Bill > AB1383

This bill, effective January 1, 2027, aims to update retirement benefits for public safety members by adjusting pensionable compensation limits to align with federal law and introducing new retirement formulas. Specifically, it modifies how pensionable compensation, which is the amount of salary used to calculate retirement benefits, is capped, ensuring it remains consistent with federal limits for tax-exempt retirement plans. For safety members, the bill introduces new retirement formulas that allow for earlier retirement with a higher benefit multiplier, such as 2.5% at age 55, 2.7% at age 55, or 3% at age 55, replacing the previous options that were generally tied to age 57. It also allows public employers and employee organizations to negotiate these new formulas, and importantly, permits employers and employees to collectively bargain for the employer to contribute a portion of the employee's required retirement contributions, a change from the previous requirement that employees pay at least 50% of normal costs. The bill also makes technical adjustments to existing laws regarding retirement formulas and contribution sharing for safety members.

Budget and Finance, Labor and Employment

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1383