BILL ANALYSIS Ó
SB 1382
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Date of Hearing: June 20, 2012
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL
SECURITY
Warren T. Furutani, Chair
SB 1382 (Negrete McLeod) - As Amended: June 11, 2012
SENATE VOTE : 28-11
SUBJECT : County employees' retirement: retiree organizations.
SUMMARY : Clarifies, in the County Employees' Retirement Law of
1937 ('37 Act), terminology related to recognized retiree
organizations, the items that a retiree under that system may
have deducted from his or her pay warrant, and the nature and
extent of assistance provided to the recognized retiree
organization by the retirement system with regard to mailings to
the retiree organization's members. Specifically, this bill :
1)Defines the term "recognized employee organization" and amends
various references to retiree organizations so that the term
is used consistently.
2)Allows a retiree's payment for any retiree benefit program
available through a retiree organization to be deducted from
the retiree's pay warrant.
3)Requires that, upon the recognized retiree reorganization's
request, the retirement system to assist the organization in
distributing communications regarding membership in, and
retiree programs available through, the retiree organization
to some or all of the retirees in the system.
4)Specifies that the content of the communications is wholly the
responsibility of the retiree organization and that the
retirement board will have no liability for the content.
5)Authorizes the retirement system to charge the retiree
organization a reasonable fee for the mailings, including
staff time for preparation, which may not exceed the actual
cost to the system.
EXISTING LAW :
1)Authorizes a '37 Act retirement board to appoint an alternate
SB 1382
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retired member to the office of the 8th member of the board,
from a list of nominees submitted by a qualified retiree
organization.
2)Allows certain deductions to be taken from the retiree's
warrant to make various payments, such as for medical premiums
and life insurance, payments to charitable organizations, and
payment of personal income taxes.
3)Requires a retirement board to notify the retiree organization
with advance notice of any proposed program changes or uses of
excess funds, and to allow the retiree organization reasonable
time to comment prior to any formal action taken by the board
on the proposed changes.
4)Contains references to retiree organizations using varying
terminology.
FISCAL EFFECT : Unknown. This bill is keyed non-fiscal by the
Legislative Counsel.
COMMENTS : According to the sponsor, the California Retired
County Employees Association, "SB 1382 would make the '37 Act
and a related Government Code section internally consistent with
respect to references to the organization recognized by the
Board of Retirement as representing retirees of the system (the
recognized retiree organization), and clearly define such
organization. The bill would also clarify the types of
deductions that may be made from a retirement allowance upon
written authorization by a retiree. Finally, it would establish
a means by which the recognized retiree organization can
communicate by mail with the retirees it represents, and make
the organization responsible for the costs. In this manner, the
recognized retiree organization can fulfill its obligations to
those they represent."
REGISTERED SUPPORT / OPPOSITION :
Support
California Retired County Employees Association (Sponsor)
Los Angeles County Employees Retirement Association
Opposition
SB 1382
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None on file
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957