Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Public Pensions topic
No spam. Unsubscribe anytime.
Bill would require CalPERS to notify unions when employers are audited after Kern case left worker with six-figure bill
Summary
SB 1038, presented by Senator Laird and sponsored by CSEA, would expand CalPERS audit-notification requirements so unions receive initial and final audit notices and lists of affected members after a Kern High School District audit produced a large repayment notice to a single worker; the committee passed the bill and referred it to Appropriations.
Senate Bill 1038, sponsored by the California School Employees Association and presented to the Assembly Committee on Public Employment and Retirement, would require CalPERS to provide unions with initial audit notifications and the final audit report's affected-member lists, proponents said.
Sponsor remarks (speaker 4, identified in the hearing as Senator Laird) cited a 2020 CalPERS audit of Kern High School District that, according to the sponsor, revealed incorrect inclusion of special compensation in base pay and left an individual with an $88,400 bill after several years of process. The sponsor said SB 1038 would allow unions to be notified early and to advocate for affected members.
Support: Witnesses who spoke in favor included representatives from the Teamsters, the California Labor Federation and AFSCME. The sponsor told the committee the bill had no registered opposition.
Action: The committee voted to pass SB 1038 and referred it to the Appropriations Committee; the clerk confirmed votes of members present and the committee placed the bill on hold for absent members.
Why it matters: Proponents said the change would help unions inform and advocate for members who may face retroactive repayment obligations following an audit, potentially reducing individual financial harm and improving transparency during audit processes.
Next steps: SB 1038 will go to Appropriations for further consideration.
