Agenda Item Wording:
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Letter of opposition to Assembly Bill 1383 (McKinnor) - Approve a letter of opposition to Assembly Bill 1383 (McKinnor) as amended January 22, 2026, which makes several significant changes to public employees' retirement benefits and would lead to increased pension liability for public agencies.
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Agenda Date: 4/6/2026
Prepared by:
John Lollis, Assistant City Manager, John.Lollis@visalia.gov, (559)713-4323
Department Recommendation:
Staff recommends that the City Council authorize the Mayor to sign a Letter of Opposition to Assembly Bill 1383 (McKinnor) as amended January 22, 2026.
Summary:
Authorize the Mayor to sign a letter of opposition to Assembly Bill (AB) 1383 (McKinnor) as amended January 22, 2026, which makes several significant changes to public employees' retirement benefits and would lead to increased pension liability for public agencies.
Background Discussion:
The Public Employees' Pension Reform Act (PEPRA) was passed in 2012, and most of its provisions went into effect January 1, 2013. PEPRA was designed to address a wide range of issues involving public employee pensions and was a major step in helping public agencies better manage future pension costs and prevent the California Public Employees' Retirement System (CalPERS) from not meeting its pension obligations to retirees or becoming insolvent. AB 1383 would undo many of the reforms established by PEPRA in 2013, including:
1. Require on or after January 1, 2027, retirement systems subject to PEPRA adjust the pensionable compensation limit to be consistent with federal law;
2. Authorize a public employer and a recognized employee organization to negotiate a prospective increase to the Defined Benefit (DB) retirement formulas for existing and new safety plan members by:
a. Lowering the benefit factor from age 57 to 55 for three (3) existing safety DB formulas; and
b. Creating a fourth PEPRA safety DB retirement formula of three percent (3%) at age 55.
3....
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