BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1136|
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                                 THIRD READING


          Bill No:  AB 1136
          Author:   Fong (D)
          Amended:  7/1/09 in Senate
          Vote:     21

           
           SENATE PUBLIC EMP. & RET. COMMITTEE  :  5-2, 6/22/09
          AYES:  Correa, Ducheny, Liu, Padilla, Wiggins
          NOES:  Ashburn, Benoit
           
          ASSEMBLY FLOOR  :  52-26, 6/1/09 - See last page for vote


           SUBJECT  :    County Employees Retirement Law of 1937 (37  
          Act):  
                      optional settlements

           SOURCE  :     California Retired County Employees Association


           DIGEST  :    This bill permits, upon adoption by a county  
          board of retirement, a retired member of a county  
          retirement system being operated under the 37 Act to change  
          previously elected optional survivor settlements, as  
          specified.

           ANALYSIS  :    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/her life and provide for a subsequent  
          payment to another party or parties, including a spouse. 

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          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  
          percent of his/her retirement allowance will be continued  
          throughout life to a surviving spouse to whom he/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,  
          allowed, 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. 

          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 on or before the date the  
                post-retirement spouse provision was made applicable  
                in the county from which they retired.

             B.    The member was unmarried or had been married less  
                than one year at the time of retirement.

          2. Requires the signature of the designated beneficiary, or  
             a written declaration of one or more of the following as  
             may be applicable to the member.

          3. Specifies that a person who knowingly provides false  
             information in the written declaration submitted  
             pursuant to the above shall be subject to a civil  
             penalty of not less than one thousand dollars ($1,000)  
             and not more than twenty-five thousand dollars  
             ($25,000), in addition to any civil remedies available  
             to the board. An action to impose a civil penalty  
             pursuant to this paragraph may be brought by any public  
             prosecutor in the name of the people of the state.

          4. Specifies that after revocation, the member's retirement  







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             allowance will be adjusted prospectively to the amount  
             he/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.

          5. Specifies that the spouse, after revocation, would be  
             entitled to any provisions for which he/she may qualify,  
             as if no optional settlement had been elected by the  
             member.

          6. Prohibits a retired member that has revoked an optional  
             settlement pursuant to these provisions from electing  
             other optional settlements.

          7. Specifies that the retirement system is under no  
             obligation to locate or otherwise contact retired  
             members who may qualify for these provisions.

          8. Specifies that any action taken pursuant to these  
             provisions does not excuse the obligation of a member to  
             provide a continuing benefit to a former spouse pursuant  
             to a court order.

          9. Specifies that these provisions will not become  
             effective in a county until adopted by the county board  
             of retirement.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  7/7/09)

          California Retired County Employees Association (source)
          American Federation of State, County and Municipal  
          Employees 
          American Federation of State, County and Municipal  
          Employees, Local 685 
          Association for Los Angeles Deputy Sheriffs
          Glendale City Employees Association
          Los Angeles Probation Officers' Union
          Organization of SMUD Employees 
          Peace Officers Research Association of California
          San Bernardino Public Employees Association
          San Luis Obispo County Employees Association







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          Santa Rosa City Employees Association 


           ARGUMENTS IN SUPPORT  :    According to the bill's 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."


           ASSEMBLY FLOOR  : 
          AYES:  Ammiano, Arambula, Beall, Blumenfield, Brownley,  
            Buchanan, Caballero, Charles Calderon, Carter, Chesbro,  
            Conway, Coto, Davis, De La Torre, De Leon, Eng, Evans,  
            Feuer, Fong, Fuentes, Furutani, Galgiani, Gilmore, Hall,  
            Hayashi, Hernandez, Hill, Huber, Huffman, Jones,  
            Krekorian, Lieu, Bonnie Lowenthal, Ma, Mendoza, Monning,  
            Nava, John A. Perez, V. Manuel Perez, Portantino, Price,  
            Ruskin, Salas, Saldana, Skinner, Solorio, Swanson,  
            Torlakson, Torres, Torrico, Yamada, Bass
          NOES:  Adams, Anderson, Bill Berryhill, Tom Berryhill,  
            Blakeslee, DeVore, Duvall, Emmerson, Fletcher, Fuller,  
            Gaines, Garrick, Hagman, Harkey, Jeffries, Knight, Logue,  
            Miller, Nestande, Niello, Nielsen, Silva, Smyth, Audra  
            Strickland, Tran, Villines
          NO VOTE RECORDED:  Block, Cook


          DLW:mw:n  7/8/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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