Pensions Could Get Bump With New Law In Sonoma County

SONOMA COUNTY, CA — Sonoma County retirees who have gone without an increase to their pension could receive increases under a new law.

Assembly Bill 1601, authored by Assemblymember Chris Rogers, gives the Sonoma County Board of Supervisors greater flexibility to decide who would receive cost-of-living adjustments, how much they would receive, and how the county would fund them.

Inflation has stripped some pensions of more than half their purchasing power since 2008.

The law, signed by Gov. Gavin Newsom in September with a list of other bills, does not grant an increase or commit county funds.

“AB 1601 is about making sure that the dedicated public servants who helped build this community can stay in this community,” Rogers said.

“This bill will allow the Board of Supervisors to work with actuaries to do a targeted increase that will help the lowest-paid retirees.”

Rogers developed the legislation with SEIU and the Sonoma County Employees’ Retirement Association, which administers the county’s pension system.

The bill cleared the California Legislature with strong bipartisan support.

AB 1601 expands supervisors’ authority to authorize annual and unrestricted cost-of-living adjustments to retirement allowances, optional death allowances, or annual death allowances payable through the retirement association.

Previous law required the county to fund those adjustments with excess retirement fund earnings. Significant investment losses during the Great Recession made that funding approach unworkable, according to advocates.

Travis Balzarini, North Coast regional vice president of SEIU Local 1021, said the legislation allows supervisors to target Sonoma County and Sonoma County Superior Court retirees most in need while using any available funding source.

Eligibility is limited to retirees who have not had an increase in 18 years. And, before supervisors approve an increase, an actuarial analysis must show how it would affect future annual pension costs.

“This legislation opens the door to options we did not have before, but there is significant work ahead,” said Julie Wyne, chief executive officer of the retirement association. “We will work closely with the County to evaluate the costs and long-term implications before any recommendation is developed.”

The county created a pension trust in May to set aside money for future pension obligations and stabilize annual pension costs. Supervisors could use money accumulated in that trust to help fund a future adjustment.

The County Executive’s Office and the retirement association will evaluate the new options. Supervisors will receive an update during the annual State of the Retirement System presentation Oct. 13. That meeting will not include a COLA recommendation.