CA AB2493

Requires county retirement systems to discontinue reporting compensation determined to be disallowed under PEPRA, the Alameda case, Section 31461, or system regulations for sworn peace officers and firefighters.

For active officers/firefighters, systems must credit all contributions made on disallowed compensation against future employer contributions and return any member-paid contributions, unless the system had already initiated a recalculation process prior to July 1, 2022.

For retired officers/firefighters, survivors, or beneficiaries whose retirement benefits were based on disallowed compensation, systems must permanently adjust benefits to exclude the disallowed compensation and credit contributions against future employer contributions.

Requires employers to pay the system the full cost of any overpayments made and pay affected retirees 20 percent of the actuarial equivalent present value difference between the old and adjusted allowances, with payments to begin within six months and be completed within four years.

Allows employers to submit proposed compensation items in agreements to retirement systems for review of PEPRA and legal compliance, with systems required to provide guidance within 90 days of receiving complete information.