Retirement: joint powers authority: Cities of La Verne and Covina.

Senator Rubio's proposal would enable the Cities of La Verne and Covina to maintain existing employee pension benefits when forming a joint powers authority after January 1, 2026. The legislation amends the California Public Employees' Pension Reform Act (PEPRA) to allow current employees transitioning to the new authority to retain their defined benefit plans, provided they transfer within 180 days of its formation.

The bill follows precedent set by similar PEPRA amendments for other municipal partnerships, including joint powers authorities between Brea and Fullerton, as well as among the Belmont Fire Protection District, Estero Municipal Improvement District, and City of San Mateo. While preserving benefits for existing staff, the legislation maintains PEPRA's standardized pension formulas for new hires joining the authority.

The Legislature's findings indicate that a special statute is required to ensure continuous retirement benefits during the transition, as existing general statutes do not adequately address the specific circumstances of the La Verne-Covina partnership. The measure requires a majority vote for passage and includes no new appropriations.