El Dorado County Employees Association, Local #1 is excited to offer our membership new insurance benefits to help you better protect yourself and your family. Approved by your governing Board of Directors, this optional insurance is in addition to any benefits offered to you through your employer.
Question: What is the Public Employees' Pension Reform Act?
Answer: On September 12, 2012, the California Public Employees' Pension Reform Act of 2013 (PEPRA), also known as Assembly Bill 340 or AB 340, was signed into law by Governor Jerry Brown. The bill will take effect January 1, 2013 and will impact members who are current employees, future employees or retirees. The measure includes a number of provisions intended to establish statewide uniformity in pension benefits provided to public employees who qualify as "New Members" under PEPRA. In addition, the measure changes some rules as to current public employees, such as its elimination of air time service credit purchases on or after January 1, 2013 and its felony forfeiture provisions. Finally, the measure places additional limits on retirees who seek to work during retirement for an employer in the same retirement system from which an individual is drawing a retirement allowance.
Question: Did EDCEA Local #1 negotiate these changes to the pension system?
Answer: No. The Union did not negotiate these changes with the County. The changes were enacted by law and apply to all employers and employees who participate in CalPERS. The terms of PEPRA described in the MOU cannot be superseded or changed through collective bargaining by any union. The changes to the Contract are only to update the contract language to reflect the benefit modifications that resulted when PEPRA was enacted.
Question: Does PEPRA change my retirement formulas?
Answer: The new retirement formulas only apply to County employees who became CalPERS members on or after January 1, 2013. If you were enrolled in CalPERS on or before December 31, 2012, you will keep the same retirement formula you have always had.
Question: Does PEPRA change how much I have to pay each month towards my pension?
Answer: Yes and No. If you are hired prior to January 1, 2013 you will not be affected until 2018. If you
are hired after January 1, 2013 you shall be immediately affected.
Question: What is "normal cost"?
Answer: Each year CalPERS gives the County a bill to cover the cost of funding the future pension payouts for all current active employees. This cost is the normal cost. The bill for all future pension payouts is spread over thirty years, so the annual normal cost estimate only represents a fraction of the total estimated pension obligation. Also, because normal cost is based on the demographics of a large population, it should not vary much from year to year.
Question: Does normal cost include unfunded liabilities?
Answer: No. Each year the County pays for its portion of the normal cost and pays an additional amount to cover the unfunded liabilities that have accumulated in the pension system over the last decade. Employees do not pay for any of the unfunded liabilities.
Question: So, why is the change occurring now? I was hired after January 1, 2013 and my rate has gone up by approximately 7%. Why?
Answer: Actually your rate has gone up 6.25% and it was effective pay period number 24. This is a direct result of our MOU expiring on June 30, 2013 and our "Successor Agreement" negotiations completing on November 5, 2013
EDCEA Board of Director's 12-3-2013 Meeting Cancelled
due to weather conditions
Executive Director: Jere Copeland
Business Agent: Richard Boyd
Office Manager: Kim Ivester
2864 Ray Lawyer Drive Suite 202 Placerville, CA 95667