BILL NUMBER: SB 519 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY SEPTEMBER 2, 2009
AMENDED IN ASSEMBLY JUNE 25, 2009
INTRODUCED BY Senator Ashburn
FEBRUARY 26, 2009
An act to amend Sections 21572, 21573, and 21574.7 of
of, and to add Section 22944.3 to, the
Government Code, relating to retirement
public employment .
LEGISLATIVE COUNSEL'S DIGEST
SB 519, as amended, Ashburn. Public Employees' Retirement
System: death benefits. Public employment.
The Public Employees' Retirement System provides preretirement
death benefits for the surviving spouse or children, or both, as
specified, of state members and specified school members not covered
by the federal Social Security Act and provides that a surviving
spouse becomes eligible for certain of these benefits when he or she
attains 60 years of age and meets other specified criteria. Existing
law provides that on January 1, 2010, the surviving spouse's
eligibility age will increase to 62 years of age, and the financial
monthly benefits to the survivors would decrease.
This bill would delete the provisions that would change the law on
January 1, 2010, and would instead maintain indefinitely the
benefits that are currently in effect.
Existing law requires the state to pay sworn members of the
California Highway Patrol who are rank-and-file members of State
Bargaining Unit 5 the estimated average total compensation for each
corresponding rank for the Los Angeles Police Department, Los Angeles
County Sheriff's Office, San Diego Police Department, Oakland Police
Department, and San Francisco Police Department, as specified.
Existing law requires the state and the exclusive representative for
State Bargaining Unit 5 to jointly survey annually and calculate the
estimated average total compensation based on projected average total
compensation for the above-named departments as of July 1 of the
year in which the survey is conducted. Existing law requires any
increase in total compensation resulting from those provisions to be
implemented through a memorandum of understanding negotiated pursuant
to the Ralph C. Dills Act.
This bill would instead use any amount that would otherwise be
used to permanently increase compensation for those members of State
Bargaining Unit 5 pursuant to those provisions, effective on July 1,
2009, and on July 1, 2010, to permanently prefund postemployment
health care benefits for patrol members, as defined. The bill would
prohibit any amount used to prefund postemployment health care for
patrol members pursuant to that provision from being included in any
calculation for benefits using final compensation. The bill would
require patrol members to contribute an additional 0.5% of base pay
toward prefunding retiree health benefit obligations effective on the
first day of the pay period following the effective date of this act
and the ratification of the addendum by the members of State
Bargaining Unit 5. The bill would also require the state to
contribute toward prefunding retiree health benefits, on a
prospective basis, as specified, effective July 1, 2012. The bill
would provide that if those provision are in conflict with the
provisions of a memorandum of understanding, the memorandum of
understanding shall be controlling without further legislative
action, except that if those provisions of a memorandum of
understanding require the expenditure of funds, the provisions would
not become effective unless approved by the Legislature in the annual
Budget Act.
Existing law requires the Department of Personnel Administration
to provide any side letter, appendix, or other addendum to a properly
ratified memorandum of understanding that requires the expenditure
of $250,000 or more related to salary and benefits and that is not
already contained in the original memorandum of understanding or the
Budget Act to the Joint Legislative Budget Committee. Existing law
requires the Joint Legislative Budget Committee, within 30 days after
receiving the side letter, appendix, or other addendum, to determine
if the addendum presents substantial additions that are not
reasonably within the parameters of the original memorandum of
understanding and thereby requires legislative action to ratify the
addendum.
This bill would approve an addendum to a memorandum of
understanding entered into by the state employer and State Bargaining
Unit 5 that require the expenditure of funds. The bill would approve
provisions of the addendum that require the expenditure of funds.
The bill would provide that those provisions shall not take effect
unless the funds are specifically appropriated by the Legislature or
already exist within available appropriations, and would allow the
reopening of negotiations if the Legislature does not approve or
fully fund any addendum included in the bill.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 21572 of the Government Code is amended to
read:
21572. (a) In lieu of benefits provided in Section 21571, if the
death benefit provided by Section 21532 is payable on account of a
state member's death that occurs under circumstances other than those
described in subparagraph (F) of paragraph (1) of subdivision (a) of
Section 21530, or if an allowance under Section 21546 is payable,
the payment pursuant to subdivision (b) shall be made in the
following order of priority:
(1) The surviving wife or surviving husband of the member who has
the care of unmarried children, including stepchildren, of the member
who are under 22 years of age or are incapacitated because of a
disability that began before and has continued without interruption
after attainment of that age.
(2) The guardian of surviving unmarried children, including
stepchildren, of the member who are under 22 years of age or are so
incapacitated.
(3) The surviving wife or surviving husband of the member who does
not qualify under paragraph (1).
(4) Each surviving parent of the member.
(b) Regardless of the benefit provided by Section 21532 and of the
beneficiary designated by the member under that section, or
regardless of the allowance provided under Section 21546, the
following applicable 1959 survivor allowance, under the conditions
stated and from contributions of the state, shall be paid:
(1) A surviving spouse who was either continuously married to the
member for at least one year prior to death, or was married to the
member prior to the occurrence of the injury or onset of the illness
that resulted in death, and has the care of unmarried children,
including stepchildren, of the deceased member who are under 22 years
of age or are so incapacitated, shall be paid four hundred fifty
dollars ($450) per month if there is one child or five hundred
thirty-eight dollars ($538) per month if there are two or more
children. If there also are children who are not in the care of the
surviving spouse, the portion of the allowance payable under this
paragraph, assuming that these children were in the care of the
surviving spouse, that is in excess of two hundred twenty-five
dollars ($225) per month, shall be divided equally among all those
children and payments made to the spouse and other children, as the
case may be.
(2) If there is no surviving spouse, or if the surviving spouse
dies, and if there are unmarried children, including stepchildren, of
the deceased member who are under 22 years of age or are so
incapacitated, or if there are children not in the care of the
spouse, the children shall be paid an allowance as follows:
(A) If there is only one child, the child shall be paid two
hundred twenty-five dollars ($225) per month.
(B) If there are two children, the children shall be paid four
hundred fifty dollars ($450) per month divided equally between them.
(C) If there are three or more children, the children shall be
paid five hundred thirty-eight dollars ($538) per month divided
equally among them.
(3) A surviving spouse who has attained or attains the age of 62
years and, with respect to that surviving spouse, who was either
continuously married to the member for at least one year prior to
death, or was married to the member prior to the occurrence of the
injury or onset of the illness that resulted in death, shall be paid
two hundred twenty-five dollars ($225) per month. No allowance shall
be paid under this paragraph while the surviving spouse is receiving
an allowance under paragraph (1) or while an allowance is being paid
under subparagraph (C) of paragraph (2). The allowance paid under
this paragraph shall be eighty-eight dollars ($88) per month while an
allowance is being paid under subparagraph (B) of paragraph (2).
(4) If there is no surviving spouse or surviving child who
qualifies for a 1959 survivor allowance, or if the surviving spouse
dies and there is no surviving child, or if the surviving spouse dies
and the children die or marry or, if not incapacitated, reach 22
years of age, each of the member's dependent parents who has attained
or attains the age of 62 years, and who received at least one-half
of his or her support from the member at the time of the member's
death, shall be paid two hundred twenty-five dollars ($225) per
month.
(c) "Stepchildren," for purposes of this section, shall include
only stepchildren of the member living with him or her in a regular
parent-child relationship at the time of his or her death.
(d) This section shall apply to beneficiaries receiving 1959
survivor allowances on July 1, 1975, as well as to beneficiaries with
respect to the death of a state member occurring on or after July 1,
1975.
(e) This section shall apply, with respect to benefits payable on
and after July 1, 1981, to all members employed by a school employer,
and school safety members employed with a school district or
community college district as defined in subdivision (i) of Section
20057, except that it shall not apply, without contract amendment,
with respect to safety members who became members after July 1, 1981.
All assets and liabilities of all school employers, and their
employees, on account of benefits provided under this article shall
be pooled into a single account, and a single employer rate shall be
established to provide benefits under this section on account of all
miscellaneous members employed by a school employer and all safety
members who are members on July 1, 1981.
(f) This section does not apply to any member in the employ of an
employer not subject to this section on January 1, 1994.
(g) On and after January 1, 2000, all state members covered by
this section shall be covered by the benefit provided under Section
21574.7.
(h) On and after the date determined by the board, all assets and
liabilities of all contracting agencies subject to this section, and
their employees, on account of benefits provided under this article
shall be pooled into a single account, and a single employer rate
shall be established to provide benefits under this section on
account of members employed by a contracting agency that is subject
to this section.
(i) The rate of contribution of an employer subject to this
section shall be figured using the term insurance valuation method.
If a contracting agency that is subject to this section is projected
to have a surplus in its 1959 survivor benefit account as of the date
the assets and liabilities are first pooled, the surplus shall be
applied to reduce its rate of contribution. If a contracting agency
that is subject to this section is projected to have a deficit in its
1959 survivor benefit account as of the date the assets and
liabilities are first pooled, its rate of contribution shall be
increased until the projected deficit is paid.
SEC. 2. Section 21573 of the Government Code is amended to read:
21573. (a) In lieu of benefits provided in Section 21571 or
Section 21572, if the death benefit provided by Section 21532 is
payable on account of a state member's death that occurs under
circumstances other than those described in subparagraph (F) of
paragraph (1) of subdivision (a) of Section 21530, or if an allowance
under Section 21546 is payable, the payment pursuant to subdivision
(b) shall be made in the following order of priority:
(1) The surviving wife or surviving husband of the member who has
the care of unmarried children, including stepchildren, of the member
who are under 22 years of age or are incapacitated because of a
disability that began before and has continued without interruption
after attainment of that age.
(2) The guardian of surviving unmarried children, including
stepchildren, of the member who are under 22 years of age or are so
incapacitated.
(3) The surviving wife or surviving husband of the member who does
not qualify under paragraph (1).
(4) Each surviving parent of the member.
(b) Regardless of the benefit provided by Section 21532 and of the
beneficiary designated by the member under that section, or
regardless of the allowance provided under Section 21546, the
following applicable 1959 survivor allowance, under the conditions
stated and from contributions of the state, shall be paid:
(1) A surviving spouse who was either continuously married to the
member for at least one year prior to death, or who was married to
the member prior to the occurrence of the injury or onset of the
illness that resulted in death, and has the care of unmarried
children, including stepchildren, of the deceased member who are
under 22 years of age or are so incapacitated, shall be paid seven
hundred dollars ($700) per month if there is one child, or eight
hundred forty dollars ($840) per month if there are two or more
children. If there also are children who are not in the care of the
surviving spouse, the portion of the allowance payable under this
paragraph, assuming that these children were in the care of the
surviving spouse, that is in excess of three hundred fifty dollars
($350) per month, shall be divided equally among all those children
and payments made to the spouse and other children, as the case may
be.
(2) If there is no surviving spouse, or if the surviving spouse
dies, and if there are unmarried children, including stepchildren, of
the deceased member who are under 22 years of age or are so
incapacitated, or if there are children not in the care of the
spouse, the children shall be paid an allowance as follows:
(A) If there is only one child, the child shall be paid three
hundred fifty dollars ($350) per month.
(B) If there are two children, the children shall be paid seven
hundred dollars ($700) per month divided equally between them.
(C) If there are three or more children, the children shall be
paid eight hundred forty dollars ($840) per month divided equally
among them.
(3) A surviving spouse who has attained or attains the age of 62
years, and, with respect to that surviving spouse, who was either
continuously married to the member for at least one year prior to
death, or who was married to the member prior to the occurrence of
the injury or onset of the illness that resulted in death, shall be
paid three hundred fifty dollars ($350) per month. No allowance shall
be paid under this paragraph while the surviving spouse is receiving
an allowance under paragraph (1) or while an allowance is being paid
under subparagraph (C) of paragraph (2). The allowance paid under
this paragraph shall be one hundred forty dollars ($140) per month
while an allowance is being paid under subparagraph (B) of paragraph
(2).
(4) If there is no surviving spouse or surviving child who
qualifies for the 1959 survivor allowance, or if the surviving spouse
dies and there is no surviving child, or if the surviving spouse
dies and the children die or marry or, if not incapacitated, reach 22
years of age, each of the member's dependent parents who has
attained or attains the age of 62 years, and who received at least
one-half of his or her support from the member at the time of the
member's death, shall be paid three hundred fifty dollars ($350) per
month.
(c) "Stepchildren," for purposes of this section, shall include
only stepchildren of the member living with the member in a regular
parent-child relationship at the time of the death of the member.
(d) This section shall apply to beneficiaries of state members
whose death occurred before January 1, 1985. Where a surviving spouse
attained the age of 62 years prior to January 1, 1987, entitlement
shall exist retroactive to January 1, 1985, or to his or her 62nd
birthday, whichever is later. All assets and liabilities of all state
agencies and their employees on account of benefits provided to
beneficiaries specified in this subdivision shall be pooled into a
single account. The board shall transfer from the reserve for 1959
survivor contributions retained in the retirement fund an amount
sufficient to pay the cost of the increased benefits provided by this
subdivision for beneficiaries of members who died on or before
December 31, 1984.
(e) This section shall not apply to beneficiaries with respect to
the death of a state member, except as provided in subdivision (i),
occurring on or after January 1, 1985, unless provided for in a
memorandum of understanding reached pursuant to Section 3517.5, or
authorized by the Director of Personnel Administration for
classifications of state employees that are excluded from, or not
subject to, collective bargaining. The memorandum of understanding
adopting this section shall be controlling without further
legislative action, except that if those provisions of a memorandum
of understanding require the expenditure of funds, those provisions
shall not become effective unless approved by the Legislature as
provided by law.
(f) This section shall apply, with respect to benefits payable on
and after January 1, 1985, to school members and to school safety
members, as defined in Section 20444. All assets and liabilities of
all school employers, and their employees, on account of benefits
provided under this article shall be pooled into a single account,
and a single employer rate shall be established to provide benefits
under this section on account of school members employed by a school
employer.
(g) This section shall apply to members of a contracting agency
that, in its original contract or by amending its contract, first
elects effective on or after January 1, 1985, and prior to July 1,
2001, to make this article applicable to local members employed by
the agency. On or after January 1, 1985, and prior to July 1, 2001,
contracting agencies already subject to Section 21571 or Section
21572 may elect by contract amendment to be subject to this section.
All assets and liabilities of all contracting agencies subject to
this section, and their employees, on account of benefits provided
under this article shall be pooled into a single account, and a
single employer rate shall be established to provide benefits under
this section on account of members employed by a contracting agency
that is subject to this section. Any public agency first contracting
with the board on or after January 1, 1994, and prior to July 1,
2001, or any contracting agency amending its contract to remove
exclusions of member classifications on or after January 1, 1994, and
prior to July 1, 2001, that has not, pursuant to Section 418 of
Title 42 of the United States Code, entered into an agreement with
the federal government for the coverage of its employees under the
federal system, shall be subject to this section.
(h) The rate of contribution of an employer subject to this
section shall be figured using the term insurance valuation method.
If a contracting agency that is subject to this section has a surplus
in its 1959 survivor benefit account as of the date the contracting
agency becomes subject to this section, the surplus shall be applied
to reduce its rate of contribution. If a contracting agency that is
subject to this section has a deficit in its 1959 survivor benefit
account as of the date the contracting agency becomes subject to this
section, its rate of contribution shall be increased until the
deficit is paid.
(i) This section shall not apply to beneficiaries with respect to
the death of a state member employed by the California State
University occurring on or after January 1, 1988, 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. The memorandum of
understanding shall be controlling without further legislative
action, except that if the provisions of a memorandum of
understanding require the expenditure of funds, the provisions shall
not become effective unless approved by the Legislature in the annual
Budget Act.
(j) This section shall apply to local members employed by a
contracting agency that has included this benefit in its contract
with the board on or before June 30, 2001.
(k) This section shall not apply to any contracting agency that
first contracts with the board on or after July 1, 2001.
() On and after January 1, 2000, all eligible state and school
members covered by this section shall be covered by the benefit
provided under Section 21574.7.
SEC. 3. Section 21574.7 of the Government Code is amended to read:
21574.7. (a) In lieu of benefits provided in Section 21571,
21572, or 21573, if the death benefit provided by Section 21532 is
payable on account of a state member's death that occurs under
circumstances other than those described in subparagraph (F) of
paragraph (1) of subdivision (a) of Section 21530, or if an allowance
under Section 21546 is payable, the payment pursuant to subdivision
(b) shall be made in the following order of priority:
(1) The surviving spouse of the member who has the care of
unmarried children, including stepchildren, of the member who are
under 22 years of age or are incapacitated because of a disability
that began before and has continued without interruption after the
attainment of that age.
(2) The guardian of surviving unmarried children, including
stepchildren, of the member who are under 22 years of age or are so
incapacitated.
(3) The surviving spouse of the member who does not qualify under
paragraph (1).
(4) Each surviving parent of the member.
(b) Regardless of the benefit provided by Section 21532 and of the
beneficiary designated by the member under that section, or
regardless of the allowance provided under Section 21546, the
following applicable 1959 survivor allowance, under the conditions
stated and from contributions of the employer, shall be paid:
(1) A surviving spouse who was either continuously married to the
member for at least one year prior to death, or was married to the
member prior to the occurrence of the injury or onset of the illness
that resulted in death, and has the care of unmarried children,
including stepchildren, of the deceased member who are under 22 years
of age or are so incapacitated, shall be paid one thousand five
hundred dollars ($1,500) per month if there is one child or one
thousand eight hundred dollars ($1,800) per month if there are two or
more children. If there also are children who are not in the care of
the surviving spouse, the portion of the allowance payable under
this paragraph, assuming that these children were in the care of the
surviving spouse, that is in excess of seven hundred fifty dollars
($750) per month, shall be divided equally among all those children
and payments made to the spouse and other children, as the case may
be.
(2) If there is no surviving spouse, or if the surviving spouse
dies, and if there are unmarried children, including stepchildren, of
the deceased member who are under 22 years of age or are so
incapacitated, or if there are children not in the care of the
spouse, the children shall be paid an allowance as follows:
(A) If there is only one child, the child shall be paid seven
hundred fifty dollars ($750) per month.
(B) If there are two children, the children shall be paid one
thousand five hundred dollars ($1,500) per month divided equally
between them.
(C) If there are three or more children, the children shall be
paid one thousand eight hundred dollars ($1,800) per month divided
equally among them.
(3) A surviving spouse who has attained or attains the age of 60
years, and who was either continuously married to the member for at
least one year prior to death, or was married to the member prior to
the occurrence of the injury or onset of the illness that resulted in
death, shall be paid seven hundred fifty dollars ($750) per month.
No allowance shall be paid under this paragraph while the surviving
spouse is receiving an allowance under paragraph (1) or while an
allowance is being paid under subparagraph (C) of paragraph (2). The
allowance paid under this paragraph shall be three hundred dollars
($300) per month while an allowance is being paid under subparagraph
(B) of paragraph (2).
(4) If there is no surviving spouse or surviving child who
qualifies for the 1959 survivor allowance, or if the surviving spouse
dies and there is no surviving child, or if the surviving spouse
dies and the children die or marry or, if not incapacitated, reach 22
years of age, each of the member's dependent parents who has
attained or attains the age of 60 years, and who received at least
one-half of his or her support from the member at the time of the
member's death, shall be paid seven hundred fifty dollars ($750) per
month.
(c) "Stepchildren," for purposes of this section, shall include
only stepchildren of the member living with the member in a regular
parent-child relationship at the time of the death of the member.
(d) This section shall only apply to state and school members
effective on or after January 1, 2000.
(e) All assets and liabilities of state employers subject to this
section, and their employees, on account of benefits provided under
this article shall be pooled into a single account, and a single
employer rate shall be established to provide benefits under this
section on account of state members employed by the state.
(f) All assets and liabilities of school employers, as defined in
Section 20063, that are subject to this section, and their employees,
on account of benefits provided under this article shall be pooled
into a single account, and a single employer rate shall be
established to provide benefits under this section.
(g) The rate of contribution of an employer subject to this
section shall be calculated using a method determined by the board.
Surplus assets shall be applied to reduce the rate of contribution.
If a deficit exists, the rate of contribution shall be increased
until the deficit is paid.
(h) On and after January 1, 2000, all state employees and school
members shall be covered by this section.
SEC. 4. Section 22944.3 is added to the
Government Code , to read:
22944.3. (a) Any amount that would otherwise be used to
permanently increase compensation pursuant to Section 19827,
effective on July 1, 2009, and on July 1, 2010, shall instead be used
to permanently prefund postemployment health care benefits for
patrol members. The amount used to prefund benefits relative to any
increases under the survey methodology effective July 1, 2010, shall
not exceed 2 percent. The state shall take credit for these
prefunding contributions in the survey methodology established in
Section 19827 in the same manner as it would for an increase to the
base salary for patrol members.
(b) Patrol members shall contribute an additional 0.5 percent of
base pay toward prefunding retiree health benefit obligations
effective on the first day of the pay period following the effective
date of the act adding this section and the ratification of the
addendum by the members of State Bargaining Unit 5. This contribution
shall not reduce the base salary of patrol members under the survey
methodology established by Section 19827.
(c) Effective July 1, 2012, the state shall contribute toward
prefunding retiree health benefits, on a prospective basis, an amount
at least equal to the combined contribution rate established
pursuant to subdivisions (a) and (b). These contributions may be used
in the survey methodology established by Section 19827 if mutually
agreed in a memorandum of understanding.
(d) Contributions paid pursuant to this section shall be used
exclusively for the cost of providing postemployment health care to
eligible enrolled patrol member annuitants and their eligible
enrolled dependents, beneficiaries, and survivors.
(e) Contributions paid pursuant to this section shall not be
refundable under any circumstances to a patrol member or his or her
beneficiary or survivor.
(f) Any amount used to prefund postemployment health care for
patrol members pursuant to subdivision (a) shall not be included in
any calculation for benefits using final compensation.
(g) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if those provisions
of a memorandum of understanding require the expenditure of funds,
the provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
(h) For purposes of this section, "patrol member" has the same
meaning as in Section 20390. This section shall not apply to an
employee of a county.
SEC. 5. The provisions of the addenda to memoranda
of understanding entered into by the state employer and State
Bargaining Unit 5 that require the expenditure of funds are hereby
approved for the purposes of Section 3517.63 of the Government Code.
SEC. 6. The addendum to memoranda of understanding
entered into by the state employer and State Bargaining Unit 5,
dated August 26, 2009, is hereby approved.
SEC. 7. The provisions of the addendum to the
memorandum of understanding approved by Sections 5 and 6 of this act
and that require the expenditure of funds shall not take effect
unless funds for these provisions are specifically appropriated by
the Legislature or already exist within available appropriations. If
the Legislature does not approve or fully fund the addendum in this
act, either party may reopen negotiations on all or part of the
addendum.