Public employees’ retirement: membership election.
The introduction of AB 590 significantly alters how certain public employees can transition between retirement systems. By restricting the retention of coverage to those who were employed within 120 days prior to new service, the legislation aims to streamline the enrollment and benefits allocation process for new members. This can help ensure that employees understand their retirement benefits when switching roles within the public education sector, potentially affecting future employment decisions and benefits administration.
Assembly Bill No. 590, approved on July 24, 2017, amends Section 20309 of the Government Code to modify regulations regarding membership elections for public employees in California, specifically within the Public Employees Retirement System (PERS). The bill allows certain members employed by specific educational entities, such as the Board of Governors of the California Community Colleges and the State Department of Education, to retain their coverage options within the PERS. This amendment limits the ability to exclude service from the Defined Benefit Program of the State Teachers Retirement Plan based on employment conditions within a specific timeframe before their new hire date.
General sentiment regarding AB 590 is largely neutral, as it delineates existing provisions rather than introducing entirely new structures. Stakeholders in the educational sector, including school administrators and employee unions, expressed an understanding of the need for clarity in public employees' retirement options. However, there were concerns that the limitations imposed might disadvantage certain individuals who might aspire to switch systems but do not meet the required timeframe.
While the bill was largely passed without significant contention, some discussions highlighted the delicate balance between ensuring suitable retirement options for educators and simplifying the retirement administration process. The 120-day limitation could be viewed as restrictive, particularly for educators with varied career paths within the public sector. Stakeholders were interested in monitoring the implementation of this bill to see how it impacts employee choices and overall satisfaction with retirement options.