BILL NUMBER: AB 3033 CHAPTERED 09/30/06 CHAPTER 834 FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2006 APPROVED BY GOVERNOR SEPTEMBER 30, 2006 PASSED THE ASSEMBLY AUGUST 28, 2006 PASSED THE SENATE AUGUST 23, 2006 AMENDED IN SENATE AUGUST 21, 2006 AMENDED IN ASSEMBLY MAY 11, 2006 AMENDED IN ASSEMBLY MARCH 29, 2006 INTRODUCED BY Assembly Member Lieber FEBRUARY 24, 2006 An act to amend Section 31485.7 of, and to add Sections 21024.5 and 31641.55 to, the Government Code, relating to public employees' retirement, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGEST AB 3033, Lieber Public employees' retirement: service credit: firefighters. (1) Under the Public Employees' Retirement Law, service retirement allowances are calculated, in part, based on years of credited service. Members may, under existing law, elect to receive service credit for various types of public service. Existing law permits a local agency to contract with the Public Employees' Retirement System for the inclusion of members of the local agency's retirement system in the Public Employees' Retirement System. Member contributions to the Public Employees' Retirement System are deposited in the Public Employees' Retirement Fund, a continuously appropriated fund. This bill would authorize local members of the Public Employees' Retirement System who are local firefighters to elect to receive service credit for public service as permanent career firefighters, as specified, if the service was terminated as a result of the closure, downsizing, or realignment of a federal military institution, and if these provisions are adopted by their contracting agencies. By increasing the amount of employee contributions to the Public Employees' Retirement Fund, the bill would make an appropriation. (2) Existing law authorizes members of a retirement system subject to the County Employees Retirement Law of 1937 to receive service credit for prior public service, as defined, if authorized by the governing board of the county or district and subject to the payment by the member of an amount equal to twice the contributions the member would have made for that service, plus interest. If approved by a 4/5 vote of the governing body, the county or district may elect to make these contributions. This bill would authorize specified county firefighters to receive service credit for service as permanent career firefighters performed for another public agency, as defined, if the service was terminated as a result of the closure, downsizing, or realignment of a federal military institution and the governing body of a county or district permits the purchase of that service credit. The bill would require that the member pay an amount equal to the contributions the member would have made for that service, plus interest or, if approved by a majority vote of the governing body, those amounts would be paid by the county or district. (3) This bill would also incorporate additional changes in Section 31485.7 of the Government Code proposed by AB 2240 that would become operative only if AB 2240 and this bill are both chaptered and become effective on or before January 1, 2007, and this bill is chaptered last. Appropriation: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) Since 1988, a process known as Base Realignment and Closure, or BRAC, has closed approximately 100 major military installations nationwide. Of the 28 states that have incurred major base closures, California has sustained about 30. (b) As a result of BRAC, some federal firefighters living in California and working for California-based federal military installations have found their fire service jobs eliminated and their retirement security jeopardized. (c) Some of these displaced federal firefighters have gone on to work for California's municipal fire departments, thereby enabling their years of training to benefit the citizens of California. (d) In the event of an emergency, the firefighters who answer the call must be highly trained, qualified public servants. In order to attract skilled, career fire service individuals and thus ensure the public's safety, municipal fire agencies must be afforded the tools necessary to competitively recruit and retain qualified personnel. (e) Among the current law recruitment and retention tools afforded to municipal governing bodies is the ability for elected officials to grant employees, including firefighters, the option of purchasing certain types of prior public service for credit in the agency's retirement system. To this end, prior public service often includes, for example, service rendered to our nation's military, the Peace Corps or AmeriCorps, or employment financed by the Comprehensive Employment Training Act of 1973, or CETA. (f) Enhancing a public employer's recruitment and retention tool chest to permit the purchase of past federal firefighter time as prior public service credit in that employer's retirement system would safeguard the retirement security of those municipal firefighters who once served as civilian federal firefighters, but were terminated as a consequence of federal military installation closure or downsizing. SEC. 2. Section 21024.5 is added to the Government Code, to read: 21024.5. (a) "Public service" with respect to a member who is a local firefighter also means time served, before becoming a member, as a permanent career civilian federal firefighter or permanent career state firefighter in a position whose principal duties consist of active fire suppression or law enforcement and that service was terminated as a direct consequence of the closure, downsizing, or realignment of a federal military installation. (b) This section shall not apply to any contracting agency nor to the employees of any contracting agency until the agency elects to be subject to this section by contract or by amendment to its contract made in the manner prescribed for approval of contracts. SEC. 3. Section 31485.7 of the Government Code is amended to read: 31485.7. (a) Notwithstanding anything to the contrary in this chapter, a member who elects to purchase retirement service credit under Section 31486.3, 31494.3, 31499.3, 31499.13, 31641.1, 31641.5, 31641.55, 31646, 31652, or 31658, or under the regulations adopted by the board pursuant to Section 31643 or 31644 shall complete that purchase within 120 days after the effective date of his or her retirement. (b) This section is not operative in any county until the board of supervisors, by resolution, makes this section applicable in the county. SEC. 3.5. Section 31485.7 of the Government Code is amended to read: 31485.7. (a) Notwithstanding any other contrary provision of this chapter, a member who elects to purchase retirement service credit under Section 31486.3, 31486.35, 31499.3, 31499.13, 31641.1, 31641.5, 31641.55, 31646, 31652, or 31658, or under the regulations adopted by the board pursuant to Section 31643 or 31644 shall complete that purchase within 120 days after the effective date of his or her retirement. (b) This section is not operative in any county until the board of supervisors, by resolution, makes this section applicable in the county. SEC. 4. Section 31641.55 is added to the Government Code, to read: 31641.55. (a) A member described in Section 31470.4 who was in public service before becoming a member, and that service was terminated as a consequence of the closure, downsizing, or realignment of a federal military installation, may elect by written notice filed with the board to make contributions pursuant to subdivision (b) and to receive credit in the retirement system for all allowed public service time. (b) Any member described in subdivision (a) who elects pursuant to subdivision (a) to make contributions and receive service credit for time for which he or she claims credit because of public service shall contribute to the retirement fund, prior to the effective date of his or her retirement, by lump-sum payment or by installment payments over a period not to exceed 10 years, an amount equal to the sum of the following: (1) The contributions he or she would have made to the retirement fund if he or she had been a member during the same length of time as that for which he or she has elected to receive service credit, computed by applying the rate of contribution first applicable to him or her upon commencement of his or her membership in this system to the monthly compensation first earnable by him or her at the time, multiplied by the number of months for which he or she has elected to receive service credit for public service. (2) Interest at the current rate, as defined in Section 31641.51, from the date of his or her first membership in the system until the completion of payment of those contributions. (c) The governing body by a majority vote may provide that it shall make part of the contributions specified in paragraphs (1) and (2) of subdivision (b) on behalf of its members eligible to receive credit for public service under this section who so elect prior to filing an application for retirement. (d) A member who has elected to make the payment in installments may complete payment by lump sum at any time prior to the effective date of his or her retirement. Any contributions made by a member pursuant to this section shall be considered and administered as normal contributions by the member. (e) For purposes of this section, the following definitions shall apply: (1) Notwithstanding Section 31478, "public agency" means the United States of America, this state, or any department or agency of either, or any city, county, city and county, special district, or other public or municipal corporation or political subdivision that is within this state or is situated in whole or in part within a county. (2) Notwithstanding Sections 31479, 31479.2, and 31479.3, "public service" means service as a permanent career civilian federal firefighter or permanent career state firefighter in a position whose principal duties consist of active fire suppression or law enforcement, for which the officer or employee received compensation from the public agency, and with respect to which he or she is not entitled to receive credit in any retirement system supported wholly or in part by public funds after he or she becomes a member of this system. (f) This section shall apply only to a county or district beginning on the first day of the month after the board of supervisors for that county or the governing body of a district adopts a resolution, by majority vote, that provides that this section shall apply to the county or district. SEC. 5. Section 3.5 of this bill incorporates amendments to Section 31485.7 of the Government Code proposed by both this bill and Assembly Bill No. 2240. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2007, (2) each bill amends Section 31485.7 of the Government Code, and (3) this bill is enacted after Assembly Bill 2240, in which case Section 3 of this bill shall not become operative.