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.
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.
- Association of California Cities-Orange County (pdf)
- City of San Marcos (pdf)
- Citizens For Sustainable Pension Plans (docx)
- Cash Flow: City Wage Focus Median Management Salaries Soar Above Peer Cities, Santa Monica Mirror, 2/23/2018
- Retirement Debt: What's the Problem and How Does It Affect You?, CALmatters 2/21/2017
- State lawmakers maneuver as CalPERS brings more change, The Bond Buyer, 2/21/2018
- Portability of pension benefits among jobs, Monthly Labor Review, July 1994
- Pension bills are common sense – yet have little chance of passage in Capitol, California Policy Center, 4/18/2018
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