AB 1592 Summary

• Approves memoranda of understanding between the state and State Bargaining Units 5, 8, 12, 16, 18, and 19 requiring expenditure of funds, allowing such provisions to take effect through legislation other than the annual Budget Act.

• Establishes continuous appropriations for employee compensation and benefits for these bargaining units if the annual Budget Act is not enacted by July 1 for fiscal years 2010-11 through 2013-14.

• Increases PERS contribution rates by 5% for miscellaneous and safety members in Units 5, 8, 12, 16, 18, and 19, and by 2% for firefighter and patrol members in Units 5 and 8.

• Changes final compensation calculation to a 36-month period (instead of 12-month) for new state employees hired on or after October 31, 2010, represented by Units 5 and 8.

• Modifies retirement formulas for new employees: miscellaneous members to 2% at 60 (instead of 2% at 55), and patrol/firefighter members in Units 5 and 8 to 3% at 55 (instead of 3% at 50).