On February 16, 2016, Assembly Member Cooper introduced Assembly Bill 2028.  If passed, the bill will allow reinstated CalPERS school and local agency members to receive service credit and compensation earnable as though they were never terminated.

The current version of the bill addresses a gap in existing law.  Existing law allows state employees that have been subject to an involuntary termination that has been subsequently overturned to receive service credit retroactively, but this does not apply to employees of a contracting agency.

AB 2028 addresses this by making the proposed changes to the Public Employees’ Retirement Law which would:

  • Apply to a CalPERS member who is involuntarily terminated on or after January 1, 2017.
  • Apply where an involuntary termination is set aside in any administrative, arbitral or judicial proceeding.
  • Require service credit and credit for compensation earnable be granted to CalPERS members who are employed by any agency, if the member was involuntarily terminated, effective as of the date from which retroactive salary is awarded.

AB 2028 would also require employers to notify CalPERS of a final decision ordering reinstatement within five days of the decision becoming final.  That notice must include the date of involuntary termination, the date on which the employee was reinstated, and any additional information CalPERS may require to implement the bill.

LCW will keep you updated on any developments regarding Assembly Bill 2028.