PREPARED BY: MATT RODRIGUEZ DATE OF MEETING: 04/19/21
SUBJECT:
TITLE
CITY COUNCIL AUTHORIZATION TO RATIFY OPPOSITION LETTER FROM SAN PABLO MAYOR PABON-ALVARADO ON STATE OF CALIFORNIA PROPOSED LEGISLATION RELATED TO PUBLIC EMPLOYEES' RETIREMENT SYSTEM GIFT OF PUBLIC FUNDS - SENATE BILL 278 (LEYVA)
Label
CITY MANAGER RECOMMENDATION
Recommendation
Approve by Minute Order
BODY
COMPLIANCE STATEMENTS
Major Policy Goal: Enhance Community Resilience are an adopted policy item contained in the adopted FY 2021-23 City Council Priority Workplan, effective March 15, 2021.
CEQA Compliance Statement
This is not a project as defined by CEQA pursuant to 14 Cal. Code of Regulations section 15378.
BACKGROUND
The California Public Employees' Pension Reform Act of 2013 (PEPRA) generally requires a public retirement system, as defined, to modify its plan or plans to comply with the act. PEPRA, among other things, establishes new defined benefit formulas and caps on pensionable compensation.
Proposed State Legislation SB 278 (Leyva)
SB 278, proposed by State Senator Connie Leyva (20th District), would establish new procedures under Public Employees Retirement Law (PERL) for cases in which PERS determines that the benefits of a member or annuitant are, or would be, based on disallowed compensation that conflicts with PEPRA and other specified laws, and thus is impermissible under PERL.
The proposed bill would also apply these procedures retroactively to determinations made on or after January 1, 2017, if an appeal has been filed and the employee member, survivor, or beneficiary has not exhausted their administrative or legal remedies. At the threshold, after determining that compensation for an employee member reported by the state, school employer, or a contracting agency is disallowed, the bill would require the applicable employer to discontinue the reporting of the disallowed compensation.
SB 278 is a reintroduction of SB 266 (Leyva, 2019) and will require pub...
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