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PEPRA Amendments Proposed-Update

01-09-2013 |

Four Bills have been introduced proposing to amend AB340 and PEPRA rules

One Assembly and three Senate bills have been introduced proposing to amend AB340 and PEPRA rules:

AB 160 exempts from PEPRA certain multiemployer plans and retirement plans for public employees whose collective bargaining rights are protected by Section 5333(b) of Title 49 of the US Code.  Reports in the media state that 20,000 transportation workers statewide would be exempted from the provisions of PEPRA and A.B. 340 under this Bill.

SB 13 eliminates the PEPRA provision which could have increased benefits for some disabled safety members of public employer pension plans and public retirement systems, it clarifies that a public employer can offer a new defined contribution plan after January 1, 2013 even if one was not in place prior to 2013, and it makes clear that New Members will only contribute more than 50% of the Normal Cost if agreed to through collective bargaining.  It also makes a few minor technical corrections.

SB 24 authorizes a public employer or retirement system to offer a benefit formula with a lower benefit factor at normal retirement age and that results in a lower normal cost than the appropriate PEPRA formula for purposes of addressing a fiscal necessity, and it also removes the requirement that such benefit formulas be approved by the Legislature.

SB 54 authorizes the Alameda County Board of Supervisors to adopt a 2% at 65 formula for new general members.

http://leginfo.ca.gov/pub/13-14/bill/asm/ab_0151-0200/ab_160_bill_20130122_introduced.pdf

http://www.leginfo.ca.gov/pub/13-14/bill/sen/sb_0001-0050/sb_13_bill_20121203_introduced.pdf

http://www.leginfo.ca.gov/pub/13-14/bill/sen/sb_0001-0050/sb_24_bill_20121203_introduced.pdf

http://www.leginfo.ca.gov/pub/13-14/bill/sen/sb_0051-0100/sb_54_bill_20121221_introduced.pdf

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