Compromise JPA Pension Liability Bill Ready for Governor's Signature
As we reported in our May 31, 2018 Alert, the California Legislature has been considering legislation to prevent joint powers authority (JPA) member agencies from contracting out of liability for the JPA's pension obligations.
Despite significant Assembly amendments we reported in May, AB 1912 still faced stiff opposition from a coalition of public agencies and public agency associations over retroactivity of its apportionment scheme and prospective joint several liability for members of future CalPERS-contracting JPAs.
But AB 1912's sponsor, Assemblyman Freddie Rodriguez (D-Pomona), reached a compromise with opposition groups to secure the bill's passage by both houses (the Senate on August 30 and the Assembly on August 31) after a series of Senate amendments (June 20 and July 3, August 17 and August 24).
Together, those amendments:
Members of JPAs that participate in a retirement system should consider reviewing their JPA agreements now to determine how, in light of the recent amendments, this legislation could affect the allocation of pension liabilities under those agreements once it becomes law. For questions about this legislation or the recent amendments to it, please contact the Hanson Bridgett Employee Benefits Group.
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