OFFICE OF THE GOVERNOR

To Members of the California Legislature:

I am returning Senate Bill 1538 without my signature.

This bill makes many technical and clarifying changes to the California Public Employees' Retirement Law, the Judges' Retirement Law, the Judges' Retirement System II Law, the Volunteer Firefighters' Length of Service Award System and the Legislators' Retirement System. In addition to these changes, the bill contains issues that should be considered not only on the basis of their administrative impact but also for their policy impact.

In particular, Section 25 of the bill requires that when a State employees' contribution rate is reduced, funds will be transferred without the consent or agreement of the employer.

I want to assure State retirees that their retirement benefits will continue without interruption or reduction. I would be willing to reconsider the technical changes contained in this bill next year.

Sincerely

GRAY DAVIS

GOVERNOR GRAY DAVIS ·SACRAMENTO, CALIFORNIA 95814 · (916) 445-2841