AB 197
Change In Compensation For Retirement Calculations

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AB 197 Frequently Asked Questions

On September 12, 2012, the Governor signed into law Assembly Bill 197, with an effective date of January 1, 2013. The measure changed how county retirement boards were permitted to calculate their current members’ retirement allowances. In November 2012, members and their representative bargaining units filed a lawsuit challenging the validity of the new law. By operation of a court-imposed Stay Order, CCCERA was prohibited from implementing the new law during the course of the litigation.

On May 12, 2014, the Contra Costa County Superior Court entered a Judgment in the litigation and a Writ directing CCCERA to proceed to comply with AB 197, except in one instance (described below). The matter was appealed, and final resolution in the courts could take several years. CCCERA cannot predict the ultimate outcome of this matter in the courts. The Judgment and Writ issued by the Superior Court do not affect members whose effective date of retirement is on or before July 11, 2014. CCCERA is currently ordered to comply with the new law starting with retirements effective on and after July 12, 2014. A request for an additional stay was denied by the Court of Appeals on June 30, 2014.

January 8, 2018 – UPDATE

On January 8, 2018, the Court of Appeals issued a decision which CCCERA is in the process of analyzing. At this time there are no changes in the manner in which CCCERA is currently calculating retirement allowances. Once CCCERA has additional information it will be provided on the CCCERA
website.

July 9, 2014 – UPDATE

Originally published June 12, 2014, Updated June 27, 2014

Frequently Asked Questions and Answers about calculating your retirement allowance under AB 197

July 1, 2014 – UPDATE

Reductions in Retirement Benefits Required Under Assembly Bill 197 Will Go Into Effect On July 12, 2014
Download Update

May 12, 2014 – UPDATE

Lawsuit Concerning the Implementation of Pension Legislation Assembly Bill 197

Today, May 12, 2014, the Superior Court entered a final Judgment in the lawsuit seeking to prevent CCCERA from implementing Assembly Bill 197.  The matter may be appealed.  If the matter is appealed, final resolution in the courts could take several years.  

Here is a summary of the Court’s Judgment and Decision:

  • The Court concluded that CCCERA members whose employer only allows accrued leave cash outs at termination (i.e., no leave cash outs are allowed during employment) are not entitled to have these amounts in their pension calculations.
  • The Court concluded that CCCERA members are not entitled to have included in their pension calculations any accrued leave cash out amounts greater than the amount that is both earned and payable to them during employment in their final average salary period. 
  • The Court concluded, however, that in some situations, certain CCCERA members hired before January 1, 2011 will be entitled to have certain accrued leave amounts beyond what was earned and payable to them in their final average salary period counted towards their retirement benefits.  This appears to be a small group of CCCERA members, because the decision mandates that only those who meet the following requirements will be entitled to the limited inclusion of certain cashouts:
    1. Prior to AB 197 the member’s employer allowed, during employment, a cash out of unused leave time in amounts in excess of the amount of leave time earned in the selected final average salary period;
    2. As of December 31, 2012, the employee had accrued and not used one or more types of such leave time in an amount or amounts in excess of that allowed in the final average salary period;
    3. The employee had not used or cashed-out such banked time prior to the commencement of the employee’s final average salary period;
    4. The employee elects during the final average salary period to cash-out some or all of his or her balance of such banked time; and
    5. The amount of banked leave time to be included in ‘final compensation’ shall not exceed the lesser of (1) the amount of leave available on December 31, 2012, or (2) the amount cashed out in the final compensation period.
  • Regarding on call/standby pay, the Court concluded that CCCERA may not impose a blanket exclusion of all “on call” pay under AB 197, but instead, should allow the continued inclusion of this pay in compensation for retirement purpose for “Legacy Members” if the on call time was scheduled, regularly served by and required of all employees in the same grade or class.  The Court noted that pay for time that an employee was “on call” during the final compensation period due to a voluntary assumption of the obligation (such as by ‘swapping’ time) should not be included in the pension calculation.

The Court’s Judgment requires that CCCERA continue to follow its pre-AB 197 policy on retirement calculations for 60 days from today. CCCERA is therefore to continue to follow its pre-AB 197 policy for retirements effective through (and including) Friday, July 11, 2014. CCCERA is ordered to begin implementing AB 197 for retirements on or after July 12, 2014. 

CCCERA cannot predict the ultimate outcome of this litigation should the matter be appealed.  Members who are considering retirement should be aware of the lawsuit, the Judgment and Decision entered today, the possibility of an appeal and the possible impact on their retirement benefits.  If you are considering retirement, please contact the Retirement Office at (925) 521-3960.

March 27, 2014 – UPDATE

Update Pending Lawsuit Concerning the Implementation of Pension Legislation Assembly Bill 197

The lawsuit seeking to stop the implementation of Assembly Bill 197 is still pending.  The Court has issued a decision following multiple hearings.  Nothing is final until the Court issues a final judgment and any writs directing CCCERA to take specific actions.  The next hearing has been set for April 25, 2014.  CCCERA expects that sometime after the April 25th hearing, the writs and judgment will be finalized and entered by the court.  After final judgment is entered, the matter may be appealed.  If the matter is appealed, final resolution in the courts could take years_test.

Summary of the Court’s Decision:

  • The Court concluded that CCCERA members whose employer only allows accrued leave cash outs at termination (i.e., no leave cash outs are allowed during employment) are not entitled to the continued inclusion of these amounts in their pension calculations.
  • The Court concluded that CCCERA members are not entitled to the continued inclusion of accrued leave cash out amounts beyond the amount that is both earned and payable to them during their final average salary period. 
  • The Court concluded, however, that in some situations, certain CCCERA members will be entitled to have certain accrued leave amounts beyond what was earned and payable to them in their final average salary period counted towards their retirement benefits.  This appears to be a small group of CCCERA members, because the decision mandates that only those who meet the following requirements are entitled to the limited inclusion of certain cashouts:
    1. Prior to AB 197 the member’s employer allowed, during employment, a cash out of unused leave time in amounts in excess of the amount of leave time earned in the selected final average salary period;
    2. As of December 31, 2012, the employee had accrued and not used one or more types of such leave time in an amount or amounts in excess of that allowed in the final average salary period;
    3. The employee had not used or cashed-out such banked time prior to the commencement of the employee’s final average salary period;
    4. The employee elects during the final average salary period to cash-out some or all of his or her balance of such banked time; and
    5. The amount of banked leave time to be included in ‘final compensation’ shall not exceed the lesser of (1) the amount of leave available on December 31, 2012, or (2) the amount cashed out in the final compensation period.
  • Regarding on call/standby pay, the Court concluded that CCCERA may not impose a blanket exclusion of all “on call” pay under AB 197, but instead, should allow the continued inclusion of this pay in compensation for retirement purpose for “classic” members if the on call time was regularly served by and required of all employees in the same grade or class.  The Court noted that pay for time that an employee was “on call” during the final compensation period due to a voluntary assumption of the obligation (such as by ‘swapping’ time) should not be included in the pension calculation.

A “Stay Order” is still in effect, requiring that CCCERA continue to follow its pre-AB 197 policy on retirement calculations, and presently is in effect until 60 days after the court enters judgment.  CCCERA will continue to follow its pre-AB 197 policy in accordance with the Stay Order. 

CCCERA cannot predict the ultimate outcome of this litigation.  Members who plan to retire should be aware of the lawsuit and the possibility that their retirement calculations could change depending on the final outcome of the lawsuit.  Specifically, with respect to all items of compensation at issue, including leave cash outs, termination pay and on-call/standby pay, one possible scenario is that the final outcome might require the exclusion of such pay (or a portion thereof) from compensation for retirement purposes. 

March 10, 2014 – UPDATE

Update Pending Lawsuit Concerning the Implementation of Pension Legislation Assembly Bill 197

The lawsuit seeking to stop the implementation of Assembly Bill 197 is still pending.  As of this date, the court has not issued any final decisions.  However, the court has issued a tentative (not final) decision which the court had modified several times following multiple hearings.  Thus far, the court has expressed the following views:

  • As to payments for accrued unused leave that are made only due to the termination of employment (“termination pay”), the court has tentatively concluded that such payments should not have been included in compensation for retirement purposes even before AB 197.  The court found that no CCCERA members are entitled to the inclusion of such payments in the compensation for retirement purposes.
  • As to payment for accrued unused leave that are allowed to be made during employment (for example, “vacation buy backs”), the court has tentatively concluded that such payments should have been limited to what was “earned and payable” during the final average salary (FAS) period even before AB 197.  The court found under principles of fairness, however, that certain members should continue to be entitled to the inclusion of some payments beyond what was “earned and payable” during the FAS period, so long as several conditions are met.  Most significantly, the court concluded that only those members whose employer allowed, prior to AB 197, cash outs of unused leave time in amounts in excess of the amount of leave time earned in the final compensation period may be entitled to have the excess payments included in compensation for retirement purposes.  So, for example, if an employee earned 160 hours of leave during a single 12-month period, but the employer allowed the employee to sell more than 160 hours during the same period, then the Court may permit CCCERA to count the excess amount in his or her retirement calculation if the excess had been “banked” on or before December 31, 2012.
  • As to pay received for additional services provided after normal working hours (for example, on-call/standby pay), the court has tentatively concluded that it will not issue a general order requiring that such payments be included in compensation for retirement purposes for all classic (pre-PEPRA) members.  The court indicated, however, that it may fashion a limited order depending on particular circumstances where it appears the member may be entitled to the inclusion of on-call pay.

The court’s conclusions listed above are still tentative (not final).  Further rulings clarifying the court’s tentative decision are expected over the next several months.  If the case is appealed, final resolution in the courts could take a few years.

A “Stay Order” is still in effect, requiring that CCCERA continue to follow its pre-AB 197 policy on retirement calculations, and presently is in effect until 60 days after the court enters judgment.  The Court has said it will not shorten that 60-day grace period.  CCCERA will continue to follow its pre-AB 197 policy in accordance with the Stay Order. 

CCCERA cannot predict the outcome of this litigation.  Members who plan to retire should be aware of the lawsuit and the possibility that their retirement calculations may change depending on the final outcome of the lawsuit.  Specifically, with respect to all items of compensation at issue, including termination pay and on-call/standby pay, one possible scenario is that the final outcome might require the exclusion of such pay (or a portion thereof) from compensation for retirement purposes. 

January 27, 2014 – UPDATE

An Important Update to All CCCERA Members Regarding the Pending Lawsuit Concerning the Implementation of Pension Legislation – Assembly Bill 197 - 

As you may recall from CCCERA’s previous updates, a lawsuit was filed in November of 2012 on behalf of all active and deferred members of CCCERA to stop the implementation of Assembly Bill 197. AB 197 would prevent CCCERA from following its current policy of including certain accrued leave payouts (sometimes referred to as “terminal pay”) and pay received for services provided after normal working hours (for example, on-call/standby pay) in the calculation of members’ retirement allowances. The lawsuit is currently still pending, and a “Stay Order” is still in effect. The “Stay Order” requires that CCCERA continue to follow its pre-AB 197 policy on retirement calculations, and is in effect until 60 days after the court enters judgment. CCCERA will continue to follow its pre-AB 197 policy in accordance with the Stay Order.

In the lawsuit, the State Attorney General has argued, and the Court has agreed in a “Tentative Decision” issued on December 17, 2013, that these pay items should not have been included in retirement calculations. However, the Court concluded that under principles of equity and fairness certain members who relied upon representations made to them over many years will be allowed some amount of accumulated leave earned from periods outside their final compensation period to be included in the calculation of their retirement allowances. Further rulings clarifying the Court’s tentative decision are expected over the next several months. Final resolution in the courts could take several years.

CCCERA cannot predict the outcome of this litigation. Members who plan to retire should be aware of the lawsuit and the possibility that their retirement calculations may change depending on the final outcome of the lawsuit. Specifically, with respect to all items of compensation at issue, including terminal pay and on-call/standby pay, one possible scenario is that the final outcome might require the exclusion of such pay (or a portion thereof) from compensation for retirement purposes.

We urge you to consider your retirement benefit options carefully. CCCERA counselors are available for questions; however, our counselors cannot offer financial or tax assistance. Please consult with a personal financial and/or tax advisor to review your individual situation as impacted by this litigation.

December 27, 2013 – UPDATE

AB 197 Writ of Mandate Proceeding - 

The Court issued a 43-page “Tentative Decision” on December 17, 2013. The Court concluded that the inclusion of certain leave payouts in compensation for retirement purpose was never authorized by law, and that therefore, the petitioners’(employees’) claims that they have a “vested, contractual right” not to have AB 197 apply to their retirement allowances fail. However, the Court concluded that under principles of equity and fairness certain members who understandably relied upon representations made to them over many years will be allowed some amount of accumulated leave earned from periods outside their final compensation period to be included in the calculation of their retirement allowances, as permitted by CCCERA’s pre-AB 197 policy. This is addressed on page 36 of the tentative ruling:

It is the view of the Court, however, that ‘injury’ applies only to those persons who did, prior to the enactment of AB 197, accumulate vacation beyond the amount that when cashed out will be in excess of the amount that, using a FIFO [first in first out] calculation, will still be allowable as ‘compensation earnable’. Reliance by other persons is far too speculative to qualify as ‘injury’ under the estoppel doctrine.

The correct interpretation of this language is not readily apparent and the parties will be seeking clarification in later court proceedings.

Regarding “on call” and other pay items for services rendered outside of normal working hours, the Court determined that the petitioners had not met their burden to establish that they had a right to these inclusions, and that they also did not establish that the retirement boards violated petitioners’ constitutional rights to the inclusion of these items in compensation earnable. The court is therefore inclined to deny the petitioners’ claims in this regard.

Regarding AB 197’s discretionary exclusions of compensation paid to enhance a member’s benefit, the Court determined that there is insufficient information available to the Court to decide whether any potential exclusions would cause an injury to any retiring member. The court is therefore inclined to deny the petitioners’ claims in this regard.

Next: A hearing is set for Tuesday, February 11, 2014, by which date the parties have been instructed to file written briefs setting forth their objections and/or suggestions for modification of the Court’s Tentative Decision.

Important Note: The “Stay Order” preventing CCCERA from implementing the changes in AB 197 continues to be in effect. Honoring that order, CCCERA will continue to implement its pre-AB 197 policies until further order of the Court.

November 8, 2013 - UPDATE

California Public Pension Reform Legislation – Update Regarding the AB 197 Lawsuit

The Court issued a Preliminary Opinion today regarding the primary Phase One question posed in this litigation: Were the accrued leave cash-out practices of the retirement boards authorized by the law defining “compensation earnable” before the passage of AB 197? 

The 20-page Preliminary Opinion concludes that the answer to the question is “no,” the law did not give retirement boards the discretion to include any amounts in “compensation earnable” that were not both earned and payable during the final compensation period.  The value of time earned in periods outside of the final compensation period, whenever paid in cash, could not properly have been included in pensionable compensation.

The Preliminary Opinion states that it does not have any binding effect at this stage.  It states: “The Court considers this to be a preliminary determination…It is not the intention of the Court that this interim ruling shall have a binding effect upon any employee, retiree, retirement board, or government entity funding retirement funds.”

Important note: The Stay Order continues to be in effect and none of the exclusions required in AB 197 will be implemented by CCCERA while the stay order is in place. 

Upcoming court dates remain the same, with a case management conference scheduled for November 19, 2013 and a hearing on the vesting issues set for December 10, 2013.

October 31, 2013 – UPDATE

AB 197 Lawsuit Regarding the Inclusion in Compensation for Retirement Purposes Leave Cash Outs (“Terminal Pay”), Standby Pay and On-Call Pay

The October 31, 2013 hearing did not address the second issue in “Phase I,” which concerns the following:

If the retirement systems were not so authorized as to any of the included items, whether it is possible for some or all members to have a vested right to such inclusion.

The Court has not issued any rulings on these issues. The Court indicated its intent to rule on the first issue of Phase I by November 12, 2013. The Court set a case management hearing for November 19, 2013, at which a briefing schedule will be set for the remaining Phase I issues. The Phase I hearing has been set for December 10, 2013.

Important Note: The “stay” order entered in this matter requires CCCERA to hold off on implementing AB 197 and instead, continue to follow its pre-AB 197 policy on compensation calculations until after this matter is heard and decided. CCCERA will continue to refrain from implementing AB 197’s exclusions of pay items while the “stay” order is in place. The “stay” order is in effect until 60 days after the court enters judgment in this case and determines whether or how AB 197 should be implemented. The “stay” order is subject to change by the Court. 

CCCERA will post new information on this website as soon as it is available.

July 18, 2013 – UPDATE

AB 197 Lawsuit Regarding the Inclusion in Compensation for Retirement Purposes Leave Cash Outs (“Terminal Pay”), Standby Pay, and On-Call Pay

The AB 197 lawsuit originally filed by the Deputy Sheriff’s Association (DSA) and the International Association of Firefighters (IAFF 1230) in Contra Costa County Superior Court is pending, and has been consolidated with similar lawsuits from other counties. On July 9, 2013, the Court set a briefing schedule for the “first phase” issues raised in the consolidated AB 197 lawsuits. The “first phase” issues are:

  1. Whether or not the retirement boards were required or authorized by law, before AB 197 was enacted, to include certain amounts of leave cash outs (“terminal pay”), standby pay, and on-call pay in calculating retirement benefits; and
  2. If the retirement systems were not so authorized as to any of the included items, whether it is possible for some or all members to have a vested right to such inclusion.

The hearing on the “first phase” issues has been set for October 31, 2013 at 9:00 a.m. in Department 6 of the Contra Costa County Superior Court.

Important note: The “stay” order entered in this matter requires CCCERA to hold off on implementing AB 197 and instead, continue to follow its pre-AB 197 policy on compensation calculations until after this matter is heard and decided. CCCERA will continue to refrain from implementing AB 197’s exclusions of pay items while the “stay” order is in place. The “stay” order is in effect until 60 days after the court enters judgment in this case and determines whether or how AB 197 should be implemented. The “stay” order is subject to change by the Court.

CCCERA will post new information on this website as soon as it is available.

June 14, 2013 – UPDATE

AB 197 Lawsuit Regarding the Inclusion in Compensation for Retirement Purposes Leave Cash Outs (“Terminal Pay”), Standby Pay, and On-Call Pay

On June 13, 2013, the Contra Costa Superior Court ordered that three other AB 197 lawsuits pending in Alameda, Marin, and Merced County courts be consolidated for trial with the AB 197 lawsuit pending in Contra Costa County Superior Court. The lawsuits involve whether or not it is lawful for county retirement systems to include certain amounts of leave cash outs (“terminal pay”), standby pay, and on-call pay in the compensation on which retirement benefits are calculated.

The Contra Costa County lawsuit originally filed by the Deputy Sheriff’s Association (DSA) and the International Association of Firefighters (IAFF 1230) is pending. The “stay” order entered in this matter requires that CCCERA refrain from implementing AB 197, and requires that CCCERA continue to follow its policy on compensation calculations until after this matter is heard and decided. The current court order to “stay” implementation is in effect until 60 days after the court enters judgment in this case and determines whether or how AB 197 should be implemented. The order is subject to change by the Court.

Important note: CCCERA will refrain from implementing the exclusions of pay items required by AB 197 while the stay order is in place. The parties in the pending lawsuit have raised not only the issue of these legislative exclusions, but also, whether the inclusion of these pay items prior to the legislation was proper. CCCERA cannot predict the final outcome of the lawsuit.

CCCERA will post new information on this website as soon as it is available.

April 18, 2013 – UPDATE

AB197 Implementation: Standby/On-Call Pay and Call Back Pay are Excluded from Compensation for Retirement Purposes

The lawsuit filed by the Deputy Sheriff’s Association (DSA) and the International Association of Firefighters (IAFF 1230) is pending. The “stay” order entered in this matter requires that CCCERA refrain from implementing AB 197, and requires that CCCERA continue to follow its policy on final average salary calculations until after this matter is heard and decided. The current court order to “stay” implementation is in effect until 60 days after the court enters judgment in this case and determines whether or how AB 197 should be implemented. The order is subject to change by the Court.

In the meantime, the CCCERA Board of Retirement has reviewed which elements of compensation beyond certain accrued leave cash outs also would be excluded by implementation of AB 197. The purpose of continuing the review process is in keeping with CCCERA’s goal to keep its membership fully informed of the impact of AB 197 on elements of compensation currently included in retirement calculations.

The Board of Retirement has determined that AB 197 requires the exclusion of payments for additional services rendered outside of normal working hours, for example: standby pay, on-call pay, call-back pay. This is of particular interest to CCCERA members who receive standby pay, on-call pay or call-back pay. These pay items would no longer be pensionable under AB 197, if implemented. 

Important note: none of the exclusions required in AB 197 will be implemented by CCCERA while the stay order is in place. These exclusions have been raised in the pending lawsuit, but CCCERA cannot predict the final outcome of the lawsuit. 

CCCERA will post new information on this website as soon as it is available.

February 14, 2013 – UPDATE

AB 197 Implementation: Standby/On-Call Pay and Other Elements of Compensation

The lawsuit filed by the Deputy Sheriff’s Association (DSA) and the International Association of Firefighters (IAFF 1230) is pending. The stay order entered in this matter requires that CCCERA refrain from implementing AB 197, and requires that CCCERA continue to follow its policy on final average salary calculations until after this matter is heard and decided. In the meantime, the CCCERA Board of Retirement will continue the process of reviewing and determining which elements of compensation would be excluded by implementation of AB 197. This review will focus on elements of compensation beyond accrued leave cash outs. Examples of elements of compensation that will be reviewed include: 

Payments for services rendered outside of normal working hours, for example: standby pay, on-call pay, call-back pay, conversions of in-kind items into cash, for example: use of automobile converted into an auto allowance during the final average salary period, 

Other compensation determined by the Retirement Board to have been paid to enhance the member’s retirement benefits.

November 28, 2012 – UPDATE

2013 Reductions In Benefit Calculations Postponed

On November 28, 2012, the Deputy Sheriff’s Association (DSA) and the International Association of Firefighters (IAFF 1230), filed a lawsuit against CCCERA and the Board of Retirement. The suit was filed in Contra Costa County Superior Court, on behalf of ALL active and deferred members of CCCERA, to stop CCCERA and the Board of Retirement from implementing Assembly Bill 197. With CCCERA’s agreement, the Court issued a stay order in this matter, requiring that CCCERA refrain from implementing AB 197, and requiring that CCCERA continue to follow its policy on final average salary calculations until after this matter is heard and decided. This means that terminal pay will continue to be added into the calculation of final average salary beyond January 1, 2013 except for members who first became members of CCCERA on or after January 1, 2011. The current court order to “stay” implementation is in effect until 60 days after the court enters judgment in this case and determines whether or how AB 197 should be implemented. The order is subject to change by the Court. 

The “stay” order does not impact any other aspects of the pension reform legislation (AB 340). The “stay” order does not impact the new PEPRA tiers for new members. The “stay” order does not impact the new restrictions on reemployment of CCCERA retirees. The “stay” order only maintains CCCERA’s existing treatment of the items included in final average salary for CCCERA’s current (active and deferred) members until further order of the Court. 

Members who planned to retire before December 31, 2012 based on the anticipated loss of terminal pay and other additions to final average salary calculations, may wish to postpone their decision, until an order from the Courts determining whether CCCERA may continue to include those items in final average salary subject to retirement is rendered. Please note that CCCERA cannot predict the outcome of this lawsuit.  

IMPORTANT NOTE: Members may rescind (cancel) their retirement applications at any time before cashing their first retirement check. However, this does not mean that your employer must hold your job position open until you cash your first pension check. If you wish to delay your retirement, check with your employer about plans to recruit for your position. 

October 30, 2012 – UPDATE

CCCERA’s Retirement Board held a Special Board Meeting on October 30, 2012, to discuss implementation of AB 197, the amendments to Government Code Section 31461 of the County Employees’ Retirement Law of 1937. A slide presentation explained the legislative changes to “Compensation Earnable,” “Vacation Pay at Termination,” and “Sick Leave Cash Out at Termination.”
Download Slideshow
After public comment and Trustee discussion, the Retirement Board voted to direct staff to implement changes mandated by the new law as of January 1, 2013, the effective date of the legislation.

A Legal Opinion concerning implementation from CCCERA’s Fiduciary Counsel, Harvey Leiderman, was released as a public document.
Download Legal Opinion

This means: effective January 1, 2013, “terminal pay” will be included in the calculation of Final Average Salary for retirement benefit purposes, but only to the extent it was earned and payable during the Final Average Salary (FAS) year. Amounts exceeding the total that could be “earned and payable” during the FAS period will not be included, whether paid during service or at termination. If you wish to retire and have your unused accruals of vacation, personal holiday, sabbatical and/or holiday compensatory time off (permitted accrual amounts that are part of collectively bargained MOUs for each employee group) included in your Final Average Salary calculation, you must submit your application to retire by December 31, 2012. You may not be in pay status any later than December 30, 2012. NOTE: Sick leave accruals become part of service credit; these accruals will continue to be added to your retirement benefit calculation.

The only group that may have some terminal pay are those members who can currently cash vacation accruals during the year.

October 24, 2012 – UPDATE

CCCERA’s Retirement Board scheduled a SPECIAL BOARD MEETING held on October 30, 2012, to discuss implementation of AB 197, the amendments to Government Code Section 31461 of the County Employees’ Retirement Law of 1937. (This is the law that governs our retirement system.) These amendments were enacted by the California State Legislature, and signed into law by Governor Brown. 

This was an educational session, designed to give our active and deferred members information about the changes that will occur on January 1, 2013, due to the new law. The presentation included a discussion of the “terminal pay” issue. 

Active and deferred CCCERA members and the public were invited to attend the Open Meeting to hear this presentation and discussion on how the new law will affect current members after January 1, 2013.

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