Employee Relations update 6/6/2014
CalPERS’ Update: Comment Period on Pensionable Compensation Draft Regulation
On September 12, 2012, when Governor Brown signed into law AB 340, reporting to the California Public Employees’ Retirement System (CalPERS) for new members changed. The Public Employees Pension Reform Act (PEPRA) now defines “Pensionable Compensation” for new members (generally those brought into membership after January 1, 2013) and limits payments and compensation that may be used to calculate a defined benefit for “new” members. To that end, in December 2012, CalPERS issued Circular Letter 200-062-12, listing the types of compensation that many be reportable as “pensionable compensation” based on our initial interpretations and understanding of PEPRA.
CalPERS has developed a draft regulation to address pensionable compensation for these new members. The regulation has been submitted to the Office of Administrative Law for publication in the California Regulatory Notice Register and thus begins the 45-day comment period. The comment period is currently set for May 30 – July 14.
CalPERS is encouraging all stakeholders to provide feedback, either to affirm draft language or to provide comments on differing interpretations.
The link to the draft regulation:
The email address to submit feedback: