CA SB1413

Establishes the California Employers' Pension Prefunding Trust Fund to allow state and local public agency employers to prefund their required pension contributions for defined benefit pension plans.

Authorizes employers to elect participation in the prefunding plan subject to Board of Administration approval, with participating employers required to enter into contracts with the board governing terms and conditions.

Requires the board to offer participating employers cost-effective, diversified investment portfolios with risk and return profiles no greater than those available for the Annuitants' Health Care Coverage Fund.

Permits the board to terminate employer participation if the employer elects to cease, fails to meet contractual terms, or the board terminates the prefunding plan; assets remain in the fund for continued pension contribution payments under the participation terms.

Appropriates $695,140 from the General Fund to the Board of Administration for fiscal year 2019–20 to develop and implement the program.