SB 443: Retirement: joint powers authorities.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

The California Public Employees’ Pension Reform Act of 2013 (PEPRA) requires a public retirement system, as defined, to modify its plan or plans to comply with the act and, among other provisions, establishes new retirement formulas that may not be exceeded by a public employer offering a defined benefit pension plan for employees first hired on or after January 1, 2013. Existing law, the Joint Exercise of Powers Act, generally authorizes 2 or more public agencies, by agreement, to jointly exercise any common power, which may include hiring employees and establishing retirement systems.

Existing law authorizes a joint powers authority formed by the Cities of Brea and Fullerton, and a joint powers authority formed by the Belmont Fire Protection District, the Estero Municipal Improvement District, and the City of San Mateo, on or after January 1, 2013, to provide their employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of a common power, to which the employee is associated, by the joint powers authority to any employee of specified cities and districts who is not a new member and subsequently is employed by the joint powers authority within 180 days of the city or agency providing for the exercise of a common power, to which the employee was associated, by the joint powers authority.

This bill would authorize the Pajaro Regional Flood Management Agency, a joint powers authority, to provide a defined benefit plan or formula to an employee of a member agency of the joint powers authority or of another public agency, as defined, who is not a new member and who is subsequently employed by the joint powers authority within 180 days of the effective date of the retirement plan contract amendment. The bill would authorize the Pajaro Regional Flood Management Agency, on or before April 1, 2026, to select a defined benefit plan or formula offered by one of its member agencies prior to the exercise of a common power which the member agency offered to its employees on December 31, 2012, and designate that formula for its employees, as described above. The bill would provide that it would not exempt a new employee or a new member from the requirements of PEPRA.

Existing law also authorizes a joint powers authority to offer defined benefit plans or formulas that are not PEPRA plans or formulas, provided that the plans or formulas were those the employees received prior to the creation of the authority, the employees are not new members under PEPRA, and they are employed by the authority within 180 days, as specified.

This bill would authorize a joint powers authority, after obtaining approval from a retirement system, to offer those defined benefit plans or formulas to a member agency that is a nonfounding member of the joint powers authority, for employees who are not new members under PEPRA and are employed by the joint powers authority within 180 days of the agency becoming a member agency.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Pajaro Regional Flood Management Agency.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. October 13, 2025Chaptered by Secretary of State. Chapter 756, Statutes of 2025.
2. October 13, 2025Approved by the Governor.
3. September 9, 2025Enrolled and presented to the Governor at 2 p.m.
4. September 4, 2025Assembly amendments concurred in. (Ayes 39. Noes 0. Page 2511.) Ordered to engrossing and enrolling.
5. September 3, 2025In Senate. Concurrence in Assembly amendments pending.
6. September 2, 2025Read third time. Passed. (Ayes 76. Noes 1. Page 2815.) Ordered to the Senate.
7. August 28, 2025Ordered to third reading.
8. August 28, 2025Read third time and amended.
9. July 3, 2025Read second time. Ordered to third reading.
10. July 2, 2025From committee: Do pass. (Ayes 14. Noes 0.) (July 2).
11. June 25, 2025From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (June 25). Re-referred to Com. on APPR.
12. June 23, 2025From committee with author's amendments. Read second time and amended. Re-referred to Com. on P. E. & R.