SB 13, as amended, Beall. Public employees’ retirement benefits.
(1) The Public Employees’ Retirement Law (PERL) establishes the Public Employees’ Retirement System (PERS) and the Teachers’ Retirement Law establishes the State Teachers’ Retirement System for the purpose of providing pension benefits to specified public employees. Existing law also establishes the Judges’ Retirement System II which provides pension benefits to elected judges and the Legislators’ Retirement System which provides pension benefits to elective officers of the state other than judges and to legislative statutory officers. The County Employees Retirement Law of 1937 authorizes counties to establish retirement systems pursuant to its provisions in order to provide pension benefits to county, city, and district employees.
The California Public Employees’ Pension Reform Act of 2013 (PEPRA), on and after January 1, 2013, requires a public retirement system, as defined, to modify its plan or plans to comply with the act and, among other provisions, establishes new retirement formulas that may not be exceeded by a public employer offering a defined benefit pension plan, setting the maximum benefit allowable for employees first hired on or after January 1, 2013, as a formula commonly known as 2.5% at age 67 for nonsafety members, one of 3 formulas for safety members, 2% at age 57, 2.5% at age 57, or 2.7% at age 57, and 1.25% at age 67 for new state miscellaneous or industrial members who elect to be in Tier 2. Under PEPRA, the Judges’ Retirement System and the Judges’ Retirement System II are not required to adopt the defined benefit formula contained in certain other provisions.
This bill would correct an erroneous cross-reference in the above provision and would instead specify that the Judges’ Retirement System and the Judges’ Retirement System II are not required to adopt the defined benefit formula contained in other provisions for nonsafety and safety members. The bill would except from PEPRA certain multiemployer plans authorized under, and regulated by, specified federal law.begin insert The bill would also except from PEPRA end insertbegin insertpublic employees whose collective bargaining rights are subject to specified provisions of federal law until a specified federal district court decision on end insertbegin insertcertification by the United States Secretary of Labor, or his or her designee, or until January 1, 2015, whichever is sooner. The bill would also provide that if a federal district court upholds the determination of the United States Secretary of Labor, or his or her designee, that application of PEPRA to those public employees precludes certification, those employees are excepted from PEPRA.end insert The bill would clarify the application of PEPRA to employees who were employed prior to January 1, 2013, who have service credit in a different retirement system or who change positions for the same employer without a break in service, as specified. The bill would authorize a public retirement system to adopt regulations and resolutions in order to modify its retirement plan or plans to conform with PEPRA.
(2) PEPRA authorizes a public employer offering a retirement benefit plan consisting solely of a defined contribution plan prior to January 1, 2013, to continue to offer that plan instead of the defined benefit plan required pursuant to PEPRA. However, PEPRA requires an employer that adopts a new defined benefit pension plan or defined benefit formula on or after January 1, 2013, to conform the plan or formula to the requirements of PEPRA or be determined and certified by the retirement system’s chief actuary and the system’s board to have no greater risk and no greater cost to the employer than the defined benefit formula and to be approved by the Legislature. Under that law, new members of the employer’s plan may only participate in the defined contribution plan that was in place before January 1, 2013, or a defined contribution plan or defined benefit formula that conforms to the requirements of PEPRA.
This bill would specify that the above provisions are not to be construed to prohibit an employer from offering a defined contribution plan on or after January 1, 2013, either with or without a defined benefit plan, if the employer did not offer a defined contribution plan prior to that date.
(3) PEPRA defines pensionable compensation for new members and limits payments and compensation that may be used to calculate a defined benefit for new members and provides that this number shall be adjusted based on changes to the Consumer Price Index for All Urban Consumers. PEPRA permits an employer to provide a contribution to a defined contribution plan for compensation that is in excess of that limit subject to other limits described in federal law. PEPRA excludes specified payments from the definition of pensionable compensation.
This bill would specify the method by which adjustments to pensionable compensation limits based on the Consumer Price Index are to be made and which consumer price index is to be used for this purpose. The bill would revise how limits on an employer’s contributions to a defined contribution plan are to be determined, as specified, and would specifically authorize a retirement system to limit the pensionable compensation used to calculate contributions for new members in this regard. The bill would specify that the exclusions from pensionable compensation apply to new members. The bill would prescribe requirements for exclusions from pensionable compensation that are collectively bargained with represented employees or imposed on nonrepresented employees.
(4) On and after January 1, 2013, PEPRA requires each retirement system that offers a defined benefit plan for safety members of the system to use one or more of specified defined benefit formulas and requires an employer to offer one or more of those formulas to new employees who are safety employees eligible for membership in the program.
This bill would instead require an employer to offer one or more of those formulas to new members who are safety employees.
(5) On and after January 1, 2013, PEPRA requires new employees of specified public employers, the California State University, and the judicial branch who participate in a defined benefit plan to have an initial contribution rate of at least 50% of the normal cost rate for that defined benefit plan, rounded to the nearest 1⁄4 of 1%, or the current contribution rate of similarly situated employees, whichever is greater.
This bill would make that provision applicable to new members employed by those entities and new members employed by the Legislature.begin delete The bill would except from these provisions a judge who was elected to office prior to January 1, 2013, despite not assuming that office and becoming a member of the Judges’ Retirement System II for the first time until January 1, 2013, or after that date.end delete The bill would also specify that this contribution rate for new members shall be the greater of the above 2 rates, if the greater, current contribution rate has been agreed to through
the collective bargaining process. The bill would specify, with regard to the definition of normal cost, that a retirement system’s actuary may use either of 2 rates of contribution, as may be applicable to the retirement system. The bill would require that, for purposes of calculating the normal cost rate, the actuarial valuation of retirement benefits includes any elements that impact the actuarial determination of the normal cost, including, but not limited to, the retirement formula, eligibility and vesting criteria, ancillary benefit provisions, and any automatic cost-of-living adjustments.
(6) PEPRA provides, for the purpose of determining a retirement benefit paid to a person who first becomes a member of a public retirement system on or after January 1, 2013, that final compensation means the member’s highest average annual pensionable compensation earned, as defined, during a period of at least 36 consecutive months, or at least 3 school years, as specified.
This bill would provide for the purpose defining final compensation, as described above, the school years are to be consecutive.
(7) PEPRA prohibits a public employer from providing a retirement health benefit vesting schedule to a manager or an employee or officer who is excluded from collective bargaining that is more advantageous than that provided generally to other public employees of the same employer who are in related membership classifications.
This bill would clarify that these provisions do not require an employer to change the vesting schedule of any employee who was subject to a specific retiree health benefit vesting schedule prior to January 1, 2013, or who had a contractual agreement prior to January 1, 2013, for a specific retiree health vesting schedule and make technical changes.
(8) On and after January 1, 2013, PEPRA prohibits a public employer from offering a plan of replacement benefits for members and any survivors or beneficiaries whose retirement benefits are limited by specified federal law. On and after January 1, 2013, PEPRA makes that prohibition and certain other provisions related to replacement benefits applicable to new employees.
This bill would instead make those provisions applicable to new members.
(9) PEPRA generally prohibits a retired person who retires from a public employer from serving, being employed by, or being employed through a contract directly by, a public employer in the same retirement system from which the retiree receives a pension benefit without reinstatement, subject to certain exceptions and limitations. The act prohibits reemployment of a retiree pursuant to these provisions for a period of 180 days following the date of retirement unless he or she falls within certain exceptions to the prohibition, of which one is that the retiree is a public safety officer or a firefighter.
This bill would clarify that, for a retiree who is a public safety officer or a firefighter, he or she must be hired to perform a function or functions regularly performed by a safety officer or firefighter.
(10) PEPRA, until January 1, 2018, authorizes a safety member of a public retirement system who retires for industrial disability to receive a disability retirement equal to the greater of specified benefit amounts.
This bill would repeal the above provision.
(11) PEPRA requires that 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, forfeit rights, 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 that these provisions supplement the application of specified forfeiture provisions with respect to a judge and, if there is a conflict, the provisions that result in the greatest forfeiture or provide the most stringent procedural requirements shall apply.
(12) PERL prescribes increases in required employee defined benefit plan contributions, in relation to the normal cost of benefits, for specified bargaining units. PERL requires that contribution rates for employees who are exempted from the definition of state employee and for officers and employees of the executive, legislative, or judicial branches of government who are not members of the civil service be adjusted consistent with those provisions.
This bill would apply the provisions described above to state employees excluded from collective bargaining. The bill would authorize the California State University, on or after January 1, 2018, to require that its member employees pay up to certain percentages of the normal cost of benefits, depending on employment classification, as specified.
(13) Under PEPRA, a state safety member of PERS who retires on or after January 1, 2013, for industrial disability receives a disability retirement benefit equal to the greater of certain benefits, including, among others, 50% of his or her final compensation, plus an annuity purchased with his or her accumulated contributions, if any.
This bill would clarify that the portion of the industrial disability retirement benefit described above refers to an annuity purchased with the member’s accumulated additional contributions.
(14) The County Employees Retirement Law of 1937 (CERL) establishes an alternative retirement plan that is applicable to Los Angeles, which includes both contributory and noncontributory plans. CERL prescribes specified formulas for computation of the retirement allowance payable for a service retirement, and for the computation of contributions, for certain members, including those to whom the federal Social Security Act applies.
This bill would make a technical change in the alternate retirement plan that is applicable to Los Angeles. The bill would specify that certain formulas prescribed by CERL do not apply to a person who becomes a member of a county retirement system under a benefit plan subject to PEPRA, as specified.
(15) This bill would make legislative findings and declarations regarding its relation to existing law and intended application.
(16) This bill would declare that it is to take effect immediately as an urgency statute.
Vote: 2⁄3. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
The Legislature finds and declares that this act
2clarifies the California Public Employees’ Pension Reform Act of
32013, is declaratory of existing law, and is intended to apply
4concurrently with the initial operation of that act.
Section 7522.02 of the Government Code is amended
6to read:
(a) (1) Notwithstanding any other law, except as
8provided in this article, on and after January 1, 2013, this article
9shall apply to all state and local public retirement systems and to
10their participating employers, including the Public Employees’
11Retirement System, the State Teachers’ Retirement System, the
12Legislators’ Retirement System, the Judges’ Retirement System,
13the Judges’ Retirement System II, county and district retirement
14systems created pursuant to the County Employees Retirement
15Law of 1937, independent public retirement systems, and to
16individual retirement plans offered by public employers. However,
17this article shall be subject to the Internal Revenue Code and
18Section 17 of Article XVI of the California Constitution. The
19administration of the requirements of this
article shall comply with
20applicable provisions of the Internal Revenue Code and the
21Revenue and Taxation Code.
22(2) Notwithstanding paragraph (1), this article shall not apply
23to the entities described in Section 9 of Article IX of, and Sections
244 and 5 of Article XI of, the California Constitution, except to the
25extent that these entities continue to be participating employers in
26any retirement system governed by state statute. Accordingly, any
27retirement plan approved before January 1, 2013, by the voters of
28any entity excluded from coverage by this section shall not be
29affected by this article.
30(3) (A) Notwithstanding paragraph (1), this article shall not
31apply to a public employee whose interests are protected under
32Section 5333(b) of Title 49 of the United States Code
until a federal
33district court rules that the United States Secretary of Labor, or
34his or her designee, erred in determining that the application of
35this article precludes certification under that section, or until
36January 1, 2015, whichever is sooner.
37(B) If a federal district court upholds the determination of the
38United States Secretary of Labor, or his or her designee, that
P8 1application of this article precludes him or her from providing a
2certification under Section 5333(b) of Title 49 of the United States
3Code, this article shall not apply to a public employee specified
4in subparagraph (A).
5(3)
end delete
6begin insert(4)end insert Notwithstanding paragraph (1), this article shall not apply
7to a multiemployer plan authorized by Section 302(c)(5) of the
8begin delete Taft-Harleyend deletebegin insert Taft-Hartleyend insert Act (29 U.S.C. Sec. 186(c)(5)) if the
9public employer began participation in that plan prior to January
101, 2013, and the plan is regulated by the Employee Retirement
11Income Security Act of 1974.
12(b) The benefit plan required by this article shall apply to public
13employees who are new members as defined in Section 7522.04.
14(c) (1) Individuals who were
employed by any public employer
15before January 1, 2013, and who became employed by a subsequent
16public employer for the first time on or after January 1, 2013, shall
17be subject to the retirement plan that would have been available
18to employees of the subsequent employer who were first employed
19by the subsequent employer on or before December 31, 2012, if
20the individual was subject to concurrent membership for which
21creditable service was performed in the previous six months or
22reciprocity established under any of the following provisions:
23(A) Article 5 (commencing with Section 20350) of Chapter 3
24of Part 3 of Division 5 of Title 2.
25(B) Chapter 3 (commencing with Section 31450) of Part 3 of
26Division 4 of Title 3.
27(C) Any agreement between public retirement systems to provide
28reciprocity to members of the systems.
29(D) Section 22115.2 of the Education Code.
30(2) An individual who was employed before January 1, 2013,
31and who, without a separation from employment, changed
32employment positions and became subject to a different defined
33benefit plan in a different public retirement system offered by his
34or her employer shall be subject to that defined benefit plan as it
35would have been available to employees who were first employed
36on or before December 31, 2012.
37(d) If a public employer, before January 1, 2013, offers a defined
38benefit pension plan that provides a defined benefit formula with
39a lower benefit factor at normal retirement age and results in a
40lower normal cost than the defined benefit formula required by
P9 1this article, that employer may continue to offer that defined benefit
2formula instead of the defined benefit formula
required by this
3article, and shall not be subject to the requirements of Section
47522.10 for pensionable compensation subject to that formula.
5However, if the employer adopts a new defined benefit formula
6on or after January 1, 2013, that formula must conform to the
7requirements of this article or must be determined and certified by
8the retirement system’s chief actuary and the retirement board to
9have no greater risk and no greater cost to the employer than the
10defined benefit formula required by this article and must be
11approved by the Legislature. New members of the defined benefit
12plan may only participate in the lower cost defined benefit formula
13that was in place before January 1, 2013, or a defined benefit
14formula that conforms to the requirements of this article or is
15approved by the Legislature as provided in this subdivision.
16(e) If a public employer, before January 1, 2013, offers a
17retirement benefit plan that consists solely of a
defined contribution
18plan, that employer may continue to offer that plan instead of the
19defined benefit pension plan required by this article. However, if
20the employer adopts a new defined benefit pension plan or defined
21benefit formula on or after January 1, 2013, that plan or formula
22must conform to the requirements of this article or must be
23determined and certified by the retirement system’s chief actuary
24and the system’s board to have no greater risk and no greater cost
25to the employer than the defined benefit formula required by this
26article and must be approved by the Legislature. New members of
27the employer’s plan may only participate in the defined
28contribution plan that was in place before January 1, 2013, or a
29defined contribution plan or defined benefit formula that conforms
30to the requirements of this article. This subdivision shall not be
31construed to prohibit an employer from offering a defined
32contribution plan on or after January 1, 2013, either with or without
33a defined benefit plan,
whether or not the employer offered a
34defined contribution plan prior to that date.
35(f) The Judges’ Retirement System and the Judges’ Retirement
36System II shall not be required to adopt the defined benefit formula
37required by Section 7522.20 or 7522.25 or the compensation
38limitations defined in Section 7522.10.
39(g) This article shall not be construed to provide membership
40in any public retirement system for an individual who would not
P10 1otherwise be eligible for membership under that system’s
2applicable rules or laws.
3(h) On and after January 1, 2013, each public retirement system
4shall modify its plan or plans to comply with the requirements of
5this article and may adopt regulations or resolutions for this
6purpose.
Section 7522.04 of the Government Code is amended
8to read:
For the purposes of this article:
10(a) “Defined benefit formula” means a formula used by the
11retirement system to determine a retirement benefit based on age,
12years of service, and pensionable compensation earned by an
13employee up to the limit defined in Section 7522.10.
14(b) “Employee contributions” means the contributions to a public
15retirement system required to be paid by a member of the system,
16as fixed by law, regulation, administrative action, contract, contract
17amendment, or other written agreement recognized by the
18retirement system as establishing an employee contribution.
19(c) “Federal system” means the old age, survivors, disability,
20and health
insurance provisions of the federal Social Security Act
21(42 U.S.C. Sec. 301 et seq.).
22(d) “Member” means a public employee who is a member of
23any type of a public retirement system or plan.
24(e) “New employee” means either of the following:
25(1) An employee, including one who is elected or appointed, of
26a public employer who is employed for the first time by any public
27employer on or after January 1, 2013, and who was not employed
28by any other public employer prior to that date.
29(2) An employee, including one who is elected or appointed, of
30a public employer who is employed for the first time by any public
31employer on or after January 1, 2013, and who was employed by
32another public employer prior to that date, but who was not subject
33to reciprocity under
subdivision (c) of Section 7522.02.
34(f) “New member” means any of the following:
35(1) An individual who becomes a member of any public
36retirement system for the first time on or after January 1, 2013,
37and who was not a member of any other public retirement system
38prior to that date.
39(2) An individual who becomes a member of a public retirement
40system for the first time on or after January 1, 2013, and who was
P11 1a member of another public retirement system prior to that date,
2but who was not subject to reciprocity under subdivision (c) of
3Section 7522.02.
4(3) An individual who was an active member in a retirement
5system and who, after a break in service of more than six months,
6returned to active membership in that system with a new employer.
7For purposes
of this subdivision, a change in employment between
8state entities or from one school employer to another shall not be
9considered as service with a new employer.
10(g) “Normal cost” means the portion of the present value of
11projected benefits under the defined benefit that is attributable to
12the current year of service, as determined by the public retirement
13system’s actuary according to the most recently completed
14valuation. For the purpose of determining normal cost, the system’s
15actuary may use a single rate of contribution or an age-based rate
16of contribution as is applicable to that retirement system.
17(h) “Public employee” means an officer, including one who is
18elected or appointed, or an employee of a public employer.
19(i) “Public employer” means:
20(1) The state and every state entity, including, but not limited
21to, the Legislature, the judicial branch, including judicial officers,
22and the California State University.
23(2) Any political subdivision of the state, or agency or
24instrumentality of the state or subdivision of the state, including,
25but not limited to, a city, county, city and county, a charter city, a
26charter county, school district, community college district, joint
27powers authority, joint powers agency, and any public agency,
28authority, board, commission, or district.
29(3) Any charter school that elects or is required to participate
30in a public retirement system.
31(j) “Public retirement system” means any pension or retirement
32system of a public employer, including, but not limited to, an
33independent retirement plan offered by a public
employer that the
34public employer participates in or offers to its employees for the
35purpose of providing retirement benefits, or a system of benefits
36for public employees that is governed by Section 401(a) of Title
3726 of the United States Code.
Section 7522.10 of the Government Code is amended
39to read:
(a) On and after January 1, 2013, each public
2retirement system shall modify its plan or plans to comply with
3the requirements of this section for each public employer that
4participates in the system.
5(b) Whenever pensionable compensation, as defined in Section
67522.34, is used in the calculation of a benefit, the pensionable
7compensation shall be subject to the limitations set forth in
8subdivision (c).
9(c) The pensionable compensation used to calculate the defined
10benefit paid to a new member who retires from the system shall
11not exceed the following applicable percentage of the contribution
12and benefit base specified in Section 430(b) of Title 42 of the
13United States Code on January 1, 2013:
14(1) One hundred percent for a member whose service is included
15in the federal system.
16(2) One hundred twenty percent for a member whose service is
17not included in the federal system.
18(d) (1) The retirement system shall adjust the pensionable
19compensation described in subdivision (c) based on the annual
20changes to the Consumer Price Index for All Urban Consumers:
21U.S. City Average, calculated by dividing the Consumer Price
22Index for All Urban Consumers: U.S. City Average, for the month
23of September in the calendar year preceding the adjustment by the
24Consumer Price Index for All Urban Consumers: U.S. City
25Average, for the month of September of the previous year rounded
26to the nearest thousandth. The adjustment shall be effective
27annually on January 1, beginning in 2014.
28(2) The Legislature reserves the right to modify the requirements
29of this subdivision with regard to all public employees subject to
30this section, except that the Legislature may not modify these
31provisions in a manner that would result in a decrease in benefits
32accrued prior to the effective date of the modification.
33(e) A public employer shall not offer a defined benefit or any
34combination of defined benefits, including a defined benefit offered
35by a private provider, on compensation in excess of the limitation
36in subdivision (c).
37(f) (1) Subject to the limitation in subdivision (c) of Section
387522.42, a public employer may provide a contribution to a defined
39contribution plan for compensation in excess of the limitation in
P13 1subdivision (c) provided the plan and the contribution meet the
2
requirements and limits of federal law.
3(2) A public employee who receives an employer contribution
4to a defined contribution plan shall not have a vested right to
5continue receiving the employer contribution.
6(g) Any employer contributions to any employee defined
7contribution plan above the pensionable compensation limits in
8subdivision (c) shall not exceed the employer’s contribution rate,
9as a percentage of pay, required to fund the defined benefit plan
10for income subject to the limitation in subdivision (c) of Section
117522.42.
12(h) The retirement system shall limit the pensionable
13compensation used to calculate the contributions required of an
14employer or a new member to the amount of compensation that
15would be used for calculating a defined benefit as set forth in
16subdivision (c) or
(d).
Section 7522.25 of the Government Code is amended
18to read:
(a) Each retirement system that offers a defined
20benefit plan for safety members of the system shall use one or
21more of the defined benefit formulas prescribed by this section. A
22member may retire for service under any of the formulas in this
23section after five years of service and upon reaching 50 years of
24age.
25(b) The Basic Safety Plan shall provide a pension at retirement
26for service equal to the percentage of the member’s final
27compensation set forth opposite the member’s age at retirement,
28taken to the preceding quarter year, in the following table,
29multiplied by the number of years of service in the system as a
30safety member.
Age at Retirement |
Fraction |
---|---|
50 |
1.426 |
501⁄4 |
1.447 |
501⁄2 |
1.467 |
503⁄4 |
1.488 |
51 |
1.508 |
511⁄4 |
1.529 |
511⁄2 |
1.549 |
513⁄4 |
1.570 |
52 |
1.590 |
521⁄4 |
1.611 |
521⁄2 |
1.631 |
523⁄4 |
1.652 |
53 |
1.672 |
531⁄4 |
1.693 |
531⁄2 |
1.713 |
533⁄4 |
1.734 |
54 |
1.754 |
541⁄4 |
1.775 |
541⁄2 |
1.795 |
543⁄4 |
1.816 |
55 |
1.836 |
551⁄4 |
1.857 |
551⁄2 |
1.877 |
553⁄4 |
1.898 |
56 |
1.918 |
561⁄4 |
1.939 |
561⁄2 |
1.959 |
563⁄4 |
1.980 |
57 and over |
2.000 |
P14 23(c) The Safety Option Plan One shall provide a pension at
24retirement for service equal to the percentage of the member’s
25final compensation set forth opposite the member’s age at
26retirement, taken to the preceding quarter year, in the following
27table, multiplied by the number of years of service in the system
28as a safety member.
Age at Retirement |
Fraction |
50 |
2.000 |
501⁄4 |
2.018 |
501⁄2 |
2.036 |
503⁄4 |
2.054 |
51 |
2.071 |
511⁄4 |
2.089 |
511⁄2 |
2.107 |
513⁄4 |
2.125 |
52 |
2.143 |
521⁄4 |
2.161 |
521⁄2 |
2.179 |
523⁄4 |
2.196 |
53 |
2.214 |
531⁄4 |
2.232 |
531⁄2 |
2.250 |
533⁄4 |
2.268 |
54 |
2.286 |
541⁄4 |
2.304 |
541⁄2 |
2.321 |
543⁄4 |
2.339 |
55 |
2.357 |
551⁄4 |
2.375 |
551⁄2 |
2.393 |
553⁄4 |
2.411 |
56 |
2.429 |
561⁄4 |
2.446 |
561⁄2 |
2.464 |
563⁄4 |
2.482 |
57 and over |
2.500 |
P15 21(d) The Safety Option Plan Two shall provide a pension at
22retirement for service equal to the percentage of the member’s
23final compensation set forth opposite the member’s age at
24retirement, taken to the preceding quarter year, in the following
25table, multiplied by the number of years of service in the system
26as a safety member.
Age at Retirement |
Fraction |
---|---|
50 |
2.000 |
501⁄4 |
2.025 |
501⁄2 |
2.050 |
503⁄4 |
2.075 |
51 |
2.100 |
511⁄4 |
2.125 |
511⁄2 |
2.150 |
513⁄4 |
2.175 |
52 |
2.200 |
521⁄4 |
2.225 |
521⁄2 |
2.250 |
523⁄4 |
2.275 |
53 |
2.300 |
531⁄4 |
2.325 |
531⁄2 |
2.350 |
533⁄4 |
2.375 |
54 |
2.400 |
541⁄4 |
2.425 |
541⁄2 |
2.450 |
543⁄4 |
2.475 |
55 |
2.500 |
551⁄4 |
2.525 |
551⁄2 |
2.550 |
553⁄4 |
2.575 |
56 |
2.600 |
561⁄4 |
2.625 |
561⁄2 |
2.650 |
563⁄4 |
2.675 |
57 and over |
2.700 |
P16 19(e) On and after January 1, 2013, an employer shall offer one
20or more of the safety formulas prescribed by this section to new
21members who are safety employees. The formula offered shall be
22the formula that is closest to, and provides a lower benefit at 55
23years of age than, the formula provided to members in the same
24retirement classification offered by the employer on December
2531, 2012.
26(f) On and after January 1, 2013, an employer and its employees
27subject to Safety Option Plan One or Safety
Option Plan Two may
28agree in a memorandum of understanding to be subject to Safety
29Option Plan One or the Basic Safety Plan, subject to the following:
30(1) The lower plan shall apply to members first employed on
31or after the effective date of the lower plan, and shall be agreed to
32in a memorandum of understanding that has been collectively
33bargained in accordance with applicable laws.
34(2) A retirement plan contract amendment with a public
35retirement system to alter a retirement formula pursuant to this
36subdivision shall not be implemented by the employer in the
37absence of a memorandum of understanding that has been
38collectively bargained in accordance with applicable laws.
39(3) An employer shall not use impasse procedures to impose
40the lower plan.
P17 1(4) An
employer shall not provide a different defined benefit
2for nonrepresented, managerial, or supervisory employees than
3the employer provides for other public employees, including
4represented employees, of the same employer who are in the same
5membership classifications.
6(g) Pensionable compensation used to calculate the defined
7benefit shall be limited as described in Section 7522.10.
Section 7522.30 of the Government Code is amended
9to read:
(a) This section shall apply to all public employers
11and to all new members. Equal sharing of normal costs between
12public employers and public employees shall be the standard. The
13standard shall be that employees pay at least 50 percent of normal
14costs and that employers not pay any of the required employee
15contribution.
16(b) The “normal cost rate” shall mean the annual actuarially
17determined normal cost for the plan of retirement benefits provided
18to the new member and shall be established based on the actuarial
19assumptions used to determine the liabilities and costs as part of
20the annual actuarial valuation. The plan of retirement benefits shall
21include any elements that would impact the actuarial determination
22of the normal cost, including,
but not limited to, the retirement
23formula, eligibility and vesting criteria, ancillary benefit provisions,
24and any automatic cost-of-living adjustments as determined by the
25public retirement system.
26(c) begin delete(1)end deletebegin delete end deleteNew members employed by those public employers
27defined in paragraphs (2) and (3) of subdivision (i) of Section
287522.04, the Legislature, the California State University, and the
29judicial branch who participate in a defined benefit plan shall have
30an initial contribution rate of at least 50 percent of the normal cost
31rate for that defined benefit plan, rounded to the nearest quarter
32of 1 percent, unless a greater contribution rate has been agreed to
33pursuant to the requirements in subdivision (e). This contribution
34shall not be paid by the employer on the
employee’s behalf.
35(2) For purposes of this subdivision, “new member” does not
36include a member who is a judge who was
elected to office prior
37to January 1, 2013, despite assuming the office of judge, and
38becoming a member of the Judges’ Retirement System II, for the
39first time on or after that date.
P18 1(d) Notwithstanding subdivision (c), once established, the
2employee contribution rate described in subdivision (c) shall not
3be adjusted on account of a change to the normal cost rate unless
4the normal cost rate increases or decreases by more than 1 percent
5of payroll above or below the normal cost rate in effect at the time
6the employee contribution rate is first established or, if later, the
7normal cost rate in effect at the time of the last adjustment to the
8employee contribution rate under this section.
9(e) Notwithstanding subdivision (c), employee contributions
10may be more than one-half of the normal cost rate if the increase
11has been agreed to through the collective
bargaining process,
12subject to the following conditions:
13(1) The employer shall not contribute at a greater rate to the
14plan for nonrepresented, managerial, or supervisory employees
15than the employer contributes for other public employees, including
16represented employees, of the same employer who are in related
17retirement membership classifications.
18(2) The employer shall not increase an employee contribution
19rate in the absence of a memorandum of understanding that has
20been collectively bargained in accordance with applicable laws.
21(3) The employer shall not use impasse procedures to increase
22an employee contribution rate above the rate required by this
23section.
24(f) If the terms of a contract, including a memorandum of
25understanding, between a public
employer and its public
26employees, that is in effect on January 1, 2013, would be impaired
27by any provision of this section, that provision shall not apply to
28the public employer and public employees subject to that contract
29until the expiration of that contract. A renewal, amendment, or
30any other extension of that contract shall be subject to the
31requirements of this section.
Section 7522.32 of the Government Code is amended
33to read:
For the purposes of determining a retirement benefit
35to be paid to a new member of a public retirement system, the
36following shall apply:
37(a) Final compensation shall mean the highest average annual
38pensionable compensation earned by the member during a period
39of at least 36 consecutive months, or at least three consecutive
40school years if applicable, immediately preceding his or her
P19 1retirement or last separation from service if earlier, or during any
2other period of at least 36 consecutive months, or at least three
3consecutive school years if applicable, during the member’s
4applicable service that the member designates on the application
5for retirement.
6(b) On or after January 1, 2013, an employer shall not modify
7a
benefit plan to permit a calculation of final compensation on a
8basis of less than the average annual compensation earned by the
9member during a consecutive 36-month period, or three school
10years if applicable, for members who have been subject to at least
11a 36-month or three-school-year calculation prior to that date.
Section 7522.34 of the Government Code is amended
13to read:
(a) “Pensionable compensation” of a new member
15of any public retirement system means the normal monthly rate
16of pay or base pay of the member paid in cash to similarly situated
17members of the same group or class of employment for services
18rendered on a full-time basis during normal working hours,
19pursuant to publicly available pay schedules, subject to the
20limitations of subdivision (c).
21(b) Compensation that has been deferred shall be deemed
22pensionable compensation when earned rather than when paid.
23(c) Notwithstanding any other law, “pensionable compensation”
24of a new member does not include the following:
25(1) Any compensation
determined by the board to have been
26paid to increase a member’s retirement benefit under that system.
27(2) Compensation that had previously been provided in kind to
28the member by the employer or paid directly by the employer to
29a third party other than the retirement system for the benefit of the
30member and which was converted to and received by the member
31in the form of a cash payment.
32(3) Any one-time or ad hoc payments made to a member.
33(4) Severance or any other payment that is granted or awarded
34to a member in connection with or in anticipation of a separation
35from employment, but is received by the member while employed.
36(5) Payments for unused vacation, annual leave, personal leave,
37sick leave, or compensatory time off, however denominated,
38
whether paid in a lump sum or otherwise, regardless of when
39reported or paid.
P20 1(6) Payments for additional services rendered outside of normal
2working hours, whether paid in a lump sum or otherwise.
3(7) Any employer-provided allowance, reimbursement, or
4payment, including, but not limited to, one made for housing,
5vehicle, or uniforms.
6(8) Compensation for overtime work, other than as defined in
7Section 207(k) of Title 29 of the United States Code.
8(9) Employer contributions to deferred compensation or defined
9contribution plans.
10(10) Any bonus paid in addition to the compensation described
11in subdivision (a).
12(11) Any other
form of compensation a public retirement board
13determines is inconsistent with the requirements of subdivision
14(a).
15(12) Any other form of compensation a public retirement board
16determines should not be pensionable compensation.
17(13) (A) Any form of compensation identified that has been
18agreed to be nonpensionable pursuant to a memorandum of
19understanding for employees bound by the memorandum of
20understanding. The employer subject to the memorandum of
21understanding shall inform the retirement system of the excluded
22compensation and provide a copy of the memorandum of
23understanding.
24(B) The employer may determine if excluded compensation
25identified in subparagraph (A) shall apply to nonrepresented
26employees who are aligned with employees subject to the
27memorandum of understanding described in
subparagraph (A).
28The employer shall inform the retirement system of thebegin delete inclusionend delete
29begin insert exclusionend insert of this compensation and provide a copy of the public
30pay schedule detailing the exclusion.
Section 7522.40 of the Government Code is amended
32to read:
(a) A public employer shall not provide to a public
34employee who is elected or appointed, a trustee, excluded from
35collective bargaining, exempt from civil service, or a manager any
36vesting schedule for the employer contribution payable for
37postretirement health benefits that is more advantageous than that
38provided generally to other public employees, including represented
39employees, of the same public employer who are in related
40retirement membership classifications.
P21 1(b) This section shall not require an employer to change the
2vesting schedule for the employer contribution payable for
3postretirement health benefits of any public employee who was
4subject to a specific vesting schedule pursuant to statute, collective
5bargaining agreement or resolution for these
employer
6contributions prior to January 1, 2013, or who had a contractual
7agreement with an employer prior to January 1, 2013, for a specific
8vesting schedule for these employer contributions.
Section 7522.43 of the Government Code is amended
10to read:
(a) A public employer shall not offer a plan of
12replacement benefits for members and any survivors or
13beneficiaries whose retirement benefits are limited by Section 415
14of Title 26 of the United States Code. This section shall apply to
15new members.
16(b) A public retirement system may continue to administer a
17plan of replacement benefits for employees first hired prior to
18January 1, 2013.
19(c) A public employer that does not offer a plan of replacement
20benefits prior to January 1, 2013, shall not offer such a plan for
21any employee on or after January 1, 2013.
22(d) A public employer that offers a plan of replacement
benefits
23prior to January 1, 2013, shall not offer such a plan to any
24additional employee group to which the plan was not provided
25prior to January 1, 2013.
Section 7522.56 of the Government Code is amended
27to read:
(a) This section shall apply to any person who is
29receiving a pension benefit from a public retirement system and
30shall supersede any other provision in conflict with this section.
31(b) A retired person shall not serve, be employed by, or be
32employed through a contract directly by, a public employer in the
33same public retirement system from which the retiree receives the
34benefit without reinstatement from retirement, except as permitted
35by this section.
36(c) A person who retires from a public employer may serve
37without reinstatement from retirement or loss or interruption of
38benefits provided by the retirement system upon appointment by
39the appointing power of a public employer either during an
40
emergency to prevent stoppage of public business or because the
P22 1retired person has skills needed to perform work of limited
2duration.
3(d) Appointments of the person authorized under this section
4shall not exceed a total for all employers in that public retirement
5system of 960 hours or other equivalent limit, in a calendar or
6fiscal year, depending on the administrator of the system. The rate
7of pay for the employment shall not be less than the minimum,
8nor exceed the maximum, paid by the employer to other employees
9performing comparable duties, divided by 173.333 to equal an
10hourly rate. A retired person whose employment without
11reinstatement is authorized by this section shall acquire no service
12credit or retirement rights under this section with respect to the
13employment unless he or she reinstates from retirement.
14(e) (1) Notwithstanding subdivision (c),
any retired person shall
15not be eligible to serve or be employed by a public employer if,
16during the 12-month period prior to an appointment described in
17this section, the retired person received any unemployment
18insurance compensation arising out of prior employment subject
19to this section with a public employer. A retiree shall certify in
20writing to the employer upon accepting an offer of employment
21that he or she is in compliance with this requirement.
22(2) A retired person who accepts an appointment after receiving
23unemployment insurance compensation as described in this
24subdivision shall terminate that employment on the last day of the
25current pay period and shall not be eligible for reappointment
26subject to this section for a period of 12 months following the last
27day of employment.
28(f) A retired person shall not be eligible to be employed pursuant
29to this section for a
period of 180 days following the date of
30retirement unless he or she meets one of the following conditions:
31(1) The employer certifies the nature of the employment and
32that the appointment is necessary to fill a critically needed position
33before 180 days have passed and the appointment has been
34approved by the governing body of the employer in a public
35meeting. The appointment may not be placed on a consent calendar.
36(2) The state employer certifies the nature of the employment
37and that the appointment is necessary to fill a critically needed
38state employment position before 180 days have passed and the
39appointment has been approved by the Department of Human
40Resources. The department may establish a process to delegate
P23 1appointing authority to individual state agencies, but shall audit
2the process to determine if abuses of the system occur. If necessary,
3the department may assume
an agency’s appointing authority for
4retired workers and may charge the department an appropriate
5amount for administering that authority.
6(3) The retiree is eligible to participate in the Faculty Early
7Retirement Program pursuant to a collective bargaining agreement
8with the California State University that existed prior to January
91, 2013, or has been included in subsequent agreements.
10(4) The retiree is a public safety officer or firefighter hired to
11perform a function or functions regularly performed by a public
12safety officer or firefighter.
13(g) A retired person who accepted a retirement incentive upon
14retirement shall not be eligible to be employed pursuant to this
15section for a period of 180 days following the date of retirement
16and subdivision (f) shall not apply.
17(h) This section shall not apply to a person who is retired from
18the State Teachers’ Retirement System, and who is subject to
19Section 24214, 24214.5, or 26812 of the Education Code.
20(i) This section shall not apply to (1) a subordinate judicial
21officer whose position, upon retirement, is converted to a judgeship
22pursuant to Section 69615, and he or she returns to work in the
23converted position, and the employer is a trial court, or (2) a retiree
24who takes office as a judge of a court of record pursuant to Article
25VI of the California Constitution or a retiree of the Judges’
26Retirement System or the Judges’ Retirement System II who is
27appointed to serve as a retired judge.
Section 7522.66 of the Government Code is repealed.
Section 7522.72 of the Government Code is amended
30to read:
(a) This section shall apply to a public employee first
32employed by a public employer or first elected or appointed to an
33office before January 1, 2013, and, on and after that date, Section
347522.70 shall not apply.
35(b) (1) If a public employee is convicted by a state or federal
36trial court of any felony under state or federal law for conduct
37arising out of or in the performance of his or her official duties, in
38pursuit of the office or appointment, or in connection with
39obtaining salary, disability retirement, service retirement, or other
40benefits, he or she shall forfeit all accrued rights and benefits in
P24 1any public retirement system in which he or she is a member to
2the extent provided in subdivision (c) and shall not accrue further
3
benefits in that public retirement system, effective on the date of
4the conviction.
5(2) If a public employee who has contact with children as part
6of his or her official duties is convicted of a felony that was
7committed within the scope of his or her official duties against or
8involving a child who he or she has contact with as part of his or
9her official duties, he or she shall forfeit all accrued rights and
10benefits in any public retirement system in which he or she is a
11member to the extent provided in subdivision (c) and shall not
12accrue further benefits in that public retirement system, effective
13on the date of the conviction.
14(c) (1) A public employee shall forfeit all the rights and benefits
15earned or accrued from the earliest date of the commission of any
16felony described in subdivision (b) to the forfeiture date, inclusive.
17The rights and benefits
shall remain forfeited notwithstanding any
18reduction in sentence or expungement of the conviction following
19the date of the public employee’s conviction. Rights and benefits
20attributable to service performed prior to the date of the first
21commission of the felony for which the public employee was
22convicted shall not be forfeited as a result of this section.
23(2) For purposes of this subdivision, “forfeiture date” means
24the date of the conviction.
25(d) (1) Any contributions to the public retirement system made
26by the public employee described in subdivision (b) on or after
27the earliest date of the commission of any felony described in
28subdivision (b) shall be returned, without interest, to the public
29employee upon the occurrence of a distribution event unless
30otherwise ordered by a court or determined by the pension
31administrator.
32(2) Any funds returned to the public employee pursuant to
33subdivision (d) shall be disbursed by electronic funds transfer to
34an account of the public employee, in a manner conforming with
35the requirements of the Internal Revenue Code, and the public
36retirement system shall notify the court and the district attorney
37at least three business days before that disbursement of funds.
38(3) For the purposes of this subdivision, a “distribution event”
39means any of the following:
40(A) Separation from employment.
P25 1(B) Death of the member.
2(C) Retirement of the member.
3(e) (1) Upon conviction, a public employee as
described in
4subdivision (b) and the prosecuting agency shall notify the public
5employer who employed the public employee at the time of the
6commission of the felony within 60 days of the felony conviction
7of all of the following information:
8(A) The date of conviction.
9(B) The date of the first known commission of the felony.
10(2) The operation of this section is not dependent upon the
11performance of the notification obligations specified in this
12subdivision.
13(f) The public employer that employs or employed a public
14employee described in subdivision (b) and that public employee
15shall each notify the public retirement system in which the public
16employee is a member of that public employee’s conviction within
1790 days of the conviction. The operation of
this section is not
18dependent upon the performance of the notification obligations
19specified in this subdivision.
20(g) A public retirement system may assess a public employer a
21reasonable amount to reimburse the cost of audit, adjustment, or
22correction, if it determines that the public employer failed to
23comply with this section.
24(h) If a public employee’s conviction is reversed and that
25decision is final, the employee shall be entitled to do either of the
26following:
27(1) Recover the forfeited rights and benefits as adjusted for the
28contributions received pursuant to subdivision (d).
29(2) Redeposit those contributions and interest that would have
30accrued during the forfeiture period, as determined by the system
31actuary, and then recover the full amount of
the forfeited rights
32and benefits.
33(i) The forfeiture of rights and benefits provided in this section,
34with respect to judges, are in addition to and supplement the
35forfeitures and other requirements provided in Section 75033.2,
3675062, 75526, or 75563. If there is a conflict between this section
37and Section 75033.2, 75062, 75526, or 75563, the provisions that
38result in the greatest forfeiture or provide the most stringent
39procedural requirements to the claim of a judge shall apply.
P26 1(j) A public employee first employed by a public employer or
2first elected or appointed to an office on or after January 1, 2013,
3shall be subject to Section 7522.74.
Section 7522.74 of the Government Code is amended
5to read:
(a) This section shall apply to a public employee first
7employed by a public employer or first elected or appointed to an
8office on or after January 1, 2013, and on and after that date,
9Section 7522.70 shall not apply.
10(b) (1) If a public employee is convicted by a state or federal
11trial court of any felony under state or federal law for conduct
12arising out of or in the performance of his or her official duties, in
13pursuit of the office or appointment, or in connection with
14obtaining salary, disability retirement, service retirement, or other
15benefits, he or she shall forfeit all accrued rights and benefits in
16any public retirement system in which he or she is a member to
17the extent provided in subdivision (c) and shall not accrue further
18
benefits in that public retirement system, effective on the date of
19the conviction.
20(2) If a public employee who has contact with children as part
21of his or her official duties is convicted of a felony that was
22committed within the scope of his or her official duties against or
23involving a child who he or she has contact with as part of his or
24her official duties, he or she shall forfeit all accrued rights and
25benefits in any public retirement system in which he or she is a
26member to the extent provided in subdivision (c) and shall not
27accrue further benefits in that public retirement system, effective
28on the date of the conviction.
29(c) (1) A public employee shall forfeit all the rights and benefits
30earned or accrued from the earliest date of the commission of any
31felony described in subdivision (b) to the forfeiture date, inclusive.
32The rights and benefits
shall remain forfeited notwithstanding any
33reduction in sentence or expungement of the conviction following
34the date of the public employee’s conviction. Rights and benefits
35attributable to service performed prior to the date of the first
36commission of the felony for which the public employee was
37convicted shall not be forfeited as a result of this section.
38(2) For purposes of this subdivision, “forfeiture date” means
39the date of the conviction.
P27 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.
P28 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 before January 1, 2013, shall
19be subject to Section 7522.72.
Section 20683.2 of the Government Code is amended
21to read:
Equal sharing of normal costs between the state
23employer and public employees shall be the standard. It shall be
24the standard that employees pay at least 50 percent of normal costs
25and that employers not pay any of the required employee
26contribution. Equal sharing of normal costs is currently the standard
27for most state employees.
28(a) Notwithstanding any other section of this code, or other
29provision of law in conflict with this section, except as provided
30in Section 7522.30, normal contribution rates for defined benefit
31plans for state employees of public employers as defined in
32paragraph (1) of subdivision (i) of Section 7522.04, excluding the
33California State University, which shall be subject to subdivision
34(b), shall be determined as follows:
35(1) Normal cost contribution rates shall increase as follows:
36(A) The contribution rate for State Peace Officer/Firefighter
37members in State Bargaining Unit 6 and for State Safety members
38in State Bargaining Units 1, 3, 4, 7, 9, 10, 11, 14, 15, 17, 20, and
3921 will increase by 1.0 percentage point on July 1, 2013, and will
40increase by an additional 1.0 percentage point on July 1, 2014.
P29 1(B) The contribution rate for State Peace Officer/Firefighter
2members in State Bargaining Units 7 and 8 will increase by 1.5
3percentage points on July 1, 2013, and will increase by an
4additional 1.5 percentage points on July 1, 2014.
5(C) The contribution rate for state industrial members in State
6Bargaining Units 1, 3, 4, 6, 9, 10, 11, 14, 15, 17, and 20 will
7increase by 1.0
percentage point on July 1, 2013.
8(D) The contribution rate for state miscellaneous and industrial
9members that have elected the Second Tier benefit formula will
10increase by 1.5 percentage points annually starting July 1, 2013.
11The final annual increase in the contribution rate shall be adjusted
12as appropriate.
13(E) The contribution rate for State Safety members in State
14Bargaining Unit 2 and state miscellaneous members in State
15Bargaining Unit 5 will increase by 1.0 percentage point on July 1,
162013.
17(F) The contribution rate for Patrol members in State Bargaining
18Unit 5 will increase by 1.5 percentage points on July 1, 2013.
19(2) Consistent with paragraph (1), the normal rate of contribution
20shall be adjusted accordingly for related state employees who
are
21exempted from the definition of “state employee,” who are
22excluded from collective bargaining, or who are officers or
23employees of the executive, legislative, or judicial branch of state
24government who are not members of the civil service.
25(b) On and after January 1, 2018, the California State University
26may require that members pay at least 50 percent of the normal
27cost of benefits, provided that their contribution shall be no more
28than 8 percent of pay for miscellaneous members subject to Section
2921354.1, no more than 11 percent of pay for safety members, and
30no more than 13 percent of pay for peace officer/firefighter
31members.
32(A) Before implementing any change pursuant to this paragraph,
33for any represented employees, the employer shall complete the
34good faith bargaining process as required by Chapter 12
35(commencing with Section 3560) of Division 4 of Title 1, including
36
any impasse procedures requiring mediation and factfinding.
37(B) Nothing in this section shall preclude employees of the
38California State University from agreeing to contribute more than
39the costs described in this subdivision for any benefit.
P30 1(C) The Legislature authorizes to the California State University
2to increase member contribution rates pursuant to this paragraph,
3while reserving the right to adjust contribution rates under Section
420689 of the Government Code.
5(c) Calculation of employee contribution rate increases pursuant
6to this section shall be based upon compensation calculations
7established pursuant to Sections 20671 to 20694, inclusive.
8(d) In addition to the actuarially required contribution, savings
9realized by the state employer as a
result of the employee
10contribution rate increases required by this section shall be
11allocated to any unfunded liability, subject to appropriation in the
12annual Budget Act.
Section 21400 of the Government Code is amended
14to read:
(a) A safety member who retires on or after January
161, 2013, for industrial disability shall receive a disability retirement
17benefit equal to the greater of the following:
18(1) Fifty percent of his or her final compensation, plus an annuity
19purchased with his or her accumulated additional contributions, if
20any.
21(2) A service retirement allowance, if he or she is qualified for
22service retirement.
23(3) An actuarially reduced factor, as determined by the actuary,
24for each quarter year that his or her service age is less than 50
25years, multiplied by the number of years of safety service subject
26to the applicable formula, if
he or she is not qualified for service
27retirement.
28(4) Nothing in this section shall require a member to receive a
29lower benefit than he or she would have received prior to January
301, 2013, as the law provided prior to that date.
31(b) This section shall remain in effect only until January 1, 2018,
32and as of that date is repealed, unless a later enacted statute, that
33is enacted before January 1, 2018, deletes or extends that date.
Section 31494.1 of the Government Code is amended
35to read:
(a) In accordance with the provisions of this section,
37general members, whose retirement benefits are governed by the
38noncontributory plan created by this article, may transfer to the
39contributory plan. Contributory plan shall mean Retirement Plan
40D. Transfer may be made by election upon written application
P31 1executed by the member and filed with the board on or before the
2election date and shall be effective on the transfer date, subject to
3the terms and conditions set forth in this section. The election date
4shall be that date identified in the resolution adopted by the board
5of supervisors declaring this section to be operative. The transfer
6date shall be that date on which the member completes deposit of
7all contributions required by Section 31494.3. The election is
8voluntary and may
be revoked upon written notice received by the
9board prior to the transfer date.
10(b) The retirement benefits of members electing to transfer and
11transferred members shall be governed and defined by this section.
12In the event of conflict, this section shall supersede and prevail
13over other provisions, or application of provisions, otherwise
14contained in this article.
15(c) Transferred members relinquish, waive, and forfeit any and
16all vested or accrued benefits available under any other retirement
17plan provided to members of the retirement system, and shall be
18entitled only to the benefits available under the contributory plan.
19(d) Transferred members shall receive retirement service credit
20for that period of service with the employer, for which the members
21were otherwise eligible to receive credit under the plan
created by
22this article. Transferred members shall also receive retirement
23service credit for that period of service for which the member made
24contributions pursuant to Section 31490.5.
25(e) Transferred members may receive retirement service credit
26for service other than that with the employer, for which the
27members were credited or were eligible to receive credit under the
28plan created by this article, by written application executed by the
29member and filed with the board on or before the election date.
30(f) The employer, the members who have elected to transfer,
31and transferred members shall make contributions to the retirement
32fund in accordance with the rates, and in the same manner, as
33prescribed under the contributory plan. The monthly contributions
34shall commence for the month next following the transfer date or
35that date 120 days after the election date, whichever is
earlier.
36(g) For purposes of calculating member contributions required
37under Section 31494.3, the entry age of a transferred member shall
38be that entry age as reflected in the retirement records maintained
39on behalf of the board.
P32 1(h) Failure of a member to deposit the contributions at the time
2and in the manner required by subdivision (a) of Section 31494.3
3shall result in the cancellation of his or her election to transfer.
4(i) Failure of a member to deposit the contributions at the time
5and in the manner required by subdivision (b) or (c) of Section
631494.3 shall result in the cancellation and forfeiture of his or her
7right to elect credit for other service under subdivision (e).
8(j) Prior to the transfer date, the rights to retirement, disability,
9
survivors, and death benefits of members who have made the
10election to transfer shall remain the same as defined and governed
11by this article. If those members die, terminate service, or make
12application for retirement prior to the transfer date, or fail to deposit
13all required contributions as required by Section 31494.3, all
14member contributions and regular interest shall be refunded to the
15member or member’s survivor.
16(k) Notwithstanding any other provision contained in this section
17or Section 31494.3, in the event of the death of a member who has
18elected to transfer prior to the transfer date, the spouse of the
19member, or the minor children of the member if no spouse survives
20the member, may elect to pay the balance of contributions required
21by Section 31494.3, and if the contributions are deposited in the
22retirement fund within 120 days after the death of the member, the
23spouse of the member, or if no spouse survives the member, the
24minor
children of the member, shall be entitled to rights and
25benefits as if the deceased member had deposited all contributions
26required by Section 31494.3.
27(l) Prior to the transfer date, the rights to retirement, disability,
28survivors, and death benefits of members who have made the
29election to transfer shall remain the same as defined and governed
30by this article. If those members die, terminate service, or make
31application for retirement prior to the transfer date, all member
32contributions and regular interest shall be refunded to the member
33or the member’s survivor.
34(m) This section shall be operative at such time or times as may
35be mutually agreed to in memoranda of understanding executed
36by the employer and employee representatives if the board of
37supervisors adopts, by majority vote, a resolution declaring that
38the section shall be
operative.
Section 31800 of the Government Code is amended
40to read:
(a) Except as provided in subdivision (b), the provisions
2of this article shall be applicable to any member who is subject to
3the federal old age and survivors insurance provisions of the federal
4Social Security Act, when the governing board of the county or
5district in which the member is employed adopts by majority vote
6a resolution providing that this article shall be applicable to all
7members in such county or district who are subject to the federal
8system. The provisions of this article shall become fully effective
9and operative on the date specified in such resolution; provided,
10however, such resolution shall have received prior approval by
11majority affirmative vote of eligible members employed by the
12county or district in a referendum conducted in accordance with
13the provisions of
Article 2 of Chapter 2 of Part 4 of Division 5 of
14Title 2 of this code. Nothing in this article shall be construed as
15negating or in any way affecting the validity of a referendum vote
16conducted prior to the enactment of this article, whereby a majority
17of members employed by a county or district voted in favor of
18federal old age and survivors insurance coverage on a purely
19additive or supplemental basis.
20(b) Notwithstanding subdivision (a), this article shall not be
21applied to any member or to the service, contributions, or benefits
22of any member that, on or after January 1, 2013, is subject to the
23provisions of the California Public Employees’ Pension Reform
24Act of 2013. Nothing herein shall preclude a member who is
25subject to the California Public Employees’ Pension Reform Act
26of 2013 and whose position is included in an agreement between
27the state and federal government for coverage under the old age
28and survivors insurance provisions of
the federal Social Security
29Act from also being subject to that federal system as a
30supplementation system under which the social security benefits
31shall be in addition to unintegrated retirement benefits.
Section 31808 of the Government Code is amended
33to read:
(a) Except as provided in subdivision (c), in any county
35or district subject to the provisions of Section 31676.1, 31676.11,
3631676.13, or 31676.14, the retirement allowance payable for
37retirement service rendered prior to the effective date of the
38resolution mentioned in Section 31800 shall be computed in
39accordance with the provisions of Section 31676.1, 31676.11,
4031676.13, or 31676.14, whichever is applicable. Except as provided
P34 1in subdivision (b), the retirement allowance with respect to service
2performed after May 31, 1957, shall equal the total of the
3following:
4(1) The fraction of one-ninetieth of the first three hundred fifty
5dollars ($350) monthly of the member’s final compensation set
6forth in the table appearing in
Section 31676.1, 31676.11,
731676.13, or 31676.14, whichever is applicable, in the column
8applicable to the member’s age at retirement taken to the preceding
9completed quarter year multiplied by the number of years of
10creditable service as provided therein.
11(2) The fraction of one-sixtieth of any remaining portion of the
12member’s final compensation set forth in the table appearing in
13Section 31676.1, 31676.11, 31676.13, or 31676.14, whichever is
14applicable, in the column applicable to the member’s age at
15retirement taken to the preceding completed quarter year multiplied
16by the number of years of creditable service.
17(b) With respect to persons who become members of a county
18retirement system after the effective date of the amendments to
19this section enacted at the 1979-80 Regular Session, the retirement
20allowance shall equal the following:
21(1) The fraction of one-ninetieth of the first one thousand fifty
22dollars ($1,050) monthly of the member’s final compensation set
23forth in the table appearing in Section 31676.1, 31676.11,
2431676.13, or 31676.14, whichever is applicable, in the column
25applicable to the member’s age at retirement taken to the preceding
26completed quarter year multiplied by the number of years of
27creditable service as provided therein.
28(2) The fraction of one-sixtieth of any remaining portion of the
29member’s final compensation set forth in the table appearing in
30Section 31676.1, 31676.11, 31676.13, or 31676.14, whichever is
31applicable, in the column applicable to the member’s age at
32retirement taken to the preceding completed quarter year multiplied
33by the number of years of creditable service.
34(3) This subdivision may be made applicable in
any county of
35over six million population on the first day of the month after the
36board of supervisors of such county adopts by majority vote a
37resolution providing that this subdivision shall become applicable
38in such county.
39(c) This section shall not apply to the retirement allowance of
40a person who becomes a member of a county retirement system
P35 1under a benefit plan established pursuant to Section 7522.20 or
27522.25.
Section 31812 of the Government Code is amended
4to read:
(a) Except as provided in subdivision (c), each member
6shall continue to contribute as provided for in Article 6
7(commencing with Section 31620) or (in case of those members
8defined in Sections 31470.2, 31470.4, and 31470.6) Article 6.8
9(commencing with Section 31639) of this chapter less an amount
10equal to one-third of that portion of such contribution which is
11payable with respect to the first three hundred fifty dollars ($350)
12monthly wage, or in counties where the board of supervisors
13pursuant to subdivision (b) of Section 31808.6 elects to compute
14the retirement allowance of safety members according to the
15provisions of Section 31664, each safety member shall make
16contributions as provided for in Article 6.8 of this chapter with
17respect to all of his or her monthly wage.
18(b) (1) With respect to persons who become members of a
19county retirement system after the effective date of the amendments
20to this section enacted at the 1979-80 Regular Session, each
21member shall contribute as provided for in Article 6 (commencing
22with Section 31620) or (in case of those members defined in
23Sections 31470.2, 31470.4, and 31470.6) Article 6.8 (commencing
24with Section 31639) of this chapter less an amount equal to
25one-third of that portion of such contribution which is payable
26with respect to the first one thousand fifty dollars ($1,050) monthly
27wage, or in counties where the board of supervisors pursuant to
28subdivision (b) of Section 31808.6 elects to compute the retirement
29allowance of safety members according to the provisions of Section
3031664, each safety member shall make contributions as provided
31for in Article 6.8 of this chapter with respect to all of his or her
32monthly wage.
33(2) This subdivision may be made applicable in any county of
34over six million population on the first day of the month after the
35board of supervisors of such county adopts by majority vote a
36resolution providing that this subdivision shall become applicable
37in such county.
38(c) This section shall not apply to the retirement allowance of
39a person who becomes a member of a county retirement system
P36 1under a benefit plan established pursuant to Section 7522.20 or
27522.25.
This act is an urgency statute necessary for the
4immediate preservation of the public peace, health, or safety within
5the meaning of Article IV of the Constitution and shall go into
6immediate effect. The facts constituting the necessity are:
7In order to address technical problems and avoid costly and
8unnecessary changes to retirement systems in implementing the
9California Public Employees’ Pension Reform Act of 2013
10(Chapter 296 of the Statutes of 2012), it is necessary for this act
11to take effect immediately.
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