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Pension Reform Implementation and Cleanup Legislation

February 4, 2013

SB 13 (Negrete McLeod), a cleanup bill to AB 340, the 2012 pension reform package, was introduced this past December and will likely be heard in the Senate Public Employment and Retirement Committee sometime in mid-February.


The League expects the bill to be amended with additional cleanup provisions before it is heard in its first policy committee. This measure is expected to move quickly through the legislative process once final language and clean up provisions are fully worked out. SB 13 is an urgency measure and will take effect immediately following signature by Gov. Jerry Brown.

Three other bills are expected to be introduced that will conform the pension reforms with individual retirement laws for three public pension systems: the California Public Employees Retirement System (CalPERS), California State Teachers Retirement System (CalSTRS), and the County Employees Retirement Law of 1937 (’37 Act) System.

One of the League’s strategic priorities for 2013 is to continue pension reform and other-post employment benefits (OPEB) reform. The organization’s work on this issue remains vital as the California Public Employees’ Retirement System (CalPERS) moves toward the adoption of regulations to implement the reforms and as cleanup legislation is introduced and moves through the legislative process. 

This year, the League is focused on ensuring that the integrity of the AB 340 reforms remains intact as legislation and the regulatory process move forward. Additionally, the League will be monitoring implementation impacts on cities, which may direct future cleanup efforts, if needed.

The League’s City Managers’ Department Other Post-Employment Benefits (OPEB) task force has already begun work on an this issue including the development of a survey to identify the scope of cities’ liabilities statewide as well as an informational webinar designed to educate both staff and elected officials about the issue of OPEBs. The task force will also be looking to identify ways that cities are funding their OPEB liabilities. Once completed, the results will be shared widely with the membership.

The League will continue to report on the cleanup legislation as well as the CalPERS regulatory process once it gets underway.

For questions please contact Natasha Karl.

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