEPRA,  
            to the '37 Act's various provisions governing the purchase of  
            service for members who served in the military so that the  
            cost may be calculated appropriately.

           EXISTING LAW  :

          1)Establishes the '37 Act, which provides for retirement systems  
            for county and district employees in those counties adopting  
            its provisions.  Currently 20 counties operate retirement  
            systems under the '37 Act.









                                                                  AB 2474
                                                                  Page  2

          2)Establishes comprehensive public employee pension reform  
            through enactment of PEPRA that apply to all public employers  
            and public pension plans on and after January 1, 2013,  
            excluding the University of California and charter cities and  
            counties that do not participate in a retirement system  
            governed by state statute.

           FISCAL EFFECT  :   Unknown.  This bill is keyed non-fiscal by  
          Legislative Counsel.

           COMMENTS  :   According to the sponsor of the bill, the State  
          Association of County Retirement Systems, this bill will ensure  
          continued implementation of PEPRA as intended by placing the  
          act's requirements in the '37 Act.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          State Association of County Retirement Systems (Sponsor)

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Karon Green / P.E., R. & S.S. / (916)  
          319-3957