HomeMy WebLinkAbout06.a.2) Status of SB27, Elimination of Pension Spiking6 . a.
Central Contra Costa Sanitary District
January 20, 2011
TO: HONORABLE BOARD OF DIRECTORS
VIA: JAMES M. KELLY, GENERAL MANAGER
# 41
FROM: RANDALL M. MUSGRAVES, DIRECTOR OF ADMINISTRATION d
SUBJECT: SENATE BILL 27, ELIMINATION OF PENSION SPIKING
On December 6, 2010 Senator Simitian (Dem —Palo Alto) introduced Senate Bill (SB)
27. The purpose is to eliminate pension spiking in California for public employees. In
summary, it is the replacement of AB 1987 and SB 1425 that were vetoed by Governor
Schwarzenegger.
Read on Senate Floor, referred to Rules Committee
Action expected after January 0, 2011
The key elements of the bill:
• Any change in salary or compensation principally for the purpose of enhancing
benefits would not be included in the calculation of a member's final
compensation.
• Calculation of a member's final compensation would be limited to an amount not
to exceed the average of his or her final three years of employment.
• A person who retires on or after January 1, 2013 may not work for any employer
covered by state or local retirement system for at least 180 days.
The bill would become effective July 1, 2012.
It has also been reported that Senator Simitian will also introduce a second bill
sometime in January specifically addressing the issue of "double dipping," banning
retirees drawing a pension from returning to work for the same organization for 180
days. Simitian introduced a similar bill last year that passed both houses of the
Legislature before being vetoed by Gov. Schwarzenegger.
Staff will continue to monitor and report legislative activity regarding public retirement
pension plans and pension spiking to the Board.