BILL NUMBER: AB 1633	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Wagner

                        FEBRUARY 9, 2012

   An act to add Section 7514.7 to the Government Code, relating to
public employees' retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1633, as introduced, Wagner. Public employees' retirement.
   Existing state and local public retirement systems provide defined
benefits based on age at retirement, service credit, and final
compensation. Existing law defines final compensation for various
employment classifications in connection with the benefits provided
by these systems.
   This bill would prohibit the retirement benefit paid to a member
of any public retirement system whose service is not included in the
federal social security system from exceeding $100,000. The bill
would prohibit the retirement benefit paid to a member of any public
retirement system whose service is included in the federal social
security system from exceeding $80,000. Those amounts would be
adjusted annually by each public retirement system using the Consumer
Price Index for All Urban Consumers.
    The above-described provisions would apply to a public employee
who is first employed by a public agency and becomes a member of any
public retirement system on or after January 1, 2013.
   The bill would specify that if any of these provisions are in
conflict with a memorandum of understanding that is current and in
effect on January 1, 2013, the memorandum of understanding would be
controlling while it remains in effect, but that upon expiration of
that memorandum of understanding, these provisions would be
controlling and may not be superseded by a subsequent memorandum of
understanding.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 7514.7 is added to the Government Code, to
read:
   7514.7.  (a) (1) The retirement benefit paid to a member of any
public retirement system whose service is not included in the federal
system shall not exceed one hundred thousand dollars ($100,000) per
year, adjusted by each system annually for inflation using the
Consumer Price Index for All Urban Consumers.
   (2) The retirement benefit paid to a member of any public
retirement system whose service is included in the federal system
shall not exceed eighty thousand dollars ($80,000) per year, adjusted
by each system annually for inflation using the Consumer Price Index
for All Urban Consumers.
   (b) Notwithstanding any other law or any provision of an expired
memorandum of understanding, this section shall apply to a public
employee who is employed by a public agency for the first time and
becomes a member of a public retirement system on or after January 1,
2013.
   (c) This section shall not apply to:
   (1) Former public employees employed before January 1, 2013, who
return to employment in the same public agency on or after January 1,
2013.
   (2) State employees hired prior to January 1, 2013, who were
subject to Section 20281.5 during the first 24 months of state
employment.
   (3) Public employees on an approved leave of absence employed
prior to January 1, 2013, who return to active employment on or after
January 1, 2013.
   (d) For purposes of this section, the following definitions shall
apply:
   (1) "Federal system" means the old age, survivors, disability, and
health insurance provisions of the Social Security Act.
   (2) "Public agency" means the state or a county, city, city and
county, district, school district, authority, university, or any
public or municipal corporation, political subdivision, or other
public agency of the state, or any department, division, bureau,
board, commission, agency, or instrumentality of any of these
entities.
   (3) "Public employee" means any person employed by any public
agency.
   (4) "Public retirement system" means all state and local public
retirement systems, excluding the University of California Retirement
System and any retirement systems created for a charter city or
charter county.
   (e) If this section is in conflict with a memorandum of
understanding that is current and in effect on January 1, 2013, the
memorandum of understanding shall be controlling while it remains in
effect. Upon expiration of the memorandum of understanding that is in
effect and current on January 1, 2013, this section shall be
controlling and may not be superseded by a subsequent memorandum of
understanding.