§ 28854 Public Utility Pension Benefits

• •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 1957 to make sure workers' pensions are protected when their company is sold.

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. If they don’t write it down clearly, the workers might not get their pensions.