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.

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

• Warren Furutani
• Alberto Torrico

Subjects

• Public retirement: final compensation: computation: retirees

Major Actions

Introduced	2/17/2010
Referred to Committee
Passed Assembly Committee on Public Employees, Retirement and Social Security	4/21/2010
Passed Assembly Committee on Appropriations	5/12/2010
Passed Assembly	6/03/2010
Passed Senate Committee on Public Employment and Retirement	6/23/2010
Passed Senate Committee on Appropriations	8/02/2010
Passed Senate Committee on Appropriations	8/12/2010
Passed Senate	8/30/2010
Passed Assembly	8/31/2010
Presented to the governor (enrolled)	9/15/2010
Vetoed by Governor	9/30/2010
Vetoed by Governor	9/30/2010

Bill History

• All Votes
• All Actions

	Chamber/Committee	Motion	Date	Result
select this vote	Assembly Committee on Public Employees, Retirement and Social Security	Do pass and be re-referred to the Committee on Appropriations.	4/21/2010	This 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 vote	Assembly Committee on Appropriations	Do pass.	5/12/2010	This motion PASSED the Assembly Committee on Appropriations 15 voted YES 0 voted NO 2 voted present/not voting
select this vote	Assembly	AB 1987 MA Assembly Third Reading	6/03/2010	This bill PASSED the Assembly 75 voted YES 0 voted NO 4 voted present/not voting
select this vote	Senate Committee on Public Employment and Retirement	Do pass, but re-refer to the Committee on Appropriations.	6/23/2010	This motion PASSED the Senate Committee on Public Employment and Retirement 5 voted YES 0 voted NO 1 voted present/not voting
select this vote	Senate Committee on Appropriations	Placed on Appropriations Suspense file.	8/02/2010	This motion PASSED the Senate Committee on Appropriations 10 voted YES 0 voted NO 1 voted present/not voting
select this vote	Senate Committee on Appropriations	Do pass as amended.	8/12/2010	This motion PASSED the Senate Committee on Appropriations 11 voted YES 0 voted NO 0 voted present/not voting
select this vote	Senate	W/O REF. TO FILE AB1987 Ma	8/30/2010	This bill PASSED the Senate 28 voted YES 1 voted NO 10 voted present/not voting
currently selected	Assembly	AB 1987 Ma Concurrence in Senate Amendments	8/31/2010	This bill PASSED the Assembly 77 voted YES 0 voted NO 1 voted present/not voting

	Action	Date	Description
	Introduced	2/17/2010
		2/17/2010	Read first time. To print.
		2/18/2010	From printer. May be heard in committee March 20.
		3/04/2010	Referred to Com. on P.E.,R. & S.S.
		4/15/2010	From committee chair, with author's amendments: Amend, and re-refer to Com. on P.E.,R. & S.S. Read second time and amended.
		4/19/2010	Re-referred to Com. on P.E.,R. & S.S.
select this vote	Vote	4/21/2010	Do pass and be re-referred to the Committee on Appropriations.
		4/21/2010	From committee: Do pass, and re-refer to Com. on APPR. Re-referred. (Ayes 6. Noes 0.) (April 21).
		4/29/2010	From committee chair, with author's amendments: Amend, and re-refer to Com. on APPR. Read second time and amended.
		5/03/2010	Re-referred to Com. on APPR.
select this vote	Vote	5/12/2010	Do pass.
		5/13/2010	From committee: Do pass. (Ayes 15. Noes 0.) (May 12).
		5/17/2010	Read second time. To third reading.
		6/01/2010	Read third time, amended, and returned to third reading. (Page 5418.).
		6/03/2010	Read third time, passed, and to Senate. (Ayes 75. Noes 0. Page 5555.)
select this vote	Assembly Vote on Passage	6/03/2010	AB 1987 MA Assembly Third Reading
		6/07/2010	In Senate. Read first time. To Com. on RLS. for assignment.
		6/10/2010	Referred to Com. on P.E. & R.
select this vote	Vote	6/23/2010	Do pass, but re-refer to the Committee on Appropriations.
		6/24/2010	From committee: Do pass, and re-refer to Com. on APPR. Re-referred. (Ayes 5. Noes 0.) (June 23).
		8/02/2010	In 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 vote	Vote	8/02/2010	Placed on Appropriations Suspense file.
select this vote	Vote	8/12/2010	Do pass as amended.
		8/16/2010	From committee: Amend, and do pass as amended. (Ayes 11. Noes 0.) (August 12).
		8/17/2010	Read second time and amended. Ordered to third reading.
		8/23/2010	Re-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.
		8/27/2010	Senate 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.
		8/30/2010	Withdrawn from committee. Ordered to third reading. Read third time, passed, and to Assembly. (Ayes 28. Noes 1. Page 5015.)
select this vote	Senate Vote on Passage	8/30/2010	W/O REF. TO FILE AB1987 Ma
		8/31/2010	In Assembly. Concurrence in Senate amendments pending. Senate amendments concurred in. To enrollment. (Ayes 77. Noes 0. Page 6923.)
currently selected	Assembly Vote on Passage	8/31/2010	AB 1987 Ma Concurrence in Senate Amendments
		9/15/2010	Enrolled and to the Governor at 4:45 p.m.
	Vetoed	9/30/2010	Vetoed by Governor.