Pension Reform Information

This is the latest information I have recieved from PORAC president Ron Cottingham.

Jeff,

I have asked Aaron’s office if they could do an analysis, but in the mean time, I am sending you the legislative analysis of the bill. This analysis does cover some of your questions. The new formulas only apply to new hires. Currently if you have a current MOU, it rules. When it expires the state will attempt to negotiate a contract where the employee pays a higher rate for their pension offset.

This language is found at the top of page 13 in SBx6 22:

(i) Notwithstanding Section 3517.8 or any provision of an expired memorandum of understanding, this section shall apply to a state peace officer/firefighter member who is employed by the state for the first time and becomes a state peace officer/firefighter member of the system on or after January 15, 2011, and is represented by State Bargaining Unit 6 or 7. With respect to related state peace officer/firefighter members in managerial, supervisory, or confidential positions and officers or employees of the executive branch of state government who are not members of the civil service, the Director of the Department of Personnel Administration may exercise his or her discretion whether to approve their status in writing to the board.

(j) (1) This section shall also apply to a state peace officer/firefighter member who is employed by the California State University or judicial branch of government or the Legislature for the first time and becomes a state peace officer/firefighter member on or after January 15, 2011.

(2) If this subdivision is in conflict with a memorandum of understanding that is current and in effect on January 15, 2011, the memorandum of understanding shall be controlling while it remains in effect. Upon expiration of the memorandum of understanding that is in effect and current on January 15, 2011, this section shall be controlling and may not be superseded by a subsequent memorandum of understanding.

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