As the representatives of Tulare County's first and second supervisorial districts, we write to respectfully oppose Assembly Bill 2493 (AB 2493) by Assemblymember Chen, which would allow for the retroactive adjustment of
retirement benefits relating to disallowed compensation for certain members of 1937 Act County Retirement Systems ('37 act systems). Provisions of this bill will enact a steep penalty against counties for their good faith effort
to comply with the California Supreme Court's (Court) ruling in the Alameda County Deputy Sheriffs Assn. v Alameda County Employees' Retirement Assn. case (Alameda decision) as it relates to the Public Employees'
Pension Reform Act of 2013 (PEPRA).
In the 2020 Alameda decision, the Court ruled that legacy '37 Act system members did not have a right to benefits earned that were inconsistent with the amendments made to the County Employees Retirement Law (CERL) under PEPRA that determined disallowed forms of compensation for retirement calculations. Over the past two years, counties who found themselves out of compliance with PEPRA since its passage in 2013 have worked to come into compliance with PEPRA by recalculating retirement benefits for '37 Act system members who retired after January 1, 2013.
AB 2493 undermines the Alameda decision and creates a path to circumvent PEPRA by allowing retirees to claim disallowed forms of compensation in their retirement calculations, which counties will be responsible for paying. Not only does this once again facilitate pension spiking, but it punishes counties to the tune of tens of millions of dollars by holding them liable for the financial restitution of retirees negatively impacted by the Alameda decision. Counties were not responsible for the passage of PEPRA nor were they responsible for the Alameda decision. Counties have simply acted in good faith to honor pension agreements and adhere to the law as written.
AB 2493 will place a significant, and unanticipated, financial burden on county's general funds. Which could result in sizeable reductions to critical programs such as public safety, transportation, and behavioral health. For these
reasons we must respectfully oppose AB 2493.
Sincerely,
Larry Micari, District One and Pete Vander Poel III, District Two
Tulare County Board of Supervisors
cc: Office of Assembly Member Chen, Tulare Delegation, Shaw Yoder Antwih Schmelzer & Lang