§ 95654 Pension Benefits For Acquired Utilities

• •When a public utility (like water or electricity company) is bought by the 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 1965 to make sure workers' pensions are protected when their company is bought.

A city buys a local water company.

The city must write in the purchase agreement which workers will keep getting their pension money and how much they will get. This way, the workers don’t lose their retirement money when the company is sold.