Senate Bill 1033 - Pension Reciprocity

February 13, 2018

Summary:

SB 1033 requires entities with contract with the California Public Employees' Retirement System (CalPERS) to bear full financial responsibility for actions that would increase actuarial liability for a member’s pension contributions.

Issue Background:

This bill SB 1033 simply repositions financial responsibility upon appropriate agencies which increase compensation and benefits to bear all actuarial liability resulting from such action. Currently, when an employee’s compensation is increased, the actuarial liability related to their pension is increased, as well; and all previous employers share the increase in actuarial liability with the current employer of an employee’s compensation is increased.

Previous employer agencies therefore may have to increase their contributions to former employees beyond projections they made when they were directly responsible for the employee. SB 1033 simply repositions financial responsibility upon appropriate agencies which increase compensation and benefits to bear all actuarial liability resulting from such action.

Support:

Oppose:

Articles:

Contact:

Spencer Street, (916) 651-4037
Spencer.Street@sen.ca.gov