In a Law360 article, LCW Partner Michael Youril examines California’s reconsideration of key provisions of the 2013 Public Employees’ Pension Reform Act, which reduced pension benefits for employees hired after January 1, 2013, to address significant underfunding. A.B. 1383 would modify those reforms for public safety employees by lowering the retirement age to 55, increasing benefit formulas, and expanding pensionable compensation limits, while still stopping short of a full rollback of PEPRA.
Youril explains that although the bill has been scaled back from its original version, it would still increase pension costs and limit employers’ ability to move to lower benefit formulas in the future. He notes that support for the bill is largely based on policy goals such as recruitment, retention, and reduced exposure to workplace hazards, rather than clear empirical data. As a result, A.B. 1383 represents a significant policy shift away from PEPRA’s cost containment measures, with important fiscal and bargaining implications for public employers.
View the full article here: https://www.law360.com/articles/2461606