BILL NUMBER: AB 1071	CHAPTERED  09/04/01

	CHAPTER  239
	FILED WITH SECRETARY OF STATE  SEPTEMBER 4, 2001
	APPROVED BY GOVERNOR  SEPTEMBER 4, 2001
	PASSED THE ASSEMBLY  AUGUST 20, 2001
	PASSED THE SENATE  JULY 21, 2001
	AMENDED IN SENATE  JULY 5, 2001

INTRODUCED BY   Assembly Member Canciamilla

                        FEBRUARY 23, 2001

   An act to add Section 31870.4 to the Government Code, relating to
county employee retirement benefits.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1071, Canciamilla.  County employee retirement benefits:
cost-of-living adjustments.
   Existing law provides that retirement and death allowances payable
by a retirement system subject to the County Employees Retirement
Law of 1937 shall be increased or decreased annually according to
changes in a specified Consumer Price Index; however, those annual
adjustments may not exceed a specified percentage and the percentage
change in the index that exceeds that specified maximum is required
to be accumulated and met by increases or decreases in allowances in
future years, as specified.
   This bill would modify the method for computing those
accumulations, as specified.  The bill's provisions would be subject
to adoption by the county board of supervisors and, upon adoption,
would be applied to accumulations of retired members retroactively to
the member's date of retirement.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 31870.4 is added to the Government Code, to
read:
   31870.4.  Notwithstanding any other provision of law, the
accumulation established in Section 31870, 31870.1, 31870.2, or
31870.3 shall be computed by multiplying the existing accumulation
from prior years by an amount equal to one plus the amount of any
cost-of-living increase or decrease in the current year, and adding
to this result the "accumulation adjustment," where "accumulation
adjustment" means the amount of any cost-of-living increase or
decrease in the current year that is not met by the maximum annual
change in allowances provided in Section 31870, 31870.1, 31870.2, or
31870.3, whichever is applicable.  At no time may the accumulation
established in Section 31870, 31870.1, 31870.2, or 31870.3 be less
than zero.
   This section shall not be operative in any county until it is
adopted by a majority vote of the board of supervisors.  Upon
adoption of this section by the board of supervisors, the
accumulation of each member under Section 31870, 31870.1, 31870.2, or
31870.3, whichever is applicable, shall be recomputed as if this
section had been in effect on the member's date of retirement.