Support the LB businesses you see here: Carter Wood Floors, a LB company, will restore your wood floor or install a new one. Special offer for LBReport.com readers, click photo. Who is this guy, Bill Lovelace? Click on picture to find out. NetKontent Digital Video Cutting Edge Services For The Internet, Broadcast and Multimedia. Click For Info This house is well insured. Are you? Want presidential treatment on auto, home, business, health, boat, motorcycle insurance? Call Pollman's Insurance: 23 yrs. in business, 4th generation LB family. Info, click photo Nino's Ristorante: A delicious treasure in Bixby Knolls. Click here if you're hungry or for catering! 3853 Atlantic Ave. Bill & Karen Enterline are ELB realty experts. Click here for info on area property values. Your E-Mail Click here Neighborhood Groups/Meetings How To Recall a LB Elected Official Crime Data City Council Agendas Port of LB Agendas E-Mail Your Councilmember Council District Map LB Parks, Rec & Marine LB Schools LB Airport Watch.org Sacramento Washington References & Archives Lost, Found & Adoptable Pets

LBReport.com News 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 AUTHOR: Dunn TOPIC: Public employees' retirement: local safety m DATE: 04/28/2003 LOCATION: SEN. Public Employment & Retirement Committee MOTION: Do pass, but re-refer to the Committee on Appropriations. (AYES 3. NOES 2.) (PASS) AYES **** Soto Escutia Karnette NOES **** Ashburn Oller ABSENT, ABSTAINING, OR NOT VOTING ********************************* BILL NUMBER: SB 100 INTRODUCED BILL TEXT 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 read: 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.

LEGISLATIVE ANALYSIS
SENATE PUBLIC EMPLOYMENT & RETIREMENT COMMITTEE
BILL NO: SB 100
Nell Soto, Chair             Hearing date: April 28, 2003
SB 100 (Dunn)     as introduced             FISCAL:   YES

PERS:  INCREASING THE LIMITATION ON LOCAL SAFETY MEMBERS'
RETIREMENT BENEFITS FROM 90% TO 100%
 HISTORY  :

Sponsor:  Peace Officers Research Association of
California (PORAC)
California State Firefighters Association (CSFA)

Prior legislation:  SB 90 (Dunn)
Chapter 796 of 2001

SUMMARY :

Would increase the retirement benefit limit for local safety
members of the State Public Employees' Retirement System from
90% to 100% of final compensation.


BACKGROUND AND ANALYSIS :

1)  "3% at age 50" FORMULA
Existing PERS law  provides that most local safety members are
covered by the "3% at age 50" formula.  Under this retirement
formula, a member with 30 years of service would receive a
retirement benefit of 90% of final compensation (3% X 30
years of credited PERS-covered service = 90% of final
compensation).

2)  EXISTING PERS LOCAL SAFETY MEMBER BENEFIT LIMITS

Existing PERS law provides following maximum retirement
benefits for PERS local safety officers :

a)  for those who retired prior to January 1, 2000, the
limit is 75% of final compensation,

b)  for those who retired between January 1,  2000, and
January 1, 2002, the limit is 80% of final compensation,
and

c)  for those who retired after January 1, 2002, the limit
is currently 90% of final compensation.

3)  THIS BILL

This bill  would provide that the benefit limit for PERS local
safety members who retire after January 1, 2004, shall be
100% of final compensation.

COMMENTS :

1)  FISCAL EFFECT

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."

2)  SUPPORT :

Association of Orange County Deputy Sheriffs
Anaheim Police Officers Association
San Francisco Deputy Sheriffs Association
Sacramento County Deputy Sheriffs' Association
State Coalition of Probation Organizations
California State Sheriffs' Association

3)  OPPOSITION :

California State Association of Counties
Howard Jarvis Taxpayers Association
Orange County Taxpayers Association (OCTax)
South Bay Cities Council of Governments
City of Fountain Valley
City of Riverside
City of Garden Grove
City of San Luis Obispo
City of Tustin
City of Walnut Creek
City of Claremont
City of Merced
City of San Mateo
City of Long Beach
City of Montebello
City of Sebastopol
City of Fremont
City of Paramount
City of Salinas
City of Signal Hill
City of Vista
City of La Habra
City of Sunnyvale
City of Redondo Beach
City of Windsor
City of Ontario
City of Cotati

---

Return To Front Page  

Copyright © 2003 LBReport.com, LLC. All rights reserved.
Third parties may cite portions as fair use if attributed to "LBReport.com" (print media) or "Long Beach Report dot com" (electronic media). Terms of Use/Legal policy, click here