BILL NUMBER: AB 611	CHAPTERED
	BILL TEXT

	CHAPTER  790
	FILED WITH SECRETARY OF STATE  SEPTEMBER 29, 2014
	APPROVED BY GOVERNOR  SEPTEMBER 29, 2014
	PASSED THE SENATE  AUGUST 7, 2014
	PASSED THE ASSEMBLY  AUGUST 18, 2014
	AMENDED IN SENATE  JUNE 17, 2014

INTRODUCED BY   Assembly Member Bonta

                        FEBRUARY 20, 2013

   An act to amend Section 22960.4 of, and to add Sections 22960.05
and 22960.51 to, the Government Code, relating to public employees'
retirement, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 611, Bonta. State Peace Officers' and Firefighters' Defined
Contribution Plan.
   Existing law requires that contributions to the State Peace
Officers' and Firefighters' Defined Contribution Plan cease,
prohibits new members from participating in the plan, and requires
that the plan be terminated, as prescribed. Existing law requires
that moneys in the State Peace Officers' and Firefighters' Defined
Contribution Plan Fund be distributed, as specified and in accordance
with federal law, including requiring that amounts payable from the
fund be rolled over to the Supplemental Contributions Program, if not
elected otherwise.
   This bill would require that the plan be terminated effective June
1, 2014, subject to obtaining appropriate approvals from the
Internal Revenue Service. The bill would state that the bill is
intended to constitute a governmental plan under federal tax law, as
specified. Consistent with specified federal law, the bill would
prohibit the corpus or income of the plan's trust from being diverted
to purposes other than the exclusive benefit of the members or their
beneficiaries or there being a reversion of trust funds, except as
federal law permits.
   This bill would declare that it is to take effect immediately as
an urgency statute.



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

  SECTION 1.  Section 22960.4 of the Government Code is amended to
read:
   22960.4.  (a) The Legislature finds and declares that an agreement
between the exclusive representative of state peace officer and
firefighter members in State Bargaining Unit 6 and the employer has
eliminated the employer contributions to the plan provided in Section
22960.60.
   (b) The following shall occur:
   (1) All contributions to the plan shall cease.
   (2) New participants shall be prohibited from participating in the
plan.
   (3) The plan shall be terminated effective June 1, 2014, subject
to obtaining appropriate approvals from the Internal Revenue Service,
including a favorable determination letter on plan termination from
the Internal Revenue Service.
   (4) Subject to paragraph (3), all moneys in the fund shall be
distributed in accordance with this part and federal law. If not
elected otherwise, amounts that become payable from the fund under
this section shall be rolled over under Section 401(a)(31) of Title
26 of the United States Code to the Supplemental Contributions
Program established in accordance with Section 22970.
  SEC. 2.  Section 22960.05 is added to the Government Code, to read:

   22960.05.  The plan is intended to constitute a governmental plan
as defined by Section 414(d) of the Internal Revenue Code (26 U.S.C.
Sec. 414(d)) and, as such, the plan and all benefits payable
thereunder are intended to satisfy all requirements of Section 401(a)
of the Internal Revenue Code (26 U.S.C. Sec. 401(a)) that apply to
the plan.
  SEC. 3.  Section 22960.51 is added to the Government Code, to read:

   22960.51.  Consistent with the requirements of Section 401(a)(2)
of the Internal Revenue Code (26 U.S.C. Sec. 401(a)(2)), the corpus
or income of the plan's trust shall not be diverted to, or used for,
purposes other than the exclusive benefit of the members or their
beneficiaries nor shall there be a reversion of trust funds except as
permitted by Revenue Ruling 91-4, 1991-1 C.B. 57, by the Internal
Revenue Service.
  SEC. 4.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order that the members of the State Peace Officers' and
Firefighters' Defined Contribution Plan may receive the distributions
that are due to them at the earliest possible time, it is necessary
that this act take effect immediately.