BILL ANALYSIS �
SENATE PUBLIC EMPLOYMENT & RETIREMENT BILL NO: AB 2474
Norma Torres, Chair HEARING DATE: June 9, 2014
AB 2474 (Asm. PER&SS Comm) as amended 4/28/14
FISCAL: NO
COUNTY EMPLOYEES RETIREMENT LAW OF 1937: CONFORMITY WITH
PUBLIC EMPLOYEES' PENSION REFORM ACT OF 2013
HISTORY :
Sponsor: State Association of County Retirement Systems
(SACRS)
Other legislation: AB 340 (Furutani),
Chapter 296, Statutes of 2012
ASSEMBLY VOTES :
PER & SS 5-0 5/07/14
Assembly Floor 78-0 5/15/14
SUMMARY :
AB 2474 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).
BACKGROUND AND ANALYSIS :
1)Existing law :
a) establishes the '37 Act, which governs retirement
systems for county and district employees in those
counties adopting its provisions. Currently 20 counties
operate independent retirement systems under the
provisions of '37 Act.
b) establishes comprehensive public employee pension
reform through enactment of PEPRA, which applies to all
public employers and public pension plans on and after
January 1, 2013, excluding the University of California
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and charter cities and counties that do not participate
in a retirement system governed by state statute;
accordingly, '37 Act retirement systems must comply with
PEPRA.
c) requires that system members subject to PEPRA be
subject to a three-year final compensation period, and
uses the term "pensionable compensation" to define the
types of compensation that can be included in a final
compensation calculation.
d) requires that public officials who commit felonies in
the performance of official duties forfeit any
retirement benefits earned after the commission of the
first felony.
e) creates, for PEPRA members, two basic membership
classifications for the purpose of providing retirement
formulas: safety and non-safety (e.g., 2% at age 62 for
non-safety members).
1)This bill :
a) 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. (Section 31262.05)
b) conforms provisions of the '37 Act governing the loss
of member benefits in the retirement system to the PEPRA
requirements for benefit forfeiture in the event of a
felony conviction. (Section 31563)
c) 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. (Section 31631)
d) adds the term "pensionable compensation," as defined
in PEPRA, to the '37 Act's definition of final
compensation and various death benefit provisions so
that benefits may be calculated appropriately.
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(Sections 31462.2, 31781.3, 31781.31, 31787.6, 31781)
e) adds the term "pensionable compensation," as defined
in PEPRA, to the '37 Act's various provisions governing
the purchase of military service credit for members who
served in the military so that the cost may be
calculated appropriately. (Sections 31649, 31649.6,
31653)
COMMENTS :
1)Argument in Support :
According to the sponsor of the bill, 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.
2)SUPPORT :
State Association of County Retirement Systems (SACRS),
Sponsor
Los Angeles County Employees Retirement Association
(LACERA)
3)OPPOSITION :
None.
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