BILL NUMBER: SB 846	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 2, 2010

INTRODUCED BY    Committee on Budget and Fiscal Review
  Senator   Correa 
    (   Coauthors:   Senators  
Ducheny   and Liu   ) 

                        JANUARY 11, 2010

    An act relating to the Budget Act of 2010.  
An act to amend Sections 19999.3, 21353, 21354.1, 21362.2, 21363.1,
and 21369.1 of, and to add Sections 19829.7, 19829.8, 19829.9,
19829.95, 20037.14, 20677.6, 20677.7, 20677.8, 20677.9, 21369.2, and
22874.1 to, the Government Code, relating to state employees, making
an appropriation therefor, and declaring the urgency thereof, to take
effect immediately. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 846, as amended,  Committee on Budget and Fiscal Review
  Correa  . Budget Act of 2010. 
 State employees: memoranda of understanding.  
   (1) Existing law provides that if any provision of a memorandum of
understanding reached between the state employer and a recognized
employee organization representing state civil service employees
requires the expenditure of funds, those provisions of the memorandum
of understanding shall not become effective unless approved by the
Legislature in the annual Budget Act.  
   This bill would approve provisions that require the expenditure of
funds for memoranda of understanding entered into between the state
employer and State Bargaining Units 5, 12, and 18 and would provide
that the provisions of any memorandum of understanding that require
the expenditure of funds shall become effective even if the
provisions of the memorandum of understanding are approved by the
Legislature in legislation other than the annual Budget Act. 

   The bill would provide that provisions of the memoranda of
understanding approved by this bill that require the expenditure of
funds will not take effect unless funds for these provisions are
specifically appropriated by the Legislature, and would authorize the
state employer and the affected employee organizations to reopen
negotiations on all or part of the memorandum of understanding if the
memorandum of understanding that requires the expenditure of funds
is not approved by the Legislature.  
   This bill would, with respect to salaries that are continuously
appropriated prior to the enactment of the annual Budget Act, require
the Director of Finance to reduce the necessary items for the
payment of salaries from specified funds scheduled in that Budget Act
to reflect the salaries paid prior to the enactment of the annual
Budget Act.  
   (2) Existing law establishes an alternate retirement program and
provides that state employees, as defined, who become new members of
the Public Employees' Retirement System (PERS) during their first 24
months of employment, do not make contributions to the system or
receive service credit for their service, and the state employer
shall not make contributions on their behalf. These members are
instead required to contribute either 5% or 6% of their monthly
compensation, as specified, to the alternate retirement program,
administered by the Department of Personnel Administration, and these
contributions cease when the state employees begin making their own
contributions to PERS.  
   This bill would require all state employees participating in the
alternate retirement system to contribute an amount equal to the same
amount that employees in the same employment classifications in the
same state bargaining units are required to contribute to PERS. 

   (3) The Public Employees' Retirement Law (PERL) provides a
comprehensive set of rights and benefits based upon age, service
credit, and final compensation. Existing law defines final
compensation variously for different member classifications and
bargaining units and, in this regard, defines final compensation for
a state member for the purpose of calculating retirement benefits as
the highest annual average compensation earnable by the member during
a designated 12-month or 36-month period, depending upon the
bargaining unit and classification of that employee. Currently the
final compensation for members hired on or after July 1, 2006, who
are represented by State Bargaining Units 12, 16, 18, and 19, means
the final compensation earnable by the member during a designated
36-month period.  
   This bill would provide that final compensation for a person who
becomes a state member, as specified, on or after October 31, 2010,
and who is represented by State Bargaining Units 5 and 8, means the
highest annual average compensation earnable by the member during a
designated 36-month period.  
   (4) PERL provides that the contribution rate for state
miscellaneous members and specified state safety members is 5% or 6%
of the compensation in excess of $513. Existing law provides that the
contribution rate for specified state firefighters is 8% of
compensation in excess of $238 per month. Existing law provides that
the contribution rate for specified state safety patrol members is 8%
of the compensation in excess of $863 per month.  
   This bill would increase the contributions rates by 5% for state
miscellaneous members of State Bargaining Units 5, 8, 12, 16, 18, and
19 and state safety members of State Bargaining Units 12, 16, 18,
and 19, and by 2% for state firefighter members of State Bargaining
Unit 8 and state patrol members of State Bargaining Unit 5. By
increasing member contributions into a continuously appropriated
fund, this bill would make an appropriation.  
   (5) PERL establishes various retirement formulas that apply to
specified membership categories. Under PERL, state miscellaneous
members are generally subject to a retirement formula commonly known
as 2% at 55, which, if the member retires at 55 years of age, yields
a benefit equal to 2% of the member's final compensation multiplied
by the member's years of service credit, as specified. Under PERL,
patrol members and specified state peace officer/firefighter members
are generally subject to a 3% at 50 retirement formula. Under PERL,
state safety members are generally subject to a 2.5% at 55 retirement
formula.  
   This bill would provide that state miscellaneous members who are
first employed on and after the date the act takes effect, are
subject to a 2% at 60 retirement formula. The bill would also provide
that patrol members and firefighter members in State Bargaining
Units 5 and 8 who are first employed on and after October 31, 2010,
are subject to a 3% at 55 retirement formula.  
   (6) The Public Employees' Medical and Hospital Care Act (PEMHCA),
which is administered by the Board of Administration of PERS
establishes percentages for levels of benefit coverage afforded under
the approved health benefit plan in which the employee or annuitant
is enrolled. Existing law provides that a represented state employee
first hired on or after January 1, 1989, shall not be vested for the
full employer contribution payable for annuitants unless he or she
has 20 years of credited state service, as defined, at the time of
retirement, as specified.  
   This bill would, instead, provide that these benefits vest at 50%
for state employees represented by State Bargaining Unit 12, who
become members of the system on and after January 1, 2011, and would
increase that percentage by 5% for each year of credited state
service up to 100% after 25 years of credited state service. 

   (7) The annual Budget Act appropriates specified amounts from the
General Fund, unallocated special funds, and unallocated
nongovernmental cost funds, for state employee compensation. 

   This bill would, in the event that the annual Budget Act is not
enacted prior to July 1 of each year covered by the memoranda of
understanding for State Bargaining Units 5, 8, 12, 16, 18, and 19,
provide for a continuous appropriation for the amount necessary for
the payment of compensation and benefits to members of those
bargaining units.  
   (8) This bill would provide that its provisions would not become
operative unless AB 1592 of the 2009-10 Regular Session is enacted
and takes effect on or before January 1, 2011.  
   (9) This bill would declare that it is to take effect immediately
as an urgency statute.  
   This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2010. 
   Vote:  majority   2/3  . Appropriation:
 no   yes  . Fiscal committee:  no
  yes  . State-mandated local program: no.


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

   SECTION 1.    The Legislature finds and declares that
the purpose of this act is to approve the provisions of agreements
pursuant to Section 3517.6 of the Government Code entered into by the
state employer and State Bargaining Units 5 (the California
Association of Highway Patrolmen), 12 (the International Union of
Operating Engineers), and 18 (the California Association of
Psychiatric Technicians) that require the expenditure of funds. 

   SEC. 2.    The provisions of the memorandum of
understanding prepared pursuant to Section 3517.5 of the Government
Code and entered into by the state employer and State Bargaining Unit
5 on June 15, 2010, State Bargaining Unit 12 on June 24, 2010, and
State Bargaining Unit 18 on June 11, 2010, and that require the
expenditure of funds, are hereby approved for the purposes of Section
3517.6 of the Government Code. 
   SEC. 3.    The provisions of the memoranda of
understanding approved by Section 1 of this act that are scheduled to
take effect on or after July 1, 2010, and that require the
expenditure of funds, shall not take effect unless funds for these
provisions are specifically appropriated by the Legislature. If the
Legislature does not approve or fully fund any provision of the
memorandum of understanding that requires the expenditure of funds,
either party may reopen negotiations on all or part of the memorandum
of understanding. 
   SEC. 4.    Notwithstanding Section 3517.6 of the
Government Code, the provisions of any memorandum of understanding
that require the expenditure of funds shall become effective even if
the provisions of the memorandum of understanding are approved by the
Legislature in legislation other than the annual Budget Act. 
   SEC. 5.    Notwithstanding any provision of law, if
the 2010-11 Budget Act is not enacted prior to the effective date of
this act, and in the event that a memorandum of understanding goes
into effect pursuant to the Ralph C. Dills Act (Chapter 10.3
(commencing with Section 3512) of Division 4 of Title 1 of the
Government Code) or there is a corresponding adjustment to
nonrepresented employees consistent with those of related
classifications and groups of represented employees, the Director of
Finance shall reduce the necessary items of the General Fund, as
appropriate, to reflect a reduction in the total amount of up to
$24,600,000 and other funds, as appropriate, to reflect a reduction
in the total amount of up to $27,700,000 in the annual Budget Act and
applicable non-Budget Act items via Executive order. Nothing in this
section shall be construed to change or expand the existing ability
of the administration to adjust salaries or benefits of
nonrepresented employees. 
   SEC. 6.    Section 19829.7 is added to the 
Government Code   , to read:  
   19829.7.  (a) Notwithstanding Section 13340, for the 2010-11
fiscal year, if the 2010-11 Budget Act is not enacted by July 1,
2010, for the memoranda of understanding entered into between the
state employer and State Bargaining Unit 5 (effective July 3, 2010,
to July 3, 2013, inclusive), State Bargaining Unit 8 (effective July
1, 2010, to July 1, 2013, inclusive), State Bargaining Unit 12
(effective July 1, 2010, to July 1, 2012, inclusive), State
Bargaining Unit 16 (effective July 1, 2010, to July 1, 2012,
inclusive), State Bargaining Unit 18 (effective July 1, 2010, to July
1, 2012, inclusive), and State Bargaining Unit 19 (effective July 1,
2010, to July 1, 2012, inclusive), there is hereby continuously
appropriated to the Controller from the General Fund, unallocated
special funds, including, but not limited to, federal funds and
unallocated nongovernmental cost funds, and any other fund from which
state employees are compensated, the amount necessary for the
payment of compensation and employee benefits to state employees
covered by the above memoranda of understanding until the 2010-11
Budget Act is enacted. The Controller may expend an amount no greater
than necessary to enable the Controller to compensate state
employees covered by the above memoranda of understanding for work
performed between July 1, 2010, of the 2010-11 fiscal year and the
enactment of the 2010-11 Budget Act.
   (b) If the memoranda of understanding entered into between the
state employer and State Bargaining Unit 5 (effective July 3, 2010,
to July 3, 2013, inclusive), State Bargaining Unit 8 (effective July
1, 2010, to July 1, 2013, inclusive), State Bargaining Unit 12
(effective July 1, 2010, to July 1, 2012, inclusive), State
Bargaining Unit 16 (effective July 1, 2010, to July 1, 2012,
inclusive), State Bargaining Unit 18 (effective July 1, 2010, to July
1, 2012, inclusive), and State Bargaining Unit 19 (effective July 1,
2010, to July 1, 2012, inclusive) are in effect and approved by the
Legislature, the compensation and contribution for employee benefits
for state employees represented by these bargaining units shall be at
a rate consistent with the applicable memorandum of understanding
referenced above.
   (c) Expenditures related to any warrant drawn pursuant to
subdivision (a) are not augmentations to the expenditure authority of
a department. Upon enactment of the 2010-11 Budget Act, these
expenditures shall be subsumed by the expenditure authority approved
in the 2010-11 Budget Act for each affected department.
   (d) This section shall only apply to an employee covered by the
terms of the State Bargaining Unit 5 (effective July 3, 2010, to July
3, 2013, inclusive), State Bargaining Unit 8, (effective July 1,
2010, to July 1, 2013, inclusive), State Bargaining Unit 12
(effective July 1, 2010, to July 1, 2012, inclusive), State
Bargaining Unit 16 (effective July 1, 2010, to July 1, 2012,
inclusive), State Bargaining Unit 18 (effective July 1, 2010, to July
1, 2012, inclusive), and State Bargaining Unit 19 (effective July 1,
2010, to July 1, 2012, inclusive) memoranda of understanding.
Notwithstanding Section 3517.8, this section shall not apply after
the term of the memorandum of understanding expires. For purposes of
this section, the memorandum of understanding for State Bargaining
Unit 5 expires on July 3, 2013, the memorandum of understanding for
State Bargaining Unit 8 expires on July 1, 2013, the memorandum of
understanding for State Bargaining Unit 12 expires on July 1, 2012,
the memorandum of understanding for State Bargaining Unit 16 expires
on July 1, 2012, the memorandum of understanding for State Bargaining
Unit 18 expires on July 1, 2012, and the memorandum of understanding
for State Bargaining Unit 19 expires on July 1, 2012. 
   SEC. 7.    Section 19829.8 is added to the  
Government Code   , to read:  
   19829.8.  (a) Notwithstanding Section 13340, for the 2011-12
fiscal year, if the 2011-12 Budget Act is not enacted by July 1,
2011, for the memoranda of understanding entered into between the
state employer and State Bargaining Unit 5 (effective July 3, 2010,
to July 3, 2013, inclusive), State Bargaining Unit 8 (effective July
1, 2010, to July 1, 2013, inclusive), State Bargaining Unit 12
(effective July 1, 2010, to July 1, 2012, inclusive), State
Bargaining Unit 16 (effective July 1, 2010, to July 1, 2012,
inclusive), State Bargaining Unit 18 (effective July 1, 2010, to July
1, 2012, inclusive), and State Bargaining Unit 19 (effective July 1,
2010, to July 1, 2012, inclusive), there is hereby continuously
appropriated to the Controller from the General Fund, unallocated
special funds, including, but not limited to, federal funds and
unallocated  nongovernmental cost funds, and any other fund from
which state employees are compensated, the amount necessary for the
payment of compensation and employee benefits to state employees
covered by the above memoranda of understanding until the 2011-12
Budget Act is enacted. The Controller may expend an amount no greater
than necessary to enable the Controller to compensate state
employees covered by the above memoranda of understanding for work
performed between July 1, 2011, of the 2011-12 fiscal year and the
enactment of the 2011-12 Budget Act.
   (b) If the memoranda of understanding entered into between the
state employer and State Bargaining Unit 5 (effective July 3, 2010,
to July 3, 2013, inclusive), State Bargaining Unit 8 (effective July
1, 2010, to July 1, 2013, inclusive), State Bargaining Unit 12
(effective July 1, 2010, to July 1, 2012, inclusive), State
Bargaining Unit 16 (effective July 1, 2010, to July 1, 2012,
inclusive), State Bargaining Unit 18 (effective July 1, 2010, to July
1, 2012, inclusive), and State Bargaining Unit 19 (effective July 1,
2010, to July 1, 2012, inclusive), are in effect and approved by the
Legislature, the compensation and contribution for employee benefits
for state employees represented by these bargaining units shall be
at a rate consistent with the applicable memorandum of understanding
referenced above.
   (c) Expenditures related to any warrant drawn pursuant to
subdivision (a) are not augmentations to the expenditure authority of
a department. Upon the enactment of the 2011-12 Budget Act, these
expenditures shall be subsumed by the expenditure authority approved
in the 2010-11 Budget Act for each affected department.
   (d) This section shall only apply to an employee covered by the
terms of the State Bargaining Unit 5 (effective July 3, 2010, to July
3, 2013, inclusive), State Bargaining Unit 8 (effective July 1,
2010, to July 1, 2013, inclusive), State Bargaining Unit 12
(effective July 1, 2010, to July 1, 2012, inclusive), State
Bargaining Unit 16 (effective July 1, 2010, to July 1, 2012,
inclusive), State Bargaining Unit 18 (effective July 1, 2010, to July
1, 2012, inclusive), and State Bargaining Unit 19 (effective July 1,
2010, to July 1, 2012, inclusive) memoranda of understanding.
Notwithstanding Section 3517.8, this section shall not apply after
the term of the memorandum of understanding has expired. For purposes
of this section, the memorandum of understanding for State
Bargaining Unit 5 expires on July 3, 2013, the memorandum of
understanding for State Bargaining Unit 8 expires on July 1, 2013,
the memorandum of understanding for State Bargaining Unit 12 expires
on July 1, 2012, the memorandum of understanding for State Bargaining
Unit 16 expires on July 1, 2012, the memorandum of understanding for
State Bargaining Unit 18 expires on July 1, 2012, and the memorandum
of understanding for State Bargaining Unit 19 expires on July 1,
2012. 
   SEC. 8.    Section 19829.9 is added to the  
Government Code   , to read:  
   19829.9.  (a) Notwithstanding Section 13340, for the 2012-13
fiscal year, if the 2012-13 Budget Act is not enacted by July 1,
2012, for the memoranda of understanding entered into between the
state employer and State Bargaining Unit 5 (effective July 3, 2010,
to July 3, 2013, inclusive) and State Bargaining Unit 8 (effective
July 1, 2010, to July 1, 2013, inclusive), there is hereby
continuously appropriated to the Controller from the General Fund,
unallocated special funds, including, but not limited to, federal
funds and unallocated nongovernmental cost funds, and any other fund
from which state employees are compensated, the amount necessary for
the payment of compensation and employee benefits to state employees
covered by the above memoranda of understanding until the 2012-13
Budget Act is enacted. The Controller may expend an amount no greater
than necessary to enable the Controller to compensate state
employees covered by the above memoranda of understanding for work
performed between July 1, 2012, of the 2012-13 fiscal year and the
enactment of the 2012-13 Budget Act.
   (b) Notwithstanding Section 13340, solely for the effective period
of the following memoranda of understanding, and not including a
date beyond the expiration date of the following memoranda of
understanding, for the 2012-13 fiscal year, where the 2012-13 Budget
Act is not enacted by July 1, 2012, for the memoranda of
understanding entered into between the state employer and State
Bargaining Unit 12 (effective July 1, 2010, to July 1, 2012,
inclusive), State Bargaining Unit 16 (effective July 1, 2010, to July
1, 2012, inclusive), State Bargaining Unit 18 (effective July 1,
2010, to July 1, 2012, inclusive), and State Bargaining Unit 19
(effective July 1, 2010, to July 1, 2012, inclusive), there is hereby
continuously appropriated to the Controller from the General Fund,
unallocated special funds, including, but not limited to, federal
funds and unallocated nongovernmental cost funds, and any other fund
from which state employees are compensated, the amount necessary for
the payment of compensation and employee benefits to state employees
covered by the above memoranda of understanding until the 2012-13
Budget Act is enacted.
   (c) If the memoranda of understanding entered into between the
state employer and State Bargaining Unit 5 (effective July 3, 2010,
to July 3, 2013, inclusive), State Bargaining Unit 8 (effective July
1, 2010, to July 1, 2013, inclusive), State Bargaining Unit 12
(effective July 1, 2010, to July 1, 2012, inclusive), State
Bargaining Unit 16 (effective July 1, 2010, to July 1, 2012,
inclusive), State Bargaining Unit 18 (effective July 1, 2010, to July
1, 2012, inclusive), and State Bargaining Unit 19 (effective July 1,
2010, to July 1, 2012, inclusive) are in effect and approved by the
Legislature, the compensation and contribution for employee benefits
for state employees represented by these bargaining units shall be at
a rate consistent with the applicable memorandum of understanding
referenced above.
   (d) Expenditures related to any warrant drawn pursuant to
subdivisions (a) and (b) are not augmentations to the expenditure
authority of a department. Upon enactment of the 2012-13 Budget Act,
these expenditures shall be automatically subsumed by the expenditure
authority approved in the 2012-13 Budget Act for each affected
department.
   (e) This section shall only apply to an employee covered by the
terms of the State Bargaining Unit 5 (effective July 3, 2010, to July
3, 2013, inclusive), State Bargaining Unit 8 (effective July 1,
2010, to July 1, 2013, inclusive), State Bargaining Unit 12
(effective July 1, 2010, to July 1, 2012, inclusive), State
Bargaining Unit 16 (effective July 1, 2010, to July 1, 2012,
inclusive), State Bargaining Unit 18 (effective July 1, 2010, to July
1, 2012, inclusive), and State Bargaining Unit 19 (effective July 1,
2010, to July 1, 2012, inclusive) memoranda of understanding.
Notwithstanding Section 3517.8, this section shall not apply after
the term of the memorandum of understanding expires. For purposes of
this section, the memorandum of understanding for State Bargaining
Unit 5 expires on July 3, 2013, the memorandum of understanding for
State Bargaining Unit 8 expires on July 1, 2013, the memorandum of
understanding for State Bargaining Unit 12 expires on July 1, 2012,
the memorandum of understanding for State Bargaining Unit 16 expires
on July 1, 2012, the memorandum of understanding for State Bargaining
Unit 18 expires on July 1, 2012, and the memorandum of understanding
for State Bargaining Unit 19 expires on July 1, 2012. 
   SEC. 9.    Section 19829.95 is added to the 
 Government Code   , to read:  
   19829.95.  (a) Notwithstanding Section 13340, solely for the
effective period of the following memoranda of understanding, and not
including a date beyond the expiration date of the following
memoranda of understanding, for the 2013-14 fiscal year, where the
2013-14 Budget Act is not enacted by July 1, 2013, for the memoranda
of understanding entered into between the state employer and State
Bargaining Unit 5 (effective July 3, 2010, to July 3, 2013,
inclusive) and State Bargaining Unit 8 (effective July 1, 2010, to
July 1, 2013, inclusive), there is hereby continuously appropriated
to the Controller from the General Fund, unallocated special funds,
including, but not limited to, federal funds and unallocated
nongovernmental cost funds, and any other fund from which state
employees are compensated, the amount necessary for the payment of
compensation and employee benefits to state employees covered by the
above memoranda of understanding until the 2013-14 Budget Act is
enacted.
   (b) If the memoranda of understanding entered into between the
state employer and State Bargaining Unit 5 (effective July 3, 2010,
to July 3, 2013, inclusive) and State Bargaining Unit 8 (effective
July 1, 2010, to July 1, 2013, inclusive) are in effect and approved
by the Legislature, the compensation and contribution for employee
benefits for state employees represented by these bargaining units
shall be at a rate consistent with the applicable memorandum of
understanding referenced above.
   (c) Expenditures related to any warrant drawn pursuant to
subdivision (a) are not augmentations to the expenditure authority of
a department. Upon the enactment of the 2013-14 Budget Act, these
expenditures shall be subsumed by the expenditure authority approved
in the 2013-14 Budget Act for each affected department.
   (d) This section shall only apply to an employee covered by the
terms of the State Bargaining Unit 5 (effective July 3, 2010, to July
3, 2013, inclusive) and State Bargaining Unit 8 (effective July 1,
2010, to July 1, 2013, inclusive) memoranda of understanding.
Notwithstanding Section 3517.8, this section shall not apply after
the term of the memorandum of understanding expires. For purposes of
this section, the memorandum of understanding for State Bargaining
Unit 5 expires on July 3, 2013, and the memorandum of understanding
for State Bargaining Unit 8 expires on July 1, 2013. 
   SEC. 10.    Section 19999.3 of the  
Government Code   is amended to read: 
   19999.3.  (a) The Legislature finds and declares that this chapter
is intended to provide an alternate retirement program for new state
employees who are members of the Public Employees' Retirement System
pursuant to Section 20281.5 and who, during the 24 months of
employment following the date they qualify for membership in the
system pursuant to that section, do not make contributions into the
defined benefit retirement program.
   (b) The Legislature hereby authorizes the development of a
retirement program under the Deferred Compensation Plan, the
tax-deferred Savings Plan, or any other acceptable defined
contribution plan.
   (c) The state employees described in subdivision (a) who are
employed in positions that are subject to the federal system, as
defined in Section 20033, shall contribute to the retirement program
5 percent of compensation, as set forth in Part 3 (commencing with
Section 20000), in excess of five hundred thirteen dollars ($513) per
month paid  to  that member for service rendered. The state
employer shall pick up the contribution, as authorized by Section
414(h) of the Internal Revenue Code, and shall deduct the
contribution from the employee's compensation. The contributions
required by this subdivision shall cease when the state employee
begins making contributions to the defined benefit retirement
program.
   (d) State employees hired on or after July 1, 2006, who are
represented by State Bargaining Unit 2 and are employed in positions
that are subject to the federal system, as defined in Section 20033,
shall contribute to the retirement program 6 percent of compensation,
as set forth in Part 3 (commencing with Section 20000), in excess of
five hundred thirteen dollars ($513) per month paid  to 
that member for service rendered. The state employer shall pick up
the contribution, as authorized by Section 414 (h) of the Internal
Revenue Code, and shall deduct the contribution from the employee's
compensation. The contributions required by this subdivision shall
cease when the state employee begins making contributions to the
defined benefit retirement program. 
   (e) Beginning with the first pay period following the effective
date of this subdivision, all state employees who are subject to this
section shall make contributions required by this section in the
same amount as contributions made by employees in the same employment
classifications and state bargaining units who are members subject
to Part 3 (commencing with Section 20000) of Division 5 of Title 2.
Consistent with the normal rate of contribution for all members
identified in this subdivision, the Director of the Department of
Personnel Administration may exercise his or her discretion to
establish the normal rate of contribution for a related state
employee who is excepted from the definition of "state employee" in
subdivision (c) of Section 3513, and an officer or employee of the
executive branch of state government who is not a member of the civil
service.  
   (e) 
    (f)  (1) "State employees," as used in this section,
include employees, as defined in Section 19815.
   (2) This section shall not apply to employees of the California
State University, the University of California, or the legislative or
judicial branch. 
   (f) 
    (g)  If the retirement program authorized by this
section is inconsistent with federal laws or rules or becomes
unnecessary under state or federal law, this section shall become
inoperative.
   SEC. 11.   Section 20037.14 is added to the 
 Government Code   , to read:  
   20037.14.  (a) Notwithstanding Sections 20035 and 20037, final
compensation for a person who is employed by the state for the first
time and becomes a state member of the system on or after October 31,
2010, and is represented by State Bargaining Units 5 or 8, means the
highest average annual compensation earnable by the member during
the consecutive 36-month period immediately preceding the effective
date of his or her retirement, or the date of his or her last
separation from state service if earlier, or during any other period
of 36 consecutive months during his or her state membership that the
member designates on the application for retirement.
   (b) This section applies to service credit accrued while a member
of State Bargaining Unit 5 or 8 or in a class related to State
Bargaining Unit 5 or 8 as an employee who is excepted from the
definition of "state employee" in subdivision (c) of Section 3513, or
an officer or employee of the executive branch of state government
who is not a member of the civil service.
   (c) This section does not apply to:
   (1) Former state employees previously employed before October 31,
2010, who return to state employment on or after October 31, 2010.
   (2) State employees hired prior to October 31, 2010, who were
subject to Section 20281.5 during the first 24 months of state
employment.
   (3) State employees hired prior to October 31, 2010, who become
subject to representation by State Bargaining Unit 5 or 8 on or after
October 31, 2010.
   (4) State employees on an approved leave of absence employed
before October 31, 2010, who return to active employment on or after
October 31, 2010. 
   SEC. 12.    Section 20677.6 is added to the 
 Government Code   , to read:  
   20677.6.  (a) Notwithstanding Section 20677.4, effective with the
beginning of the pay period following the effective date of this
section, the normal rate of contribution for state miscellaneous or
state industrial members who are represented by State Bargaining
Units 12, 16, 18, and 19, shall be:
   (1) Eleven percent of the compensation in excess of three hundred
seventeen dollars ($317) per month paid to a member whose service is
not included in the federal system.
                                                      (2) Ten percent
of compensation in excess of five hundred thirteen dollars ($513)
per month paid to that member whose service has been included in the
federal system.
   (b) 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 the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless and until approved by
the Legislature in the annual Budget Act.
   (c) Consistent with the normal rate of contribution for all
members identified in this subdivision, the Director of the
Department of Personnel Administration may exercise his or her
discretion to establish the normal rate of contribution for a related
state employee who is excepted from the definition of "state
employee" in subdivision (c) of Section 3513, and an officer or
employee of the executive branch of state government who is not a
member of the civil service. 
   SEC. 13.   Section 20677.7 is added to the  
Government Code   , to read:  
   20677.7.  (a) Notwithstanding Section 20677.4, effective with the
beginning of the September 2010 pay period, the normal rate of
contribution for state miscellaneous or state industrial members who
are represented by State Bargaining Units 5 and 8, shall be:
   (1) Eleven percent of the compensation in excess of three hundred
seventeen dollars ($317) per month paid to a member whose service is
not included in the federal system.
   (2) Ten percent of compensation in excess of five hundred thirteen
dollars ($513) per month paid to that member whose service has been
included in the federal system.
   (b) 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 the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless and until approved by
the Legislature in the annual Budget Act.
   (c) Consistent with the normal rate of contribution for all
members identified in this subdivision, the Director of the
Department of Personnel Administration may exercise his or her
discretion to establish the normal rate of contribution for a related
state employee who is excepted from the definition of "state
employee" in subdivision (c) of Section 3513, and an officer or
employee of the executive branch of state government who is not a
member of the civil service. 
   SEC. 14.    Section 20677.8 is added to the 
 Government Code   , to read:  
   20677.8.  (a) Notwithstanding Sections 20681 and 20694, effective
with the beginning of the September 2010 pay period, the normal rate
of contribution for patrol members shall be 10 percent of the
compensation in excess of eight hundred sixty-three dollars ($863)
per month paid to those members.
   (b) 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 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.
   (c) Consistent with the normal rate of contribution for all
members identified in this subdivision, the Director of the
Department of Personnel Administration may exercise his or her
discretion to establish the normal rate of contribution for a related
state employee who is excepted from the definition of "state
employee" in subdivision (c) of Section 3513, and an officer or
employee of the executive branch of state government who is not a
member of the civil service. 
   SEC. 15.    Section 20677.9 is added to the 
 Government Code   , to read:  
   20677.9.  (a) Notwithstanding Section 20683, effective with the
beginning of the pay period following the effective date of this
section, the normal rate of contribution for state safety members who
are represented by State Bargaining Units 12, 16, 18, and 19 shall
be 11 percent of compensation in excess of three hundred seventeen
dollars ($317) per month paid to a member whose service is not
included in the federal system or in excess of five hundred thirteen
dollars ($513) for one whose service is included in the federal
system.
   (b) 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 the memorandum of understanding require the expenditure of funds,
those provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
   (c) Consistent with the normal rate of contribution for all
members identified in this subdivision, the Director of the
Department of Personnel Administration may exercise his or her
discretion to establish the normal rate of contribution for a related
state employee who is excepted from the definition of "state
employee" in subdivision (c) of Section 3513, and an officer or
employee of the executive branch of state government who is not a
member of the civil service. 
   SEC. 16.    Section 21353 of the  
Government Code   is amended to read: 
   21353.  (a) The combined current and prior service pensions for a
local miscellaneous member, a school member, a state miscellaneous or
state industrial member, or a university member is a pension derived
from the contributions of the employer sufficient, when added to the
service retirement annuity that is derived from the accumulated
normal contributions of the member at the date of retirement, to
equal the fraction of one-fiftieth of the member's final compensation
set forth opposite the member's age at retirement, taken to the
preceding completed quarter year, in the following table, multiplied
by the number of years of current and prior service except service in
a category of membership other than that of state or state
industrial member, local miscellaneous member, school member, or a
university member, or service covered under this First Tier
retirement formula, with which the member is entitled to be credited
at retirement:
  Age of
Retirement                            Fraction
50 ...............................       .546
50 1/4 ...........................       .554
50 1/2 ...........................       .562
50 3/4 ...........................       .570
51 ...............................       .578
51 1/4 ...........................       .586
51 1/2 ...........................       .595
51 3/4 ...........................       .603
52 ...............................       .612
52 1/4 ...........................       .621
52 1/2 ...........................       .630
52 3/4 ...........................       .639
53 ...............................       .648
53 1/4 ...........................       .658
53 1/2 ...........................       .668
53 3/4 ...........................       .678
54 ...............................       .688
54 1/4 ...........................       .698
54 1/2 ...........................       .709
54 3/4 ...........................       .719
55 ...............................       .730
55 1/4 ...........................       .741
55 1/2 ...........................       .753
55 3/4 ...........................       .764
56 ...............................       .776
56 1/4 ...........................       .788
56 1/2 ...........................       .800
56 3/4 ...........................       .813
57 ...............................       .825
57 1/4 ...........................       .839
57 1/2 ...........................       .852
57 3/4 ...........................       .865
58 ...............................       .879
58 1/4 ...........................       .893
58 1/2 ...........................       .908
58 3/4 ...........................       .923
59 ...............................       .937
59 1/4 ...........................       .953
59 1/2 ...........................       .969
59 3/4 ...........................       .985
60 ...............................      1.000
60 1/4 ...........................      1.017
60 1/2 ...........................      1.034
60 3/4 ...........................      1.050
61 ...............................      1.067
61 1/4 ...........................      1.084
61 1/2 ...........................      1.101
61 3/4 ...........................      1.119
62 ...............................      1.136
62 1/4 ...........................      1.154
62 1/2 ...........................      1.173
62 3/4 ...........................      1.191
63 and over ......................      1.209


   (b) The fractions specified in the above table shall be reduced by
one-third as applied to that part of final compensation that does
not exceed four hundred dollars ($400) per month for all service of a
member any of whose service has been included in the federal system.
This reduction shall not apply to a member employed by a contracting
agency that enters into a contract after July 1, 1971, and elects
not to be subject to this paragraph or with respect to service
rendered after the termination of coverage under the federal system
with respect to the coverage group to which the member belongs.
   (c) The improved retirement allowance provided by this section is
granted subject to future reduction prior to a member's retirement,
by offset of federal system benefits or otherwise, as the Legislature
may from time to time deem appropriate because of changes in the
federal system benefits.
   (d) With the exception of state miscellaneous members for service
rendered for the California State University or the legislative or
judicial branch of government, this section shall apply to state
miscellaneous and state industrial members who are not employed by
the state on or after January 1, 2000. 
   (e) (1) This section shall apply to a state miscellaneous or
industrial member who is employed by the state for the first time and
becomes a state miscellaneous or industrial member of the system on
or after the first day of the pay period following the effective date
of the act adding this subdivision, and is represented by State
Bargaining Unit 12, 16, 18, or 19. With respect to related state
miscellaneous or industrial members in managerial, supervisory, or
confidential positions and officers or employees of the executive
branch of state government who are not members of the civil service,
the Director of the Department of Personnel Administration may
exercise his or her discretion whether to approve their status in
writing to the board.  
   (2) This subdivision does not apply to:  
   (A) Former state employees previously employed before the first
day of the pay period following the effective date of this
subdivision, who return to state employment on or after the first day
of the pay period following the effective date of this subdivision.
 
   (B) State employees hired prior to the first day of the pay period
following the effective date of this subdivision, who were subject
to Section 20281.5 during the first 24 months of state employment.
 
   (C) State employees hired prior to the first day of the pay period
following the effective date of this subdivision, who become subject
to representation by State Bargaining Unit 12, 16, 18, or 19 on or
after the first day of the pay period following the effective date of
the act adding this subdivision.  
   (D) State employees on an approved leave of absence employed
before the first day of the pay period following the effective date
of this subdivision, who return to active employment on or after the
first day of the pay period following the effective date of the act
adding this subdivision.  
   (f) (1) This section shall apply to a state miscellaneous or
industrial member who is employed by the state for the first time and
becomes a state miscellaneous or industrial member of the system on
or after October 31, 2010, and is represented by State Bargaining
Unit 5 or 8. With respect to related state miscellaneous or
industrial members in managerial, supervisory, or confidential
positions and officers or employees of the executive branch of state
government who are not members of the civil service, the Director of
the Department of Personnel Administration may exercise his or her
discretion whether to approve their status in writing to the board.
 
   (2) This subdivision does not apply to:  
   (A) Former state employees previously employed before October 31,
2010, who return to state employment on or after October 31, 2010.
 
   (B) State employees hired prior to October 31, 2010, who were
subject to Section 20281.5 during the first 24 months of state
employment.  
   (C) State employees hired prior to October 31, 2010, who become
subject to representation by State Bargaining Unit 5 or 8 on or after
October 31, 2010.  
   (D) State employees on an approved leave of absence employed
before October 1, 2010, who return to active employment on or after
October 31, 2010. 
   SEC. 17.    Section 21354.1 of the  
Government Code   is amended to read: 
   21354.1.  (a) The combined current and prior service pensions for
school members, state miscellaneous or state industrial members, or
university members who are subject to the provisions of this section
is a pension derived from the contributions of the employer
sufficient, when added to the service retirement annuity that is
derived from the accumulated normal contributions of the member at
the date of retirement, to equal the fraction of one-fiftieth of the
member's final compensation set forth opposite the member's age at
retirement, taken to the preceding completed quarter year, in the
following table, multiplied by the number of years of current and
prior service, except service in a category of membership other than
that of a school member, state miscellaneous or state industrial
member, or university member or service covered under this retirement
formula with which the member is entitled to be credited at
retirement:
   Age at
  retirement                            Fraction
50 ...............................       0.550
50 1/4 ...........................       0.573
50 1/2 ...........................       0.595
50 3/4 ...........................       0.618
51 ...............................       0.640
51 1/4 ...........................       0.663
51 1/2 ...........................       0.685
51 3/4 ...........................       0.708
52 ...............................       0.730
52 1/4 ...........................       0.753
52 1/2 ...........................       0.775
52 3/4 ...........................       0.798
53 ...............................       0.820
53 1/4 ...........................       0.843
53 1/2 ...........................       0.865
53 3/4 ...........................       0.888
54 ...............................       0.910
54 1/4 ...........................       0.933
54 1/2 ...........................       0.955
54 3/4 ...........................       0.978
55 ...............................       1.000
55 1/4 ...........................       1.008
55 1/2 ...........................       1.016
55 3/4 ...........................       1.024
56 ...............................       1.032
56 1/4 ...........................       1.040
56 1/2 ...........................       1.048
56 3/4 ...........................       1.055
57 ...............................       1.063
57 1/4 ...........................       1.071
57 1/2 ...........................       1.079
57 3/4 ...........................       1.086
58 ...............................       1.094
58 1/4 ...........................       1.102
58 1/2 ...........................       1.110
58 3/4 ...........................       1.118
59 ...............................       1.125
59 1/4 ...........................       1.134
59 1/2 ...........................       1.141
59 3/4 ...........................       1.149
60 ...............................       1.157
60 1/4 ...........................       1.165
60 1/2 ...........................       1.173
60 3/4 ...........................       1.180
61 ...............................       1.188
61 1/4 ...........................       1.196
61 1/2 ...........................       1.203
61 3/4 ...........................       1.211
62 ...............................       1.219
62 1/4 ...........................       1.227
62 1/2 ...........................       1.235
62 3/4 ...........................       1.243
63 and over ......................       1.250


   (b) The fraction specified in the above table shall be reduced by
one-third as applied to that part of final compensation that does not
exceed four hundred dollars ($400) per month for all service of a
member any of whose service has been included in the federal system.
This subdivision shall not apply to school members whose service is
included in the federal system with respect to service performed on
or after January 1, 2001.
   (c) This section shall supersede Section 21353 for all school
members, all university members, and all state miscellaneous members,
with respect to service rendered for the California State University
or the legislative or judicial branch of government, who retire on
or after January 1, 2000.
   (d) This section shall also supersede Section 21353 for state
miscellaneous or state industrial members, for service not subject to
subdivision (c), who are employed by the state on or after January
1, 2000, and who do not elect under Section 21070.5 to be subject to
Second Tier benefits.
   (e) Operation and application of this section are subject to the
limitations set forth in Section 21251.13. 
   (f) Notwithstanding any other provision of this section, this
section shall not apply to a state miscellaneous or industrial member
who is employed by the state for the first time and becomes a state
miscellaneous or industrial member of the system on or after the
first day of the pay period following the effective date of the act
adding this subdivision, and is represented by State Bargaining Unit
12, 16, 18, or 19. With respect to related state miscellaneous or
industrial members in managerial, supervisory, or confidential
positions and officers or employees of the executive branch of state
government who are not members of the civil service, the Director of
the Department of Personnel Administration may exercise his or her
discretion whether to approve their status in writing to the board.
 
   (g) Notwithstanding any other provision of this section, this
section shall not apply to a state miscellaneous or industrial member
who is employed by the state for the first time and becomes a state
miscellaneous or industrial member of the system on or after October
31, 2010, and is represented by State Bargaining Unit 5 or 8. With
respect to related state miscellaneous or industrial members in
managerial, supervisory, or confidential positions and officers or
employees of the executive branch of state government who are not
members of the civil service, the Director of the Department of
Personnel Administration may exercise his or her discretion whether
to approve their status in writing to the board. 
   SEC. 18.    Section 21362.2 of the  
Government Code   is amended to read: 
   21362.2.  (a) Upon attaining the age of 50 years or more, the
combined current and prior service pension for state patrol members
and for local safety members with respect to local safety service
rendered to a contracting agency that is subject to the provisions of
this section is a pension derived from the contributions of the
employer sufficient when added to the service retirement annuity that
is derived from the accumulated normal contributions of the member
at the date of his or her retirement to equal 3 percent of his or her
final compensation at retirement, multiplied by the number of years
of patrol service or local safety service subject to this section
with which he or she is credited at retirement.
   (b) In no event shall the current service pension and the combined
current and prior service pensions under this section for all
service to all employers exceed an amount that, when added to the
service retirement annuity related to that service, equals 85 percent
of final compensation. For state patrol members with respect to
service for all state employers under this section, the benefit shall
not exceed 90 percent of final compensation. If the pension relates
to service to more than one employer and would otherwise exceed that
maximum, the pension payable with respect to each employer shall be
reduced in the same proportion as the allowance based on service to
that employer bears to the total allowance computed as though there
were no limit, so that the total of the pensions shall equal the
maximum. Where a state or local member has service under this section
with both state and local agency employers, the higher maximum shall
apply and the additional benefit shall be funded by increasing the
member's pension payable with respect to the employer for whom the
member performed the service subject to the higher maximum.
   (c) For patrol members employed by the state on or after January
1, 2000, this section shall supersede Section 21362.
   (d) This section shall not apply to state safety or state peace
officer/firefighter members.
   (e) This section shall not apply to any contracting agency nor its
employees unless and until the agency elects to be subject to the
provisions of this section by amendment to its contract made in the
manner prescribed for approval of contracts or, in the case of
contracts made after the date this section becomes operative, by
express provision in the contract making the contracting agency
subject to this section. The operative date of this section for a
local safety member shall be the effective date of the amendment to
his or her employer's contract electing to be subject to this
section.
   (f) This section shall supersede Section 21362, 21363, 21363.1,
21366, 21368, 21369, or 21370, whichever is then applicable, with
respect to local safety members who retire after the date this
section becomes applicable to their respective employers.
   (g) The Legislature reserves, with respect to any member subject
to this section, the right to provide for the adjustment of
industrial disability retirement allowances because of earnings of a
retired person and modification of the conditions and qualifications
required for retirement for disability as it may find appropriate
because of the earlier ages of service retirement made possible by
the benefits under this section.
   (h) Operation and application of this section is subject to the
limitations set forth in Section 21251.13. 
   (i) Notwithstanding any other provision of this section, this
section shall not apply to a state patrol member who is employed by
the state for the first time and becomes a state patrol member of the
system on or after October 31, 2010, and is represented by State
Bargaining Unit 5. With respect to related state patrol members in
managerial, supervisory, or confidential positions and officers or
employees of the executive branch of state government who are not
members of the civil service, the Director of the Department of
Personnel Administration may exercise his or her discretion whether
to approve their status in writing to the board. 
   SEC. 19.    Section 21363.1 of the  
Government Code   is amended to read: 
   21363.1.  (a) The combined current and prior service pensions for
state peace officer/firefighter members subject to this section with
respect to state peace officer/firefighter service, and for local
safety members with respect to local safety service rendered to a
contracting agency that is subject to this section, is a pension
derived from the contributions of the employer sufficient when added
to the service retirement annuity that is derived from the
accumulated normal contributions of the state peace
officer/firefighter member or local safety member at the date of his
or her retirement to equal the fraction of 3 percent of his or her
final compensation set forth opposite his or her age at retirement
taken to the preceding completed quarter year, in the following
table, multiplied by the number of years of state peace
officer/firefighter service or local safety service subject to this
section with which he or she is credited at retirement:
            Age at
Retirement                  Fraction
50 ........................ .800
50 1/4 .................... .810
50 1/2 .................... .820
50 3/4 .................... .830
51  ....................... .840
51 1/4 .................... .850
51 1/2 .................... .860
51 3/4 .................... .870
52  ....................... .880
52 1/4 .................... .890
52 1/2 .................... .900
52 3/4 .................... .910
53  ....................... .920
53 1/4 .................... .930
53 1/2 .................... .940
53 3/4 .................... .950
54  ....................... .960
54 1/4 .................... .970
54 1/2 .................... .980
54 3/4 .................... .990
55 and over  .............. 1.000


   (b) In no event shall the current service pension and the combined
current and prior service pensions under this section for all
service to all employers exceed an amount that, when added to the
service retirement annuity related to that service, equals 85 percent
of final compensation. For state peace officer/firefighter members
with respect to service for all state employers under this section,
the benefit shall not exceed 90 percent of final compensation. If the
pension relates to service to more than one employer and would
otherwise exceed that maximum, the pension payable with respect to
each employer shall be reduced in the same proportion as the
allowance based on service to that employer bears to the total
allowance computed as though there were no limit, so that the total
of the pensions shall equal the maximum. Where a state or local
member has service under this section with both state and local
agency employers, the higher maximum shall apply and the additional
benefit shall be funded by increasing the member's pension payable
with respect to the employer for whom the member performed the
service subject to the higher maximum.
   (c) This section shall supersede Section 21363 for state peace
officer/firefighter members with respect to service rendered for the
California State University or the legislative or judicial branch of
government.
   (d) This section shall also supersede Section 21363 for state
peace officer/firefighter members, for service not subject to
subdivision (c), who are employed by the state on or after January 1,
2000.
   (e) This section shall not apply to any contracting agency nor its
employees unless and until the agency elects to be subject to the
provisions of this section by amendment to its contract made in the
manner prescribed for approval of contracts or, in the case of
contracts made after the date this section becomes operative, by
express provision in the contract making the contracting agency
subject to this section. The operative date of this section for a
local safety member shall be the effective date of the amendment to
his or her employer's contract electing to be subject to this
section.
   (f) This section shall supersede Section 21363, 21366, 21368,
21369, or 21370, whichever is then applicable, with respect to local
safety members who retire after the date this section becomes
applicable to their respective employers.
   (g) The Legislature reserves, with respect to any member subject
to this section, the right to provide for the adjustment of
industrial disability retirement allowances because of earnings of a
retired person and modification of the conditions and qualifications
required for retirement for disability as it may find appropriate
because of the earlier age of service retirement made possible by the
benefits under this section.
   (h) The Legislature reserves the right to subsequently modify or
amend this part in order to completely effectuate the intent and
purposes of this section and the right to not provide any new
comparable advantages if disadvantages to employees result from any
modification or amendment.
   (i) Operation and application of this section are subject to the
limitations set forth in Section 21251.13. 
   (j) This section shall apply to a state patrol member who is
employed by the state for the first time and becomes a state patrol
member of the system on or after October 31, 2010, and is represented
by State Bargaining Unit 5. With respect to related state patrol
members in managerial, supervisory, or confidential positions and
officers or employees of the executive branch of state government who
are not members of the civil service, the Director of the Department
of Personnel Administration may exercise his or her discretion
whether to approve their status in writing to the board.  
   (k) This section shall apply to a state peace officer/firefighter
member who is employed by the state for the first time and becomes a
state peace officer/firefighter member of the system on or after
October 31, 2010, and is represented by State Bargaining Unit 8. With
respect to related state peace officer/firefighter members in
managerial, supervisory, or confidential positions and officers or
employees of the executive branch of state government who are not
members of the civil service, the Director of the Department of
Personnel Administration may exercise his or her discretion whether
to approve their status in writing to the board.  
   (l) Subdivisions (j) and (k) do not apply to:  
   (1) Former state employees previously employed before October 31,
2010, who return to state employment on or after October 31, 2010.
 
   (2) State employees hired prior to October 31, 2010, who were
subject to Section 20281.5 during the first 24 months of state
employment.  
   (3) State employees hired prior to October 31, 2010, who become
subject to representation by State Bargaining Unit 5 or 8 on or after
October 31, 2010.  
   (4) State employees on an approved leave of absence employed
before October 31, 2010, who return to active employment on or after
October 31, 2010. 
   SEC. 20.    Section 21369.1 of t   he 
 Government Code   is amended to read: 
   21369.1.  (a) The combined current and prior service pensions for
state safety members subject to this section with respect to state
safety service that is subject to this section is a pension derived
from the contributions of the employer sufficient when added to the
service retirement annuity that is derived from the accumulated
normal contributions of the state safety member at the date of his or
her retirement to equal the fraction of one-fiftieth of his or her
final compensation set forth opposite his or her age at retirement
taken to the preceding completed quarter year, in the following
table, multiplied by the number of years of state safety service
subject to this section with which he or she is credited at
retirement.
   Age at
  Retirement                         Fraction
50 ............................      0.8500
50 1/4 ........................      0.8625
50 1/2 ........................      0.8750
50 3/4 ........................      0.8875
51 ............................      0.9000
51 1/4 ........................      0.9125
51 1/2 ........................      0.9250
51 3/4 ........................      0.9375
52 ............................      0.9500
52 1/4 ........................      0.9625
52 1/2 ........................      0.9750
52 3/4 ........................      0.9875
53 ............................      1.0000
53 1/4 ........................      1.0320
53 1/2 ........................      1.0630
53 3/4 ........................      1.0940
54 ............................      1.1250
54 1/4 ........................      1.1570
54 1/2 ........................      1.1880
54 3/4 ........................      1.2190
55 and over ...................      1.2500


   (b) For state safety members with respect to service for all state
employers under this section, the benefit shall not exceed 80
percent of final compensation. If the pension relates to service to
more than one employer, and would otherwise exceed that maximum, the
pension payable with respect to each employer shall be reduced in the
same proportion as the allowance based on service to that employer
bears to the total allowance computed as though there were no limit,
so that the total of the pensions shall equal the maximum.
   (c) This section shall supersede Section 21369 for state safety
members with respect to service rendered for the California State
University.
   (d) This section shall also supersede Section 21369 for state
safety members, for service not subject to subdivision (c), who are
employed by the state on or after January 1, 2000.
   (e) The Legislature reserves, with respect to any member subject
to this section, the right to provide for the adjustment of
industrial disability retirement allowances because of earnings of a
retired person and modification of the conditions and qualifications
required for retirement for disability as it may find appropriate
because of the earlier age of service retirement made possible by the
benefits under this section.
   (f) The Legislature reserves the right to subsequently modify or
amend this part in order to completely effectuate the intent and
purposes of this section and the right to not provide any new
comparable advantages if disadvantages to employees result from any
modification or amendment.
   (g) Operation and application of this section are subject to the
limitations set forth in Section 21251.13. 
   (h) Notwithstanding any other provision of this section, this
section shall not apply to a state safety member who is employed by
the state for the first time and becomes a state safety member of the
system on or after the first day of the pay period following the
effective date of the act adding this subdivision, and is represented
by State Bargaining Unit 12, 16, 18, or 19. With respect to related
state safety members in managerial, supervisory, or confidential
positions and officers or employees of the executive branch of state
government who are not members of the civil service, the Director of
the Department of Personnel Administration may exercise his or her
discretion whether to approve their status in writing to the board.

   SEC. 21.    Section 21369.2 is added to the 
 Government Code   , to read: 
   21369.2.  (a) The combined prior and current service pension for a
state safety member, upon retirement after attaining the age of 55
years, is a pension derived from contributions of an employer
sufficient, when added to that portion of the service retirement
annuity that is derived from the accumulated normal contributions of
the member at the date of his or her retirement, to equal
one-fiftieth of his or her final compensation multiplied by the
number of years of state safety, that is credited to him or her as a
state safety member subject to this section at retirement.
   (b) Upon retirement for service prior to attaining the age of 55
years, the percentage of final compensation payable for each year of
credited service that is subject to this section shall be the product
of 2 percent multiplied by the factor set forth in the following
table for his or her actual age at retirement: 
    Age at 
   Retirement                         Fraction 
    50 ..........................      0.713 
    50 1/4.......................      0.725 
    50 1/2.......................      0.737 
    50 3/4.......................      0.749 
    51 ..........................      0.761 
    51 1/4.......................      0.775 
    51 1/2.......................      0.788 
    51 3/4.......................      0.801 
    52 ..........................      0.814 
    52 1/4.......................      0.828 
    52 1/2.......................      0.843 
    52 3/4.......................      0.857 
    53 ..........................      0.871 
    53 1/4.......................      0.886 
    53 1/2.......................      0.902 
    53 3/4.......................      0.917 
    54 ..........................      0.933 
    54 1/4.......................      0.950 
    54 1/2.......................      0.966 
    54 3/4.......................      0.983 
    55 ..........................      1.0000 
    55 1/4.......................      1.0125 
    55 1/2.......................      1.0250 
    55 3/4.......................      1.0375 
    56 ..........................      1.0500 
    56 1/4.......................      1.0625 
    56 1/2.......................      1.0750 
    56 3/4.......................      1.0875 
    57 ..........................      1.1000 
    57 1/4.......................      1.1125 
    57 1/2.......................      1.1250 
    57 3/4.......................      1.1375 
    58 ..........................      1.1500 
    58 1/4.......................      1.1625 
    58 1/2.......................      1.1750 
    58 3/4.......................      1.1875 
    59 ..........................      1.2000 
    59 1/4.......................      1.2125 
    59 1/2.......................      1.2250 
    59 3/4.......................      1.2375 
    60 and over .................      1.2500 


   (c) In no event shall the total pension for all service under this
section exceed an amount that, when added to the service retirement
annuity related to that service, equals 80 percent of final
compensation. If the pension relates to service to more than one
employer and would otherwise exceed that maximum, the pension payable
with respect to each employer shall be reduced in the same
proportion as the allowance based on service to that employer bears
to the total allowance computed as though there were no limit, so
that the total of those pensions shall equal the maximum. Where a
state member has service under this section with both state and local
agency employers, the higher maximum shall apply and the additional
benefit shall be funded by increasing the member's pension payable
with respect to the employer for whom the member performed the
service subject to the higher maximum.
   (d) The Legislature reserves, with respect to any member subject
to this section, the right to provide for the adjustment of
industrial disability retirement allowances because of earnings of a
retired person and modification of the conditions and qualifications
required for retirement for disability as it may find appropriate
because of the earlier age of service retirement made possible by the
benefits under this section.
   (e) This section shall apply to a state safety member who is
employed by the state for the first time and becomes a state safety
member of the system on or after the first day of the pay period
following the effective date of this section, and is represented by
State Bargaining Unit 12, 16, 18, or 19. With respect to related
state safety members in managerial, supervisory, or confidential
positions and officers or employees of the executive branch of state
government who are not members of the civil service, the Director of
the Department of Personnel Administration may exercise his or her
discretion whether to approve their status in writing to the board.
   (f) This section does not apply to:
   (1) Former state employees previously employed before the first
day of the pay period following the effective date of this
subdivision, who return to state employment on or after the first day
of the pay period following the effective date of this subdivision.
   (2) State employees hired prior to the first day of the pay period
following the effective date of this subdivision, who were subject
to Section 20281.5 during the first 24 months of state employment.
   (3) State employees hired prior to the first day of the pay period
following the effective date of this subdivision, who become subject
to representation by State Bargaining Unit 12, 16, 18, or 19 on or
after the first day of the pay period following the effective date of
this subdivision.
   (4) State employees on an approved leave of absence employed
before the first day of the pay period following the effective date
of this subdivision, who return to active employment on or after the
first day of the pay period following the effective date of this
subdivision. 
   SEC. 22.    Section 22874.1 is added to the 
 Government Code   , to read:  
   22874.1.  (a) Notwithstanding Sections 22870, 22871, 22873, and
22874 a state employee, defined by subdivision (c) of Section 3513,
who is employed by the state for the first time, and is represented
by State Bargaining Unit 12, who becomes a state member of the system
on or after January 1, 2011, may not receive any portion of the
employer contribution payable for annuitants unless the person is
credited with 15 years of state service at the time of retirement.
   (b) The percentage of the employer contribution payable for
postretirement health benefits for an employee subject to this
section shall be based on the completed years of credited state
service at retirement as shown in the following table: 
                               Credited Years 
 Years of Service             Percentage 
 Contribution 
                               of Employer 
                               Contribution 
 15.......................... 50 
 16.......................... 55 
 17.......................... 60 
 18.......................... 65 
 19.......................... 70 
 20.......................... 75 
 21.......................... 80 
 22.......................... 85 
 23.......................... 90 
 24.......................... 95 
 25 or more.................. 100 


   (c) This section shall apply only to state employees who retire
for service. For purposes of this section, "state service" means
service rendered as an employee of the state or an appointed or
elected officer of the state for compensation. Notwithstanding
Section 22826, for purposes of this section, credited state service
includes service to the state for which the employee, pursuant to
Section 20281.5, did not receive credit.
   (d) This section does not apply to:
   (1) Former state employees previously employed before January 1,
2011, who return to state employment on or after January 1, 2011.
   (2) State employees hired prior to January 1, 2011, who were
subject to Section 20281.5 during the first 24 months of state
employment.
   (3) State employees hired prior to January 1, 2011, who become
subject to representation by State Bargaining Unit 12 on or after
January 1, 2011.
   (4) State employees on an approved leave of absence employed
before January 1, 2011, who return to active employment on or after
January 1, 2011.
   (5) State employees hired after January 1, 2011, who are first
represented by a state bargaining unit other than State Bargaining
Unit 12.
   (6) Employees of the California State University, the judicial
branch, or the Legislature.
   (e) Notwithstanding Section 22875, this section shall also apply
to a related state employee who is excepted from the definition of
"state employee" in subdivision (c) of Section 3513, and an officer
or employee of the executive branch of state government who is not a
member of the civil service who met the requirements of this section
when employed by the state for the first time. 
   SEC. 23.    This bill shall become operative only if
Assembly Bill 1592 of the 2009-10 Regular Session is enacted and
takes effect on or before January 1, 2011. 
   SEC. 24.    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 for the provisions of this act to be applicable as soon
as possible for the 2010-11 fiscal year, and thereby facilitate the
orderly administration of state government at the earliest time
possible, it is necessary that this act take effect immediately.
 
  SECTION 1.    It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2010.