§ 25055 Pension Benefits For Acquired Utilities

• •When a public utility (like water or electricity company) is bought by a district, the workers' pension benefits must be clearly written down in the deal.
• •The deal must say exactly who gets these pension benefits and what those benefits are.
• •This rule was added in 1955 to make sure workers' pensions are protected when their company is bought.

A city buys the local water company.

The city must write in the purchase agreement that all the water company workers will keep their pension benefits, and it must say exactly what those benefits are.