BILL NUMBER: AB 89	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Hill

                        JANUARY 6, 2011

   An act to add Section 7503.5 to the Government Code, relating to
retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 89, as introduced, Hill. Retirement: public employees.
   The Public Employees' Retirement Law creates the Public Employees'
Retirement System, which provides a defined benefit to its members
based on age at retirement, service credit, and final compensation,
as defined. The State Teachers' Retirement Law and the retirement
laws for county employees and city employees also provide for a
defined benefit based on age at retirement, service credit, and final
compensation.
   This bill would specify that, notwithstanding any other law, for
the purposes of determining a retirement benefit paid to a person who
first becomes a member of a public retirement system on or after
January 1, 2012, the maximum salary, compensation, or payrate upon
which retirement benefits shall be based shall not exceed an amount
set forth in a specified provision of the Internal Revenue Code.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 7503.5 is added to the Government Code, to
read:
   7503.5.  Notwithstanding any other law, for the purposes of
determining a retirement benefit paid to a person who first becomes a
member of a public retirement system on or after January 1, 2012,
the maximum salary, compensation, or payrate upon which retirement
benefits shall be based shall not exceed the amount specified in
Section 401(a)(17) of Title 26 of the United States Code, or it
successor.