Senate Bill 32 - California Public Employees' Pension Reform Act of 2018 (PEPRA II)

Summary:

SB 32 establishes the California Public Employees' Pension Reform Act of 2017 (PEPRA II) which continues substantial reform to California’s broken public employee pension system began in 2012.

Issue Background:

SB 32 will specifically establish a Citizens' Pension Oversight Committee to review pensions year by year, and report to the public on actual pension costs and obligations; base final compensation for all public employees on an average of five years of highest years’ salary; prohibit or “freeze” the ability for cost-of-living adjustments until CalPERS and CalSTRS are 100% funded; require pension boards to create a defined benefit/defined contribution hybrid pension plan for new employees who opt-into the system; require that any employee who separates from the state pension system for a different job and returns after more than one year be re-classified in that pension system as a “new employee”; require CalPERS to limit special compensation categories by significantly narrowing their list of special compensation; define pensionable pay as “the normal monthly rate of pay or base pay” for all public employees; require pension boards to narrow the “safety employees” classification to include only employees who regularly perform their duties at great risk and who are in harm’s way; require CalSTRS and CalPERS to build/increase funding levels by 10% each year until the systems are 100% funded; require CalPERS to reduce its unfunded liabilities to 1980 levels; to be achieved by 2030.

Articles

Contact

Eric Dietz, (916) 651-4037
Eric.Dietz@sen.ca.gov