BILL ANALYSIS
AB 1136
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Date of Hearing: May 6, 2009
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL
SECURITY
Ed Hernandez, Chair
AB 1136 (Fong) - As Introduced: February 27, 2009
SUBJECT : County employees' retirement: optional settlements.
SUMMARY : Permits, upon adoption by a county board of
retirement, a retired member of a county retirement system being
operated under the County Employees' Retirement Law of 1937 ('37
Act) to change previously elected optional settlements, as
specified. Specifically, this bill :
1)Allows a '37 Act retired member, in order to provide for his
or her spouse, to revoke an optional settlement, as specified,
if both of the following apply:
a) The member retired prior to the date the retirement
board made optional settlements 1 through 4 applicable in
the county.
b) The member was unmarried or had been married less than
one year at the time of retirement.
2)Specifies that after revocation, the member's retirement
allowance will be adjusted prospectively to the amount he or
she would have been entitled to had they not elected an option
and to reflect any cost-of-living increases that would have
been added to the retirement allowance.
3)Specifies that the spouse, after revocation, would be entitled
to any provisions for which he or she may qualify, as if no
optional settlement had been elected by the member.
4)Prohibits a retired member that has revoked an optional
settlement pursuant to these provisions from electing other
optional settlements.
5)Specifies that the retirement system is under no obligation to
locate or otherwise contact retired members who may qualify
for these provisions.
6)Specifies that any action taken pursuant to these provisions
AB 1136
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does not excuse the obligation of a member to provide a
continuing benefit to a former spouse pursuant to a court
order.
7)Specifies that these provisions will not become effective in a
county until adopted by the county board of retirement.
EXISTING LAW permits a member of a '37 Act retirement system,
prior to the first payment of any retirement allowance, to elect
certain optional settlements, which reduce the allowance payable
to the member through his or her life and provide for a
subsequent payment to another party or parties, including a
spouse.
Upon the death of a '37 Act member who died after a service
retirement or non-service related disability and did not elect
an optional settlement, an allowance equaling 60% of his or her
retirement allowance will be continued throughout life to a
surviving spouse to whom he or she was married to for at least
one year prior to the effective date of retirement.
AB 979 (Negrete McLeod), Chapter 441, Statutes of 2004, allows,
upon adoption by a county board of supervisors, retired '37 Act
members, who marry after retirement, to purchase, at no cost to
the retirement system, an optional survivor benefit in order to
increase the survivor benefit that would be paid to their new
spouse if the member dies first.
FISCAL EFFECT : Unknown.
COMMENTS : According to the sponsor, the California Retired
County Employees Association, "This bill is of importance to
older retirees in counties where the retirement plan was
established under the '37 Act. In their case, they might have
selected a particular retirement option provided under the '37
Act because what is commonly referred to as the 'post-retirement
spouse provision' had not yet been made applicable in their
county. In fact, the 'post-retirement spouse provision' may not
have even been a part of the '37 Act at the time they retired.
This bill will enable them to avail themselves of this provision
if their life circumstances have changed since retirement."
REGISTERED SUPPORT / OPPOSITION :
Support
AB 1136
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California Retired County Employees Association (Sponsor)
Association for Los Angeles Deputy Sheriffs
Los Angeles Probation Officers' Union, AFSCME, Local 685
Peace Officer's Research Association of California
Opposition
None on file
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957