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California 20252026

AB 1383

Public employees' retirement benefits.

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Source: Open States / PluralUpdated 2026-09-12 13:12:55 UTC.

Official record

Measure details

Jurisdiction
California
Session
20252026
Chamber
lower
Classification
bill, appropriation
Subjects
Publicemployees'retirementbenefits
Introduced / first action
2025-02-21 00:00:00

Alternate titles

  • Car washing and polishing: reporting.
  • Public employees' retirement benefits: safety members.

Source-supplied abstracts

The Public Employees' Retirement Law (PERL) establishes the Public Employees' Retirement System (PERS) to provide a defined benefit to members of the system based on final compensation, credited service, and age at retirement, subject to certain variations. Existing law creates the Public Employees' Retirement Fund, which is continuously appropriated for purposes of PERS, including depositing employer and employee contributions. Under the California Constitution, assets of a public pension or retirement system are trust funds. The California Public Employees' Pension Reform Act of 2013 (PEPRA) establishes a variety of requirements and restrictions on public employers offering defined benefit pension plans. In this regard, PEPRA restricts the amount of compensation that may be applied for purposes of calculating a defined pension benefit for a new member, as defined, by restricting it to specified percentages of the contribution and benefit base under a specified federal law with respect to old age, survivors, and disability insurance benefits. Existing law, the Teachers' Retirement Law, establishes the State Teachers' Retirement System (STRS) and creates the Defined Benefit Program of the State Teachers' Retirement Plan, which provides a defined benefit to members of the program, based on final compensation, creditable service, and age at retirement, subject to certain variations. This bill, for service performed on and after January 1, 2027, would prohibit the pensionable compensation for calendar year 2027 used to calculate the defined benefit paid to a new member of a retirement system subject to PEPRA who retires from the system from exceeding specified percentages of the contribution and benefit base under the specified federal law with respect to old age, survivors, and disability insurance benefits. The bill would make related, conforming changes to these provisions on pensionable compensation. The bill also would require a new member of STRS to be subject to specified limits of the Teachers' Retirement Law. PEPRA requires each retirement system that offers a defined benefit plan for safety members of the system to use one of 3 formulas for safety members, 2% at age 57, 2.5% at age 57, or 2.7% at age 57. This bill would establish new retirement formulas, for employees first hired on or after January 1, 2027, as 2.5% at age 55, 2.7% at age 55, or 3% at age 55, subject to certain exceptions. For new members hired on or after January 1, 2013, who are safety members, the bill would require employers to adjust the formulas for service performed on or after January 1, 2027, to offer the formula that has the same fraction at age 55 as the fraction at age 57 in the formula the employer offered pursuant to existing law. The bill would authorize a public employer and a recognized employee organization to negotiate a prospective increase to the retirement benefit formulas for safety members and new safety members, consistent with the formulas permitted under PEPRA, including the new formulas described above. This bill would authorize an employer and its employees to agree in a memorandum of understanding to be subject to a higher safety plan or a lower safety plan, subject to certain requirements, including that the memorandum of understanding is collectively bargained in accordance with applicable laws. By increasing the contribution to continuously appropriated funds, and by increasing expenditures from those funds, this bill would make an appropriation.

Sponsors

Source-supplied history

Actions

  1. Enrolled and presented to the Governor at 1 p.m.

    executive-receipt

  2. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 69. Noes 2.).

    amendment-passage, committee-passage, committee-passage-favorable

  3. In Assembly. Concurrence in Senate amendments pending.

  4. Read third time. Passed. Ordered to the Assembly. (Ayes 33. Noes 0.).

    passage, reading-1, reading-3

  5. Read second time. Ordered to third reading.

    reading-1, reading-2, reading-3

  6. Read third time and amended. Ordered to second reading.

    amendment-passage, reading-1, reading-2, reading-3

  7. Read second time. Ordered to third reading.

    reading-1, reading-2, reading-3

  8. From committee: Do pass. (Ayes 7. Noes 0.) (August 13).

    committee-passage, committee-passage-favorable

  9. In committee: Referred to APPR. suspense file.

    referral-committee

  10. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on APPR.

    amendment-introduction, amendment-passage, committee-passage, reading-1, reading-2, referral-committee

  11. From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0.) (June 24). Re-referred to Com. on APPR.

    committee-passage, committee-passage-favorable, referral-committee

  12. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on L., P.E. & R.

    amendment-introduction, amendment-passage, committee-passage, reading-1, reading-2, referral-committee

  13. Referred to Com. on L., P.E. & R.

    referral-committee

  14. In Senate. Read first time. To Com. on RLS. for assignment.

    reading-1, referral-committee

  15. Read third time. Passed. Ordered to the Senate. (Ayes 70. Noes 2. Page 3878.)

    passage, reading-1, reading-3

  16. Measure version as amended on January 22 corrected.

    amendment-passage

  17. Read second time. Ordered to third reading.

    reading-1, reading-2, reading-3

  18. Read second time and amended. Ordered returned to second reading.

    amendment-passage, reading-1, reading-2

  19. From committee: Amend, and do pass as amended. (Ayes 12. Noes 0.) (January 22).

    amendment-introduction, amendment-passage, committee-passage

  20. Assembly Rule 63 suspended. (Page 3806.)

  21. In committee: Hearing postponed by committee.

  22. Coauthors revised.

  23. In committee: Set, first hearing. Referred to APPR. suspense file.

    referral-committee

  24. From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (April 23). Re-referred to Com. on APPR.

    committee-passage, committee-passage-favorable, referral-committee

  25. Coauthors revised.

  26. Re-referred to Com. on P. E. & R.

    referral-committee

  27. From committee chair, with author's amendments: Amend, and re-refer to Com. on P. E. & R. Read second time and amended.

    amendment-introduction, amendment-passage, committee-passage, reading-1, reading-2, referral-committee

  28. Re-referred to Com. on P. E. & R.

    referral-committee

  29. From committee chair, with author's amendments: Amend, and re-refer to Com. on P. E. & R. Read second time and amended.

    amendment-introduction, amendment-passage, committee-passage, reading-1, reading-2, referral-committee

  30. Referred to Com. on P. E. & R.

    referral-committee

  31. Read first time.

    reading-1

  32. From printer. May be heard in committee March 24.

  33. Introduced. To print.

    introduction

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