CA AB1383

Establishes three new retirement formulas for public safety employees (firefighters, police officers, first responders) hired on or after January 1, 2027: 2.5% at age 55, 2.7% at age 55, or 3% at age 55, replacing the current formulas that use age 57.

Requires employers to adjust retirement formulas for safety members hired after January 1, 2013 to the new age-55 formula closest to their existing plan for service performed on or after January 1, 2027.

Increases the pensionable compensation cap for employees not in the federal Social Security system from 120% to 135% of the federal contribution and benefit base, effective January 1, 2027.

Authorizes public employers and employee unions to negotiate prospective increases to safety member retirement benefit formulas through collective bargaining agreements.

Cites recruitment and retention challenges for safety personnel and elevated cancer risks for firefighters (classified as Class 1 carcinogen occupation in 2022) as justification for enhanced retirement benefits.