BILL NUMBER: SB 14 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 31, 2007
INTRODUCED BY Senator Negrete McLeod
( Coauthors: Assembly Members
DeVore, Dymally, and Strickland
)
DECEMBER 4, 2006
An act to amend Sections 20028, 20069, 20281.5, 20303, 20370,
20371, 20380, 20894, 20901, 20963, 20997, 21076, 21077, 22760, and
22772 of, and to add Sections 20039.5, 20326, 20327, 20380.5,
20772.5, 20772.6, 20966.5, 21029.5, 21052.5, 21070.7, 21117.5, and
31649.6 to, the Government Code, and to amend Sections 215, 228, and
256 of the Military and Veterans Code, relating to public employees'
retirement, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 14, as amended, Negrete McLeod. Retirement: military service.
(1) Existing law provides that specified state military personnel
become state members of the Public Employees' Retirement System when
they are placed on full-time active duty. Existing law generally
excludes part-time employees from membership in the retirement
system, subject to certain exceptions. Existing law authorizes state
and school members of the retirement system to receive up to 4 years
of service credit for prior military service, if those members pay
certain additional contributions to the retirement system. Member
contributions to the retirement system are deposited in the Public
Employees' Retirement Fund, a continuously appropriated fund.
This bill would provide that officers, warrant officers, and
enlisted personnel of the California National Guard shall, upon
written election filed with the Board of Administration of the Public
Employees' Retirement System, become state members of the retirement
system, and be referred to as National Guard members. The bill would
provide that employer contributions to the retirement fund for these
members would be paid by the member. The bill would also authorize
those members to receive service credit for their service in the
Armed Forces of the United States and prior service in the California
National Guard, as specified, if those members pay certain
additional contributions to the retirement system. The bill would
require the Military Department, if payment is requested by the Board
of Administration of the Public Employees' Retirement System, to
reimburse the retirement system for the administrative and program
costs of administering the membership and service credit of National
Guard members.
By increasing member contributions to the Public Employees'
Retirement Fund, the bill would make an appropriation.
(2) Existing law prohibits a member of the Public Employees'
Retirement System from receiving credit for the same service in 2
public retirement systems.
This bill would make that prohibition inapplicable to National
Guard members, as specified.
(3) Under existing law, if a member retires from both the Public
Employees' Retirement System and a reciprocal retirement system, the
member's highest final compensation from either system may be used to
calculate his or her retirement allowance if the member retires from
both systems concurrently.
This bill would prohibit a National Guard member from using his or
her final compensation under a reciprocal retirement system to
calculate a retirement benefit for the service of that National Guard
member with the California National Guard.
(4) Under existing law, state employees who become members of the
Public Employees' Retirement System after a certain date do not
immediately make contributions nor receive service credit for their
service during their first 24 months of employment.
This bill would permit a National Guard member to make
contributions and receive service credit in the system upon entry
into service with the California National Guard.
(5) Existing law permits the Governor, if it is in the best
interest of the state to encourage state employees to retire
resulting in cost savings to state agencies, to authorize that a
member of the Public Employees' Retirement System receive an
additional 2 years of service credit, as specified.
This bill would prohibit an employee from using his or her service
in the California National Guard or service as a National Guard
member to qualify for that additional 2 years of service credit.
(6) Existing law permits a member of the Public Employees'
Retirement System, if he or she retires within 4 months of separation
of employment, to receive service credit in the retirement system
for any unused sick leave he or she accumulated with his or her
employer, as specified.
This bill would prohibit a National Guard member from receiving
service credit in the Public Employees' Retirement System for any
unused sick leave earned as a National Guard member.
(7) The Public Employees' Medical and Hospital Care Act authorizes
the Board of Administration of the Public Employees' Retirement
System to contract with carriers for health benefit plans and major
medical plans for employees and annuitants, as specified, and approve
other specified plans.
This bill would prohibit a National Guard member from receiving
health care benefits under the Public Employees' Medical and Hospital
Care Act based on his or her service with the California National
Guard.
(8) The County Employees Retirement Law, upon approval by a county
board of supervisors, authorizes a member of a county or district
retirement system to receive service credit for time during which he
or she was absent from county service and serving in the Armed Forces
if, among other things, the military service is not the basis for
present or future military retirement pay.
This bill would authorize that member to receive that service
credit under specified conditions without regard to whether his or
her military service is the basis for present or future military
retirement pay.
(9) Existing law provides that members of the California National
Guard, California Air National Guard, and California National Guard
Reserve receive credit for time served on full-time active duty in
the Armed Forces of the United States or any reserve component as if
that service had been rendered in the state forces. That credit
applies to, among other things, computing length of state service for
military retirement with pay.
This bill would additionally permit those members to receive
credit for part-time duty or service.
(10) Existing law authorizes specified officers and enlisted
members on active duty with the Adjutant General who are not members
of the Public Employees' Retirement System to receive military
retirement with pay, as specified, based on a computation of state
service. However, inactive service in a reserve component of the
Armed Forces of the United States is excluded from that computation.
This bill would eliminate that exclusion.
(11) The bill would make related legislative findings and
declarations.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) The California National Guard is a military organization in
California that serves essential public safety purposes and routinely
supports local authorities in protecting the lives and property of
the people of the state during periods of natural disaster and civil
disturbance, and provides homeland security.
(b) The California National Guard has full-time civil support
teams whose primary purpose is to engage in public safety actions by
responding to actual or suspected incidents of terrorism in the
state. The civil support teams work closely with law enforcement,
fire, medical, and other emergency first responders to assist and
advise incident commanders, to train and conduct exercises in the
local communities, and to support public safety by ensuring adequate
and efficient responses to emergencies. The civil support teams
provide state-of-the-art public safety equipment and highly
specialized resources and are the lead element in the California
National Guard's response cycle for all hazardous incidents and
emergencies.
(c) It is the intent of the Legislature to further the public
purposes service by the California National Guard by providing
members of this organization with pension benefits provided to other
state miscellaneous members.
SEC. 2. Section 20028 of the Government Code is amended to read:
20028. "Employee" means all of the following:
(a) Any person in the employ of the state, a county superintendent
of schools, or the university whose compensation, or at least that
portion of his or her compensation that is provided by the state, a
county superintendent of schools, or the university, is paid out of
funds directly controlled by the state, a county superintendent of
schools, or the university, excluding all other political
subdivisions, municipal, public and quasi-public corporations. "Funds
directly controlled by the state" includes funds deposited in and
disbursed from the State Treasury in payment of compensation,
regardless of their source.
(b) Any person in the employ of any contracting agency.
(c) City employees who prior to the effective date of the contract
with the hospital are assigned to a hospital that became a
contracting agency because of subdivision (p) of Section 20057 shall
be deemed hospital employees from and after the effective date of the
contract with the hospital for retirement purposes. City employees
who after the effective date of the contract with the hospital become
employed by the hospital, shall be considered as new employees of
the hospital for retirement purposes.
(d) Any person in the employ of a school employer.
(e) Public health department or district employees who were
employees prior to the date of assumption of the contract by the
governing body of a county of the 15th class shall be deemed public
health department or district employees from and after the effective
date of assumption of the contract for retirement purposes. Employees
who after the effective date of assumption of the contract become
employed by the public health department or district shall be
considered as new employees for retirement purposes.
(f) Officers, warrant officers, and enlisted personnel of the
California National Guard not otherwise described in subdivision (a)
rendering service authorized by Title 32 of the United States Code.
SEC. 3. Section 20039.5 is added to the Government Code, to read:
20039.5. Notwithstanding Article 5 (commencing with Section
20350) of Chapter 3, or any other provision of this part, "final
compensation" for the purposes of determining any pension or benefit
for service with the California National Guard with respect to a
National Guard member means the highest average annual compensation
that was earned while rendering service with the California National
Guard. The final compensation of a National Guard member under
another retirement or pension system shall not apply to the
calculation of his or her retirement allowance with respect to
service with the California National Guard.
SEC. 4. Section 20069 of the Government Code is amended to read:
20069. (a) "State service" means service rendered as an employee
or officer (employed, appointed, or elected) of the state, the
California Institute for Regenerative Medicine and the officers and
employees of its governing body, the university, a school employer,
or a contracting agency, for compensation, and only while he or she
is receiving compensation from that employer therefor, except as
provided in Article 4 (commencing with Section 20990) of Chapter 11.
(b) "State service," solely for purposes of qualification for
benefits and retirement allowances under this system, shall also
include service rendered as an officer or employee of a county if the
salary for the service constitutes compensation earnable by a member
of this system under Section 20638.
(c) "State service" shall also include compensated service
rendered by an officer, warrant officer, or a person of the enlisted
ranks of the California National Guard who has elected to become a
member pursuant to Section 20326 and who has not canceled his or her
membership pursuant to Section 20327.
SEC. 5. Section 20281.5 of the Government Code is amended to read:
20281.5. (a) Notwithstanding Section 20281, a person who becomes
a state miscellaneous member other than a National Guard member or
state industrial member of the system on or after the effective date
of this section because the person is first employed by the state and
qualifies for membership shall be subject to the provisions of this
section.
(b) Members subject to this section shall not accrue credit for
service in the system and shall not make employee contributions to
the system, including the contributions set forth in Section 20677.4,
for employment with the state until the first day of the first pay
period commencing 24 months after becoming a member of the system.
(c) Notwithstanding subdivision (a), this section shall not apply
to any of the following:
(1) Persons who are already members or annuitants of the system at
the time they are first employed by the state.
(2) Employees of the California State University, or the
legislative or judicial branch of state government.
(3) Members of the Judges' Retirement System, the Judges'
Retirement System II, the Legislators' Retirement System, the State
Teachers' Retirement System, or the University of California
Retirement Plan.
(4) Persons who are members of a reciprocal retirement system and
whose employment was subject to a reciprocal retirement system within
the six months prior to membership in this system.
(5) Persons whose service is not included in the federal system.
(6) Persons who are employed by the Department of the California
Highway Patrol as students at the department's training school
established pursuant to Section 2262 of the Vehicle Code.
(7) Persons who had ceased to be members pursuant to Section 20340
or 21075.
(d) A separation of employment does not alter the 24-month period
described by subdivision (b). A member who separates from state
employment shall remain subject to this section if he or she returns
to state employment as a state miscellaneous or state industrial
member within that 24-month period.
(e) Any regulations adopted by the board to implement the
requirements of this section shall not be subject to the review and
approval of the Office of Administrative Law, pursuant to Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3. The
regulations shall become effective immediately upon filing with the
Secretary of State.
SEC. 6. Section 20303 of the Government Code is amended to read:
20303. (a) Persons who are members of any other retirement or
pension system supported wholly or in part by funds of the United
States government, any state government, or any political subdivision
thereof and who are receiving credit in the other system for service
are, as to that service, excluded from this system.
(b) (1) For the purpose of this section only, persons who are
receiving pensions, retirement allowances, or other payments, from
any source whatever, because of service rendered to an employer other
than the state and while they were not in state service, are not,
because of that receipt, members of any other retirement or pension
system.
(2) For the purposes of this section only, persons who participate
in a deferred compensation plan established pursuant to Chapter 4
(commencing with Section 19993) or Chapter 8.6 (commencing with
Section 19999.3) of Part 2.6 or pursuant to Article 1.1 (commencing
with Section 53212) of Chapter 2 of Part 1 of Division 2 of Title 5,
are not, because of that participation, members of any other
retirement or pension system.
(3) For the purposes of this section only, persons who participate
in a money purchase pension plan and trust that meets the
requirements of Section 401(a) of Title 26 of the United States Code
are not, because of that participation, members of any other
retirement or pension system, so long as the contracting agency has
received a ruling from the Internal Revenue Service stating that the
money purchase pension plan and trust qualifies under Section 401(a)
and furnishes proof thereof upon request by the board.
(4) For the purposes of this section only, persons who participate
in a supplemental defined benefit plan maintained by their employer
that meets the requirements of Section 401(a) of Title 26 of the
United States Code are not, because of that participation, members of
another retirement or pension system, provided that all of the
following conditions exist:
(A) The defined benefit plan provided under this part has been
designated as the employer's primary plan for the person.
(B) The supplemental defined benefit plan has received a ruling
from the Internal Revenue Service stating that the plan qualifies
under Section 401(a) of Title 26 of the United States Code, and has
furnished proof thereof to the employer and, upon request, to the
board.
(C) The person's participation in the supplemental defined benefit
plan does not, in any way, interfere with the person's rights to
membership in the defined benefit plan, or any benefit provided,
under this part.
(5) For purposes of this section only, a person who elects
membership pursuant to Section 20326 is deemed, with respect to
service with the California National Guard, not to be a member of any
other retirement or pension system.
SEC. 7. Section 20326 is added to the Government Code, to read:
20326. (a) Notwithstanding Section 20305, officers, warrant
officers, and enlisted personnel of the California National Guard who
are not members pursuant to Section 20282 are excluded from
membership in this system unless those officers, warrant officers,
and enlisted personnel file a written election with the board to
become a member.
(b) The Military Department shall report to the board any
employment and other information requested by the board for purposes
of this section.
SEC. 8. Section 20327 is added to the Government Code, to read:
20327. (a) Notwithstanding any other provision of this part, a
National Guard member may, at any time and on a prospective basis,
cancel his or her election of membership in this system by filing a
written notice of cancellation with the board.
(b) If a National Guard member cancels his or her election of
membership, that National Guard member shall not be required to pay
contributions as described in Section 20772.5, effective as of the
date the written notice of cancellation was filed with the board.
(c) A National Guard member may only elect to cancel his or her
membership pursuant to this section one time.
(d) This section shall remain operative until subsequent
provisions of law delete the requirement that National Guard members
pay the employer contributions as a condition of membership in this
system.
SEC. 9. Section 20370 of the Government Code is amended to read:
20370. (a) "Member" means an employee who has qualified for
membership in this system and on whose behalf an employer has become
obligated to pay contributions.
(b) "State member" includes:
(1) State miscellaneous members.
(2) University members.
(3) Patrol members.
(4) State safety members.
(5) State industrial members.
(6) State peace officer/firefighter members.
(7) National Guard members as defined in Section 20380.5.
(c) "Local member" includes:
(1) Local miscellaneous members.
(2) Local safety members.
(d) "School member" includes all employees within the jurisdiction
of a school employer, other than local police officers, school
safety members and members included in a risk pool.
SEC. 10. Section 20371 of the Government Code is amended to read:
20371. "Member classification" means either of the following:
(a) Miscellaneous member classification, which includes state
miscellaneous members, National Guard members, university members,
local miscellaneous members, state industrial members, and school
members.
(b) Safety member classification, which includes patrol members,
state peace officer/firefighter members, state safety members, and
local safety members.
SEC. 11. Section 20380 of the Government Code is amended to read:
20380. "State miscellaneous member" includes all members employed
by the state and university, except National Guard, industrial,
patrol, state peace officer/firefighter, and state safety members.
SEC. 12. Section 20380.5 is added to the Government Code, to read:
20380.5. "National Guard member" means a person who elects to
become a member of this system as described in Section 20326. Except
as otherwise provided, the provisions of this part applicable to
state miscellaneous members shall apply to National Guard members.
SEC. 13. Section 20772.5 is added to the Government Code, to read:
20772.5. (a) Notwithstanding any other provision of this part, a
National Guard member shall contribute to the retirement fund at the
rate applicable to state miscellaneous members and applied to the
compensation earned by him or her during the period or periods of
contribution. In addition to the normal rate of contribution provided
in Section 20677.4, a National Guard member shall also pay the
employer contribution, at the rate established in Section 20814,
attributable to the service of that member. All contributions
described in this section will be deposited in the account of the
National Guard member and administered as normal contributions of
that member.
(b) (1) The Military Department shall notify the member of his or
her total rate of contributions and the amount of the monthly
contribution payable by him or her to the retirement fund. The member
shall transmit his or her contribution with respect to the service
described in the notice by the Military Department. The Military
Department shall transmit the contributions to the system as
described in rules and regulations adopted by the board.
(2) If the member fails to pay the contribution within one month
after receipt of the notice, the amount of contribution due shall
accrue interest, at the rate described in Section 20059, as
calculated by the Military Department, with interest to be added to
the amount owed for the subsequent month. The system shall not be
obligated to attempt to collect any delinquent payments. A member may
not be credited with service under this part until the contribution
with respect to that service, plus any accrued interest, is paid in
full.
(c) The Military Department shall periodically furnish to the
board a list of the members subject to this section.
SEC. 14. Section 20772.6 is added to the Government Code, to read:
20772.6. Under conditions established by the board, the system
may periodically bill the Military Department for reimbursement of
the administrative and program costs of administering the membership
and service credit of National Guard members.
SEC. 15. Section 20894 of the Government Code is amended to read:
20894. (a) A person shall not receive credit for the same service
in two retirement systems supported wholly or in part by public
funds under any circumstance.
(b) Nothing in this section shall preclude concurrent
participation and credit for service in a public retirement system
and in a deferred compensation plan established pursuant to Chapter 4
(commencing with Section 19993) or Chapter 8.6 (commencing with
Section 19999.3) of Part 2.6 or pursuant to Article 1.1 (commencing
with Section 53212) of Chapter 2 of Part 1 of Division 2 of Title 5,
a tax-deferred retirement plan that meets the requirements of Section
40l(k) of Title 26 of the United States Code, or a money purchase
pension plan and trust that meets the requirements of Section 401(a)
of Title 26 of the United States Code.
(c) Nothing in this section shall preclude concurrent
participation and credit for service in the defined benefit plan
provided under this part and in a supplemental defined benefit plan
maintained by the employer that meets the requirements of Section 401
(a) of Title 26 of the United States Code, provided all of the
following conditions exist:
(1) The defined benefit plan provided under this part has been
designated as the employer's primary plan for the person.
(2) The supplemental defined benefit plan has received a ruling
from the Internal Revenue Service stating that the plan qualifies
under Section 401(a) of Title 26 of the United States Code, and has
furnished proof thereof to the employer and, upon request, to the
board.
(3) The person's participation in the supplemental defined benefit
plan does not, in any way, interfere with the person's rights to
membership in the defined benefit plan, or any benefit provided,
under this part.
(d) For purposes of this section only, a person who elects to
purchase service as described in Section 21029.5 for his or her
service with the California National Guard is deemed not to receive
credit for the same service in two retirement systems supported
wholly or in part by public funds.
SEC. 16. Section 20901 of the Government Code is amended to read:
20901. (a) Notwithstanding any other provisions of this part, if
the Governor, by executive order, determines that because of an
impending curtailment of, or change in the manner of, performing
service, the best interests of the state would be served by
encouraging the retirement of state employees, and that sufficient
economies could be realized to offset any cost to state agencies
resulting from this section, an additional two years of service shall
be credited to state members, other than school members, if the
following conditions exist:
(1) The member meets the service requirements of Section 21060 or
21074 and retires during a period not to exceed 120 days or less than
60 days commencing no sooner than the date of issuance of the
Governor's executive order which shall specify the period. For
purposes of this paragraph, the service requirements of Sections
21060 and 21074 shall not include service as a National Guard member
or service purchased pursuant to Section 21029.5.
(2) The appointing power, as defined in Section 18524, or the
Regents of the University of California or the Trustees of the
California State University, transmits to the retirement fund an
amount determined by the board that is equal to the actuarial
equivalent of the difference between the allowance the member
receives after the receipt of service credit under this section and
the amount the member would have received without that service
credit. The transfer to the retirement fund shall be made in a manner
and time period acceptable to the employer and the board.
(3) The appointing power or the regents or the trustees determines
that it is electing to exercise the provisions of this section,
pursuant to the Governor's order, and certifies to the Department of
Finance and to the Legislative Analyst's Office, as to the specific
economies that will be realized were the additional service credit
towards retirement granted.
(b) As used in this section, "member" means a state employee who
is employed in a job classification, department, or other
organizational unit designated by the appointing power, as defined in
Section 18524, the Regents of the University of California, or the
Trustees of the California State University.
(c) The amount of service credit shall be two years regardless of
credited service, but shall not exceed the number of years
intervening between the date of the member's retirement and the date
the member would be required to be retired because of age. The
appointing power or the regents or the trustees shall make the
payment with respect to all eligible employees who retired pursuant
to this section.
(d) Any member who qualifies under this section, upon subsequent
reentry to this system shall forfeit the service credit acquired
under this section.
(e) This section shall not apply to any member otherwise eligible
if the member receives any unemployment insurance payments arising
out of employment with an employer subject to this part during a
period extending one year beyond the date of issuance of the
executive order or if the member is not eligible to retire without
the additional credit available under this section.
(f) (1) The benefit provided by this section shall not be
applicable to the employees of any appointing power or the regents or
the trustees until the Director of Finance approves the transmittal
of funds by that appointing power or the regents or the trustees to
the retirement fund pursuant to subdivision (c)
paragraph (3) of subdivision (a) .
(2) The Director of Finance shall approve the transmittal of funds
by the appointing power or the regents or the trustees not sooner
than 30 days after notification in writing of the necessity therefor
to the chairperson of the committee in each house that considers
appropriations and the Chairperson of the Joint Legislative Budget
Committee, or not sooner than such lesser time as the chairperson of
the committee, or his or her designee, may in each instance
determine. If there is any written communication between the Director
of Finance and the Legislative Analyst, a copy thereof shall be
immediately transmitted to the chairperson of each appropriate policy
committee.
SEC. 17. Section 20963 of the Government Code is amended to read:
20963. (a) A state, school, or school safety member, whose
effective date of retirement is within four months of separation from
employment with the employer subject to this section that granted
the sick leave credit, shall be credited at his or her retirement
with 0.004 year of service credit for each unused day of sick leave
certified to the board by the employer. The certification shall
report only those days of unused sick leave that were accrued by the
member during the normal course of his or her employment and shall
not include any additional days of sick leave reported for the
purpose of increasing the member's retirement benefit. Reports of
unused days of sick leave shall be subject to audit and retirement
benefits may be adjusted where improper reporting is found. For
purposes of this subdivision, sick leave shall not include sick leave
earned as a National Guard member as described in Section 20380.5.
(b) Until receipt of certification from an employer concerning
unused sick leave, the board may pay an estimated allowance pursuant
to this section. At the time of receipt of the certification, the
allowance shall be adjusted to reflect any necessary changes.
(c) Notwithstanding any other provisions of this part, this
section shall not apply to local members other than local
miscellaneous members employed before July 1, 1980, by a school
district that is a contracting agency or those school safety members
employed before July 1, 1980, by a contracting agency that is a
school district or community college district, as defined in
subdivision (i) of Section 20057.
(d) This section shall not apply to any of the following:
(1) A person who becomes a school member on and after July 1,
1980, and any person who becomes a local member employed, on and
after July 1, 1980, by a school district that is a contracting agency
whether or not the person was ever a school member or local member
prior to that date.
(2) A state employee, with respect to sick leave credits earned as
a state member under Section 21353.5, except that the member shall
be entitled to receive credit under this section for the sick leave
he or she has earned as a state member subject to any other
retirement formula, provided the member has a sick leave credit
balance remaining at the time of retirement.
(e) For the purposes of this section, sick leave benefits provided
to state employees pursuant to the state sick leave system shall be
construed to mean compensation paid to employees on approved leaves
of absence because of sickness.
SEC. 18. Section 20966.5 is added to the Government Code, to read:
20966.5. For purposes of Sections 20326 and 21029.5, each day of
compensated service with the California National Guard or service by
a National Guard member authorized by Title 10 of the United State
Code shall count as one day of service and shall be credited in each
fiscal year based on the ratio that service bears to 215 days.
SEC. 19. Section 20997 of the Government Code is amended to read:
20997. (a) Notwithstanding any other provision of this part, for
each member other than a National Guard member absent without
compensation due to military service pursuant to Section 20990, the
employer shall contribute an amount equal to the contributions that
would have been made by the employer and the employee during the
absence. The employer's contribution pursuant to this section shall
be based upon the member's compensation earnable and the contribution
rates in effect at the commencement of the absence, if any of the
following apply:
(1) The member returns to state service within six months after
receiving a discharge from military service other than dishonorable.
(2) The member returns to state service within six months after
completion of any period of rehabilitation offered by the United
States government, except that for purposes of this section,
rehabilitation solely for education purposes shall not be considered.
(3) The member is granted a leave of absence from the state
employer as of the same date the member was reinstated to that
employment from military service, provided that the member
returns to state service at the
conclusion of the leave.
(4) The member is placed on a state civil service reemployment
list within six months after receiving a discharge from military
service other than dishonorable and returns to state service upon
receipt of an offer of reemployment.
(5) The member retires from this system for service or disability
during the course of an absence from state service for military
service.
(6) The member dies during the course of an absence from state
service for military service.
(b) Any member on leave from state service for military service
who elects to continue contributing to this system shall be entitled
to a refund of those contributions upon request.
(c) Any member who withdrew contributions during or in
contemplation of his or her military service is entitled to the
benefits of this section irrespective of whether the contributions
are redeposited. The rate for future contributions for the member
shall be based upon the member's age at the time the member commenced
a leave of absence from state service for service in the military.
(d) The employer's contribution pursuant to this section may be
made either in lump sum, or it may be included in its monthly
contribution as adjusted by inclusion of the amount due in the
employer rate at the valuation most near in time to the event causing
the employer's liability for those contributions. The employer's
contributions pursuant to this section shall be used solely for the
purpose of paying retirement and death benefits and shall not be paid
to the member whose contributions are refunded to him or her
pursuant to Section 20735.
SEC. 20. Section 21029.5 is added to the Government Code, to read:
21029.5. (a) "Public service" with respect to a state member also
means all periods of service rendered as an officer, warrant
officer, or a person in the enlisted ranks of the California National
Guard prior to electing membership in this system pursuant to
Section 20326. "Public service" also means an officer, warrant
officer, or a person in the enlisted ranks of the California National
Guard rendering service authorized by Title 10 of the United States
Code. Public service may not be granted if the service described in
this section was terminated by a discharge under other than honorable
conditions.
(b) A member who elects to purchase service credit for public
service under this section shall pay the contributions described in
Sections 21050 and 21052.
SEC. 21. Section 21052.5 is added to the Government Code, to read:
21052.5. A person who is solely a National Guard member or who
retires from membership in this system solely as a National Guard
member may elect to receive service credit under either of the
following:
(a) The National Guard member elects to receive service credit
pursuant to Section 20750, 20751, 20751.5, or 20753.
(b) The National Guard member elects to receive service credit
pursuant to a provision that requires the member to pay contributions
as described in Sections 21050 and 21052.
SEC. 22. Section 21070.7 is added to the Government Code, to read:
21070.7. Notwithstanding any other provision of this part,
Sections 21076 and 21077 shall not apply to service with the
California National Guard or service as a National Guard member
regardless of any prior membership status or previous election made.
SEC. 23. Section 21076 of the Government Code is amended to read:
21076. (a) The service retirement allowance for a state
miscellaneous or state industrial member who has elected the benefits
of this section is a pension equal to the fraction of one-hundredth
of the member's final compensation set forth opposite the member's
age at retirement, taken to the preceding completed quarter year in
the following table, multiplied by the member's number of years of
state miscellaneous service:
Age at
Retirement Fraction
50 .5000
50 1/4 .5125
50 1/2 .5250
50 3/4 .5375
51 .5500
51 1/4 .5625
51 1/2 .5750
51 3/4 .5875
52 .6000
52 1/4 .6125
52 1/2 .6250
52 3/4 .6375
53 .6500
53 1/4 .6625
53 1/2 .6750
53 3/4 .6875
54 .7000
54 1/4 .7125
54 1/2 .7250
54 3/4 .7375
55 .7500
55 1/4 .7625
55 1/2 .7750
55 3/4 .7875
56 .8000
56 1/4 .8125
56 1/2 .8250
56 3/4 .8375
57 .8500
57 1/4 .8625
57 1/2 .8750
57 3/4 .8875
58 .9000
58 1/4 .9125
58 1/2 .9250
58 3/4 .9375
59 .9500
59 1/4 .9625
59 1/2 .9750
59 3/4 .9875
60 1.0000
60 1/4 1.0125
60 1/2 1.0250
60 3/4 1.0375
61 1.0500
61 1/4 1.0625
61 1/2 1.0750
61 3/4 1.0875
62 1.1000
62 1/4 1.1125
62 1/2 1.1250
62 3/4 1.1375
63 1.1500
63 1/4 1.1625
63 1/2 1.1750
63 3/4 1.1875
64 1.2000
64 1/4 1.2125
64 1/2 1.2250
64 3/4 1.2375
65 1.2500
(b) This section shall not apply to a National Guard member.
SEC. 24. Section 21077 of the Government Code is amended to read:
21077. (a) The service retirement allowance for a state
miscellaneous or state industrial member who elects to be subject to
this section shall be: the sum of the allowance for service rendered
under the Second Tier retirement formula, computed pursuant to
Section 21076, added to the allowance for service rendered as a state
miscellaneous or state industrial member covered under the First
Tier formula, computed pursuant to Section 21353 or 21354.1, as
applicable.
(b) This section shall not apply to a National Guard member.
SEC. 25. Section 21117.5 is added to the Government Code, to read:
21117.5. Notwithstanding any other provision of law, a person who
is solely a National Guard member shall not be partially retired for
service, nor shall service with the California National Guard be
used to qualify for benefits as described in Section 21117.
SEC. 26. Section 22760 of the Government Code is amended to read:
22760. "Annuitant" means:
(a) A person, other than a National Guard member defined in
Section 20380.5, who has retired within 120 days of separation from
employment and who receives a retirement allowance under any state or
University of California retirement system to which the state was a
contributing party.
(b) A surviving family member receiving an allowance in place of
an annuitant who has retired as provided in subdivision (a), or as
the survivor of a deceased employee under Section 21541, 21546,
21547, or 21547.7, or similar provisions of any other state
retirement system.
(c) A person who has retired within 120 days of separation from
employment with a contracting agency as defined in Section 22768 and
who receives a retirement allowance from the retirement system
provided by the employer, or a surviving family member who receives
the retirement allowance in place of the deceased.
(d) A judge who receives the benefits provided by subdivision (e)
of Section 75522.
(e) A person who was a state member for 30 years or more and who,
at the time of retirement, was a local member employed by a
contracting agency.
(f) A Member of the Legislature or an elective officer of the
state whose office is provided by the California Constitution, who
has at least eight years of credited service, and who meets the
following conditions:
(1) Permanently separates from state service on or after January
1, 1988, and not more than 10 years before or 10 years after his or
her minimum age for service retirement, or is an inactive member of
the Legislators' Retirement System pursuant to Section 9355.2.
(2) Receives a retirement allowance under a state retirement
system supported in whole or in part by state funds other than the
University of California Retirement System.
(g) An exempt employee who meets all of the following conditions:
(1) Has at least 10 years of credited state service that includes
at least two years of credited service while an exempt employee.
(2) Permanently separates from state service on or after January
1, 1988, and not more than 10 years before or 10 years after his or
her minimum age for service retirement.
(3) Receives a retirement allowance under a state retirement
system supported in whole or in part by state funds other than the
University of California Retirement System.
(h) A person receiving a survivor allowance pursuant to Article 3
(commencing with Section 21570) of Chapter 14 of Part 3 provided that
he or she was eligible to enroll in a health benefit plan on the
date of the member's death, on whose account the survivor allowance
is payable.
(i) (1) A family member of a deceased retired member of the State
Teachers' Retirement Plan, if the deceased member meets the following
conditions:
(A) Retired within 120 days of separation from employment.
(B) Retired before the member's school employer elected to
contract for health benefit coverage under this part.
(C) Prior to his or her death, received a retirement allowance
that did not provide for a survivor allowance to family members.
(2) The family member shall elect coverage as an annuitant within
one calendar year from the date that the deceased member's school
employer elected to contract for health benefit coverage under this
part.
SEC. 27. Section 22772 of the Government Code is amended to read:
22772. (a) "Employee" means:
(1) An officer or employee of the state or of any agency,
department, authority, or instrumentality of the state, including the
University of California.
(2) An employee who is employed by a contracting agency,
including, but not limited to, an officer or official of a
contracting agency if the officer or official participates in the
retirement system provided by the employer.
(3) An annuitant receiving a retirement allowance pursuant to
Section 21228 who is employed by a contracting agency.
(4) A teaching associate, lecturer, coach, or interpreter employed
by the California State University who is appointed to work in an
academic year classification for at least six weighted teaching units
for one semester, or for at least six weighted teaching units for
two or more consecutive quarter terms. This paragraph does not apply
to a state member employed by the California State University, unless
provided for in a memorandum of understanding reached pursuant to
Chapter 12 (commencing with Section 3560) of Division 4 of Title 1 or
authorized by the Trustees of the California State University for
employees excluded from collective bargaining.
(5) All employees in job classes specified in subdivision (a) of
Section 14876.
(b) Except as otherwise provided by this part, "employee" does not
include any of the following:
(1) A person employed on an intermittent, irregular, or less than
half-time basis, or an employee similarly situated.
(2) A National Guard member described in Section 20380.5.
SEC. 28. Section 31649.6 is added to the Government Code, to read:
31649.6. (a) Notwithstanding Section 31649 or 31649.5, a member
who resigned from county service, or who obtained a leave of absence
from county service, to enter and did enter the Armed Forces of the
United States on a voluntary or involuntary basis and who then
returned to county service within one year after separation from the
Armed Forces under honorable conditions, shall receive credit for
service and prior service for all or any part of his or her military
service, if, before retirement from the county, he or she contributes
what he or she would have paid to the fund based on his or her
compensation earnable pursuant to Section 31461 at the time he or she
resigned or obtained the leave of absence, together with regular
interest thereon.
(b) This section shall not be operative in any county until the
board of supervisors, by resolution, makes this section applicable in
the county.
SEC. 29. Section 215 of the Military and Veterans Code is amended
to read:
215. For all purposes under this code, commissioned officers,
warrant officers and enlisted men and women of the California
National Guard, California Air National Guard, and California
National Guard Reserve who have heretofore or hereafter performed
service in the United States Army, United States Air Force, United
States Navy, or a reserve component thereof shall be entitled to
credit for time so served as if that service had been rendered in the
state forces. Service in the state forces shall include all
full-time active duty and part-time duty performed heretofore or
hereafter either as an enlisted man or woman, warrant officer or
commissioned officer pursuant to any prior or present section or
sections or provisions of this code. Federal law notwithstanding, in
computing state service for retirement with pay under this authority,
full-time active service and part-time duty or service with the
Armed Forces of the United States or any reserve component thereof
shall be considered.
SEC. 30. Section 228 of the Military and Veterans Code is amended
to read:
228. (a) A commissioned or warrant officer of the California
National Guard who has served 20 years in the active service of the
state may, on application, in the discretion of the Governor, be
retired. Service in the United States Army, United States Air Force,
United States Navy, or any reserve component thereof is considered
state service in computing length of state service for the purposes
of this section.
(b) Upon application made within one year of retirement, the
officer may, in the discretion of the Governor, be granted an
honorary advancement to the next grade above that held on the date of
application for retirement. The Adjutant General shall adopt
regulations governing the application procedure, qualifications
required, and rights and privileges in connection with honorary
post-retirement promotions under this subdivision. If recalled to
either state or federal active service, a person honorarily promoted
under this subdivision shall return to duty in that grade specified
by federal law or regulations applicable to the person.
(c) Commissioned and warrant officers on active duty with the
office of the Adjutant General pursuant to Section 167 who are not
members of the Public Employees' Retirement System and who have been
on active duty with the office of the Adjutant General for a total of
10 years shall, on application, be retired in accordance with the
federal law and regulations which on the date of application govern
the retirement of commissioned and warrant officers of the reserve
components of the Army of the United States on extended active duty.
Retirement from state active duty with the office of the Adjutant
General does not prohibit a person from active service in the
California National Guard. In these cases, the length of service
shall be computed as provided in this section and Section 215.
SEC. 31. Section 256 of the Military and Veterans Code is amended
to read:
256. (a) An enlisted member of the California National Guard who
has served 20 years in the active service of the state may, on
application, in the discretion of the Governor, be retired. Service
in the United States Army, United States Air Force, United States
Navy, or any reserve component thereof shall be considered as state
service in computing length of state service for the purposes of this
section.
(b) Upon application made within one year of retirement, the
person may, in the discretion of the Governor, be granted an honorary
advancement to the next rank above that held on the date of
application for retirement. The Adjutant General shall adopt
regulations governing the application procedure, qualifications
required, and rights and privileges in connection with honorary
post-retirement promotions. If recalled to either state or federal
active service, a person honorarily promoted under this subdivision
shall return to duty in that rank specified by federal law or
regulations applicable to the person.
(c) An enlisted member on active duty with the office of the
Adjutant General pursuant to Section 167 who is not a member of the
Public Employees' Retirement System and who has been on active duty
with the office of the Adjutant General for a total of 10 years
shall, on application, be retired in accordance with the federal law
and regulations which on the date of application govern the
retirement of enlisted members of the reserve components of the Army
of the United States on extended active duty. In these cases, the
length of service shall be computed as provided in this section and
Section 215.