The Public Employees’ Retirement Law authorizes CalPERS to audit state employers, school employers, school districts, and contracting agencies to determine whether retirement benefits, reportable compensation, enrollment, and reinstatement requirements are being administered correctly. Existing law requires CalPERS to notify an employer before beginning an audit and provide an estimate of the time necessary to complete it.
SB 1038 creates additional transparency and communication requirements. Before initiating an audit, CalPERS must post specified information about the audit on its website and provide written notice identifying the audit’s purpose and scope to the affected employer. The affected employer must provide the audit notice and final audit report to any exclusive representative of employees who may be affected, provide CalPERS and the representative with a list of affected members as specified, and confirm to CalPERS that the required information was provided.
Public employers subject to CalPERS audits should therefore establish procedures for promptly identifying affected bargaining units, transmitting audit notices and final reports to their exclusive representatives, preparing the required affected-member information, and documenting compliance with CalPERS.
SB 1038 amends section 20222.5 of, and adds section 20222.6 to, the Government Code.
