Amended in Senate June 18, 2013

Amended in Senate June 11, 2013

Amended in Senate June 4, 2013

Amended in Assembly April 23, 2013

Amended in Assembly April 1, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1380

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 31452, 31452.5, 31452.6, 31454, 31455, 31461.6, 31462, 31462.1, 31462.2, 31479.1, 31482.5, 31490.6, 31499.11, 31551, 31581.1, 31581.2, 31625.2, 31625.3, 31630, 31639.85, 31658, 31662.2, 31663.25, 31663.26, 31664.5, 31670, 31671, 31672, 31672.1, 31672.2, 31678.2, 31678.3, 31678.31, begin delete 316780, end delete begin insert 31680, end insert 31680.1, 31680.2, 31680.3, 31680.6, 31705, 31835, 31836, 31839, 31873, 31873.1, 31874.5, and 31899 of, and to add Sections 31462.05, 31620.5, 31672.3, and 31685.01 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, which, in comparison to existing formulas, generally provide reduced benefits and later ages for retirement. 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. PEPRA prohibits an employer from paying a new member’s contribution for the normal cost of benefits in a defined plan and prohibits an enhancement of a public employee’s retirement benefit adopted on or after January 1, 2013, from applying to service previously performed.

The County Employees Retirement Law of 1937 (CERL) authorizes counties and districts to establish retirement systems in order to provide pension benefits to their employees and their beneficiaries and prescribes the rights, benefits, and duties of members in this regard. Certain parts of CERL are applicable only in specified counties or upon adoption by the board of supervisors of a county. CERL provides for a defined retirement benefit based upon credited service, final compensation, and age at retirement subject to specified formulas relating to membership classification. The law defines compensation earnable and final compensation for these purposes. The law permits credit for service as an elective or appointed county official that is uncompensated. CERL permits an employer to pay a member’s contribution for certain benefits, as specified, and permits the retirement of certain safety members, regardless of age, if they meet specified service requirements. CERL authorizes an employer to permit active members to purchase additional nonqualified service credit and permits a new formula for calculation of retirement benefits to be applied to service already performed. CERL further permits a county or district to provide a supplemental defined benefit plan for the purpose of providing benefits in excess of specified federal standards.

This bill would amend various provisions of CERL to coordinate and subordinate that law with PEPRA. Generally, the bill would specify that certain provisions of CERL do not apply to members who are currently subject to PEPRA by virtue of being first employed on or after January 1, 2013. The bill would provide that provisions allowing a new formula for calculation of retirement benefits to be applied to service already performed are inoperative as of January 1, 2013, and would prohibit the purchase of nonqualified service credit, as specified. The bill would except retirement systems established under CERL from specified provisions of PEPRA concerning the calculation and adjustment of contribution rates.

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 31452 of the Government Code is
amended to read:

31452.  

The right of a person to a pension, annuity, retirement
allowance, return of contributions, the pension, annuity, or
retirement allowance, any optional benefit, any other right accrued
or accruing to any person under this chapter, the money in the fund
created or continued under this chapter or the California Public
Employees’ Pension Reform Act of 2013, and any property
purchased for investment purposes pursuant to this chapter, are
exempt from taxation, including any inheritance tax, whether state,
county, municipal, or district. They are not subject to execution
or any other process of court whatsoever except to the extent
permitted by Section 31603 of this code and Section 704.110 of
the Code of Civil Procedure, and are unassignable except as
specifically provided in this chapter.

SEC. 2.  

Section 31452.5 of the Government Code is amended
to read:

31452.5.  

(a) The board may comply with and give effect to a
revocable written authorization signed by a retired member or
beneficiary of a retired member entitled to a retirement allowance
or benefit under this chapter or the California Public Employees’
Pension Reform Act of 2013, authorizing the treasurer or other
entity authorized by the board to deduct a specified amount from
the retirement allowance or benefit payable to any retired member
or beneficiary of a retired member for any of the following
purposes:

(1) Paying premiums on any policy or certificate of group life
insurance or group disability insurance issued by an admitted
insurer.

(2) Paying premiums for a prepaid group medical or hospital
service plan.

(3) Paying premiums for a vision care program or dental plan,
approved by the board, for the benefit of the retired member or his
or her dependents.

(4) Paying premiums on national service life insurance or United
States government converted insurance.

(5) Payment for the purchase of shares in or the payment of
money to any regularly chartered credit union.

(6) Payment to a charitable organization or a federally chartered
veterans’ organization that is approved by the board.

(7) Payments to a recognized retiree organization.

(8) Payment for the purchase of United States savings bonds.

(9) The payment of personal income taxes to the government
of the United States or the State of California.

(10) Payment for any retiree benefit programs available through
the recognized retiree organization. The board may require that
this payment be to a single party designated by the recognized
retiree organization, either to itself or to a third-party administrator.

(b) Each month the order shall be drawn in favor of the insurer,
institution, credit union, organization, or government named in
the written authorization for an amount equal to the deductions
authorized in subdivision (a) and made during the month.

(c) The board may charge a reasonable fee for the making of
the deductions and payments.

SEC. 3.  

Section 31452.6 of the Government Code is amended
to read:

31452.6.  

(a) The board shall comply with and give effect to
a revocable written authorization signed by a retired member or
beneficiary of a retired member entitled to a retirement allowance
or benefit under this chapter or the California Public Employees’
Pension Reform Act of 2013, authorizing the treasurer or other
entity authorized by the board to deliver the monthly warrant,
check, or electronic fund transfer, for the retirement allowance or
benefit to any specified bank, savings and loan institution, or credit
union to be credited to the account of the retired member or
survivor of a deceased retired member. That delivery is full
discharge of the liability of the board to pay a monthly retirement
allowance or benefit to the retired member or survivor of a
deceased retired member.

(b) Any payments directly deposited by electronic fund transfer
following the date of death of a person who was entitled to receive
a retirement allowance or benefit under this chapter or the
California Public Employees’ Pension Reform Act of 2013 shall
be refunded to the retirement system.

(c) In order to obtain information from a financial institution
following the death of a retired member or the beneficiary of a
retired member, as provided in subdivision (o) of Section 7480,
the board may certify in writing to the financial institution that the
retired member or the beneficiary of a retired member has died
and that transfers to the account of the retired member or
beneficiary of a retired member at the financial institution from
the retirement system occurred after the date of death of the retired
member or the beneficiary of a retired member.

SEC. 4.  

Section 31454 of the Government Code is amended
to read:

31454.  

(a) The board of supervisors shall, not later than 90
days after the beginning of the immediately succeeding fiscal year,
adjust the rates of interest, the rates of contributions of members,
and county and district appropriations in accordance with the
recommendations of the board, but shall not fix them in amounts
that reduce the individual benefits provided in this chapter or the
California Public Employees’ Pension Reform Act of 2013.

(b) (1) The governing body of a district within the county
system that is not governed by the board of supervisors shall, not
later than 90 days after the beginning of the immediately
succeeding fiscal year, adjust the rates of contributions of district
members and in district appropriations in accordance with the
recommendations of the board, but shall not fix them in amounts
that reduce the individual benefits provided in this chapter or the
California Public Employees’ Pension Reform Act of 2013.

(2) This subdivision shall not be operative in any county until
the board of supervisors, by resolution adopted by majority vote,
makes the provision applicable in that county.

SEC. 5.  

Section 31455 of the Government Code is amended
to read:

31455.  

Unless the context otherwise requires, or unless
superseded by any provision of the California Public Employees’
Pension Reform Act of 2013, the definitions and general provisions
contained in this article govern the construction of this chapter.

SEC. 6.  

Section 31461.6 of the Government Code is amended
to read:

31461.6.  

(a) “Compensation earnable” shall not include
overtime premium pay other than premium pay for hours worked
within the normally scheduled or regular working hours that are
in excess of the statutory maximum workweek or work period
applicable to the employee under Section 201 and following of
Title 29 of the United States Code.

(b) This section shall not apply to a member who is subject to
the California Public Employees’ Pension Reform Act of 2013.

SEC. 7.  

Section 31462 of the Government Code is amended
to read:

31462.  

(a) “Final compensation” means the average annual
compensation earnable by a member during any three years elected
by a member at or before the time he or she files an application
for retirement, or, if he or she fails to elect, during the three years
immediately preceding his or her retirement. If a member has less
than three years of service, his or her final compensation shall be
determined by dividing his or her total compensation by the number
of months of service credited to him or her and multiplying by 12.

(b) This section shall not apply to a member who is subject to
the California Public Employees’ Pension Reform Act of 2013 for
all or any portion of his or her membership in the county retirement
system.

SEC. 8.  

Section 31462.05 is added to the Government Code,
to read:

31462.05.  

For a member who is subject to the California Public
Employees’ Pension Reform Act of 2013 for all or any portion of
his or her membership in the county retirement system, “final
compensation” as defined in Section 7522.32 shall apply. If a
member has less than three years of service, that member’s final
compensation shall be determined by dividing the total
compensation by the number of months of service credited to the
member and multiplying by 12.

SEC. 9.  

Section 31462.1 of the Government Code is amended
to read:

31462.1.  

(a) (1) “Final compensation” means the average
annual compensation earnable by a member during any year elected
by a member at or before the time he or she files an application
for retirement, or, if he or she fails to elect, during the year
immediately preceding his or her retirement.

(2) This section shall not be operative in any county until such
time as the board of supervisors shall, by resolution adopted by a
majority vote, make the provisions of this section applicable in
such county.

(b) This section shall not apply to a member who is subject to
the California Public Employees’ Pension Reform Act of 2013 for
all or any portion of his or her membership in the county retirement
system.

SEC. 10.  

Section 31462.2 of the Government Code is amended
to read:

31462.2.  

(a) “Final compensation” for members whose service
is on a tenure that is temporary, seasonal, intermittent, or for part
time only means one-third of the total compensation earned for
that period of time during which the member rendered the
equivalent of three years of full-time service.

(b) The member may elect at or before the time he or she files
an application for retirement the period of time during which he
or she has earned three full years of credit upon which final
compensation shall be calculated. If he or she does not so elect,
such period of time immediately preceding his or her retirement
shall be used.

(c) This section applies to a member meeting the conditions
specified in subdivision (a), whose service is described in
subdivision (a), and who is subject to the California Public
Employees’ Pension Reform Act of 2013.

SEC. 11.  

Section 31479.1 of the Government Code is amended
to read:

31479.1.  

(a) (1) Notwithstanding Section 31479, an elective
or appointive county official may receive credit for service rendered
as a city council member even though that service was not
compensated.

(2) This section shall not be operative in any county until it is
adopted by a majority vote of the board of supervisors.

(b) This section shall not apply to service performed as an
elective or appointive officer that is subject to the California Public
Employees’ Pension Reform Act of 2013.

SEC. 12.  

Section 31482.5 of the Government Code is amended
to read:

31482.5.  

(a) Notwithstanding any provisions to the contrary
in Section 20894, this section shall apply to all participants in
retirement systems governed by this chapter.

(b) A person shall not receive credit for the same service in two
retirement systems supported wholly or in part by public funds
under any circumstance.

(c) Nothing in this section shall preclude concurrent participation
and credit for service in a public retirement system and in a
deferred compensation plan that meets the requirements of Section
457 of Title 26 of the United States Code, a tax-deferred retirement
plan that meets the requirements of Section 40l(k) of Title 26 of
the United States Code, or a defined contribution plan and trust
that meets the requirements of Section 401(a), 403(b), or 415(m)
of Title 26 of the United States Code.

(d) Nothing in this section shall preclude concurrent participation
and credit for service in the defined benefit plan provided under
this chapter and in a supplemental defined benefit plan maintained
by the employer that meets the requirements of Section 401(a) of
Title 26 of the United States Code, provided all of the following
conditions exist:

(1) The defined benefit plan provided under this chapter has
been designated as the employer’s primary plan for the person and
the supplemental defined benefit plan is adopted by the governing
body of the employer.

(2) The supplemental defined benefit plan has received a ruling
from the Internal Revenue Service stating that the plan qualifies
under Section 401(a) of Title 26 of the United States Code, and
has furnished proof thereof to the employer.

(3) The person’s participation in the supplemental defined
benefit plan does not, in any way, interfere with the person’s rights
to membership in the defined benefit plan, or any benefit provided,
under this chapter.

(e) If any provision of this section conflicts with the California
Public Employees’ Pension Reform Act of 2013, that provision
shall not apply to a member who is subject to the California Public
Employees’ Pension Reform Act of 2013 for all or any portion of
his or her membership in the county retirement system.

SEC. 13.  

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) Pursuant to Section 7522.46, 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. 14.  

Section 31499.11 of the Government Code is amended
to read:

31499.11.  

Unless the context otherwise requires, the definitions
contained in this section govern the construction of this article.

(a) “Board” means the board of retirement.

(b) “Employer” means the county or district or agency whose
employees are members of the retirement system of the county.

(c) “Federal system” means the Old Age and Survivors
Insurance provisions of the Social Security Act.

(d) “Final compensation” means the average annual
compensation earnable by a general member during any three
years, whether or not consecutive, for a person who became a
general member of the plan prior to January 1, 2013, or, for a
person who became a general member of the plan on or after
January 1, 2013, final compensation means the average annual
compensation earnable by a general member during any 36
consecutive months, to be elected by the member at or before the
time an application for retirement is filed, or, if no election is made,
during the three years in which the member or former member last
earned compensation preceding retirement. If a member or former
member has less than three years of service, final compensation
shall be determined by dividing total compensation by the number
of months of service credited to the member or former member
and multiplying by 12. In no event shall final compensation include
any disability benefits received by the member or former member
under a disability plan provided by the employer.

(e) “Member” or “general member” means an employee hired
on a permanent basis, as defined by the employer, except an
employee eligible for safety member.

(f) “Primary insurance amount” means the monthly retirement
benefit payable under the federal system at the age of 65.

(g) “Service” means the period of uninterrupted employment
of a member and the time in which a member or former member
(1) is totally disabled, and (2) is receiving disability benefits or is
eligible to receive disability benefits either during or after any
elimination or qualifying period, under a disability plan provided
by the employer.

(h) Except as otherwise provided in this article, a member shall
not be credited with service for any period of time in which the
member is absent from work without pay.

(i) Unless otherwise provided, service shall not include military
service or public service other than service with the employer.

SEC. 15.  

Section 31551 of the Government Code is amended
to read:

31551.  

The persons expressly declared to be ineligible to
membership by this article shall not become members of the
retirement association, and, except as expressly excluded, the
persons enumerated in this article or the California Public
Employees’ Pension Reform Act of 2013 shall become members
of the association.

Persons employed as participants in a program of, and whose
wages are paid in whole or in part by federal funds in accordance
with, the Comprehensive Employment and Training Act of 1973
(Public Law 93-203), as amended, are excluded from membership.
This exclusion shall not apply to active fire suppression personnel
who are safety members pursuant to Sections 31469.3 and 31470.4.

SEC. 16.  

Section 31581.1 of the Government Code is amended
to read:

31581.1.  

(a) The board of supervisors may elect to pay up to
one-half of the contributions normally required of members for
any period of time designated in the resolution providing for such
payment. The payments shall not become part of the accumulated
contributions of the member. These payments may be made with
respect to employees in one or more bargaining units irrespective
of whether they are made with respect to other employees.

(b) This section shall not apply to members who are subject to
Section 7522.30.

SEC. 17.  

Section 31581.2 of the Government Code is amended
to read:

31581.2.  

(a) The board of supervisors or the governing body
of the district may agree to pay any portion of the contributions
required to be paid by a member. All payments shall be in lieu of
wages and shall be reported simply as normal contributions and
shall be credited to member accounts.

(b) The enactment of a resolution pursuant to this section shall
not create vested rights in any member. The board of supervisors
or the governing body of the district may amend or repeal the
resolution at any time, subject to the provisions of Sections 3504
and 3505, or any similar rule or regulation of the county or district.

(c) This section shall not apply to members who are subject to
Section 7522.30.

SEC. 18.  

Section 31620.5 is added to the Government Code,
to read:

31620.5.  

The normal rates of contribution of general and safety
members subject to the California Public Employees’ Pension
Reform Act of 2013 shall be determined pursuant to Section
7522.30 subject to the following exceptions:

(a) The board may, but is not required to, apply the provisions
of subdivision (c) of Section 7522.30 that require the initial
contribution rate to be rounded to the nearest quarter of 1 percent.

(b) Subdivision (d) of Section 7522.30 shall not apply to the
contribution rates of members of retirement systems established
pursuant to this chapter.

SEC. 19.  

Section 31625.2 of the Government Code is amended
to read:

31625.2.  

(a) Notwithstanding any other provisions of this
chapter, contributions shall not be deducted from the salary of any
member having credit for 30 years’ service providing the member
was a member on March 7, 1973, and remained in membership
continuously until credited with 30 years’ service.

(b) Notwithstanding subdivision (a), contributions shall not be
deducted from the salary of any member having credit for 30 years’
of continuous service in the retirement association of a county of
the seventh class as established by Sections 28020 and 28028. This
subdivision shall not apply to a member who is subject to the
provisions of the California Public Employees’ Pension Reform
Act of 2013.

SEC. 20.  

Section 31625.3 of the Government Code is amended
to read:

31625.3.  

(a) Notwithstanding any other provision of this
chapter, contributions shall not be deducted from the salary of any
member who was a member before or after March 7, 1973, of the
retirement association, another county retirement system
established under this chapter, or the Public Employees’ Retirement
System, and has total reciprocal service credit of not less than 30
years in the retirement association, or in the retirement association
and another county retirement system established under this
chapter, or the Public Employees’ Retirement System, or a
combination thereof.

(b) This section shall not apply in any county unless and until
it is adopted by a majority vote of the board of supervisors.

(c) This section shall not apply to members who are subject to
Section 7522.30.

SEC. 21.  

Section 31630 of the Government Code is amended
to read:

31630.  

(a) Notwithstanding any other provisions in this
chapter, the South Coast Air Quality Management District and in
any county which has adopted Section 31676.1, 31676.11,
31676.12, 31676.13, 31676.14, 31676.15, or 31751, the board of
supervisors or district board, as the case may be, may agree to pay
any portion of the members’ normal contributions to the system.
All the contributions paid by the county or district, as the case may
be, shall remain its contributions, and no right therein shall accrue
to any employee prior to the employee’s election to take a regular,
deferred, or disability retirement.

(b) Any contributions paid by the board of supervisors or the
district board on behalf of the members shall be as determined by
upon actuarial advice, and approved by the board of retirement.

(c) This section shall not apply to members who are subject to
Section 7522.30.

SEC. 22.  

Section 31639.85 of the Government Code is amended
to read:

31639.85.  

(a) Notwithstanding any other provisions in this
chapter, in any county which has adopted Section 31676.1,
31676.11, 31676.12, 31676.13, 31676.14, or 31676.15 the board
of supervisors may agree to pay any portion of the safety members’
normal contributions to the system. All contributions paid by the
county shall remain county contributions, and no right therein shall
accrue to any employee prior to the employee’s election to take a
regular, deferred begin insert , end insert or disability retirement.

(b) Any contributions paid by the board of supervisors on behalf
of the safety members shall be as determined upon actuarial advice,
and approved by the board of retirement.

(c) This section shall not apply to members who are subject to
Section 7522.30.

SEC. 23.  

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) Pursuant to Section 7522.46, 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. 24.  

Section 31662.2 of the Government Code is amended
to read:

31662.2.  

Retirement of a safety member in a county subject
to the provisions of Section 31676.1, or of Section 31695.1, if
applicable, who has met the requirements for age and service shall
be made by the board pursuant to this article or pursuant to the
California Public Employees’ Pension Reform Act of 2013,
whichever is applicable.

SEC. 25.  

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 a 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. 26.  

Section 31663.26 of the Government Code is amended
to read:

31663.26.  

(a) Notwithstanding Section 31663.25, a safety
member who has reached the applicable compulsory age of
retirement, if any, or a safety member who is a full-time employee,
has completed 10 years of service, has reached the age of 50, and
has no service break which exceeds 12 months, 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 be operative in any county until such
time as the board of supervisors shall, by ordinance, make this
section applicable in the county.

(c) This section shall not apply to a member who is subject to
the provisions of the California Public Employees’ Pension Reform
Act of 2013 for all or any portion of his or her membership in the
county retirement system.

SEC. 27.  

Section 31664.5 of the Government Code is amended
to read:

31664.5.  

(a) Notwithstanding any other provisions of this
chapter, a safety member may exercise the option of retiring upon
completion of 25 years of service, and if such option is exercised,
the safety member shall receive a retirement allowance equal to
no less than 30 percent of his or her final compensation.

(b) This section shall not apply to a member who is subject to
the provisions of the California Public Employees’ Pension Reform
Act of 2013 for all or any portion of his or her membership in the
county retirement system.

SEC. 28.  

Section 31670 of the Government Code is amended
to read:

31670.  

Retirement of a member who has met the requirements
for age and service shall be made by the board pursuant to this
article or pursuant to the California Public Employees’ Pension
Reform Act of 2013, whichever is applicable.

SEC. 29.  

Section 31671 of the Government Code is amended
to read:

31671.  

(a) The amount of compensation that is taken into
account in computing benefits payable to any person who first
becomes a member of the retirement system on or after July 1,
1996, shall not exceed the limitations in Section 401(a)(17) of
Title 26 of the United States Code upon public retirement systems,
as that section may be amended from time to time and as that limit
may be adjusted by the Commissioner of Internal Revenue for
increases in cost of living. The determination of compensation for
each 12-month period shall be subject to the annual compensation
limit in effect for the calendar year in which the 12-month period
begins. In a determination of average annual compensation over
more than one 12-month period, the amount of compensation taken
into account for each 12-month period shall be subject to the
applicable annual compensation limit.

(b) The compensation limitations specified in Section 7522.10
shall also apply to a member who is subject to the provisions of
the California Public Employees’ Pension Reform Act of 2013 for
all or any portion of his or her membership in the county retirement
system.

SEC. 30.  

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. 31.  

Section 31672.1 of the Government Code is amended
to read:

31672.1.  

(a) An employee who has reached the age of 55 years,
has held a position in the county service for 10 years, and on the
date of retirement is employed in a temporary, seasonal,
intermittent, or part-time position in which the employee has
received credit for five full years of service, may be retired upon
filing with the board a written application, setting forth the date
upon which the employee desires his or her retirement to become
effective which shall not be more than 60 days after the date of
filing the application. The age of 55 in the preceding sentence may
be reduced to age 50 in any county by resolution of the board of
supervisors if such reduction has also been made under Section
31672.

(b) This section shall not apply to a member who is subject to
the provisions of the California Public Employees’ Pension Reform
Act of 2013 for all or any portion of his or her membership in the
county retirement system.

SEC. 32.  

Section 31672.2 of the Government Code is amended
to read:

31672.2.  

(a) An elective officer who filed a declaration with
the board to become a member, pursuant to Section 31553, who
has served two complete consecutive terms in an elective office,
and who has reached the minimum age for retirement provided in
Section 31672, 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 which shall be not more than
60 days after the date of filing the application.

(b) This section shall become operative only in any county of
the 16th class, as defined by Section 28020 and 28037, as amended
by Chapter 1204 of the Statutes of 1971, and on the first day of
the calendar month after the board of supervisors adopts a
resolution making it operative in the county.

(c) This section shall not apply to an elective officer who is
subject to the provisions of the California Public Employees’
Pension Reform Act of 2013 for all or any portion of his or her
membership in the county retirement system.

SEC. 33.  

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.

SEC. 34.  

Section 31678.2 of the Government Code is amended
to read:

31678.2.  

(a) Notwithstanding Section 31678 or any other
provision of this chapter, a board of supervisors or a governing
body of a district may, by resolution adopted by majority vote,
make any section of this chapter prescribing a formula for
calculation of retirement benefits applicable to service credit earned
on and after the date specified in the resolution, which date may
be earlier than the date the resolution is adopted.

(b) A resolution adopted pursuant to this section may, if
approved in a memorandum of understanding executed by the
board of supervisors and the employee representatives, require
members to pay all or part of the contributions by a member or
employer, or both, that would have been required if the section or
sections specified in subdivision (a), as adopted by the board or
governing body, had been in effect during the period of time
designated in the resolution. The payment by a member shall
become part of the accumulated contributions of the member.

(c) This section shall only be applicable to members who retire
on or after the effective date of the resolution described in
subdivision (a).

(d) On or after January 1, 2013, this section is inoperative
pursuant to Section 7522.44.

SEC. 35.  

Section 31678.3 of the Government Code is amended
to read:

31678.3.  

(a) Notwithstanding any other provision of this
chapter, a resolution adopted by a board of supervisors to make
any formula for calculation of retirement benefits described in this
section applicable to the employees of the county does not apply
to make that formula applicable to the employees of any district
within the county. The governing body of a district may elect, by
resolution adopted by majority vote, to make any formula for
calculation of retirement benefits described in this section
applicable to the employees of the district irrespective of whether
the board of supervisors has made that election with respect to
employees of the county.

(b) Notwithstanding any other provision of this chapter, the
board of supervisors or the governing body of a district may, by
resolution adopted by majority vote, pursuant to a memorandum
of understanding made under the Meyers-Milias-Brown Act
(Chapter 10 (commencing with Section 3500) of Division 4 of
Title 2), do any or all of the following:

(1) Apply Section 31621.8, 31676.17, 31676.18, or 31676.19
for the calculation of retirement benefits for general members to
the employees in a bargaining unit comprised of general members.

(2) Apply Section 31664.1 for the calculation of retirement
benefits for safety members to the employees in a bargaining unit
comprised of safety members.

(3) Apply Section 31664 for the calculation of retirement
benefits for safety members to the employees of the Probation
Services Unit and the Probation Supervisory Management Unit.

(c) Any nonrepresented employees within similar job
classifications as employees in a bargaining unit described in
subdivision (b) or supervisors and managers thereof shall be subject
to the same formula for the calculation of retirement benefits
applicable to the employees in that bargaining unit.

(d) A resolution adopted pursuant to subdivision (b) may require
members to pay a portion of the contributions attributable to past
service liability, that would have been required if the benefits
specified in the resolution, as adopted by the board of supervisors
or the governing body of the district, had been in effect during the
period of time designated in the resolution. Any payments required
of represented employees shall first be approved in a memorandum
of understanding made under the Meyers-Milias-Brown Act and
executed by the board of supervisors or the governing body of the
district and the employee representatives. The contributions paid
by a member pursuant to this subdivision shall become part of the
accumulated contributions of the member.

(e) This section shall only be applicable to members who retire
on or after the effective date of the resolution described in
subdivision (b).

(f) The board of supervisors or the governing body of a district
may not unilaterally implement a retirement formula for any of its
bargaining units.

(g) This section shall apply only in Orange County.

(h) Beginning January 1, 2013, if any provision of this section
conflicts with the California Public Employees’ Pension Reform
Act of 2013, the provisions of that act shall prevail.

SEC. 36.  

Section 31678.31 of the Government Code is amended
to read:

31678.31.  

(a) Notwithstanding any other provision of this
chapter, the board of supervisors or the governing body of a district
within the county may, by resolution adopted by majority vote, do
the following:

(1) Require an employee hired after approval of the resolution,
to elect in writing, either the pension calculation stated in Section
31676.19 or the pension calculation stated in Section 31676.01.
The election shall be made within 45 calendar days of beginning
employment with the county or the district. If an employee does
not elect the pension calculation stated in Section 31676.19 within
45 days of beginning employment, the employee shall be deemed
to have elected the pension calculation stated in Section 31676.01.
An employee shall not be permitted to rescind his or her election
unless the board of supervisors or the governing body of a district,
through the adoption of a subsequent ordinance or resolution by
majority vote, makes a provision permitting the employee to
rescind the election applicable to the county or district.

(2) Require a current employee of the county or district covered
by the pension calculation stated in Section 31676.19, hired before
approval of the resolution, within 180 calendar days of approval
of the resolution to make, at the employee’s option, a one-time
written election to terminate the application of the pension
calculation stated in Section 31676.19 for future service and elect
instead the pension calculation stated in Section 31676.01 for
future service. This election shall be signed by the employee. Prior
to signing an election, a current employee who chooses to terminate
the pension calculation stated in Section 31676.19 and elects
instead the pension calculation stated in Section 31676.01, shall
be provided by the county or district governing body with a written
explanation of the effect and impact of the termination. A current
employee who chooses to terminate the pension calculation stated
in Section 31676.19 shall be required to sign an affidavit stating
that the employee has been fully informed regarding the effect of
the termination and understands that the termination is irrevocable.
The affidavit shall also state that the employee has chosen
termination of his or her own free will and was not coerced into
termination by the employer or any other person. An employee
shall not be permitted to rescind his or her election unless the board
of supervisors or the governing body of a district, through the
adoption of a subsequent ordinance or resolution by majority vote,
makes a provision permitting the employee to rescind the election
applicable to the county or district.

(3) Require a current employee of the county or district, hired
before approval of the resolution, but not covered by the pension
calculation stated in Section 31676.19, who after approval of the
resolution becomes eligible for the pension calculation stated in
Section 31676.19, to make a one-time written election between
the pension calculation stated in Section 31676.19 for future service
and the pension calculation stated in Section 31676.01 for future
service. The election shall be made within 45 calendar days of
becoming eligible for the pension calculation stated in Section
31676.19. The election shall be signed by the employee. Prior to
signing the election, an employee who does not elect the pension
calculation stated in Section 31676.19 and elects instead the
pension calculation stated in Section 31676.01 shall be provided
by the county or the district governing body with a written
explanation of the effect and impact of the election. An employee
who does not choose the pension calculation stated in Section
31676.19 shall be required to sign an affidavit stating that the
employee has been fully informed regarding the effect of the
election and understands that the election is irrevocable. The
affidavit shall also state that the employee has chosen the election
of his or her own free will and was not coerced into the election
by the employer or any other person. An employee shall not be
permitted to rescind his or her election unless the board of
supervisors or the governing body of a district, through the
adoption of a subsequent ordinance or resolution by majority vote,
makes a provision permitting the employee to rescind the election
applicable to the county or district. Failure to make an election
within 45 calendar days shall be considered cause for termination
of employment until the employee described in this paragraph has
made the required election.

(b) The retirement allowance for service rendered prior to the
effective date of the election under paragraph (2) or (3) of
subdivision (a) for an employee covered by any other pension
calculation shall be calculated under the employee’s prior pension
calculation. Any employee who has made an election shall not be
eligible for retirement unless the employee meets the minimum
requirements of the provision or provisions pursuant to the election
applicable at the date of retirement.

(c) (1) An election for the pension calculation stated in Section
31676.01 by any employee hired before approval of the resolution
shall include the signature of the designated beneficiary of the
employee’s pension acknowledging the election, or shall include
a written declaration of one or more of the following as may be
applicable:

(A) The beneficiary has no identifiable community property
interest in the benefit.

(B) The employee does not know, and has taken all reasonable
steps to determine, the whereabouts of the beneficiary.

(C) The beneficiary has been advised of the election and has
refused to sign the written acknowledgment.

(D) The beneficiary is incapable of executing the
acknowledgment because of an incapacitating mental or physical
condition.

(2) The purpose of this subdivision is to notify the beneficiary,
including the employee’s spouse or domestic partner, of an election
made by the employee that may affect the entitlement of the
beneficiary. In addition to the foregoing, if the designated
beneficiary of an employee’s pension is a spouse or domestic
partner of the employee, the election shall also evidence agreement
to the election by the spouse or domestic partner.

(3) A person who knowingly provides false information in the
written declaration submitted pursuant to paragraph (1) shall be
subject to a civil penalty of not less than one thousand dollars
($1,000) and not more than twenty-five thousand dollars ($25,000),
in addition to any civil remedies available to the board. An action
to impose a civil penalty pursuant to this paragraph may be brought
by any public prosecutor in the name of the people of the state.

(d) In the event the employee elects the pension calculation
stated in Section 31676.01, the employee shall be eligible to receive
a contribution from the county or district based on the employee’s
contribution to a defined contribution program.

(e) In addition to employees represented by bargaining units,
any other employees not represented by a bargaining unit, as well
as supervisors, managers, and executives, may be subject to
subdivision (a) pursuant to the resolution described in subdivision
(a).

(f) This section shall apply only to members who retire on or
after the effective date of the resolution described in subdivision
(a).

(g) This section shall not apply to safety members.

(h) A resolution adopted by the board of supervisors under
subdivision (a) shall not apply to the employees of any district
within the county. The governing body of a district may elect, by
resolution adopted by majority vote, to make this section applicable
to the employees of the district irrespective of whether the board
of supervisors has made that election applicable to employees in
the county.

(i) A resolution adopted pursuant to this section may require
any member that elects or is deemed to have elected the pension
calculation stated in Section 31676.01 to pay additional member
contributions beyond those member contributions required under
Section 31621. These additional contributions shall not result in
an additional benefit to the member. However, the additional
contributions paid by a member pursuant to the authority granted
by this subdivision shall become part of the accumulated
contributions of the member for the following purposes only:

(1) Funding the annuity portion of the member’s retirement
allowance.

(2) Withdrawal of contributions by the member upon the
member’s withdrawal from, and termination of membership in,
the retirement system.

(j) Any person employed subsequent to the effective date of a
resolution adopted under subdivision (a) who would otherwise
qualify as a member shall not become a member until he or she
certifies his or her election, or otherwise as described above has
been deemed to have elected, to be covered by the pension
calculation stated in Section 31676.01 or the pension calculation
stated in Section 31676.19. Once the election is made or is deemed
to have been made, the employee will become a member retroactive
to the date of hire. Any employee who subsequently otherwise
becomes eligible for the pension calculation stated in Section
31676.19 subsequent to the effective date of a resolution adopted
under subdivision (a) shall continue to be covered by any
immediately preceding retirement plan to which he or she was
entitled from the county or district until he or she certifies his or
her election to be covered by the pension calculation stated in
Section 31676.01 or the pension calculation stated in Section
31676.19.

(k) In the event that the final day to make an election or perform
an act described in this section falls on a weekend or on a county
or district holiday, a subsequent election or act shall be timely if
made or performed on the immediately following regular business
day of the county or district.

(l) This section shall apply only in Orange County.

(m) Beginning January 1, 2013, if any provision of this section
conflicts with the California Public Employees’ Pension Reform
Act of 2013, the provisions of that act shall prevail.

SEC. 37.  

Section 31680 of the Government Code is amended
to read:

31680.  

(a) A member retired for service or disability shall not
be paid for any service rendered by him or her to the county or
district after the date of his or her retirement, except:

(1) As specifically provided in this chapter.

(2) Pursuant to Section 31733.

(3) The county or district may pay and the retired member may
receive:

(A) Rewards for ideas or suggestions made by the retired
member for the improvement of county or district activities.

(B) Compensation for his or her services on the board.

(4) If the member is subsequently elected to county office after
retirement.

(b) As herein used the term “services rendered” shall refer to
service rendered as an officer or employee of the county or district
and shall not refer to services performed by a retired officer or
employee as an independent contractor engaged by a county or
district under a bona fide contract for services within the purview
of Section 31000 of this code.

(c) Beginning January 1, 2013, if any provision of this section
conflicts with the California Public Employees’ Pension Reform
Act of 2013, the provisions of that act shall prevail.

SEC. 38.  

Section 31680.1 of the Government Code is amended
to read:

31680.1.  

(a) Any person who has retired under this chapter
may, without reinstatement from retirement or loss or interruption
of benefits under this chapter, serve as a juror, election officer,
field deputy for registration of voters, member of the board of the
association or temporarily as a judge when assigned by the
Chairman of the Judicial Council and receive any fees payable for
that service.

(b) Beginning January 1, 2013, if any provision of this section
conflicts with the California Public Employees’ Pension Reform
Act of 2013, the provisions of that act shall prevail.

SEC. 39.  

Section 31680.2 of the Government Code is amended
to read:

31680.2.  

(a) Any person who has retired may be employed in
a position requiring special skills or knowledge, as determined by
the county or district employing him or her, for not to exceed 90
working days or 720 hours, whichever is greater, in any one fiscal
year or any other 12-month period designated by the board of
supervisors and may be paid for that employment. That
employment shall not operate to reinstate the person as a member
of this system or to terminate or suspend his or her retirement
allowance, and no deductions shall be made from his or her salary
as contributions to this system.

(b) (1) This section shall not apply to any retired person who
is otherwise eligible for employment under this section if, during
the 12-month period prior to an appointment described in this
section, that retired person receives unemployment insurance
compensation arising out of prior employment subject to this
section with the same employer.

(2) A retired person who accepts an appointment after receiving
unemployment insurance compensation as described in this
subdivision shall terminate that employment on the last day of the
current pay period and shall not be eligible for reappointment
subject to this section for a period of 12 months following the last
day of employment.

(3) Beginning January 1, 2013, if any provision of this section
conflicts with the California Public Employees’ Pension Reform
Act of 2013, the provisions of that act shall prevail, except that
the limit on postretirement employment provided in subdivision
(a) to the greater of 90 working days or 720 hours shall remain
effective.

SEC. 40.  

Section 31680.3 of the Government Code is amended
to read:

31680.3.  

(a) Notwithstanding Section 31680.2, any member
who has been covered under the provisions of Section 31751 and
has retired may be reemployed in a position requiring special skills
or knowledge, as determined by the county or district employing
the member, for not to exceed 120 working days or 960 hours,
whichever is greater, in any one fiscal year and may be paid for
that employment. That employment shall not operate to reinstate
the person as a member of this system or to terminate or suspend
the person’s retirement allowance, and no deductions shall be made
from the person’s salary as contributions to this system.

(b) (1) This section shall not apply to any retired member who
is otherwise eligible for reemployment under this section if, during
the 12-month period prior to an appointment described in this
section, that retired person receives unemployment insurance
compensation arising out of prior employment subject to this
section with the same employer.

(2) A retired person who accepts an appointment after receiving
unemployment insurance compensation as described in this
subdivision shall terminate that employment on the last day of the
current pay period and shall not be eligible for reappointment
subject to this section for a period of 12 months following the last
day of employment.

(c) Beginning January 1, 2013, if any provision of this section
conflicts with the California Public Employees’ Pension Reform
Act of 2013, the provisions of that act shall prevail.

SEC. 41.  

Section 31680.6 of the Government Code is amended
to read:

31680.6.  

(a) Notwithstanding Section 31680.2, any county
subject to Section 31680.2 may, upon adoption of a resolution by
a majority vote by the board of supervisors, extend the period of
time provided for in Section 31680.2 for which a person who has
retired may be employed in a position requiring special skills or
knowledge, as determined by the county or district employing him
or her, begin delete to end delete not to exceed 120 working days or 960 hours, whichever
is greater, in any one fiscal year or any other 12-month period
designated by the board of supervisors and may be paid for that
employment. That employment shall not operate to reinstate the
person as a member of this system or to terminate or suspend his
or her retirement allowance, and no deductions shall be made from
his or her salary as contributions to this system.

(b) (1) This section shall not apply to any retired person who
is otherwise eligible for employment under this section if, during
the 12-month period prior to an appointment described in this
section, that retired person receives unemployment insurance
compensation arising out of prior employment subject to this
section with the same employer.

(2) A retired person who accepts an appointment after receiving
unemployment insurance compensation as described in this
subdivision shall terminate that employment on the last day of the
current pay period and shall not be eligible for reappointment
subject to this section for a period of 12 months following the last
day of employment.

(c) Beginning January 1, 2013, if any provision of this section
conflicts with the California Public Employees’ Pension Reform
Act of 2013, the provisions of that act shall prevail.

SEC. 42.  

Section 31685.01 is added to the Government Code,
to read:

31685.01.  

Benefits enumerated in this article shall be
determined in accordance with the provisions of this chapter or
the California Public begin delete Employee’s end delete begin insert Employees end insert begin insert ’ end insert Pension Reform Act
of 2013, whichever is applicable.

SEC. 43.  

Section 31705 of the Government Code is amended
to read:

31705.  

The retirement allowance shall be calculated according
to the provisions of this chapter, or the California Public
Employees’ Pension Reform Act of 2013, whichever is applicable,
as they exist at the time of the commencement of the retirement
allowance.

SEC. 44.  

Section 31835 of the Government Code is amended
to read:

31835.  

The average compensation during any period of service
as a member of the Public Employees’ Retirement System, a
member of the Judges’ Retirement System or Judges’ Retirement
System II, a member of a retirement system established under this
chapter in another county, a member of the State Teachers’
Retirement System, or a member of a retirement system of any
other public agency of the state that has established reciprocity
with the Public Employees’ Retirement System subject to the
conditions of Section 31840.2, shall be considered compensation
earnable or pensionable compensation pursuant to Section 7522.34,
whichever is applicable, by a member for purposes of computing
final compensation for that member provided:

begin delete

(1)

end delete

begin insert (a) end insert  The period intervening between active memberships in the
respective systems does not exceed 90 days, or 6 months if Section
31840.4 applies. That period shall not include any time during
which the member was prohibited by law from becoming a member
of the system of another county.

Notwithstanding anything in this chapter to the contrary, the
90-day or 6-month restriction referred to in this section or any
other provision of this chapter begin delete effecting end delete begin insert affecting end insert deferred
retirement shall not be applicable to any members who left county
or district service prior to October 1, 1949, and subsequently
redeposited.

begin delete

(2)

end delete

begin insert (b) end insert  He or she retires concurrently under both systems and is
credited with the period of service under that other system at the
time of retirement.

The provisions of this section shall be applicable to all members
and beneficiaries of the system.

SEC. 45.  

Section 31836 of the Government Code is amended
to read:

31836.  

“Service,” solely for purposes of qualification for
payment of benefits and retirement allowances, shall also include
service as an employee of the state or a contracting agency under
the Public Employees’ Retirement System or of another county
having a retirement system established under this chapter, or as a
member of the State Teachers’ Retirement System, or as a member
of a retirement system of any other public agency of the state that
has established reciprocity with the Public Employees’ Retirement
System subject to the conditions of Section 31840.2, if the
compensation for such service constitutes compensation earnable
or pensionable compensation pursuant to Section 7522.34,
whichever is applicable, by a member under Section 31835 of this
part.

No credit shall be granted in this retirement system for service
for which the member has received credit in another retirement
system or for which he or she is presently receiving a retirement
allowance from another retirement system.

SEC. 46.  

Section 31839 of the Government Code is amended
to read:

31839.  

Upon the death before retirement of a member, while
in service as a member of the Public Employees’ Retirement
System or a retirement system established pursuant to this chapter
in another county, who has made an election pursuant to Section
31700 and 31832, the death benefit provided in Section 31781
payable by the system from which he or she elected deferred
retirement shall consist of:

(a) When death is not the result of a disease or injury arising
out of and in the course of employment, the amount of such death
benefit shall not exceed an amount which when added to the death
benefit payable for the member under such other system will equal
the total of the accumulated contributions to both systems plus 50
percent of the annual compensation earnable or pensionable
compensation pursuant to Section 7522.34, whichever is applicable,
by the deceased during the 12 months immediately preceding his
or her death.

(b) When death is the result of disease or injury arising out of
and in the course of his or her employment as a member of such
other system, such death benefit shall consist solely of the
member’s accumulated contributions.

SEC. 47.  

Section 31873 of the Government Code is amended
to read:

31873.  

(a) Any increases in contributions shall be shared
equally between the county or district and the contributing
members, with the individual member’s contributions based upon
the member’s age at his or her nearest birthday at time of entrance
into the retirement system or based on a single rate of contributions
pursuant to Section 31621.11, begin delete 31629.26 end delete begin insert 31639.26 end insert , or as otherwise
authorized by this chapter or the California Public Employees’
Pension Reform Act of 2013. The board of supervisors by a
majority vote may elect to pay part of the costs of the contributions
which would otherwise be assessed to the individual members.

(b) Notwithstanding subdivision (a), pursuant to Section
7522.30, the board of supervisors shall not pay any part of the
costs of the member contributions of new members as defined in
subdivision (f) of Section 7522.04.

SEC. 48.  

Section 31873.1 of the Government Code is amended
to read:

31873.1.  

(a) Any cost-of-living contributions required for
benefits under Section 31870.3 shall be shared equally between
the county or district and the contributing members. The individual
member’s contributions shall be based upon the member’s age at
the member’s nearest birthday at time of entrance into the
retirement system, and shall be expressed as a percentage of the
member’s normal contribution rate. The board of supervisors by
a majority vote may elect to pay all or part of the costs of the
contributions which would otherwise be assessed to the individual
members.

(b) Notwithstanding subdivision (a), pursuant to Section
7522.30, the board of supervisors shall not pay any part of the
costs of the member contributions of new members as defined in
subdivision (f) of Section 7522.04.

(c) Until revised by subsequent actuarial studies, the member’s
cost-of-living contribution rate shall be 39.57 percent of the
member’s normal contribution rate. These initial cost-of-living
contribution rates are shown in the following table, according to
the member’s age at the time of entry into the system:

 

Age of entry	Percentage
into system	of contribution
16	1.16
17	1.16
18	1.16
19	1.16
20	1.16
21	1.16
22	1.16
23	1.16
24	1.16
25	1.17
26	1.17
27	1.18
28	1.18
29	1.19
30	1.20
31	1.20
32	1.21
33	1.22
34	1.23
35	1.24
36	1.25
37	1.26
38	1.27
39	1.28
40	1.29
41	1.30
42	1.31
43	1.32
44	1.33
45	1.34
46	1.36
47	1.37
48	1.38
49	1.40
50	1.41
51	1.43
52	1.44
53	1.46
54 and over	1.47

 

SEC. 49.  

Section 31874.5 of the Government Code is amended
to read:

31874.5.  

(a) Whenever the percentage of annual increase in
the cost of living as of January 1 of each year as shown by the
Bureau of Labor Statistics Consumer Price Index for All Urban
Consumers exceeds a full 3 percent of the existing cost-of-living
increase factor provided by any provision of this article, an
additional 1 percent of the excess for each full 3 percent over the
existing increase factor shall be applied to the retirement
allowances, optional death allowances, or annual death allowances
increased by any provision of this article. The increases in
allowances resulting from the adoption of this section shall be used
to offset any accumulated carryover balances under existing
cost-of-living adjustments. The cost of implementing this section
shall be prefunded commencing with the adoption of this section
by the board of supervisors. The method of paying the cost of
implementing this section may be mutually agreed to in a
memorandum of understanding executed by the employer and
employee representatives. The board of retirement shall conduct
the actuarial studies to determine those costs.

(b) This section shall not be operative in any county until it is
adopted by a majority vote of the board of supervisors.

(c) Notwithstanding subdivision (a), a memorandum of
understanding regarding the application of the contributions of
new members, as defined in subdivision (f) of Section 7522.04,
towards paying the cost of the additional cost-of-living adjustment
shall not conflict with the requirements of Section 7522.30 or as
may be agreed to in accordance with Sections 7522.30 and 31631.

SEC. 50.  

Section 31899 of the Government Code is amended
to read:

31899.  

(a) The purpose of this chapter is to ensure the federal
tax-exempt status of the county employees’ retirement systems,
to preserve the deferred treatment of federal income tax on public
employer contributions to public employee pensions, and to ensure
that members are provided with retirement and other related
benefits that are commensurate, to the extent deemed reasonable,
with the services rendered without violating the intent and purposes
of Section 415 of the Internal Revenue Code.

(b) To achieve this purpose, this chapter incorporates certain
pension payment limitations and elects the “grandfather” option
in Section 415(b)(10) of the Internal Revenue Code. Also, this
chapter provides for certain replacement benefits.

(c) On or after January 1, 2013, the application of this chapter
is limited as specified in Section 7522.43.