TO: Board of Supervisors
FROM: Ryan J. Alsop, Chief Executive Officer
REPORT BY: Andrew M. Mize, Senior Legislative & Policy Advocate
SUBJECT: Assembly Bill 1383
RECOMMENDATION
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Approve transmission of an "Oppose Unless Amended" position to the passage of Assembly Bill 1383 based upon the recommendation of the County's Pension, OPEB, and Section 115 Trust Advisory Committee.
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BACKGROUND
CalPERS
The Public Employees' Retirement Law governs defined retirement benefits, pension costs, and employer contributions for public employees and establishes the Public Employees' Retirement System (PERS) to provide a defined benefit based on final compensation, credited service, and retirement age. The California Public Employees' Pension Reform Act (PEPRA) made changes to such pension plans and took effect on January 1, 2013.
AB 1383
Assemblymember Tina McKinnor (D-Inglewood) this year authored Assembly Bill (AB) 1383, which makes several changes to PEPRA.
In current form (reflecting amendments from July 1, 2026), AB 1383 does three things:
1. Lowers the retirement age for firefighters and police officers from 57 to 55;
2. Introduces new pension compensation formulas (known as the McKinnor formulas); and
3. Increases the maximum compensation cap for both non-safety and safety members, with the net effect of raising pensions for those employees who are above existing PEPRA caps.
The new formulas provide for either 2%, 2.5%, 2.7%, or an optional 3% of maximum compensation at age 55. The bill raises the maximum compensation cap, with the effect of increasing pension compensation for employees whose compensation is above existing PEPRA caps. Specifically, the bill resets the existing PEPRA bases to new McKinnor PEPRA bases. The CalPERS pensionable compensation limit for PEPRA members for the 2025 calendar year is currently $155,081 for social security participants and $186,096 for non-social security participants. In contrast, the limit for classic members i...
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