Senate Bill 681 - Local Pension Control

Summary:

SB 681 will give local jurisdictions the ability to leave their contracts with the California Public Employees' Retirement System (CalPERS) for their employees’ retirement plans without being excessively charged or penalized.

Issue Background:

This bill will allow jurisdictions that contract with the California Public Employees Retirement System (CalPERS) for their employees’ retirement plans to leave their defined benefit plan without excessive costs, penalties, etc.  If contract jurisdictions believe they can contract or run their own retirement system cheaper or more effectively, they should have the ability to leave CalPERS without being excessively penalized. It is fair to get out what you paid in with minor fees associated. But being unreasonably punished should not be encouraged.

Articles

Contact

Eric Dietz, Policy Consultant
eric.dietz@sen.ca.gov, (916) 651-4037