BILL NUMBER: SB 987	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 29, 2012
	AMENDED IN SENATE  MARCH 26, 2012

INTRODUCED BY   Senator Negrete McLeod

                        JANUARY 31, 2012

   An act to amend Sections  20572,  21002, 21004,
and 75502 of, and to add Sections 9351.4, 20065.5, and 75004.5 to,
the Government Code, relating to public employees' retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 987, as amended, Negrete McLeod. Public employees' retirement.
   (1) The Public Employees' Retirement Law (PERL) creates the Public
Employees' Retirement System (PERS), which provides a defined
benefit to its members based on age at retirement, service credit,
and final compensation. Existing law also establishes the Judges'
Retirement System and the Judges' Retirement System II which provide
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.
   This bill would provide that all references to "spouse,"
"surviving spouse," or "marriage" in these provisions apply equally
to a domestic partner or domestic partnership, as defined, and all
rights and responsibilities granted to a spouse or surviving spouse
shall be granted equally to a domestic partner, as specified.

   (2) PERL authorizes the Board of Administration of PERS to
terminate a contract with a contracting agency that fails to pay any
installment of contributions into the Public Employees' Retirement
Fund, to file any information required in the administration of PERS
with respect to that agency's employees, or if the board determines
that the agency is no longer in existence, as specified. 

   This bill would clarify that authorization to terminate a contract
with a contracting agency that no longer qualifies as a public
agency.  
   (3) 
    (2)  PERL defines "leave of absence" to include absence
from state service because of illness that arose out of and in the
course of employment and for which the member received temporary
disability benefits during the absence and did not receive full
compensation, as specified. PERL authorizes a member who returns to
active service following an employer-approved uncompensated leave of
absence because of his or her serious illness to purchase service
credit for that period of absence, as specified.
   This bill would clarify that definition to include absence from
state service because of illness or injury that arose out of and in
the course of employment, and would authorize the purchase of service
credit following an employer-approved uncompensated leave of absence
because of the member's serious illness or injury.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 9351.4 is added to the Government Code, to
read:
   9351.4.  All references to "spouse," "surviving spouse," or
"marriage" in this chapter apply equally to a domestic partner or
domestic partnership, as defined in Section 297 of the Family Code,
and all rights and responsibilities granted to a spouse or surviving
spouse shall be granted equally to a domestic partner to the extent
provided by Section 297.5 of the Family Code.
  SEC. 2.  Section 20065.5 is added to the Government Code, to read:
   20065.5.  All references to "spouse," "surviving spouse," or
"marriage" in this part apply equally to a domestic partner or
domestic partnership, as defined in Section 297 of the Family Code,
and all rights and responsibilities granted to a spouse or surviving
spouse shall be granted equally to a domestic partner to the extent
provided by Section 297.5 of the Family Code. 
  SEC. 3.    Section 20572 of the Government Code is
amended to read:
   20572.  (a) If a contracting agency fails for 30 days after demand
by the board to pay any installment of contributions required by its
contract, or fails for three months after demand by the board
therefor to file any information required in the administration of
this system with respect to that agency's employees, or if the board
determines that the agency is no longer in existence or that it no
longer qualifies as a public agency as set forth in this part, the
board may terminate that contract by resolution adopted by a majority
vote of its members effective 60 days after notice of its adoption
has been mailed by registered mail to the governing body of the
contracting agency.
   (b)  Notwithstanding Section 20537, if a contracting agency fails
to remit the contributions when due, the agency may be assessed
interest at an annual rate of 10 percent and the costs of collection,
including reasonable legal fees, when necessary to collect the
amounts due. In the case of repeated delinquencies, the contracting
agency may be assessed a penalty of 10 percent of the delinquent
amount. That penalty may be assessed once during each 30-day period
that the amount remains unpaid. 
   SEC. 4.   SEC. 3.   Section 21002 of the
Government Code is amended to read:
   21002.  A member who returns to active service following an
employer-approved uncompensated leave of absence because of his or
her serious illness or injury may purchase service credit for that
period of absence upon the payment of contributions as specified in
Sections 21050 and 21052. The purchase of additional service credit
pursuant to this paragraph shall not reduce the amount of service
credit that the member is eligible to purchase pursuant to this
chapter. A member may purchase service credit pursuant to this
section for a leave of absence that occurred either before or after
the effective date of these provisions.
   SEC. 5.   SEC. 4.   Section 21004 of the
Government Code is amended to read:
   21004.  "Leave of absence" also means absence from state service
because of illness or injury that arose out of and in the course of
employment and for which the member received temporary disability
benefits under the Labor Code during the absence and did not receive
full compensation as distinguished from the disability benefits for
the period of absence.
   SEC. 6.   SEC. 5.   Section 75004.5 is
added to the Government Code, to read:
   75004.5.  All references to "spouse," "surviving spouse," or
"marriage" in this chapter apply equally to a domestic partner or
domestic partnership, as defined in Section 297 of the Family Code,
and all rights and responsibilities granted to a spouse or surviving
spouse shall be granted equally to a domestic partner to the extent
provided by Section 297.5 of the Family Code.
   SEC. 7.   SEC. 6.   Section 75502 of the
Government Code is amended to read:
   75502.  (a) "Judge" means a justice of the Supreme Court or of a
court of appeal, or a judge of a superior court, municipal court, or
justice court who is first elected or appointed to judicial office on
or after November 9, 1994, and is not a member of the Judges'
Retirement System pursuant to Chapter 11 (commencing with Section
75000). A retired judge does not acquire status as a judge for the
purposes of this chapter by reason of designation as a temporary
judge of, or assignment by the Chairperson of the Judicial Council
to, any of these courts.
   A former member of the Judges' Retirement System under Section
75002 who withdrew his or her contributions upon leaving office, and
who takes judicial office on or after November 9, 1994, becomes a
member of the system existing under Chapter 11 (commencing with
Section 75000) and does not become a member of the Judges' Retirement
System II. No person shall be a member of the Judges' Retirement
System II who is or ever has been a member of the Judges' Retirement
System pursuant to Chapter 11 (commencing with Section 75000).
   (b) "System" means the Judges' Retirement System II established by
this chapter.
   (c) "Service" means the period of time a judge received a salary
and made contributions to the system by reason of holding office as a
judge of any one or more of the courts of this state specified in
subdivision (a), computed in years and fractions of years.
   (d) "Final compensation" means the average monthly salary of a
judge during the 12 months immediately preceding his or her
retirement from or otherwise leaving judicial office and as limited
by Section 75572.
   (e) "Benefit factor" means the percentage used in calculating a
judge's monthly retirement allowance under Section 75522.
   (f) "Contributions" means the accumulated deductions from the
judge's salary under Sections 75601 and 75602. References to payment
to a judge of his or her contributions or to the determination of a
judge's and spouse's shares in the contributions include both the
contributions and interest thereon at the rates determined by the
Board of Administration of the Public Employees' Retirement System.
   (g) "Salary" means the compensation received by a judge as the
emolument of the office of judge, but does not include any additional
compensation received by reason of designation as a temporary judge
or assignment by the Chairperson of the Judicial Council or the
additional compensation pursuant to Section 68203.1.
   (h) "Board" means the Board of Administration of the Public
Employees' Retirement System.
   (i) "Fund" or "retirement fund" means the Judges' Retirement
System II Fund established pursuant to Section 75600.
   (j) All references to "spouse," "surviving spouse," or "marriage"
in this chapter apply equally to a domestic partner or domestic
partnership, as defined in Section 297 of the Family Code, and all
rights and responsibilities granted to a spouse or surviving spouse
shall be granted equally to a domestic partner to the extent provided
by Section 297.5 of the Family Code.