Public employees’ retirement.

The California Senate Committee on Labor, Public Employment and Retirement proposes significant changes to state and local public retirement systems through legislation that grants expanded authority to retirement boards and modifies key administrative processes. The bill revises how retirement systems determine employer status, calculate benefits, and handle financial transfers.

The Teachers' Retirement Board would receive final authority to determine which entities qualify as employers under the State Teachers' Retirement System and related health care benefits programs. The board would also make definitive decisions about system membership eligibility. For part-time employees participating in workload reduction programs, the bill changes how agreements are terminated - shifting from an hours-worked standard to one based on earning at least half of the annualized pay rate.

The legislation adjusts the timing of fund transfers between state accounts, specifying that when scheduled transfer dates fall on weekends or holidays, the transfers occur on the next business day. This applies to movements between the General Fund and various retirement-related accounts, including the Supplemental Benefit Maintenance Account and Teachers' Retirement Fund.

For public employees who belong to multiple retirement systems, the bill modifies how compensation is calculated when determining retirement benefits. The highest annual average compensation from one system would be considered pensionable compensation under the California Public Employees' Pension Reform Act when computing benefits in another system, provided the employee retires concurrently from both.

The measure also revises reporting requirements and penalties for employers who hire retired public employees. Rather than facing fees for failing to report within 30 days, employers would need to submit information in a system-specified format and timeline. The $200 monthly penalty would apply until proper reporting occurs.