California Assembly Bill AB1293

California 2021-2022 Regular Session

• Introduced: 2/19/21
• Refer: 3/18/21
• Report Pass: 3/18/21
• Refer: 3/22/21
• Report Pass: 4/7/21
• Refer: 4/8/21
• Report Pass: 4/13/21
• Refer: 4/14/21
• Report Pass: 4/19/21
• Refer: 4/19/21
• Report Pass: 5/5/21
• Engrossed: 5/13/21
• Refer: 5/13/21
• Refer: 5/27/21
• Report Pass: 7/6/21
• Refer: 7/6/21
• Report Pass: 7/13/21
• Refer: 7/13/21
• Enrolled: 9/1/21
• Chaptered: 9/24/21
• Passed: 9/24/21

Caption

Judges’ Retirement System II: federal law limits: adjustments.

Impact

The bill establishes provisions under which the amount payable to members of the Judges Retirement System and the Legislators Retirement System will be capped according to federal limits set forth under IRS regulations. Additionally, it includes mandates for cost-of-living adjustments for retirement allowances provided that specified conditions are met. By limiting the benefits in accordance with federal standards, AB1293 aims to sustain the financial health of state retirement systems while ensuring compliance with federal laws.

Summary

Assembly Bill 1293 introduces amendments to the Government Code concerning the Judges Retirement System and the Legislators Retirement System in California. It specifically seeks to incorporate federal laws concerning annual limitations on defined benefit plans. The intent of the bill is to ensure that retirement benefits for judges and members of the legislature do not exceed certain federal thresholds, thereby aligning state regulations with federal stipulations. This alignment might help manage fiscal responsibilities related to public retirement systems.

Sentiment

The sentiment surrounding AB1293 seems to be pragmatic. Proponents argue that by adhering to federal guidelines, the bill protects the integrity and sustainability of retirement funds within California. There appears to be general support for the bill, especially among legislators, as evidenced by the unanimous voting record. This shows a collective agreement on the importance of financial prudence in managing public pensions, which typically face scrutiny in budget discussions.

Contention

However, there are discussions on the potential implications of such restrictions. Some argue that tying state retirement systems strictly to federal limits may diminish the flexibility of state lawmakers to address specific needs of retired judges and legislators as California’s cost of living may differ from national averages. The bill does not alter how benefits are calculated but introduces a framework that could limit future enhancements or adaptations to local fiscal needs.