§ 50124 Public Utility Pension Benefits

• •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 1963 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 that the water company workers will keep their pension benefits, and it must say exactly what those benefits are.