AB 1163, as introduced, Levine. Public Employees’ Retirement System: Board of Administration: composition.
The California Constitution prohibits changing the composition of the retirement board of certain public pension systems, including the number, terms, and method of selection and removal of members, unless the change is ratified by a majority vote of the electors of the jurisdiction in which the participants of the pension system are or were, prior to retirement, employed. Existing law creates the Board of Administration of the Public Employees’ Retirement System (PERS) for the purpose of governing the system and prescribes the composition of the board. Existing law requires, among other things, that one member of the board of administration be a member of the State Personnel Board, serving at the pleasure of the State Personnel Board.
This bill would revise the composition of the Board of Administration of PERS. The bill would eliminate the position of the member of the State Personnel Board and would replace that position with the Director of Finance. The bill would add to the board 2 persons, appointed by the Governor, who are independent, as defined, and have financial expertise. This provision would not become operative unless ratified by a majority of voters at a statewide election. The bill would require the Secretary of State to submit that provision of the bill to the voters at the next statewide election.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 20090 of the Government Code is
2amended to read:
The Board of Administration of the Public Employees’
4Retirement System is continued in existence. It consists of:
5(a) One member of the State Personnel Board, selected by and
6serving at the pleasure of the State Personnel Board.
7(a) The Director of Finance.
end insert8(b) The Director of Human Resources.
9(c) The Controller.
10(d) The Treasurer.
11(e) An official of a life insurer and an elected official of a
12contracting agency, appointed by the Governor.
13(f) Two persons representing the public, who are independent
14and have financial expertise, appointed by the Governor. For the
15purpose of this subdivision, “independent” means that neither the
16person nor anyone in the person’s family is a member of the system,
17is receiving or eligible to receive a pension from the system, is a
18member of an organization that represents employees with an
19interest in the system, or has any material interest in any entity
20that contracts with the system.
21(f)
end delete
22begin insert(g)end insert One person representing the public, appointed jointly by the
23Speaker of the Assembly and the Senate Committee on Rules.
24(g)
end delete
25begin insert(h)end insert Six members elected under the supervision of the board as
26follows:
27(1) Two members elected by the members of this system from
28the membership thereof.
29(2) A member elected by the active state members of this system
30from the state membership
thereof.
31(3) A member elected by and from the active local members of
32this system who are employees of a school district or a county
33superintendent of schools.
P3 1(4) A member elected by and from the active local members of
2this system other than those who are employees of a school district
3or a county superintendent of schools.
4(5) A member elected by and from the retired members of this
5system.
This act would change the composition of the Board
7of Administration of the Public Employees’ Retirement System
8and shall be operative only upon ratification by the voters at a
9statewide election, pursuant to subdivision (f) of Section 17 of
10Article XVI of the California Constitution. The Secretary of State
11shall submit this act to the voters for approval at the next statewide
12election.
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