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HomeMy WebLinkAbout07.a.3) Update on Senate and Assembly Bills Covering Enhanced Benefits7a.3) Central Contra Costa Sanitary District May 13, 2011 TO: HONORABLE BOARD OF DIRECTORS DD�� VIA: JAMES M. KELLY, GENERAL MANAGER Ao" FROM: RANDALL M. MUSGRAVES, DIRECTOR OF ADMINISTRATION MICHAEL SCAHILL, COMMUNICATION SERVICES MANAGER SUBJECT: SENATE AND ASSEMBLY BILLS COVERING ENHANCED BENEFITS These are the latest updates on Senate and Assembly bills that could impact public employees and pension - related benefits. Senate Bill 27: Public retirement: final compensation: computation: retirees Introduced 12/06/10 by Senator Joe Simitian (Derr — Palo Alto) Passed 8 -0 by Appropriations Committee on 4/11/11 Place in Appropriations Committee Suspense File (which means it will not be voted on until after Summer Recess ending August 17) The key elements of the amended bill include: • Covers members of CaISTRS and CaIPERS • 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 highest paid 12 or 36 months 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 2/10/11 by Assembly member Warren Furutani (D- Long Beach), co- authored by Assembly Member Fiona Ma (D -San Francisco) Referred to Committee on Public Employees, Retirement and Social Security (PER & SS). Voted by Committee 5 -0 to Pass on May 4, 2011 Passed in Assembly 73 — 0 (7 not voting or absent) on May 12, 2011 First Senate read on May 12; sent to Rules Committee for assignment 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 January 1, 2012. Assembly Bill 961 Introduced by Assembly Member Allan Mansoor (R -Costa Mesa) on 2/20/11 May 4, 2011 Failed passage 5 -0 in Committee on Public Employees, Retirement and Social Security Reconsideration granted Key point of bill: Excludes matters relating to pension benefits from the scope of public employee collective bargaining. Senate Bills 520- 528 (referred to as Walters' "Pension Reform Act ") Introduced by Senator Mimi Walters (R- L.A. County) on 2/17/11; Sent to Committee on Public Employees & Retirement for May 2, 2011 hearing Hearing cancelled at Sen. Walters request The key points of these bills include: • Creates a hybrid retirement plan for public employees who become members on or after January 1, 2012. • Eliminates pensions for part-time elected officials • Eliminates retroactivity • Eliminates spiking • Raises retirement age to 55 for non - safety emplyees • Limits collective bargaining • Removes elected members from PERS Board Public Employee Pension Reform Act Proposition 11 -0007 for November 2011 Ballot Submitted by former Republican Assembly member Roger Niello Key points include: • Raise the minimum retirement age for all public workers to 62, including current workers • Require public employees to work at least five years, full -time before being eligible for a pension • Cap pension checks at no more than 60 percent of the highest three -year average base wage • End any form of spiking • Require employees to contribute at least as much as their employers to retirement accounts • End retroactive pension increases. Other than retirement age, the other parts would apply only to new hires. If approved by voters, the measure would take effect immediately.