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HomeMy WebLinkAboutMINUTES - 04031990 - 1.46 1-046 TO: BOARD OF SUPERVISORS s_ L Contra FROM: Costa Phil Batchelor, County Administrator DATE: March 26 1990 �r° County � �'9 C'UUN� SUBJECT: LEGISLATION: AB 3875 (Baker) SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOrIIIENDATION Adopt a position in SUPPORT of AB 3875 by Assemblyman Baker which would grandfather existing employees of PERS and 1937 Act Counties for purposes of federal limits on retirement benefits as is required by federal law in order to retain the tax exempt status of the retirement plans. BACKGROUND: Existing federal income tax laws provide special benefit limitations for public retirement plans. Public retirement plans risk loss of their federal tax-exempt status unless they elect to be bound by specified benefit payment limitations. A public retirement plan may elect to exempt members who became plan participants prior to January 1, 1990 from these limitations if the plan also elects to be bound by these limitations for all members who join on or after that date. Assemblyman Baker has introduced AB 3875 at the request of the County Supervisors Association of California. As introduced, AB 3875 would make the necessary elections on behalf of the Public Employees Retirement System (PERS) and the counties (including Contra Costa County) whose retirement system were established pursuant to the County Employees' Retirement Law of 1937 . Since passage of AB 3875 is necessary in order to protect the vested rights of many county employees it is recommended that the Board of Supervisors indicate its support for AB 3875 . CONTINUED ON ATTACHMENT: NO YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): �Y� `"-i�'!/C ACTION OF BOARD ON April ► APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE x UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. CC: ATTESTED APR R' 3 1990 Assemblyman William P. Baker PHIL BATCHELOR,CLERK OF THE BOARD OF County Administrator Retirement Administrator SUPERVISORS AND COUNTY ADMINISTRATOR Les Spahnn, SRJ. Jackson, Barish & Assoc;._ _ M382 (10/88) BY ,DEPUTY