BILL NUMBER: AB 1626	CHAPTERED  08/01/08

	CHAPTER  212
	FILED WITH SECRETARY OF STATE  AUGUST 1, 2008
	APPROVED BY GOVERNOR  AUGUST 1, 2008
	PASSED THE SENATE  JULY 2, 2008
	PASSED THE ASSEMBLY  JULY 14, 2008
	AMENDED IN SENATE  JUNE 16, 2008
	AMENDED IN SENATE  MAY 19, 2008
	AMENDED IN ASSEMBLY  JUNE 6, 2007
	AMENDED IN ASSEMBLY  APRIL 9, 2007

INTRODUCED BY   Assembly Member Mullin

                        FEBRUARY 23, 2007

   An act to add Sections 31485.13, 31485.14, and 31485.15 to the
Government Code, relating to county employees' retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1626, Mullin. County employees' retirement: conformance with
federal law.
   The County Employees' Retirement Act of 1937 prescribes the
rights, benefits, and duties of members of the retirement systems
established pursuant to its provisions. Existing federal law
regulates the provision of pension benefits and a retirement system
providing pension benefits must meet prescribed requirements to
maintain its tax qualified status. Federal law requires, in this
regard, that a defined benefit plan prohibit the application of
forfeitures to increase the benefits any employee would otherwise
receive under the plan. Federal law also establishes requirements for
the distribution of benefits by a pension trust, including the
timing of those benefits and their form, and requirements for the
transfer of eligible rollover distributions.
   This bill would specify that a retirement system established
pursuant to the County Employees Retirement Act of 1937 shall act in
accordance with the requirements of federal law described above.



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

  SECTION 1.  Section 31485.13 is added to the Government Code, to
read:
   31485.13.  In accordance with Section 401(a)(8) of Title 26 of the
United States Code, a forfeiture of benefits under this chapter
shall not be applied to increase benefits that a member would
otherwise receive under this chapter.
  SEC. 2.  Section 31485.14 is added to the Government Code, to read:

   31485.14.  All distributions of benefits provide under this
chapter shall comply with the requirements of Section 401(a)(9) of
Title 26 of the United States Code that are applicable to public
employee plans, including, but not limited to, requirements relating
to the following:
   (a) The time that benefit payments begin, including benefit
payments paid after the death of a member.
   (b) The form of distribution of benefits.
   (c) Incidental death benefits.
  SEC. 3.  Section 31485.15 is added to the Government Code, to read:

   31485.15.  In accordance with Section 401(a)(31) of Title 26 of
the United States Code, a person who is entitled to a distribution
under this chapter that is an eligible rollover distribution may
elect to have all or a part of that distribution paid directly to an
eligible, specified plan, subject to terms and conditions established
by the board. If a person elects to have the eligible rollover
distribution paid to an eligible, specified plan, the payment, when
it is distributable, shall be made in the form of a direct
trustee-to-trustee transfer to the eligible retirement plan.