CA AB1912

Parties to joint powers agreements cannot specify alternative liability arrangements for retirement obligations if the agency contracts with a public retirement system.

Member agencies of a terminating joint powers authority must mutually agree on apportioning 100% of retirement liabilities; if they cannot agree, the retirement board must apportion the liabilities, with member agencies able to challenge the apportionment through arbitration within 30 calendar days.

All parties to a terminating joint powers authority are jointly liable to the retirement system for any deficit in funding earned benefits, interest, and collection costs including attorney's fees; the board has a lien on assets of both the terminated agency and all parties to it.

The retirement board must consider and exhaust all legal options, including civil actions against member agencies to compel payment of pension obligations, and is entitled to recover reasonable attorney's fees in addition to other costs.

These provisions apply retroactively to agreements existing on or before January 1, 2019, and prospectively to new agreements on or after that date.