AB 1987 - An Act to Amend Sections 31460 and 31461 Of, to Add Sections 7500.5, 31460.2, 31461.8, 31539.5, 31540, 31541, 31569, 31680.10, 45309.6, 45309.7, 50871.6, and 50871.7 To, and to Repeal and Add Section 31539 Of, the Government Code, Relating to Public Retirement Systems.

Public retirement: final compensation: computation: retirees. 2009-2010 Legislature. View bill details
Author(s):
Summary:
(1)The Public Employees’ Retirement Law (PERL) creates the Public Employees’ Retirement System (PERS), which provides a defined benefit to its members based on age at retirement, service credit, and final compensation. PERL defines “final compensation” for purposes of calculating a member’s retirement allowance. The State Teachers’ Retirement Law, which applies to specified school… More
(1)The Public Employees’ Retirement Law (PERL) creates the Public Employees’ Retirement System (PERS), which provides a defined benefit to its members based on age at retirement, service credit, and final compensation. PERL defines “final compensation” for purposes of calculating a member’s retirement allowance. The State Teachers’ Retirement Law, which applies to specified school employees, and the retirement laws for county employees and city employees also provide for a defined benefit based on age at retirement, service credit, and final compensation.

This bill would generally provide, effective July 1, 2011, that any change in salary, compensation, or remuneration principally for the purpose of enhancing a member’s benefits would not be included in the calculation of a member’s final compensation for purposes of determining that member’s defined benefit. The bill would require the board of each state and local public retirement system to establish, by regulation, accountability provisions that would include an ongoing audit process to ensure that a change in a member’s salary, compensation, or remuneration is not made principally for the purpose of enhancing a member’s retirement benefits. This bill would limit the calculation of a member’s final compensation to an amount not to exceed the average increase in compensation received within the final compensation period and the 2 preceding years by employees in the same or a related group as that member. This bill would also provide that a person who retires on or after January 1, 2012, may not perform services for any employer covered by a state or local retirement system until that person has been separated from service for a period of at least 180 days. This bill would provide for the implementation of the changes under the applicable retirement laws that apply to counties and cities.

This bill includes legislative findings expressing the public purpose that would be served by the enactment of this bill.

(2)This bill would, except as otherwise specified, provide that its provisions would become operative on July 1, 2011. This bill would further provide that its provisions would not become operative unless SB 1425 of the 2009–10 Regular Session is also enacted and takes effect on or before January 1, 2011. Hide
 
Status:
This bill was passed by both houses and vetoed by the Governor. It did not become law
Assembly Committee on Public Employees, Retirement and Social Security Vote: Do pass and be re-referred to the Committee on Appropriations.

PASSED on April 21, 2010.

voted YES: 6 voted NO: 0
0 voted present/not voting

An Act to Amend Sections 31460 and 31461 Of, to Add Sections 7500.5, 31460.2, 31461.8, 31539.5, 31540, 31541, 31569, 31680.10, 45309.6, 45309.7, 50871.6, and 50871.7 To, and to Repeal and Add Section 31539 Of, the Government Code, Relating to Public Retirement Systems.

AB 1987 — 2009-2010 Legislature

Summary
(1)The Public Employees’ Retirement Law (PERL) creates the Public Employees’ Retirement System (PERS), which provides a defined benefit to its members based on age at retirement, service credit, and final compensation. PERL defines “final compensation” for purposes of calculating a member’s retirement allowance. The State Teachers’ Retirement Law, which applies to specified school employees, and the retirement laws for county employees and city employees also provide for a defined benefit based on age at retirement, service credit, and final compensation.

This bill would generally provide, effective July 1, 2011, that any change in salary, compensation, or remuneration principally for the purpose of enhancing a member’s benefits would not be included in the calculation of a member’s final compensation for purposes of determining that member’s defined benefit. The bill would require the board of each state and local public retirement system to establish, by regulation, accountability provisions that would include an ongoing audit process to ensure that a change in a member’s salary, compensation, or remuneration is not made principally for the… More
(1)The Public Employees’ Retirement Law (PERL) creates the Public Employees’ Retirement System (PERS), which provides a defined benefit to its members based on age at retirement, service credit, and final compensation. PERL defines “final compensation” for purposes of calculating a member’s retirement allowance. The State Teachers’ Retirement Law, which applies to specified school employees, and the retirement laws for county employees and city employees also provide for a defined benefit based on age at retirement, service credit, and final compensation.

This bill would generally provide, effective July 1, 2011, that any change in salary, compensation, or remuneration principally for the purpose of enhancing a member’s benefits would not be included in the calculation of a member’s final compensation for purposes of determining that member’s defined benefit. The bill would require the board of each state and local public retirement system to establish, by regulation, accountability provisions that would include an ongoing audit process to ensure that a change in a member’s salary, compensation, or remuneration is not made principally for the purpose of enhancing a member’s retirement benefits. This bill would limit the calculation of a member’s final compensation to an amount not to exceed the average increase in compensation received within the final compensation period and the 2 preceding years by employees in the same or a related group as that member. This bill would also provide that a person who retires on or after January 1, 2012, may not perform services for any employer covered by a state or local retirement system until that person has been separated from service for a period of at least 180 days. This bill would provide for the implementation of the changes under the applicable retirement laws that apply to counties and cities.

This bill includes legislative findings expressing the public purpose that would be served by the enactment of this bill.

(2)This bill would, except as otherwise specified, provide that its provisions would become operative on July 1, 2011. This bill would further provide that its provisions would not become operative unless SB 1425 of the 2009–10 Regular Session is also enacted and takes effect on or before January 1, 2011. Hide
Learn More
At LegInfo.ca.gov
Title
An Act to Amend Sections 31460 and 31461 Of, to Add Sections 7500.5, 31460.2, 31461.8, 31539.5, 31540, 31541, 31569, 31680.10, 45309.6, 45309.7, 50871.6, and 50871.7 To, and to Repeal and Add Section 31539 Of, the Government Code, Relating to Public Retirement Systems.
Author(s)
Fiona Ma
Co-Authors
Subjects
  • Public retirement: final compensation: computation: retirees
Major Actions
Introduced2/17/2010
Referred to Committee
Passed Assembly Committee on Public Employees, Retirement and Social Security4/21/2010
Passed Assembly Committee on Appropriations5/12/2010
Passed Assembly6/03/2010
Passed Senate Committee on Public Employment and Retirement6/23/2010
Passed Senate Committee on Appropriations8/02/2010
Passed Senate Committee on Appropriations8/12/2010
Passed Senate8/30/2010
Passed Assembly8/31/2010
Presented to the governor (enrolled)9/15/2010
Vetoed by Governor9/30/2010
Vetoed by Governor9/30/2010
Bill History
Chamber/CommitteeMotionDateResult
currently selectedAssembly Committee on Public Employees, Retirement and Social SecurityDo pass and be re-referred to the Committee on Appropriations.4/21/2010This motion PASSED the Assembly Committee on Public Employees, Retirement and Social Security
6 voted YES 0 voted NO 0 voted present/not voting
select this voteAssembly Committee on AppropriationsDo pass.5/12/2010This motion PASSED the Assembly Committee on Appropriations
15 voted YES 0 voted NO 2 voted present/not voting
select this voteAssemblyAB 1987 MA Assembly Third Reading6/03/2010This bill PASSED the Assembly
75 voted YES 0 voted NO 4 voted present/not voting
select this voteSenate Committee on Public Employment and RetirementDo pass, but re-refer to the Committee on Appropriations.6/23/2010This motion PASSED the Senate Committee on Public Employment and Retirement
5 voted YES 0 voted NO 1 voted present/not voting
select this voteSenate Committee on AppropriationsPlaced on Appropriations Suspense file.8/02/2010This motion PASSED the Senate Committee on Appropriations
10 voted YES 0 voted NO 1 voted present/not voting
select this voteSenate Committee on AppropriationsDo pass as amended.8/12/2010This motion PASSED the Senate Committee on Appropriations
11 voted YES 0 voted NO 0 voted present/not voting
select this voteSenateW/O REF. TO FILE AB1987 Ma8/30/2010This bill PASSED the Senate
28 voted YES 1 voted NO 10 voted present/not voting
select this voteAssemblyAB 1987 Ma Concurrence in Senate Amendments8/31/2010This bill PASSED the Assembly
77 voted YES 0 voted NO 1 voted present/not voting
ActionDateDescription
Introduced2/17/2010
2/17/2010Read first time. To print.
2/18/2010From printer. May be heard in committee March 20.
3/04/2010Referred to Com. on P.E.,R. & S.S.
4/15/2010From committee chair, with author's amendments: Amend, and re-refer to Com. on P.E.,R. & S.S. Read second time and amended.
4/19/2010Re-referred to Com. on P.E.,R. & S.S.
currently selectedVote4/21/2010Do pass and be re-referred to the Committee on Appropriations.
4/21/2010From committee: Do pass, and re-refer to Com. on APPR. Re-referred. (Ayes 6. Noes 0.) (April 21).
4/29/2010From committee chair, with author's amendments: Amend, and re-refer to Com. on APPR. Read second time and amended.
5/03/2010Re-referred to Com. on APPR.
select this voteVote5/12/2010Do pass.
5/13/2010From committee: Do pass. (Ayes 15. Noes 0.) (May 12).
5/17/2010Read second time. To third reading.
6/01/2010Read third time, amended, and returned to third reading. (Page 5418.).
6/03/2010Read third time, passed, and to Senate. (Ayes 75. Noes 0. Page 5555.)
select this voteAssembly Vote on Passage6/03/2010AB 1987 MA Assembly Third Reading
6/07/2010In Senate. Read first time. To Com. on RLS. for assignment.
6/10/2010Referred to Com. on P.E. & R.
select this voteVote6/23/2010Do pass, but re-refer to the Committee on Appropriations.
6/24/2010From committee: Do pass, and re-refer to Com. on APPR. Re-referred. (Ayes 5. Noes 0.) (June 23).
8/02/2010In committee: Set, first hearing. Referred to APPR suspense file. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on APPR.
select this voteVote8/02/2010Placed on Appropriations Suspense file.
select this voteVote8/12/2010Do pass as amended.
8/16/2010From committee: Amend, and do pass as amended. (Ayes 11. Noes 0.) (August 12).
8/17/2010Read second time and amended. Ordered to third reading.
8/23/2010Re-referred to Com. on RLS. by unanimous consent. Senate Rule 29.3(b) suspended. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on RLS.
8/27/2010Senate Rule 29.3(b) suspended. (Ayes 21. Noes 11. Page 4960.) From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on RLS.
8/30/2010Withdrawn from committee. Ordered to third reading. Read third time, passed, and to Assembly. (Ayes 28. Noes 1. Page 5015.)
select this voteSenate Vote on Passage8/30/2010W/O REF. TO FILE AB1987 Ma
8/31/2010In Assembly. Concurrence in Senate amendments pending. Senate amendments concurred in. To enrollment. (Ayes 77. Noes 0. Page 6923.)
select this voteAssembly Vote on Passage8/31/2010AB 1987 Ma Concurrence in Senate Amendments
9/15/2010Enrolled and to the Governor at 4:45 p.m.
Vetoed9/30/2010Vetoed by Governor.

Average contributions given to Assemblymembers from interest groups that…

supported this motion

State & local government employee unions [About]
Teachers unions [About]
Average given to Assemblymembers who voted:
$13,918
$19,241
YES$33,158
$0
$0
NO$0

opposed this motion

$542
$34,643
$1,700
YES$36,885
$0
$0
$0
NO$0
3 Organizations Supported and 3 Opposed; See Which Ones

Organizations that took a position on
An Act to Amend Sections 31460 and 31461 Of, to Add Sections 7500.5, 31460.2, 31461.8, 31539.5, 31540, 31541, 31569, 31680.10, 45309.6, 45309.7, 50871.6, and 50871.7 To, and to Repeal and Add Section 31539 Of, the Government Code, Relating to Public Retirement Systems.: Do pass and be re-referred to the Committee on Appropriations.

3 organizations supported this motion

American Federation of Teachers
Assembly Committee on Public Employees, Retirement & Social Security (2010, April 21). Bill Analysis AB 1987 4-21-2010. Retrieved August 31, 2010, from Leg Info.
Glendale City Employees Association
Assembly Committee on Public Employees, Retirement & Social Security (2010, April 21). Bill Analysis AB 1987 4-21-2010. Retrieved August 31, 2010, from Leg Info.
San Bernardino Public Employees Association
Assembly Committee on Public Employees, Retirement & Social Security (2010, April 21). Bill Analysis AB 1987 4-21-2010. Retrieved August 31, 2010, from Leg Info.

3 organizations opposed this motion

California Association of School Business Officials
Assembly Committee on Public Employees, Retirement & Social Security (2010, April 21). Bill Analysis AB 1987 4-21-2010. Retrieved August 31, 2010, from Leg Info.
California Peace Officers' Association
Assembly Committee on Public Employees, Retirement & Social Security (2010, April 21). Bill Analysis AB 1987 4-21-2010. Retrieved August 31, 2010, from Leg Info.
California State Association of Counties
Assembly Committee on Public Employees, Retirement & Social Security (2010, August 30). Bill Analysis AB 1987 4-21-2010. Retrieved August 31, 2010, from Leg Info.

Need proof?

View citations of support and opposition

Includes reported contributions to campaigns of Assemblymembers in office on day of vote, from interest groups invested in the vote according to MapLight, January 1, 2009 – December 31, 2010.
Contributions data source: FollowTheMoney.org

Contributions by Legislator

Namesort iconPartyDistrict$ From Interest Groups
That Supported
$ From Interest Groups
That Opposed
Vote
Warren FurutaniDCA-55$108,165$29,475Yes
Diane HarkeyRCA-73$0$11,450Yes
Ed HernandezDCA-57$40,879$30,927Yes
Fiona MaDCA-12$28,900$33,000Yes
Brian NestandeRCA-64$0$3,950Yes
Alberto TorricoDCA-20$21,005$112,507Yes

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NamePartyDistrict$ From Interest Groups
That Supported
$ From Interest Groups
That Opposed
Vote
Warren FurutaniDCA-55$108,165$29,475Yes
Diane HarkeyRCA-73$0$11,450Yes
Ed HernandezDCA-57$40,879$30,927Yes
Fiona MaDCA-12$28,900$33,000Yes
Brian NestandeRCA-64$0$3,950Yes
Alberto TorricoDCA-20$21,005$112,507Yes

Interest Groups that supported this motion

$ Donated
State & local government employee unions$115,443
Teachers unions$83,506

Interest Groups that opposed this motion

$ Donated
Police & fire fighters unions and associations$207,859
Municipal & county government organizations$10,200
Civil servant/public employee$3,250
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