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Public Employees’ Pension Reform Act (PEPRA)

Annual Joint Meeting of the AC Transit Board of Directors and Retirement Board

Denise C. Standridge, General Counsel Hugo Wildmann, Retirement System Manager

October 21, 2015

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Status of Lawsuit

• Sacramento filed a motion to enforce Judge Mueller’s prior order. The hearing is set for October 30, 2015.

• Sacramento also requested leave to file a supplemental complaint & is expecting the court’s decision on October 16, 2015. If leave is not granted, a new complaint will be filed and Sacramento will request that it be considered a related case so that it is assigned to Judge Mueller.

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Status of Grants

13c Exposure: • Agencies have received the DOL “condition” letters.

The conditions are essentially that the agency will either need to (1) return the grant money or (2) restore employees to pre PEPRA status.

• Agencies are responding with their own conditions. • The funds are flowing despite the competing

“condition” letters.

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PEPRA Future

• It is anticipated that it may take up to 18 months before a final decision is issued by Judge Mueller.

• The matter will then be appealed to the 9th Circuit and it is anticipated that the loser will then request a full court opinion. It is likely this will be another 6-8 months.

• The loser will probably then go to the US Supreme Court. We could be years from a final decision.

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Should the District Implement PEPRA, Areas of Concern Include:

• District and Retirement System will work together on the areas of concern, both immediate and long term. Some will be the responsibility of the District and some of the Retirement System.

Immediate Areas of Concern: • Application of PEPRA • Info to provide new employees (rep & unrep) • Plan Amendment (170 process) • Treatment of contributions

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Implementation Issues

Long Term Areas of Concern: • Return/refund of contributions • Benefit Statements • Actuarial Issues • What if a “PEPRA employee” retires before this issue

is resolved?

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