AB 2468: Public Employees’ Retirement System: contracting agencies: benefit formulas.

(a)Except as provided in subdivision (c) or (d), each retirement system that offers a defined benefit plan for nonsafety members of the system shall use the formula prescribed by this section. The defined benefit plan shall provide a pension at retirement for service equal to the percentage of the members final compensation set forth opposite the members age at retirement, taken to the preceding quarter year, in the following table, multiplied by the number of years of service in the system as a nonsafety member. A member may retire for service under this section after five years of service and upon reaching 52 years of age.

(b)Pensionable compensation used to calculate the defined benefit shall be limited as described in Section 7522.10.

(c)A new member of the State Teachers Retirement System shall be subject to the formula established pursuant to Section 24202.6 of the Education Code.

(d)With respect to new members, a public agency participating in the Public Employees Retirement System pursuant to contract may provide the formula established in Section 21354.6 in lieu of this section and subject to the requirements of Section 21354.6.

(a)Notwithstanding any other law, a contracting agency may make the formula provided in this section applicable to miscellaneous, nonsafety employees hired after January 1, 2017, and who are otherwise new members as defined in Section 7522.04, provided that the agency and representative employee organization have agreed to its application in a valid memorandum of understanding, the contracting agency adopts a resolution or an ordinance to this effect, and the agencys contract is amended in the manner prescribed for approval of contracts or, in the case of a new contract, by express provision in the contract. The pension at retirement for service provided by this section shall be equal to the percentage of the members final compensation set forth opposite the members age at retirement, taken to the preceding quarter year, in the following table, multiplied by the number of years of service in the system as a nonsafety member. A member may retire for service under this section after five years of state service and upon reaching 55 years of age. age, except as provided in Section 21060.

(a)Each Except as provided in subdivision (c) or (d), each retirement system that offers a defined benefit plan for nonsafety members of the system shall use the formula prescribed by this section. The defined benefit plan shall provide a pension at retirement for service equal to the percentage of the members final compensation set forth opposite the members age at retirement, taken to the preceding quarter year, in the following table, multiplied by the number of years of service in the system as a nonsafety member. A member may retire for service under this section after five years of service and upon reaching 52 years of age.

(b)Pensionable compensation used to calculate the defined benefit shall be limited as described in Section 7522.10.

(c)A new member of the State Teachers Retirement System shall be subject to the formula established pursuant to Section 24202.6 of the Education Code.

Notwithstanding any other law, a contracting agency may make the formula provided in this section applicable to miscellaneous, nonsafety employees hired after January 1, 2017, provided that the agency and representative employee organization have agreed to its application in a valid memorandum of understanding, the contracting agency adopts an ordinance to this effect, and the agencys contract is amended in the manner prescribed for approval of contracts or, in the case of a new contract, by express provision in the contract. The pension at retirement for service provided by this section shall be equal to the percentage of the members final compensation set forth opposite the members age at retirement, taken to the preceding quarter year, in the following table, multiplied by the number of years of service in the system as a nonsafety member. A member may retire for service under this section after five years of service and upon reaching 55 years of age.