AB 1987 Summary

• Prohibits changes in salary, compensation, or remuneration made principally to enhance retirement benefits from being included in final compensation calculations, effective July 1, 2011

• Requires state and local public retirement system boards to establish audit processes and accountability provisions to ensure compliance, with authority to impose monetary penalties on non-compliant employers

• Limits final compensation increases for employees not in a group or class to match the average increase for similarly situated employees in related groups during the final compensation period and preceding two years

• Prohibits retirees who retired on or after January 1, 2012 from performing services for any retirement system employer (as employee, contractor, or through third party) until 180 days have elapsed since retirement

• Excludes final settlement pay and multi-year accruals of vacation, annual leave, personal leave, or sick leave from retirement calculations