BILL NUMBER: AB 511	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Richman

                        FEBRUARY 16, 2005

   An act to add Title 19 (commencing with Section 99100) to the
Government Code, relating to retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 511, as introduced, Richman.   Public employees' retirement.
   Existing law provides retirement and death benefits to public
employees determined by formulas based on age, service credit, and
salary, under a variety of programs, including the Public Employees'
Retirement System and the State Teachers' Retirement System, which
are commonly known as defined benefit plans. Existing law also
provides, in limited instances, for public agency payments to defined
contribution plans.
   This bill, on and after July 1, 2007, would prohibit public agency
contributions to a defined contribution plan for employees covered
by the federal Social Security Act from exceeding 6% of an employee's
base salary, as defined, except that contributions of up to 9% would
be permitted for sworn police officers and full-time firefighters.
The bill would permit a public agency to contribute up to an
additional 3% of base salary for employees who are not covered by
social security. The bill would permit these limits to be exceeded
with respect to local public agencies comprised of directly elected
public officials upon a 2/3 vote of the electorate of that agency.
The bill would require matching employee contributions for public
agency contributions to a defined contribution plan in excess of 3%,
or 4.5% for sworn police officers or full-time firefighters, as
specified. The bill would condition its operation upon the approval
of a specified constitutional amendment, which would permit new
employees of public agencies, on and after July 1, 2007, to enroll
only in defined contribution plans.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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


  SECTION 1.  This act shall be known and cited as "The Fair and
Fiscally Responsible Public Employee Retirement Act."
  SEC. 2.  Title 19 (commencing with Section 99100) is added to the
Government Code , to read:

      TITLE 19.  CALIFORNIA PUBLIC EMPLOYEE DEFINED CONTRIBUTION PLAN


      CHAPTER 1.  GENERAL PROVISIONS

   99100.  (a) On and after July 1, 2007, the contribution of a
public agency to a defined contribution plan for employees covered by
the federal Social Security Act shall not exceed 6 percent of an
employee's base salary, which shall not include overtime, vacation,
or sick leave allowances, except that a public agency's contributions
up to 9 percent of an employee's base salary may be made for sworn
police officers and full-time firefighters. For employees who are not
covered by the federal Social Security Act, a public agency may
contribute up to an additional 3 percent of base salary.  (b) A
public agency shall not make a contribution to a defined contribution
plan in excess of 3 percent of salary without a qualified matching
contribution from the employee, except in the case of sworn police
officers and full-time firefighters. For a sworn police officer or
full-time firefighter that contribution may be 4.5 percent. A
qualified matching contribution under this section shall be at least
one dollar ($1) from the employee for every two dollars ($2) by the
public agency, up to the limits established in subdivision (a).
Employees may make additional unmatched contributions up to the
limits established by federal law.
   (c) With respect to any local public agency governed by directly
elected public officials, the limits imposed by subdivision (a) may
be exceeded upon a vote of two-thirds of the electorate of that
public agency.
   (d) "Public Agency" and "Defined Contribution Plan" have the same
meaning as set forth in Section 8 of Article XX of the California
Constitution.
  SEC. 3.  This act shall not become operative unless Assembly
Constitutional Amendment 5 of the 2005-06 Regular Session is approved
by the voters and becomes operative.