AMENDED IN SENATE MAY 13, 2026
AMENDED IN ASSEMBLY JANUARY 22, 2026
AMENDED IN ASSEMBLY APRIL 11, 2025
AMENDED IN ASSEMBLY MARCH 10, 2025
california legislature—2025–26 regular session
ASSEMBLY BILL No. 1383
Introduced by Assembly Member McKinnor
(Coauthors: Assembly MembersAddis,Ahrens, Alanis, Ávila Farías, Boerner, Calderon, Castillo, Chen, Connolly, Flora, Hoover, Krell, Nguyen, Ortega, Pacheco, Patel, Patterson, Ramos, Ransom, Sharp-Collins, and Solache)
(Coauthors: Senators Grayson Gonzalez, Grayson, and Pérez) February 21, 2025
An act to amend Sections 7522.10 and 7522.25 7522.02, 7522.10, 7522.15, 7522.25, and 20516 of, and to add Sections 7522.19 and 7522.26 to, the Government Code, relating to public employees’ retirement, and making an appropriation therefor.
legislative counsel’s digest
AB 1383, as amended, McKinnor. Public employees’ retirement benefits: safety members. benefits.
The Public Employees’ Retirement Law (PERL) establishes the Public Employees’ Retirement System (PERS) to provide a defined benefit to members of the system based on final compensation, credited service, and age at retirement, subject to certain variations. Existing law creates the Public Employees’ Retirement Fund, which is continuously appropriated for purposes of PERS, including depositing employer and
95 employee contributions. Under the California Constitution, assets of a public pension or retirement system are trust funds.
The California Public Employees’ Pension Reform Act of 2013 (PEPRA) establishes a variety of requirements and restrictions on public employers offering defined benefit pension plans. In this regard, PEPRA restricts the amount of compensation that may be applied for purposes of calculating a defined pension benefit for a new member, as defined, by restricting it to specified percentages of the contribution and benefit base under a specified federal law with respect to old age, survivors, and disability insurance benefits.
Existing law, the Teachers’ Retirement Law, establishes the State Teachers’ Retirement System (STRS) and creates the Defined Benefit Program of the State Teachers’ Retirement Plan, which provides a defined benefit to members of the program, based on final compensation, creditable service, and age at retirement, subject to certain variations.
This bill, for service performed on and after January 1, 2027, would require a retirement system subject to PEPRA to adjust pensionable compensation limits to be consistent with prohibit the pensionable compensation for calendar year 2027 used to calculate the defined benefit paid to a new member of a retirement system subject to PEPRA who retires from the system from exceeding specified percentages of the contribution and benefit base under the specified federal law with respect to old age, survivors, and disability insurance benefits. The bill would make related, conforming changes to these provisions on pensionable compensation. The bill also would require a new member of STRS to be subject to specified limits of the Teachers’ Retirement Law.
PEPRA requires each retirement system that offers a defined benefit plan for safety members of the system to use one of 3 formulas for safety members, 2% at age 57, 2.5% at age 57, or 2.7% at age 57.
This bill would establish new retirement formulas, for employees first hired on or after January 1, 2027, as 2.5% at age 55, 2.7% at age 55, or 3% at age 55. 55, subject to certain exceptions. For new members hired on or after January 1, 2013, who are safety members, the bill would require employers to adjust the formulas for service performed on or after January 1, 2027, to offer one of the 3 formulas for safety members that is closest to the formula that has the same fraction at age 55 as the fraction at age 57 in the formula the employer provided offered pursuant to existing law. The bill would authorize a public employer and a recognized employee organization to negotiate a prospective 95 AB 1383 — 2 —
increase to the retirement benefit formulas for safety members and new safety members, consistent with the formulas permitted under PEPRA, including the new formulas described above.
This bill would authorize an employer and its employees to agree in a memorandum of understanding to be subject to a higher safety plan or a lower safety plan, subject to certain requirements, including that the memorandum of understanding is collectively bargained in accordance with applicable laws.
By increasing the contribution to continuously appropriated funds, and by increasing expenditures from those funds, this bill would make an appropriation.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
line 1 SECTION 1. The Legislature finds and declares the following:
line 2 (a) California is experiencing significant challenges in the line 3 recruitment and retention of safety personnel, including firefighters, line 4 police officers, and other first responders. Competitive retirement line 5 benefits are critical to ensuring an adequate and well-trained public line 6 safety workforce.
line 7 (b) Firefighters face heightened risks of occupational diseases, line 8 including elevated cancer rates. Studies have shown that firefighters line 9 have a significantly higher risk of developing multiple types of line 10 cancer due to prolonged exposure to carcinogens and hazardous line 11 materials in the line of duty. In 2022, the International Agency for line 12 Research on Cancer identified the occupation of firefighting as a line 13 Class 1 carcinogen.
line 14 (c) The physical demands of safety positions are extraordinary, line 15 requiring peak physical performance, endurance, and exposure to line 16 high-stress, life-threatening situations on a daily basis. These line 17 factors contribute to increased rates of disability, injury, and early line 18 retirement compared to other professions.
line 19 (d) Adjusting the retirement age and pension formulas for safety line 20 employees is necessary to maintain a sustainable and effective line 21 workforce while addressing the unique health and occupational line 22 challenges faced by these personnel.
line 23 (e) California has a strong history of protecting and promoting line 24 collective bargaining rights and providing opportunities for 95 — 3 — AB 1383
line 1 employees and employers to bargain over certain retirement line 2 benefits that further enhances opportunities for public employers line 3 and employees to partner on stronger retirement security. line 4 (f) The compensation cap established under the California Public line 5 Employees’ Pension Reform Act of 2013 places limits that are line 6 significantly less than the current federal limit. To reflect current line 7 wage rates across both safety and miscellaneous employees, it is line 8 necessary to reconsider the appropriate compensation cap level, line 9 consistent with federal limits.
line 10 SEC. 2. Section 7522.02 of the Government Code is amended line 11 to read:
line 12 7522.02. (a) (1) Notwithstanding any other law, except as line 13 provided in this article, on and after January 1, 2013, this article line 14 shall apply to all state and local public retirement systems and to line 15 their participating employers, including the Public Employees’ line 16 Retirement System, the State Teachers’ Retirement System, the line 17 Legislators’ Retirement System, the Judges’ Retirement System, line 18 the Judges’ Retirement System II, county and district retirement line 19 systems created pursuant to the County Employees Retirement line 20 Law of 1937 (Chapter 3 (commencing with Section 31450) of Part line 21 3 of Division 4 of Title 3), independent public retirement systems, line 22 and to individual retirement plans offered by public employers. line 23 However, this article shall be subject to the Internal Revenue Code line 24 and Section 17 of Article XVI of the California Constitution. The line 25 administration of the requirements of this article shall comply with line 26 applicable provisions of the Internal Revenue Code and the line 27 Revenue and Taxation Code.
line 28 (2) Notwithstanding paragraph (1), this article shall not apply line 29 to the entities described in Section 9 of Article IX of, and Sections line 30 4 and 5 of Article XI of, the California Constitution, except to the line 31 extent that these entities continue to be participating employers in line 32 any retirement system governed by state statute. Accordingly, any line 33 retirement plan approved before January 1, 2013, by the voters of line 34 any entity excluded from coverage by this section shall not be line 35 affected by this article.
line 36 (3) (A) Notwithstanding paragraph (1), this article shall not line 37 apply to a public employee whose interests are protected under line 38 Section 5333(b) of Title 49 of the United States Code until a federal line 39 district court rules that the United States Secretary of Labor, or line 40 their designee, erred in determining that the application of this 95 AB 1383 — 4 —
line 1 article precludes certification under that section, or until January line 2 1, 2016, whichever is sooner.
line 3 (B) If a federal district court upholds the determination of the line 4 United States Secretary of Labor, or their designee, that application line 5 of this article precludes them from providing a certification under line 6 Section 5333(b) of Title 49 of the United States Code, this article line 7 shall not apply to a public employee specified in subparagraph line 8 (A).
line 9 (4) Notwithstanding paragraph (1), this article shall not apply line 10 to a multiemployer plan authorized by Section 302(c)(5) of the line 11 federal Taft-Hartley Act (29 U.S.C. Sec. 186(c)(5)) if the public line 12 employer began participation in that plan prior to January 1, 2013, line 13 and the plan is regulated by the federal Employee Retirement line 14 Income Security Act of 1974 (29 U.S.C. Sec. 1001 et seq.). line 15 (b) The benefit plan required by this article shall apply to public line 16 employees who are new members as defined in Section 7522.04. line 17 (c) (1) Individuals who were employed by any public employer line 18 before January 1, 2013, and who became employed by a subsequent line 19 public employer for the first time on or after January 1, 2013, shall line 20 be subject to the retirement plan that would have been available line 21 to employees of the subsequent employer who were first employed line 22 by the subsequent employer on or before December 31, 2012, if line 23 the individual was subject to concurrent membership for which line 24 creditable service was performed in the previous six months or line 25 reciprocity established under any of the following provisions:
line 26 (A) Article 5 (commencing with Section 20350) of Chapter 3 line 27 of Part 3 of Division 5 of Title 2.
line 28 (B) Chapter 3 (commencing with Section 31450) of Part 3 of line 29 Division 4 of Title 3.
line 30 (C) Any agreement between public retirement systems to provide line 31 reciprocity to members of the systems.
line 32 (D) Section 22115.2 of the Education Code.
line 33 (2) An individual who was employed before January 1, 2013, line 34 and who, without a separation from employment, changed line 35 employment positions and became subject to a different defined line 36 benefit plan in a different public retirement system offered by their line 37 employer shall be subject to that defined benefit plan as it would line 38 have been available to employees who were first employed on or line 39 before December 31, 2012.
95 — 5 — AB 1383
line 1 (d) If a public employer, before January 1, 2013, offers a defined line 2 benefit pension plan that provides a defined benefit formula with line 3 a lower benefit factor at normal retirement age and results in a line 4 lower normal cost than the defined benefit formula required by line 5 this article, that employer may continue to offer that defined benefit line 6 formula instead of the defined benefit formula required by this line 7 article, and shall not be subject to the requirements of Section line 8 7522.10 for pensionable compensation subject to that formula. line 9 However, if the employer adopts a new defined benefit formula line 10 on or after January 1, 2013, that formula must conform to the line 11 requirements of this article or must be determined and certified by line 12 the retirement system’s chief actuary and the retirement board to line 13 have no greater risk and no greater cost to the employer than the line 14 defined benefit formula required by this article and must be line 15 approved by the Legislature. New members of the defined benefit line 16 plan may only participate in the lower cost defined benefit formula line 17 that was in place before January 1, 2013, or a defined benefit line 18 formula that conforms to the requirements of this article or is line 19 approved by the Legislature as provided in this subdivision. line 20 (e) If a public employer, before January 1, 2013, offers a line 21 retirement benefit plan that consists solely of a defined contribution line 22 plan, that employer may continue to offer that plan instead of the line 23 defined benefit pension plan required by this article. However, if line 24 the employer adopts a new defined benefit pension plan or defined line 25 benefit formula on or after January 1, 2013, that plan or formula line 26 must conform to the requirements of this article or must be line 27 determined and certified by the retirement system’s chief actuary line 28 and the system’s board to have no greater risk and no greater cost line 29 to the employer than the defined benefit formula required by this line 30 article and must be approved by the Legislature. New members of line 31 the employer’s plan may only participate in the defined line 32 contribution plan that was in place before January 1, 2013, or a line 33 defined contribution plan or defined benefit formula that conforms line 34 to the requirements of this article. This subdivision shall not be line 35 construed to prohibit an employer from offering a defined line 36 contribution plan on or after January 1, 2013, either with or without line 37 a defined benefit plan, whether or not the employer offered a line 38 defined contribution plan prior to that date.
line 39 (f) (1) If, on or after January 1, 2013, the Cities of Brea and line 40 Fullerton form a joint powers authority pursuant to the provisions 95 AB 1383 — 6 —
line 1 of the Joint Exercise of Powers Act (Article 1 (commencing with line 2 Section 6500) of Chapter 5), that joint powers authority may line 3 provide employees the defined benefit plan or formula that those line 4 employees received from their respective employers prior to the line 5 exercise of a common power, to which the employee is associated, line 6 by the joint powers authority to any employee of the City of Brea, line 7 the City of Fullerton, or a city described in paragraph (2) who is line 8 not a new member and subsequently is employed by the joint line 9 powers authority within 180 days of the city providing for the line 10 exercise of a common power, to which the employee was line 11 associated, by the joint powers authority.
line 12 (2) On or before January 1, 2017, a city in Orange County that line 13 is contiguous to the City of Brea or the City of Fullerton may join line 14 the joint powers authority described in paragraph (1) but not more line 15 than three cities shall be permitted to join.
line 16 (3) The formation of a joint powers authority on or after January line 17 1, 2013, shall not act in a manner as to exempt a new employee line 18 or a new member, as defined by Section 7522.04, from the line 19 requirements of this article. New members may only participate line 20 in a defined benefit plan or formula that conforms to the line 21 requirements of this article.
line 22 (g) (1) If, on or after January 1, 2013, the Belmont Fire line 23 Protection District, the Estero Municipal Improvement District, line 24 and the City of San Mateo form a joint powers authority pursuant line 25 to the provisions of the Joint Exercise of Powers Act (Article 1 line 26 (commencing with Section 6500) of Chapter 5), that joint powers line 27 authority may provide employees the defined benefit plan or line 28 formula that those employees received from their respective line 29 employers prior to the exercise of a common power, to which the line 30 employee is associated, by the joint powers authority to any line 31 employee of the Belmont Fire Protection District, the Estero line 32 Municipal Improvement District, and the City of San Mateo who line 33 is not a new member and subsequently is employed by the joint line 34 powers authority within 180 days of the agency providing for the line 35 exercise of a common power, to which the employee was line 36 associated, by the joint powers authority.
line 37 (2) The formation of a joint powers authority on or after January line 38 1, 2013, shall not act in a manner as to exempt a new employee line 39 or a new member, as defined by Section 7522.04, from the line 40 requirements of this article. New members may only participate 95 — 7 — AB 1383
line 1 in a defined benefit plan or formula that conforms to the line 2 requirements of this article.
line 3 (h) (1) On or after January 1, 2026, the Pajaro Regional Flood line 4 Management Agency, a joint powers authority formed pursuant line 5 to the provisions of the Joint Exercise of Powers Act (Chapter 5 line 6 (commencing with Section 6500)), may provide a defined benefit line 7 plan or formula pursuant to paragraph (2) to an employee of a line 8 member agency of the joint powers authority or of another public line 9 agency, as defined in Section 20056, who is not a new member line 10 and who is subsequently employed by the joint powers authority line 11 within 180 days of the effective date of the retirement plan contract line 12 amendment made pursuant to this section.
line 13 (2) On or before April 1, 2026, the Pajaro Regional Flood line 14 Management Agency may select a defined benefit plan or formula line 15 offered by one of its member agencies prior to the exercise of a line 16 common power which the member agency offered to its employees line 17 on December 31, 2012, and designate that formula for its line 18 employees as specified in paragraph (1).
line 19 (3) This subdivision does not exempt a new employee or a new line 20 member from the requirements of this article. New members may line 21 only participate in a defined benefit plan or formula that conforms line 22 to the requirements of this article.
line 23 (i) The Judges’ Retirement System and the Judges’ Retirement line 24 System II shall not be required to adopt the defined benefit formula line 25 required by Section 7522.20 or 7522.25 7522.20, 7522.25, or line 26 7522.26, or the compensation limitations defined in Section line 27 7522.10.
line 28 (j) This article shall not be construed to provide membership in line 29 any public retirement system for an individual who would not line 30 otherwise be eligible for membership under that system’s line 31 applicable rules or laws.
line 32 (k) On and after January 1, 2013, each public retirement system line 33 shall modify its plan or plans to comply with the requirements of line 34 this article and may adopt regulations or resolutions for this line 35 purpose.
line 36 (l) On and after January 1, 2024, a county and a trial court that line 37 separate their joint contract into individual contracts pursuant to line 38 Section 20471.2 may provide employees the defined benefit plan line 39 or formula that those employees received from their respective line 40 employers prior to the exercise of the option to separate, provided 95 AB 1383 — 8 —
line 1 that the employee subsequently does not otherwise meet the line 2 definition of a new employee.
line 3 SEC. 2.
line 4 SEC. 3. Section 7522.10 of the Government Code is amended line 5 to read:
line 6 7522.10. (a) On and after January 1, 2013, each public line 7 retirement system shall modify its plan or plans to comply with line 8 the requirements of this section for each public employer that line 9 participates in the system.
line 10 (b) Whenever pensionable compensation, as defined in Section line 11 7522.34, is used in the calculation of a benefit, the pensionable line 12 compensation shall be subject to the limitations set forth in line 13 subdivision (c).
line 14 (c) (1) The For service performed on January 1, 2013, to line 15 December 31, 2026, inclusive, the pensionable compensation used line 16 to calculate the defined benefit paid to a new member who retires line 17 from the system shall not exceed the following applicable line 18 percentage of the contribution and benefit base specified in Section line 19 430(b) of Title 42 of the United States Code on January 1, 2013:
line 20 2013, as adjusted under paragraph (1) of subdivision (d):
line 21 (A) One hundred percent for a member whose service is included line 22 in the federal system.
line 23 (B) One hundred twenty percent for a member whose service line 24 is not included in the federal system.
line 25 (2) On For service performed on and after January 1, 2027, a line 26 retirement system subject to this article shall adjust the pensionable line 27 compensation limits established by this subdivision to be consistent line 28 with used to calculate the defined benefit paid to a new member line 29 who retires from the system shall not exceed the following line 30 applicable percentage of the contribution and benefit base specified line 31 in Section 430(b) of Title 42 of the United States Code on January line 32 1, 2027: 2027, as adjusted under paragraph (1) of subdivision (d):
line 33 (A) One hundred percent for a member whose service is included line 34 in the federal system.
line 35 (B) One hundred thirty-five percent for a member whose service line 36 is not included in the federal system.
line 37 (3) A new member of the State Teachers’ Retirement System line 38 shall be subject to the limit established pursuant to subdivision (d) line 39 of Section 22119.3 of, or subdivision (c) of Section 26139.5 of, line 40 the Education Code.
95 — 9 — AB 1383
line 1 (d) (1) The retirement system shall adjust the pensionable line 2 compensation described in subdivision (c) based on the annual line 3 changes to the Consumer Price Index for All Urban Consumers:
line 4 U.S. City Average, calculated by dividing the Consumer Price line 5 Index for All Urban Consumers: U.S. City Average, for the month line 6 of September in the calendar year preceding the adjustment by the line 7 Consumer Price Index for All Urban Consumers: U.S. City line 8 Average, for the month of September of the previous year rounded line 9 to the nearest thousandth. The adjustment shall be effective line 10 annually on January 1, beginning in 2014. 2014 for paragraph (1) line 11 of subdivision (c) and 2028 for paragraph (2) of subdivision (c). line 12 (2) The Legislature reserves the right to modify the requirements line 13 of this subdivision with regard to all public employees subject to line 14 this section, except that the Legislature may not modify these line 15 provisions in a manner that would result in a decrease in benefits line 16 accrued prior to the effective date of the modification. line 17 (e) A public employer shall not offer a defined benefit or any line 18 combination of defined benefits, including a defined benefit offered line 19 by a private provider, on compensation in excess of the limitation line 20 in subdivision (c).
line 21 (f) (1) Subject to the limitation in subdivision (c) of Section line 22 7522.42, a public employer may provide a contribution to a defined line 23 contribution plan for compensation in excess of the limitation in line 24 subdivision (c) provided the plan and the contribution meet the line 25 requirements and limits of federal law.
line 26 (2) A public employee who receives an employer contribution line 27 to a defined contribution plan shall not have a vested right to line 28 continue receiving the employer contribution.
line 29 (g) Any employer contributions to any employee defined line 30 contribution plan above the pensionable compensation limits in line 31 subdivision (c) shall not exceed the employer’s contribution rate, line 32 as a percentage of pay, required to fund the defined benefit plan line 33 for income subject to the limitation in subdivision (c) of Section line 34 7522.42.
line 35 (h) The retirement system shall limit the pensionable line 36 compensation used to calculate the contributions required of an line 37 employer or a new member to the amount of compensation that line 38 would be used for calculating a defined benefit as set forth in line 39 subdivision (c) or (d).
95 AB 1383 — 10 —
line 1 SEC. 4. Section 7522.15 of the Government Code is amended line 2 to read:
line 3 7522.15. Except as provided in subdivisions (d) and (e) of line 4 Section 7522.02, each public employer and each public retirement line 5 system that offers a defined benefit plan shall offer only the defined line 6 benefit formulas established pursuant to Sections 7522.20 and line 7 7522.25 7522.20, 7522.25, and 7522.26 to new members. line 8 SEC. 3.
line 9 SEC. 5. Section 7522.19 is added to the Government Code, to line 10 read:
line 11 7522.19. (a) Notwithstanding any other law, provision of this line 12 article, a public employer and a recognized employee organization line 13 may negotiate a prospective increase to the retirement benefit line 14 formulas for safety members and new safety members, consistent line 15 with the formulas permitted under this article, including Section line 16 7522.26.
line 17 (b) Benefit formula increases adopted pursuant to this section line 18 shall be established in accordance with Section 7522.44. line 19 SEC. 4.
line 20 SEC. 6. Section 7522.25 of the Government Code is amended line 21 to read:
line 22 7522.25. (a) Each retirement system that offers a defined line 23 benefit plan for safety members of the system shall use one or line 24 more of the defined benefit formulas prescribed by this section. A line 25 member may retire for service under any of the formulas in this line 26 section after five years of service and upon reaching 50 years of line 27 age.
line 28 (b) The Basic Safety Plan shall provide a pension at retirement line 29 for service equal to the percentage of the member’s final line 30 compensation set forth opposite the member’s age at retirement, line 31 taken to the preceding quarter year, in the following table, line 32 multiplied by the number of years of service in the system as a line 33 safety member.
line 34
line 35 Age at Retirement Fraction
line 36 50 ......................................................................... 1.426 line 37 50 1.447 1
⁄4....................................................................... line 38 50 1.467 1
⁄2....................................................................... line 39 50 1.488 3
⁄4....................................................................... line 40 51 ......................................................................... 1.508 95 — 11 — AB 1383
line 1 51 1.529 1
⁄4....................................................................... line 2 51 1.549 1
⁄2....................................................................... line 3 51 1.570 3
⁄4....................................................................... line 4 52 ......................................................................... 1.590 line 5 52 1.611 1
⁄4....................................................................... line 6 52 1.631 1
⁄2....................................................................... line 7 52 1.652 3
⁄4....................................................................... line 8 53 ......................................................................... 1.672 line 9 53 1.693 1
⁄4....................................................................... line 10 53 1.713 1
⁄2....................................................................... line 11 53 1.734 3
⁄4....................................................................... line 12 54 ......................................................................... 1.754 line 13 54 1.775 1
⁄4....................................................................... line 14 54 1.795 1
⁄2....................................................................... line 15 54 1.816 3
⁄4....................................................................... line 16 55 ......................................................................... 1.836 line 17 55 1.857 1
⁄4....................................................................... line 18 55 1.877 1
⁄2....................................................................... line 19 55 1.898 3
⁄4....................................................................... line 20 56 ......................................................................... 1.918 line 21 56 1.939 1
⁄4....................................................................... line 22 56 1.959 1
⁄2....................................................................... line 23 56 1.980 3
⁄4....................................................................... line 24 57 and over .......................................................... 2.000 line 25
line 26 (c) The Safety Option Plan One shall provide a pension at line 27 retirement for service equal to the percentage of the member’s line 28 final compensation set forth opposite the member’s age at line 29 retirement, taken to the preceding quarter year, in the following line 30 table, multiplied by the number of years of service in the system line 31 as a safety member.
line 32
line 33 Age at Retirement Fraction
line 34 50 ............................................................................... 2.000 line 35 50 2.018 1
⁄4............................................................................. line 36 50 2.036 1
⁄2............................................................................. line 37 50 2.054 3
⁄4............................................................................. line 38 51 ............................................................................... 2.071 line 39 51 2.089 1
⁄4............................................................................. line 40 51 2.107 1
⁄2............................................................................. 95 AB 1383 — 12 —
line 1 51 2.125 3
⁄4............................................................................. line 2 52 ............................................................................... 2.143 line 3 52 2.161 1
⁄4............................................................................. line 4 52 2.179 1
⁄2............................................................................. line 5 52 2.196 3
⁄4............................................................................. line 6 53 ............................................................................... 2.214 line 7 53 2.232 1
⁄4............................................................................. line 8 53 2.250 1
⁄2............................................................................. line 9 53 2.268 3
⁄4............................................................................. line 10 54 ............................................................................... 2.286 line 11 54 2.304 1
⁄4............................................................................. line 12 54 2.321 1
⁄2............................................................................. line 13 54 2.339 3
⁄4............................................................................. line 14 55................................................................................. 2.357 line 15 55 2.375 1
⁄4............................................................................. line 16 55 2.393 1
⁄2............................................................................. line 17 55 2.411 3
⁄4............................................................................. line 18 56................................................................................. 2.429 line 19 56 2.446 1
⁄4............................................................................. line 20 56 2.464 1
⁄2............................................................................. line 21 56 2.482 3
⁄4............................................................................. line 22 57 and over.................................................................. 2.500 line 23
line 24 (d) The Safety Option Plan Two shall provide a pension at line 25 retirement for service equal to the percentage of the member’s line 26 final compensation set forth opposite the member’s age at line 27 retirement, taken to the preceding quarter year, in the following line 28 table, multiplied by the number of years of service in the system line 29 as a safety member.
line 30
line 31 Age at Retirement Fraction
line 32 50 .................................................................................... 2.000 line 33 50 2.025 1
⁄4.................................................................................. line 34 50 2.050 1
⁄2.................................................................................. line 35 50 2.075 3
⁄4.................................................................................. line 36 51 .................................................................................... 2.100 line 37 51 2.125 1
⁄4.................................................................................. line 38 51 2.150 1
⁄2.................................................................................. line 39 51 2.175 3
⁄4.................................................................................. line 40 52 .................................................................................... 2.200 95 — 13 — AB 1383
line 1 52 2.225 1
⁄4.................................................................................. line 2 52 2.250 1
⁄2.................................................................................. line 3 52 2.275 3
⁄4.................................................................................. line 4 53 .................................................................................... 2.300 line 5 53 2.325 1
⁄4.................................................................................. line 6 53 2.350 1
⁄2.................................................................................. line 7 53 2.375 3
⁄4.................................................................................. line 8 54 .................................................................................... 2.400 line 9 54 2.425 1
⁄4.................................................................................. line 10 54 2.450 1
⁄2.................................................................................. line 11 54 2.475 3
⁄4.................................................................................. line 12 55 .................................................................................... 2.500 line 13 55 2.525 1
⁄4.................................................................................. line 14 55 2.550 1
⁄2.................................................................................. line 15 55 2.575 3
⁄4.................................................................................. line 16 56 .................................................................................... 2.600 line 17 56 2.625 1
⁄4.................................................................................. line 18 56 2.650 1
⁄2.................................................................................. line 19 56 2.675 3
⁄4.................................................................................. line 20 57 and over ..................................................................... 2.700 line 21
line 22 (e) On and after January 1, 2013, an employer shall offer one line 23 or more of the safety formulas prescribed by this section to new line 24 members who are safety employees. The formula offered shall be line 25 the formula that is closest to, and provides a lower benefit at 55 line 26 years of age than, the formula provided to members in the same line 27 retirement classification offered by the employer on December line 28 31, 2012.
line 29 (f) On and after January 1, 2013, an employer and its employees line 30 subject to Safety Option Plan One or Safety Option Plan Two may line 31 agree in a memorandum of understanding to be subject to Safety line 32 Option Plan One or the Basic Safety Plan, subject to the following:
line 33 (1) The lower plan shall apply to members first employed on line 34 or after the effective date of the lower plan, plan and shall be line 35 agreed to in a memorandum of understanding that has been line 36 collectively bargained in accordance with applicable laws. line 37 (2) A retirement plan contract amendment with a public line 38 retirement system to alter a retirement formula pursuant to this line 39 subdivision shall not be implemented by the employer in the 95 AB 1383 — 14 —
line 1 absence of a memorandum of understanding that has been line 2 collectively bargained in accordance with applicable laws. line 3 (3) An employer shall not use impasse procedures to impose line 4 the lower plan.
line 5 (4) An employer shall not provide a different defined benefit line 6 for nonrepresented, managerial, or supervisory employees than line 7 the employer provides for other public employees, including line 8 represented employees, of the same employer who are in the same line 9 membership classifications.
line 10 (g) Pensionable compensation used to calculate the defined line 11 benefit shall be limited as described in Section 7522.10. line 12 (h) This section shall only apply to service performed between line 13 January 1, 2013, and December 31, 2026.
line 14 SEC. 5.
line 15 SEC. 7. Section 7522.26 is added to the Government Code, to line 16 read:
line 17 7522.26. (a) On and after January 1, 2027, each retirement line 18 system that offers a defined benefit plan for safety members of the line 19 system shall use one or more of the defined benefit formulas line 20 prescribed by this section. A member may retire for service under line 21 any of the formulas in this section after five years of service and line 22 upon reaching 50 years of age.
line 23 (b) The Basic Safety Plan shall provide a pension at retirement line 24 for service equal to the percentage of the member’s final line 25 compensation set forth opposite the member’s age at retirement, line 26 taken to the preceding quarter year, in the following table, line 27 multiplied by the number of years of service in the system as a line 28 safety member.
line 29
line 30
line 31 Age at Retirement Fraction
line 32 50 .......................................................................... 1.426 line 33 50 1.450 1
⁄4........................................................................ line 34 50 1.474 1
⁄2........................................................................ line 35 50 1.498 3
⁄4........................................................................ line 36 51 .......................................................................... 1.522 line 37 51 1.550 1
⁄4........................................................................ line 38 51 1.576 1
⁄2........................................................................ line 39 51 1.602 3
⁄4........................................................................ line 40 52 .......................................................................... 1.628 95 — 15 — AB 1383
line 1
line 2 Age at Retirement Fraction
line 3 52 1.656 1
⁄4........................................................................ line 4 52 1.686 1
⁄2........................................................................ line 5 52 1.714 3
⁄4........................................................................ line 6 53 .......................................................................... 1.742 line 7 53 1.772 1
⁄4........................................................................ line 8 53 1.804 1
⁄2........................................................................ line 9 53 1.834 3
⁄4........................................................................ line 10 54 .......................................................................... 1.866 line 11 54 1.900 1
⁄4........................................................................ line 12 54 1.932 1
⁄2........................................................................ line 13 54 1.966 3
⁄4........................................................................ line 14 55 and over.............................................................. 2.000 line 15
line 16 (c) The Safety Option Plan One shall provide a pension at line 17 retirement for service equal to the percentage of the member’s line 18 final compensation set forth opposite the member’s age at line 19 retirement, taken to the preceding quarter year, in the following line 20 table, multiplied by the number of years of service in the system line 21 as a safety member.
line 22
line 23
line 24 Age at Retirement Fraction
line 25 50 .......................................................................... 2.000 line 26 50 2.025 1
⁄4........................................................................ line 27 50 2.050 1
⁄2........................................................................ line 28 50 2.075 3
⁄4........................................................................ line 29 51 .......................................................................... 2.100 line 30 51 2.125 1
⁄4........................................................................ line 31 51 2.150 1
⁄2........................................................................ line 32 51 2.175 3
⁄4........................................................................ line 33 52 .......................................................................... 2.200 line 34 52 2.225 1
⁄4........................................................................ line 35 52 2.250 1
⁄2........................................................................ line 36 52 2.275 3
⁄4........................................................................ line 37 53 .......................................................................... 2.300 line 38 53 2.325 1
⁄4........................................................................ line 39 53 2.350 1
⁄2........................................................................ line 40 53 2.375 3
⁄4........................................................................ 95 AB 1383 — 16 —
line 1
line 2 Age at Retirement Fraction
line 3 54 .......................................................................... 2.400 line 4 54 2.425 1
⁄4........................................................................ line 5 54 2.450 1
⁄2........................................................................ line 6 54 2.475 3
⁄4........................................................................ line 7 55 and over.............................................................. 2.500 line 8
line 9 (d) The Safety Option Plan Two shall provide a pension at line 10 retirement for service equal to the percentage of the member’s line 11 final compensation set forth opposite the member’s age at line 12 retirement, taken to the preceding quarter year, in the following line 13 table, multiplied by the number of years of service in the system line 14 as a safety member.
line 15
line 16
line 17 Age at Retirement Fraction
line 18 50 .......................................................................... 2.000 line 19 50 2.035 1
⁄4........................................................................ line 20 50 2.070 1
⁄2........................................................................ line 21 50 2.105 3
⁄4........................................................................ line 22 51 .......................................................................... 2.140 line 23 51 2.175 1
⁄4........................................................................ line 24 51 2.210 1
⁄2........................................................................ line 25 51 2.245 3
⁄4........................................................................ line 26 52 .......................................................................... 2.280 line 27 52 2.315 1
⁄4........................................................................ line 28 52 2.350 1
⁄2........................................................................ line 29 52 2.385 3
⁄4........................................................................ line 30 53 .......................................................................... 2.420 line 31 53 2.455 1
⁄4........................................................................ line 32 53 2.490 1
⁄2........................................................................ line 33 53 2.525 3
⁄4........................................................................ line 34 54 .......................................................................... 2.560 line 35 54 2.595 1
⁄4........................................................................ line 36 54 2.630 1
⁄2........................................................................ line 37 54 2.665 3
⁄4........................................................................ line 38 55 and over.............................................................. 2.700 line 39
95 — 17 — AB 1383
line 1 (e) The Safety Option Plan Three shall provide a pension at line 2 retirement for service equal to the percentage of the member’s line 3 final compensation set forth opposite the member’s age at line 4 retirement, taken to the preceding quarter year, in the following line 5 table, multiplied by the number of years of service in the system line 6 as a safety member. For service subject to this subdivision, the line 7 benefit limit shall be 90 percent of final compensation. line 8
line 9
line 10 Age at Retirement Fraction
line 11 50 ........................................................................... 2.400 line 12 50 2.430 1
⁄4......................................................................... line 13 50 2.460 1
⁄2......................................................................... line 14 50 2.490 3
⁄4......................................................................... line 15 51 ........................................................................... 2.520 line 16 51 2.550 1
⁄4......................................................................... line 17 51 2.580 1
⁄2......................................................................... line 18 51 2.610 3
⁄4......................................................................... line 19 52 ........................................................................... 2.640 line 20 52 2.670 1
⁄4......................................................................... line 21 52 2.700 1
⁄2......................................................................... line 22 52 2.730 3
⁄4......................................................................... line 23 53 ........................................................................... 2.760 line 24 53 2.790 1
⁄4......................................................................... line 25 53 2.820 1
⁄2......................................................................... line 26 53 2.850 3
⁄4......................................................................... line 27 54 ........................................................................... 2.880 line 28 54 2.910 1
⁄4......................................................................... line 29 54 2.940 1
⁄2......................................................................... line 30 54 2.970 3
⁄4......................................................................... line 31 55 and over............................................................... 3.000 line 32
line 33 (f) For new members hired on or after January 1, 2027, who are line 34 safety members, an employer shall offer one or more of the safety line 35 formulas prescribed by this section to new members who are safety line 36 employees. The formula offered shall maintain the percentage of line 37 compensation factor offered as of December 31, 2026. the formula line 38 in this section that has the same fraction at age 55 as the fraction line 39 at age 57 in the formula the employer offered pursuant to Section line 40 7522.25 as of December 31, 2026, unless the employer and 95 AB 1383 — 18 —
line 1 employees have agreed to a higher or lower safety plan pursuant line 2 to subdivisions (h) or (i).
line 3 (g) For new members hired on or after January 1, 2013, who line 4 are safety members, the employer shall adjust their formula as line 5 follows:
line 6 (1) For service performed between January 1, 2013, and line 7 December 31, 2026, the retirement age and formula shall be as line 8 offered by the employer between January 1, 2013, and December line 9 31, 2026, and subject to Section 7522.25.
line 10 (2) For service performed on or after January 1, 2027, the line 11 employer shall offer the formula in this section that is closest to line 12 has the same fraction at age 55 as the fraction at age 57 in the line 13 formula the employer provided offered pursuant to Section 7522.25. line 14 The formula offered shall maintain the percentage of compensation line 15 factor offered as of December 31, 2026. 2026, unless the employer line 16 and employees have agreed to a higher or lower safety plan line 17 pursuant to subdivisions (h) or (i).
line 18 (3) This section shall not be construed to provide retroactive line 19 benefits to employees. This section shall adjust the prospective line 20 benefit for safety employees by adjusting the retirement age to 55. line 21 (h) An employer and its employees may agree in a memorandum line 22 of understanding to be subject to a higher safety plan, subject to line 23 the following:
line 24 (1) The higher plan shall apply to members on or after the line 25 effective date of the higher plan, plan and shall be agreed to in a line 26 memorandum of understanding that has been collectively bargained line 27 in accordance with applicable laws.
line 28 (2) The higher plan adopted pursuant to this subdivision shall line 29 be subject to Section 7522.44.
line 30 (i) An employer and its employees may agree in a memorandum line 31 of understanding to be subject to a lower safety plan, subject to line 32 the following:
line 33 (1) The lower plan shall apply to members first employed on line 34 or after the effective date of the lower plan, plan and shall be line 35 agreed to in a memorandum of understanding that has been line 36 collectively bargained in accordance with applicable laws. line 37 (2) A retirement plan contract amendment with a public line 38 retirement system to alter a retirement formula pursuant to this line 39 subdivision shall not be implemented by the employer in the 95 — 19 — AB 1383
line 1 absence of a memorandum of understanding that has been line 2 collectively bargained in accordance with applicable laws. line 3 (3) An employer shall not use impasse procedures to impose line 4 the lower plan.
line 5 (4) An employer shall not provide a different defined benefit line 6 for nonrepresented, managerial, or supervisory employees than line 7 the employer provides for other public employees, including line 8 represented employees, of the same employer who are in the same line 9 membership classifications.
line 10 (j) Pensionable compensation used to calculate the defined line 11 benefit shall be limited as described in Section 7522.10. line 12 (k) A safety member that is subject to a defined benefit formula line 13 prescribed by this section, who is not a new member, shall be line 14 subject to contribution rates established pursuant to Section line 15 7522.30.
line 16 SEC. 8. Section 20516 of the Government Code is amended to line 17 read:
line 18 20516. (a) Notwithstanding any other provision of this part, line 19 with or without a change in benefits, a contracting agency and its line 20 employees may agree, in writing, to share the costs of the employer line 21 contribution. The cost sharing pursuant to this section shall also line 22 apply for related nonrepresented employees as approved in a line 23 resolution passed by the contracting agency.
line 24 (b) The collective bargaining agreement or memorandum of line 25 understanding ratified by the employee bargaining unit and the line 26 governing body of the contracting agency shall specify the exact line 27 percentage of member compensation that shall be paid toward the line 28 current service cost of the benefits by members or the methodology line 29 for calculating that cost-sharing rate. The member contributions line 30 shall be contributions over and above normal contributions line 31 otherwise required by this part and shall be treated as normal line 32 contributions for all purposes of this part. The contributions shall line 33 be uniform, except as described in subdivision (c), with respect to line 34 all members within each of the following classifications: local line 35 miscellaneous members, local police officers, local firefighters, line 36 county peace officers, and all local safety members other than local line 37 police officers, local firefighters, and county peace officers. The line 38 balance of any costs shall be paid by the contracting agency and line 39 shall be credited to the employer’s account. An employer shall not 95 AB 1383 — 20 —
line 1 use impasse procedures to impose member cost sharing on any line 2 contribution amount above that which is authorized by law. line 3 (c) Member cost sharing may differ by classification for groups line 4 of employees subject to different levels of benefits pursuant to line 5 Sections 7522.20, 7522.25, 7522.26, and 20475, or by a recognized line 6 collective bargaining unit if agreed to in a memorandum of line 7 understanding reached pursuant to the applicable collective line 8 bargaining laws.
line 9 (d) This section shall not apply to any contracting agency nor line 10 to the employees of a contracting agency until the agency elects line 11 to be subject to this section by contract or by amendment to its line 12 contract made in the manner prescribed for approval of contracts. line 13 Contributions provided by this section shall be withheld from line 14 member compensation or otherwise collected when the contract line 15 amendment becomes effective. Once the contracting agency elects line 16 to be subject to this section, contract amendments shall not be line 17 required to effectuate cost sharing in subsequent collective line 18 bargaining agreements or memoranda of understanding ratified line 19 by the employee bargaining unit and the governing body of the line 20 agency; provided, however, that if a collective bargaining line 21 agreement or memorandum of understanding sets forth a line 22 methodology for calculating the cost-sharing rate instead of an line 23 exact percentage, the contracting agency shall provide the line 24 retirement system with a signed side letter ratified by the employee line 25 bargaining unit and the agency indicating the exact percentage at line 26 least 90 days prior to the effective date of the cost-sharing rate as line 27 set forth in the signed side letter.
line 28 (e) For the purposes of this section, all contributions, liabilities, line 29 actuarial interest rates, and other valuation factors shall be line 30 determined on the basis of actuarial assumptions and methods that, line 31 in the aggregate, are reasonable and that, in combination, offer the line 32 actuary’s best estimate of anticipated experience under this system. line 33 (f) Nothing in this section shall preclude a contracting agency line 34 and its employees from independently agreeing in a memorandum line 35 of understanding to share the costs of any benefit, in a manner line 36 inconsistent with this section. However, any agreement in a line 37 memorandum of understanding that is inconsistent with this section line 38 shall not be part of the contract between this system and the line 39 contracting agency.
95 — 21 — AB 1383
line 1 (g) If, and to the extent that, the board determines that a line 2 cost-sharing agreement under this section would conflict with Title line 3 26 of the United States Code, the board may refuse to approve the line 4 agreement.
line 5 (h) Nothing in this section shall require a contracting agency to line 6 enter into a memorandum of understanding or collective bargaining line 7 agreement with a bargaining representative in order to increase line 8 the amount of member contributions when such a member line 9 contribution increase is authorized by other provisions under this line 10 part.
line 11 SEC. 6.
line 12 SEC. 9. It is the intent of the Legislature that this act shall not line 13 be construed to affect any retirement benefits or pension rights line 14 accrued before its effective date.
O
95 AB 1383 — 22 —