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HomeMy WebLinkAbout08.a.3) Update on pension reform legislationgA.3� Central Contra Costa Sanitary District June 10, 2011 TO: HONORABLE BOARD OF DIRECTORS VIA: JAMES M. KELLY, GENERAL MANAGER FROM: RANDALL M. MUSGRAVES, DIRECTOR iFAADMINSTRATION /MA MICHAEL SCAHILL, COMMUNICATION SERVICES MANAGER 2,6p SUBJECT: SENATE AND ASSEMBLY BILLS COVERING ENHANCED BENEFITS Sedate Bill 27: Public retirement: final compensation Passed by the Senate 39 -0 on June 1, 2011 Sent to Assembly for First Reading June 2, Held at Desk (loosely defined as being held for committee assignment or pending some other related bill or action) The key elements of the amended bill include: • Covers members of CaISTRS and CalPERS • 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 Passed in Assembly 73 — 0 on May 12, 2011 Assigned to Senate Committee on Public Employment & Retirement on 5/26/11 Senate Hearing scheduled for June 27, 2011 The key elements of the amended bill include: • Bill would prohibit any form of spiking during last year of employment. • 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. Public Employee Pension Reform Act - Prop 11 -0007 The measure's author Roger Niello has said he will not pursue signature gathering because of the diminished likelihood of a special election in November of this year. He stated that he is open to re- introducing the measure for one of the 2012 ballots; Proposition 11 -0007 would have raised the minimum retirement age for all public workers to 62, including current workers.