BILL NUMBER: AB 2438	CHAPTERED  07/24/06

	CHAPTER  121
	FILED WITH SECRETARY OF STATE  JULY 24, 2006
	APPROVED BY GOVERNOR  JULY 24, 2006
	PASSED THE SENATE  JUNE 29, 2006
	PASSED THE ASSEMBLY  APRIL 27, 2006
	AMENDED IN ASSEMBLY  MARCH 27, 2006

INTRODUCED BY   Assembly Member Chu

                        FEBRUARY 23, 2006

   An act to amend Section 20630 of the Government Code, relating to
public employees' retirement, making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2438, Chu  Public employees' retirement: compensation.
   The Public Employees' Retirement Law defines the term
"compensation" for purposes of determining required contributions and
benefits. That law generally requires a miscellaneous member to pay
6% and a school member to pay 7% of compensation as his or her normal
retirement contribution to the Public Employees' Retirement System.
Member contributions are made to the Public Employees' Retirement
Fund, a continuously appropriated fund.
   This bill would additionally define compensation to include, if
the member is a school employee of a school district or community
college district, industrial disability leave paid to that member.
Because this bill would expand the definition of compensation of a
member who receives industrial disability leave and thereby increase
member contributions to the Public Employees' Retirement Fund, this
bill would make an appropriation.
   Appropriation: yes.


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


  SECTION 1.  Section 20630 of the Government Code is amended to
read:
   20630.  (a) As used in this part, "compensation" means the
remuneration paid out of funds controlled by the employer in payment
for the member's services performed during normal working hours or
for time during which the member is excused from work because of any
of the following:
   (1) Holidays.
   (2) Sick leave.
   (3) Industrial disability leave, during which, benefits are
payable pursuant to Sections 4800 and 4850 of the Labor Code, Article
4 (commencing with Section 19869) of Chapter 2.5 of Part 2.6, or
Section 44043 or 87042 of the Education Code.
   (4) Vacation.
   (5) Compensatory time off.
   (6) Leave of absence.
   (b) When compensation is reported to the board, the employer shall
identify the pay period in which the compensation was earned
regardless of when reported or paid. Compensation shall be reported
in accordance with Section 20636 and shall not exceed compensation
earnable, as defined in Section 20636.