Under the Public Employees' Pension Reform Act (PEPRA), new public agencies formed after January 1, 2013, must adopt formulas outlined under PEPRA. This would prevent entities forming a joint powers authority from moving employees over to the joint powers authority without a reduction in benefits.
SB 1251 provides that if the cities of Brea and Fullerton, and up to three other contiguous cities in Orange County, form a joint powers authority, the joint powers authority may offer the benefit formula that those employees received from their respective employers on December 31, 2012, to any employee of the cities of Brea, Fullerton, or the other specified cities that may join the joint powers authority. However, the individual cannot have had a break in service of 180 days or more and cannot be a "new member" under PEPRA.
(SB 1251 amends Section 7522.02 of the Government Code.)