Public employees’ retirement benefits.
- Requires public retirement systems to align pension limits with federal benefit rates starting January 2026.
- Mandates annual adjustments to pension compensation based on the Consumer Price Index.
- Prohibits public employers from offering defined benefits above the new compensation limits.
- Allows employers to contribute to defined contribution plans for excess compensation within federal limits.
Assembly Member McKinnor's pension reform legislation would align California's public employee retirement compensation limits with federal standards starting January 1, 2026. The measure modifies how the Public Employees' Retirement System (PERS) calculates pensionable compensation caps for defined benefit plans, transitioning from current percentage-based limits to match federal qualified trust limitations that adjust annually.
The bill maintains existing provisions that set compensation limits at 100% of the federal contribution base for employees in the federal system and 120% for those outside it. However, beginning in 2026, retirement systems must adjust these caps annually according to defined benefit rates established in federal tax code for qualified trusts. The legislation preserves public employers' ability to offer defined contribution plans for compensation above these limits, provided such plans comply with federal requirements and employer contributions do not exceed rates used to fund defined benefits.
These changes would increase contributions to the continuously appropriated Public Employees' Retirement Fund. The bill retains current consumer price index adjustment mechanisms and the Legislature's authority to modify requirements, while protecting previously accrued benefits from reduction. Public employers remain prohibited from offering defined benefits exceeding the compensation limits, and employees have no vested right to continued employer contributions for defined contribution plans above the thresholds.
This bill was recently introduced. Email the authors to let them know what you think about it.
Introduced By
Latest Voting History
 Tom LackeyR Assembly Member | Committee Member |  Not Contacted | |
 Tasha Boerner HorvathD Assembly Member | Committee Member | Not Contacted | |
 Tina McKinnorD Assembly Member | Bill Author | Not Contacted | |
 Juan AlanisR Assembly Member | Committee Member | Not Contacted | |
 Stephanie NguyenD Assembly Member | Committee Member | Not Contacted |
- Requires public retirement systems to align pension limits with federal benefit rates starting January 2026.
- Mandates annual adjustments to pension compensation based on the Consumer Price Index.
- Prohibits public employers from offering defined benefits above the new compensation limits.
- Allows employers to contribute to defined contribution plans for excess compensation within federal limits.
This bill was recently introduced. Email the authors to let them know what you think about it.
Introduced By
Assembly Member McKinnor's pension reform legislation would align California's public employee retirement compensation limits with federal standards starting January 1, 2026. The measure modifies how the Public Employees' Retirement System (PERS) calculates pensionable compensation caps for defined benefit plans, transitioning from current percentage-based limits to match federal qualified trust limitations that adjust annually.
The bill maintains existing provisions that set compensation limits at 100% of the federal contribution base for employees in the federal system and 120% for those outside it. However, beginning in 2026, retirement systems must adjust these caps annually according to defined benefit rates established in federal tax code for qualified trusts. The legislation preserves public employers' ability to offer defined contribution plans for compensation above these limits, provided such plans comply with federal requirements and employer contributions do not exceed rates used to fund defined benefits.
These changes would increase contributions to the continuously appropriated Public Employees' Retirement Fund. The bill retains current consumer price index adjustment mechanisms and the Legislature's authority to modify requirements, while protecting previously accrued benefits from reduction. Public employers remain prohibited from offering defined benefits exceeding the compensation limits, and employees have no vested right to continued employer contributions for defined contribution plans above the thresholds.
Latest Voting History
Tom LackeyR Assembly Member | Committee Member | Not Contacted | |
Tasha Boerner HorvathD Assembly Member | Committee Member | Not Contacted | |
Tina McKinnorD Assembly Member | Bill Author | Not Contacted | |
Juan AlanisR Assembly Member | Committee Member | Not Contacted | |
Stephanie NguyenD Assembly Member | Committee Member | Not Contacted |