BILL NUMBER: AB 340	PROPOSED
	BILL TEXT
	PROPOSED CONFERENCE REPORT   AUGUST 28, 2012
	CONFERENCE REPORT NO.  1
	PROPOSED IN CONFERENCE  AUGUST 28, 2012
	AMENDED IN SENATE  SEPTEMBER 7, 2011
	AMENDED IN SENATE  SEPTEMBER 2, 2011
	AMENDED IN SENATE  JUNE 22, 2011
	AMENDED IN ASSEMBLY  APRIL 25, 2011
	AMENDED IN ASSEMBLY  APRIL 14, 2011
	AMENDED IN ASSEMBLY  APRIL 11, 2011
	AMENDED IN ASSEMBLY  FEBRUARY 24, 2011

INTRODUCED BY   Assembly Member Furutani
    (   Principal coauthor:   Senator 
 Negrete McLeod   ) 
   (  Coauthors:   Assembly Members
  Huber     and Ma
  Coauthor:  Assembly Member   Allen
 )

                        FEBRUARY 10, 2011

    An act relating to public employees' retirement.
  An act to amend Sections 24214 and 24214.5 of, and to
add Sections 22119.3, 22164.5, 24202.6, 24202.7, and 24202.8 to, the
Education Code, to amend Sections 9355.4, 9355.41, 9355.45, 20281.5,
20516, 21076, and 31461 of, to amend and renumber Section 1243 of, to
add Sections 20516.5, 20677.96, 20683.2, 20791, 21076.5, 31542,
31542.5, 31543, 31631, and 31631.5 to, to add Article 4 (commencing
with Section 7522) to Chapter 21 of Division 7 of Title 1 of, to add
a heading to Article 1 (commencing with Section 7500), to add a
heading to Article 2 (commencing with Section 7515), and to add a
heading to Article 3 (commencing with Section 7520) of Chapter 21 of
Division 7 of Title 1 of, to add and repeal   Sections
7522.66 and 21400 of, and to repeal the headings of Chapter 21.4
(commencing with Section 7515) and Chapter 21.5 (commencing with
Section 7520) of Division 7 of Title 1 of, the Government Code,
relating to public employees' retirement, and making an appropriation
therefor. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 340, as amended, Furutani. Public employees' retirement. 
   (1) The Public Employees' Retirement Law (PERL) establishes the
Public Employees' Retirement System (PERS) and the Teachers'
Retirement Law establishes the State Teachers' Retirement System
(STRS) for the purpose of providing pension benefits to specified
public employees. Existing law also establishes the Judges'
Retirement System II which provides pension benefits to elected
judges and the Legislators' Retirement System which provides pension
benefits to elective officers of the state other than judges and to
legislative statutory officers. The County Employees Retirement Law
of 1937 authorizes counties to establish retirement systems pursuant
to its provisions in order to provide pension benefits to county,
city, and district employees.  
   This bill would require a public retirement system, as defined, to
modify its plan or plans to comply with this act. The bill would
establish new retirement formulas that could not be exceeded by a
public employer offering a defined benefit pension plan, setting the
maximum benefit allowable for employees first hired on or after
January 1, 2013, as a formula commonly known as 2.5% at age 67 for
nonsafety members, one of 3 formulas for safety members, 2% at age
57, 2.5% at age 57, or 2.7% at age 57, and 1.25% at age 67 for new
state miscellaneous or industrial members who elect to be in Tier 2.
The amount of pensionable compensation upon which a defined benefit
for new members, as defined, could be based would be limited to an
amount determined under a specified provision of federal law for an
employee whose service is included in the federal system, which is
$110,100 for 2012, and 120% of that amount for an employee whose
service is not included in the federal system. Those amounts would be
adjusted annually, as specified. The bill would authorize an
employer to contribute to a defined contribution plan, as specified.
 
    The bill would prohibit a public employer from making
contributions on behalf of a person who first becomes a member on or
after January 1, 2013, to any qualified retirement plan based on any
portion of compensation that exceeds an amount specified in federal
law, which is $250,000 for 2012. The bill would also prohibit, for
the purposes of determining a retirement benefit paid to a new member
of a public retirement system, the maximum salary, compensation, or
payrate taken into account under the retirement plan for any year
from exceeding the amount specified in that federal provision, and
would prohibit a public employer from seeking an exception to that
prohibition.  
    The bill would prohibit a public employer from offering a plan of
replacement benefits for a person who is first hired on or after
January 1, 2013, and any survivors or beneficiaries whose retirement
benefits are limited by a specified provision of federal law. 

   The bill would prohibit a public employer from providing a
retirement health benefit vesting schedule or other specified
retirement benefits to a manager or an employee or officer who is
excluded from collective bargaining that is more advantageous than
that provided generally to other public employees of the same
employer who are in related membership classifications.  
   (2) Existing law defines final compensation for various employment
classifications in connection with the benefits provided by the
retirement systems.  
   This bill, 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, 2013, would require that final
compensation mean the member's highest average annual pensionable
compensation earned, as defined, during a period of at least 36
consecutive months, or at least 3 school years, as specified. 

   (3) Existing state and local public employee retirement systems
are funded by investment returns and employer and employee
contributions. The California Constitution provides that the
retirement board of a public pension or retirement system has the
exclusive power to provide for actuarial services in order to ensure
the competency of the assets of the system. Existing law, with
respect to PERS, requires the Governor to include in the annual
Budget Act the contribution rates submitted by the system actuary of
the liability on account of employees of the state.  
   This bill would require public employees who are first employed on
and after January 1, 2013, and who contribute to a defined benefit
plan to contribute at least 1/2 of the annual actuarially determined
normal costs, and would prohibit a public employer from contributing
in any fiscal year, in combination with employee contributions, less
than the plan normal cost, except as specified. The bill would
authorize employee contributions to be more than 1/2 of the normal
costs if agreed to through collective bargaining, but would prohibit
the employer from using impasse procedures to increase an employee
rate. The bill would also state that equal sharing of the normal cost
between the employer and employees shall be the standard and would
prescribe specified increases in employee contribution rates for
existing employees. By increasing the contribution to continuously
appropriated funds, this bill would make an appropriation.  

   (4) The Teachers' Retirement Law establishes the Defined Benefit
Program of STRS, which provides a defined benefit to members of the
system based on final compensation, credited service, and age at
retirement, subject to certain variations. The Teachers' Retirement
Law also establishes the Defined Benefit Supplement Program, which
provides supplemental retirement, disability, and other benefits,
payable either in a lump-sum payment or an annuity, or both, to
members of the State Teachers' Retirement Plan. The Teachers'
Retirement Law defines creditable compensation for these purposes as
remuneration that is payable in cash to all persons in the same class
of employees, as specified, for performing creditable service. 

   This bill would revise the definition of creditable compensation
for these purposes and would identify certain payments,
reimbursements, and compensation that are creditable compensation to
be applied to the Defined Benefit Supplement Program. The bill would
prohibit an employer from offering a supplemental defined benefit
plan unless it offered one before January 1, 2013.  
   The bill would establish a retirement formula of 2.4% at age 65
and set a minimum retirement age of 55 for a member of STRS who is
hired on or after January 1, 2013. The bill would state the intent of
the Legislature that STRS propose statutory changes to fully
effectuate those changes by June 30, 2013.  
   (5) Existing law permits members of PERS, STRS, and county, city,
and district retirement systems that have adopted specified
provisions, to purchase up to 5 years of nonqualified service credit
by making specified contributions to the system.  
   This bill, on and after January 1, 2013, would prohibit a public
retirement system from allowing the purchase of nonqualified service
credit, as described above, except as specified.  
   Under existing law, retirement benefits may be increased
retroactively or prospectively.  
   This bill would provide that any enhancement to a public
retirement system's retirement formula or benefit that is adopted on
or after January 1, 2013, would apply only to service performed on or
after the operative date of the enhancement. The bill would also
provide that, if a change to a member's classification or employment
results in an increase in the retirement formula or benefit
applicable to that member, the increase would apply only to service
performed on or after the operative date of the change. The bill
would also, until January 1, 2018, specify the benefit amount for
industrial disability retirement.  
   (6) Existing law requires the final compensation of a local member
for the purpose of determining any pension or benefit resulting from
state service as an elective or appointed officer on a city council
or a county board of supervisors accrued while in membership, to be
based on the highest average annual compensation earnable by the
member during the period of state service in each elective or
appointed office.  
   This bill, for the purpose of determining any pension or benefit
resulting from the local service, would require final compensation to
be based on the highest average annual pensionable compensation
earned.  
   (7) Existing law provides that any elected public officer who
takes public office, or is reelected to public office, on or after
January 1, 2006, who is convicted of any specified felony arising
directly out of his or her official duties, forfeits all rights and
benefits accrued on and after January 1, 2006, under, and membership
in, any public retirement system in which he or she is a member,
effective on the date of final conviction, as specified.  
   This bill would instead require that a public employee, including
one who is elected or appointed to a public office, who is convicted
of any state or federal felony for conduct arising out of, or in the
performance of, his or her official duties in pursuit of the office
or appointment, or in connection with obtaining salary, disability
retirement, service retirement, or other benefits, forfeit retirement
benefits earned or accrued from the earliest date of the commission
of the felony to the forfeiture date, as specified. The bill would
also require any contributions to the public retirement system made
by the public employee on or after the earliest date of commission of
the felony to be returned, without interest, to the public employee
upon the occurrence of a distribution event, as defined, unless
otherwise ordered by a court or determined by the pension
administrator. The bill would also make related, conforming changes.
 
   (8) PERL establishes the circumstances in which a retired person
may serve without reinstatement from retirement or loss or
interruption of benefits, including as a member of a board,
commission, or advisory committee, upon appointment by certain state
officials, by the director of a state department, or by the governing
board of a contracting agency. Existing law generally prohibits any
person who has been retired from being employed in any capacity with
the same public employer unless he or she is first reinstated from
retirement, except as authorized.  
   This bill would authorize a retired person, who is first appointed
on or after January 1, 2013, to a part-time or nonsalaried position
on a state board or commission, to serve without reinstatement, as
specified. The bill would prohibit a retired person who retires from
a public employer from serving, being employed by, or being employed
through a contract directly by a public employer in the same
retirement system from which the retiree receives a pension benefit
without reinstatement, except as specified.  
   (9) The Teachers' Retirement Law limits the amount of compensation
for certain creditable service activities by a retired member to be
$22,000 adjusted by the percentage change in the average compensation
earnable by active members of the Defined Benefit Program, from the
1998-99 fiscal year to the fiscal year ending in the previous
calendar year.  
   The bill would change that limit in the Teachers' Retirement Law
to be 1/2 of the median final compensation of all members who retired
for service during the fiscal year ending in the previous calendar
year and would define those activities as retired member activities.
 
   (10) The Legislators' Retirement Law (LRL) provides pension
benefits based in part upon credited service. The LRL also authorizes
the Insurance Commissioner and every legislative statutory officer
and every elective officer of the state whose office is provided for
by the California Constitution, except judges, to become a member of
the Legislators' Retirement System (LRS). PERL authorizes legislative
statutory officers and elective officers, as defined, to elect to
become members of PERS.  
   This bill would prohibit anyone who first becomes, on or after
January 1, 2013, the Insurance Commissioner, a legislative statutory
officer, or an elective officer of the state whose office is provided
for by the California Constitution from becoming a member of the LRS
but would continue to provide optional membership in PERS. 

   (11) Existing law authorizes any public agency to participate in,
and make its employees members of, PERS by contract. In the case of
an employee who has been employed by one or more contracting public
agencies, retirement benefits distributed to that employee are based
on the highest final compensation under any system, and each system
makes a separate retirement payment to the employee based upon the
number of years that the employee worked for each of those agencies.
 
   The bill would require the Board of Administration of PERS to
implement program changes to ensure that a contracting agency that
creates a significant increase in actuarial liability bears the
associated liability. The bill would require the system actuary to
assess an increase in liability in this regard to the employer that
created it at the time the increase is determined and to make
adjustments to that employer's rates to account for the increased
liability. The bill would apply these requirements to any significant
increase in actuarial liability due to increased compensation paid
to a nonrepresented employee regardless of when the increase in
compensation occurred.  
   (12) The County Employees Retirement Law of 1937 (CERL) authorizes
counties and districts, as defined, to provide a system of
retirement benefits to their employees. CERL defines compensation
earnable for the purpose of calculating benefits as the average
compensation for the period under consideration with respect to the
average number of days ordinarily worked by persons in the same grade
or class of positions during the period, and at the same rate of
pay, as determined by the retirement board.  
   This bill would prohibit a variety of payments, including
unscheduled overtime, payments for unused vacation, sick leave, or
compensatory time off, exceeding what may be earned and payable in
each 12-month period during the final average salary period, and
specified payments made at the termination of employment from being
included in compensation earnable. The bill would require the board
to establish a procedure for assessing and determining whether an
element of compensation was paid to enhance a member's retirement
benefit and would prohibit that compensation from being included in
compensation earnable.  
   The bill would require the board to provide notice to the member
and employer upon a final determination that compensation was paid to
enhance a member's retirement benefit. The bill would authorize the
member or employer to obtain judicial review of the board's action by
filing a petition for writ of mandate, as specified.  
   The bill would authorize the board to assess a county or district
a reasonable amount to cover the cost of audit, adjustment, or
correction, if it determines that a county or district knowingly
failed to comply with specified reporting requirements. 

   The State Teachers' Retirement System, the Public Employees'
Retirement System, the Judges' Retirement System, and the Judges
Retirement System II provide pension benefits based in part upon
credited service. Under existing law, counties and districts, as
defined, may provide retirement benefits to their employees pursuant
to the County Employees Retirement Law of 1937.  
   This bill would declare the intent of the Legislature to convene a
conference committee to craft responsible, comprehensive legislation
to reform state and local pension systems in a manner that reflects
both the legitimate needs of public employees and the fiscal
circumstances of state and local governments. 
   Vote: majority. 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 22119.3 is added to the 
 Education Code   , to read:  
   22119.3.  (a) "Creditable compensation" for members who are
subject to the California Public Employees' Pension Reform Act of
2013 (Article 4 (commencing with Section 7522) of Chapter 21 of
Division 7 of Title 1 of the Government Code) shall not mean and
shall not include any compensation that is excluded from the
definition of pensionable compensation pursuant to Section 7522.34 of
the Government Code.
   (b) Creditable compensation credited to the Defined Benefit Plan
shall be consistent with requirements for pensionable compensation
pursuant to Section 7522.34 of the Government Code.
   (c) Notwithstanding subdivision (a), member and employer
contributions, exclusive of contributions pursuant to Section 22951,
on creditable compensation for creditable service that exceeds one
year in a school year shall be credited to the Defined Benefit
Supplement Program. 
   SEC. 2.    Section 22164.5 is added to the  
Education Code   , to read:  
   22164.5.  (a) "Retired member activities" means one or more
activities identified in subdivision (a) or (b) of Section 22119.5 or
subdivision (a) or (b) of Section 26113 within the California public
school system and performed by a member retired for service under
this part as one of the following:
   (1) An employee of an employer.
   (2) An employee of a third party, except as specified in
subdivision (b).
   (3) An independent contractor.
   (b) The activities of an employee of a third party shall not be
included in the definition of "retired member activities" if all of
the following conditions apply:
   (1) The employee performs a limited-term assignment.
   (2) The third-party employer does not participate in a California
public pension system.
   (3) The activities performed by the individual are not normally
performed by employees of an employer, as defined in Section 22131.

   SEC. 3.    Section 24202.6 is added to the  
Education Code   , to read:  
   24202.6.  (a) A member who is first hired on or after January 1,
2013, shall receive a retirement allowance consisting of all of the
following:
   (1) (A) An annual allowance payable in monthly installments upon
retirement equal to the percentage of the final compensation set
forth opposite the member's age at retirement in the following table
multiplied by each year of credited service: 
      Age at Retirement           Percentage 
 62......................           2.000
 62 /4...................           2.033 
 62 /2...................           2.067 
 62 /4...................           2.100 
 63......................           2.133 
 63 /4...................           2.167 
 63 /2...................           2.200 
 63 /4...................           2.233 
 64......................           2.267 
 64 /4...................           2.300 
 64 /2...................           2.333 
 64 /4...................           2.367 
 65......................           2.400 


   (B) If a member retires after attaining early retirement age but
before attaining normal retirement age, the member's allowance shall
be reduced by one-half of 1 percent for each full month, or fraction
of a month, that will elapse until the member will attain normal
retirement age.
   (2) An annuity that shall be the actuarial equivalent of the
member's accumulated annuity deposit contributions at the time of
retirement.
   (3) An annuity based on the balance of credits in the member's
Defined Benefit Supplement account, pursuant to Section 25012, if
elected by the member pursuant to Section 25011 or 25011.1.
   (b) In computing the amounts described in paragraph (1) of
subdivision (a), the age of the member on the last day of the month
in which the retirement allowance begins to be payable or the later
date as described in Section 24204 shall be used.
   (c) Pensionable compensation used to calculate the defined benefit
shall be limited as described in Section 7522.10 of the Government
Code. 
   SEC. 4.    Section 24202.7 is added to the  
Education Code   , to read:  
   24202.7.  Notwithstanding any other provision of this part, for
any member who is first hired on or after January 1, 2013, the
minimum retirement age shall be 55 years of age, the early retirement
age shall be 55 years of age, and the normal retirement age shall be
62 years of age. 
   SEC. 5.    Section 24202.8 is added to the  
Education Code   , to read:  
   24202.8.  It is the intent of the Legislature that the system
identify and propose all statutory changes necessary to fully
effectuate the implementation of the changes established in Sections
24202.6 and 24202.7 in all relevant statutes by June 30, 2013. 
   SEC. 6.    Section   24214 of the  
Education Code   , as amended by Section 3 of Chapter 135
of the Statutes of 2012, is amended to read: 
   24214.  (a) A member retired for service under this part may
perform  the activities identified in subdivision (a) or (b)
of Section 22119.5, or subdivision (a) or (b) of Section 26113, as an
employee of an employer, as an employee of a third party, or as an
independent contractor within the California public school system,
  retired member activities,  but the member shall
not make contributions to the retirement fund or accrue service
credit based on compensation earned from that service. The employer
shall maintain accurate records of the earnings of the retired member
and report those earnings monthly to the system and retired member
as described in Section 22461.
   (b) If a member is retired for service under this part, the rate
of pay for  service   retired member activities,
 performed by that member  as an employee of the
employer, as an employee of a third party, or as an independent
contractor  shall not be less than the minimum, nor exceed
 that   the maximum,  paid by the employer
to other employees performing comparable duties.
   (c) A member retired for service under this part shall not be
required to reinstate for performing  the activities
identified in subdivision (a) or (b) of Section 22119.5 as an
employee of an employer, as an employee of a third party, or as an
independent contractor within the California public school system
  retired member activities  .
   (d) A member retired for service under this part may earn
compensation for performing  activities identified in
subdivision (a) or (b) of Section 22119.5   retired
member activities  in any one school year up to the limitation
specified in subdivision (f)  as an employee of an employer,
as an employee of a third party, or as an independent contractor,
within the California public school system,  without a
reduction in his or her retirement allowance.
   (e) The postretirement compensation limitation provisions set
forth in this section are not applicable to compensation earned for
the performance of  the activities described in subdivision
(a)   retired member activities  for which the
employer is not eligible to receive state apportionment or to
compensation that is not creditable pursuant to Section 22119.2.
   (f) The limitation that shall apply to the compensation for
performance of  the activities identified in subdivision (a)
or (b) of Section 22119.5 by a member retired for service under this
part either as an employee of an employer, an employee of a third
party, or as an independent contractor   retired member
activities  shall, in any one school year, be an amount
calculated by the board each July 1 equal to one-half of the median
final compensation of all members who retired for service during the
fiscal year  to the fiscal year  ending in the
previous calendar year.
   (g) If a member retired for service under this part earns
compensation for performing  activities identified in
subdivision (a) or (b) of Section 22119.5   retired
member activities,  in excess of the limitation specified in
subdivision (f)  , as an employee of an employer, as an
employee of a third party, or as an independent contractor, within
the California public school system  , and if that
compensation is not exempt from that limitation under subdivision
 (e)   (h)  or any other 
provisions of  law, the member's retirement allowance shall
be reduced by the amount of the excess compensation. The amount of
the reduction may be equal to the monthly allowance payable but shall
not exceed the amount of the annual allowance payable under this
part for the fiscal year in which the excess compensation was earned
after any reduction made in accordance with subdivision (b) of
Section 24214.5.
   (h) The limitation specified in this section is not applicable to
compensation paid to a member retired for service under this part who
has returned to work after the date of retirement as a trustee,
 administrator, or  fiscal adviser  approved
  ,   fiscal expert, receiver, or special
trustee appointed  by the Superintendent of Public Instruction,
 the State Board of Education,  the Board of Governors of
the California Community Colleges, or a county superintendent of
schools to address academic or financial weaknesses in a school
district pursuant to any of the following provisions:
   (1) Section 41320.1.
   (2) Article 2 (commencing with Section 42122) of Chapter 6 of Part
24 of Division 3 of Title 2.
   (3) Article 3.1 (commencing with Section 52055.57) of Chapter 6.1
of Part 28 of Division 4 of Title 2.
   (4) Section 84040.
   (i) The Superintendent of Public Instruction,  the Executive
Director of the State Board of Education,  the Chancellor of the
California Community Colleges, or the county superintendent of
schools exercising the exemption pursuant to subdivision (h) shall
submit all documentation required by the system to substantiate the
eligibility of the retired member for the exemption, including
compliance with  subdivision (h)   subdivisions
(j) and (k)  . The documentation shall be received by the system
prior to the retired member's performance of  any activity
specified in subdivision (a) or (b) of Section 22119.5 or subdivision
(a) or (b) of Section 26113  retired member activities
 . 
   (j) Subdivision (h) shall not apply to a member who has not
attained normal retirement age at the time the compensation is earned
by the member, received additional service credit pursuant to
Section 22714 or 22715, or received from any public employer any
financial inducement to retire in the previous six months. For
purposes of this section and Section 24214.5, "financial inducement
to retire" includes, but is not limited to, any form of compensation
or other payment that is paid directly or indirectly by a public
employer to the member, even if not in cash, either before or after
retirement, if the member retires for service on or before a specific
date or specific range of dates established by the public employer
on or before the date the inducement is offered. The system shall
liberally interpret this subdivision to further the Legislature's
intent to make subdivision (h) inapplicable to members if the member
received a financial incentive from any public employer to retire or
otherwise terminate employment with the public employer. 

   (j) 
   (k)  The documentation required for subdivision (i) shall
include certification of the following:
   (1) The position was first advertised for appointment to current
active or inactive members of the program with the necessary
qualifications to perform the requirements of the position and no
qualified current active or inactive member was available to be
appointed.
   (2) The appointing authority made a good faith effort to hire a
retired member who reinstated to active membership for the position
at the same salary that was offered as first advertised pursuant to
paragraph (1).
   (3) The appointing authority, having tried and failed to hire a
current active or inactive member or a reinstated retired member,
hired a retired member and the salary offered to the retired member
subject to this paragraph does not exceed the salary that was offered
as first advertised pursuant to paragraph (1). 
   (4) The appointment shall be terminated no later than June 30,
2013.  
   (5) 
    (4)  The salary paid shall be no greater than the salary
offered to current active members for the appointed position.

   (k) An employee of a third party shall not be subject to this
section if he or she meets all of the following conditions:

   (1) He or she performs a limited-term assignment. 

   (2) The third-party employer does not participate in a California
public pension system.  
   (3) The activities performed by the individual are not normally
performed by employees of the employer, as defined in Section 22131.

   (  l  ) The amendments to this section enacted during the
1995-96 Regular Session shall be deemed to have become operative on
July 1, 1996.
   (m) This section shall apply to compensation paid during the
2012-13  fiscal year   and 2013-14 fiscal years
 .
   (n) This section shall become inoperative on  June 30,
2013,   July 1, 2014,  and, as of January 1,
 2014,   2015,  is repealed, unless a later
enacted statute, that becomes operative on or before January 1,
 2014,   2015,  deletes or extends the
dates on which it becomes inoperative and is repealed.
   SEC. 7.    Section   24214 of the  
Education Code   , as amended by Section 4 of Chapter 135
of the Statutes of 2012, is amended to read: 
   24214.  (a) A member retired for service under this part may
perform the activities identified in subdivision (a) or (b) of
Section 22119.5, or subdivision (a) or (b) of Section 26113, as an
employee of an employer, as an employee of a third party, or as an
independent contractor within the California public school system,
but the member shall not make contributions to the retirement fund or
accrue service credit based on compensation earned from that
service. The employer shall maintain accurate records of the earnings
of the retired member and report those earnings monthly to the
system and retired member as described in Section 22461.
   (b) If a member is retired for service under this part, the rate
of pay for service performed by that member as an employee of the
employer, as an employee of a third party, or as an independent
contractor within the California public school system shall not be
less than the minimum, nor exceed that paid by the employer to other
employees performing comparable duties.
   (c) A member retired for service under this part shall not be
required to reinstate for performing the activities identified in
subdivision (a) or (b) of Section 22119.5 as an employee of an
employer, as an employee of a third party, or as an independent
contractor within the California public school system.
   (d) A member retired for service under this part may earn
compensation for performing activities identified in subdivision (a)
or (b) of Section 22119.5 in any one school year up to the limitation
specified in subdivision (f) as an employee of an employer, as an
employee of a third party, or as an independent contractor, within
the California public school system, without a reduction in his or
her retirement allowance.
   (e) The postretirement compensation limitation provisions set
forth in this section are not applicable to compensation earned for
the performance of the activities described in subdivision (a) for
which the employer is not eligible to receive state apportionment or
to compensation that is not creditable pursuant to Section 22119.2.
   (f) The limitation that shall apply to the compensation for
performance of the activities identified in subdivision (a) or (b) of
Section 22119.5 by a member retired for service under this part
either as an employee of an employer, an employee of a third party,
or as an independent contractor shall, in any one school year, be an
amount calculated by the board each July 1 equal to one-half of the
median final compensation of all members who retired for service
during the fiscal year ending in the previous calendar year.
   (g) If a member retired for service under this part earns
compensation for performing activities identified in subdivision (a)
or (b) of Section 22119.5 in excess of the limitation specified in
subdivision (f), as an employee of an employer, as an employee of a
third party, or as an independent contractor, within the California
public school system, the member's retirement allowance shall be
reduced by the amount of the excess compensation. The amount of the
reduction may be equal to the monthly allowance payable but may not
exceed the amount of the annual allowance payable under this part for
the fiscal year in which the excess compensation was earned after
any reduction made in accordance with subdivision (b) of Section
24214.5.
   (h) An employee of a third party shall not be subject to this
section if he or she meets all of the following conditions:
   (1) He or she performs a limited-term assignment.
   (2) The third-party employer does not participate in a California
public pension system.
   (3) The activities performed by the individual are not normally
performed by employees of the employer, as defined in Section 22131.
   (i) The language of this section derived from the amendments to
the section of this number added by Chapter 394 of the Statutes of
1995, enacted during the 1995-96 Regular Session, is deemed to have
become operative on July 1, 1996.
   (j)  This section shall become operative on July 1,  2013
  2014  .
   SEC. 8.    Section 24214.5 of the  
Education Code   is amended to read: 
   24214.5.  (a) Notwithstanding  subdivision (f) of 
Section 24214,  as of July 1, 2010,  the
postretirement compensation limitation  that shall apply to
the compensation for performance of the activities identified in
subdivision (a) or (b) of Section 22119.5 either as an employee of an
employer, an employee of a third party, or as an independent
contractor, within the California public school system, 
shall be zero dollars ($0)  during   in either
of the following circumstances: 
    (1)     During  the first  six
calendar months   180 days  after the most recent
retirement of a member retired for service under this part  ,
if the member is below normal retirement age at the time the
compensation is earned  . 
   (2) During the first six consecutive months after the most recent
retirement if the member received additional service credit pursuant
to Section 22714 or 22715 or received from any public employer any
financial inducement to retire, as defined by subdivision (j) of
Section 24214.  
   (b) If the member has attained normal retirement age at the time
the compensation is earned, subdivision (a) shall not apply and
Section 24214 shall apply if the appointment has been approved by the
governing body of the employer in a public meeting, as reflected in
a resolution adopted by the governing body of the employer prior to
the performance of retired member activities, expressing its intent
to seek an exemption from the limitation specified in subdivision
(a). Approval of the appointment may not be placed on a consent
calendar. Notwithstanding any other provision of Article 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code or any state or federal law incorporated by
subdivision (k) of Section 6254 of the Government Code, the
resolution shall be subject to disclosure by the entity adopting the
resolution and the system. The resolution shall include the following
specific information and findings:  
   (1) The nature of the employment.  
   (2) A finding that the appointment is necessary to fill a
critically needed position before 180 days have passed.  
   (3) A finding that the member is not ineligible for application of
this subdivision pursuant to subdivision (d).  
   (4) A finding that the termination of employment of the retired
member with the employer is not the basis for the need to acquire the
services of the member.  
   (c) Subdivision (b) shall not apply to a retired member whose
termination of employment with the employer is the basis for the need
to acquire the services of the member.  
   (d) Subdivision (b) shall not apply if the member received
additional service credit pursuant to Section 22714 or 22715 or
received from any public employer any financial inducement to retire.
 
   (e) The Superintendent, the county superintendent of schools, or
the chief executive officer of a community college shall submit all
documentation required by the system to substantiate the eligibility
of the retired member for application of subdivision (b), including,
but not limited to, the resolution adopted pursuant to that
subdivision.  
   (f) If a member will be receiving compensation for performance of
retired member activities before 180 days after the most recent
retirement, the Superintendent, the county superintendent of schools,
or the chief executive officer of a community college shall submit
all documentation required by the system that certifies that the
member did not receive from any public employer any financial
inducement to retire.  
   (g) The documentation required by this section shall be received
by the system prior to the retired member's performance of retired
member activities.  
   (h) Within 30 calendar days after the receipt of all documentation
required by the system pursuant to this section, the system shall
inform the entity seeking application of the exemption specified in
subdivision (b), or seeking to employ a retired member pursuant to
subdivision (f), and the retired member whether the compensation paid
to the member will be subject to the limitation specified in
subdivision (a).  
   (b) 
    (i)  If a member retired for service under this part
earns compensation for performing  activities identified in
subdivision (a) or (b) of Section 22119.5   retired
member activities  in excess of the limitation specified in
subdivision (a)  , as an employee of an employer, as an
employee of a third party, or as an independent contractor, within
the California public school system  , the member's
retirement allowance shall be reduced by the amount of the excess
compensation. The amount of the reduction may be equal to the monthly
allowance payable but may not exceed the amount of the 
annual allowance payable under this part for the fiscal year in which
the excess compensation was earned   allowance payable
during the first 180 days, in accordance with subdivision (a), after
a member   retired for service under this part  .
   SEC. 9.    Section 1243 of the   Government
Code   is amended and renumbered to read: 
    1243.   7522.70.   (a) This section
shall apply to any elected public officer who takes public office, or
is reelected to public office, on or after January 1, 2006.
   (b) If an elected public officer is convicted during or after
holding office of any felony involving accepting or giving, or
offering to give, any bribe, the embezzlement of public money,
extortion or theft of public money, perjury, or conspiracy to commit
any of those crimes arising directly out of his or her official
duties as an elected public officer, he or she shall forfeit all
rights and benefits under, and membership in, any public retirement
system in which he or she is a member, effective on the date of final
conviction.
   (c) The elected public officer described in subdivision (b) shall
forfeit only that portion of his or her rights and benefits that
accrued on or after January 1, 2006, on account of his or her service
in the elected public office held when the felony occurred.
   (d) Any contributions made by the elected public officer described
in subdivision (b) to the public retirement system that arose
directly from or accrued solely as a result of his or her forfeited
service as an elected public officer shall be returned, without
interest, to the public officer.
   (e) The public agency that employs an elected public officer
described in subdivision (b) shall notify the public retirement
system in which the officer is a member of the officer's conviction.
   (f)  An elected public officer shall not forfeit his or her rights
and benefits pursuant to subdivision (b) if the governing body of
the elected public officer's employer, including, but not limited to,
the governing body of a city, county, or city and county, authorizes
the public officer to receive those rights and benefits.
   (g) For purposes of this section, "public officer" means an
officer of the state, or an officer of a county, city, city and
county, district, or authority, or any department, division, bureau,
board, commission, agency, or instrumentality of any of these
entities.
   (h) This section applies to any person appointed to service for
the period of an elected public officer's unexpired term of office.

                               (i) On and after January 1, 2013, this
section shall not apply in any instance in which Section 7522.72 or
7522.74 applies. 
   SEC. 10.    The heading of Article 1 (commencing with
Section 7500) is added to Chapter 21 of Division 7 of Title 1 of the
  Government Code  , to read:  

      Article 1.  General Provisions


   SEC. 11.    The heading of Chapter 21.4 (commencing
with Section 7515) of Division 7 of Title 1 of the  
Government Code   is repealed.  
      CHAPTER 21.4.  JOINT RETIREMENT SYSTEM INVESTMENT INFORMATION
SHARING


   SEC. 12.    The heading of Article 2 (commencing with
Section 7515) is added to Chapter 21 of Division 7 of Title 1 of the
  Government Code  , to read:  

      Article 2.  Joint Retirement System Investment Information
Sharing


   SEC. 13.    The heading of Chapter 21.5 (commencing
with Section 7520) of Division 7 of Title 1 of the  
Government Code   is repealed.  
      CHAPTER 21.5.  DEPOSITS OF PUBLIC PENSION AND RETIREMENT FUNDS


   SEC. 14.    The heading of Article 3 (commencing with
Section 7520) is added to Chapter 21 of Division 7 of Title 1 of the
  Government Code   , to read:  

      Article 3.  Deposits of Public Pension and Retirement Funds


   SEC. 15.    Article 4 (commencing with Section 7522)
is added to Chapter 21 of Division 7 of Title 1 of the  
Government Code   , to read:  

      Article 4.  California Public Employees' Pension Reform Act of
2013


   7522.  This article shall be known as the California Public
Employees' Pension Reform Act of 2013.
   7522.02.  (a) (1) Notwithstanding any other law, except as
provided in this article, on and after January 1, 2013, this article
shall apply to all state and local public retirement systems and to
their participating employers, including the Public Employees'
Retirement System, the State Teachers' Retirement System, the
Legislators' Retirement System, the Judges' Retirement System I, the
Judges' Retirement System II, county and district retirement systems
created pursuant to the County Employees Retirement Law of 1937,
independent public retirement systems, and to individual retirement
plans offered by public employers. However, this article shall be
subject to the Internal Revenue Code and Section 17 of Article XVI of
the California Constitution. The administration of the requirements
of this article shall comply with applicable provisions of the
Internal Revenue Code and the Revenue and Taxation Code.
   (2) Notwithstanding paragraph (1), this article shall not apply to
the entities described in Section 9 of Article IX of, and Sections 4
and 5 of Article XI of, the California Constitution, except to the
extent that these entities continue to be participating employers in
any retirement system governed by state statute. Accordingly, any
retirement plan approved before January 1, 2013, by the voters of any
entity excluded from coverage by this section shall not be affected
by this article.
   (b) The benefit plan required by this article shall apply to
public employees who are new members as defined in Section 7522.04.
   (c) Individuals who were employed by any public employer before
January 1, 2013, and who became employed by a subsequent public
employer for the first time on or after January 1, 2013, shall be
subject to the retirement plan that would have been available to
employees of the subsequent employer who were first employed by the
subsequent employer on or before December 31, 2012, if the individual
was subject to reciprocity established under any of the following
provisions:
   (1) Article 5 (commencing with Section 20350) of Chapter 3 of Part
3 of Division 5 of Title 2.
   (2) Chapter 3 (commencing with Section 31450) of Part 3 of
Division 4 of Title 3.
   (3) Any agreement between public retirement systems to provide
reciprocity to members of the systems.
   (d) If a public employer, before January 1, 2013, offers a defined
benefit pension plan that provides a defined benefit formula with a
lower benefit factor at normal retirement age and results in a lower
normal cost than the defined benefit formula required by this
article, that employer may continue to offer that defined benefit
formula instead of the defined benefit formula required by this
article, and shall not be subject to the requirements of Section
7522.10 for pensionable compensation subject to that formula.
However, if the employer adopts a new defined benefit formula on or
after January 1, 2013, that formula must conform to the requirements
of this article or must be determined and certified by the retirement
system's chief actuary and the retirement board to have no greater
risk and no greater cost to the employer than the defined benefit
formula required by this article and must be approved by the
Legislature. New members of the defined benefit plan may only
participate in the lower cost defined benefit formula that was in
place before January 1, 2013, or a defined benefit formula that
conforms to the requirements of this article or is approved by the
Legislature as provided in this subdivision.
   (e) If a public employer, before January 1, 2013, offers a
retirement benefit plan that consists solely of a defined
contribution plan, that employer may continue to offer that plan
instead of the defined benefit pension plan required by this article.
However, if the employer adopts a new defined benefit pension plan
or defined benefit formula on or after January 1, 2013, that plan or
formula must conform to the requirements of this article or must be
determined and certified by the retirement system's chief actuary and
the system's board to have no greater risk and no greater cost to
the employer than the defined benefit formula required by this
article and must be approved by the Legislature. New members of the
employer's plan may only participate in the defined contribution plan
that was in place before January 1, 2013, or a defined contribution
plan or defined benefit formula that conforms to the requirements of
this article.
   (f) The Judges' Retirement System I and the Judges' Retirement
System II shall not be required to adopt the defined benefit formula
required by Section 7522.25 or 7522.30 or the compensation
limitations defined in Section 7522.10.
   (g) This article shall not be construed to provide membership in
any public retirement system for an individual who would not
otherwise be eligible for membership under that system's applicable
rules or laws.
   7522.04.  For the purposes of this article:
   (a) "Defined benefit formula" means a formula used by the
retirement system to determine a retirement benefit based on age,
years of service, and pensionable compensation earned by an employee
up to the limit defined in Section 7522.10.
   (b) "Employee contributions" means the contributions to a public
retirement system required to be paid by a member of the system, as
fixed by law, regulation, administrative action, contract, contract
amendment, or other written agreement recognized by the retirement
system as establishing an employee contribution.
   (c) "Federal system" means the old age, survivors, disability, and
health insurance provisions of the federal Social Security Act (42
U.S.C. Sec. 301 et seq.).
   (d) "Member" means a public employee who is a member of any type
of a public retirement system or plan.
   (e) "New employee" means either of the following:
   (1) An employee, including one who is elected or appointed, of a
public employer who is employed for the first time by any public
employer on or after January 1, 2013, and who was not employed by any
other public employer prior to that date.
   (2) An employee, including one who is elected or appointed, of a
public employer who is employed for the first time by any public
employer on or after January 1, 2013, and who was employed by another
public employer prior to that date, but who was not subject to
reciprocity under subdivision (c) of Section 7522.02.
   (f) "New member" means any of the following:
   (1) An individual who becomes a member of any public retirement
system for the first time on or after January 1, 2013, and who was
not a member of any other public retirement system prior to that
date.
   (2) An individual who becomes a member of a public retirement
system for the first time on or after January 1, 2013, and who was a
member of another public retirement system prior to that date, but
who was not subject to reciprocity under subdivision (c) of Section
7522.02.
   (3) An individual who was an active member in a retirement system
and who, after a break in service of more than six months, returned
to active membership in that system with a new employer. For purposes
of this subdivision, a change in employment between state entities
or from one school employer to another shall not be considered as
service with a new employer.
   (g) "Normal cost" means the portion of the present value of
projected benefits under the defined benefit that is attributable to
the current year of service, as determined by the public retirement
system's actuary according to the most recently completed valuation.
   (h) "Public employee" means an officer, including one who is
elected or appointed, or an employee of a public employer.
   (i) "Public employer" means:
   (1) The state and every state entity, including, but not limited
to, the Legislature, the judicial branch, including judicial
officers, and the California State University.
   (2) Any political subdivision of the state, or agency or
instrumentality of the state or subdivision of the state, including,
but not limited to, a city, county, city and county, a charter city,
a charter county, school district, community college district, joint
powers authority, joint powers agency, and any public agency,
authority, board, commission, or district.
   (3) Any charter school that elects or is required to participate
in a public retirement system.
   (j) "Public retirement system" means any pension or retirement
system of a public employer, including, but not limited to, an
independent retirement plan offered by a public employer that the
public employer participates in or offers to its employees for the
purpose of providing retirement benefits, or a system of benefits for
public employees that is governed by Section 401(a) of Title 26 of
the United States Code.
   7522.10.  (a) On and after January 1, 2013, each public retirement
system shall modify its plan or plans to comply with the
requirements of this section for each public employer that
participates in the system.
   (b) Whenever pensionable compensation, as defined in Section
7522.34, is used in the calculation of a benefit, the pensionable
compensation shall be subject to the limitations set forth in
subdivision (c).
   (c) The pensionable compensation used to calculate the defined
benefit paid to a new member who retires from the system shall not
exceed the following applicable percentage of the contribution and
benefit base specified in Section 430(b) of Title 42 of the United
States Code on January 1, 2013:
   (1) One hundred percent for a member whose service is included in
the federal system.
   (2) One hundred twenty percent for a member whose service is not
included in the federal system.
   (d) (1) The retirement system shall adjust the pensionable
compensation described in subdivision (c) following each actuarial
valuation based on changes to the Consumer Price Index for All Urban
Consumers. The adjustment shall be effective annually on January 1
following the annual valuation.
   (2) The Legislature reserves the right to modify the requirements
of this subdivision with regard to all public employees subject to
this section, except that the Legislature may not modify these
provisions in a manner that would result in a decrease in benefits
accrued prior to the effective date of the modification.
   (e) A public employer shall not offer a defined benefit or any
combination of defined benefits, including a defined benefit offered
by a private provider, on compensation in excess of the limitation in
subdivision (c).
   (f) (1) A public employer may provide a contribution to a defined
contribution plan for compensation in excess of the limitation in
subdivision (c) provided the plan and the contribution meet the
requirements and limits of federal law.
   (2) A public employee who receives an employer contribution to a
defined contribution plan shall not have a vested right to continue
receiving the employer contribution.
   (g) Any employer contributions to any employee defined
contribution plan above the pensionable compensation limits in
subdivision (c) shall not, when combined with the employer's
contribution to the employee's retirement benefits below the
compensation limit, exceed the employer's contribution level, as a
percentage of pay, required to fund the retirement benefits of
employees with income below the compensation limits.
   7522.15.  Except as provided in subdivisions (d) and (e) of
Section 7522.02, each public employer and each public retirement
system that offers a defined benefit plan shall offer only the
defined benefit formulas established pursuant to Sections 7522.20 and
7522.25 to new members.
   7522.18.  (a) A public employer that does not offer a supplemental
defined benefit plan before January 1, 2013, shall not offer a
supplemental defined benefit plan for any employee on or after
January 1, 2013.
   (b) A public employer that provides a supplemental defined benefit
plan, including a defined benefit plan offered by a private
provider, before January 1, 2013, shall not offer a supplemental
defined benefit plan to any additional employee group to which the
plan was not provided before January 1, 2013.
   (c) Except as provided in Chapter 38 (commencing with Section
25000) of Article 1 of Part 13 of Title 1 of the Education Code, a
public employer shall not offer or provide a supplemental defined
benefit plan, including a defined benefit plan offered by a private
provider, to any employee hired on or after January 1, 2013.
   7522.20.  (a) Each retirement system that offers a defined benefit
plan for nonsafety members of the system shall use the formula
prescribed by this section. The defined benefit plan shall provide a
pension at retirement for service equal to the percentage of the
member's final compensation set forth opposite the member's age at
retirement, taken to the preceding quarter year, in the following
table, multiplied by the number of years of service in the system as
a nonsafety member. A member may retire for service under this
section after five years of service and upon reaching 52 years of
age. 
 Age of Retirement        Fraction 
 52 ..................... 1.00 
 52 /4................... 1.025 
 52 /2................... 1.050 
 52 /4 .................. 1.075 
 53 ....................  1.100 
 53 /4................... 1.125 
 53 /2................... 1.150 
 53 /4................... 1.175 
 54 ..................... 1.200 
 54 /4................... 1.225 
 54 /2................... 1.250 
 54 /4................... 1.275 
 55 ..................... 1.300 
 55 /4................... 1.325 
 55 /2................... 1.350 
 55 /4................... 1.375 
 56 ..................... 1.400 
 56 /4................... 1.425 
 56 /2................... 1.450 
 56 /4................... 1.475 
 57 ..................... 1.500 
 57 /4................... 1.525 
 57 /2................... 1.550 
 57 /4................... 1.575 
 58 ..................... 1.600 
 58 /4................... 1.625 
 58 /2................... 1.650 
 58 /4................... 1.675 
 59 ..................... 1.700 
 59 /4................... 1.725 
 59 /2................... 1.750 
 59 /4................... 1.775 
 60 ..................... 1.800 
 60 /4................... 1.825 
 60 /2................... 1.850 
 60 /4................... 1.875 
 61 ..................... 1.900 
 61 /4................... 1.925 
 61 /2................... 1.950 
 61 /4................... 1.975 
 62 ..................... 2.000 
 62 /4................... 2.025 
 62 /2................... 2.050 
 62 /4................... 2.075 
 63 ..................... 2.100 
 63 /4................... 2.125 
 63 /2................... 2.150 
 63 /4................... 2.175 
 64 ..................... 2.200 
 64 /4................... 2.225 
 64 /2................... 2.250 
 64 /4................... 2.275 
 65 ..................... 2.300 
 65 /4................... 2.325 
 65 /2................... 2.350 
 65 /4................... 2.375 
 66 ..................... 2.400 
 66 /4................... 2.425 
 66 /2................... 2.450 
 66 /4................... 2.475 
 67 ..................... 2.500 


   (b) Pensionable compensation used to calculate the defined benefit
shall be limited as described in Section 7522.10.
   (c) A new member of the State Teachers' Retirement System shall be
subject to the formula established pursuant to Section 24202.6 of
the Education Code.
   7522.25.  (a) Each retirement system that offers a defined benefit
plan for safety members of the system shall use one or more of the
defined benefit formulas prescribed by this section. A member may
retire for service under any of the formulas in this section after
five years of service and upon reaching 50 years of age.
   (b) The Basic Safety Plan shall provide a pension at retirement
for service equal to the percentage of the member's final
compensation set forth opposite the member's age at retirement, taken
to the preceding quarter year, in the following table, multiplied by
the number of years of service in the system as a safety member.

 Age at Retirement                    Fraction 
 50 .............................       1.426 
 50 /4...........................       1.447 
 50 /2...........................       1.467 
 50 /4...........................       1.488 
 51 .............................       1.508 
 51 /4...........................       1.529 
 51 /2...........................       1.549 
 51 /4...........................       1.570 
 52 .............................       1.590 
 52 /4...........................       1.611 
 52 /2...........................       1.631 
 52 /4...........................       1.652 
 53 .............................       1.672 
 53 /4...........................       1.693 
 53 /2...........................       1.713 
 53 /4...........................       1.734 
 54 .............................       1.754 
 54 /4...........................       1.775 
 54 /2...........................       1.795 
 54 /4...........................       1.816 
 55 .............................       1.836 
 55 /4........................... 1.857 
 55 /2........................... 1.877 
 55 /4........................... 1.898 
 56 ............................. 1.918 
 56 /4........................... 1.939 
 56 /2........................... 1.959 
 56 /4........................... 1.980 
 57 and over .................... 2.00 


   (c) The Safety Option Plan One shall provide a pension at
retirement for service equal to the percentage of the member's final
compensation set forth opposite the member's age at retirement, taken
to the preceding quarter year, in the following table, multiplied by
the number of years of service in the system as a safety member.

   Age at Retirement                  Fraction 
 50 ............................       2.000 
 50 /4..........................       2.018 
 50 /2..........................       2.036 
 50 /4..........................       2.054 
 51 ............................       2.071 
 51 /4..........................       2.089 
 51 /2..........................       2.107 
 51 /4..........................       2.125 
 52 ............................       2.143 
 52 /4..........................       2.161 
 52 /2..........................       2.179 
 52 /4..........................       2.196 
 53 ............................       2.214 
 53 /4..........................       2.232 
 53 /2..........................       2.250 
 53 /4..........................       2.268 
 54 ............................       2.286 
 54 /4..........................       2.304 
 54 /2..........................       2.321 
 54 /4..........................       2.339 
 55.............................       2.357 
 55 /4..........................       2.375 
 55 /2..........................       2.393 
 55 /4..........................       2.411 
 56.............................       2.429 
 56 /4..........................       2.446 
 56 /2..........................       2.464 
 56 /4..........................       2.482 
 57 and over....................       2.500 


   (d) The Safety Option Plan Two shall provide a pension at
retirement for service equal to the percentage of the member's final
compensation set forth opposite the member's age at retirement, taken
to the preceding quarter year, in the following table, multiplied by
the number of years of service in the system as a safety member.

 Age at Retirement                    Fraction 
 50 .............................       2.000 
 50 /4...........................       2.025 
 50 /2...........................       2.050 
 50 /4...........................       2.075 
 51 .............................       2.100 
 51 /4...........................       2.125 
 51 /2...........................       2.150 
 51 /4...........................       2.175 
 52 .............................       2.200 
 52 /4...........................       2.225 
 52 /2...........................       2.250 
 52 /4...........................       2.275 
 53 .............................       2.300 
 53 /4...........................       2.325 
 53 /2...........................       2.350 
 53 /4...........................       2.375 
 54 .............................       2.400 
 54 /4...........................       2.425 
 54 /2...........................       2.450 
 54 /4...........................       2.475 
 55 .............................       2.500 
 55 /4...........................       2.525 
 55 /2...........................       2.550 
 55 /4...........................       2.575 
 56 .............................       2.600 
 56 /4...........................       2.625 
 56 /2...........................       2.650 
 56 /4...........................       2.675 
 57 and over ....................       2.700 


   (e)  On and after January 1, 2013, an employer shall offer one or
more of the safety formulas prescribed by this section to new
employees who are safety employees eligible for membership in the
system. The formula offered shall be the formula that is closest to,
and provides a lower benefit at 55 years of age than, the formula
provided to members in the same retirement classification offered by
the employer on December 31, 2012.
   (f) On and after January 1, 2013, an employer and its employees
subject to Safety Option Plan One or Safety Option Plan Two may agree
in a memorandum of understanding to be subject to Safety Option Plan
One or the Basic Safety Plan, subject to the following:
   (1) The lower plan shall apply to members first employed on or
after the effective date of the lower plan, and shall be agreed to in
a memorandum of understanding that has been collectively bargained
in accordance with applicable laws.
   (2) A retirement plan contract amendment with a public retirement
system to alter a retirement formula pursuant to this subdivision
shall not be implemented by the employer in the absence of a
memorandum                                            of
understanding that has been collectively bargained in accordance with
applicable laws.
   (3) An employer shall not use impasse procedures to impose the
lower plan.
   (4) An employer shall not provide a different defined benefit for
nonrepresented, managerial, or supervisory employees than the
employer provides for other public employees, including represented
employees, of the same employer who are in the same membership
classifications.
   (g) Pensionable compensation used to calculate the defined benefit
shall be limited as described in Section 7522.10.
   7522.30.  (a) This section shall apply to all public employers and
to all new members. Equal sharing of normal costs between public
employers and public employees shall be the standard. The standard
shall be that employees pay at least 50 percent of normal costs and
that employers not pay any of the required employee contribution.
   (b) The "normal cost rate" shall mean the annual actuarially
determined normal cost for the defined benefit plan of an employer
expressed as a percentage of payroll.
   (c) New employees employed on and after January 1, 2013, by those
public employers defined in paragraphs (2) and (3) of subdivision (i)
of Section 7522.04, the California State University, and the
judicial branch who participate in a defined benefit plan shall have
an initial contribution rate of at least 50 percent of the normal
cost rate for that defined benefit plan, rounded to the nearest
quarter of 1 percent, or the current contribution rate of similarly
situated employees, whichever is greater. This contribution shall not
be paid by the employer on the employee's behalf.
   (d) Notwithstanding subdivision (c), once established, the
employee contribution rate described in subdivision (c) shall not be
adjusted on account of a change to the normal cost rate unless the
normal cost rate increases or decreases by more than 1 percent of
payroll above or below the normal cost rate in effect at the time the
employee contribution rate is first established or, if later, the
normal cost rate in effect at the time of the last adjustment to the
employee contribution rate under this section.
   (e) Notwithstanding subdivision (c), employee contributions may be
more than one-half of the normal cost rate if the increase has been
agreed to through the collective bargaining process, subject to the
following conditions:
   (1) The employer shall not contribute at a greater rate to the
plan for nonrepresented, managerial, or supervisory employees than
the employer contributes for other public employees, including
represented employees, of the same employer who are in related
retirement membership classifications.
   (2) The employer shall not increase an employee contribution rate
in the absence of a memorandum of understanding that has been
collectively bargained in accordance with applicable laws.
   (3) The employer shall not use impasse procedures to increase an
employee contribution rate above the rate required by this section.
    (f) If the terms of a contract, including a memorandum of
understanding, between a public employer and its public employees,
that is in effect on January 1, 2013, would be impaired by any
provision of this section, that provision shall not apply to the
public employer and public employees subject to that contract until
the expiration of that contract. A renewal, amendment, or any other
extension of that contract shall be subject to the requirements of
this section.
   7522.32.  For the purposes of determining a retirement benefit to
be paid to a new member of a public retirement system, the following
shall apply:
   (a) Final compensation shall mean the highest average annual
pensionable compensation earned by the member during a period of at
least 36 consecutive months, or at least three school years if
applicable, immediately preceding his or her retirement or last
separation from service if earlier, or during any other period of at
least 36 consecutive months during the member's applicable service
that the member designates on the application for retirement.
   (b) On or after January 1, 2013, an employer shall not modify a
benefit plan to permit a calculation of final compensation on a basis
of less than the average annual compensation earned by the member
during a consecutive 36-month period, or three school years if
applicable, for members who have been subject to at least a 36-month
or three-school-year calculation prior to that date.
   7522.34.  (a) "Pensionable compensation" of a new member of any
public retirement system means the normal monthly rate of pay or base
pay of the member paid in cash to similarly situated members of the
same group or class of employment for services rendered on a
full-time basis during normal working hours, pursuant to publicly
available pay schedules.
   (b) Compensation that has been deferred shall be deemed
pensionable compensation when earned rather than when paid.
   (c) "Pensionable compensation" does not include the following:
   (1) Any compensation determined by the board to have been paid to
increase a member's retirement benefit under that system.
   (2) Compensation that had previously been provided in kind to the
member by the employer or paid directly by the employer to a third
party other than the retirement system for the benefit of the member
and which was converted to and received by the member in the form of
a cash payment.
   (3) Any one-time or ad hoc payments made to a member.
   (4) Severance or any other payment that is granted or awarded to a
member in connection with or in anticipation of a separation from
employment, but is received by the member while employed.
   (5) Payments for unused vacation, annual leave, personal leave,
sick leave, or compensatory time off, however denominated, whether
paid in a lump sum or otherwise, regardless of when reported or paid.

   (6) Payments for additional services rendered outside of normal
working hours, whether paid in a lump sum or otherwise.
   (7) Any employer-provided allowance, reimbursement, or payment,
including, but not limited to, one made for housing, vehicle, or
uniforms.
   (8) Compensation for overtime work, other than as defined in
Section 207(k) of Title 29 of the United States Code.
   (9) Employer contributions to deferred compensation or defined
contribution plans.
   (10) Any bonus paid in addition to the compensation described in
subdivision (a).
   (11) Any other form of compensation a public retirement board
determines is inconsistent with the requirements of subdivision (a).
   (12) Any other form of compensation a public retirement board
determines should not be pensionable compensation.
   7522.40.  A public employer shall not provide to a public employee
who is elected or appointed, a trustee, excluded from collective
bargaining, exempt from civil service, or a manager any health
benefit vesting schedule that is more advantageous than that provided
generally to other public employees, including represented
employees, of the same public employer who are in related retirement
membership classifications.
   7522.42.  (a) In addition to any other benefit limitation
prescribed by law, for the purposes of determining a public
retirement benefit paid to a new member of a public retirement
system, the maximum salary, compensation, or payrate taken into
account under the plan for any year shall not exceed the amount
permitted to be taken into account under Section 401(a)(17) of Title
26 of the United States Code or its successor.
   (b) A public employer shall not seek an exception to the
prohibition in subdivision (a) on or after January 1, 2013.
   (c) For employees first hired on or after January 1, 2013, a
public employer shall not make employer contributions to any
qualified retirement plan or plans on behalf of an employee based on
that portion of the amount of total pensionable compensation that
exceeds the amount specified in Section 401(a)(17) of Title 26 of the
United States Code, or its successor.
   (d) This section shall not apply to salary, compensation, or
payrate paid to individuals who, due to their dates of hire, are not
subject to the limits specified in subdivision (a).
   7522.43.  (a) A public employer shall not offer a plan of
replacement benefits for members and any survivors or beneficiaries
whose retirement benefits are limited by Section 415 of Title 26 of
the United States Code. This section shall apply to new employees.
   (b) A public retirement system may continue to administer a plan
of replacement benefits for employees first hired prior to January 1,
2013.
   (c) A public employer that does not offer a plan o replacement
benefits prior to January 1, 2013, shall not offer such a plan for
any employee on or after January 1, 2013.
   (d) A public employer that offers a plan of replacement benefits
prior to January 1, 2013, shall not offer such a plan to any
additional employee group to which the plan was not provided prior to
January 1, 2013.
   7522.44.  This section shall apply to all public employers and to
all public employees:
   (a) Any enhancement to a public employee's retirement formula or
retirement benefit adopted on or after January 1, 2013, shall apply
only to service performed on or after the operative date of the
enhancement and shall not be applied to any service performed prior
to the operative date of the enhancement.
   (b) If a change to a member's retirement membership classification
or a change in employment results in an enhancement in the
retirement formula or retirement benefit applicable to that member,
that enhancement shall apply only to service performed on or after
the operative date of the change and shall not be applied to any
service performed prior to the operative date of the change.
   (c) For purposes of this section, "operative date" in a collective
bargaining agreement means one of the following:
   (1) The date that the agreement is signed by the parties.
   (2) A date agreed to by the parties that will occur after the date
that the agreement is signed by the parties.
   (3) A date designated by the parties that occurred prior to the
date the agreement was signed if the most recent collective
bargaining contract was expired at the time of the agreement and the
date designated is not earlier than 12 months prior to the date of
the agreement or the day after the last day of the expired bargaining
contract, whichever occurred later.
   (d) For purposes of this section, an increase to a retiree's
annual cost-of-living adjustment within existing statutory limits
shall not be considered to be an enhancement to a retirement benefit.

   7522.46.  (a) A public retirement system shall not allow the
purchase of nonqualified service credit, as defined by Section 415(n)
(3)(C) of the Internal Revenue Code of 1986 (26 U.S.C. Sec 415(n)(3)
(C)).
   (b) Subdivision (a) shall not apply to an official application to
purchase nonqualified service credit that is received by the public
retirement system prior to January 1, 2013, that is subsequently
approved by the system.
   7522.48.  (a) Final compensation of a member for the purpose of
determining any pension or benefit resulting from service as an
elective or appointed officer on a city council or a county board of
supervisors accrued while in membership of a public retirement system
shall be based on the highest average annual pensionable
compensation earned by the member during the period of service in
each elective or appointed office. Where that elective or appointed
service is a consideration in the computation of any pension or
benefit, the member may have more than one final compensation.
   (b) Any final compensation calculation shall otherwise be subject
to this article except that if any individual period of elective
service is less than 36 months or three years, then the entire period
of that individual's elected service shall be used to determine the
final compensation for that period of service.
   (c) This section shall apply to a member first elected or
appointed to a city council or a county board of supervisors on or
after January 1, 2013.
   7522.52.  (a) In any fiscal year, a public employer's contribution
to a defined benefit plan, in combination with employee
contributions to that defined benefit plan, shall not be less than
the normal cost rate, as defined in Section 7522.30, for that defined
benefit plan for that fiscal year.
   (b) The board of a public retirement system may suspend
contributions when all of the following apply:
   (1) The plan is funded by more than 120 percent, based on a
computation by the retirement system actuary in accordance with the
Governmental Accounting Standards Board requirements that is included
in the annual valuation.
   (2) The retirement system actuary, based on the annual valuation,
determines that continuing to accrue excess earnings could result in
disqualification of the plan's tax-exempt status under the provisions
of the federal Internal Revenue Code.
   (3) The board determines that the receipt of any additional
contributions required under this section would conflict with its
fiduciary responsibility set forth in Section 17 of Article XVI of
the California Constitution.
   7522.56.  (a) This section shall apply to any person who is
receiving a pension benefit from a public retirement system and shall
supersede any other provision in conflict with this section.
   (b) A retired person shall not serve, be employed by, or be
employed through a contract directly by, a public employer in the
same public retirement system from which the retiree receives the
benefit without reinstatement from retirement, except as permitted by
this section.
   (c) A person who retires from a public employer may serve without
reinstatement from retirement or loss or interruption of benefits
provided by the retirement system upon appointment by the appointing
power of a public employer either during an emergency to prevent
stoppage of public business or because the retired person has skills
needed to perform work of limited duration.
   (d) Appointments of the person authorized under this section shall
not exceed a total for all employers in that public retirement
system of 960 hours or other equivalent limit, in a calendar or
fiscal year, depending on the administrator of the system. The rate
of pay for the employment shall not be less than the minimum, nor
exceed the maximum, paid by the employer to other employees
performing comparable duties, divided by 173.333 to equal an hourly
rate. A retired person whose employment without reinstatement is
authorized by this section shall acquire no service credit or
retirement rights under this section with respect to the employment
unless he or she reinstates from retirement.
   (e) (1) Notwithstanding subdivision (c), any retired person shall
not be eligible to serve or be employed by a public employer if,
during the 12-month period prior to an appointment described in this
section, the retired person received any unemployment insurance
compensation arising out of prior employment subject to this section
with a public employer. A retiree shall certify in writing to the
employer upon accepting an offer of employment that he or she is in
compliance with this requirement.
   (2) A retired person who accepts an appointment after receiving
unemployment insurance compensation as described in this subdivision
shall terminate that employment on the last day of the current pay
period and shall not be eligible for reappointment subject to this
section for a period of 12 months following the last day of
employment.
   (f) A retired person shall not be eligible to be employed pursuant
to this section for a period of 180 days following the date of
retirement unless he or she meets one of the following conditions:
   (1) The employer certifies the nature of the employment and that
the appointment is necessary to fill a critically needed position
before 180 days has passed and the appointment has been approved by
the governing body of the employer in a public meeting. The
appointment may not be placed on a consent calendar.
   (2) The state employer certifies the nature of the employment and
that the appointment is necessary to fill a critically needed state
employment position before 180 days has passed and the appointment
has been approved by the Department of Human Resources. The
department may establish a process to delegate appointing authority
to individual state agencies, but shall audit the process to
determine if abuses of the system occur. If necessary, the department
may assume an agency's appointing authority for retired workers and
may charge the department an appropriate amount for administering
that authority.
   (3) The retiree is eligible to participate in the Faculty Early
Retirement Program pursuant to a collective bargaining agreement with
the California State University that existed prior to January 1,
2013, or has been included in subsequent agreements.
   (4) The retiree is a public safety officer of firefighter.
   (g) A retired person who accepted a retirement incentive upon
retirement shall not be eligible to be employed pursuant to this
section for a period of 180 days following the date of retirement and
subdivision (f) shall not apply.
   (h) This section shall not apply to a person who is retired from
the State Teachers' Retirement System, and who is subject to Section
24214, 24214.5, or 26812 of the Education Code.
   (i) This section shall not apply to (1) a subordinate judicial
officer whose position, upon retirement, is converted to a judgeship
pursuant to Section 69615, and he or she returns to work in the
converted position, and the employer is a trial court, or (2) a
retiree who takes office as a judge of a court of record pursuant to
Article VI of the California Constitution or a retiree of the Judges'
Retirement System I or the Judges' Retirement System II who is
appointed to serve as a retired judge.
   7522.57.  (a) This section shall apply to any retired person who
is receiving a pension benefit from a public retirement system and is
first appointed on or after January 1, 2013, to a salaried position
on a state board or commission. This section shall supersede any
other provision in conflict with this section.
   (b) A person who is retired from a public retirement system may
serve without reinstatement from retirement or loss or interruption
of benefits provided that appointment is to a part-time state board
or commission. A retired person whose employment without
reinstatement is authorized by this subdivision shall acquire no
benefits, service credit, or retirement rights with respect to the
employment. Unless otherwise defined in statute, for the purpose of
this section, a part-time appointment shall mean an appointment with
a salary of no more than $60,000 annually, which shall be increased
in any fiscal year in which a general salary increase is provided for
state employees. The amount of the increase provided by this section
shall be comparable to, but shall not exceed, the percentage of the
general salary increases provided for state employees during that
fiscal year.
   (c) A person who is retired from the Public Employees' Retirement
System shall not serve on a full-time basis on a state board or
commission without reinstatement unless that person serves as a
nonsalaried member of the board or commission and receives only per
diem authorized to all members of the board or commission. A person
who serves as a nonsalaried member of a board or commission shall not
earn any service credit or benefits in the Public Employees'
Retirement System or make contributions with respect to the service
performed.
   (d) A person retired from a public retirement system other than
the Public Employees' Retirement System who is appointed on a
full-time basis to a state board or commission shall choose one of
the following options:
   (1) The person may serve as a nonsalaried member of the board or
commission and continue to receive his or her retirement allowance,
in addition to any per diem authorized to all members of the board or
commission. The person shall not earn service credit or benefits in
the Public Employees' Retirement System and shall not make
contributions with respect to the service performed.
   (2) (i) The person may suspend his or her retirement allowance or
allowances and instate as a new member of the Public Employees'
Retirement System for the service performed on the board or
commission. The pensionable compensation earned pursuant to this
paragraph shall not be eligible for reciprocity with any other
retirement system or plan.
   (ii) Upon retiring for service after serving on the board or
commission, the appointee shall be entitled to reinstatement of any
suspended benefits, including employer provided retiree health
benefits, that he or she was entitled to at the time of being
appointed to the board or commission.
   (e) Notwithstanding subdivisions (c) and (d), a person who retires
from a public employer may serve without reinstatement from
retirement or loss or interruption of benefits provided by the
retirement system upon appointment to a full-time state board
pursuant to Section 5075 of the Penal Code.
   7522.66.  (a) A safety member of a public retirement system who
retires for industrial disability shall receive an industrial
disability retirement benefit equal to the greater of the following:
   (1) Fifty percent of his or her final compensation attributable to
the defined benefit plan, plus an annuity purchased with his or her
accumulated contributions, if any.
   (2) A service retirement allowance, if he or she is qualified for
service retirement.
   (3) An actuarially reduced factor, as determined by the actuary,
for each quarter year that his or her service age is less than 50
years of age, multiplied by the number of years of safety service
subject to the applicable formula, if he or she is not qualified for
service retirement.
   (b) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
   7522.72.  (a) This section shall apply to a public employee first
employed by a public employer or first elected or appointed to an
office before January 1, 2013, and, on and after that date, Section
7522.70 shall not apply.
   (b) (1) If a public employee is convicted by a state or federal
trial court of any felony under state or federal law for conduct
arising out of or in the performance of his or her official duties,
in pursuit of the office or appointment, or in connection with
obtaining salary, disability retirement, service retirement, or other
benefits, he or she shall forfeit all accrued rights and benefits in
any public retirement system in which he or she is a member to the
extent provided in subdivision (c) and shall not accrue further
benefits in that public retirement system, effective on the date of
the conviction.
           (2) If a public employee who has contact with children as
part of her official duties is convicted of a felony that was
committed within the scope of his or her official duties against or
involving a child who he or she has contact with as part of his or
her official duties, he or she shall forfeit all accrued rights and
benefits in any public retirement system in which he or she is a
member to the extent provided in subdivision (c) and shall not accrue
further benefits in that public retirement system, effective on the
date of the conviction.
   (c) (1) A public employee shall forfeit all the retirement
benefits earned or accrued from the earliest date of the commission
of any felony described in subdivision (b) to the forfeiture date,
inclusive. The retirement benefits shall remain forfeited
notwithstanding any reduction in sentence or expungement of the
conviction following the date of the public employee's conviction.
Retirement benefits attributable to service performed prior to the
date of the first commission of the felony for which the public
employee was convicted shall not be forfeited as a result of this
section.
   (2) For purposes of this subdivision, "forfeiture date" means the
date of the conviction.
   (d) (1) Any contributions to the public retirement system made by
the public employee described in subdivision (b) on or after the
earliest date of the commission of any felony described in
subdivision (b) shall be returned, without interest, to the public
employee upon the occurrence of a distribution event unless otherwise
ordered by a court or determined by the pension administrator.
   (2) Any funds returned to the public employee pursuant to
subdivision (d) shall be disbursed by electronic funds transfer to an
account of the public employee, in a manner conforming with the
requirements of the Internal Revenue Code, and the public retirement
system shall notify the court and the district attorney at least
three business days before that disbursement of funds.
   (3) For the purposes of this subdivision, a "distribution event"
means any of the following:
   (A) Separation from employment.
   (B) Death of the member.
   (C) Retirement of the member.
   (e) (1) Upon conviction, a public employee as described in
subdivision (b) and the prosecuting agency shall notify the public
employer who employed the public employee at the time of the
commission of the felony within 60 days of the felony conviction of
all of the following information:
   (A) The date of conviction.
   (B) The date of the first known commission of the felony.
   (2) The operation of this section is not dependent upon the
performance of the notification obligations specified in this
subdivision.
   (f) The public employer that employs or employed a public employee
described in subdivision (b) and that public employee shall each
notify the public retirement system in which the public employee is a
member of that public employee's conviction within 90 days of the
conviction. The operation of this section is not dependent upon the
performance of the notification obligations specified in this
subdivision.
   (g) A public retirement system may assess a public employer a
reasonable amount to reimburse the cost of audit, adjustment, or
correction, if it determines that the public employer failed to
comply with this section.
   (h) If a public employee's conviction is reversed and that
decision is final, the employee shall be entitled to do either of the
following:
   (1) Recover the forfeited retirement benefits as adjusted for the
contributions received pursuant to subdivision (d).
   (2) Redeposit those contributions and interest, as determined by
the system actuary, and then recover the full amount of the forfeited
benefits.
   (i) A public employee first employed by a public employer or first
elected or appointed to an office on or after January 1, 2013, shall
be subject to Section 7522.74.
   7522.74.  (a) This section shall apply to a public employee first
employed by a public employer or first elected or appointed to an
office on or after January 1, 2013, and on and after that date,
Section 7522.70 shall not apply.
   (b) (1) If a public employee is convicted by a state or federal
trial court of any felony under state or federal law for conduct
arising out of or in the performance of his or her official duties,
in pursuit of the office or appointment, or in connection with
obtaining salary, disability retirement, service retirement, or other
benefits, he or she shall forfeit all accrued rights and benefits in
any public retirement system in which he or she is a member to the
extent provided in subdivision (c) and shall not accrue further
benefits in that public retirement system, effective on the date of
the conviction.
   (2) If a public employee who has contact with children as part of
his or her official duties is convicted of a felony that was
committed within the scope of his or her official duties against or
involving a child who he or she has contact with as part of his or
her official duties, he or she shall forfeit all accrued rights and
benefits in any public retirement system in which he or she is a
member to the extent provided in subdivision (c) and shall not accrue
further benefits in that public retirement system, effective on the
date of the conviction.
   (c) (1) A public employee shall forfeit all the retirement
benefits earned or accrued from the earliest date of the commission
of any felony described in subdivision (b) to the forfeiture date,
inclusive. The retirement benefits shall remain forfeited
notwithstanding any reduction in sentence or expungement of the
conviction following the date of the public employee's conviction.
Retirement benefits attributable to service performed prior to the
date of the first commission of the felony for which the public
employee was convicted shall not be forfeited as a result of this
section.
   (2) For purposes of this subdivision, "forfeiture date" means the
date of the conviction.
   (d) (1) Any contributions to the public retirement system made by
the public employee described in subdivision (b) on or after the
earliest date of the commission of any felony described in
subdivision (b) shall be returned, without interest, to the public
employee upon the occurrence of a distribution event unless otherwise
ordered by a court or determined by the pension administrator.
   (2) Any funds returned to the public employee pursuant to
subdivision (d) shall be disbursed by electronic funds transfer to an
account of the public employee, in a manner conforming with the
requirements of the Internal Revenue Code, and the public retirement
system shall notify the court and the district attorney at least
three business days before that disbursement of funds.
   (3) For the purposes of this subdivision, a "distribution event"
means any of the following:
   (A) Separation from employment.
   (B) Death of the member.
   (C) Retirement of the member.
   (e) (1) Upon conviction, a public employee as described in
subdivision (b) and the prosecuting agency shall notify the public
employer who employed the public employee at the time of the
commission of the felony within 60 days of the felony conviction of
all of the following information:
   (A) The date of conviction.
   (B) The date of the first known commission of the felony.
   (2) The operation of this section is not dependent upon the
performance of the notification obligations specified in this
subdivision.
   (f) The public employer that employs or employed a public employee
described in subdivision (b) and that public employee shall each
notify the public retirement system in which the public employee is a
member of that public employee's conviction within 90 days of the
conviction. The operation of this section is not dependent upon the
performance of the notification obligations specified in this
subdivision.
   (g) A public retirement system may assess a public employer a
reasonable amount to reimburse the cost of audit, adjustment, or
correction, if it determines that the public employer failed to
comply with this section.
   (h) If a public employee's conviction is reversed and that
decision is final, the employee shall be entitled to do either of the
following:
   (1) Recover the forfeited retirement benefits as adjusted for the
contributions received pursuant to subdivision (d).
   (2) Redeposit those contributions and interest, as determined by
the system actuary, and then recover the full amount of the forfeited
benefits.
   (i) A public employee first employed by a public employer or first
elected or appointed to an office before January 1, 2013, shall be
subject to Section 7522.72. 
   SEC. 16.    Section 9355.4 of the   
 Government Code   is amended to read: 
   9355.4.   (a)    Every elective officer of the
state whose office is provided for by the California Constitution,
except judges, may become a member of this system. Except for judges,
every elective officer in office at the time this section becomes
effective may, within 90 days after the effective date, file with the
board a written election to become a member of this system. Except
for judges, every elective officer elected after the effective date
of this section may file an election within 90 days after the
commencement of the first term of office for which he or she is
elected. Upon the filing of the election he or she becomes a member
of this system on the first day of the month following the filing of
the election. 
   (b) This section shall not apply to any person who first becomes
an elective officer of the state on or after January 1, 2013. 
   SEC. 17.    Section 9355.41 of the   
 Government Code   is amended to read: 
   9355.41.   (a)    The Insurance Commissioner may
become a member of this system as provided in this section. An
Insurance Commissioner who is elected after January 1, 1994, may file
an election within 90 days after the commencement of the term of
office for which he or she is elected. Upon the filing of the
election he or she becomes a member of this system on the first day
of the month following the filing of the election. 
   (b) This section shall not apply to an Insurance Commissioner who
is first elected on or after January 1, 2013. 
  SEC. 18.    Section 9355.45 of the   
 Government Code   is amended to read: 
   9355.45.   (a)    Every legislative statutory
officer may become a member of this system. Every such officer in
office at the time this section becomes effective may, within 90 days
after the effective date, file with the board a written election to
become a member of this system. Every such officer, elected after the
effective date of this section, may file an election within 90 days
after the commencement of the first term of office for which he or
she is elected after attaining status as a legislative statutory
officer. Upon the filing of the election he or she becomes a member
of this system on the first day of the month following the filing of
the election. 
   (b) This section shall not apply to any person who first becomes a
legislative statutory officer on or after January 1, 2013. 
   SEC. 19.    Section 20281.5 of the   
 Government Code   is amended to read: 
   20281.5.  (a) Notwithstanding Section 20281, a person who becomes
a state miscellaneous member or state industrial member of the system
on or after the effective date of this section because the person is
first employed by the state and qualifies for membership shall be
subject to the provisions of this section.
   (b) Members subject to this section shall not accrue credit for
service in the system and shall not make employee contributions to
the system, including the contributions set forth in Section 20677.4,
for employment with the state until the first day of the first pay
period commencing 24 months after becoming a member of the system.
   (c) Notwithstanding subdivision (a), this section shall not apply
to any of the following:
   (1) Persons who are already members or annuitants of the system at
the time they are first employed by the state.
   (2) Employees of the California State University, or the
legislative or judicial branch of state government.
   (3) Members of the Judges' Retirement System, the Judges'
Retirement System II, the Legislators' Retirement System, the State
Teachers' Retirement System, or the University of California
Retirement Plan.
   (4) Persons who are members of a reciprocal retirement system and
whose employment was subject to a reciprocal retirement system within
the six months prior to membership in this system.
   (5) Persons whose service is not included in the federal system.
   (6) Persons who are employed by the Department of the California
Highway Patrol as students at the department's training school
established pursuant to Section 2262 of the Vehicle Code.
   (7) Persons who had ceased to be members pursuant to Section 20340
or 21075.
   (8) Persons who are National Guard members pursuant to Section
20380.5.
   (d) A separation of employment does not alter the 24-month period
described by subdivision (b). A member who separates from state
employment shall remain subject to this section if he or she returns
to state employment as a state miscellaneous or state industrial
member within that 24-month period.
   (e) Any regulations adopted by the board to implement the
requirements of this section shall not be subject to the review and
approval of the Office of Administrative Law, pursuant to Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3. The
regulations shall become effective immediately upon filing with the
Secretary of State. 
   (f) This section shall not apply to any person who first becomes a
state miscellaneous member or a state industrial member on or after
July 1, 2013. 
   SEC. 20.    Section 20516 of the  Government
Code   is amended to read: 
   20516.  (a) Notwithstanding any other provision of this part, 
with or without a change in benefit  a contracting agency and
its employees may agree, in writing, to share the costs of
any optional benefit that is inapplicable to a contracting agency
until the agency elects to be subject to the benefit  
the employer contribution  .  The cost sharing pursuant to
this section shall also apply for related nonrepresented  
employees as approved in a resolution passed by the contracting
agency.   The 
    (b)     The collective bargaining 
agreement shall specify the exact percentage of member compensation
that shall be paid toward the current service cost of the benefits by
members. The member contributions shall be  normal 
contributions over and above normal contributions otherwise required
by this part and shall be treated as normal contributions for all
purposes of this part. The contributions shall be uniform  ,
except as described in subdivision (c),  with respect to all
members within each of the following classifications: local
miscellaneous members, local police officers, local firefighters,
county peace officers, and all local safety members other than local
police officers, local firefighters, and county peace officers. The
balance of any costs shall be paid by the contracting agency and
shall be credited to the employer's account.  An employer shall
not use impasse procedures to impose member cost sharing on any
contribution amount above that which is required by law. 

   (b) This section shall not apply to any optional benefit that is
elected by a contracting agency prior to January 1, 1979. 

   (c) Member cost sharing may differ by classification for groups of
employees subject to different levels of benefits pursuant to
Sections 7522.20, 7522.25, and 20475, or by a recognized collective
bargaining unit if agreed to in a memorandum of understanding reached
pursuant to the applicable collective bargaining laws. 

   (c) 
    (d)  This section shall not apply to any contracting
agency nor to the employees of a contracting agency until the agency
elects to be subject to this section by contract or by amendment to
its contract made in the manner prescribed for approval of contracts.
Contributions provided by this section shall be withheld from member
compensation or otherwise collected when the contract amendment
becomes effective. 
   (d) 
    (e)  For the purposes of this section, all
contributions, liabilities, actuarial interest rates, and other
valuation factors shall be determined on the basis of actuarial
assumptions and methods that, in the aggregate, are reasonable and
which, in combination, offer the actuary's best estimate of
anticipated experience under this system. 
   (e) The additional employer contributions required under this
section shall be computed as a level percentage of member
compensation. The additional contribution rate required at the time
this section is added to a contract shall not be less than the sum of
(1) the actuarial normal cost, plus (2) the additional contribution
required to amortize the increase in accrued liability attributable
to benefits elected under this section over a period of not more than
30 years from the date this section becomes effective in the public
agency's contract. 
   (f) Nothing in this section shall preclude a contracting agency
and its employees from independently agreeing in a memorandum of
understanding to share the costs of any  optional benefit or
when initially entering into a contract, any  benefit, in a
manner inconsistent with this section. However, any agreement in a
memorandum of understanding that is inconsistent with this section
shall not be part of the contract between this system and the
contracting agency. 
   (g) If, and to the extent that, the board determines that a
cost-sharing agreement under this section would conflict with Title
26 of the United States Code, the board may refuse to approve the
agreement.  
   (h) Nothing in this section shall require a contracting agency to
enter into a memorandum of understanding or collective bargaining
agreement with a bargaining representative in order to increase the
amount of member contributions when such a member contribution
increase is authorized by other provisions under this part. 
   SEC. 21.    Section 20516.5 is added to the 
 Government Code   , to read:  
   20516.5.  (a) Equal sharing of normal costs between a contracting
agency or school employer and their employees shall be the standard.
It shall be the standard that employees pay at least 50 percent of
normal costs and that employers not pay any of the required employee
contribution.
   (b) Notwithstanding any other provision of this part, a
contracting agency or a school district may require that members pay
50 percent of the normal cost of benefits. However, that contribution
shall be no more than 8 percent of pay for local miscellaneous or
school members, no more than 12 percent of pay for local police
officers, local firefighters, and county peace officers, and no more
than 11 percent of pay for all local safety members other than police
officers, firefighters, and county peace officers.
   (c) Before implementing any change pursuant to subdivision (b),
for any represented employees, the employer shall complete the good
faith bargaining process as required by law, including any impasse
procedures requiring mediation and factfinding. Subdivision (b) shall
become operative on January 1, 2018. Subdivision (b) shall not apply
to any bargaining unit when the members of that contracting agency
or school district are paying for at least 50 percent of the normal
cost of their pension benefit or the contribution rates specified in
subdivision (b) under an agreement reached pursuant to Section 20516.

   SEC. 22.    Section 20677.96 is added to the 
 Government Code   , to read:  
   20677.96.  (a) Notwithstanding Sections 20677.95 and 20687,
beginning July 1, 2013, the normal rate of contribution for employees
subject to subdivision (a) of Section 20677.95 shall be the
contribution established pursuant to Section 20677.95, as adjusted by
Section 7522.30, in excess of the compensation identified in
subdivision (c) of Section 20677.95 and effective July 1, 2014, the
normal rate of contribution for employees subject to subdivision (a)
of Section 20677.95 shall be the contribution established pursuant to
Section 20677.95, as adjusted by Section 7522.30, in excess of the
compensation identified in subdivision (b) of Section 20677.95.
   (b) The contribution rate for a related state employee who is
exempted from the definition of "state employee," or an officer or
employee of the executive branch who is not a member of the civil
service, shall be adjusted accordingly. 
   SEC. 23.    Section 20683.2 is added to the 
 Government Code   , to read:  
   20683.2.  Equal sharing of normal costs between the state employer
and public employees shall be the standard. It shall be the standard
that employees pay at least 50 percent of normal costs and that
employers not pay any of the required employee contribution. Equal
sharing of normal costs is currently the standard for most state
employees.
   (a) Notwithstanding any other section of this code, or other
provision of law in conflict with this section, except as provided in
Section 7522.30, normal contribution rates for defined benefit plans
for state employees of public employers as defined in paragraph (1)
of subdivision (i) of Section 7522.04, excluding the California State
University, shall be determined as follows:
   (1) Normal cost contribution rates shall increase as follows:
   (A) The contribution rate for State Peace Officer/Firefighter
members in State Bargaining Unit 6 and for State Safety members in
State Bargaining Units 1, 3, 4, 7, 9, 10, 11, 14, 15, 17, 20, and 21
will increase by 1.0 percentage point on July 1, 2013, and will
increase by an additional 1.0 percentage point on July 1, 2014.
   (B) The contribution rate for State Peace Officer/Firefighter
members in State Bargaining Units 7 and 8 will increase by 1.5
percentage points on July 1, 2013, and will increase by an additional
1.5 percentage points on July 1, 2014.
   (C) The contribution rate for state industrial members in State
Bargaining Units 1, 3, 4, 6, 9, 10, 11, 14, 15, 17, and 20 will
increase by 1.0 percentage point on July 1, 2013.
   (D) The contribution rate for state miscellaneous and industrial
members that have elected the Second Tier benefit formula will
increase by 1.5 percentage points annually starting July 1, 2013. The
final annual increase in the contribution rate shall be adjusted as
appropriate.
   (E) The contribution rate for State Safety members in State
Bargaining Unit 2 and state miscellaneous members in State Bargaining
Unit 5 will increase by 1.0 percentage point on July 1, 2013.
   (F) The contribution rate for Patrol members in State Bargaining
Unit 5 will increase by 1.5 percentage points on July 1, 2013.
   (2) Consistent with paragraph (1), the normal rate of contribution
shall be adjusted accordingly for related state employees who are
exempted from the definition of "state employee," or officers and
employees of the executive, legislative, or judicial branch of state
government who are not members of the civil service.
   (b) Calculation of employee contribution rate increases pursuant
to this section shall be based upon compensation calculations
established pursuant to Sections 20671 to 20694, inclusive.
   (c) In addition to the actuarially required contribution, savings
realized by the state employer as a result of the employee
contribution rate increases required by this section shall be
allocated to any unfunded liability, subject to appropriation in the
annual budget act. 
   SEC. 24.    Section 20791 is added to the  
Government Code   , to read: 
    20791.  (a) The board shall define a significant
increase in actuarial liability due to increased compensation paid to
a nonrepresented employee and shall implement program changes to
ensure that a contracting agency that creates the significant
increase in actuarial liability bears the increased liability,
                                   including any portion of that
liability that otherwise would be borne by another contracting agency
or agencies.
   (b) Upon determining the significant increase in actuarial
liability, the system actuary shall assess the increase to the
employer that created it and adjust that employer's rates to account
for the increased liability.
   (c) This section shall not apply to compensation paid to an
employee for service performed while covered by a memorandum of
understanding or to compensation paid for service performed while a
member of a recognized employee organization as that term is defined
in Section 3501.
   (d) This section shall apply to any significant increase in
actuarial liability, due to increased compensation paid to a
nonrepresented employee, that is determined after January 1, 2013,
regardless of when that increase in compensation occurred.
   SEC. 25.    Section 21076 of t   he 
 Government Code   is amended to read: 
   21076.  (a) 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


   (b) This section shall not apply to a National Guard member. 
   (c) This section shall not apply to anyone who first becomes a
member on or after January 1, 2013. 
   SEC. 26.    Section 21076.5 is added to the 
 Government Code   , to read:  
   21076.5.  (a) The service retirement allowance for a state
miscellaneous or state industrial member who first becomes a member
on or after January 1, 2013, 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 of Retirement            Fraction 
             52                     0.6500 
           52 /4                    0.6600 
           52 /2                    0.6700 
           52 /4                    0.6800 
             53                     0.6900 
           53 /4                    0.7000 
           53 /2                    0.7100 
           53 /4                    0.7200 
             54                     0.7300 
           54 /4                    0.7400 
           54 /2                    0.7500 
           54 /4                    0.7600
             55                     0.7700 
           55 /4                    0.7800 
           55 /2                    0.7900 
           55 /4                    0.8000 
             56                     0.8100 
           56 /4                    0.8200 
           56 /2                    0.8300
           56 /4                    0.8400 
             57                     0.8500 
           57 /4                    0.8600 
           57 /2                    0.8700 
           57 /4                    0.8800 
             58                     0.8900 
           58 /4                    0.9000
           58 /2                    0.9100 
           58 /4                    0.9200 
             59                     0.9300 
           59 /4                    0.9400 
           59 /2                    0.9500 
           59 /4                    0.9600 
             60                     0.9700
           60 /4                    0.9800 
           60 /2                    0.9900 
           60 /4                    1.0000 
             61                     1.0100 
           61 /4                    1.0200 
           61 /2                    1.0300 
           61 /4                    1.0400 
             62                     1.0500 
           62 /4                    1.0600 
           62 /2                    1.0700 
           62 /4                    1.0800 
             63                     1.0900 
           63 /4                    1.1000 
           63 /2                    1.1100 
           63 /4                    1.1200 
             64                     1.1300 
           64 /4                    1.1400 
           64 /2                    1.1500 
           64 /4                    1.1600 
             65                     1.1700 
           65 /4                    1.1800 
           65 /2                    1.1900 
           65 /4                    1.2000 
             66                     1.2100 
           66 /4                    1.2200 
           66 /2                    1.2300 
           66 /4                    1.2400 
             67                     1.2500 


   (b) This section shall not apply to a National Guard member.
   SEC. 27.    Section 21400 is added to the  
Government Code   , to read:  
   21400.  (a) A safety member who retires on or after January 1,
2013, for industrial disability shall receive a disability retirement
benefit equal to the greater of the following:
   (1) Fifty percent of his or her final compensation, plus an
annuity purchased with his or her accumulated contributions, if any.
   (2) A service retirement allowance, if he or she is qualified for
service retirement.
   (3) An actuarially reduced factor, as determined by the actuary,
for each quarter year that his or her service age is less than 50
years, multiplied by the number of years of safety service subject to
the applicable formula, if he or she is not qualified for service
retirement.
   (4) Nothing in this section shall require a member to receive a
lower benefit than he or she would have received prior to January 1,
2013, as the law provided prior to that date.
   (b) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date. 
   SEC. 28.    Section 31461 of the  
Government Code   is amended to read:
   31461.   (a)    "Compensation earnable" by a
member means the average compensation as determined by the board, for
the period under consideration upon the basis of the average number
of days ordinarily worked by persons in the same grade or class of
positions during the period, and at the same rate of pay. The
computation for any absence shall be based on the compensation of the
position held by the member at the beginning of the absence.
Compensation, as defined in Section 31460, that has been deferred
shall be deemed "compensation earnable" when earned, rather than when
paid. 
   (b) "Compensation earnable" does not include, in any case, the
following:  
   (1) Any compensation determined by the board to have been paid to
enhance a member's retirement benefit under that system. That
compensation may include:  
   (A) Compensation that had previously been provided in kind to the
member by the employer or paid directly by the employer to a third
party other than the retirement system for the benefit of the member,
and which was converted to and received by the member in the form of
a cash payment in the final average salary period.  
   (B) Any one-time or ad hoc payment made to a member, but not to
all similarly situated members in the member's grade or class. 

   (C) Any payment that is made solely due to the termination of the
member's employment, but is received by the member while employed,
except those payments that do not exceed what is earned in each
12-month period during the final average salary period regardless of
when reported or paid.  
   (2) Payments for unused vacation, annual leave, personal leave,
sick leave, or compensatory time off, however denominated, whether
paid in a lump sum or otherwise, in an amount that exceeds that which
may be earned in each 12-month period during the final average
salary period, regardless of when reported or paid.  
   (3) Payments for additional services rendered outside of normal
working hours, whether paid in a lump sum or otherwise.  
   (4) Payments made at the termination of employment, except those
payments that do not exceed what is earned in each 12-month period
during the final average salary period, regardless of when reported
or paid. 
   SEC. 29.    Section 31542 is added to the  
Government Code   , to read: 
    31542.  (a) The board shall establish a procedure for
assessing and determining whether an element of compensation was paid
to enhance a member's retirement benefit. If the board determines
that compensation was paid to enhance a member's benefit, the member
or the employer may present evidence that the compensation was not
paid for that purpose. Upon receipt of sufficient evidence to the
contrary, a board may reverse its determination that compensation was
paid to enhance a member's retirement benefits.
   (b) Upon a final determination by the board that compensation was
paid to enhance a member's retirement benefit, the board shall
provide notice of that determination to the member and employer. The
member or employer may obtain judicial review of the board's action
by filing a petition for writ of mandate within 30 days of the
mailing of that notice.
   (c) Compensation that a member was entitled to receive pursuant to
a collective bargaining agreement that was subsequently deferred or
otherwise modified as a result of a negotiated amendment of that
agreement shall be considered compensation earnable and shall not be
deemed to have been paid to enhance a member's retirement benefit.
   SEC. 30.    Section 31542.5 is added to the 
 Government Code   , to read:  
   31542.5.  (a) When a county or district reports compensation to
the board, it shall identify the pay period in which the compensation
was earned regardless of when it was reported or paid. Compensation
shall be reported in accordance with Section 31461 and shall not
exceed compensation earnable, as defined in Section 31461.
   (b) The board may assess a county or district a reasonable amount
to cover the cost of audit, adjustment, or correction, if it
determines that a county or district knowingly failed to comply with
subdivision (a). A county or district shall be found to have
knowingly failed to comply with subdivision (a) if the board
determines that either of the following applies:
   (1) The county or district knew or should have known that the
compensation reported was not compensation earnable, as defined in
Section 31461.
   (2) The county or district failed to identify the pay period in
which compensation earnable was earned, as required by this section.
   (c) A county or district shall not pass on to an employee any
costs assessed pursuant to subdivision (b). 
   SEC. 31.    Section 31543 is added to the  
Government Code   , to read:  
   31543.  The board may audit a county or district to determine the
correctness of retirement benefits, reportable compensation, and
enrollment in, and reinstatement to, the system. During an audit, the
board may require a county or district to provide information, or
make available for examination or copying at a specified time and
place, books, papers, data, or records, including, but not limited
to, personnel and payroll records, as deemed necessary by the board.

   SEC. 32.    Section 31631 is added to the  
Government Code   , to read:  
   31631.  (a) Notwithstanding any other law, a board of supervisors
or the governing body of a district may, by resolution, ordinance,
contract, or contract amendment under this chapter, without a change
in benefits, require that members pay all or part of the
contributions of a member or employer, or both, for any retirement
benefits provided under this chapter. All of those payments are
hereby designated as employee contributions. For members who are
represented in a bargaining unit, the payment requirement shall be
approved in a memorandum of understanding executed by the board of
supervisors or the governing body of a district and the employee
collective bargaining representative. The contributions shall be
uniform either (1) with respect to all members of a recognized
bargaining unit or (2) within each of the following classifications:
local miscellaneous members, local police officers, local
firefighters, county peace officers, and all local safety members
other than local police officers, local firefighters, and county
peace officers and classifications covered pursuant to Sections
7522.20 and 7522.25.
   (b) Nothing in this section shall modify a board of supervisors'
or the governing body of a district's authority under law as it
existed on December 31, 2012, including any restrictions on that
authority, to change the amount of member contributions. 
   SEC. 33.   Section 31631.5 is added to the  
Government Code   , to read:  
   31631.5.  (a) (1) Notwithstanding any other provision of this
chapter, a board of supervisors or the governing body of a district
may require that members pay 50 percent of the normal cost of
benefits. However, that contribution shall be no more than 14 percent
above the applicable normal rate of contribution of members
established pursuant to this article for local general members, no
more than 33 percent above the applicable normal rate of contribution
of members established pursuant to Article 6.8 (commencing with
Section 21639) for local police officers, local firefighters, county
peace officers, and no more than 37 percent above the applicable
normal rate of contribution of members established pursuant to
Article 6.8 (commencing with Section 31639) for all local safety
members other than police officers, firefighters, and county peace
officers.
   (2) Before implementing any change pursuant to this subdivision
for any represented employees, the public employer shall complete the
good faith bargaining process as required by law, including any
impasse procedures requiring mediation and factfinding. This
subdivision shall become operative on January 1, 2018. This
subdivision shall not apply to any bargaining unit when the members
of that unit are paying at least 50 percent of the normal cost of
their pension benefit or are subject to an agreement reached pursuant
to paragraph (1). Applicable normal rate of contribution of members
means the statutorily authorized rate applicable to the member group
as the statutes read on December 31, 2012.
   (b) Nothing in this section shall modify a board of supervisors'
or the governing body of a district's authority under law as it
existed on December 31, 2012, including any restrictions on that
authority, to change the amount of member contributions.  
  SEC. 34.    The provisions of this act are severable. If
any provision of this act or its application is held invalid, that
invalidity shall not affect other provisions or applications that can
be given effect without the invalid provision or application. 

  SECTION 1.    It is the intent of the Legislature
to convene a conference committee to craft responsible, comprehensive
legislation to reform state and local pension systems in a manner
that reflects both the legitimate needs of public employees and the
fiscal circumstances of state and local governments.