PREPARED BY: MATT RODRIGUEZ DATE OF MEETING: 09/21/2026
SUBJECT:
TITLE
CONSIDER RATIFICATION OF MAYOR PABON-ALVARADO’S LETTER TO GOVERNOR NEWSOM REQUESTING A VETO OF AB 1383 (MCKINNOR) LEGISLATION — PUBLIC EMPLOYEES’ RETIREMENT BENEFITS
CEQA: This proposed action is not a project as defined by CEQA.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Authorize by Minute Order
Body
Compliance Statements
FY2025-27 CITY COUNCIL PRIORITY WORKPLAN
Major Policy Area: Focus on Economic Development and Fiscal Diversification is an adopted policy contained in the adopted FY 2025-27 Council Priority Workplan, adopted on April 7, 2025.
CEQA COMPLIANCE STATEMENT
This proposed action is not a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378.
BACKGROUND
AB 1383 (McKinnor) amends public employees’ retirement benefits in ways that re-open core provisions of the Public Employees’ Pension Reform Act of 2013 (PEPRA). Principally, the bill lowers the safety retirement age from 57 to 55 and raises the pensionable compensation cap applicable to PEPRA members, moving safety formulas toward a 3% @ 55 structure. Unfortunately, AB 1383 passed the State Legislature on August 30, 2026, and was enrolled for the Governor’s signature on September 3, 2026, with a constitutional deadline of September 30, 2026. At time of agenda preparation, the Governor has not yet signed AB 1383 into law.
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 exceptions. 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 offer the formula that has the same fraction at age 55 as the fraction at age 57 in the formula the employer offered pursuant to existing law. Additionally, the bill would...
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