CA AB2310

Allows contracting agencies and their employees to share employer contribution costs through collective bargaining agreements or memoranda of understanding, with cost-sharing rates specified either as exact percentages or through calculation methodologies.

Requires contracting agencies using a methodology instead of an exact percentage to provide the retirement system a signed side letter ratified by both the employee bargaining unit and agency indicating the exact percentage at least 90 days before the cost-sharing rate becomes effective.

Eliminates the requirement for contract amendments in subsequent collective bargaining agreements or memoranda of understanding once a contracting agency initially elects to be subject to cost-sharing provisions.

Allows cost-sharing percentages to differ by employee classification if employees are subject to different benefit levels or if agreed upon in a recognized collective bargaining unit memorandum of understanding.

Member contributions under cost-sharing are treated as normal contributions for all purposes of the Public Employees' Retirement Law and must be withheld from compensation when the cost-sharing arrangement becomes effective.