The County Employees Retirement Law of 1937 (CERL) permits counties to establish retirement systems for county employees and permits retirement boards to provide specified cost-of-living adjustments (COLA) to covered retirees under such retirement systems. Existing special legislation applicable to Sonoma County and Imperial County governs prefunded COLAs.
AB 1601 permits the Sonoma County Board of Supervisors, annually, to authorize a COLA for specified retirement, optional death, and annual death allowances. Before authorization of a COLA, the County Board of Supervisors must work with the retirement board to identify the eligible recipients, determine the amount of the adjustment, and identify the funding source for the COLA. AB 1601 therefore provides Sonoma County an additional statutory mechanism for providing COLAs rather than imposing an automatic increase in retirement benefits for retirees covered by their retirement system.
AB 1601 adds Government Code Section 31874.7.
