BILL NUMBER: AB 2366 CHAPTERED 07/24/06 CHAPTER 120 FILED WITH SECRETARY OF STATE JULY 24, 2006 APPROVED BY GOVERNOR JULY 24, 2006 PASSED THE SENATE JUNE 26, 2006 PASSED THE ASSEMBLY MAY 15, 2006 AMENDED IN ASSEMBLY MAY 10, 2006 AMENDED IN ASSEMBLY MARCH 27, 2006 INTRODUCED BY Assembly Member Sharon Runner FEBRUARY 23, 2006 An act to add Section 31680.8 to the Government Code, relating to county employees' retirement. LEGISLATIVE COUNSEL'S DIGEST AB 2366, Sharon Runner County employees' retirement: reinstatement of county retirees. Under the County Employees Retirement Law, if a county board of supervisors adopts a resolution by majority vote, a safety member of a county or district within that county may be required to retire at a specified age. That law permits a retired member to be reemployed by the county or a district and reinstated to active membership in the retirement system, as specified. That law requires the retirement system to cancel the retirement allowance of the member as of the date of reemployment of that member. That law permits the member to earn an additional retirement benefit for that period of service after the reinstatement and reemployment of the member. That law further provides that the retirement allowance of the member resumes only upon the subsequent termination of employment by that member. This bill would additionally permit a retired safety member in Los Angeles County who was required to retire because of age to be reemployed by the county and reinstated to active membership, as specified. This bill would permit that safety member to earn an additional retirement benefit for the period of service after reinstatement and reemployment pursuant to the formula applicable to that member prior to his or her reinstatement. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 31680.8 is added to the Government Code, to read: 31680.8. (a) Notwithstanding any other provision of law, a safety member who was required to retire for service because of age during the operative dates of, and as described in, Section 31662.4, 31662.6, 31662.8, or 31663, may be reemployed by the county in the same position that he or she retired from and be reinstated to active membership upon all of the following: (1) His or her application to the board for reinstatement to active membership. (2) The determination of the board, based on medical advice, that the member is not incapacitated for the duties of the position assigned to him or her. (b) The member shall be reinstated to active membership in the plan or tier that he or she retired from, effective the first day of the month following the date of reemployment, and his or her membership shall be the same as if unbroken by retirement. Notwithstanding any other provision of law, the credited service of the member rendered both before and after reinstatement shall be included for the purpose of determining the eligibility of the member for benefits under this chapter. (c) Upon reemployment pursuant to this section, the retirement allowance of the member shall be cancelled. Upon the subsequent termination of the member from employment, the retirement allowance of the member shall be recalculated on the basis of the credited service rendered both before and after reinstatement pursuant to the formula applicable to the member prior to reinstatement. Notwithstanding any other provision of law, the reinstatement rights conferred by this section shall not entitle a person to a retirement right or benefit that exceeds the limitations in the Internal Revenue Code that apply to public retirement systems. (d) Upon reinstatement pursuant to this section, the rate of contribution of the member shall be based on the same age at entry that was used in calculating the contribution rate of the member during his or her original period of employment. (e) This section shall apply only to a county of the first class as described in Section 28020 and shall not become operative in that county until the board of supervisors, by resolution adopted by majority vote, makes this section operative in that county.