Pocket Guide to the Public Employees’ Pension Reform Act (4th ed., 2019)

The far-reaching Public Employees’ Pension Reform Act radically transformed the legal landscape regarding public employee pensions.

CPER’s fourth edition of our PEPRA guide covers the latest developments since the Act took effect in 2013.

The guide summarizes the Act and all amendments to date, clarifying terms and provisions; explains how PEPRA has changed California public employee retirement plans; and covers recent court decisions and new guidance memoranda from some of the public retirement systems. The PEPRA guide also includes the statutory language of the Act, pertinent Government Code and Education Code sections, a glossary of terms, and an index.

CPER’s PEPRA guide is a must for all those who advise public employees and employers.

The guide explains these important areas:

• New members and classic members
• New retirement formulas for defined contribution plans
• Employer and member contributions toward retirement
• Health plan vesting
• Industrial disability retirement
• Pensionable compensation
• Creditable compensation
• Retroactive benefit enhancement
• Compensation earnable
• Forfeiture for felony conviction
• Purchase of service credit
• And more

Table of Contents

1. Introduction (Page 1)
2. PEPRA Coverage (Page 3)
   1. Retirement Systems That Are Included (Page 3)
   2. Retirement Systems That Are Excluded (Page 3)
3. Two Main Categories of Employees: ‘New Members’ and ‘Classic Members’ (Page 5)
   1. “New Members” (Page 5)
   2. “Classic Members” (Page 8)
4. Retirement Formula: ‘New Members’/CalSTRS ‘2% at 62 Members’ Only (Page 11)
   1. CalSTRS (Page 12)
   2. State Employees (Page 13)
      1. Miscellaneous and industrial (Page 13)
      2. Safety (Page 14)
   3. CalPERS-Participating Employers, Independent Retirement Systems, and ’37 Act Systems (Page 14)
      1. Non-safety (Page 14)
      2. Safety (Page 14)
   4. Judges’ Retirement Systems I and II (Page 15)
   5. Defined Benefit Plans That Are Lower Cost Than PEPRA Plans, and Defined Contribution Plans (Page 16)
5. Employee Contributions Toward Retirement (Page 17)
   1. CalPERS-Participating Local Agencies and School Employers (Page 17)
      1. “New members” (Page 17)
      2. “Classic members” (Page 20)
   2. State Employees (Page 22)
      1. “New members” (Page 22)
      2. “Classic members” (Page 22)
      3. California State University (Page 22)
      4. Non-California State University employees (Page 23)
   3. CalSTRS (Page 25)
      1. “2% at 62 members” (Page 25)
      2. “2% at 60 members” (Page 26)
   4. Independent Retirement Systems (Page 28)
      1. “New members” (Page 28)
      2. “Classic members” (Page 28)
   5. ’37 Act Systems (Page 28)
      1. “New members” (Page 28)
      2. “Classic members” (Page 28)
      3. Generally applicable provision (Page 30)
6. Pensionable Compensation: ‘New Members’ Only (Page 32)
7. Creditable Compensation (Page 36)
   1. CalSTRS “2% at 62 Members” (Page 36)
   2. CalSTRS “2% at 60 Members” (Page 39)
8. Caps on Pensionable Compensation: ‘New Members’/CalSTRS ‘2% at 62 Members’ Only (Page 40)
9. 36-Month Final Compensation Period: ‘New Members’/CalSTRS ‘2% at 62 Members’ Only (Page 43)
10. Compensation Earnable: ‘Classic Members’ of ’37 Act Systems Only (Page 45)
11. Ban on Purchase of ‘Airtime’: Applies to All (Page 49)
12. No More ‘Pension Holidays’: Applies to All (Page 51)
13. “Sit Out” Period Before Post-Retirement Employment (Page 52)
14. Forfeiture of Pension Benefits for Certain Felony Convictions: Applies to All (Page 57)
15. Retiree Health Plan Vesting: Likely ‘New Members’/CalSTRS ‘2% at 62 Members’ Only (Page 59)
16. Industrial Disability Benefits: Applies to All CalPERS Safety Members (Page 61)
17. Retroactive Benefit Enhancement: Applies to All (Page 62)
18. Legislative Retirement System (LRS): ‘New Members’ Only (Page 62)
19. Threat to Transit District Funding (Page 65)
20. Statutes (Page 69)
    1. The California Public Employees Pension Reform Act of 2013 (Page 69)
    2. Other Pertinent Government Code Sections (Page 105)
    3. Pertinent Education Code Sections (Page 125)
21. Glossary (Page 141)
22. Table of Cases (Page 144)
23. Index of Terms (Page 146)