Amended in Senate May 23, 2014

Amended in Assembly April 29, 2014

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 amend Sections 7522.56,begin insert 7522.70,end insert 7522.72, and 7522.74 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. Public employees’ retirement.

Existing law, the California Public Employees’ Pension Reform Act of 2013 (PEPRA) establishes various limits on retirement benefits generally applicable to a public employee retirement system, 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 or the Trustees of the California State University makes those certifications and approvals for legislative and California State University employees, respectively, instead of the Department of Human Resources.

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.

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

begin insert

The bill would also make other technical, clarifying changes.

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.

P3    1(d) Appointments of the person authorized under this section
2shall not exceed a total for all employers in that public retirement
3system of 960 hours or other equivalent limit, in a calendar or
4fiscal year, depending on the administrator of the system. The rate
5of pay for the employment shall not be less than the minimum,
6nor exceed the maximum, paid by the employer to other employees
7performing comparable duties, divided by 173.333 to equal an
8hourly rate. A retired person whose employment without
9reinstatement is authorized by this section shall acquire no service
10credit or retirement rights under this section with respect to the
11employment unless he or she reinstates from retirement.

12(e) (1) Notwithstanding subdivision (c), any retired person shall
13not be eligible to serve or be employed by a public employer if,
14during the 12-month period prior to an appointment described in
15this section, the retired person received any unemployment
16insurance compensation arising out of prior employment subject
17to this section with a public employer. A retiree shall certify in
18writing to the employer upon accepting an offer of employment
19that he or she is in compliance with this requirement.

20(2) A retired person who accepts an appointment after receiving
21unemployment insurance compensation as described in this
22subdivision shall terminate that employment on the last day of the
23current pay period and shall not be eligible for reappointment
24subject to this section for a period of 12 months following the last
25day of employment.

26(f) A retired person shall not be eligible to be employed pursuant
27to this section for a period of 180 days following the date of
28retirement unless he or she meets one of the following conditions:

29(1) The employer certifies the nature of the employment and
30that the appointment is necessary to fill a critically needed position
31before 180 days have passed and the appointment has been
32approved by the governing body of the employer in a public
33meeting. The appointment may not be placed on a consent calendar.

34(2) (A) Except as otherwise provided in this paragraph, for state
35employees, the state employer certifies the nature of the
36employment and that the appointment is necessary to fill a critically
37needed state employment position before 180 days have passed
38 and the appointment has been approved by the Department of
39Human Resources. The department may establish a process to
40delegate appointing authority to individual state agencies, but shall
P4    1audit the process to determine if abuses of the system occur. If
2necessary, the department may assume an agency’s appointing
3authority for retired workers and may charge the department an
4appropriate amount for administering that authority.

5(B) For legislative employees, the Senate Committee on Rules
6or the Assembly Rules Committee certifies the nature of the
7employment and that the appointment is necessary to fill a critically
8needed position before 180 days have passed and approves the
9appointment in a public meeting. The appointment may not be
10placed on a consent calendar.

11(C) For employees of the California State University, the
12Trustees of the California State University certifies the nature of
13the employment and that the appointment is necessary to fill a
14critically needed position before 180 days have passed and
15approves the appointment in a public meeting. The appointment
16may not be placed on a consent calendar.

17(3) The retiree is eligible to participate in the Faculty Early
18Retirement Program pursuant to a collective bargaining agreement
19with the California State University that existed prior to January
201, 2013, or has been included in subsequent agreements.

21(4) The retiree is a public safety officer or firefighter hired to
22perform a function or functions regularly performed by a public
23safety officer or firefighter.

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

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

31(i) This section shall not apply to (1) a subordinate judicial
32officer whose position, upon retirement, is converted to a judgeship
33pursuant to Section 69615, and he or she returns to work in the
34converted position, and the employer is a trial court, or (2) a retiree
35begin delete who takes office as a judge of a court of record pursuant to Article
36VI of the California Constitution or a retiree of the Judges’
37Retirement System or the Judges’ Retirement System II who is
38appointed to serve as a retired judge.end delete
begin insert of the Judges’ Retirement
39System or the Judges’ Retirement System II who is assigned to
40serve in a court pursuant to Section 68543.5.end insert

P5    1begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 7522.70 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
2to read:end insert

3

7522.70.  

(a) This section shall apply to any elected public
4officer who takes public office, or is reelected to public office, on
5or after January 1, 2006.

6(b) If an elected public officer is convicted during or after
7holding office of any felony involving accepting or giving, or
8offering to give, any bribe, the embezzlement of public money,
9extortion or theft of public money, perjury, or conspiracy to commit
10any of those crimes arising directly out of his or her official duties
11as an elected public officer, he or she shall forfeit all rights and
12benefits under, and membership in, any public retirement system
13in which he or she is a member, effective on the date of final
14conviction.

15(c) begin insert(1)end insertbegin insertend insertThe elected public officer described in subdivision (b)
16shall forfeit only that portion of his or her rights and benefits that
17accrued on or after January 1, 2006, on account of his or her service
18in the elected public office held when the felony occurred.

begin insert

19(2) Paragraph (1) shall apply to the extent permissible by law.

end insert

20(d) Any contributions made by the elected public officer
21described in subdivision (b) to the public retirement system that
22arose directly from or accrued solely as a result of his or her
23forfeited service as an elected public officer shall be returned,
24without interest, to the public officer.

25(e) The public agency that employs an elected public officer
26 described in subdivision (b) shall notify the public retirement
27system in which the officer is a member of the officer’s conviction.

28(f)  An elected public officer shall not forfeit his or her rights
29and benefits pursuant to subdivision (b) if the governing body of
30the elected public officer’s employer, including, but not limited
31to, the governing body of a city, county, or city and county,
32authorizes the public officer to receive those rights and benefits.

33(g) For purposes of this section, “public officer” means an
34officer of the state, or an officer of a county, city, city and county,
35district, or authority, or any department, division, bureau, board,
36commission, agency, or instrumentality of any of these entities.

37(h) This section applies to any person appointed to service for
38the period of an elected public officer’s unexpired term of office.

39(i) On and after January 1, 2013, this section shall not apply in
40any instance in which Section 7522.72 or 7522.74 applies.

P6    1

begin deleteSEC. 2.end delete
2begin insertSEC. 3.end insert  

Section 7522.72 of the Government Code is amended
3to read:

4

7522.72.  

(a) This section shall apply to a public employee first
5employed by a public employer or first elected or appointed to an
6office before January 1, 2013, and, on and after that date, Section
77522.70 shall not apply.

8(b) (1) If a public employee is convicted by a state or federal
9trial court of any felony under state or federal law for conduct
10arising out of or in the performance of his or her official duties, in
11pursuit of the office or appointment, or in connection with
12obtaining salary, disability retirement, service retirement, or other
13benefits, he or she shall forfeit all accrued rights and benefits in
14any public retirement system in which he or she is a member to
15the extent provided in subdivision (c) and shall not accrue further
16 benefits in that public retirement system, effective on the date of
17the conviction.

18(2) If a public employee who has contact with children as part
19of his or her official duties is convicted of a felony that was
20committed within the scope of his or her official duties against or
21involving a child who he or she has contact with as part of his or
22her official duties, he or she shall forfeit all accrued rights and
23benefits in any public retirement system in which he or she is a
24member to the extent provided in subdivision (c) and shall not
25accrue further benefits in that public retirement system, effective
26on the date of the conviction.

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

begin insert

36(2) Paragraph (1) shall apply to the extent permissible by law.

end insert
begin delete

37 37(2)

end delete

38begin insert(3)end insert For purposes of this subdivision, “forfeiture date” means
39the date of the conviction.

P7    1(d) (1) Any contributions to the public retirement system made
2by the public employee described in subdivision (b) on or after
3the earliest date of the commission of any felony described in
4subdivision (b) shall be returned, without interest, to the public
5employee upon the occurrence of a distribution event unless
6otherwise ordered by a court or determined by the pension
7administrator.

8(2) Any funds returned to the public employee pursuant to
9subdivision (d) shall be disbursed by electronic funds transfer to
10an account of the public employee, in a manner conforming with
11the requirements of the Internal Revenue Code, and the public
12retirement system shall notify the court and the district attorney
13at least three business days before that disbursement of funds.

14(3) For the purposes of this subdivision, a “distribution event”
15means any of the following:

16(A) Separation from employment.

17(B) Death of the member.

18(C) Retirement of the member.

19(e) (1) Upon conviction, a public employee as described in
20subdivision (b) and the prosecuting agency shall notify the public
21employer who employed the public employee at the time of the
22commission of the felony within 60 days of the felony conviction
23of all of the following information:

24(A) The date of conviction.

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

26(2) The operation of this section is not dependent upon the
27performance of the notification obligations specified in this
28subdivision.

29(f) The public employer that employs or employed a public
30employee described in subdivision (b) and that public employee
31shall each notify the public retirement system in which the public
32employee is a member of that public employee’s conviction within
3390 days of the conviction. The operation of this section is not
34dependent upon the performance of the notification obligations
35specified in this subdivision.

36(g) A public retirement system may assess a public employer a
37reasonable amount to reimburse the cost of audit, adjustment, or
38correction, if it determines that the public employer failed to
39comply with this section.

P8    1(h) If a public employee’s conviction is reversed and that
2decision is final, the employee shall be entitled to do either of the
3following:

4(1) Recover the forfeited rights and benefits as adjusted for the
5contributions received pursuant to subdivision (d).

6(2) Redeposit those contributions and interest that would have
7accrued during the forfeiture period, as determined by the system
8actuary, and then recover the full amount of the forfeited rights
9and benefits.

10(i) The forfeiture of rights and benefits provided in this section,
11with respect to judges, are in addition to and supplement the
12forfeitures and other requirements provided in Section 75033.2,
1375062, 75526, or 75563. If there is a conflict between this section
14and Section 75033.2, 75062, 75526, or 75563, the provisions that
15result in the greatest forfeiture or provide the most stringent
16procedural requirements to the claim of a judge shall apply.

17(j) A public employee first employed by a public employer or
18first elected or appointed to an office on or after January 1, 2013,
19shall be subject to Section 7522.74.

20

begin deleteSEC. 3.end delete
21begin insertSEC. 4.end insert  

Section 7522.74 of the Government Code is amended
22to read:

23

7522.74.  

(a) This section shall apply to a public employee first
24employed by a public employer or first elected or appointed to an
25office on or after January 1, 2013, and on and after that date,
26Section 7522.70 shall not apply.

27(b) (1) If a public employee is convicted by a state or federal
28trial court of any felony under state or federal law for conduct
29arising out of or in the performance of his or her official duties, in
30pursuit of the office or appointment, or in connection with
31obtaining salary, disability retirement, service retirement, or other
32benefits, he or she shall forfeit all accrued rights and benefits in
33any public retirement system in which he or she is a member to
34the extent provided in subdivision (c) and shall not accrue further
35 benefits in that public retirement system, effective on the date of
36the conviction.

37(2) If a public employee who has contact with children as part
38of his or her official duties is convicted of a felony that was
39committed within the scope of his or her official duties against or
40involving a child who he or she has contact with as part of his or
P9    1her official duties, he or she shall forfeit all accrued rights and
2benefits in any public retirement system in which he or she is a
3member to the extent provided in subdivision (c) and shall not
4accrue further benefits in that public retirement system, effective
5on the date of the conviction.

6(c) (1) A member shall forfeit all the rights and benefits earned
7or accrued from the earliest date of the commission of any felony
8described in subdivision (b) to the forfeiture date, inclusive. The
9rights and benefits shall remain forfeited notwithstanding any
10reduction in sentence or expungement of the conviction following
11the date of the member’s conviction. Rights and benefits
12attributable to service performed prior to the date of the first
13commission of the felony for which the member was convicted
14shall not be forfeited as a result of this section.

begin insert

15(2) Paragraph (1) shall apply to the extent permissible by law.

end insert
begin delete

12 16(2)

end delete

17begin insert(3)end insert For purposes of this subdivision, “forfeiture date” means
18the date of the conviction.

19(d) (1) Any contributions to the public retirement system made
20by the public employee described in subdivision (b) on or after
21the earliest date of the commission of any felony described in
22subdivision (b) shall be returned, without interest, to the public
23employee upon the occurrence of a distribution event unless
24otherwise ordered by a court or determined by the pension
25administrator.

26(2) Any funds returned to the public employee pursuant to
27subdivision (d) shall be disbursed by electronic funds transfer to
28an account of the public employee, in a manner conforming with
29the requirements of the Internal Revenue Code, and the public
30retirement system shall notify the court and the district attorney
31at least three business days before that disbursement of funds.

32(3) For the purposes of this subdivision, a “distribution event”
33means any of the following:

34(A) Separation from employment.

35(B) Death of the member.

36(C) Retirement of the member.

37(e) (1) Upon conviction, a public employee as described in
38subdivision (b) and the prosecuting agency shall notify the public
39employer who employed the public employee at the time of the
P10   1commission of the felony within 60 days of the felony conviction
2of all of the following information:

3(A) The date of conviction.

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

5(2) The operation of this section is not dependent upon the
6performance of the notification obligations specified in this
7subdivision.

8(f) The public employer that employs or employed a public
9employee described in subdivision (b) and that public employee
10shall each notify the public retirement system in which the public
11employee is a member of that public employee’s conviction within
1290 days of the conviction. The operation of this section is not
13dependent upon the performance of the notification obligations
14specified in this subdivision.

15(g) A public retirement system may assess a public employer a
16reasonable amount to reimburse the cost of audit, adjustment, or
17correction, if it determines that the public employer failed to
18comply with this section.

19(h) If a public employee’s conviction is reversed and that
20decision is final, the employee shall be entitled to do either of the
21following:

22(1) Recover the forfeited rights and benefits as adjusted for the
23contributions received pursuant to subdivision (d).

24(2) Redeposit those contributions and interest that would have
25accrued during the forfeiture period, as determined by the system
26actuary, and then recover the full amount of the forfeited rights
27and benefits.

28(i) The forfeiture of rights and benefits provided in this section,
29with respect to judges, are in addition to and supplement the
30forfeitures and other requirements provided in Section 75033.2,
3175062, 75526, or 75563. If there is a conflict between this section
32and Section 75033.2, 75062, 75526, or 75563, the provisions that
33result in the greatest forfeiture or provide the most stringent
34procedural requirements to the claim of a judge shall apply.

35(j) A public employee first employed by a public employer or
36first elected or appointed to an office before January 1, 2013, shall
37be subject to Section 7522.72.



O

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