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.
This bill would authorize the City of La Verne and the City of Covina, if on or after January 1, 2026, they form a joint powers authority, to provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of a common power. The bill would specify that these provisions would apply to an employee who is not a new member and subsequently is employed by the joint powers authority within 180 days of the city providing for the exercise of a common power, as specified.
This bill would make legislative findings and declarations as to the necessity of a special statute for the City of La Verne and the City of Covina.

Statutes affected:
SB 443: 7522.02 GOV
02/18/25 - Introduced: 7522.02 GOV