20250AB__056998AMD INTRODUCED 2025-02-12 AMENDED_ASSEMBLY 2025-04-24 2025 AB AMD Introduced by Assembly Member Stefani LEAD_AUTHOR ASSEMBLY Stefani

An act to amend

Section 7522.18 of the Government Code, relating to retirement benefits. retirement benefits California Public Employees’ Pension Reform Act of 2013: exceptions: supplemental defined benefit plans. Existing law, the California Public Employees’ Pension Reform Act of 2013 (PEPRA), on and after January 1, 2013, requires a public retirement system, as defined, to modify its plan or plans to comply with PEPRA, as specified.

Among other things, PEPRA prohibits a public employer from offering a defined benefit pension plan exceeding specified retirement formulas, requires new members of public retirement systems to contribute at least a specified amount of the normal cost, as defined, for their defined benefit plans, and prohibits an enhancement of a public employee’s retirement formula or benefit adopted after January 1, 2013, from applying to service performed prior to the operative date of the enhancement.

PEPRA prohibits a public employer from offering a supplemental defined benefit plan if the public employer did not do so before January 1, 2013, or, if it did, from offering that plan to an additional employee group after that date. This bill would authorize a public employer, as defined, to bargain over contributions for supplemental retirement benefits administered by, or on behalf of, an exclusive bargaining representative of one or more of the public employer’s bargaining units, subject to the limitations specified above.

MAJORITY NO NO NO NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION

Section 7522.18 of the Government Code is amended to read: 7522.18. (

a) A public employer that does not offer a supplemental defined benefit plan before January 1, 2013, shall not offer a supplemental defined benefit plan for any employee on or after January 1, 2013. (

b) A public employer that provides a supplemental defined benefit plan, including a defined benefit plan offered by a private provider, before January 1, 2013, shall not offer a supplemental defined benefit plan to any additional employee group to which the plan was not provided before January 1, 2013. (

c) Except as provided in

Chapter 38 (commencing with

Section 25000) of

Article of Part of Title of the Education Code, a public employer shall not offer or provide a supplemental defined benefit plan, including a defined benefit plan offered by a private provider, to any employee hired on or after January 1, 2013. (

d) A public employer, as defined in paragraph (2) of subdivision (

i) of

Section 7522.04, may bargain over contributions for supplemental retirement benefits administered by, or on behalf of, an exclusive bargaining representative of one or more of the public employer’s bargaining units, subject to the limitations set forth in this section.