Assembly Bill (AB) 2028 applies to all active California Public Employees’ Retirement System (CalPERS) school and local agency members. This recent legislation was introduced by Assembly Member Jim Cooper. AB 2028 allows active CalPERS school and local agency members who were wrongfully terminated to recover service credit and compensation earnable if their termination is reversed. This bill fixes a significant inconsistency in previous law, which treated school and local agency members differently than other state employees.
AB 2028 applies to members who were subject to a wrongful termination effective on or after January 1, 2017. Members who are reinstated by administrative or judicial order following the termination may now receive retirement benefits as though they were never terminated. Restoration of these benefits ensures that such members will be made “whole” following their disciplinary appeal.
Prior to AB 2028, school and local agency members could receive these benefits retroactively if they retired following the wrongful termination, but were later reinstated. This retirement condition was inconsistent with how other state employees were treated in the same situation. AB 2028 eliminates the inconsistency by making school and local agency members eligible to seek these same benefits, regardless of retirement.
AB 2028 provides that reinstatement of benefits will be effective as of the date from which salary is awarded. Employers are required to notify CalPERS within five days once an employee being reinstated after he or she had been wrongfully terminated.