Bill > AB1054

This bill establishes a Deferred Retirement Option Program (DROP) for employees in State Bargaining Units 5 (Highway Patrol) and 8 (Firefighters) within the California Public Employees’ Retirement System (PERS). The program allows eligible safety members to remain employed for up to five years beyond their planned retirement date, receiving a lump-sum payment of their accumulated program account upon termination and retirement. To be implemented, the program must be agreed upon through collective bargaining, undergo an actuarial analysis to ensure it is cost-neutral or results in cost savings, and have regulations adopted by the PERS Board of Administration. Participants must waive certain claims, including those related to age and employment discrimination, and their spouses must acknowledge potential reductions in benefits. The bill also outlines provisions for program accounts, beneficiary designations, and reporting requirements to the Legislature.

Budget and Finance, Labor and Employment

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1054