BILL ANALYSIS �
SENATE PUBLIC EMPLOYMENT & RETIREMENT BILL NO: AB 2476
Norma Torres, Chair HEARING DATE: June 23, 2014
AB 2476 (Asm. PER&SS Comm) as amended 5/23/14
FISCAL: YES
PUBLIC EMPLOYEES' PENSITON REFORM ACT OF 2013: TECHNICAL
CLEANUP
HISTORY :
Sponsor: Author
Other legislation: AB 340 (Furutani),
Chapter 296, Statutes of 2012
SB 13 (Beall),
Chapter 528, Statutes of 2013
SB 1219 (Torres),
Assembly PER&SS Committee
ASSEMBLY VOTES :
PER & SS 6-0 4/23/14
Appropriations 17-0 5/07/14
Assembly Floor 78-0 5/15/14
SUMMARY :
Makes technical corrections to the Public Employees' Pension
Reform Act of 2013 (PEPRA) in order to clarify the
Legislature's intent in enacting PEPRA and to assist affected
employers and retirement systems in implementation of PEPRA.
BACKGROUND AND ANALYSIS :
1)Existing law :
a) establishes comprehensive public employee pension
reform through enactment of PEPRA (and related statutory
changes) 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.
Pamela Schneider
Date: June 16, 2014 Page
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b) prohibits a person who retires on or after January 1,
2013, from returning to work as a retired annuitant for
a period of 180 days after retirement unless the action
is approved in an open meeting by the governing body of
the employer, or by the California Department of Human
Resources (CalHR) if a state retiree, as specified.
c) permits a retired judge to be appointed to a court of
record without reduction or loss of retirement benefits,
as specified.
d) requires public officials and employees to forfeit
pension and related benefits, as specified, if they are
convicted of a felony in carrying out official duties,
in seeking an elected office or appointment, or in
connection with obtaining salary or pension benefits.
1)This bill :
a) clarifies that, for legislative employees, the Senate
Committee on Rules or the Assembly Rules Committee makes
the certification necessary in order to bring a retired
annuitant back to fill a critically needed position
before the person has been retired for 180 days.
b) clarifies that, for employees of the California State
University (CSU), the Trustees of the CSU make the
certification necessary in order to bring a retired
annuitant back to fill a critically needed position
before the person has been retired for 180 days.
c) clarifies the provision under which a retired judge
is exempt from restrictions of PEPRA with regard to
working after retirement by citing the specific
statutory program for such employment.
d) clarifies terminology in the sections governing
forfeiture of benefits when a member of a public
retirement system has been convicted of a felony, as
specified.
FISCAL :
Pamela Schneider
Date: June 16, 2014 Page
2
According to Assembly Appropriations committee:
Insignificant costs to CSU and the State Legislature to
administer certifications, likely more than offset by
efficiency gains by not requiring the California Department
of Human Resources to provide the certification.
COMMENTS :
1)Argument in Support :
According to the author:
The bill enacting PEPRA, AB 340 (Furutani), Chapter 296,
Statutes of 2012, passed at the end of the 2012 session
as a conference committee report following over a year
of meetings, hearings, and various legislative efforts
relative to comprehensive pension reform. Due to the
scope of the bill and its complexity, and the
requirement that a conference report may not be amended
once in print, a number of provisions needed to be
clarified. Last year's bill, SB 13 (Beall), Chapter
528, Statutes of 2013, made a number of clarifying
changes to PEPRA but additional minor clarifications are
necessary. This bill will provide employers and
retirement system administrators with better guidelines
for fully implementing the requirements of AB 340.
2)OPPOSITION :
None. #####
Pamela Schneider
Date: June 16, 2014 Page
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