BILL NUMBER: AB 1354	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Fong

                        FEBRUARY 27, 2009

   An act to amend Section 31538 of the Government Code, relating to
county employees' retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1354, as introduced, Fong. County employees' retirement:
cost-of-living adjustments.
   The County Employees' Retirement Law of 1937 (CERL) provides that
the management of a retirement system created pursuant to its
provisions is vested in a board of retirement. CERL requires that the
board of retirement adjust the payment of benefits payable pursuant
to the law's provisions, including cost-of-living adjustments, as
necessary, in order to maximize the benefits available to members who
are subject to specified limits of the Internal Revenue Code.
   This bill would prohibit the amount payable to a CERL retirement
system member in a limitation year from exceeding the Internal
Revenue Code limit as of the annuity starting date and as the limit
may be increased in future years, as specified. The bill would
specify that cost-of-living adjustments made to Internal Revenue Code
limits continue to apply after a member's severance from employment
or annuity starting date.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 31538 of the Government Code is amended to
read:
   31538.   (a)    The board shall adjust the
payment of benefits payable pursuant to this part, as necessary, in
order to maximize the benefits available to members who are subject
to the limits of Section 415 of the Internal Revenue Code. Those
adjustments shall include, but are not limited to, cost-of-living
adjustments, cost-of-living banks, temporary annuities, survivor
continuance benefits, or any combinations thereof. 
   (b) The amount payable to a member in any limitation year,
including cost-of-living adjustments, shall not exceed the limit
established under Section 415(b) of the Internal Revenue Code at the
annuity starting date, and as may be increased in subsequent years
pursuant to Section 415(d) of the Internal Revenue Code and
applicable regulations.  
   (c) The cost-of-living adjustments made pursuant to Section 415(d)
of the Internal Revenue Code to the limit established under Section
415(b) of the Internal Revenue Code continue to apply after a member'
s severance from employment or annuity starting date.