CA AB1054

Establishes a voluntary Deferred Retirement Option Program (DROP) within the California Public Employees' Retirement System (PERS) for State Bargaining Unit 5 (Highway Patrol officers) and State Bargaining Unit 8 (CAL FIRE firefighters)

Allows eligible safety members who meet retirement requirements to continue working up to 60 consecutive months beyond their planned retirement date while accruing benefits in a separate program account instead of additional pension credits

Requires completion of an actuarial analysis certifying the program is cost neutral, adoption of regulations by the PERS Board of Administration, and agreement through collective bargaining before implementation

Mandates participants waive disability retirement claims for pre-existing conditions, obtain spousal acknowledgment of potential reduced benefits, and make an irrevocable one-time election to participate

Requires the PERS Board to submit actuarial analysis reports every 5 years beginning July 1, 2027, to the Department of Finance, Department of Human Resources, and Legislature, with recommendations for modifications if costs exceed projections