LB Sen. Karnette Votes For Bill Mandating 100% Salary As Pension For Gov't Public Safety Employees; Measure Is Opposed By LB & Signal Hill City Halls And Howard Jarvis Taxpayers Association
(May 1, 2003, updated May 2) -- LB State Senator Betty Karnette has voted to advance a bill -- opposed by Long Beach and Signal Hill City Halls as well as the Howard Jarvis Taxpayers Association -- that would require cities and other government entities to pay 100% of public safety employees' salaries as pensions for those retiring on or after Jan. 1, 2004.
Sen. Karnette's cast a "yes" vote on SB 100 (vote, text and legislative analysis below) in the CA Senate's "Public Employment and Retirement" Committee which sends the bill to the Senate's Appropriations Committee...where Senator Karnette is also a member (along with state Senator Debra Bowen, who represents the southbay and part of LB).
Committee staff noted that the employment time required to earn the maximum pension benefit would increase to at least 33 1/3 years (instead of the current 30 years)...and also cited an analysis of the bill produced by the "Public Employee Retirement System" (which runs the pension system that the legislature set up for itself and other CA government employees), claiming the bill would produce taxpayer savings, not costs:
The committee is advised that, in order to earn a retirement benefit of 100% of final compensation under the "3% at age 50" formula, a local safety member's service, combined with
any credit for unused sick leave, must amount to at least 33 1/3 years of service (3% X 33 1/3 years of credited PERS-covered service = 100% of final compensation).
According to the PERS analysis of this bill...the cost of increasing the service retirement cap to 100% appears to be negative. Based on our actuarial assumptions, the increase in the service retirement cap will encourage members to keep working for additional years until the new cap is reach. Such a delay in retirement could generate savings even though the benefits payable at retirement are larger because those who work longer to reach the cap will live for that many fewer years in retirement.
[LBReport.com comment: By this logic, having taxpayers pay a 120% pension would produce even greater "savings."]
LBReport.com posts the recorded committee vote, bill text, and committee legislative analysis below.
VOTES - ROLL CALL
MEASURE: SB 100
TOPIC: Public employees' retirement: local safety m
LOCATION: SEN. Public Employment & Retirement Committee
MOTION: Do pass, but re-refer to the Committee on Appropriations.
(AYES 3. NOES 2.) (PASS)
Soto Escutia Karnette
ABSENT, ABSTAINING, OR NOT VOTING
BILL NUMBER: SB 100 INTRODUCED
INTRODUCED BY Senator Dunn
(Principal coauthor: Assembly Member Correa)
JANUARY 29, 2003
An act to amend Section 21390 of, and to add Section 21391 to, the
Government Code, relating to public employees' retirement.
LEGISLATIVE COUNSEL'S DIGEST
SB 100, as introduced, Dunn. Public employees' retirement: local
safety member benefits.
Under the Public Employees' Retirement Law, service retirement
benefits for local safety members who retire on or after January 1,
2002, may not exceed 90% of final compensation.
This bill would increase this benefit limitation to 100% of final
compensation for local safety members who retire on or after January
1, 2004. The bill would also make a technical change.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 21390 of the Government Code is amended to
21390. Notwithstanding Sections 21362, 21362.2, 21363, 21363.1,
21369, and 21370,
and 21389, for local
safety members who retire on or after January 1, 2002, and with
respect to all local safety service rendered to a contracting agency
that is subject to any of those sections, the benefit limit shall be
90 percent of final compensation.
SEC. 2. Section 21391 is added to the Government Code, to read:
21391. Notwithstanding Sections 21362, 21362.2, 21363, 21363.1,
21369, 21370, and 21390, for local safety members who retire on or
after January 1, 2004, and with respect to all local safety service
rendered to a contracting agency that is subject to any of those
sections, the benefit limit shall be 100 percent of final compensation.