Amended in Assembly April 21, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 2476


Introduced by Committee on Public Employees, Retirement and Social Security (Bonta (Chair), Rendon, Ridley-Thomas, and Wieckowski)

February 21, 2014


An act to amendbegin delete Section 7522.56end deletebegin insert Sections 7522.56, 7522.72, and 7522.74end insert of the Government Code, relating to public employees’ retirement.

LEGISLATIVE COUNSEL’S DIGEST

AB 2476, as amended, Committee on Public Employees, Retirement and Social Security. begin deleteEmployment after retirement: eligibility. end deletebegin insertPublic employees’ retirement.end insert

Existing law, the California Public Employees’ Pension Reform Act of 2013 (PEPRA) establishes various limits on retirement benefits generally applicable to a public employee retirementbegin delete system in the state,end deletebegin insert system,end insert except as specified, and among other things, prescribes limits on service after retirement without reinstatement into the applicable retirement system. Under PEPRA, a retired person is not eligible to be employed for a period of 180 days following the date of retirement unless he or she meets specified requirements, including a requirement that the state employer certifies the nature of the employment and that the appointment is necessary to fill a critically needed state employment position before 180 days have passed and the appointment has been approved by the Department of Human Resources.

This bill would instead provide, for purposes of that requirement, that either the Senate Committee on Rules or the Assembly Rules Committee, the Trustees of the California State University, or the Administrative Office of the Courts makes those certifications and approvals for legislative, California State University, and judicial employees, respectively, instead of the Department of Human Resources.

begin insert

PEPRA requires a public employee, including one who is elected or appointed to a public office, who is convicted of any state or federal felony for conduct arising out of, or in the performance of, his or her official duties in pursuit of the office or appointment, or in connection with obtaining salary, disability retirement, service retirement, or other benefits, to forfeit right, and benefits earned or accrued from the earliest date of the commission of the felony to the forfeiture date, as specified.

end insert
begin insert

This bill would provide, instead, that a member of the retirement system who is convicted, as described above, would forfeit those rights and benefits.

end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 7522.56 of the Government Code is
2amended to read:

3

7522.56.  

(a) This section shall apply to any person who is
4receiving a pension benefit from a public retirement system and
5shall supersede any other provision in conflict with this section.

6(b) A retired person shall not serve, be employed by, or be
7employed through a contract directly by, a public employer in the
8same public retirement system from which the retiree receives the
9benefit without reinstatement from retirement, except as permitted
10by this section.

11(c) A person who retires from a public employer may serve
12without reinstatement from retirement or loss or interruption of
13benefits provided by the retirement system upon appointment by
14the appointing power of a public employer either during an
15 emergency to prevent stoppage of public business or because the
16retired person has skills needed to perform work of limited
17duration.

18(d) Appointments of the person authorized under this section
19shall not exceed a total for all employers in that public retirement
20system of 960 hours or other equivalent limit, in a calendar or
21fiscal year, depending on the administrator of the system. The rate
P3    1of pay for the employment shall not be less than the minimum,
2nor exceed the maximum, paid by the employer to other employees
3performing comparable duties, divided by 173.333 to equal an
4hourly rate. A retired person whose employment without
5reinstatement is authorized by this section shall acquire no service
6credit or retirement rights under this section with respect to the
7employment unless he or she reinstates from retirement.

8(e) (1) Notwithstanding subdivision (c), any retired person shall
9not be eligible to serve or be employed by a public employer if,
10during the 12-month period prior to an appointment described in
11this section, the retired person received any unemployment
12insurance compensation arising out of prior employment subject
13to this section with a public employer. A retiree shall certify in
14writing to the employer upon accepting an offer of employment
15that he or she is in compliance with this requirement.

16(2) A retired person who accepts an appointment after receiving
17unemployment insurance compensation as described in this
18subdivision shall terminate that employment on the last day of the
19current pay period and shall not be eligible for reappointment
20subject to this section for a period of 12 months following the last
21day of employment.

22(f) A retired person shall not be eligible to be employed pursuant
23to this section for a period of 180 days following the date of
24retirement unless he or she meets one of the following conditions:

25(1) The employer certifies the nature of the employment and
26that the appointment is necessary to fill a critically needed position
27before 180 days have passed and the appointment has been
28approved by the governing body of the employer in a public
29meeting. The appointment may not be placed on a consent calendar.

30(2) (A) Except as otherwise provided in this paragraph, for state
31employees, the state employer certifies the nature of the
32employment and that the appointment is necessary to fill a critically
33needed state employment position before 180 days have passed
34 and the appointment has been approved by the Department of
35Human Resources. The department may establish a process to
36delegate appointing authority to individual state agencies, but shall
37audit the process to determine if abuses of the system occur. If
38necessary, the department may assume an agency’s appointing
39authority for retired workers and may charge the department an
40appropriate amount for administering that authority.

P4    1(B) For legislative employees, the Senate Committee on Rules
2or the Assembly Rules Committee certifies the nature of the
3employment and that the appointment is necessary to fill a critically
4needed position before 180 days have passed and approves the
5appointment in a public meeting. The appointment may not be
6placed on a consent calendar.

7(C) For employees of the California State University, the
8Trustees of the California State University certifies the nature of
9the employment and that the appointment is necessary to fill a
10critically needed position before 180 days have passed and
11approves the appointment in a public meeting. The appointment
12may not be placed on a consent calendar.

13(D) For judicial employees, the Administrative Office of the
14Courts certifies the nature of the employment and that the
15appointment is necessary to fill a critically needed position before
16180 days have passed and approves the appointment in a public
17meeting. The appointment may not be placed on a consent calendar.

18(3) The retiree is eligible to participate in the Faculty Early
19Retirement Program pursuant to a collective bargaining agreement
20with the California State University that existed prior to January
211, 2013, or has been included in subsequent agreements.

22(4) The retiree is a public safety officer or firefighter hired to
23perform a function or functions regularly performed by a public
24safety officer or firefighter.

25(g) A retired person who accepted a retirement incentive upon
26retirement shall not be eligible to be employed pursuant to this
27section for a period of 180 days following the date of retirement
28and subdivision (f) shall not apply.

29(h) This section shall not apply to a person who is retired from
30the State Teachers’ Retirement System, and who is subject to
31Section 24214, 24214.5, or 26812 of the Education Code.

32(i) This section shall not apply to (1) a subordinate judicial
33officer whose position, upon retirement, is converted to a judgeship
34pursuant to Section 69615, and he or she returns to work in the
35converted position, and the employer is a trial court, or (2) a retiree
36who takes office as a judge of a court of record pursuant to Article
37VI of the California Constitution or a retiree of the Judges’
38Retirement System or the Judges’ Retirement System II who is
39appointed to serve as a retired judge.

P5    1begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 7522.72 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
2to read:end insert

3

7522.72.  

(a) This section shall apply to a public employee first
4employed by a public employer or first elected or appointed to an
5office before January 1, 2013, and, on and after that date, Section
67522.70 shall not apply.

7(b) (1) If a public employee is convicted by a state or federal
8trial court of any felony under state or federal law for conduct
9arising out of or in the performance of his or her official duties, in
10pursuit of the office or appointment, or in connection with
11obtaining salary, disability retirement, service retirement, or other
12benefits, he or she shall forfeit all accrued rights and benefits in
13any public retirement system in which he or she is a member to
14the extent provided in subdivision (c) and shall not accrue further
15 benefits in that public retirement system, effective on the date of
16the conviction.

17(2) If a public employee who has contact with children as part
18of his or her official duties is convicted of a felony that was
19committed within the scope of his or her official duties against or
20involving a child who he or she has contact with as part of his or
21her official duties, he or she shall forfeit all accrued rights and
22benefits in any public retirement system in which he or she is a
23member to the extent provided in subdivision (c) and shall not
24accrue further benefits in that public retirement system, effective
25on the date of the conviction.

26(c) (1) Abegin delete public employeeend deletebegin insert memberend insert shall forfeit all the rights
27and benefits earned or accrued from the earliest date of the
28commission of any felony described in subdivision (b) to the
29forfeiture date, inclusive. The rights and benefits shall remain
30forfeited notwithstanding any reduction in sentence or
31expungement of the conviction following the date of thebegin delete public
32employee’send delete
begin insert member’send insert conviction. Rights and benefits attributable
33to service performed prior to the date of the first commission of
34the felony for which thebegin delete public employeeend deletebegin insert memberend insert was convicted
35shall not be forfeited as a result of this section.

36(2) For purposes of this subdivision, “forfeiture date” means
37the date of the conviction.

38(d) (1) Any contributions to the public retirement system made
39by the public employee described in subdivision (b) on or after
40the earliest date of the commission of any felony described in
P6    1subdivision (b) shall be returned, without interest, to the public
2employee upon the occurrence of a distribution event unless
3otherwise ordered by a court or determined by the pension
4administrator.

5(2) Any funds returned to the public employee pursuant to
6subdivision (d) shall be disbursed by electronic funds transfer to
7an account of the public employee, in a manner conforming with
8the requirements of the Internal Revenue Code, and the public
9retirement system shall notify the court and the district attorney
10at least three business days before that disbursement of funds.

11(3) For the purposes of this subdivision, a “distribution event”
12means any of the following:

13(A) Separation from employment.

14(B) Death of the member.

15(C) Retirement of the member.

16(e) (1) Upon conviction, a public employee as described in
17subdivision (b) and the prosecuting agency shall notify the public
18employer who employed the public employee at the time of the
19commission of the felony within 60 days of the felony conviction
20of all of the following information:

21(A) The date of conviction.

22(B) The date of the first known commission of the felony.

23(2) The operation of this section is not dependent upon the
24performance of the notification obligations specified in this
25subdivision.

26(f) The public employer that employs or employed a public
27employee described in subdivision (b) and that public employee
28shall each notify the public retirement system in which the public
29employee is a member of that public employee’s conviction within
3090 days of the conviction. The operation of this section is not
31dependent upon the performance of the notification obligations
32specified in this subdivision.

33(g) A public retirement system may assess a public employer a
34reasonable amount to reimburse the cost of audit, adjustment, or
35correction, if it determines that the public employer failed to
36comply with this section.

37(h) If a public employee’s conviction is reversed and that
38decision is final, the employee shall be entitled to do either of the
39following:

P7    1(1) Recover the forfeited rights and benefits as adjusted for the
2contributions received pursuant to subdivision (d).

3(2) Redeposit those contributions and interest that would have
4accrued during the forfeiture period, as determined by the system
5actuary, and then recover the full amount of the forfeited rights
6and benefits.

7(i) The forfeiture of rights and benefits provided in this section,
8with respect to judges, are in addition to and supplement the
9forfeitures and other requirements provided in Section 75033.2,
1075062, 75526, or 75563. If there is a conflict between this section
11and Section 75033.2, 75062, 75526, or 75563, the provisions that
12result in the greatest forfeiture or provide the most stringent
13procedural requirements to the claim of a judge shall apply.

14(j) A public employee first employed by a public employer or
15first elected or appointed to an office on or after January 1, 2013,
16shall be subject to Section 7522.74.

17begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 7522.74 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
18to read:end insert

19

7522.74.  

(a) This section shall apply to a public employee first
20employed by a public employer or first elected or appointed to an
21office on or after January 1, 2013, and on and after that date,
22Section 7522.70 shall not apply.

23(b) (1) If a public employee is convicted by a state or federal
24trial court of any felony under state or federal law for conduct
25arising out of or in the performance of his or her official duties, in
26pursuit of the office or appointment, or in connection with
27obtaining salary, disability retirement, service retirement, or other
28benefits, he or she shall forfeit all accrued rights and benefits in
29any public retirement system in which he or she is a member to
30the extent provided in subdivision (c) and shall not accrue further
31 benefits in that public retirement system, effective on the date of
32the conviction.

33(2) If a public employee who has contact with children as part
34of his or her official duties is convicted of a felony that was
35committed within the scope of his or her official duties against or
36involving a child who he or she has contact with as part of his or
37her official duties, he or she shall forfeit all accrued rights and
38benefits in any public retirement system in which he or she is a
39member to the extent provided in subdivision (c) and shall not
P8    1accrue further benefits in that public retirement system, effective
2on the date of the conviction.

3(c) (1) Abegin delete public employeeend deletebegin insert memberend insert shall forfeit all the rights
4and benefits earned or accrued from the earliest date of the
5commission of any felony described in subdivision (b) to the
6forfeiture date, inclusive. The rights and benefits shall remain
7forfeited notwithstanding any reduction in sentence or
8expungement of the conviction following the date of thebegin delete public
9employee’send delete
begin insert member’send insert conviction. Rights and benefits attributable
10to service performed prior to the date of the first commission of
11the felony for which thebegin delete public employeeend deletebegin insert memberend insert was convicted
12shall not be forfeited as a result of this section.

13(2) For purposes of this subdivision, “forfeiture date” means
14the date of the conviction.

15(d) (1) Any contributions to the public retirement system made
16by the public employee described in subdivision (b) on or after
17the earliest date of the commission of any felony described in
18subdivision (b) shall be returned, without interest, to the public
19employee upon the occurrence of a distribution event unless
20otherwise ordered by a court or determined by the pension
21administrator.

22(2) Any funds returned to the public employee pursuant to
23subdivision (d) shall be disbursed by electronic funds transfer to
24an account of the public employee, in a manner conforming with
25the requirements of the Internal Revenue Code, and the public
26retirement system shall notify the court and the district attorney
27at least three business days before that disbursement of funds.

28(3) For the purposes of this subdivision, a “distribution event”
29means any of the following:

30(A) Separation from employment.

31(B) Death of the member.

32(C) Retirement of the member.

33(e) (1) Upon conviction, a public employee as described in
34subdivision (b) and the prosecuting agency shall notify the public
35employer who employed the public employee at the time of the
36commission of the felony within 60 days of the felony conviction
37of all of the following information:

38(A) The date of conviction.

39(B) The date of the first known commission of the felony.

P9    1(2) The operation of this section is not dependent upon the
2performance of the notification obligations specified in this
3subdivision.

4(f) The public employer that employs or employed a public
5employee described in subdivision (b) and that public employee
6shall each notify the public retirement system in which the public
7employee is a member of that public employee’s conviction within
890 days of the conviction. The operation of this section is not
9dependent upon the performance of the notification obligations
10specified in this subdivision.

11(g) A public retirement system may assess a public employer a
12reasonable amount to reimburse the cost of audit, adjustment, or
13correction, if it determines that the public employer failed to
14comply with this section.

15(h) If a public employee’s conviction is reversed and that
16decision is final, the employee shall be entitled to do either of the
17following:

18(1) Recover the forfeited rights and benefits as adjusted for the
19contributions received pursuant to subdivision (d).

20(2) Redeposit those contributions and interest that would have
21accrued during the forfeiture period, as determined by the system
22actuary, and then recover the full amount of the forfeited rights
23and benefits.

24(i) The forfeiture of rights and benefits provided in this section,
25with respect to judges, are in addition to and supplement the
26forfeitures and other requirements provided in Section 75033.2,
2775062, 75526, or 75563. If there is a conflict between this section
28and Section 75033.2, 75062, 75526, or 75563, the provisions that
29result in the greatest forfeiture or provide the most stringent
30procedural requirements to the claim of a judge shall apply.

31(j) A public employee first employed by a public employer or
32first elected or appointed to an office before January 1, 2013, shall
33be subject to Section 7522.72.



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