BILL NUMBER: SB 752	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JULY 13, 2009
	AMENDED IN SENATE  MAY 28, 2009

INTRODUCED BY   Senator  Wiggins   Correa 
    (   Coauthor:   Assembly Member  
Silva   ) 

                        FEBRUARY 27, 2009

    An act to amend Section 20815 of the Government Code,
relating to public employees' retirement.   An act to
add Section 31678.31 to the Government Code, relating to county
employees' retirement, and declaring the urgency thereof, to take
effect immediately. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 752, as amended,  Wiggins   Correa  .
 Public employees' retirement: Solano County.  
County employees' retirement: Orange County.  
   (1) The County Employees Retirement Law of 1937 permits counties
and districts, as defined, to provide retirement benefits to their
employees pursuant to its provisions. The law permits the board of
supervisors or the governing body of a district in Orange County, by
resolution adopted by majority vote and pursuant to a memorandum of
understanding, as specified, to make certain formulas for the
calculation of benefits for general or safety members applicable to
the employees of a bargaining unit comprised of general members,
safety members, or employees of the Probation Services Unit and
Probation Supervisory Management Unit, as specified, and requires the
affected members, subject to certain conditions, to pay some or all
of those additional contributions, as specified.  
   This bill would permit, in Orange County, the board of
supervisors, or the governing body of a district within the county,
by resolution adopted by majority vote, to require an employee hired
after approval of the resolution, to make a written election between
2 specified pension calculations within 45 days of beginning
employment. The bill would require that an employee who fails to
elect one of the pension calculations within 45 days of beginning
employment be deemed to have elected the other. The bill would also
permit the resolution, as described above, to require a current
employee to make a similar written election regarding his or her own
pension benefits for future service within 180 calendar days of
approval of the resolution. The bill would require that a current
employee who chooses to terminate a specified pension calculation be
provided with a written explanation of the effect and impact of the
termination and sign a specified affidavit. The bill would further
permit the resolution to require a current employee of the county or
district, hired before approval of the resolution, who subsequently
become eligible for a specified pension calculation to make a
one-time written election between the 2 pension calculations for
future service within 45 days of becoming eligible. The bill would
require that the employee who chooses to terminate a specified
pension calculation be provided with a written explanation of the
effect and impact of the termination and sign a specified affidavit.
The bill would provide that failure to make an election within 45
calendar days shall be considered cause for termination of employment
until the required election has been made. The bill would make these
elections irrevocable, except as specified.  
   The bill would require that a retirement allowance for service
rendered prior to the effective date of the election be calculated
under the employee's prior pension calculation and would provide that
an employee who has made this election is not eligible for
retirement unless the employee meets the minimum requirements of the
provisions applicable at the date of retirement. The bill would
require that specified pension elections include the signature of the
employee's designated beneficiary and a specified written
declaration made under penalty of perjury. By expanding the crime of
perjury, this bill would impose a state-mandated local program. The
bill would require that an employee who elects the lesser of the 2
specified pension calculations be eligible to receive a contribution
to a defined contribution program from the county or district based
on the employee's contribution to a defined contribution program. The
bill would permit the resolution to apply these provisions to
unrepresented employees, as specified, and would provide that its
provisions are not be applicable to safety members of the retirement
system. The bill would provide that an employee who fails to certify
his or her election under specified circumstances would continue to
be covered by his or her immediately preceding retirement plan, as
specified. The bill would provide that the adoption of the resolution
by the county would not extend to the employees of any district
within the county, and would permit the governing body of a district
to elect to make its provisions applicable to the employees of the
district irrespective of whether the board of supervisors has made
that election applicable to employees in the county.  
   (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason.  
   (3) This bill would declare that it is to take effect immediately
as an urgency statute.  
   The Public Employees' Retirement Law requires that, after the
implementation of the Trial Court Employment Protection and
Governance Act, for counties contracting with the Board of
Administration of the Public Employees' Retirement System, a trial
court and a county in which the trial court is located jointly
participate in the retirement system by joint contract. Existing law
also requires the assets and liabilities of a county and a trial
court jointly contracting with the board to be combined for purposes
of setting the employer contribution rate for both the county and the
trial court.  
   This bill would establish certain requirements that must be
satisfied before a county that jointly contracts with the board, as
described above, may issue a pension obligation bond. The bill would
require the county and superior court to jointly approve and submit
in writing to the board specified information on employees and
certain lump-sum payments for purposes of preparing a computation of
assets and liabilities. The bill would require the board to forward
its computation of assets and liabilities to the county and the
superior court. Following receipt of the computation, the bill would
require the superior court and county to enter into a written
agreement that would include, among other things, the amount and date
of payment which the superior court would remit funds to the county
subsequent to the issuance of the pension obligation bond. 

   Vote:  majority   2/3  . Appropriation:
no. Fiscal committee: yes. State-mandated local program:  no
  yes  .


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

   SECTION 1.    Section 31678.31 is added to the 
 Government Code  , to read:  
   31678.31.  (a) Notwithstanding any other provision of this
chapter, the board of supervisors or the governing body of a district
within the county may, by resolution adopted by majority vote, do
the following:
   (1) Require an employee hired after approval of the resolution, to
elect in writing, either the pension calculation stated in Section
31676.19 or the pension calculation stated in Section 31676.01. The
election shall be made within 45 calendar days of beginning
employment with the county or the district. If an employee does not
elect the pension calculation stated in Section 31676.19 within 45
days of beginning employment, the employee shall be deemed to have
elected the pension calculation stated in Section 31676.01. An
employee shall not be permitted to rescind his or her election unless
the board of supervisors or the governing body of a district,
through the adoption of a subsequent ordinance or resolution by
majority vote, makes a provision permitting the employee to rescind
the election applicable to the county or district.
   (2) Require a current employee of the county or district covered
by the pension calculation stated in Section 31676.19, hired before
approval of the resolution, within 180 calendar days of approval of
the resolution to make, at the employee's option, a one-time written
election to terminate the application of the pension calculation
stated in Section 31676.19 for future service and elect instead the
pension calculation stated in Section 31676.01 for future service.
This election shall be signed by the employee. Prior to signing an
election, a current employee who chooses to terminate the pension
calculation stated in Section 31676.19 and elects instead the pension
calculation stated in Section 31676.01, shall be provided by the
county or district governing body with a written explanation of the
effect and impact of the termination. A current employee who chooses
to terminate the pension calculation stated in Section 31676.19 shall
be required to sign an affidavit stating that the employee has been
fully informed regarding the effect of the termination and
understands that the termination is irrevocable. The affidavit shall
also state that the employee has chosen termination of his or her own
free will and was not coerced into termination by the employer or
any other person. An employee shall not be permitted to rescind his
or her election unless the board of supervisors or the governing body
of a district, through the adoption of a subsequent ordinance or
resolution by majority vote, makes a provision permitting the
employee to rescind the election applicable to the county or
district.
   (3) Require a current employee of the county or district, hired
before approval of the resolution, but not covered by the pension
calculation stated in Section 31676.19, who after approval of the
resolution becomes eligible for the pension calculation stated in
Section 31676.19, to make a one-time written election between the
pension calculation stated in Section 31676.19 for future service and
the pension calculation stated in Section 31676.01 for future
service. The election shall be made within 45 calendar days of
becoming eligible for the pension calculation stated in Section
31676.19. The election shall be signed by the employee. Prior to
signing the election, an employee who does not elect the pension
calculation stated in Section 31676.19 and elects instead the pension
calculation stated in Section 31676.01 shall be provided by the
county or the district governing body with a written explanation of
the effect and impact of the election. An employee who does not
choose the pension calculation stated in Section 31676.19 shall be
required to sign an affidavit stating that the employee has been
fully informed regarding the effect of the election and understands
that the election is irrevocable. The affidavit shall also state that
the employee has chosen the election of his or her own free will and
was not coerced into the election by the employer or any other
person. An employee shall not be permitted to rescind his or her
election unless the board of supervisors or the governing body of a
district, through the adoption of a subsequent ordinance or
resolution by majority vote, makes a provision permitting the
employee to rescind the election applicable to the county or
district. Failure to make an election within 45 calendar days shall
be considered cause for termination of employment until the employee
described in this paragraph has made the required election.
   (b) The retirement allowance for service rendered prior to the
effective date of the election under paragraph (2) or (3) of
subdivision (a) for an employee covered by any other pension
calculation shall be calculated under the employee's prior pension
calculation. Any employee who has made an election shall not be
eligible for retirement unless the employee meets the minimum
requirements of the provision or provisions pursuant to the election
applicable at the date of retirement.
   (c) (1) An election for the pension calculation stated in Section
31676.01 by any employee hired before approval of the resolution
shall include the signature of the designated beneficiary of the
employee's pension acknowledging the election, or shall include a
written declaration, made under penalty of perjury, of one or more of
the following as may be applicable:
   (A) The beneficiary has no identifiable community property
interest in the benefit.
   (B) The employee does not know, and has taken all reasonable steps
to determine, the whereabouts of the beneficiary.
   (C) The beneficiary has been advised of the election and has
refused to sign the written acknowledgment.
   (D) The beneficiary is incapable of executing the acknowledgment
because of an incapacitating mental or physical condition.
   (2) The purpose of this subdivision is to notify the beneficiary,
including the employee's spouse or domestic partner, of an election
made by the employee that may affect the entitlement of the
beneficiary. In addition to the foregoing, if the designated
beneficiary of an employee's pension is a spouse or domestic partner
of the employee, the election shall also evidence agreement to the
election by the spouse or domestic partner.
   (d) In the event the employee elects the pension calculation
stated in Section 31676.01, the employee shall be eligible to receive
a contribution from the county or district based on the employee's
contribution to a defined contribution program.
   (e) In addition to employees represented by bargaining units, any
other employees not represented by a bargaining unit, as well as
supervisors, managers, and executives, may be subject to subdivision
(a) pursuant to the resolution described in subdivision (a).
   (f) This section shall apply only to members who retire on or
after the effective date of the resolution described in subdivision
(a).
   (g) This section shall not apply to safety members.
   (h) A resolution adopted by the board of supervisors under
subdivision (a) shall not apply to the employees of any district
within the county. The governing body of a district may elect, by
resolution adopted by majority vote, to make this section applicable
to the employees of the district irrespective of whether the board of
supervisors has made that election applicable to employees in the
county.
   (i) Any person employed subsequent to the effective date of a
resolution adopted under subdivision (a) who would otherwise qualify
as a member shall not become a member until he or she certifies his
or her election, or otherwise as described above has been deemed to
have elected, to be covered by the pension calculation stated in
Section 31676.01 or the pension calculation stated in Section
31676.19. Any employee who subsequently otherwise becomes eligible
for the pension calculation stated in Section 31676.19 subsequent to
the effective date of a resolution adopted under subdivision (a)
shall continue to be covered by any immediately preceding retirement
plan to which he or she was entitled from the county or district
until he or she certifies his or her election to be covered by the
pension calculation stated in Section 31676.01 or the pension
calculation stated in Section 31676.19.
   (j) In the event that the final day to make an election or perform
an act described in this section falls on a weekend or on a county
or district holiday, a subsequent election or act shall be timely if
made or performed on the immediately following regular business day
of the county or district. 
   SEC. 2.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution. 
   SEC. 3.    This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
 
   In order that the terms of a memorandum of understanding between
the Orange County Employees Association and Orange County regarding
the implementation of a new, optional tier of retirement benefits for
new and incumbent employees take effect as soon as possible, it is
necessary that this act take effect immediately.  
  SECTION 1.    Section 20815 of the Government Code
is amended to read:
   20815.  (a) Notwithstanding any other provision of this part,
including, but not limited to, Sections 20225 and 20790, the board
shall not combine the assets and liabilities of public agency
employers into a single account for the purpose of setting a uniform
rate of employer contributions for all public agency employers. The
rate at which a public employer's contribution to this system shall
be fixed shall be based upon its own experience. Provisions of law
that provide authority for this system to combine the assets and
liabilities of public employers into a single account for purposes of
establishing a uniform rate are superseded to the extent that they
provide that authority. For purposes of this section only, references
to public employers shall not be construed to include school
employers.
   (b) Notwithstanding subdivision (a), the assets and liabilities of
a county and a trial court jointly contracting with the board under
Section 20460.1 shall be combined for purposes of setting the
employer contribution rate for both the county and the trial court.
   (c) Before a county that, with a superior court, jointly contracts
with the board under Section 20460.1 may issue a pension obligation
bond, the following shall occur:
   (1) The county and superior court shall jointly approve and submit
in writing to the board the following information for purposes of
preparing a computation of assets and liabilities:
   (A) A list of those active, inactive, and retired members who are
considered county employees and those active, inactive, and retired
members who are considered superior court employees.
   (B) A list of lump-sum payments previously made by either the
county or the superior court to the system for the period from
January 1, 2001, to the proposed date of issuance of the pension
obligation bond, inclusive.
   (2) For purposes of this subdivision and the computation of assets
and liabilities, the following shall apply:
   (A) A person shall be deemed a superior court employee for service
that satisfies either of the following:
   (i) If the person was employed by the superior court on January 1,
2001, all continuous service for the county immediately preceding
January 1, 2001, regardless of whether that service was as a county
employee or a county employee assigned to a trial court in the
county.
   (ii) Any service on or after January 1, 2001, who the person is
employed by the superior court.
   (B) A person shall be deemed a county employee for service that
satisfies any of the following:
   (i) Any period of service for the county prior to January 1, 2001,
that is not described in clause (i) of subparagraph (A).
   (ii) Any service on or after January 1, 2001, who the person is
employed by the county.
   (3) The board shall forward its computation of assets and
liabilities to the county and the superior court. The computation
shall be based upon the most recent annual actuarial valuation at the
time the data described in paragraph (1) is received by the board.
   (4) Following receipt of the computation described in paragraph
(3), the superior court and county shall enter into a written
agreement that contains the following:
   (A) The information provided to the board as described in
paragraph (1) and the board's computation of assets and liabilities
as described in paragraph (3).
   (B) The terms, including, but not limited to, the dates of payment
and amount, under which the superior court shall remit funds to the
county subsequent to the issuance of the pension obligation bond.
   (C) Nothing in the written agreement described in this paragraph
shall be construed to effect the combined calculation of assets and
liabilities for purposes of setting the employer contribution rate
for both a county and a superior court as described in subdivision
(b).