Bill > AB1383

This bill, concerning public employees' retirement benefits, aims to adjust pension calculations and retirement formulas for new public employees, particularly safety personnel like firefighters and police officers, starting January 1, 2027. It modifies the Public Employees’ Retirement Law (PERL) and the California Public Employees’ Pension Reform Act of 2013 (PEPRA) by establishing new, generally more favorable retirement formulas for safety members, allowing them to retire with a higher percentage of their final compensation at an earlier age, specifically age 55 instead of 57, with options for 2.5%, 2.7%, or 3% at age 55. The bill also revises the limits on "pensionable compensation," which is the amount of salary used to calculate retirement benefits, by increasing the allowable percentage of the federal Social Security contribution and benefit base for service performed on or after January 1, 2027. Furthermore, it allows public employers and employee organizations to negotiate these new retirement formulas through collective bargaining agreements, including options for higher or lower safety plans, and makes conforming changes to the State Teachers’ Retirement System (STRS) to align with these new provisions. The bill also includes provisions for adjusting formulas for existing safety members hired after January 1, 2013, and clarifies that it does not affect benefits accrued before its effective date.