CA AB3025

Requires county retirement systems to discontinue reporting disallowed compensation (compensation not compliant with PEPRA or Alameda holding) once identified and credit employer contributions made on that compensation against future employer contributions.

For active members, systems must return any member contributions paid on disallowed compensation directly or through the employer; for retired members/survivors/beneficiaries, systems must permanently adjust benefits to exclude disallowed compensation and return member contributions.

Requires employers who reported disallowed compensation to pay the system for any overpayments made to affected retirees and pay affected retirees 20 percent of the actuarial equivalent present value difference between old and adjusted benefits, with payment beginning within six months and completing within four years.

Allows employers and employee representatives to submit proposed compensation items to retirement systems for review starting January 1, 2025, to ensure compliance with PEPRA and other pension laws, with systems required to provide guidance within 90 days.

Protects confidentiality of retired member and beneficiary contact information shared by retirement systems with employers for purposes of this section and does not alter parties' rights to appeal disallowed compensation determinations made after July 30, 2020.