AB 1692: County employees’ retirement: Contra Costa County.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2016-08-17
The California Public Employees Pension Reform Act of 2013 (PEPRA) generally requires a public retirement system, as defined, to modify its pension plan or plans to comply with the act and, among other things, prohibits a public employer that offers a defined benefit pension plan from exceeding specified retirement formulas for new members, as defined. The County Employees Retirement Law of 1937 (CERL) authorizes counties to establish retirement systems pursuant to its provisions in order to provide pension benefits to county and district employees. CERL, among other things, authorizes the Board of Supervisors of Contra Costa County to make a Tier Three retirement plan applicable to certain nonsafety officers and employees for whom the board is the governing body, as specified, and sets forth the terms and conditions of disability retirement allowances for Tier Three members.
This bill would authorize the Board of Supervisors of Contra Costa County to apply those terms and conditions to nonsafety officers and employees who are new members subject to the retirement formulas specified in PEPRA and for whom the board is the governing body.
The California Public Employees Pension Reform Act of 2013 (PEPRA) generally requires a public retirement system, as defined, to modify its pension plan or plans to comply with the act and, among other things, prohibits a public employer that offers a defined benefit pension plan from exceeding specified retirement formulas for new members, as defined. The County Employees Retirement Law of 1937 (CERL) authorizes counties to establish retirement systems pursuant to its provisions in order to provide pension benefits to county and district employees. CERL, among other things, authorizes the Board of Supervisors of Contra Costa County to make a Tier Three retirement plan applicable to certain nonsafety officers and employees for whom the board is the governing body, as specified, and sets forth the terms and conditions of disability retirement allowances for Tier Three members.
This bill would authorize the Board of Supervisors of Contra Costa County to apply those terms and conditions to nonsafety officers and employees who are new members subject to the retirement formulas specified in PEPRA and for whom the board is the governing body.
The California Public Employees Pension Reform Act of 2013 (PEPRA) generally requires a public retirement system, as defined, to modify its pension plan or plans to comply with the act and, among other things, prohibits a public employer that offers a defined benefit pension plan from exceeding specified retirement formulas for new members, as defined. The County Employees Retirement Law of 1937 (CERL) authorizes counties to establish retirement systems pursuant to its provisions in order to provide pension benefits to county and district employees. CERL, among other things, authorizes the Board of Supervisors of Contra Costa County to make a Tier Three retirement plan applicable to certain nonsafety officers and employees for whom the board is the governing body, as specified, and sets forth the terms and conditions of disability retirement allowances for Tier Three members.
This bill would authorize the Board of Supervisors of Contra Costa County to apply those terms and conditions to nonsafety officers and employees who are new members subject to the retirement formulas specified in PEPRA and for whom the board is the governing body.
(a)The Board of Supervisors of Contra Costa County may, by adopting an ordinance, make this section applicable to officers and employees for whom the board is the governing body.
(b)This section shall not apply to any officer or employee who is a safety member.
(c)Notwithstanding any other law, members whose benefits are determined under Section 7522.20 shall be eligible for a disability retirement allowance under the same terms and conditions provided in Section 31755 for members covered by Tier Three. The board may not grant a disability retirement allowance to a member whose benefits are determined under Section 7522.20 except as provided in Section 31720.1. The amount of the disability retirement allowance for a member whose benefits are determined under Section 7522.20 shall be as set forth in Section 31727.01.
(d)Notwithstanding any other law, members whose benefits are determined under Section 7522.20 who have been retired for disability shall be eligible for cost-of-living adjustments under the same terms and conditions provided in subdivision (h) of Section 31755 for members covered by Tier Three who have been retired for disability.
(e)This section shall apply only in Contra Costa County.
(a)The Board of Supervisors of Contra Costa County may, by adopting an ordinance, make this section applicable to officers and employees for whom the board is the governing body.
(b)This section shall not apply to any officer or employee who is a safety member.
(c)Notwithstanding any other law, members whose benefits are determined under Section 7522.20 shall be eligible for a disability retirement allowance under the same terms and conditions provided in Section 31755 for members covered by Tier Three. The board may not grant a disability retirement allowance to a member whose benefits are determined under Section 7522.20 except as provided in Section 31720.1. The amount of the disability retirement allowance for a member whose benefits are determined under Section 7522.20 shall be as set forth in Section 31727.01.
(d)Notwithstanding any other law, members whose benefits are determined under Section 7522.20 who have been retired for disability shall be eligible for cost-of-living adjustments under the same terms and conditions provided in subdivision (h) of Section 31755 for members covered by Tier Three who have been retired for disability.
(e)This section shall apply only in Contra Costa County.
(a)The Board of Supervisors of Contra Costa County may, by adopting an ordinance, make this section applicable to officers and employees for whom the board is the governing body.
(b)This section shall not apply to any officer or employee who is a safety member.
(c)Notwithstanding any other law, members whose benefits are determined under Section 7522.20 shall be eligible for a disability retirement allowance under the same terms and conditions provided in Section 31755 for members covered by Tier Three. The board may not grant a disability retirement allowance to a member whose benefits are determined under Section 7522.20 except as provided in Section 31720.1. The amount of the disability retirement allowance for a member whose benefits are determined under Section 7522.20 shall be as set forth in Section 31727.01.
(d)Notwithstanding any other law, members whose benefits are determined under Section 7522.20 who have been retired for disability shall be eligible for cost-of-living adjustments under the same terms and conditions provided in subdivision (h) of Section 31755 for members covered by Tier Three who have been retired for disability.
(e)This section shall apply only in Contra Costa County.
|
Date
|
Status
|
|---|---|
| May 19, 2016 | Referred to Com. on P.E. & R. |
| Aug 17, 2016 | Chaptered by Secretary of State - Chapter 123, Statutes of 2016. |
| Aug 17, 2016 | Approved by the Governor. |
| Aug 5, 2016 | Enrolled and presented to the Governor at 2:30 p.m. |
| Aug 2, 2016 | In Assembly. Ordered to Engrossing and Enrolling. |
| Aug 1, 2016 | Read third time. Passed. Ordered to the Assembly. (Ayes 38. Noes 0. Page 4722.). |
| Aug 1, 2016 | Read third time. Passed. Ordered to the Assembly. |
| Jun 14, 2016 | Read second time. Ordered to third reading. |
| Jun 13, 2016 | From committee: Do pass. (Ayes 5. Noes 0.) (June 13). |
| Jan 21, 2016 | Read first time. To print. |
| May 12, 2016 | Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0.) |
| May 12, 2016 | Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 4785.) |
| May 12, 2016 | Read third time. Passed. Ordered to the Senate. |
| May 12, 2016 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 5, 2016 | Read second time. Ordered to Consent Calendar. |
| May 4, 2016 | From committee: Do pass. To Consent Calendar. (Ayes 7. Noes 0.) (May 4). |
| Feb 8, 2016 | Referred to Com. on P.E., R., & S.S. |
| Jan 22, 2016 | From printer. May be heard in committee February 21. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 1, 2016 | Assembly 3rd Reading AB1692 Bonilla By Wolk | Senate Floor |
Passed |
|
| Jun 13, 2016 | Do pass | Senate Standing Committee on Public Employment and Retirement |
Passed |
|
| May 12, 2016 | AB 1692 BONILLA Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| May 4, 2016 | Do pass. To Consent Calendar. | Assembly Standing Committee on Public Employees, Retirement, and Social Security |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| California Nurses Association | ** Support | Aug 1, 2016 |
| Contra Costa County Board of Supervisors | ** Support | Aug 1, 2016 |
| Contra Costa County Defender Association | ** Support | Aug 1, 2016 |
| Contra Costa County Defenders Association | ** Support | Aug 1, 2016 |
| Contra Costa County Deputy Sheriffs' Association | ** Support | Aug 1, 2016 |
| Contra Costa County District Attorneys' Association | ** Support | Aug 1, 2016 |
| Professional & Technical Engineers, Local 21 | ** Support | Aug 1, 2016 |
| Professional & Technical Engineers, Local 21, Ifpte, Afl-Cio | ** Support | Aug 1, 2016 |
| Public Employees Union, Local 1 | ** Support | Aug 1, 2016 |
| SEIU Local 1021 Service Line Supervisors | ** Support | Aug 1, 2016 |
| Service Employees International Union, Local 1021 | ** Support | Aug 1, 2016 |
| Western Council of Engineers | ** Support | Aug 1, 2016 |
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 1692
:
SENATE PUBLIC EMP. & RET. COMMITTEE: 5-0, 6/13/16
AYES: Pan, Morrell, Beall, Hall, Moorlach
ASSEMBLY FLOOR: 78-0, 5/12/16 (Consent) - See last page for vote
SOURCE: Contra Costa County Board of Supervisors
DIGEST: This bill allows the Contra Costa County Board of Supervisors to make the terms and conditions of disability retirement allowances currently available to Tier Three members of the Contra Costa County Employees’ Retirement Association (CCCERA) applicable to non-safety members subject to the retirement benefit formula specified in the Public Employees' Pension Reform Act of 2013 (PEPRA).
ANALYSIS:
Existing law:
- Establishes comprehensive public employee pension reform through enactment of PEPRA (and related statutory changes) that apply to all public employers and public pension plans on and after January 1, 2013, excluding the University of California and charter cities and counties that do not participate in a retirement system governed by state statute.
- Establishes, in PEPRA, a statewide retirement formula for all non-safety public employees first hired on and after January 1, 2013.
- Establishes the1937 Act County Employees’ Retirement Law (’37 Act), which governs independent county retirement systems for county and district employees in those counties adopting its provisions. Currently 20 counties, including Contra Costa County, operate retirement systems under the '37 Act.
- Authorizes the Contra Costa County Board of Supervisors to implement a Tier Three retirement plan applicable to non-safety members of CCCERA, as specified.
- Sets the terms and conditions of disability retirement allowances for Tier Three members of CCCERA who are permanently disabled due to either a work-related illness or injury after any number of years of service, or any illness or injury after 10 years of service with Contra Costa County.
- Establishes a disability retirement allowance for Tier Three members equal to 40% of final compensation, with additional percentages for dependent children, as specified.
This bill:
- Allows the Contra Costa County Board of Supervisors to adopt an ordinance making the Tier Three disability retirement benefit applicable to non-safety Contra Costa County employees who are subject to PEPRA.
- Specifies that the retiree cost-of-living adjustments payable to disabled Tier Three retirees shall also apply to disabled non-safety retirees subject to PEPRA.
Background
With regard to PEPRA, while it made significant changes to retirement formulas and final compensation rules, death and disability benefits were intentionally unaffected.
According to the Contra Costa County Board of Supervisors:
Over thirty years ago, Contra Costa-specific legislation was passed to establish a disability retirement benefit for Contra Costa County's Retirement Tier Two (1.13%@55) for non-safety employees. Tier Two was closed to new members in 2002. In 1998, County-specific legislation was passed to establish a new Contra Costa County Retirement Tier Three (2%@55) for non-safety employees. Tier Three expressly incorporated the same disability retirement benefit applicable to Tier Two employees. This thirty year-old, County-specific, disability retirement benefit continues to apply to current County employees in Tier Three and to new hires with reciprocity. The Public Employees' Pension Reform Act of 2013 (PEPRA) does not address disability retirement benefits.
The sponsor concludes, "The County and its recognized employee organization have all agreed that the disability standard and disability retirement benefit applicable to Tier Three applies to new hires who enter the County's and dependent special districts' PEPRA non-safety tier. The County and its recognized employee organizations have agreed to jointly seek County-specific legislation to clarify that the current Tier Three disability provisions apply to the PEPRA non-safety tier."
Related/Prior Legislation
AB 340 (Furutani, Chapter 296, Statutes of 2012) enacted PEPRA, which established statewide pension reform for all public employees fist hired on an after January 1, 2013, except those employed in the University of California and charter cities and counties not participating in a retirement system governed by statute.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
Contra Costa County Board of Supervisors (source)
California Nurses Association
Contra Costa County Defenders Association
Contra Costa County Deputy Sheriffs’ Association
Contra Costa County District Attorneys’ Association
Professional & Technical Engineers, Local 21, IFPTE, AFL-CIO
Public Employees Union, Local 1
Service Employees International Union, Local 1021
United Professional Firefighters of Contra Costa County, I.A.F.F., Local 1230
Western Council of Engineers
OPPOSITION: (Verified 6/14/16)
None received
ARGUMENTS IN SUPPORT: According to the sponsor, AB 1692 will ensure that current Contra Costa County non-safety employees, dependent special district non-safety employees, and new hires subject to the PEPRA non-safety formula will all continue to receive the same disability retirement benefit.
ASSEMBLY FLOOR: 78-0, 5/12/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon
NO VOTE RECORDED: Burke, Jones-Sawyer
6/14/16 16:52:06
**** END ****
SENATE COMMITTEE ON
PUBLIC EMPLOYMENT AND RETIREMENT
Dr. Richard Pan, Chair
2015 - 2016 Regular
Bill No: AB 1692 Hearing Date: 6/13/16
Author: | Bonilla | ||
Version: | 1/21/16 As introduced | ||
Urgency: | No | Fiscal: | No |
Consultant: | Pamela Schneider | ||
Subject: County employees’ retirement: Contra Costa County
SOURCE: Contra Costa County Board of Supervisors
ASSEMBLY VOTES:
Assembly Floor: | 78 - 0 |
Assembly Public Employees, Retirement/Soc Sec Committee: | 7 - 0 |
DIGEST: This bill allows the Contra Costa County Board of Supervisors to make the terms and conditions of disability retirement allowances currently available to Tier Three members of the Contra Costa County Employees’ Retirement Association (CCCERA) applicable to non-safety members subject to the retirement benefit formula specified in the Public Employees' Pension Reform Act of 2013 (PEPRA).
ANALYSIS:
Existing law:
- Establishes comprehensive public employee pension reform through enactment of PEPRA (and related statutory changes) that apply to all public employers and public pension plans on and after January 1, 2013, excluding the University of California and charter cities and counties that do not participate in a retirement system governed by state statute.
- Establishes, in PEPRA, a statewide retirement formula for all non-safety public employees first hired on and after January 1, 2013.
- Establishes the1937 Act County Employees’ Retirement Law (’37 Act), which governs independent county retirement systems for county and district employees in those counties adopting its provisions. Currently 20 counties, including Contra Costa County, operate retirement systems under the '37 Act.
- Authorizes the Contra Costa County Board of Supervisors to implement a Tier Three retirement plan applicable to non-safety members of CCCERA, as specified.
- Sets the terms and conditions of disability retirement allowances for Tier Three members of CCCERA who are permanently disabled due to either a work-related illness or injury after any number of years of service, or any illness or injury after 10 years of service with Contra Costa County.
- Establishes a disability retirement allowance for Tier Three members equal to 40% of final compensation, with additional percentages for dependent children, as specified.
This bill:
- Allows the Contra Costa Board of Supervisors to adopt an ordinance making the Tier Three disability retirement benefit applicable to non-safety Contra Costa County employees who are subject to PEPRA.
- Specifies that the retiree cost-of-living adjustments payable to disabled Tier Three retirees shall also apply to disabled non-safety retirees subject to PEPRA.
Background
With regard to PEPRA, while it made significant changes to retirement formulas and final compensation rules, death and disability benefits were intentionally unaffected.
According to the Contra Costa Board of Supervisors:
Over thirty years ago, Contra Costa-specific legislation was passed to establish a disability retirement benefit for Contra Costa County's Retirement Tier Two (1.13%@55) for non-safety employees. Tier Two was closed to new members in 2002. In 1998, County-specific legislation was passed to establish a new Contra Costa County Retirement Tier Three (2%@55) for non-safety employees. Tier Three expressly incorporated the same disability retirement benefit applicable to Tier Two employees. This thirty year-old, County-specific, disability retirement benefit continues to apply to current County employees in Tier Three and to new hires with reciprocity. The Public Employees' Pension Reform Act of 2013 (PEPRA) does not address disability retirement benefits."
The sponsor concludes, "The County and its recognized employee organization have all agreed that the disability standard and disability retirement benefit applicable to Tier Three applies to new hires who enter the County's and dependent special districts' PEPRA non-safety tier. The County and its recognized employee organizations have agreed to jointly seek County-specific legislation to clarify that the current Tier Three disability provisions apply to the PEPRA non-safety tier."
Related/Prior Legislation
AB 340 (Furutani, Chapter 296, Statutes of 2012) enacted PEPRA, which established statewide pension reform for all public employees fist hired on an after January 1, 2013 except those employed in the University of California and charter cities and counties not participating in a retirement system governed by statute.
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
SUPPORT:
Contra Costa County Board of Supervisors (source)
California Nurses Association
Contra Costa County Defender Association
Contra Costa County Deputy Sheriffs’ Association
Contra Costa County District Attorneys’ Association
Professional & Technical Engineers, Local 21, IFPTE, AFL-CIO
Public Employees Union, Local 1
Service Employees International Union, Local 1021
United Professional Firefighters Contra Costa County, I.A.F.F., Local 1230
Western Council of Engineers
OPPOSITION:
None received
ARGUMENTS IN SUPPORT:
According to the sponsor, AB 1692 will ensure that current Contra Costa County non-safety employees, dependent special district non-safety employees, and new hires subject to the PEPRA non-safety formula will all continue to receive the same disability retirement benefit.
Bill Author
Bill Co-Author(s):