Assembly Bill No. 1383
Passed the Assembly August 30, 2026
Chief Clerk of the Assembly
Passed the Senate August 30, 2026
Secretary of the Senate
This bill w as recei ved by the Go vernor this day
of , 2026, at o’clock m.
Private Secretary of the Governor
CHAPTER
An act to amend Sections 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 emplo yees’ retirement, and making an appropriation therefor.
legislative counsel’s digest
AB 1383, McKinnor. Public employees’ retirement 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 la w creates the Public Emplo yees’ Retirement Fund, which is continuously appropriated for purposes of PERS, including depositing employer and 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 la w, the Teachers’ Retirement La w, 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 prohibit the pensionable compensation for calendar year 2027 used to calculate the defined benefit paid to a ne w member of a retirement system subject to PEPRA who retires from the system from exceeding specified percentages of the contrib ution and benefit base under the specified federal la w with respect to 92 — 2 — AB 1383
old age, survivors, and disability insurance benefits. The bill would make related, conforming changes to these pro visions on pensionable compensation. The bill also w ould require a ne w member of STRS to be subject to specified limits of the Teachers’ Retirement Law.
PEPRA requires each retirement system that of fers 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, subject to certain e xceptions. 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 of fer the formula that has the same fraction at age 55 as the fraction at age 57 in the formula the emplo yer offered pursuant to e xisting law.
The bill w ould authorize a public emplo yer and a recognized employee organization to negotiate a prospective increase to the retirement benefit formulas for safety members and ne w 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 lo wer safety plan, subject to certain requirements, including that the memorandum of understanding is collecti vely bargained in accordance with applicable laws.
By increasing the contrib ution to continuously appropriated funds, and by increasing e xpenditures from those funds, this bill would make an appropriation.
Appropriation: yes.
The people of the State of California do enact as follows:
SECTION 1. The Legislature finds and declares the following:
(a) California is e xperiencing significant challenges in the recruitment and retention of safety personnel, including firefighters, police officers, and other first responders. Competitive retirement benefits are critical to ensuring an adequate and well-trained public safety workforce.
92 AB 1383 — 3 —
(b) Firefighters face heightened risks of occupational diseases, including elevated cancer rates. Studies have shown that firefighters have a significantly higher risk of de veloping multiple types of cancer due to prolonged e xposure to carcinogens and hazardous materials in the line of duty. In 2022, the International Agency for Research on Cancer identified the occupation of firefighting as a Class 1 carcinogen.
(c) The physical demands of safety positions are extraordinary, requiring peak physical performance, endurance, and exposure to high-stress, life-threatening situations on a daily basis. These factors contribute to increased rates of disability, injury, and early retirement compared to other professions.
(d) Adjusting the retirement age and pension formulas for safety employees is necessary to maintain a sustainable and ef fective workforce while addressing the unique health and occupational challenges faced by these personnel.
(e) California has a strong history of protecting and promoting collective bar gaining rights and pro viding opportunities for employees and emplo yers to bar gain o ver certain retirement benefits that further enhances opportunities for public employers and employees to partner on stronger retirement security. (f) The compensation cap established under the California Public Employees’ Pension Reform Act of 2013 places limits that are significantly less than the current federal limit. To reflect current wage rates across both safety and miscellaneous emplo yees, it is necessary to reconsider the appropriate compensation cap le vel, consistent with federal limits.
SEC. 2. Section 7522.02 of the Government Code is amended to read:
7522.02. (a) (1) Notwithstanding an y other la w, e xcept as provided in this article, on and after January 1, 2013, this article shall apply to all state and local public retirement systems and to their participating emplo yers, including the Public Emplo yees’ Retirement System, the State Teachers’ Retirement System, the Legislators’ Retirement System, the Judges’ Retirement System, the Judges’ Retirement System II, county and district retirement systems created pursuant to the County Emplo yees Retirement Law of 1937 (Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3), independent public retirement systems, and to indi vidual retirement plans of fered by public emplo yers. 92 — 4 — AB 1383
However, this article shall be subject to the Internal Revenue Code and Section 17 of Article XVI of the California Constitution. The administration of the requirements of this article shall comply with applicable pro visions of the Internal Re venue Code and the Revenue and Taxation Code.
(2) Notwithstanding paragraph (1), this article shall not apply to the entities described in Section 9 of Article IX of, and Sections 4 and 5 of Article XI of, the California Constitution, except to the extent that these entities continue to be participating employers in any retirement system governed by state statute. Accordingly, any retirement plan approved before January 1, 2013, by the voters of any entity e xcluded from co verage by this section shall not be affected by this article.
(3) (A) Notwithstanding paragraph (1), this article shall not apply to a public emplo yee whose interests are protected under Section 5333(b) of Title 49 of the United States Code until a federal district court rules that the United States Secretary of Labor , or their designee, erred in determining that the application of this article precludes certification under that section, or until January 1, 2016, whichever is sooner.
(B) If a federal district court upholds the determination of the United States Secretary of Labor, or their designee, that application of this article precludes them from providing a certification under Section 5333(b) of Title 49 of the United States Code, this article shall not apply to a public emplo yee specified in subparagraph (A).
(4) Notwithstanding paragraph (1), this article shall not apply to a multiemplo yer plan authorized by Section 302(c)(5) of the federal Taft-Hartley Act (29 U.S.C. Sec. 186(c)(5)) if the public employer began participation in that plan prior to January 1, 2013, and the plan is re gulated by the federal Emplo yee Retirement Income Security Act of 1974 (29 U.S.C. Sec. 1001 et seq.). (b) The benefit plan required by this article shall apply to public employees who are new members as defined in Section 7522.04. (c) (1) Individuals who were employed by any public employer before January 1, 2013, and who became employed by a subsequent public employer for the first time on or after January 1, 2013, shall be subject to the retirement plan that w ould have been available to employees of the subsequent employer who were first employed by the subsequent emplo yer on or before December 31, 2012, if 92 AB 1383 — 5 —
the individual was subject to concurrent membership for which creditable service w as performed in the pre vious six months or reciprocity established under any of the following provisions:
(A) Article 5 (commencing with Section 20350) of Chapter 3 of Part 3 of Division 5 of Title 2.
(B) Chapter 3 (commencing with Section 31450) of P art 3 of Division 4 of Title 3.
(C) Any agreement between public retirement systems to provide reciprocity to members of the systems.
(D) Section 22115.2 of the Education Code.
(2) An individual who was employed before January 1, 2013, and who, without a separation from emplo yment, changed employment positions and became subject to a dif ferent defined benefit plan in a different public retirement system offered by their employer shall be subject to that defined benefit plan as it w ould have been available to employees who were first employed on or before December 31, 2012.
(d) If a public employer, before January 1, 2013, offers a defined benefit pension plan that provides a defined benefit formula with a lower benefit f actor at normal retirement age and results in a lower normal cost than the defined benefit formula required by this article, that employer may continue to offer that defined benefit formula instead of the defined benefit formula required by this article, and shall not be subject to the requirements of Section 7522.10 for pensionable compensation subject to that formula.
However, if the emplo yer adopts a ne w defined benefit formula on or after January 1, 2013, that formula must conform to the requirements of this article or must be determined and certified by the retirement system’s chief actuary and the retirement board to have no greater risk and no greater cost to the emplo yer than the defined benefit formula required by this article and must be approved by the Legislature. New members of the defined benefit plan may only participate in the lower cost defined benefit formula that w as in place before January 1, 2013, or a defined benefit formula that conforms to the requirements of this article or is approved by the Legislature as provided in this subdivision. (e) If a public emplo yer, before January 1, 2013, of fers a retirement benefit plan that consists solely of a defined contribution plan, that employer may continue to offer that plan instead of the defined benefit pension plan required by this article. Ho wever, if 92 — 6 — AB 1383
the employer adopts a new defined benefit pension plan or defined benefit formula on or after January 1, 2013, that plan or formula must conform to the requirements of this article or must be determined and certified by the retirement system’s chief actuary and the system’s board to have no greater risk and no greater cost to the employer than the defined benefit formula required by this article and must be approved by the Legislature. New members of the emplo yer’s plan may only participate in the defined contribution plan that w as in place before January 1, 2013, or a defined contribution plan or defined benefit formula that conforms to the requirements of this article. This subdivision shall not be construed to prohibit an emplo yer from of fering a defined contribution plan on or after January 1, 2013, either with or without a defined benefit plan, whether or not the emplo yer of fered a defined contribution plan prior to that date.
(f) (1) If, on or after January 1, 2013, the Cities of Brea and Fullerton form a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Article 1 (commencing with Section 6500) of Chapter 5), that joint po wers authority may provide employees the defined benefit plan or formula that those employees received from their respecti ve employers prior to the exercise of a common power, to which the employee is associated, by the joint powers authority to any employee of the City of Brea, the City of Fullerton, or a city described in paragraph (2) who is not a ne w member and subsequently is emplo yed by the joint powers authority within 180 days of the city pro viding for the exercise of a common po wer, to which the emplo yee w as associated, by the joint powers authority.
(2) On or before January 1, 2017, a city in Orange County that is contiguous to the City of Brea or the City of Fullerton may join the joint powers authority described in paragraph (1), but not more than three cities shall be permitted to join.
(3) The formation of a joint powers authority on or after January 1, 2013, shall not act in a manner as to e xempt a new employee or a ne w member , as defined by Section 7522.04, from the requirements of this article. Ne w members may only participate in a defined benefit plan or formula that conforms to the requirements of this article.
(g) (1) If, on or after January 1, 2013, the Belmont Fire Protection District, the Estero Municipal Impro vement District, 92 AB 1383 — 7 —
and the City of San Mateo form a joint powers authority pursuant to the pro visions of the Joint Ex ercise of Po wers Act (Article 1 (commencing with Section 6500) of Chapter 5), that joint powers authority may pro vide emplo yees the defined benefit plan or formula that those emplo yees recei ved from their respecti ve employers prior to the exercise of a common power, to which the employee is associated, by the joint po wers authority to an y employee of the Belmont Fire Protection District, the Estero Municipal Improvement District, and the City of San Mateo who is not a ne w member and subsequently is emplo yed by the joint powers authority within 180 days of the agency providing for the exercise of a common po wer, to which the emplo yee w as associated, by the joint powers authority.
(2) The formation of a joint powers authority on or after January 1, 2013, shall not act in a manner as to e xempt a new employee or a ne w member , as defined by Section 7522.04, from the requirements of this article. Ne w members may only participate in a defined benefit plan or formula that conforms to the requirements of this article.
(h) (1) On or after January 1, 2026, the Pajaro Regional Flood Management Agency, a joint po wers authority formed pursuant to the provisions of the Joint Ex ercise of Powers Act (Chapter 5 (commencing with Section 6500)), may provide a defined benefit plan or formula pursuant to paragraph (2) to an emplo yee of a member agency of the joint powers authority or of another public agency, as defined in Section 20056, who is not a ne w member and who is subsequently employed by the joint powers authority within 180 days of the effective date of the retirement plan contract amendment made pursuant to this section.
(2) On or before April 1, 2026, the P ajaro Re gional Flood Management Agency may select a defined benefit plan or formula offered by one of its member agencies prior to the e xercise of a common power which the member agency offered to its employees on December 31, 2012, and designate that formula for its employees as specified in paragraph (1).
(3) This subdivision does not exempt a new employee or a new member from the requirements of this article. New members may only participate in a defined benefit plan or formula that conforms to the requirements of this article.
92 — 8 — AB 1383
(i) The Judges’ Retirement System and the Judges’ Retirement System II shall not be required to adopt the defined benefit formula required by Section 7522.20, 7522.25, or 7522.26, or the compensation limitations defined in Section 7522.10.
(j) This article shall not be construed to provide membership in any public retirement system for an indi vidual who w ould not otherwise be eligible for membership under that system’ s applicable rules or laws.
(k) On and after January 1, 2013, each public retirement system shall modify its plan or plans to comply with the requirements of this article and may adopt re gulations or resolutions for this purpose.
(l) On and after January 1, 2024, a county and a trial court that separate their joint contract into indi vidual contracts pursuant to Section 20471.2 may provide employees the defined benefit plan or formula that those emplo yees received from their respecti ve employers prior to the exercise of the option to separate, provided that the emplo yee subsequently does not otherwise meet the definition of a new employee.
SEC. 3. Section 7522.10 of the Government Code is amended to read:
7522.10. (a) On and after January 1, 2013, each public retirement system shall modify its plan or plans to comply with the requirements of this section for each public emplo yer that participates in the system.
(b) Whenever pensionable compensation, as defined in Section 7522.34, is used in the calculation of a benefit, the pensionable compensation shall be subject to the limitations set forth in subdivision (c).
(c) (1) For service performed on January 1, 2013, to December 31, 2026, inclusive, the pensionable compensation used to calculate the defined benefit paid to a ne w member who retires from the system shall not exceed the following applicable percentage of the contribution and benefit base specified in Section 430(b) of Title 42 of the United States Code on January 1, 2013, as adjusted under paragraph (1) of subdivision (d):
(A) One hundred percent for a member whose service is included in the federal system.
(B) One hundred twenty percent for a member whose service is not included in the federal system.
92 AB 1383 — 9 —
(2) For service performed on and after January 1, 2027, the pensionable compensation used to calculate the defined benefit paid to a new member who retires from the system shall not exceed the following applicable percentage of the contribution and benefit base specified in Section 430(b) of Title 42 of the United States Code on January 1, 2027, as adjusted under paragraph (1) of subdivision (d):
(A) One hundred percent for a member whose service is included in the federal system.
(B) One hundred twenty percent for a member whose service is not included in the federal system.
(3) A new member of the State Teachers’ Retirement System shall be subject to the limit established pursuant to subdivision (d) of Section 22119.3 of, or subdi vision (c) of Section 26139.5 of, the Education Code.
(d) (1) The retirement system shall adjust the pensionable compensation described in subdi vision (c) based on the annual changes to the Consumer Price Inde x for All Urban Consumers:
U.S. City Average, calculated by di viding the Consumer Price Index for All Urban Consumers: U.S. City Average, for the month of September in the calendar year preceding the adjustment by the Consumer Price Inde x for All Urban Consumers: U.S. City Average, for the month of September of the previous year rounded to the nearest thousandth. The adjustment shall be ef fective annually on January 1, be ginning in 2014 for paragraph (1) of subdivision (c) and 2028 for paragraph (2) of subdivision (c). (2) The Legislature reserves the right to modify the requirements of this subdivision with regard to all public employees subject to this section, e xcept that the Le gislature may not modify these provisions in a manner that would result in a decrease in benefits accrued prior to the effective date of the modification. (e) A public employer shall not of fer a defined benefit or an y combination of defined benefits, including a defined benefit offered by a private provider, on compensation in excess of the limitation in subdivision (c).
(f) (1) Subject to the limitation in subdi vision (c) of Section 7522.42, a public employer may provide a contribution to a defined contribution plan for compensation in e xcess of the limitation in subdivision (c) pro vided the plan and the contrib ution meet the requirements and limits of federal law.
92 — 10 — AB 1383
(2) A public employee who receives an employer contribution to a defined contrib ution plan shall not ha ve a v ested right to continue receiving the employer contribution.
(g) Any emplo yer contrib utions to an y emplo yee defined contribution plan abo ve the pensionable compensation limits in subdivision (c) shall not exceed the employer’s contribution rate, as a percentage of pay, required to fund the defined benefit plan for income subject to the limitation in subdi vision (c) of Section 7522.42.
(h) The retirement system shall limit the pensionable
compensation used to calculate the contrib utions required of an employer or a ne w member to the amount of compensation that would be used for calculating a defined benefit as set forth in subdivision (c) or (d).
SEC. 4. Section 7522.15 of the Government Code is amended to read:
7522.15. Except as pro vided in subdi visions (d) and (e) of Section 7522.02, each public employer and each public retirement system that offers a defined benefit plan shall offer only the defined benefit formulas established pursuant to Sections 7522.20, 7522.25, and 7522.26 to new members.
SEC. 5. Section 7522.19 is added to the Government Code, to read:
7522.19. (a) Notwithstanding an y other pro vision of this article, a public employer and a recognized employee organization may ne gotiate a prospecti ve increase to the retirement benefit formulas for safety members and new safety members, consistent with the formulas permitted under this article, including Section 7522.26.
(b) Benefit formula increases adopted pursuant to this section shall be established in accordance with Section 7522.44.
SEC. 6. Section 7522.25 of the Government Code is amended to read:
7522.25. (a) Each retirement system that of fers a defined benefit plan for safety members of the system shall use one or more of the defined benefit formulas prescribed by this section. A member may retire for service under an y of the formulas in this section after five years of service and upon reaching 50 years of age.
92 AB 1383 — 11 —
(b) The Basic Safety Plan shall provide a pension at retirement for service equal to the percentage of the member’ s final compensation set forth opposite the member’ s age at retirement, taken to the preceding quarter year , in the follo wing table, multiplied by the number of years of service in the system as a safety member.
Fraction Age at Retirement
1.426 50 .........................................................................
1.447 50 1⁄4.......................................................................
1.467 50 1⁄2.......................................................................
1.488 50 3⁄4.......................................................................
1.508 51 .........................................................................
1.529 51 1⁄4.......................................................................
1.549 51 1⁄2.......................................................................
1.570 51 3⁄4.......................................................................
1.590 52 .........................................................................
1.611 52 1⁄4.......................................................................
1.631 52 1⁄2.......................................................................
1.652 52 3⁄4.......................................................................
1.672 53 .........................................................................
1.693 53 1⁄4.......................................................................
1.713 53 1⁄2.......................................................................
1.734 53 3⁄4.......................................................................
1.754 54 .........................................................................
1.775 54 1⁄4.......................................................................
1.795 54 1⁄2.......................................................................
1.816 54 3⁄4.......................................................................
1.836 55 .........................................................................
1.857 55 1⁄4.......................................................................
1.877 55 1⁄2.......................................................................
1.898 55 3⁄4.......................................................................
1.918 56 .........................................................................
1.939 56 1⁄4.......................................................................
1.959 56 1⁄2.......................................................................
1.980 56 3⁄4.......................................................................
2.000 57 and over .......................................................... (c) The Safety Option Plan One shall pro vide a pension at retirement for service equal to the percentage of the member’ s 92 — 12 — AB 1383
final compensation set forth opposite the member’ s age at retirement, taken to the preceding quarter year , in the follo wing table, multiplied by the number of years of service in the system as a safety member.
Fraction Age at Retirement
2.000 50 ...............................................................................
2.018 50 1⁄4.............................................................................
2.036 50 1⁄2.............................................................................
2.054 50 3⁄4.............................................................................
2.071 51 ...............................................................................
2.089 51 1⁄4.............................................................................
2.107 51 1⁄2.............................................................................
2.125 51 3⁄4.............................................................................
2.143 52 ...............................................................................
2.161 52 1⁄4.............................................................................
2.179 52 1⁄2.............................................................................
2.196 52 3⁄4.............................................................................
2.214 53 ...............................................................................
2.232 53 1⁄4.............................................................................
2.250 53 1⁄2.............................................................................
2.268 53 3⁄4.............................................................................
2.286 54 ...............................................................................
2.304 54 1⁄4.............................................................................
2.321 54 1⁄2.............................................................................
2.339 54 3⁄4.............................................................................
2.357 55.................................................................................
2.375 55 1⁄4.............................................................................
2.393 55 1⁄2.............................................................................
2.411 55 3⁄4.............................................................................
2.429 56.................................................................................
2.446 56 1⁄4.............................................................................
2.464 56 1⁄2.............................................................................
2.482 56 3⁄4.............................................................................
2.500 57 and over.................................................................. (d) The Safety Option Plan Two shall pro vide a pension at retirement for service equal to the percentage of the member’ s final compensation set forth opposite the member’ s age at retirement, taken to the preceding quarter year , in the follo wing 92 AB 1383 — 13 —
table, multiplied by the number of years of service in the system as a safety member.
Fraction Age at Retirement
2.000 50 ....................................................................................
2.025 50 1⁄4..................................................................................
2.050 50 1⁄2..................................................................................
2.075 50 3⁄4..................................................................................
2.100 51 ....................................................................................
2.125 51 1⁄4..................................................................................
2.150 51 1⁄2..................................................................................
2.175 51 3⁄4..................................................................................
2.200 52 ....................................................................................
2.225 52 1⁄4..................................................................................
2.250 52 1⁄2..................................................................................
2.275 52 3⁄4..................................................................................
2.300 53 ....................................................................................
2.325 53 1⁄4..................................................................................
2.350 53 1⁄2..................................................................................
2.375 53 3⁄4..................................................................................
2.400 54 ....................................................................................
2.425 54 1⁄4..................................................................................
2.450 54 1⁄2..................................................................................
2.475 54 3⁄4..................................................................................
2.500 55 ....................................................................................
2.525 55 1⁄4..................................................................................
2.550 55 1⁄2..................................................................................
2.575 55 3⁄4..................................................................................
2.600 56 ....................................................................................
2.625 56 1⁄4..................................................................................
2.650 56 1⁄2..................................................................................
2.675 56 3⁄4..................................................................................
2.700 57 and over ..................................................................... (e) On and after January 1, 2013, an employer shall offer one or more of the safety formulas prescribed by this section to ne w members who are safety employees. The formula offered shall be the formula that is closest to, and pro vides a lower benefit at 55 years of age than, the formula pro vided to members in the same 92 — 14 — AB 1383
retirement classification of fered by the emplo yer on December 31, 2012.
(f) On and after January 1, 2013, an employer and its employees subject to Safety Option Plan One or Safety Option Plan Two may agree in a memorandum of understanding to be subject to Safety Option Plan One or the Basic Safety Plan, subject to the following:
(1) The lower plan shall apply to members first emplo yed on or after the effective date of the lower plan and shall be agreed to in a memorandum of understanding that has been collecti vely bargained in accordance with applicable laws.
(2) A retirement plan contract amendment with a public retirement system to alter a retirement formula pursuant to this subdivision shall not be implemented by the emplo yer in the absence of a memorandum of understanding that has been
collectively bargained in accordance with applicable laws. (3) An employer shall not use impasse procedures to impose the lower plan.
(4) An employer shall not pro vide a dif ferent defined benefit for nonrepresented, managerial, or supervisory emplo yees than the emplo yer pro vides for other public emplo yees, including represented employees, of the same employer who are in the same membership classifications.
(g) Pensionable compensation used to calculate the defined benefit shall be limited as described in Section 7522.10. (h) This section shall only apply to service performed between January 1, 2013, and December 31, 2026.
SEC. 7. Section 7522.26 is added to the Government Code, to read:
7522.26. (a) On and after January 1, 2027, each retirement system that offers a defined benefit plan for safety members of the system shall use one or more of the defined benefit formulas prescribed by this section. A member may retire for service under any of the formulas in this section after fiv e years of service and upon reaching 50 years of age.
(b) The Basic Safety Plan shall provide a pension at retirement for service equal to the percentage of the member’ s final compensation set forth opposite the member’ s age at retirement, taken to the preceding quarter year , in the follo wing table, multiplied by the number of years of service in the system as a safety member.
92 AB 1383 — 15 —
Fraction Age at Retirement
1.426 50 ..........................................................................
1.450 50 1⁄4 ........................................................................
1.474 50 1⁄2 ........................................................................
1.498 50 3⁄4 ........................................................................
1.522 51 ..........................................................................
1.550 51 1⁄4 ........................................................................
1.576 51 1⁄2 ........................................................................
1.602 51 3⁄4 ........................................................................
1.628 52 ..........................................................................
1.656 52 1⁄4 ........................................................................
1.686 52 1⁄2 ........................................................................
1.714 52 3⁄4 ........................................................................
1.742 53 ..........................................................................
1.772 53 1⁄4 ........................................................................
1.804 53 1⁄2 ........................................................................
1.834 53 3⁄4 ........................................................................
1.866 54 ..........................................................................
1.900 54 1⁄4 ........................................................................
1.932 54 1⁄2 ........................................................................
1.966 54 3⁄4 ........................................................................
2.000 55 and o ver.............................................................. (c) The Safety Option Plan One shall pro vide a pension at retirement for service equal to the percentage of the member’ s final compensation set forth opposite the member’ s age at retirement, taken to the preceding quarter year , in the follo wing table, multiplied by the number of years of service in the system as a safety member.
Fraction Age at Retirement
2.000 50 ..........................................................................
2.025 50 1⁄4 ........................................................................
2.050 50 1⁄2 ........................................................................
2.075 50 3⁄4 ........................................................................
2.100 51 ..........................................................................
2.125 51 1⁄4 ........................................................................
2.150 51 1⁄2 ........................................................................ 92 — 16 — AB 1383
Fraction Age at Retirement
2.175 51 3⁄4 ........................................................................
2.200 52 ..........................................................................
2.225 52 1⁄4 ........................................................................
2.250 52 1⁄2 ........................................................................
2.275 52 3⁄4 ........................................................................
2.300 53 ..........................................................................
2.325 53 1⁄4 ........................................................................
2.350 53 1⁄2 ........................................................................
2.375 53 3⁄4 ........................................................................
2.400 54 ..........................................................................
2.425 54 1⁄4 ........................................................................
2.450 54 1⁄2 ........................................................................
2.475 54 3⁄4 ........................................................................
2.500 55 and o ver.............................................................. (d) The Safety Option Plan Two shall pro vide a pension at retirement for service equal to the percentage of the member’ s final compensation set forth opposite the member’ s age at retirement, taken to the preceding quarter year , in the follo wing table, multiplied by the number of years of service in the system as a safety member.
Fraction Age at Retirement
2.000 50 ..........................................................................
2.035 50 1⁄4 ........................................................................
2.070 50 1⁄2 ........................................................................
2.105 50 3⁄4 ........................................................................
2.140 51 ..........................................................................
2.175 51 1⁄4 ........................................................................
2.210 51 1⁄2 ........................................................................
2.245 51 3⁄4 ........................................................................
2.280 52 ..........................................................................
2.315 52 1⁄4 ........................................................................
2.350 52 1⁄2 ........................................................................
2.385 52 3⁄4 ........................................................................
2.420 53 ..........................................................................
2.455 53 1⁄4 ........................................................................ 92 AB 1383 — 17 —
Fraction Age at Retirement
2.490 53 1⁄2 ........................................................................
2.525 53 3⁄4 ........................................................................
2.560 54 ..........................................................................
2.595 54 1⁄4 ........................................................................
2.630 54 1⁄2 ........................................................................
2.665 54 3⁄4 ........................................................................
2.700 55 and o ver.............................................................. (e) The Safety Option Plan Three shall pro vide a pension at retirement for service equal to the percentage of the member’ s final compensation set forth opposite the member’ s age at retirement, taken to the preceding quarter year , in the follo wing table, multiplied by the number of years of service in the system as a safety member . For service subject to this subdi vision, the benefit limit shall be 90 percent of final compensation.
Fraction Age at Retirement
2.400 50 ...........................................................................
2.430 50 1⁄4.........................................................................
2.460 50 1⁄2.........................................................................
2.490 50 3⁄4.........................................................................
2.520 51 ...........................................................................
2.550 51 1⁄4.........................................................................
2.580 51 1⁄2.........................................................................
2.610 51 3⁄4.........................................................................
2.640 52 ...........................................................................
2.670 52 1⁄4.........................................................................
2.700 52 1⁄2.........................................................................
2.730 52 3⁄4.........................................................................
2.760 53 ...........................................................................
2.790 53 1⁄4.........................................................................
2.820 53 1⁄2.........................................................................
2.850 53 3⁄4.........................................................................
2.880 54 ...........................................................................
2.910 54 1⁄4.........................................................................
2.940 54 1⁄2.........................................................................
2.970 54 3⁄4......................................................................... 92 — 18 — AB 1383
Fraction Age at Retirement
3.000 55 and over............................................................... (f) For new members hired on or after January 1, 2027, who are safety members, an employer shall offer the formula in this section that has the same fraction at age 55 as the fraction at age 57 in the formula the employer offered pursuant to Section 7522.25 as of December 31, 2026, unless the emplo yer and emplo yees ha ve agreed to a higher or lower safety plan pursuant to subdivision (h) or (i).
(g) For new members hired on or after January 1, 2013, who are safety members, the emplo yer shall adjust their formula as follows:
(1) For service performed between January 1, 2013, and December 31, 2026, the retirement age and formula shall be as offered by the employer between January 1, 2013, and December 31, 2026, and subject to Section 7522.25.
(2) For service performed on or after January 1, 2027, the employer shall offer the formula in this section that has the same fraction at age 55 as the fraction at age 57 in the formula the employer offered pursuant to Section 7522.25. The formula offered shall maintain the percentage of compensation f actor offered as of December 31, 2026, unless the emplo yer and employees have agreed to a higher or lower safety plan pursuant to subdivision (h) or (i).
(3) This section shall not be construed to pro vide retroactive benefits to emplo yees. This section shall adjust the prospecti ve benefit for safety employees by adjusting the retirement age to 55. (h) An employer and its employees may agree in a memorandum of understanding to be subject to a higher safety plan, subject to the following:
(1) The higher plan shall apply to members on or after the effective date of the higher plan and shall be agreed to in a memorandum of understanding that has been collectively bargained in accordance with applicable laws.
(2) The higher plan adopted pursuant to this subdi vision shall be subject to Section 7522.44.
92 AB 1383 — 19 —
(i) An employer and its employees may agree in a memorandum of understanding to be subject to a lo wer safety plan, subject to the following:
(1) The lower plan shall apply to members first emplo yed on or after the effective date of the lower plan and shall be agreed to in a memorandum of understanding that has been collecti vely bargained in accordance with applicable laws.
(2) A retirement plan contract amendment with a public retirement system to alter a retirement formula pursuant to this subdivision shall not be implemented by the emplo yer in the absence of a memorandum of understanding that has been
collectively bargained in accordance with applicable laws. (3) An employer shall not use impasse procedures to impose the lower plan.
(4) An employer shall not pro vide a dif ferent defined benefit for nonrepresented, managerial, or supervisory emplo yees than the emplo yer pro vides for other public emplo yees, including represented employees, of the same employer who are in the same membership classifications.
(j) Pensionable compensation used to calculate the defined benefit shall be limited as described in Section 7522.10. (k) A safety member that is subject to a defined benefit formula prescribed by this section, who is not a ne w member, shall be subject to contrib ution rates established pursuant to Section 7522.30.
SEC. 8. Section 20516 of the Government Code is amended to read:
20516. (a) Notwithstanding any other provision of this part, with or without a change in benefits, a contracting agency and its employees may agree, in writing, to share the costs of the employer contribution. The cost sharing pursuant to this section shall also apply for related nonrepresented emplo yees as appro ved in a resolution passed by the contracting agency.
(b) The collecti ve bar gaining agreement or memorandum of understanding ratified by the emplo yee bargaining unit and the governing body of the contracting agenc y shall specify the exact percentage of member compensation that shall be paid toward the current service cost of the benefits by members or the methodology for calculating that cost-sharing rate. The member contributions shall be contrib utions o ver and abo ve normal contrib utions 92 — 20 — AB 1383
otherwise required by this part and shall be treated as normal contributions for all purposes of this part. The contributions shall be uniform, except as described in subdivision (c), with respect to all members within each of the follo wing classifications: local miscellaneous members, local police officers, local firefighters, county peace officers, and all local safety members other than local police officers, local firefighters, and county peace officers. The balance of any costs shall be paid by the contracting agenc y and shall be credited to the employer’s account. An employer shall not use impasse procedures to impose member cost sharing on an y contribution amount above that which is authorized by law. (c) Member cost sharing may differ by classification for groups of employees subject to dif ferent levels of benefits pursuant to Sections 7522.20, 7522.25, 7522.26, and 20475, or by a recognized collective bar gaining unit if agreed to in a memorandum of understanding reached pursuant to the applicable collecti ve bargaining laws.
(d) This section shall not apply to an y contracting agency nor to the employees of a contracting agenc y until the agenc y elects to be subject to this section by contract or by amendment to its contract made in the manner prescribed for approval of contracts.
Contributions pro vided by this section shall be withheld from member compensation or otherwise collected when the contract amendment becomes effective. Once the contracting agency elects to be subject to this section, contract amendments shall not be required to ef fectuate cost sharing in subsequent collecti ve bargaining agreements or memoranda of understanding ratified by the emplo yee bargaining unit and the go verning body of the agency; pro vided, ho wever, that if a collecti ve bar gaining agreement or memorandum of understanding sets forth a
methodology for calculating the cost-sharing rate instead of an exact percentage, the contracting agenc y shall pro vide the retirement system with a signed side letter ratified by the employee bargaining unit and the agency indicating the exact percentage at least 90 days prior to the effective date of the cost-sharing rate as set forth in the signed side letter.
(e) For the purposes of this section, all contributions, liabilities, actuarial interest rates, and other v aluation f actors shall be determined on the basis of actuarial assumptions and methods that, 92 AB 1383 — 21 —
in the aggregate, are reasonable and that, in combination, offer the actuary’s best estimate of anticipated experience under this system. (f) Nothing in this section shall preclude a contracting agenc y and its employees from independently agreeing in a memorandum of understanding to share the costs of an y benefit, in a manner inconsistent with this section. Ho wever, an y agreement in a memorandum of understanding that is inconsistent with this section shall not be part of the contract between this system and the contracting agency.
(g) If, and to the e xtent that, the board determines that a cost-sharing agreement under this section would conflict with Title 26 of the United States Code, the board may refuse to approve the agreement.
(h) Nothing in this section shall require a contracting agency to enter into a memorandum of understanding or collective bargaining agreement with a bar gaining representative in order to increase the amount of member contrib utions when such a member
contribution increase is authorized by other provisions under this part.
SEC. 9. It is the intent of the Legislature that this act shall not be construed to af fect any retirement benefits or pension rights accrued before its effective date.
92 — 22 — AB 1383
Approved , 2026
Governor