Public retirement benefits: excess salaries.

The Public Employees' Retirement Law (PERL) creates the Public Employees' Retirement System (PERS) , which provides a defined benefit to its employees based on age at retirement, service credit, and final or highest compensation paid to the employee. In the case of an employee who has been employed by one or more contracting public agencies, retirement benefits distributed to that employee is the obligation of all of contracting public agency employers and is prorated to each of the contracting public agencies based upon the number of years that the employee worked for each of those agencies. This bill would provide that the obligations for retirement benefits that are attributable to excess compensation earned by a nonrepresented employee who was employed by one or more public agencies shall be the sole obligation of the subsequent contracting agency that paid the excess compensation. This bill would define "excess compensation" as the final compensation of an employee of a contracting agency who previously worked for another contracting agency to the extent the final compensation received from the current contracting agency is in excess of 15% of the salary paid by the prior contracting agency, as adjusted for actuarial increases in that salary.