Last week LACERA, the Los Angeles County Coalition of Unions and County staff met several times in an effort to reach a December 1 deadline to have new pension plans in place that comply with Gov. Browns new Public Employee Pension Reform Act (PEPRA).
The outcome held good and bad news. The good news is that LACERA has determined that all current items of pensionable compensation and plan design for existing employees is a vested right, protectedy by state and federal law and cannot be challenged. There will be NO changes to pensionable income, highest single year, contributions, health care etc.. there will be no changes to any aspect of active employee plans.
LACERA Board of Retirement approved the following language in a board memo (see attached):
"After thorough analysis, staff recommends that no change be made in the items
included in the definition of "compensation earnable." Therefore, as to current members,
the items your Board has already determined qualify as "compensation earnable" will
remain includable when calculating a member's final compensation."
This means ALL items of compensation currently recognized will not change (Vacation, Sick, Holiday, Bonus position, etc).
The bad news is that PEPRA is forcing LACERA to set up Safety Plan C, and General Plan G that members will be placed as of December 1, 2012. New members will be defined as those that are new members of LACERA as of December 1. If a member has time with another agency prior to Dec. 1 and has not been separate for too long, LACERA will recognize that employee as a Plan B safety member.
Safety Plan C and General Plan G will contain:
1. Highest 3 years compensation for purposes of retirement.
2. Pensionable income must be an integral part of thier job duties, and must be available to everybody in their class (Paramedic, EMT, Haz Mat are all OK) other bonus' did not pass the test (Fit for Life, Uniform allowance).
3. No more use of Vacation, Sick, Holiday time for purposes of retirement
4. No more "30-n-Out"
The new plans are far from ideal for new employees. Local 1014 is actively meeting with anybody who will hears us, meeting regularly with the county and seeking any legal avenues to improve these plans.