HomeMy WebLinkAbout05.a.2) Update on pension reform legislation.5. a. 2)
Central Contra Costa Sanitary District
July 15, 2011
TO: HONORABLE BOARD OF DIRECTORS
VIA: JAMES M. KELLY, GENERAL MANAGER
FROM: RANDALL M. MUSGRAVES, DIRECTOR OF ADMINISTRATION �'��
MICHAEL SCAHILL, COMMUNICATION SERVICES MANAGER
SUBJECT: SENATE AND ASSEMBLY BILLS COVERING ENHANCED BENEFITS
Assembly Bill 340: County Employees Retirement; post- retirement service
Passed by Assembly 73 — 0 (7 not voting or absent) on May 12, 2011
Sent to Senate
Passed 5 — 0 in Senate Committee on Public Employees & Retirement on June 27
Passed 35 — 0 in Senate on July 11.
Returned to Assembly for concurrence on Senate amendments
No Hearing Date scheduled
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.
Senate Bill 27: Public retirement: final compensation: computation: retirees
Passed by Senate 39 — 0 on June 1, 2011
Sent to Assembly; passed 5 — 0 by Committee on Public Employment, Retirement
& Social Security on July 6
Referred to Appropriations Committee on July 7
No hearing date scheduled as yet
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.