CaliforniaPublic employees' retirement benefits.
What it does
The Public Employees' Retirement Law (PERL) establishes the Public Employees' Retirement System (PERS) to provide a defined benefit to members of the system based on final compensation, credited service, and age at retirement, subject to certain variations. Existing law creates the Public Employees' Retirement Fund, which is continuously appropriated for purposes of PERS, including depositing employer and employee contributions. Under the California Constitution, assets of a public pension or retirement system are trust funds.
More detail
The California Public Employees' Pension Reform Act of 2013 (PEPRA) establishes a variety of requirements and restrictions on public employers offering defined benefit pension plans. In this regard, PEPRA restricts the amount of compensation that may be applied for purposes of calculating a defined pension benefit for a new member, as defined, by restricting it to specified percentages of the contribution and benefit base under a specified federal law with respect to old age, survivors, and disability insurance benefits.
Existing law, the Teachers' Retirement Law, establishes the State Teachers' Retirement System (STRS) and creates the Defined Benefit Program of the State Teachers' Retirement Plan, which provides a defined benefit to members of the program, based on final compensation, creditable service, and age at retirement, subject to certain variations.
This bill, for service performed on and after January 1, 2027, would prohibit the pensionable compensation for calendar year 2027 used to calculate the defined benefit paid to a new member of a retirement system subject to PEPRA who retires from the system from exceeding specified percentages of the contribution and benefit base under the specified federal law with respect to old age, survivors, and disability insurance benefits. The bill would make related, conforming changes to these provisions on pensionable compensation. The bill also would require a new member of STRS to be subject to specified limits of the Teachers' Retirement Law.
PEPRA requires each retirement system that offers a defined benefit plan for safety members of the system to use one of 3 formulas for safety members, 2% at age 57, 2.5% at age 57, or 2.7% at age 57.
This bill would establish new retirement formulas, for employees first hired on or after January 1, 2027, as 2.5% at age 55, 2.7% at age 55, or 3% at age 55, subject to certain exceptions. For new members hired on or after January 1, 2013, who are safety members, the bill would require employers to adjust the formulas for service performed on or after January 1, 2027, to offer the formula that has the same fraction at age 55 as the fraction at age 57 in the formula the employer offered pursuant to existing law. The bill would authorize a public employer and a recognized employee organization to negotiate a prospective increase to the retirement benefit formulas for safety members and new safety members, consistent with the formulas permitted under PEPRA, including the new formulas described above.
This bill would authorize an employer and its employees to agree in a memorandum of understanding to be subject to a higher safety plan or a lower safety plan, subject to certain requirements, including that the memorandum of understanding is collectively bargained in accordance with applicable laws.
By increasing the contribution to continuously appropriated funds, and by increasing expenditures from those funds, this bill would make an appropriation.
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 20Vetoed by Governor Gavin Newsom.Latest
- Sep 9Enrolled and presented to the Governor at 1 p.m.To Governor
- Aug 31
- Vote recorded AB 1383 McKinnor Concurrence in Senate Amendments. Result: pass.Lower
- Aug 30Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 69. Noes 2. Page 6908.).Major
- Vote recorded 3rd Reading AB1383 McKinnor et al. By Grayson. Result: pass.Upper
- Aug 30In Assembly. Concurrence in Senate amendments pending.
- Aug 30Read third time. Passed. Ordered to the Assembly. (Ayes 33. Noes 0.).Passed Senate
- Aug 28Read second time. Ordered to third reading.Minor
- Aug 27Read third time and amended. Ordered to second reading.Major
- Aug 13Read second time. Ordered to third reading.Minor
- Vote recorded Do pass. Result: pass.Upper
- Aug 13From committee: Do pass. (Ayes 7. Noes 0.) (August 13).Minor
- Aug 3In committee: Referred to APPR. suspense file.Minor
- Vote recorded Placed on suspense file. Result: pass.Upper
- Jul 1From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on APPR.Major
- Jun 24From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0.) (June 24). Re-referred to Com. on APPR.Minor
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
- May 13From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on L., P.E. & R.Major
- May 6Referred to Com. on L., P.E. & R.Minor
- Jan 29In Senate. Read first time. To Com. on RLS. for assignment.Minor
- Vote recorded AB 1383 McKinnor Assembly Third Reading. Result: pass.Lower
- Jan 29Read third time. Passed. Ordered to the Senate. (Ayes 70. Noes 2. Page 3878.)Passed Assembly
- Jan 27Measure version as amended on January 22 corrected.Major
- Jan 26Read second time. Ordered to third reading.Minor
- Jan 22Read second time and amended. Ordered returned to second reading.Major
- Vote recorded Do pass as amended. Result: pass.Lower
- Jan 22From committee: Amend, and do pass as amended. (Ayes 12. Noes 0.) (January 22).Major
- Jan 22Assembly Rule 63 suspended. (Page 3806.)
- 2025
- May 23In committee: Hearing postponed by committee.
- May 23Coauthors revised.
- May 14In committee: Set, first hearing. Referred to APPR. suspense file.Minor
- Apr 23From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (April 23). Re-referred to Com. on APPR.Minor
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Apr 23Coauthors revised.
- Apr 21Re-referred to Com. on P. E. & R.Minor
- Apr 11From committee chair, with author's amendments: Amend, and re-refer to Com. on P. E. & R. Read second time and amended.Major
- Mar 11Re-referred to Com. on P. E. & R.Minor
- Mar 10From committee chair, with author's amendments: Amend, and re-refer to Com. on P. E. & R. Read second time and amended.Major
- Mar 10Referred to Com. on P. E. & R.Minor
- Feb 24Read first time.Minor
- Feb 22From printer. May be heard in committee March 24.
- Feb 21Introduced. To print.Introduced