AB 1631 Summary

• Establishes a 36-month final compensation averaging period for state employees first hired on or after November 10, 2010, in State Bargaining Units 6, 7, and 9, excluded employees, legislative employees, judicial branch employees, and California State University employees.

• Changes retirement formulas for state miscellaneous members first hired on or after November 10, 2010, from 2% at 55 to 2% at 60 (unless superseded by existing memoranda of understanding).

• Changes retirement formulas for peace officer/firefighter members in State Bargaining Units 6 and 7 first hired on or after November 10, 2010, to 2.5% at 55 (unless superseded by existing memoranda of understanding).

• Changes retirement formulas for state and California State University safety members first hired on or after November 10, 2010, from 2.5% at 55 to 2% at 55 (unless superseded by existing memoranda of understanding).

• Takes effect immediately as an urgency statute to apply to the 2010-11 fiscal year; existing memoranda of understanding remain controlling until expiration, after which the new provisions cannot be superseded.