BILL NUMBER: AB 1380 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 23, 2013
AMENDED IN ASSEMBLY APRIL 1, 2013
INTRODUCED BY Committee on Public Employees, Retirement and Social
Security (Bonta (Chair), Jones-Sawyer, Mullin, Rendon, and
Wieckowski)
FEBRUARY 26, 2013
An act to amend Sections 31663.25 and
31490.6, 31658, 31663.25, and 31672 of, and to add Section
31672.3 to, the Government Code, relating to county employees'
retirement.
LEGISLATIVE COUNSEL'S DIGEST
AB 1380, as amended, Committee on Public Employees, Retirement and
Social Security. County employees' retirement.
The California Public Employees' Pension Reform Act of 2013
(PEPRA) requires a public retirement system, as defined, to modify
its pension plan or plans to comply with the act and, among other
provisions, generally prohibits a public employer that offers a
defined benefit plan from offering new employees defined benefit
retirement formulas other than those established by the act.
PEPRA prohibits the purchase of nonqualified service credit, as
defined, unless the application to purchase the credit is received by
the retirement system prior to January 1, 2013, and subsequently
approved.
Under the County Employees Retirement Law of 1937, a safety member
of a county retirement system who has reached the applicable
compulsory retirement age, if any, has completed 10 years of
continued service and reached 50 years of age, or who has completed
20 years of service, may retire after filing a written application
with the board of retirement, except as specified. The law authorizes
a member of a county retirement system who has reached 70 years of
age, has completed 10 years of services and has reached 55 years of
age, or has completed 30 years of service, to retire after filing a
written application with the board. The law authorizes an active
member of a retirement system established pursuant to its provisions
to make contributions and receive up to 5 years of service credit in
additional retirement credit, as defined, by making a
written application and by satisfying other requirements.
This bill would limit provisions relating to
purchase of additional retirement credit, as described above, to
applications received prior to January 1, 2013, and subsequently
approved. The bill would also prohibit the application of the
above-described authorizations regarding time of retirement
to a member who is subject to the PEPRA for that member's
membership in the county retirement system. The bill would also
authorize a member who is subject to the PEPRA and has completed 5
years of service and has reached the minimum retirement age
applicable to that member, or has reached 70 years of age, to retire
upon filing a written application with the board, as specified.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 31490.6 of the
Government Code is amended to read:
31490.6. (a) An active member may elect, by written notice filed
with the board, to make contributions pursuant to this section and to
receive up to five years of service credit in the retirement system
for additional retirement credit, if the member has completed at
least five years of credited service with that retirement system.
(b) As used in this section, "additional retirement credit" means
time that does not otherwise qualify as county service, public
service, military service, medical leave of absence, or any other
time recognized for service credit by the retirement system.
(c) Notwithstanding any other provision of this chapter, service
credit for additional retirement credit may not be counted to meet
the minimum qualifications for service retirement or for purposes of
establishing eligibility for benefits based on 30 years of service,
additional ad hoc cost-of-living benefits based on service credit,
health care benefits, or any other benefits based upon service
credit.
(d) A member who elects to make contributions and receive service
credit for additional retirement credit shall contribute to the
retirement fund, prior to the effective date of his or her
retirement, by lump-sum payment or by installment payments over a
period not to exceed 10 years, an amount that, at the time of
commencement of purchase, in the opinion of the board and the
actuary, is sufficient to not place any additional financial burden
upon the retirement system.
(e) No member may receive service credit under this section for
additional retirement credit that he or she has not completed payment
pursuant to subdivision (d) before the effective date of his or her
retirement or, if applicable, prior to the date provided in Section
31485.8. Subject to the limitations of United States Internal Revenue
Service regulations, a member who has elected to make payment in
installments may complete payment by lump sum at any time prior to
the effective date of his or her retirement.
(f) Sums paid by a member pursuant to this section shall be
considered to be and administered as contributions by the member.
(g) This section is not operative until the board of supervisors,
by resolution adopted by majority vote, makes this section operative
in the county.
(h) This section shall apply only to an application to purchase
additional retirement credit that was received by the retirement
system prior to January 1, 2013, that is subsequently approved by the
system.
SEC. 2. Section 31658 of the Government
Code is amended to read:
31658. (a) An active member may elect, by written notice filed
with the board, to make contributions pursuant to this section and to
receive up to five years of service credit in the retirement system
for additional retirement credit, if the member has completed at
least five years of credited service with that retirement system.
(b) As used in this section, "additional retirement credit" means
time that does not otherwise qualify as county service, public
service, military service, medical leave of absence, or any other
time recognized for service credit by the retirement system.
(c) Notwithstanding any other provision of this chapter, service
credit for additional retirement credit may not be counted to meet
the minimum qualifications for service or disability retirement or
for purposes of establishing eligibility for any benefits based on 30
years of service, additional ad hoc cost-of-living benefits based on
service credit, health care benefits, or any other benefits based
upon service credit.
(d) Any member who elects to make contributions and receive
service credit for additional retirement credit shall contribute to
the retirement fund, prior to the effective date of his or her
retirement, by lump-sum payment or by installment payments over a
period not to exceed 10 years, an amount that, at the time of
commencement of purchase, in the opinion of the board and the
actuary, is sufficient to not place any additional financial burden
upon the retirement system.
(e) No member may receive service credit under this section for
any additional retirement credit for which he or she has not
completed payment pursuant to subdivision (d) before the effective
date of his or her retirement. Subject to the limitations of United
States Internal Revenue Service regulations, a member who has elected
to make payment in installments may complete payment by lump sum at
any time prior to the effective date of his or her retirement.
(f) Any sums paid by a member pursuant to this section shall be
considered to be and administered as contributions by the member.
(g) This section is not operative in any county until the board of
supervisors, by resolution adopted by majority vote, makes this
section applicable in the county.
(h) This section shall apply only to an application to purchase
additional retirement credit that was received by the retirement
system prior to January 1, 2013, that is subsequently approved by the
system.
SECTION 1. SEC. 3. Section 31663.25
of the Government Code is amended to read:
31663.25. (a) Except as provided in Section 31663.26, a safety
member who has reached the applicable compulsory age of retirement,
if any, or a safety member who has completed 10 years of continuous
service and who has reached the age of 50, or a safety member who has
completed 20 years of service regardless of age, may be retired upon
filing with the board a written application setting forth the date
upon which the member desires his or her retirement to become
effective which shall be not more than 60 days after the date of
filing the application.
(b) This section shall not apply to any member who is subject to
the provisions of the California Public Employees' Pension Reform Act
of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of
Division 7 of Title 1) for all or any portion of that member's
membership in the county retirement system.
SEC. 2. SEC. 4. Section 31672 of the
Government Code is amended to read:
31672. (a) A member who has reached 70 years of age or a member
who has completed 10 years of service and who has reached 55 years of
age, or a member who has completed 30 years of service regardless of
age, may be retired upon filing with the board a written
application, setting forth the date upon which he or she desires his
or her retirement to become effective not earlier than the date the
application is filed with the board and not more than 60 days after
the date of filing the application. Fifty-five years of age in the
preceding sentence may be reduced to 50 years of age in a county by
resolution of the board of supervisors.
(b) This section shall not apply to any member who is subject to
the provisions of the California Public Employees' Pension Reform Act
of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of
Division 7 of Title 1) for all or any portion of that member's
membership in the county retirement system.
SEC. 3. SEC. 5. Section 31672.3 is
added to the Government Code, to read:
31672.3. A member of a county retirement system who is subject to
the California Public Employees' Pension Reform Act of 2013 (Article
4 (commencing with Section 7522) of Chapter 21 of Division 7 of
Title 1) for all or a portion of the member's membership in the
county retirement system who has completed five years of service and
has reached the minimum retirement age applicable to that member
under the act, or has reached 70 years of age, may be retired upon
filing with the board a written application, setting forth the date
upon which the member desires his or her retirement to become
effective which shall be not more than 60 days after the date of
filing the application.