Public employees’ retirement benefits.

Assembly Member McKinnor's legislation proposes substantial changes to California's public safety employee retirement system, introducing new benefit formulas and expanding collective bargaining options for retirement benefits. The bill adjusts pensionable compensation limits and retirement age requirements while establishing mechanisms for negotiating contribution responsibilities between employers and employees.

Starting January 1, 2026, the legislation modifies retirement formulas for safety members, offering three options that provide benefits at age 55 rather than the current age 57 requirement. These formulas range from 2.5% to 3% of final compensation at retirement, multiplied by years of service. For employees hired between 2013 and 2025, employers must transition to the closest corresponding formula under the new system for service performed after January 1, 2026.

The bill aligns pensionable compensation limits with federal defined benefit standards and permits annual adjustments based on the Consumer Price Index. Through collective bargaining, employers and employees may negotiate agreements where employers contribute to employee retirement costs - a departure from current requirements that employees pay at least 50% of normal costs. These agreements must be established through formal memoranda of understanding.

Public employers and recognized employee organizations gain authority to negotiate prospective increases to retirement benefit formulas, provided they remain within prescribed limits. The legislation maintains protections against unilateral changes by employers and ensures equal treatment between represented and non-represented employees in the same classification. Previously accrued benefits remain protected, with changes applying only to future service.