BILL NUMBER: AB 552	CHAPTERED  10/12/03

	CHAPTER  835
	FILED WITH SECRETARY OF STATE  OCTOBER 12, 2003
	APPROVED BY GOVERNOR  OCTOBER 11, 2003
	PASSED THE ASSEMBLY  SEPTEMBER 5, 2003
	PASSED THE SENATE  SEPTEMBER 3, 2003
	AMENDED IN SENATE  SEPTEMBER 2, 2003
	AMENDED IN SENATE  JUNE 25, 2003
	AMENDED IN ASSEMBLY  APRIL 24, 2003
	AMENDED IN ASSEMBLY  MARCH 26, 2003

INTRODUCED BY   Assembly Member Chavez
   (Principal coauthor:  Assembly Member Calderon)

                        FEBRUARY 18, 2003

   An act to add Section 21039 to the Government Code, relating to
public employees' retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 552, Chavez.  Public employees' retirement:  service credit
election.
   Under the Public Employees' Retirement Law, service retirement
allowances are calculated, in part, based on years of credited
service.  Members may elect to receive additional credit for public
service and other types of service, as specified, subject to the
payment of additional contributions. The payment of those
contributions may be made in a lump sum or by installment payments.
   This bill would authorize specified public safety members who have
elected to receive additional service credit and who retire or have
retired due to industrial disability while making installment
payments for that service credit to cancel those installment payments
prospectively in certain cases in which the election to purchase
service credit will not increase the member's allowance, as
specified.  The bill would also provide that it may not be construed
to limit any right or benefit granted pursuant to other specified
provisions of law.


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


  SECTION 1.  Section 21039 is added to the Government Code, to read:

   21039.  (a) Notwithstanding any other provision of law, a safety
member, as defined in subdivision (b) of Section 20371, who has
elected to receive credit for service by making contributions in
installment payments and who retires or has retired due to industrial
disability while making those payments, may elect to cancel the
payments prospectively if the election to receive credit for service
does not increase the member's allowance payable.  The effective date
of the member's election to cancel payments shall be the first day
of the month following receipt of the election by the system.  No
refund of contributions paid in installments prior to the effective
date of the member's election to cancel the payments shall be payable
to a member or retired member as a result of an election made by a
member pursuant to this section.
   (b) A member's election pursuant to this section shall be void,
and the installment payments shall resume, upon a member's
reinstatement from retirement for industrial disability.  The
remaining balance due shall be recalculated to include interest
during the industrial disability retirement period.
   (c) Nothing in this section shall be construed to limit any right
or benefit granted pursuant to Section 20776 or 21037, as amended by
Senate Bill 268 of the 2003-04 Regular Session.