BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1219
                                                                  Page  1

          Date of Hearing:   August 6, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    SB 1219 (Torres) - As Amended:  April 1, 2014

          Policy Committee:                              PERSSVote:7-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill makes several conforming changes to the Public  
          Employees' Retirement Law (PERL), which is administered by the  
          California Public Employees' Retirement System (CalPERS), to  
          bring PERL into conformity with the Public Employees' Pension  
          Reform Act of 2013 (PEPRA).  The bill retains elements of PERL  
          specific to certain CalPERS participants, including the retirees  
          of the California State University, certain disabled retirees,  
          and retirees elected to public office.

           FISCAL EFFECT  

          1)Minor and absorbable administrative costs to CalPERS.

          2)The Department of Finance notes the bill may erode potential  
            savings to pension systems if certain disabled retirees and  
            elected officials are allowed to draw pensions while employed  
            full time.  Under the current system, however, those retirees  
            are unlikely to seek additional employment, particularly as  
            local elected officials, because the value of their pension  
            draw is often considerably higher than any salaries paid.  As  
            a result, it is unlikely this bill will have a significant  
            impact on total pension benefits paid.

           COMMENTS  

          1)  Purpose.   According to CalPERS, the sponsor of SB 1219, there  
            is a need for ongoing clarification and conformity among the  
            PERL and the PEPRA reforms.  This bill represents the  
            consensus clarifications and conformity provisions related to  
            the PEPRA and post-retirement public employment.









                                                                  SB 1219
                                                                  Page  2

          2)  PEPRA Briefly.   In general, PEPRA prohibits a retiree who is  
            receiving a pension benefit from returning to public  
            employment for an employer in the same public retirement  
            system (for example, CalPERS) while receiving both retirement  
            benefits and salary, except under certain circumstances.   
            PEPRA also prohibits most retirees appointed to full-time,  
            salaried positions on state boards or commissions after  
            January 1, 2013 from receiving both a full-time salary and a  
            public pension.


           Analysis Prepared by  :    Joel Tashjian / APPR. / (916) 319-2081