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Assembly Bill 536 (Barnes-1972)

Chapter 1125, Statutes of 1972

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An Enrolled Bill Memorandum to the Governor describes the bill in its final form, stating: “AB 536 provides for removal of the upper limit of 75% of final compensation under the County Employees’ Retirement Law.” (See Exhibit #7, document PE-2)

The analysis prepared by the Assembly Committee on Retirement provides the following background:

. . . The miscellaneous retirement formulas adopted by the 20 counties participating under the provisions of the County Employees Retirement Law of 1937 provide that a retirement allowance paid an individual can not exceed 75% of the employees’ final compensation. AB 536 would eliminate this restriction and would permit the employee to receive the allowance determined by the retirement formula.

. . .

In addition, the retirement formulas provide than an employee shall cease to contribute toward his retirement upon reaching 30 years of service. AB 536 would also eliminate this provision hereby requiring the employee to continue making contributions until he reaches retirement.
(See Exhibit #3)

The sponsor of this measure, the State Association of County Retirement System Administrators, explained in a letter to Assembly member Barnes its rationale for introducing this bill:

. . . to bring the employee contribution and benefits provision of the County Employees Retirement Law into conformity with those of the Public Employees Retirement System.
(See Exhibit #5, document SP-1)

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