AB 2468, as introduced, Hadley. Public Employees’ Retirement System: contracting agencies: benefit formulas.
The Public Employees’ Retirement Law authorizes a public agency to participate in, and make all or part of its employees members of, the Public Employees’ Retirement System (PERS) by a contract entered into between its governing body and the board of administration of the system. The California Public Employees’ Pension Reform Act of 2013 (PEPRA) requires a public retirement system, as defined, to modify its plan or plans to comply with the act and, among other provisions, establishes new retirement formulas for employees first hired on or after January 1, 2013, as specified.
This bill would authorize a public agency that has contracted with the board of administration of PERS to offer an alternative formula from that required by PEPRA, to be applicable to miscellaneous, nonsafety employees hired after January 1, 2017, if specified contingencies are satisfied, including that the agency and representative employee organization have agreed to its application in a valid memorandum of understanding.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 7522.20 of the Government Code is
2amended to read:
(a) begin deleteEach end deletebegin insertExcept as provided in subdivision (c) or
4(d), each end insertretirement system that offers a defined benefit plan for
5nonsafety members of the system shall use the formula prescribed
6by this section. The defined benefit plan shall provide a pension
7at retirement for service equal to the percentage of the member’s
8final compensation set forth opposite the member’s age at
9retirement, taken to the preceding quarter year, in the following
10table, multiplied by the number of years of service in the system
11as a nonsafety member. A member may retire for service under
12this section after five years of service and upon reaching 52 years
13of age.
| Age of Retirement | Fraction |
|
52 | 1.000 |
|
521⁄4 |
1.025 |
|
521⁄2 |
1.050 |
|
523⁄4 |
1.075 |
|
53 ...... |
1.100 |
|
531⁄4 |
1.125 |
|
531⁄2 |
1.150 |
|
533⁄4 |
1.175 |
|
54 |
1.200 |
|
541⁄4 |
1.225 |
|
541⁄2 |
1.250 |
|
543⁄4 |
1.275 |
|
55 |
1.300 |
|
551⁄4 |
1.325 |
|
551⁄2 |
1.350 |
|
553⁄4 |
1.375 |
|
56 |
1.400 |
|
561⁄4 |
1.425 |
|
561⁄2 |
1.450 |
|
563⁄4 |
1.475 |
|
57 |
1.500 |
|
571⁄4 |
1.525 |
|
571⁄2 |
1.550 |
|
573⁄4 |
1.575 |
|
58 |
1.600 |
|
581⁄4 |
1.625 |
|
581⁄2 |
1.650 |
|
583⁄4 |
1.675 |
|
59 |
1.700 |
|
591⁄4 |
1.725 |
|
591⁄2 |
1.750 |
|
593⁄4 |
1.775 |
|
60 |
1.800 |
|
601⁄4 |
1.825 |
|
601⁄2 |
1.850 |
|
603⁄4 |
1.875 |
|
61 |
1.900 |
|
611⁄4 |
1.925 |
|
611⁄2 |
1.950 |
|
613⁄4 |
1.975 |
|
62 |
2.000 |
|
621⁄4 |
2.025 |
|
621⁄2 |
2.050 |
|
623⁄4 |
2.075 |
|
63 |
2.100 |
|
631⁄4 |
2.125 |
|
631⁄2 |
2.150 |
|
633⁄4 |
2.175 |
|
64 |
2.200 |
|
641⁄4 |
2.225 |
|
641⁄2 |
2.250 |
|
643⁄4 |
2.275 |
|
65 |
2.300 |
|
651⁄4 |
2.325 |
|
651⁄2 |
2.350 |
|
653⁄4 |
2.375 |
|
66 |
2.400 |
|
661⁄4 |
2.425 |
|
661⁄2 |
2.450 |
|
663⁄4 |
2.475 |
|
67 |
2.500 |
P4 1(b) Pensionable compensation used to calculate the defined
2benefit shall be limited as described in Section 7522.10.
3(c) A new member of the State Teachers’ Retirement System
4shall be subject to the formula established pursuant to Section
524202.6 of the Education Code.
6(d) With respect to new members, a public agency participating
7in the Public Employees’ Retirement System pursuant to contract
8may provide the formula established in Section 21354.6 in lieu of
9this section and subject to the requirements of Section 21354.6.
Section 21354.6 is added to the Government Code, to
11read:
Notwithstanding any other law, a contracting agency
13may make the formula provided in this section applicable to
14miscellaneous, nonsafety employees hired after January 1, 2017,
15provided that the agency and representative employee organization
16have agreed to its application in a valid memorandum of
17understanding, the contracting agency adopts an ordinance to this
18effect, and the agency’s contract is amended in the manner
19prescribed for approval of contracts or, in the case of a new
20contract, by express provision in the contract. The pension at
21retirement for service provided by this section shall be equal to
22the percentage of the member’s final compensation set forth
23opposite the member’s age at retirement, taken to the preceding
24quarter year, in the following table, multiplied by the number of
25years of service in the system as a
nonsafety member. A member
26may retire for service under this section after five years of service
27and upon reaching 55 years of age.
| Age of Retirement | Fraction |
|
55 | 1.000 |
|
551⁄4 |
1.025 |
|
551⁄2 |
1.050 |
|
553⁄4 |
1.075 |
|
56 ...... |
1.100 |
|
561⁄4 |
1.125 |
|
561⁄2 |
1.150 |
|
563⁄4 |
1.175 |
|
57 |
1.200 |
|
571⁄4 |
1.225 |
|
571⁄2 |
1.250 |
|
573⁄4 |
1.275 |
|
58 |
1.300 |
|
581⁄4 |
1.325 |
|
581⁄2 |
1.350 |
|
583⁄4 |
1.375 |
|
59 |
1.400 |
|
591⁄4 |
1.425 |
|
591⁄2 |
1.450 |
|
593⁄4 |
1.475 |
|
60 |
1.500 |
|
601⁄4 |
1.525 |
|
601⁄2 |
1.550 |
|
603⁄4 |
1.575 |
|
61 |
1.600 |
|
611⁄4 |
1.625 |
|
611⁄2 |
1.650 |
|
613⁄4 |
1.675 |
|
62 |
1.700 |
|
621⁄4 |
1.725 |
|
621⁄2 |
1.750 |
|
623⁄4 |
1.775 |
|
63 |
1.800 |
|
631⁄4 |
1.825 |
|
631⁄2 |
1.850 |
|
633⁄4 |
1.875 |
|
64 |
1.900 |
|
641⁄4 |
1.925 |
|
641⁄2 |
1.950 |
|
643⁄4 |
1.975 |
|
65 |
2.000 |
|
651⁄4 |
2.025 |
|
651⁄2 |
2.050 |
|
653⁄4 |
2.075 |
|
66 |
2.100 |
|
661⁄4 |
2.125 |
|
661⁄2 |
2.150 |
|
663⁄4 |
2.175 |
|
67 |
2.200 |
|
671⁄4 |
2.225 |
|
671⁄2 |
2.250 |
|
673⁄4 |
2.275 |
|
68 |
2.300 |
|
681⁄4 |
2.325 |
|
681⁄2 |
2.350 |
|
683⁄4 |
2.375 |
|
69 |
2.400 |
|
691⁄4 |
2.425 |
|
691⁄2 |
2.450 |
|
693⁄4 |
2.475 |
|
70 |
2.500 |
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