BILL NUMBER: SB 919	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 21, 2010

INTRODUCED BY   Senator Hollingsworth

                        FEBRUARY 1, 2010

    An act to amend Section 22000 of the Government Code,
relating to public retirement.   An act to amend
Sections 19816.21, 20405.1, 20677, 20677.4, 20677.5, 20681, 20683,
20683.1, 20686, 20687, 20687.2, 20689, 20694, 21   076,
21251.13, 21354.1, 21362.2, 21363.1, 21363.3, 21363.4, 21363.8,
21369.1, 22762, and 22850 of, to add Sections 20037.14, 20037.15,
20037.16, 21354.6, 21363.5, 21363.6, 21363.7, 22871.1, 22875.1, and
22894 to, and to repeal Section 20401.5 of, the Government Code,
relating to state employee benefits, making an appropriation
therefor, and declaring the urgency thereof, to take effect
immediately. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 919, as amended, Hollingsworth.  Public retirement:
social security.  State employee benefits.  
   (1) The Public Employees' Retirement Law (PERL) provides a defined
benefit to members of the Public Employees' Retirement System (PERS)
based on age at retirement, service credit, and final compensation,
as those terms are defined. Under PERL employees belong to various
membership categories, which include state safety members and state
miscellaneous members. Safety members of PERS receive a higher level
of benefits and make higher contributions than state miscellaneous
members. Under existing law, effective July 1, 2004, specified state
employee positions in State Bargaining Unit 7 are classified as state
safety members of PERS. Certain managerial, supervisory, or
confidential positions, as well as specified officers and employees
of the executive branch, by virtue of their relation to State
Bargaining Unit 7, are also classified as state safety members of
PERS.  
   This bill would provide that state employees in State Bargaining
Unit 7 first hired on or after the date the act takes effect, in job
classifications formerly subject to state safety membership prior to
that date, shall be state miscellaneous members of PERS. The bill
would provide that these provisions would apply notwithstanding a
certain statutory provision or any provision of an expired memorandum
of understanding, as specified.  
   (2) PERL defines final compensation variously based on different
member classifications, bargaining units, and dates of hire. PERL
generally provides for a definition of final compensation based on
the highest annual average compensation earnable by the member during
a designated 12-month or 36-month period.  
   This bill would provide that final compensation for a person who
becomes a state member of the system on or after the date the act
takes effect, and who is represented by State Bargaining Unit 6, 8,
9, or as a peace officer/firefighter member of State Bargaining Unit
7, means the highest annual average compensation earnable by the
member during a designated 36-month period. This bill would provide
that final compensation for a person who becomes a patrol member of
the system on or after July 3, 2010, and who is represented by State
Bargaining Unit 5, means the highest annual average compensation
earnable by the member during a designated 36-month period. The bill
would provide that these provisions would apply notwithstanding a
certain statutory provision or any provision of an expired memorandum
of understanding, as specified. The bill would also apply this
definition of final compensation to a state employee who is excepted
from the definition of state employee for purposes of state labor
relations, as specified, or an officer or employee of the executive
branch of state government who is not a member of the civil service,
who is employed by the state for the first time and becomes a state
member of the system on or after the date the act takes effect. 

   (3) PERL provides that attorneys in the offices of the Attorney
General and the State Public Defender are state miscellaneous members
of PERS. PERL authorizes state prosecutors and state public
defenders, as defined, to be included within the state safety member
classification under PERS, if agreed to in a memorandum of
understanding, as specified.  
   This bill would repeal the provisions described above that
authorize state prosecutors and state public defenders to be included
within the state safety member classification pursuant to an
agreement in a memorandum of understanding.  
   (4) PERL prescribes contribution rates for state employees who are
state miscellaneous, state industrial, state safety members, patrol
members, or state peace officer/firefighter members, among others, in
amounts based on percentages of monthly compensation. PERL reduces
those contributions by excepting from the definition of monthly
compensation specified amounts ranging between $238 and $863, based
on member classification, among other things. Member contributions
are deposited into the Public Employees' Retirement Fund, which is a
continuously appropriated trust fund.  
   This bill would increase these contribution rates for specified
state miscellaneous members, state industrial members, state safety
members, patrol members, or state peace office/firefighter members by
eliminating the exceptions from the definition of monthly
compensation of specified amounts ranging between $238 and $863, as
described above. The bill would apply these provisions
notwithstanding a specified statutory provision or any provision of
an expired memorandum of understanding, as specified. 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, state industrial members, and school members of the First
Tier, 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 state
miscellaneous and state industrial members of the Second Tier are
generally subject to a retirement formula commonly known as 1.25.
Under PERL, patrol members and specified state peace
officer/firefighter members are generally subject to a retirement
formula commonly known as 3% at 50, while other state peace
officer/firefighter members are subject to a 3% at 55 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, state
industrial members, and school members, of the First Tier, who are
first employed on and after the date the act takes effect, are
subject to a 2% at 65 retirement formula. This bill would provide
that state miscellaneous and state industrial members, of the Second
Tier, who are first employed after the date the act takes effect are
subject to a 0.5% at 65 retirement formula. The bill would provide
that patrol members who are first employed on and after July 3, 2010,
and state peace officer/firefighter members in State Bargaining Unit
6, 7, or 8 who are first employed on and after the date the act
takes effect, are subject to a 2.7% at 57 retirement formula. The
bill would provide state peace officer/firefighter members who are
first employed on and after the date the act takes effect, who are
employed by the schools, the California State University, or the
legislative or judicial branch of government, are subject to a 2.5%
at 57 retirement formula. The bill would provide that state safety
members who are first employed on and after the date the act takes
effect, are subject to a 2% at 62 retirement formula. The bill would
provide that these provisions would apply notwithstanding a certain
statutory provision or any provision of an expired memorandum of
understanding, as specified.  
   (6) The Public Employees' Medical and Hospital Care Act (PEMHCA),
which is administered by the Board of Administration of the Public
Employees' Retirement System, permits an employee or annuitant to
enroll in a health benefit plan approved or maintained by the board,
as specified. PEMHCA permits the board, without compliance with any
provision of law relating to competitive bidding, to enter into
contracts with carriers offering health care benefit plans or with
entities offering services relating to the administration of health
benefit plans. Existing law provides for a monthly appropriation from
the General Fund of amounts necessary for the administration of the
act and other specified employer contributions.  
   This bill would provide that, on and after the date the act takes
effect, another unnamed entity of the state that is authorized by
statute is within the definition of the term "board" for the purposes
of administrating the PEMHCA. By providing that General Fund moneys
that are appropriated monthly may be spent by this additional
administrative body, this bill would make an appropriation. The bill
would also allow the board, as it would be defined, without
compliance with any provision of law relating to competitive bidding,
to provide self-funded plans by contracting with entities offering
services relating to the administration of health benefit plans. By
permitting General Fund moneys appropriated monthly to be spent for a
new purpose, this bill would make an appropriation. The bill would
permit plan designs and premiums to vary in different areas of the
state.  
   (7) PEMHCA requires the state and each employee or annuitant to
contribute a portion of the cost of providing the 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. The employer contribution
payable for annuitants with at least 10 years of credited service but
less than 20 years of service is prorated based on credited state
service at the time of retirement.  
   This bill would, notwithstanding those provisions, prohibit a
state, California State University, legislative, or judicial branch
employee first hired on or after the date the act takes effect, from
receiving any portion of the employer contribution payable for
annuitants unless he or she is credited with 25 years of state
service, as defined, at the time of retirement. The bill would
provide that the employer contribution for these employees who become
annuitants or a survivor of that person, be adjusted in the annual
Budget Act. The bill would require that those adjustments be based on
the principle that the employer contribution for each annuitant
shall be the same as the highest employer contribution paid for an
active state employee.  
   (8) PEMHCA authorizes a contracting agency, as specified, to elect
to become subject to the act, along with the agency's employees and
annuitants. Existing law establishes certain minimum rates for
contracting employer contributions in this regard and requires that
the employer contribution be equal for both employees and annuitants.
 
   This bill would permit a contracting agency of PEMHCA and the
exclusive representative of employees of that agency to agree through
collective bargaining that the employer contribution for employee
and annuitant health benefits coverage for employees first hired on
or after the effective date of a memorandum of understanding may
differ from the employer contribution provided to existing employees
and annuitants. The bill would provide that these provisions are not
subject to labor negotiation impasse procedures. The bill would
require a contracting agency that applies a different contribution
rate to employees not represented by a bargaining unit to certify
that, with regard to those employees, there is not an applicable
memorandum of understanding. The bill would provide that an agreement
reached in this regard is not valid if it provides an employer
contribution for employees with less than 5 years of credited service
with the contracting agency.  
   (9) This bill would declare that it is to take effect immediately
as an urgency statute.  
   The Board of Administration of the Public Employees' Retirement
system is required, upon application by a public agency, as defined,
to execute an agreement with the federal government for the coverage
of the public employees of the agency under the federal Social
Security Act in conformity with specified regulations. 

   Existing law expresses the Legislature's policy that protection
afforded to employees in positions covered by a public retirement
system on the date that an agreement for coverage for those employees
under the federal Social Security Act is made applicable to the
service performed, or to the benefits received, under the retirement
system and that those protections are not impaired as a result of the
agreement or as a result of a legislative enactment made in
anticipation of the agreement.  
   This bill would make technical, nonsubstantive changes to that
provision. 
   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.    Section 19816.21 of the  
Government Code   is amended to read: 
   19816.21.  (a) Notwithstanding Sections 18717 and 19816.20,
effective July 1, 2004, the following officers and employees, who are
in the following classifications or positions on or after July 1,
2004,  and before the date specified in subdivision (d), 
shall be state safety members of the Public Employees' Retirement
System:
   (1) State employees in State Bargaining Unit 7 (Protective
Services and Public Services) whose job classifications are subject
to state miscellaneous membership in the Public Employees' Retirement
System, unless otherwise excluded by a memorandum of understanding.
   (2) State employees in managerial, supervisory, or confidential
positions that are related to the job classifications described in
paragraph (1) and that are subject to state miscellaneous membership
in the Public Employees' Retirement System, provided that the
Department of Personnel Administration has approved their inclusion.
   (3) Officers and employees of the executive branch of state
government who are not members of the civil service and who are in
positions that are related to the job classifications described in
paragraph (1) and that are subject to state miscellaneous membership
in the Public Employees' Retirement System, provided that the
Department of Personnel Administration has approved their inclusion.
   (b) The department shall notify the Public Employees' Retirement
System of the classes or positions that become subject to state
safety membership under this section, as prescribed in Section
20405.1. 
   (c) Notwithstanding Section 3517.8 or any provision of an expired
memorandum of understanding continued in effect pursuant to Section
3517.8, no state employee in State Bargaining Unit 7 first hired on
or after the date specified in subdivision (d), shall be a state
safety member. Any job classification for which employees were
granted state safety membership pursuant to this section prior to the
date specified in subdivision (d), shall be subject to state
miscellaneous membership on and after that date, for employees first
hired on or after that date.  
   (d) The changes made by the act adding this subdivision shall be
operative on the date the act takes effect. 
   SEC. 2.    Section 20037.14 is added to the 
 Government Code   , to read:  
   20037.14.  (a) Notwithstanding Sections 20035 and 20037, final
compensation for service credit accrued while a state 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, who is
employed by the state for the first time and becomes a state member
of the system on or after the date specified in subdivision (d),
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) Except as provided in subdivision (c), this section does not
apply to:
   (1) Former state employees who return to state employment on or
after the date specified in subdivision (d).
   (2) State employees hired prior to the date specified in
subdivision (d), who were subject to Section 20281.5 during the first
24 months of state employment.
   (3) State employees hired prior to the date specified in
subdivision (d), who become excluded or exempt employees on or after
that date.
   (4) State employees on an approved leave of absence employed
before the date specified in subdivision (d), who return to active
employment on or after that date.
   (c) Notwithstanding subdivision (b), this section shall apply to
an employee who was subject to Section 20037.6, 20037.7, 20037.8,
20037.9, 20037.10, 20037.11, 20037.12, or 20037.13 from the date of
first employment until the date specified in subdivision (d).
   (d) The changes made by the act adding this subdivision shall be
operative on the date the act takes effect. 
   SEC. 3.    Section 20037.15 is added to the 
 Government Code   , to read:  
   20037.15.  (a) Notwithstanding Sections 20035 and 20037, final
compensation for a person who becomes a state member of the system on
or after the date specified in subdivision (f), and is represented
by State Bargaining Unit 6, 8, 9, or as a peace officer/firefighter
member of State Bargaining Unit 7, 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 6, 8, 9, or as a peace officer/firefighter
member of State Bargaining Unit 7.
   (c) Except as provided in subdivision (d), this section does not
apply to:
   (1) Former state employees previously employed before the date
specified in subdivision (f), who return to state employment on or
after that date.
   (2) State employees hired prior to the date specified in
subdivision (f), who were subject to Section 20281.5 during the first
24 months of state employment.
   (3) State employees hired prior to the date specified in
subdivision (f), who become subject to representation by State
Bargaining Unit 6, 7, 8, or 9 on or after that date.
   (4) State employees on an approved leave of absence employed
before the date specified in subdivision (f), who return to active
employment on or after that date.
   (d) Notwithstanding subdivision (b), this section shall apply to
an employee who was subject to Section 20037.6, 20037.7, 20037.8,
20037.9, 20037.10, 20037.11, 20037.12, or 20037.13 from the date of
first employment until the date specified in subdivision (f).
   (e) Notwithstanding Section 3517.8 or any provision of an expired
memorandum of understanding continued in effect pursuant to Section
3517.8, this section shall control as of the date specified in
subdivision (f), without further legislative action.
   (f) The changes made by the act adding this subdivision shall be
operative on the date the act takes effect. 
   SEC. 4.    Section 20037.16 is added to the 
 Government Code   , to read: 
   20037.16.  (a) Notwithstanding Sections 20035 and 20037, final
compensation for a person who becomes a state member of the system on
or after July 3, 2010, and is represented by State Bargaining Unit
5, 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.
   (c) Except as provided in subdivision (d), this section does not
apply to:
   (1) Former state employees previously employed before July 3,
2010, who return to state employment on or after July 3, 2010.
   (2) State employees hired prior to July 3, 2010, who were subject
to Section 20281.5 during the first 24 months of state employment.
   (3) State employees hired prior to July 3, 2010, who become
subject to representation by State Bargaining Unit 5, 6, 7, 8, or 9
on or after July 3, 2010.
   (4) State employees on an approved leave of absence employed
before July 3, 2010, who return to active employment on or after July
3, 2010.
   (d) Notwithstanding subdivision (c), this section shall apply to
an employee who is subject to Section 20037.6, 20037.7, 20037.8,
20037.9, 20037.10, 20037.11, 20037.12, or 20037.13 from the date of
first employment until July 2, 2010.
   (e) Notwithstanding Section 3517.8 or any provision of an expired
memorandum of understanding continued in effect pursuant to Section
3517.8, this section shall control as of July 3, 2010, without
further legislative action. 
   SEC. 5.    Section 20401.5 of the  
Government Code   is repealed.  
   20401.5.  (a) "State safety member" also includes state
prosecutors and state public defenders.
   (b) For purposes of this part, "state prosecutor" means a state
officer or employee who meets all of the following criteria:
   (1) He or she is employed by the Department of Justice, Office of
the Attorney General.
   (2) His or her job classification is Chief Assistant Attorney
General, Senior Assistant Attorney General, Supervising Deputy
Attorney General, Deputy Attorney General, or any other similar
classification or title.
   (3) His or her effective date of retirement is on or after the
date the state employer and the bargaining unit elect to be subject
to this section as provided in subdivision (f).
   (c) For purposes of this part, "state public defender" means a
state officer or employee who meets all of the following criteria.
   (1) He or she is employed by the Office of the State Public
Defender.
   (2) His or her job classification is State Public Defender, Senior
Deputy State Public Defender, Supervising Deputy State Public
Defender, Deputy State Public Defender, or any other similar
classification or title.
   (3) His or her effective date of retirement is on or after the
date the state employer and the bargaining unit elect to be subject
to this section as provided in subdivision (f).
   (d) Past state miscellaneous service performed by a state
prosecutor or state public defender who becomes a state safety member
pursuant to this section shall be converted to state safety service
if the past service was rendered in a position that has subsequently
been reclassified as a state safety position pursuant to this
section. Any unfunded liability resulting from this section shall be
paid by the employer.
   (e) Notwithstanding any other provision of this part, state
prosecutors and state public defenders shall be subject to the
benefit formula contained in Section 21369.1, or any other benefit
formula applicable to state safety members that does not provide
benefits greater than those benefits provided under Section 21363.1.
   (f) This section does not apply to any officers or employees
described in subdivision (b) or (c) who are members of State
Bargaining Unit 2 unless and until the state employer and the
bargaining unit elect to be subject to this section by amendment to
or by express provision in a memorandum of understanding entered into
between the parties.
   (g) This section does not apply to any officer or employee
described in subdivision (b) or (c) who dies prior to the date the
state employer and the bargaining unit elect to be subject to this
section as provided in subdivision (f). 
   SEC.   6.    Section 20405.1 of the 
 Government Code   is amended to read: 
   20405.1.  Notwithstanding Section 20405, this section shall apply
to state employees in state bargaining units that have agreed to
these provisions in a memorandum of understanding between the state
employer and the recognized employee organization, as defined in
Section 3513, state employees who are excluded from the definition of
"state employee" by subdivision (c) of Section 3513, and officers or
employees of the executive branch of state government who are not
members of the civil service.
   (a) On and after the effective date of this section, state safety
members shall also include officers and employees whose
classifications or positions are found to meet the state safety
criteria prescribed in Section 19816.20, provided the Department of
Personnel Administration agrees to their inclusion, and officers and
employees whose classifications or positions have been designated as
subject to state safety membership pursuant to Section 19816.21 
before the date specified in subdivision (e)  . For employees
covered by a collective bargaining agreement, the effective date of
safety membership shall be the date on which the department and the
employees' exclusive representative reach agreement by memorandum of
understanding pursuant to Section 3517.5 or any later date specified
in the memorandum of understanding. For employees not covered by a
collective bargaining agreement, the Department of Personnel
Administration shall determine the effective date of safety
membership.
   (b) The department shall notify the board as new classes or
positions become eligible for state safety membership, as specified
in subdivision (a), and specify how service prior to the effective
date shall be credited.
   (c) The department shall prepare and submit to the Legislature an
annual report that contains the classes or positions that are
eligible for state safety membership under this section.
   (d) Any person designated as a state safety member pursuant to
this section may elect, within 90 days of notification by the board,
to remain subject to the miscellaneous or industrial service
retirement benefit and contribution rate by filing an irrevocable
election with the board. A member who so elects shall be subject to
the reduced benefit factors specified in Section 21076, 21353, or
21354.1, as applicable, only for service also included in the federal
system. 
   (e) The changes made by the act adding this subdivision shall be
operative on the date the act takes effect. 
   SEC. 7.    Section 20677 of the   Government
Code   is amended to read: 
   20677.  (a) (1) The normal rate of contribution for a state
miscellaneous member employed by the California State University, the
University, or the legislative or judicial branch whose service is
not included in the federal system shall be 6 percent of the
compensation in excess of three hundred seventeen dollars ($317) per
month paid that member for service rendered on and after July 1,
1976.
   (2) The normal rate of contribution for a school member or a local
miscellaneous member shall be 7 percent of the compensation paid
that member for service rendered on and after June 21, 1971.
   (3) Notwithstanding paragraph (2), the normal rate of contribution
for a local miscellaneous member subject to Section 21354.3,
21354.4, or 21354.5 shall be 8 percent of the compensation paid that
member for service rendered on and after the date the member's
contracting agency elects to be subject to that section.
   (4) The normal rate of contribution as established under this
subdivision for a local miscellaneous or school member whose service
is included in the federal system, and whose service retirement
allowance is reduced under Section 21353, 21354, 21354.1, 21354.3,
21354.4, or 21354.5 because of that inclusion, shall be reduced by
one-third as applied to compensation not exceeding four hundred
dollars ($400) per month for service after the date of execution of
the agreement including service in the federal system and prior to
termination of the agreement with respect to the coverage group to
which he or she belongs. Notwithstanding the foregoing, effective
January 1, 2001, the normal rate of contribution for school members
whose service is included in the federal system shall not be reduced
pursuant to this paragraph as applied to compensation earned on or
after that date.
   (b) (1) The normal rate of contribution for a state miscellaneous
member employed by the California State University, the University,
or the legislative or judicial branch whose service has been included
in the federal system shall be 5 percent of compensation in excess
of five hundred thirteen dollars ($513) per month paid that member
for service rendered on and after July 1, 1976.
   (2) The normal rate of contribution for a state miscellaneous or
industrial member employed by the California State University, the
University, or the legislative or judicial branch, who has elected to
be subject to Section 21353.5 and whose service has been included in
the federal system, shall be 5 percent of compensation, subject to
the reduction specified in paragraph (5) of subdivision (a). 
   (c) Notwithstanding subdivisions (a) and (b) the following shall
apply:  
   (1) The normal rate of contribution for a state miscellaneous
member employed by the California State University, the University,
or the legislative or judicial branch whose service is not included
in the federal system shall be 6 percent of the compensation per
month paid that member for service rendered on and after the date
specified in subdivision (d).  
   (2) The normal rate of contribution for a state miscellaneous
member employed by the California State University, the University,
or the legislative or judicial branch whose service has been included
in the federal system shall be 5 percent of compensation per month
paid that member for service rendered on and after the date specified
in subdivision (d).  
   (d) The changes made by the act adding this subdivision shall be
operative on the date the act takes effect. 
   SEC. 8.   Section 20677.4 of the  
Government Code   is amended to read: 
   20677.4.  (a) (1) The normal rate of contribution for a state
miscellaneous or state industrial member whose service is not
included in the federal system shall be 6 percent of the compensation
in excess of three hundred seventeen dollars ($317) per month paid
to that member for service rendered on or after July 1, 1976.
   (2) The normal rate of contribution for a state miscellaneous or
state industrial member, who has elected to be subject to Section
21353.5 and whose service is not included in the federal system,
shall be 6 percent of the member's compensation.
   (3) The normal rate of contribution as established under this
subdivision for a member whose service is included in the federal
system, and whose service retirement allowance is reduced under
Section 21354.1, because of that inclusion, shall be reduced by
one-third as applied to compensation not exceeding four hundred
dollars ($400) per month for service after the date of execution of
the agreement including service in the federal system and prior to
termination of the agreement with respect to the coverage group to
which he or she belongs.
   (b) The normal rate of contribution for a state miscellaneous or
state industrial member whose service has been included in the
federal system shall be 5 percent of compensation in excess of five
hundred thirteen dollars ($513) per month paid that member for
service rendered on or after July 1, 1976. 
   (c) Notwithstanding subdivisions (a) and (b) the following shall
apply:  
   (1) The normal rate of contribution for a state miscellaneous or
state industrial member whose service is not included in the federal
system shall be 6 percent of the compensation per month paid to that
member for service rendered on or after the date specified in
subdivision (i).  
   (2) The normal rate of contribution for a state miscellaneous or
state industrial member whose service has been included in the
federal system shall be 5 percent of compensation per month paid that
member for service rendered on or after the date specified in
subdivision (i).  
   (c) 
    (d)  The normal rate of contribution for a state
miscellaneous or state industrial member who is subject to Section
21076 or 21077 shall be 0 percent. 
   (d) 
    (e)  A member who elected to become subject to Section
21353 solely for service rendered on or after the effective date of
the election, as authorized by subdivision (c) of Section 21070
during the period between November 1, 1988, and October 31, 1989, is
not required to make the contributions specified in Section 21073.

   (e) 
    (f)  A member who elects to become subject to Section
21354.1, as applicable, shall contribute at the rate specified in
paragraph (1) of subdivision (a) or paragraph (1) of subdivision (b),
as determined by the member's status with the federal system, and
the rate shall be applied from the first of the month following the
date of the election. A member who makes the election shall also
contribute for service prior to the date the contribution rate was
applied, in the manner specified in Section 21073 or 21073.1, as
applicable. 
   (f) 
    (g)  If the provisions of this section are in conflict
with the provisions of a memorandum of understanding reached pursuant
to Section 3517.5, the memorandum of understanding shall be
controlling without further legislative action, except that if 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. 
   (g) 
    (h)  The Director of the Department of Personnel
Administration may establish the normal rate of contribution for a
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. The normal rate of contribution shall be the same for
all members identified in this subdivision. The contribution rate
shall be effective the beginning of the pay period indicated by the
Director of the Department of Personnel Administration but shall be
no earlier than the beginning of the pay period following the date
the board receives notification. 
   (i) The changes made by the act adding this subdivision shall be
operative on the date the act takes effect. 
   SEC. 9.    Section 20677.5 of the  
Government Code   is amended to read: 
   20677.5.  (a) Notwithstanding any provisions of Section 20677.4 to
the contrary, effective with the beginning of the July 2006 pay
period, the normal rate of contribution for state miscellaneous or
state industrial members who are subject to Section 21354.1, and are
represented by State Bargaining Unit 2, shall be:
   (1) Seven 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) Six 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) Notwithstanding Section 20677.4 or subdivision (a), effective
with the beginning of the pay period immediately following the date
specified in subdivision (e), the normal rate of contribution for
state miscellaneous or state industrial members who are subject to
Section 21354.1, and are represented by State Bargaining Unit 2,
shall be:  
   (1) Seven percent of the compensation per month paid to a member
whose service is not included in the federal system.  
   (2) Six percent of compensation per month paid to that member
whose service has been included in the federal system.  

   (b) 
    (c)  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) 
    (d)  The Director of the Department of Personnel
Administration may establish the normal rate of contribution for a
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. The normal rate of contribution shall be the same for
all members identified in this subdivision. The contribution rate
shall be effective the beginning of the pay period indicated by the
Director of the Department of Personnel Administration but shall be
no earlier than the beginning of the pay period following the date
the board receives notification. 
   (e) The changes made by the act adding this subdivision shall be
operative on the date the act takes effect. 
   SEC. 10.    Section 20681 of the  
Government Code   is amended to read: 
   20681.  (a) The normal rate of contribution for patrol members
shall be 8 percent of the compensation in excess of eight hundred
sixty-three dollars ($863) per month paid those members. The
Legislature reserves the right to increase the rate of contribution
of patrol members as it may find appropriate from time to time. 
                                                                 (b)
Notwithstanding subdivision (a), the normal rate of contribution for
patrol members shall be 8 percent of the compensation per month paid
those members for service rendered on or after July 3, 2010. The
Legislature reserves the right to increase the rate of contribution
of patrol members as it may find appropriate from time to time. 

   (b) 
    (c)  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) 
    (d)  The provisions of a memorandum of understanding
pertaining to subdivision (a) may be applied to patrol members who
either are excluded from the definition of state employees in
subdivision (c) of Section 3513, or are nonelected officers or
employees of the executive branch of government and are not members
of the civil service, provided the Department of Personnel
Administration has approved this inclusion and has notified the
board.
   SEC. 11.    Section 20683 of the  
Government Code   is amended to read: 
   20683.  (a) For each state member subject to Section 21369 or
21369.1, the normal rate of contribution shall be 6 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. 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. 
   (b) Notwithstanding subdivision (a), for each state member subject
to Section 21369 or 21369.1, the normal rate of contribution shall
be 6 percent of compensation per month paid that member for service
rendered on or after the date specified in subdivision (g). 

   (b) 
    (c)  The Director of the Department of Personnel
Administration may establish the normal rate of contribution for a
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. The normal rate of contribution shall be the same for
all members identified in this subdivision. The contribution rate
shall be effective the beginning of the pay period indicated by the
Director of the Department of Personnel Administration but shall be
no earlier than the beginning of the pay period following the date
the board receives notification. 
   (c) 
    (d)  For each local safety member subject to Section
21369, the normal rate of contribution shall be 7 percent of
compensation. 
   (d) 
    (e)  The normal rate of contribution as established
under this section for a local member whose service is included in
the federal system and whose retirement allowance is reduced because
of that inclusion shall be reduced by one-third as applied to
compensation not exceeding four hundred dollars ($400) per month for
service rendered after the date of execution of the modification of
the federal-state agreement including those services in the federal
system and prior to termination of his or her coverage under the
federal system. 
   (e) 
    (f)  The operative date of this section with respect to
a local safety member shall be the date upon which he or she becomes
subject to Section 21369. 
   (g) The changes made by the act adding this subdivision shall be
operative on the date the act takes effect. 
   SEC. 12.    Section 20683.1 of the  
Government Code   is amended to read: 
   20683.1.  (a) For each state safety member subject to Section
21369 or 21369.1 who are represented by State Bargaining Unit 2, the
normal rate of contribution shall be 7 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 beginning
with the July 2006 pay period. 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. 
   (b) Notwithstanding subdivision (a), for each state safety member
subject to Section 21369 or 21369.1 who is represented by State
Bargaining Unit 2, the normal rate of contribution shall be 7 percent
of compensation per month paid to a member whose service is not
included in the federal system beginning with the pay period
immediately following the date specified in subdivision (d). 

   (b) 
    (c)  The Director of the Department of Personnel
Administration may establish the normal rate of contribution for a
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. The normal rate of contribution shall be the same for
all members identified in this subdivision. The contribution rate
shall be effective the beginning of the pay period indicated by the
Director of the Department of Personnel Administration but shall be
no earlier than the beginning of the pay period following the date
the board receives notification. 
   (d) The changes made by the act adding this subdivision shall be
operative on the date the act takes effect. 
   SEC. 13.    Section 20686 of the  
Government Code   is amended to read: 
   20686.   (a)    For each state safety member
defined in Section 20401 and whose current and prior service pensions
shall be computed pursuant to Section 21373, the normal rate of
contribution shall be 8 percent and shall be made only on the
compensation in excess of two hundred thirty-eight dollars ($238) per
month. The Legislature reserves the right to increase the rate of
contribution as it may find appropriate from time to time. No
adjustment shall be included in rates adopted under this section as
the result of amendments hereto, changing the time at which members
may retire or the benefits members shall receive, because of time
during which members have contributed at different rates prior to
that adoption. 
   (b) Notwithstanding subdivision (a), for each state safety member
defined in Section 20401 and whose current and prior service pensions
shall be computed pursuant to Section 21373, the normal rate of
contribution shall be 8 percent per month beginning with the pay
period immediately following the date specified in subdivision (c).
The Legislature reserves the right to increase the rate of
contribution as it may find appropriate from time to time.  

   (c) The changes made by the act adding this subdivision shall be
operative on the date the act takes effect. 
   SEC. 14.    Section 20687 of the  
Government Code   is amended to read: 
   20687.  (a) The normal rate of contribution for state peace
officer/firefighter members subject to Section 21363, 21363.1,
21363.3, 21363.4, or 21363.8 shall be 8 percent of the compensation
in excess of two hundred thirty-eight dollars ($238) per month paid
to those members. 
   (b) Notwithstanding subdivision (a), the normal rate of
contribution for state peace officer/firefighter members subject to
Section 21363, 21363.1, 21363.3, 21363.4, 21363.5, or 21363.8 shall
be 8 percent of the compensation per month paid to those members
beginning with the pay period immediately following the date
specified in subdivision (e).  
   (b) 
    (c)  If the provisions of this section are in conflict
with the provisions of a memorandum of understanding reached pursuant
to Section 3517.5 or pursuant to Chapter 12 (commencing with Section
3560) of Division 4 of Title 1, the memorandum of understanding
shall be controlling without further legislative action, except that
if those provisions of a memorandum of understanding require the
expenditure of funds, those provisions shall not become effective
unless approved by the Legislature in the annual Budget Act. 

   (c) 
    (d)  The Director of the Department of Personnel
Administration may establish the normal rate of contribution for a
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. The normal rate of contribution shall be the same for
all members identified in this subdivision. The contribution rate
shall be effective the beginning of the pay period indicated by the
Director of the Department of Personnel Administration but shall be
no earlier than the beginning of the pay period following the date
the board receives notification. 
   (e) The changes made by the act adding this subdivision shall be
operative on the date the act takes effect. 
   SEC. 15.    Section 20687.2 of the  
Government Code   is amended to read: 
   20687.2.   (a)   Notwithstanding Section 20687,
the normal rate of contribution for state peace officer/firefighter
members who are supervisors within the boards and departments of the
Youth and Adult Correctional Agency or who are correctional
supervisors within the State Department of Mental Health for pay
periods beginning after April 30, 2001, shall be 8 percent of
compensation in excess of eight hundred sixty-three dollars ($863)
per month paid those members. 
   (b) Notwithstanding Section 20687 or subdivision (a), the normal
rate of contribution for state peace officer/firefighter members who
are supervisors within the boards and departments of the Youth and
Adult Correctional Agency or who are correctional supervisors within
the State Department of Mental Health for pay periods beginning after
the date specified in subdivision (c), shall be 8 percent of
compensation per month paid those members.  
   (c) The changes made by the act adding this subdivision shall be
operative on the date the act takes effect. 
   SEC. 16.    Section 20689 of the  
Government Code   is amended to read: 
   20689.   (a   )    The Legislature
reserves the right to increase or otherwise adjust the rates of
contribution prescribed in this article in amounts and in a manner it
may from time to time find appropriate. 
   (b) If statutory changes made to state employee contribution rates
beginning the date specified in subdivision (d), are in conflict
with Section 3517.8 or a memorandum of understanding continued in
effect pursuant to Section 3517.8, those statutory changes will be
controlling as of the date specified in subdivision (d), without
further legislative action until or unless a later memorandum of
understanding reached pursuant to Section 3517.5 specifically
supersedes those changes.  
   (c) If statutory changes made to contribution rates beginning July
3, 2010, for employees in State Bargaining Unit 5 are in conflict
with Section 3517.8 or a memorandum of understanding continued in
effect pursuant to Section 3517.8, those statutory changes shall be
controlling as of July 3, 2010, without further legislative action
until or unless a later memorandum of understanding reached pursuant
to Section 3517.5 specifically supersedes those changes.  
   (d) The changes made by the act adding this subdivision shall be
operative on the date the act takes effect. 
   SEC. 17.    Section 20694 of the  
Government Code   is amended to read: 
   20694.  (a) This section shall apply only to patrol members in
State Bargaining Unit 5.
   (b) The state shall pay all of the normal contributions required
to be paid by patrol members pursuant to Section 20681 until June 30,
2001.
   (c) Notwithstanding Section 20681, effective July 1, 2001, the
normal rate of contribution for patrol members shall be 1.5 percent
of the compensation in excess of eight hundred sixty-three dollars
($863) per month paid those members. The state shall pay the
difference between the normal contributions that would be required to
be paid by patrol members pursuant to Section 20681 and the amount
paid by those members pursuant to this section. 
   (d) Notwithstanding Section 20681 and subdivision (c), the normal
rate of contribution for patrol members shall be 1.5 percent of the
compensation per month paid to those members for service rendered on
or after July 3, 2010.  
   (d) 
    (e)  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.
   SEC. 18.    Section 21076 of the  
Government Code   is amended to read: 
   21076.  (a)  (1)    The service retirement
allowance for a state miscellaneous or state industrial member who
has elected the benefits of this section is a pension equal to the
fraction of one-hundredth 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
member's number of years of state miscellaneous service:
  Age at
Retirement                   Fraction
50                             .5000
50 1/4                         .5125
50 1/2                         .5250
50 3/4                         .5375
51                             .5500
51 1/4                         .5625
51 1/2                         .5750
51 3/4                         .5875
52                             .6000
52 1/4                         .6125
52 1/2                         .6250
52 3/4                         .6375
53                             .6500
53 1/4                         .6625
53 1/2                         .6750
53 3/4                         .6875
54                             .7000
54 1/4                         .7125
54 1/2                         .7250
54 3/4                         .7375
55                             .7500
55 1/4                         .7625
55 1/2                         .7750
55 3/4                         .7875
56                             .8000
56 1/4                         .8125
56 1/2                         .8250
56 3/4                         .8375
57                             .8500
57 1/4                         .8625
57 1/2                         .8750
57 3/4                         .8875
58                             .9000
58 1/4                         .9125
58 1/2                         .9250
58 3/4                         .9375
59                             .9500
59 1/4                         .9625
59 1/2                         .9750
59 3/4                         .9875
60                            1.0000
60 1/4                        1.0125
60 1/2                        1.0250
60 3/4                        1.0375
61                            1.0500
61 1/4                        1.0625
61 1/2                        1.0750
61 3/4                        1.0875
62                            1.1000
62 1/4                        1.1125
62 1/2                        1.1250
62 3/4                        1.1375
63                            1.1500
63 1/4                        1.1625
63 1/2                        1.1750
63 3/4                        1.1875
64                            1.2000
64 1/4                        1.2125
64 1/2                        1.2250
64 3/4                        1.2375
65                            1.2500


   (2) This subdivision shall only apply to state miscellaneous or
state industrial members who are first employed before the date
specified in subdivision (d).  
   (b) (1) Upon attaining the age of 65 years or more, the combined
current and prior service pensions for state miscellaneous or state
industrial members 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 member at the date of his or her
retirement, to equal 0.5 percent of his or her final compensation at
retirement multiplied by the number of years of service with which he
or she is credited at retirement. For state miscellaneous or state
industrial members that retire between 50 and 65 years of age, the
amount of the service pension shall be calculated as a reduced,
prorated fraction of 0.5 percent, as determined by the actuary, of
his or her final compensation at retirement amount based on age at
retirement and multiplied by the number of years of state
miscellaneous or state industrial member service subject to this
section with which he or she is credited at retirement.  
   (2) This subdivision shall apply to state miscellaneous or state
industrial members who are first employed on or after the date
specified in subdivision (d).  
   (b) 
    (c   )  This section shall not apply to a
National Guard member. 
   (d) The changes made by the act adding this subdivision shall be
operative on the date the act takes effect. 
   SEC. 19.    Section 21251.13 of the  
Government Code   is amended to read: 
   21251.13.  (a) Notwithstanding any other provision of law,
Sections 21070.5, 21070.6, 21073.1, 21073.7, 21354.1, 21362.2,
21363.1, and 21369.1 and the amendments to Sections 21070, 21071,
21072, 21073, 21073.5, and 21353.5, enacted during the first year of
the 1999-2000 Regular Session:
   (1) Shall not become operative unless the board adopts a
resolution that does both of the following: (A) employs, for the June
30, 1998, valuation, 95 percent of the market value of assets of the
state employer as the actuarial value of the assets; and (B)
amortizes the June 30, 1998, excess assets over a period of 20 years,
beginning July 1, 1999.
   (2) Shall not apply to a state employee, as defined in subdivision
(c) of Section 3513, in a bargaining unit unless and until
incorporated in a memorandum of understanding, pursuant to Section
3517.5, applicable to that bargaining unit.
   (3) Shall not apply to excluded employees, as defined in Section
3527, unless the Department of Personnel Administration has approved
the application of those provisions to those employees.
Notwithstanding any provision of law to the contrary, any approval by
the Department of Personnel Administration for the application of
these provisions to those excluded employees is irrevocable.  On
and after July 3, 2010, the Department of Personnel Administration
may make Section 21363.5 applicable to excluded employees connected
to State Bargaining Unit 5 who are first employed on and after July
3, 2010. On and after the date specified in subdivision (g), the
Department of Personnel Administration may make Section 21363.5
applicable to excluded peace officer/firefighters connected with
State Bargaining Unit 6, 7, or 8   who are first employed on
and after the date specified in subdivision (f). 
   (b) Notwithstanding anything in a memorandum of understanding to
the contrary, (1) the benefits provided under the provisions of those
sections described in subdivision (a), as added or amended during
the first year of the 1999-2000 Regular Session, shall not terminate
upon the expiration or termination of the memorandum of
understanding, and (2) the only conditions to the operation of the
provisions of those sections described in subdivision (a), as added
or amended during the first year of the 1999-2000 Regular Session,
are contained in this section. 
   (c) Notwithstanding Section 3517.8 or any provision of a
memorandum of understanding continued in effect pursuant to Section
3517.8, on and after the date specified in subdivision (f), the
retirement formulas defined in Section 21354.1, 21363.1, 21363.3,
21363.4, 21363.8, or 21369.1 shall only apply to state employees who
were first employed and subject to that section before that date.
Those sections shall not apply to any state employee member first
employed on and after the date specified in subdivision (f). 

   (d) Notwithstanding Section 3517.8 or any provision of a
memorandum of understanding continued in effect pursuant to Section
3517.8, on and before July 2, 2010, the retirement formula defined in
Section 21362.2 shall only apply to state patrol members first
employed and subject to that section on or after July 3, 2010. 

   (c) 
    (e)  Upon request by the state employer or other entity,
or on its own volition, the board may change the amortization
period, or take any other action the board deems necessary or
appropriate, to mitigate the impact of unforeseen factors that may
cause an increase in the employer contribution by the state. Nothing
in this section shall be construed to limit the board's authority
under Section 17 of Article 16 of the California Constitution. 
   (f) The changes made by the act adding this subdivision shall be
operative on the date the act takes effect. 
   SEC. 20.    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  , or are first employed before the date
specified in subdivision (f). If this provision is in conflict with
Section 3517.8 or any provision of an expired memorandum of
understanding continued in effect pursuant to Section 3517.8, this
section will be controlling as of the date specified in subdivision
(f), without further legislative action .
   (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 before the date specified in
subdivision (f)  , and who do not elect under Section 21070.5 to
be subject to Second Tier benefits.  If this provision is in
conflict with Section 3517.8 or any provision of an expired
memorandum of understanding continued in effect pursuant to Section
3517.8, this sect   ion will be controlling as of the date
specified in subdivision (f), without further legislative action.

   (e) Operation and application of this section are subject to the
limitations set forth in Section 21251.13. 
   (f) The changes made by the act adding this subdivision shall be
operative on the date the act takes effect. 
   SEC. 21.    Section 21354.6 is added to the 
 Government Code   , to read:  
   21354.6.  (a) Upon attaining the age of 65 years or more, the
combined current and prior service pensions for state miscellaneous,
state industrial, or school members 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
normal contributions of the member at the date of his or her
retirement, to equal 2 percent of his or her final compensation at
retirement multiplied by the number of years of current and prior
service, except service in a category of membership other than state
miscellaneous, state industrial, or school member, or service covered
under First Tier retirement formula, with which he or she is
credited at retirement. For state miscellaneous, state industrial, or
school members that retire between 50 and 65 years of age, the
amount of the service pension shall be calculated at a reduced,
prorated fraction of 2 percent, as determined by the actuary, of his
or her final compensation at retirement amount based on age at
retirement and multiplied by the number of years of state
miscellaneous, state industrial, and school member service subject to
this section with which he or she is credited at retirement.
   (b) The amount computed pursuant to subdivision (a) 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) This section shall apply to state miscellaneous, state
industrial, and school members first employed on or after the date
specified in subdivision (g). If this paragraph is in conflict with
Section 3517.8 or any provision of an expired memorandum of
understanding continued in effect pursuant to Section 3517.8, this
paragraph shall be controlling as of the date specified in
subdivision (g), without further legislative action.
   (e) If this section is in conflict with Section 3517.8 or any
provision of an expired memorandum of understanding continued in
effect pursuant to Section 3517.8, this section will be controlling
as of the date specified in subdivision (g), without further
legislative action.
   (f) Operation and application of this section are subject to the
limitations set forth in Section 21251.13.
   (g) The changes made by the act adding this section shall be
operative on the date the act takes effect. 
   SEC. 22.    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,  or are first employed on or before July 2, 2010, 
this section shall supersede Section 21362.  If this provision is
in conflict with Section 3517.8 or any provision of an expired
memorandum of understanding continued in effect pursuant to Section
3517.8, this section will be controlling as of July 3, 2010, without
further legislative action. 
   (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.
   SEC. 23.    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  who are employed by the state before
the date specified in subdivision (i),  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  , and before the date specified in subdivision (i 
 )  .
   (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) 
    (h   )  Operation and application of this
section are subject to the limitations set forth in Section 21251.13.

   (i) The changes made by the act adding this subdivision shall be
operative on the date the act takes effect. 
   SEC. 24.    Section 21363.3 of the  
Government Code   is amended to read: 
   21363.3.  (a) The combined current and prior service pensions for
state peace officer/firefighter members described in Section 20394 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 the age of 50 years, multiplied by the number of years of state
peace officer/firefighter 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 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 peace officer/firefighter member has service under this
section, or other safety retirement formulas pursuant to this part
with state or 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 state employer.
   (c) This section shall apply to state peace officer/firefighter
members described in Section 20394 if authorized by, and in
accordance with, a memorandum of understanding reached between the
Trustees of the California State University and the recognized
employee organization pursuant to Chapter 12 (commencing with Section
3560) of Division 4 of Title 1. This section may also apply to sworn
peace officer/firefighter members described in Section 20394 in
related management positions, if the Trustees of the California State
University have approved the application in writing to the Board of
Administration of the Public Employees' Retirement System.
   (d) This section shall supersede Section 21363.1 with respect to
peace officer/firefighter service for members employed by the
California State University police department on or after the date a
memorandum of understanding, or action by the Trustees of the
California State University regarding related management positions,
makes this section applicable to these members.
   (e) This section may not prevent a subsequent memorandum of
understanding, or subsequent action by the Trustees of the California
State University regarding related management positions, from making
this section inapplicable to peace officer/firefighter members first
employed by the California State University police department on or
after a date specified in a subsequent memorandum of understanding,
or subsequent action by the Trustees of the California State
University regarding related management positions. 
   (f) This section shall not apply to any state peace
officer/firefighter member described in Section 20394 who is first
employed on or after the date specified in subdivision (g). If this
subdivision is in conflict with Section 3517.8 or any provision of an
expired memorandum of understanding continued in effect pursuant to
Section 3517.8, this section will be controlling as of the date
specified in subdivision (g), without further legislative action.
 
   (g) The changes made by the act adding this subdivision shall be
operative on the date the act takes effect. 
   SEC. 25.    Section 21363.4 of the  
Government Code   is amended to read: 
   21363.4.  (a) Upon attaining the age of 50 years or more, the
combined current and prior service pension for a state peace
officer/firefighter member described in subdivision (c) who retires
or dies on or after January 1, 2006, 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
state peace officer/firefighter service, as defined in subdivision
(d), subject to this section with which he or she is credited at
retirement.
   (b) For state peace officer/firefighter members, with respect to
service for all state employers under this section, the current
service pension and the combined current and prior service pension
under this section shall not exceed an amount that, when added to the
service retirement annuity related to that service, equals 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.
   (c) For purposes of this section, "state peace officer/firefighter
member" means state peace officer/firefighter members under this
part who, on or after January 1, 2006, are employed by the state and
are members of State Bargaining Unit 6 or State Bargaining Unit 8,
 or who are first employed by the state before the date specified
in subdivision (h), and are members of State Bargaining Unit 6 or
State Bargaining Uni   t 8,  and may include state
peace officer/firefighter members in related managerial, supervisory,
or confidential positions and officers or employees of the executive
branch of state government who are not members of the civil service,
provided the Department of Personnel Administration has approved
their inclusion in writing to the board.
   (d) For purposes of this section, "state peace officer/firefighter
service" means service performed by a state peace
officer/firefighter member while a member of State Bargaining Unit 6
or State Bargaining Unit 8, and may include state peace
officer/firefighter service in related managerial, supervisory, or
confidential positions or as officers or employees of the executive
branch of state government who are not members of the civil service,
provided the Department of Personnel Administration has approved
their inclusion in writing to the board.
   (e) This section shall supersede Section 21363 or 21363.1,
whichever is applicable, with respect to state peace
officer/firefighter members  employed on and after January 1,
2006, or who are first employed before the date specified in
subdivision (h),  and service as defined herein.
   (f) 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. 
   (g) This section shall not apply to any state peace
officer/firefighter member who is first employed by the state on or
after the date specified in subdivision (h). If this subdivision is
in conflict with Section 3517.8 or any provision of an expired
memorandum of understanding continued in effect pursuant to Section
3517.8, this section will be controlling as of the date specified in
subdivision (h), without further legislative action.  
   (h) The changes made by the act adding this subdivision shall be
operative on the date the act takes effect. 
   SEC. 26.    Section 21363.5 is added to the 
 Government Code   , to read:  
   21363.5.  (a) Upon attaining the age of 57 years or more, 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 patrol members, as
described in subdivision (c), with respect to patrol member service,
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 patrol member at the date of his or her
retirement, to equal 2.7 percent of his or her final compensation at
retirement multiplied by the number of years of state peace
officer/firefighter service or patrol service subject to this section
with which he or she is credited at retirement. For peace
officer/firefighter members and patrol members, described in
subdivision (c), that retire between 50 and 57 years of age, the
amount of the service pension shall be calculated at a reduced,
prorated fraction of 2.7 percent, as determined by the actuary, of
his or her final compensation at retirement amount based on age at
retirement and multiplied by the number of years of state peace
officer/firefighter service or patrol 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 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) (1) This section shall apply to state peace
officer/firefighter members in State Bargaining Unit 6, 7, or 8 first
employed by the state on and after the date specified in subdivision
(f). If this paragraph is in conflict with Section 3517.8 or any
provision of an expired memorandum of understanding continued in
effect pursuant to Section 3517.8, this paragraph shall be
controlling as of the date specified in subdivision (f), without
further legislative action.
   (2) This section shall also apply to state patrol members first
employed by the state on and after July 3, 2010. If this paragraph is
in conflict with Section 3517.8 or any provision of an expired
memorandum of understanding continued in effect pursuant to Section
3517.8, this paragraph shall be controlling as of July 3, 2010,
without further legislative
action.
   (d) If this section is in conflict with Section 3517.8 or any
provision of an expired memorandum of understanding continued in
effect pursuant to Section 3517.8, this section will be controlling
as of the date specified in subdivision (f), without further
legislative action.
   (e) Operation and application of this section are subject to the
limitations set forth in Section 21251.13.
   (f) The changes made by the act adding this section shall be
operative on the date the act takes effect. 
   SEC. 27.    Section 21363.6 is added to the 
 Government Code   , to read:  
   21363.6.  (a) Upon attaining the age of 57 years or more, the
combined current and prior service pensions for peace
officer/firefighter members first employed by schools, the California
State University, or the legislative or judicial branch of
government and 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 normal contributions of
the member at the date of his or her retirement, to equal 2.5 percent
of his or her final compensation at retirement multiplied by the
number of years of current and prior service, except service in a
category of membership other than state miscellaneous, state
industrial, or school member, or service covered under First Tier
retirement formula, with which he or she is credited at retirement.
For peace officer/firefighter members first employed by schools, the
California State University, or the legislative or judicial branch of
government that retire between 50 and 57 years of age, the amount of
the service pension shall be calculated at a reduced, prorated
fraction of 2.5 percent, as determined by the actuary, of his or her
final compensation at retirement amount based on age at retirement
and multiplied by the number of years of peace officer/firefighter
service performed for schools, the California State University, or
the legislative or judicial branch of government 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 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, if any, 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 apply to peace officer/firefighter members
first employed by schools, the California State University, or the
legislative or judicial branch of government, on and after the date
specified in subdivision (f). If this paragraph is in conflict with
Section 3517.8 or any provision of an expired memorandum of
understanding continued in effect pursuant to Section 3517.8, this
paragraph shall be controlling as of the date specified in
subdivision (f), without further legislative action.
   (d) If this section is in conflict with Section 3517.8 or any
provision of an expired memorandum of understanding continued in
effect pursuant to Section 3517.8, this section will be controlling
as of the date specified in subdivision (f), without further
legislative action.
   (e) Operation and application of this section are subject to the
limitations set forth in Section 21251.13.
   (f) The changes made by the act adding this section shall be
operative on the date the act takes effect. 
   SEC. 28.    Section 21363.7 is added to the 
 Government Code   , to read:  
   21363.7.  (a) Upon attaining the age of 62 years or more, the
combined current and prior service pensions for state safety members
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 normal contributions of the member
at the date of his or her retirement, to equal 2 percent of his or
her final compensation at retirement multiplied by the number of
years of current and prior service with which he or she is credited
at retirement. For state safety members that retire between 50 and 62
years of age, the amount of the service pension shall be calculated
at a reduced, prorated fraction of 2 percent, as determined by the
actuary, of his or her final compensation at retirement amount based
on age at retirement and multiplied by the number of years of state
safety member 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 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. 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, if any, 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 apply to state safety members first
employed on and after the date specified in subdivision (f). If this
paragraph is in conflict with Section 3517.8 or any provision of an
expired memorandum of understanding continued in effect pursuant to
Section 3517.8, this paragraph shall be controlling as of the date
specified in subdivision (f), without further legislative action.
   (d) If this section is in conflict with Section 3517.8 or any
provision of an expired memorandum of understanding continued in
effect pursuant to Section 3517.8, this section will be controlling
as of the date specified in subdivision (f), without further
legislative action.
   (e) Operation and application of this section are subject to the
limitations set forth in Section 21251.13.
   (f) The changes made by the act adding this section shall be
operative on the date the act takes effect. 
   SEC. 29.    Section 21363.8 of the  
Government Code   is amended to read: 
   21363.8.  (a) Upon attaining the age of 50 years or more, the
combined current and prior service pension for a state peace
officer/firefighter member described in subdivision (c) who retires
or dies on or after January 1, 2004, 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 state peace officer/firefighter
service, as defined in subdivision (d), subject to this section with
which he or she is credited at retirement.
   (b) For state peace officer/firefighter members, with respect to
service for all state employers under this section, the current
service pension and the combined current and prior service pension
under this section may not exceed an amount that, when added to the
service retirement annuity related to that service, equals 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.
   (c) (1) This section shall apply to state peace
officer/firefighter members under this part who, on or after January
1, 2004, are employed by the state and are members of State
Bargaining Unit 7  , or who are first employed by the state
before the date specified in subdivision (h),   and are
members of State Bargaining Unit 7  .
   (2) This section may also apply to state peace officer/firefighter
members in managerial, supervisory, or confidential positions that
are related to the members described in paragraph (1) and to officers
or employees of the executive branch of state government who are not
members of the civil service and who are in positions that are
related to the members described in paragraph (1), if the Department
of Personnel Administration has approved their inclusion in writing
to the board.
   (d) (1) For purposes of this section, "state peace
officer/firefighter service" means service performed by a state peace
officer/firefighter member while a member of State Bargaining Unit
7.
   (2) That service may include state peace officer/firefighter
service in managerial, supervisory, or confidential positions that
are related to the members described in paragraph (1) or as officers
or employees of the executive branch of state government who are not
members of the civil service and who are in positions that are
related to the members described in paragraph (1), provided the
Department of Personnel Administration has approved their inclusion
in writing to the board.
   (e) This section shall supersede Section 21363 or 21363.1,
whichever is applicable, with respect to state peace
officer/firefighter members  employed on and after January 1,
2004, or who are first employed before the date specified in
subdivision (h),  subject to this section and state peace
officer/firefighter service as defined herein.
   (f) 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. 
   (g) This section shall not apply to any state peace
officer/firefighter member who is first employed by the state on or
after the date specified in subdivision (h). If this subdivision is
in conflict with Section 3517.8 or any provision of an expired
memorandum of understanding continued in effect pursuant to Section
3517.8, this section will be controlling as of the date specified in
subdivision (h), without further legislative action.  
   (h) The changes made by the act adding this subdivision shall be
operative on the date the act takes effect. 
   SEC. 30.    Section 21369.1 of the  
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  , employed before the date specified in subdivision (g
  ),  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  ,  
or who are first employed before the date specified in subdivision (g
  ). If this subdivision is in conflict with Section 3517.8
or any provision of an expired memorandum of  
understanding continued in effect pursuant to Section 3517.8, this
section will be controlling as of the date specified in subdivision
(g), without further legislative action  .
   (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) 
    (f   )  Operation and application of this
section are subject to the limitations set forth in Section 21251.13.

   (g) The changes made by the act adding this subdivision shall be
operative on the date the act takes effect. 
   SEC. 31.    Section 22762 of the  
Government Code   is amended to read: 
   22762.   (a)    "Board" means the Board of
Administration of the Public Employees' Retirement System.  On
and after t   he date specified in subdivision (b), "board"
also means another entity of the state that is authorized by statute.
 
   (b) The changes made by the act adding this subdivision shall be
operative on the date the act takes effect. 
   SEC. 32.    Section 22850 of the  
Government Code   is amended to read: 
   22850.  (a) The board may, without compliance with any provision
of law relating to competitive bidding, enter into contracts with
carriers offering health benefit plans or with entities offering
services relating to the administration of health benefit plans 
or provide self-funded plans by contracting with entities offering
services relating to the administration of health benefit plans. Plan
designs and premiums may vary in different areas of the state 
.
   (b) The board may contract with carriers for health benefit plans
or approve health benefit plans offered by employee organizations,
provided that the carriers have operated successfully in the hospital
and medical care fields prior to the contracting for or approval
thereof. The plans may include hospital benefits, surgical benefits,
inpatient medical benefits, outpatient benefits, obstetrical
benefits, and benefits offered by a bona fide church, sect,
denomination, or organization whose principles include healing
entirely by prayer or spiritual means.
   (c) Notwithstanding any other provision of this part, the board
may contract with health benefit plans offering unique or specialized
health services.
   (d) The board may administer self-funded or minimum premium health
benefit plans.
   (e) The board may contract for or implement employee cost
containment and cost reduction incentive programs that involve the
employee, the annuitant, and family members as active participants,
along with the carrier and the provider, in a joint effort toward
containing and reducing the cost of providing medical and hospital
health care services to public employees. In developing these plans,
the board, in cooperation with the Department of Personnel
Administration, may request proposals from carriers and certified
public employee representatives.
   (f) Notwithstanding any other provision of this part, the board
may do any of the following:
   (1) Contract for, or approve, health benefit plans that charge a
contracting agency and its employees and annuitants rates based on
regional variations in the costs of health care services.
   (2) Contract for, or approve, health benefit plans exclusively for
the employees and annuitants of contracting agencies. State
employees and annuitants may not enroll in these plans. The board may
offer health benefit plans exclusively for employees and annuitants
of contracting agencies in addition to or in lieu of other health
benefit plans offered under this part. The governing body of a
contracting agency may elect, upon filing a resolution with the
board, to provide those health benefit plans to its employees and
annuitants. The resolution shall be subject to mutual agreement
between the contracting agency and the recognized employee
organization, if any.
   (g) The board shall approve any employee association health
benefit plan that was approved by the board in the 1987-88 contract
year or prior, provided the plan continues to meet the minimum
standards prescribed by the board. The trustees of an employee
association health benefit plan are responsible for providing health
benefit plan administration and services to its enrollees.
Notwithstanding any other provision of this part, the California
Correctional Peace Officer Association Health Benefits Trust may
offer different health benefit plan designs with varying premiums in
different areas of the state.
   (h) Irrespective of any other provision of law, the sponsors of a
health benefit plan approved under this section may reinsure the
operation of the plan with an admitted insurer authorized to write
disability insurance, if the premium includes the entire prepayment
fee.
   SEC. 33.    Section 22871.1 is added to the 
 Government Code   , to read:  
   22871.1.  (a) This section shall only apply to an employee of the
state, the California State University, the Legislature, or the
judicial branch who is first employed on or after the date specified
in subdivision (d).
   (b) Notwithstanding Section 22871 or any other provision of this
article, the employer contribution, with respect to each annuitant to
whom this section applies who is retired from service or is a
survivor of that person, shall be adjusted by the Legislature in the
annual Budget Act. Those adjustments shall be based on the principle
that the employer contribution for each annuitant shall be the same
as the highest employer contribution paid for an active state
employee.
   (c) An annuitant described in this section shall be subject to the
applicable vesting schedule for employees who first become members
of the system on or after the date specified in subdivision (d),
including, but not limited to, that vesting schedule described in
Section 22875.1.
   (d) The changes made by the act adding this section shall be
operative on the date the act takes effect. 
   SEC. 34.    Section 22875.1 is added to the 
 Government Code   , to read:  
   22875.1.  (a) Notwithstanding Sections 22870, 22871, 22873, 22874,
and 22875, a state, California State University, or judicial branch
employee who is first employed on or after the date specified in
subdivision (e), shall not receive any portion of the employer
contribution payable for annuitants unless he or she is credited with
25 years of state service at the time of retirement.
   (b) This section shall apply only to an employee who retires for
service. For purposes of this section, "state service" means service
in at least one of the following categories:
   (1) As an employee of the state, including service as an appointed
officer of the state for compensation.
   (2) As an employee of the California State University.
   (3) As an employee of the judicial branch, except for all court
services rendered by a justice of the Supreme Court or a Court of
Appeal, or by a judge of a superior court.
   (c) This section does not apply to employees of the Legislature,
or to service rendered as an elected officer of the state for
compensation.
   (d) 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.
   (e) The changes made by the act adding this section shall be
operative on the date the act takes effect.
   SEC. 35.    Section 22894 is added to the  
Government Code   , to read:  
   22894.  (a) A contracting agency and the exclusive representative
of employees of that agency may agree through collective bargaining
that the employer contribution for employee and annuitant health
benefits coverage for employees first hired on or after the effective
date of a memorandum of understanding may differ from the employer
contribution provided to existing employees and annuitants pursuant
to Sections 22890 and 22892. This issue may not be subject to labor
negotiation impasse procedures.
   (b) If the memorandum of understanding establishes a retroactive
effective date, any employee who is first hired on or before the date
the memorandum of understanding is signed shall retain status as an
existing employee for purposes of determining eligibility for
postretirement health benefits coverage.
   (c) If the contracting agency applies a different contribution
rate to employees not represented by a bargaining unit, the
contracting agency shall certify to the board that, with regard to
those employees, there is not an applicable memorandum of
understanding.
   (d) An agreement reached pursuant to subdivision (a) is not valid
if it provides an employer contribution for employees with less than
five years of credited service with the contracting agency.
   (e) The contracting agency shall provide, in the manner prescribed
by the board, notice of any agreement entered into pursuant to this
section and any additional information necessary to implement this
section. 
   SEC. 36.    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 to facilitate the orderly administration of public
retirement systems and public employee health benefit systems subject
to this act at the earliest possible time, it is necessary that this
act take effect immediately.  
  SECTION 1.    Section 22000 of the Government Code
is amended to read:
   22000.  It is the policy of the Legislature that the protection
afforded to employees in positions covered by a retirement system on
the date an agreement under this part is made applicable to service
performed in those positions, or to periodic
                  benefits received under that retirement system,
will not be impaired as a result of making the agreement or as a
result of a legislative enactment made in anticipation of the
agreement.