HomeMy WebLinkAbout06.a.3) Status report re SB 27 and AB 240, Elimination of Pension Spikingt'
C C on t ra C os t a S
March 17, 2011
TO: HONORABLE BOARD OF DIRECTORS
VIA: JAMES M. KELLY, GENERAL MANAGER
FROM. RANDALL M. MUSG RAVES, DIRECTOR OF ADMINISTRATION
MICHAEL $CAHILL, COMMUNICATION SERVICES MANAGER
SUBJECT: SENATE BILL 27 AND AE 340, ELIMINATION OF PENSION SPIKING
Senate Bill 27: Public retirement: final compensation: computation: retirees
Introduced 12/06/10 by Senator Joe Simitian (Dem — Palo Alto)
Read on Senate Floor, referred to Rules Committee 12/06/10
Referred to committee on Public Employees and Retirement (PE&R) on 1120111
Author's amendments added 313111; re -read on Senate floor; re- referred to Comm. on
PE& R.
The key elements of the amended bill include:
• Amends the State Teachers' Retirement Law
• 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.
• State — and NOT "Local" retirement boards are authorized to administer
retirement systems
• Unused vacation, personal leave, sick time, etc. shall not be used in the
calculation of 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 five years of employment.
• A person who retires on or after January 1, 2013 (including public school and
state universities and colleges) may not work for any employer covered by state
or local retirement system for at least 180 days.
• Provisions become operative on July 1, 2012.
Assembly Bill 340: County Employees Retirement; post - retirement service
Introduced on Assembly Floor on 2110111 by Assembly member warren Furutani (D-
Long Beach), co- authored by Assembly Member Fiona Ma (D -San Francisco)
Referred to committee on PE, R & SS
Amended and re -read on 2/24/11; Re refe rred to Committee on PE, R & SS
The key elements of the amended bill include:
Amends the County Employees' Retirement Law of 1937.
Bill would prohibit any form of spiking during last year of employment.
County or District would be required to identify pay period in which compensation
was earned to its retirement board.
Effective January 1, 2012, retired person would be prohibited from reemployment
in any capacity until at least 180 days have passed.
• Provisions of this bill shall not be applied to reduce the pension of anyone who
has retired prior to July 1, 2011.
Copies of the bills are available upon request.