BILL NUMBER: SB 1206	CHAPTERED  09/10/04

	CHAPTER  466
	FILED WITH SECRETARY OF STATE  SEPTEMBER 10, 2004
	APPROVED BY GOVERNOR  SEPTEMBER 10, 2004
	PASSED THE ASSEMBLY  AUGUST 23, 2004
	PASSED THE SENATE  MAY 10, 2004
	AMENDED IN SENATE  APRIL 12, 2004

INTRODUCED BY   Senator Soto

                        FEBRUARY 10, 2004

   An act to add Section 31539 to the Government Code, relating to
county employees' retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1206, Soto.  County employees' retirement:  correction of
errors.
   The County Employees Retirement Law of 1937 prescribes benefits
for members of county and district retirement systems subject to the
act.  Those benefits are based, in part, on a calculation of the
member's final compensation, as defined.  Management of each of those
retirement systems is vested in a board of retirement, except in
specified circumstances.
   This bill would authorize the board of retirement to recalculate a
member's retirement benefits, and to recover any overpayment of
benefits, if the member made, or caused to be made, fraudulent
compensation reports or directly or indirectly caused the member's
final compensation to be overstated for purposes of the calculation
of benefits.  The period of limitation of actions under the bill's
provisions would be 10 years, as specified.


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


  SECTION 1.  Section 31539 is added to the Government Code, to read:

   31539.  (a) The board of retirement may, in its discretion,
correct any error made in the calculation of a retired member's
monthly allowance or any other benefits under this chapter, if either
of the following exist:
   (1) The error in the calculation of the member's monthly allowance
or other benefits under this chapter was made as a result of
fraudulent reports for compensation made, or caused to be made, by
the member for his or her own benefit.
   (2) The member caused his or her final compensation to be
improperly increased or otherwise overstated at the time of
retirement and the system applied that overstated amount as the basis
for calculating the member's monthly retirement allowance or other
benefits under this chapter.
   (b) The retirement allowance or other benefits under this chapter
with respect to a retired member described in subdivision (a) shall
be adjusted prospectively to the amount that would have been payable
if the overstatement of the member's final compensation had not
occurred.
   (c) Adjustment of the member's retirement allowance or other
benefits may also be implemented retroactively and include the
collection or return of the overpayment of benefits.  The board of
retirement may direct staff to correct the overpayment of benefits by
offsetting the amount to be recovered against future benefits.
Adjustments to correct the overpayment of benefits may also be made
by adjusting the allowance so that the retired member or the retired
member and his or her beneficiary, as the case may be, will receive
the actuarial equivalent of the allowance to which the member is
entitled.
   (d) The rights and remedies provided in this section are in
addition to any other rights and remedies any party may have at law
or in equity.  Nothing in this section shall preclude any party from
instituting an action for declaratory or other relief in lieu of
proceeding under this section.
   (e) The period of limitation of actions under this section shall
be 10 years and that period shall commence either from the date of
payment or upon discovery of the facts described in subdivision (a),
whichever date is later.  The board shall determine the applicability
of the period of limitation in any case, and its determination with
respect to the running of any period of limitation shall be
conclusive and binding for purposes of correcting the error.