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 Members Ávila Farías, Boerner, and Nguyen) (Coauthor: Senator Grayson)
(Coauthors: Assembly Members Ahrens, Alanis, Ávila Farías, Boerner, Calderon, Castillo, Chen, Connolly, Flora, Hoover, Krell, Nguyen, Ortega, Patterson, Ramos, Ransom, and Solache)
(Coauthors: Senators Grayson and Pérez)
February 21, 2025
An act to amend Sections 7522.10, 7522.25, and 7522.30 7522.10 and 7522.25 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 emplo yees’ retirement benefits. benefits: safety members.
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 Emplo yees’ Retirement Fund, which is continuously appropriated for purposes of PERS, including depositing employer and
Corrected 1-27-26—See last page. 96
employee contributions. Under the California Constitution, assets of a public pension or retirement system are trust funds.
The California Public Emplo yees’ 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 la w with respect to old age, survi vors, and disability insurance benefits.
Existing law, the Teachers’ Retir ement Law, establishes the State Teachers’ Retirement System (STRS) and cr eates the Defined Benefit Program of the State Teachers’ Retir ement Plan, whic h pr ovides a defined benefit to members of the program, based on final compensation, creditable service, and age at retirement, subject to certain variations.
This bill, on and after January 1, 2026, 2027, w ould require a retirement system subject to PEPRA to adjust pensionable compensation limits to be consistent with a defined benefit limitation established and annually adjusted under federal law with respect to tax exempt qualified trusts. 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 r equire a ne w 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 w ould establish ne w retirement formulas, for emplo yees first hired on or after January 1, 2026, 2027, as 2.5% at age 55, 2.7% at age 55, or 3% at age 55. For new members hired on or after January 1, 2013, who are safety members, the bill w ould require employers to adjust the formulas for service performed on or after January 1, 2026, 2027, to offer one of the 3 formulas for safety members that is closest to the formula the employer provided pursuant to existing law. The bill would authorize a public emplo yer and a recognized emplo yee organization to negotiate a prospective increase to the retirement benefit formulas for safety members and new safety members, consistent with the formulas permitted under the act. PEPRA, including the ne w 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 96 — 2 — AB 1383
or a lower safety plan, subject to certain requirements, including that the memorandum of understanding is collecti vely bar gained in accordance with applicable laws.
PEPRA requires all public emplo yees to pay at least 50 percent of normal costs and prohibits public emplo yers from paying an y of the required employee contribution.
This bill w ould authorize an emplo yer and emplo yee, through the collective bargaining process, to agree to terms in a memorandum of understanding where the emplo yer pays a portion of emplo yee contribution.
By increasing the contrib ution 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 e xperiencing 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 de veloping multiple types of line 10 cancer due to prolonged e xposure 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 ef fective line 21 workforce while addressing the unique health and occupational line 22 challenges faced by these personnel.
96 AB 1383 — 3 —
line 1 (e) California has a strong history of protecting and promoting line 2 collective bar gaining rights and pro viding opportunities for line 3 employees and emplo yers to bar gain o ver certain retirement line 4 benefits that further enhances opportunities for public employers line 5 and employees to partner on stronger retirement security. line 6 (f) Public emplo yees commit their life to service of their line 7 communities. Allowing employees to bar gain over the payment line 8 of the normal cost between employees and employers will facilitate line 9 further discussion at the bar gaining table, impro ving conditions line 10 for all employees.
line 11 (g)
line 12 (f) The compensation cap established under the public employee line 13 pension reform act, California Public Employees’ Pension Reform line 14 Act of 2013 places limits that are significantly less than the current line 15 federal limit. To reflect current wage rates across both safety and line 16 miscellaneous emplo yees, it is necessary to reconsider the line 17 appropriate compensation cap level, consistent with federal limits. line 18 SEC. 2. Section 7522.10 of the Government Code is amended line 19 to read:
line 20 7522.10. (a) On and after January 1, 2013, each public line 21 retirement system shall modify its plan or plans to comply with line 22 the requirements of this section for each public emplo yer that line 23 participates in the system.
line 24 (b) Whenever pensionable compensation, as defined in Section line 25 7522.34, is used in the calculation of a benefit, the pensionable line 26 compensation shall be subject to the limitations set forth in line 27 subdivision (c).
line 28 (c) (1) The pensionable compensation used to calculate the line 29 defined benefit paid to a new member who retires from the system line 30 shall not e xceed the follo wing applicable percentage of the line 31 contribution and benefit base specified in Section 430(b) of Title line 32 42 of the United States Code on January 1, 2013:
line 33 (A) One hundred percent for a member whose service is included line 34 in the federal system.
line 35 (B) One hundred twenty percent for a member whose service line 36 is not included in the federal system.
line 37 (2) On and after January 1, 2026, 2027, a retirement system line 38 subject to this article shall adjust pensionable compensation limits line 39 established by this subdi vision to be consistent with the defined line 40 benefit rate established by Section 415(b)(1)(A) of Title 26 of the 96 — 4 — AB 1383
line 1 United States Code, as adjusted annually . following applicable line 2 percentage of the contribution and benefit base specified in Section line 3 430(b) of Title 42 of the United States Code on January 1, 2027:
line 4 (A) One hundred percent for a member whose service is included line 5 in the federal system.
line 6 (B) One hundred thirty-five percent for a member whose service line 7 is not included in the federal system.
line 8 (3) A ne w member of the State Teachers’ Retirement System line 9 shall be subject to the limit established pur suant to subdivision line 10 (d) of Section 22119.3 of, or subdivision (c) of Section 26139.5 of, line 11 the Education Code.
line 12 (d) (1) The retirement system shall adjust the pensionable line 13 compensation described in subdi vision (c) based on the annual line 14 changes to the Consumer Price Inde x for All Urban Consumers:
line 15 U.S. City Average, calculated by di viding the Consumer Price line 16 Index for All Urban Consumers: U.S. City Average, for the month line 17 of September in the calendar year preceding the adjustment by the line 18 Consumer Price Inde x for All Urban Consumers: U.S. City line 19 Average, for the month of September of the previous year rounded line 20 to the nearest thousandth. The adjustment shall be ef fective line 21 annually on January 1, beginning in 2014.
line 22 (2) The Legislature reserves the right to modify the requirements line 23 of this subdivision with regard to all public employees subject to line 24 this section, e xcept that the Le gislature may not modify these line 25 provisions in a manner that would result in a decrease in benefits line 26 accrued prior to the effective date of the modification. line 27 (e) A public employer shall not of fer a defined benefit or an y line 28 combination of defined benefits, including a defined benefit offered line 29 by a private provider, on compensation in excess of the limitation line 30 in subdivision (c).
line 31 (f) (1) Subject to the limitation in subdi vision (c) of Section line 32 7522.42, a public employer may provide a contribution to a defined line 33 contribution plan for compensation in e xcess of the limitation in line 34 subdivision (c) pro vided the plan and the contrib ution meet the line 35 requirements and limits of federal law.
line 36 (2) A public employee who receives an employer contribution line 37 to a defined contrib ution plan shall not ha ve a v ested right to line 38 continue receiving the employer contribution.
line 39 (g) Any emplo yer contrib utions to an y emplo yee defined line 40 contribution plan abo ve the pensionable compensation limits in 96 AB 1383 — 5 —
line 1 subdivision (c) shall not exceed the employer’s contribution rate, line 2 as a percentage of pay, required to fund the defined benefit plan line 3 for income subject to the limitation in subdi vision (c) of Section line 4 7522.42.
line 5 (h) The retirement system shall limit the pensionable line 6 compensation used to calculate the contrib utions required of an line 7 employer or a ne w member to the amount of compensation that line 8 would be used for calculating a defined benefit as set forth in line 9 subdivision (c) or (d).
line 10 SEC. 3. Section 7522.19 is added to the Government Code, to line 11 read:
line 12 7522.19. (a) Notwithstanding any other law, a public employer line 13 and a recognized emplo yee or ganization may ne gotiate a line 14 prospective increase to the retirement benefit formulas for safety line 15 members and new safety members, consistent with the formulas line 16 permitted under this article. article, including Section 7522.26. line 17 (b) Benefit formula increases adopted pursuant to this section line 18 shall be established in accordance with Section 7522.44 of this line 19 article. 7522.44.
line 20 (c) For safety members, prospective benefit enhancement may line 21 be considered using the formulas included in Section 7522.26. line 22 SEC. 4. Section 7522.25 of the Government Code is amended line 23 to read:
line 24 7522.25. (a) Each retirement system that of fers a defined line 25 benefit plan for safety members of the system shall use one or line 26 more of the defined benefit formulas prescribed by this section. A line 27 member may retire for service under an y of the formulas in this line 28 section after five years of service and upon reaching 50 years of line 29 age.
line 30 (b) The Basic Safety Plan shall provide a pension at retirement line 31 for service equal to the percentage of the member’ s final line 32 compensation set forth opposite the member’ s age at retirement, line 33 taken to the preceding quarter year , in the follo wing table, line 34 multiplied by the number of years of service in the system as a line 35 safety member.
line 36
line 37 Fraction Age at Retirement
line 38 1.426 50 ......................................................................... line 39 1.447 50 1⁄4....................................................................... line 40 1.467 50 1⁄2....................................................................... 96 — 6 — AB 1383
line 1 1.488 50 3⁄4....................................................................... line 2 1.508 51 ......................................................................... line 3 1.529 51 1⁄4....................................................................... line 4 1.549 51 1⁄2....................................................................... line 5 1.570 51 3⁄4....................................................................... line 6 1.590 52 ......................................................................... line 7 1.611 52 1⁄4....................................................................... line 8 1.631 52 1⁄2....................................................................... line 9 1.652 52 3⁄4....................................................................... line 10 1.672 53 ......................................................................... line 11 1.693 53 1⁄4....................................................................... line 12 1.713 53 1⁄2....................................................................... line 13 1.734 53 3⁄4....................................................................... line 14 1.754 54 ......................................................................... line 15 1.775 54 1⁄4....................................................................... line 16 1.795 54 1⁄2....................................................................... line 17 1.816 54 3⁄4....................................................................... line 18 1.836 55 ......................................................................... line 19 1.857 55 1⁄4....................................................................... line 20 1.877 55 1⁄2....................................................................... line 21 1.898 55 3⁄4....................................................................... line 22 1.918 56 ......................................................................... line 23 1.939 56 1⁄4....................................................................... line 24 1.959 56 1⁄2....................................................................... line 25 1.980 56 3⁄4....................................................................... line 26 2.000 57 and over .......................................................... line 27
line 28 (c) The Safety Option Plan One shall pro vide a pension at line 29 retirement for service equal to the percentage of the member’ s line 30 final compensation set forth opposite the member’ s age at line 31 retirement, taken to the preceding quarter year , in the follo wing line 32 table, multiplied by the number of years of service in the system line 33 as a safety member.
line 34
line 35 Fraction Age at Retirement
line 36 2.000 50 ............................................................................... line 37 2.018 50 1⁄4............................................................................. line 38 2.036 50 1⁄2............................................................................. line 39 2.054 50 3⁄4............................................................................. line 40 2.071 51 ............................................................................... 96 AB 1383 — 7 —
line 1 2.089 51 1⁄4............................................................................. line 2 2.107 51 1⁄2............................................................................. line 3 2.125 51 3⁄4............................................................................. line 4 2.143 52 ............................................................................... line 5 2.161 52 1⁄4............................................................................. line 6 2.179 52 1⁄2............................................................................. line 7 2.196 52 3⁄4............................................................................. line 8 2.214 53 ............................................................................... line 9 2.232 53 1⁄4............................................................................. line 10 2.250 53 1⁄2............................................................................. line 11 2.268 53 3⁄4............................................................................. line 12 2.286 54 ............................................................................... line 13 2.304 54 1⁄4............................................................................. line 14 2.321 54 1⁄2............................................................................. line 15 2.339 54 3⁄4............................................................................. line 16 2.357 55................................................................................. line 17 2.375 55 1⁄4............................................................................. line 18 2.393 55 1⁄2............................................................................. line 19 2.411 55 3⁄4............................................................................. line 20 2.429 56................................................................................. line 21 2.446 56 1⁄4............................................................................. line 22 2.464 56 1⁄2............................................................................. line 23 2.482 56 3⁄4............................................................................. line 24 2.500 57 and over.................................................................. line 25
line 26 (d) The Safety Option Plan Two shall pro vide 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 follo wing line 30 table, multiplied by the number of years of service in the system line 31 as a safety member.
line 32
line 33 Fraction Age at Retirement
line 34 2.000 50 .................................................................................... line 35 2.025 50 1⁄4.................................................................................. line 36 2.050 50 1⁄2.................................................................................. line 37 2.075 50 3⁄4.................................................................................. line 38 2.100 51 .................................................................................... line 39 2.125 51 1⁄4.................................................................................. line 40 2.150 51 1⁄2.................................................................................. 96 — 8 — AB 1383
line 1 2.175 51 3⁄4.................................................................................. line 2 2.200 52 .................................................................................... line 3 2.225 52 1⁄4.................................................................................. line 4 2.250 52 1⁄2.................................................................................. line 5 2.275 52 3⁄4.................................................................................. line 6 2.300 53 .................................................................................... line 7 2.325 53 1⁄4.................................................................................. line 8 2.350 53 1⁄2.................................................................................. line 9 2.375 53 3⁄4.................................................................................. line 10 2.400 54 .................................................................................... line 11 2.425 54 1⁄4.................................................................................. line 12 2.450 54 1⁄2.................................................................................. line 13 2.475 54 3⁄4.................................................................................. line 14 2.500 55 .................................................................................... line 15 2.525 55 1⁄4.................................................................................. line 16 2.550 55 1⁄2.................................................................................. line 17 2.575 55 3⁄4.................................................................................. line 18 2.600 56 .................................................................................... line 19 2.625 56 1⁄4.................................................................................. line 20 2.650 56 1⁄2.................................................................................. line 21 2.675 56 3⁄4.................................................................................. line 22 2.700 57 and over ..................................................................... line 23
line 24 (e) On and after January 1, 2013, an employer shall offer one line 25 or more of the safety formulas prescribed by this section to ne w line 26 members who are safety employees. The formula offered shall be line 27 the formula that is closest to, and pro vides a lower benefit at 55 line 28 years of age than, the formula pro vided to members in the same line 29 retirement classification of fered by the emplo yer on December line 30 31, 2012.
line 31 (f) On and after January 1, 2013, an employer and its employees line 32 subject to Safety Option Plan One or Safety Option Plan Two may line 33 agree in a memorandum of understanding to be subject to Safety line 34 Option Plan One or the Basic Safety Plan, subject to the following:
line 35 (1) The lower plan shall apply to members first emplo yed on line 36 or after the effective date of the lower plan, and shall be agreed to line 37 in a memorandum of understanding that has been collecti vely line 38 bargained in accordance with applicable laws.
line 39 (2) A retirement plan contract amendment with a public line 40 retirement system to alter a retirement formula pursuant to this 96 AB 1383 — 9 —
line 1 subdivision shall not be implemented by the emplo yer in the line 2 absence of a memorandum of understanding that has been line 3 collectively bargained in accordance with applicable laws. line 4 (3) An employer shall not use impasse procedures to impose line 5 the lower plan.
line 6 (4) An employer shall not pro vide a dif ferent defined benefit line 7 for nonrepresented, managerial, or supervisory emplo yees than line 8 the emplo yer pro vides for other public emplo yees, including line 9 represented employees, of the same employer who are in the same line 10 membership classifications.
line 11 (g) Pensionable compensation used to calculate the defined line 12 benefit shall be limited as described in Section 7522.10. line 13 (h) This section shall only apply to service performed between line 14 January 1, 2013, and December 31, 2025. 2026.
line 15 SEC. 5. Section 7522.26 is added to the Government Code, to line 16 read:
line 17 7522.26. (a) On and after January 1, 2026, 2027, each line 18 retirement system that of fers a defined benefit plan for safety line 19 members of the system shall use one or more of the defined benefit line 20 formulas prescribed by this section. A member may retire for line 21 service under any of the formulas in this section after fiv e years line 22 of service and 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 follo wing table, line 27 multiplied by the number of years of service in the system as a line 28 safety member.
line 29
line 30 Age at
line 31 Fraction Retirement Age at Retirement
line 32 1.426 50 .......................................................................... line 33 1.450 50 1⁄4 ........................................................................ line 34 1.474 50 1⁄2 ........................................................................ line 35 1.498 50 3⁄4 ........................................................................ line 36 1.522 51 .......................................................................... line 37 1.550 51 1⁄4 ........................................................................ line 38 1.576 51 1⁄2 ........................................................................ line 39 1.602 51 3⁄4 ........................................................................ line 40 1.628 52 .......................................................................... 96 — 10 — AB 1383
line 1 Age at
line 2 Fraction Retirement Age at Retirement
line 3 1.656 52 1⁄4 ........................................................................ line 4 1.686 52 1⁄2 ........................................................................ line 5 1.714 52 3⁄4 ........................................................................ line 6 1.742 53 .......................................................................... line 7 1.772 53 1⁄4 ........................................................................ line 8 1.804 53 1⁄2 ........................................................................ line 9 1.834 53 3⁄4 ........................................................................ line 10 1.866 54 .......................................................................... line 11 1.900 54 1⁄4 ........................................................................ line 12 1.932 54 1⁄2 ........................................................................ line 13 1.966 54 3⁄4 ........................................................................ line 14 2.000 55 and o ver.............................................................. line 15
line 16 (c) The Safety Option Plan One shall pro vide 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 follo wing line 20 table, multiplied by the number of years of service in the system line 21 as a safety member.
line 22
line 23 Age at
line 24 Fraction Retirement Age at Retirement
line 25 2.000 50 .......................................................................... line 26 2.025 50 1⁄4 ........................................................................ line 27 2.050 50 1⁄2 ........................................................................ line 28 2.075 50 3⁄4 ........................................................................ line 29 2.100 51 .......................................................................... line 30 2.125 51 1⁄4 ........................................................................ line 31 2.150 51 1⁄2 ........................................................................ line 32 2.175 51 3⁄4 ........................................................................ line 33 2.200 52 .......................................................................... line 34 2.225 52 1⁄4 ........................................................................ line 35 2.250 52 1⁄2 ........................................................................ line 36 2.275 52 3⁄4 ........................................................................ line 37 2.300 53 .......................................................................... line 38 2.325 53 1⁄4 ........................................................................ line 39 2.350 53 1⁄2 ........................................................................ line 40 2.375 53 3⁄4 ........................................................................ 96 AB 1383 — 11 —
line 1 Age at
line 2 Fraction Retirement Age at Retirement
line 3 2.400 54 .......................................................................... line 4 2.425 54 1⁄4 ........................................................................ line 5 2.450 54 1⁄2 ........................................................................ line 6 2.475 54 3⁄4 ........................................................................ line 7 2.500 55 and o ver.............................................................. line 8
line 9 (d) The Safety Option Plan Two shall pro vide 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 follo wing line 13 table, multiplied by the number of years of service in the system line 14 as a safety member.
line 15
line 16 Age at
line 17 Fraction Retirement Age at Retirement
line 18 2.000 50 .......................................................................... line 19 2.035 50 1⁄4 ........................................................................ line 20 2.070 50 1⁄2 ........................................................................ line 21 2.105 50 3⁄4 ........................................................................ line 22 2.140 51 .......................................................................... line 23 2.175 51 1⁄4 ........................................................................ line 24 2.210 51 1⁄2 ........................................................................ line 25 2.245 51 3⁄4 ........................................................................ line 26 2.280 52 .......................................................................... line 27 2.315 52 1⁄4 ........................................................................ line 28 2.350 52 1⁄2 ........................................................................ line 29 2.385 52 3⁄4 ........................................................................ line 30 2.420 53 .......................................................................... line 31 2.455 53 1⁄4 ........................................................................ line 32 2.490 53 1⁄2 ........................................................................ line 33 2.525 53 3⁄4 ........................................................................ line 34 2.560 54 .......................................................................... line 35 2.595 54 1⁄4 ........................................................................ line 36 2.630 54 1⁄2 ........................................................................ line 37 2.665 54 3⁄4 ........................................................................ line 38 2.700 55 and o ver.............................................................. line 39
96 — 12 — AB 1383
line 1 (e) The Safety Option Plan Three shall pro vide 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 follo wing line 5 table, multiplied by the number of years of service in the system line 6 as a safety member . F or service subject to this subdi vision line 7 subdivision, the benefit limit shall be 90 percent of final line 8 compensation.
line 9
line 10 Age at
line 11 Fraction Retirement Age at Retirement
line 12 2.400 50 ........................................................................... line 13 2.430 50 1⁄4......................................................................... line 14 2.460 50 1⁄2......................................................................... line 15 2.490 50 3⁄4......................................................................... line 16 2.520 51 ........................................................................... line 17 2.550 51 1⁄4......................................................................... line 18 2.580 51 1⁄2......................................................................... line 19 2.610 51 3⁄4......................................................................... line 20 2.640 52 ........................................................................... line 21 2.670 52 1⁄4......................................................................... line 22 2.700 52 1⁄2......................................................................... line 23 2.730 52 3⁄4......................................................................... line 24 2.760 53 ........................................................................... line 25 2.790 53 1⁄4......................................................................... line 26 2.820 53 1⁄2......................................................................... line 27 2.850 53 3⁄4......................................................................... line 28 2.880 54 ........................................................................... line 29 2.910 54 1⁄4......................................................................... line 30 2.940 54 1⁄2......................................................................... line 31 2.970 54 3⁄4......................................................................... line 32 3.000 55 and over............................................................... line 33
line 34 (f) For new members hired on or after January 1, 2026, 2027, line 35 who are safety members, an emplo yer shall offer one or more of line 36 the safety formulas prescribed by this section to ne w members line 37 who are safety employees. The formula offered shall maintain the line 38 percentage of compensation f actor offered as of December 31, line 39 2025. 2026.
96 AB 1383 — 13 —
line 1 (g) For new members hired on or after January 1, 2013, who line 2 are safety members, the emplo yer shall adjust their formula as line 3 follows:
line 4 (1) For service performed between January 1, 2013, and line 5 December 31, 2025, 2026, the retirement age and formula shall line 6 be as of fered by the emplo yer between January 1, 2013, and line 7 December 31, 2025, 2026, and subject to Section 7522.25. line 8 (2) For service performed on or after January 1, 2026, 2027, line 9 the employer shall offer the formula in this section that is closest line 10 to the formula the employer provided pursuant to Section 7522.25. line 11 The formula offered shall maintain the percentage of compensation line 12 factor offered as of December 31, 2026.
line 13 (3) This section shall not be construed to pro vide retroactive line 14 benefits to emplo yees. This section shall adjust the prospecti ve line 15 benefit for safety employees by adjusting the retirement age to 55. line 16 (h) An employer and its employees may agree in a memorandum line 17 of understanding to be subject to a higher safety plan, subject to line 18 the following:
line 19 (1) The higher plan shall apply to members or after the effective line 20 date of the higher plan, and shall be agreed to in a memorandum line 21 of understanding that has been collectively bargained in accordance line 22 with applicable laws.
line 23 (2) The higher plan adopted pursuant to this subdi vision shall line 24 be subject to Section 7522.44.
line 25 (i) An employer and its employees may agree in a memorandum line 26 of understanding to be subject to a lo wer safety plan, subject to line 27 the following:
line 28 (1) The lower plan shall apply to members first emplo yed on line 29 or after the effective date of the lower plan, and shall be agreed to line 30 in a memorandum of understanding that has been collecti vely line 31 bargained in accordance with applicable laws.
line 32 (2) A retirement plan contract amendment with a public line 33 retirement system to alter a retirement formula pursuant to this line 34 subdivision shall not be implemented by the emplo yer in the line 35 absence of a memorandum of understanding that has been line 36 collectively bargained in accordance with applicable laws. line 37 (3) An employer shall not use impasse procedures to impose line 38 the lower plan.
line 39 (4) An employer shall not pro vide a dif ferent defined benefit line 40 for nonrepresented, managerial, or supervisory emplo yees than 96 — 14 — AB 1383
line 1 the emplo yer pro vides for other public emplo yees, including line 2 represented employees, of the same employer who are in the same line 3 membership classifications.
line 4 (j) Pensionable compensation used to calculate the defined line 5 benefit shall be limited as described in Section 7522.10. line 6 (k) A safety member that is subject to a defined benefit formula line 7 prescribed by this section, who is not a ne w member, shall be line 8 subject to contrib ution rates established pursuant to Section line 9 7522.30.
line 10 SEC. 6. Section 7522.30 of the Government Code is amended line 11 to read:
line 12 7522.30. (a) This section shall apply to all public emplo yers line 13 and to all new members.
line 14 (1) Except as otherwise provided in paragraph (2), equal sharing line 15 of normal costs between public employers and public employees line 16 shall be the standard. The standard shall be that employees pay at line 17 least 50 percent of normal costs and that emplo yers not pay an y line 18 of the required employee contribution.
line 19 (2) On or after January 1, 2026, an emplo yer and emplo yees line 20 may, through the collective bargaining process, agree to terms in line 21 a memorandum of understanding where the emplo yer pays a line 22 portion of employee contribution.
line 23 (b) The “normal cost rate” shall mean the annual actuarially line 24 determined normal cost for the plan of retirement benefits provided line 25 to the new member and shall be established based on the actuarial line 26 assumptions used to determine the liabilities and costs as part of line 27 the annual actuarial valuation. The plan of retirement benefits shall line 28 include any elements that would impact the actuarial determination line 29 of the normal cost, including, b ut not limited to, the retirement line 30 formula, eligibility and vesting criteria, ancillary benefit provisions, line 31 and any automatic cost-of-living adjustments as determined by the line 32 public retirement system.
line 33 (c) New members employed by those public employers defined line 34 in paragraphs (2) and (3) of subdi vision (i) of Section 7522.04, line 35 the Legislature, the California State Uni versity, and the judicial line 36 branch who participate in a defined benefit plan shall ha ve an line 37 initial contribution rate of at least 50 percent of the normal cost line 38 rate for that defined benefit plan, rounded to the nearest quarter line 39 of 1 percent, unless a greater contribution rate has been agreed to 96 AB 1383 — 15 —
line 1 pursuant to the requirements in subdivision (e). This contribution line 2 shall not be paid by the employer on the employee’s behalf. line 3 (d) Notwithstanding subdi vision (c), once established, the line 4 employee contribution rate described in subdivision (c) shall not line 5 be adjusted on account of a change to the normal cost rate unless line 6 the normal cost rate increases or decreases by more than 1 percent line 7 of payroll above or below the normal cost rate in effect at the time line 8 the employee contribution rate is first established or , if later, the line 9 normal cost rate in effect at the time of the last adjustment to the line 10 employee contribution rate under this section.
line 11 (e) Notwithstanding subdi vision (c), emplo yee contrib utions line 12 may be more than one-half of the normal cost rate if the increase line 13 has been agreed to through the collecti ve bar gaining process, line 14 subject to the following conditions:
line 15 (1) The employer shall not contrib ute at a greater rate to the line 16 plan for nonrepresented, managerial, or supervisory emplo yees line 17 than the employer contributes for other public employees, including line 18 represented employees, of the same emplo yer who are in related line 19 retirement membership classifications.
line 20 (2) The employer shall not increase an emplo yee contribution line 21 rate in the absence of a memorandum of understanding that has line 22 been collectively bargained in accordance with applicable laws. line 23 (3) The employer shall not use impasse procedures to increase line 24 an emplo yee contrib ution rate abo ve the rate required by this line 25 section.
line 26 (f) If the terms of a contract, including a memorandum of line 27 understanding, between a public emplo yer and its public line 28 employees, that is in effect on January 1, 2013, would be impaired line 29 by any provision of this section, that provision shall not apply to line 30 the public employer and public employees subject to that contract line 31 until the e xpiration of that contract. A renewal, amendment, or line 32 any other e xtension of that contract shall be subject to the line 33 requirements of this section.
line 34 SEC. 7.
line 35 SEC. 6. It is the intent of the Legislature that this act shall not line 36 be construed to af fect any retirement benefits or pension rights line 37 accrued before its effective date.
96 — 16 — AB 1383
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line 2 CORRECTIONS:
line 3 Heading—Lines 4 and 7.
line 4 Text—Pages 10, 11, 12, and 13.
line 5
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96 AB 1383 — 17 —