California Legislature—2013–14 Regular Session

Assembly Bill No. 507

Introduced by Assembly Member Garcia

February 20, 2013

An act to amend Section 21623.6 of the Government Code, relating to public employees’ retirement.

LEGISLATIVE COUNSEL’S DIGEST

AB 507, as introduced, Garcia. Public employees’ retirement: postretirement death benefits.

The Public Employees’ Retirement Law requires that, upon the death of any state or school member after retirement and while receiving a retirement allowance, the sum of $2,000 be paid to the member’s designated beneficiary, except as specified. Existing law requires, when a school employer elects by contract, that the amount paid to the beneficiary be $3,000, $4,000, or $5,000, whichever amount is designated in its contract.

This bill would require that the amount paid be $4,000 for a death occurring from January 1, 2014, to December 31, 2014, inclusive, and would increase that amount each year by $500 until April 1, 2018, at which point the amount would be $6,000, and would be adjusted annually, as specified. Until January 1, 2016, when the amount would reach $5,000, the bill would instead allow a school employer to elect by contract to pay the beneficiary $5,000.

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 21623.6 of the Government Code is
amended to read:

21623.6.  

(a) In lieu of benefits provided by Sections 21620,
21622, and 21623, upon the death of any school member, after
retirement and while receiving a retirement allowance from this
system, there shall be paid to the beneficiary whom he or she shall
nominate by written designation duly executed and filed with the
board, begin delete the sum of three thousand dollars ($3,000), four thousand
dollars ($4,000), or five thousand dollars ($5,000), whichever end delete begin insert an end insert
amount begin delete is designated by the employer in its contract, end delete to be provided
from contributions by the begin delete employer. end delete begin insert employer as follows: end insert

begin insert

(1) The sum of four thousand dollars ($4,000), or five thousand
dollars ($5,000) if designated by the employer in its contract, for
a death occurring from January 1, 2014, to December 31, 2014,
inclusive.

end insert begin insert

(2) The sum of four thousand five hundred dollars ($4,500), or
five thousand dollars ($5,000) if designated by the employer in its
contract, for a death occurring from January 1, 2015, to December
31, 2015, inclusive.

end insert begin insert

(3) The sum of five thousand dollars ($5,000) for a death
occurring from January 1, 2016, to December 31, 2016, inclusive.

end insert begin insert

(4) The sum of five thousand five hundred dollars ($5,500) for
a death occurring from January 1, 2017, to December 31, 2017,
inclusive.

end insert begin insert

(5) The sum of six thousand dollars ($6,000) for a death
occurring from January 1, 2018, to March 31, 2018, inclusive.

end insert begin insert

(6) For a death occurring on or after April 1, 2018, the amount
shall be adjusted annually in the same manner as monthly
allowances subject to Sections 21313 and 21329.

end insert

(b) 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 that, in combination, offer the
actuary’s best estimate of anticipated experience under the system.

(c) The additional employer contributions required under this
section shall be computed as a level percentage of member
compensation.

(d) This section shall not apply to begin delete a school employer unless and
until it elects to be subject to this section by amendment to its
contract made in the manner prescribed for approval of contracts
or, in the case of contracts made on end delete begin insert any contracting agency end insert or
begin delete after January 1, 2001, end delete begin insert local member, end insert except begin delete by express provision
in the contract making the end delete begin insert those contracting agencies that are end insert
school begin delete employer subject to this section. end delete begin insert employers and those school
districts or community college districts as defined in subdivision
(i) of Section 20057. end insert