BILL NUMBER: SB 13 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY SEPTEMBER 11, 2013
AMENDED IN ASSEMBLY SEPTEMBER 6, 2013
AMENDED IN ASSEMBLY SEPTEMBER 3, 2013
AMENDED IN SENATE FEBRUARY 6, 2013
INTRODUCED BY Senator Beall
DECEMBER 3, 2012
An act to amend Sections 7522.02, 7522.04, 7522.10, 7522.25,
7522.30, 7522.32, 7522.34, 7522.40, 7522.43, 7522.56, 7522.72,
7522.74, 20683.2, 21400, 31494.1, 31800, 31808, and 31812 of, and to
repeal Section 7522.66 of, the Government Code, relating to public
employees' retirement, and declaring the urgency thereof, to take
effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
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. The bill would also except from PEPRA public
employees whose collective bargaining rights are subject to specified
provisions of federal law until a specified federal district court
decision on certification 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. 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
state employees or imposed on nonrepresented state
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. 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.
PERL requires that savings realized from specified employee
contribution increases be allocated, upon appropriation by the
Legislature, to any unfunded liability.
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, 2019, to require that its member
employees pay up to certain percentages of the normal cost of
benefits, depending on employment classification, as specified.
The bill would except savings realized by the California State
University as a result of increased employee contribution rates from
allocation to unfunded liability and would make a statement of intent
in this regard.
(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:
SECTION 1. The Legislature finds and declares that this act
clarifies the California Public Employees' Pension Reform Act of
2013, is declaratory of existing law, and is intended to apply
concurrently with the initial operation of that act.
SEC. 2. Section 7522.02 of the Government Code is amended to read:
7522.02. (a) (1) Notwithstanding any other law, except as
provided in this article, on and after January 1, 2013, this article
shall apply to all state and local public retirement systems and to
their participating employers, including the Public Employees'
Retirement System, the State Teachers' Retirement System, the
Legislators' Retirement System, the Judges' Retirement System, the
Judges' Retirement System II, county and district retirement systems
created pursuant to the County Employees Retirement Law of 1937,
independent public retirement systems, and to individual retirement
plans offered by public employers. However, this article shall be
subject to the Internal Revenue Code and Section 17 of Article XVI of
the California Constitution. The administration of the requirements
of this article shall comply with applicable provisions of the
Internal Revenue Code and the Revenue and Taxation Code.
(2) Notwithstanding paragraph (1), this article shall not apply to
the entities described in Section 9 of Article IX of, and Sections 4
and 5 of Article XI of, the California Constitution, except to the
extent that these entities continue to be participating employers in
any retirement system governed by state statute. Accordingly, any
retirement plan approved before January 1, 2013, by the voters of any
entity excluded from coverage by this section shall not be affected
by this article.
(3) (A) Notwithstanding paragraph (1), this article shall not
apply to a public employee whose interests are protected under
Section 5333(b) of Title 49 of the United States Code until a federal
district court rules that the United States Secretary of Labor, or
his or her designee, erred in determining that the application of
this article precludes certification under that section, or until
January 1, 2015, whichever is sooner.
(B) If a federal district court upholds the determination of the
United States Secretary of Labor, or his or her designee, that
application of this article precludes him or her from providing a
certification under Section 5333(b) of Title 49 of the United States
Code, this article shall not apply to a public employee specified in
subparagraph (A).
(4) Notwithstanding paragraph (1), this article shall not apply to
a multiemployer plan authorized by Section 302(c)(5) of the
Taft-Hartley Act (29 U.S.C. Sec. 186(c)(5)) if the public employer
began participation in that plan prior to January 1, 2013, and the
plan is regulated by the Employee Retirement Income Security Act of
1974.
(b) The benefit plan required by this article shall apply to
public employees who are new members as defined in Section 7522.04.
(c) (1) Individuals who were employed by any public employer
before January 1, 2013, and who became employed by a subsequent
public employer for the first time on or after January 1, 2013, shall
be subject to the retirement plan that would have been available to
employees of the subsequent employer who were first employed by the
subsequent employer on or before December 31, 2012, if the individual
was subject to concurrent membership for which creditable service
was performed in the previous six months or reciprocity established
under any of the following provisions:
(A) Article 5 (commencing with Section 20350) of Chapter 3 of Part
3 of Division 5 of Title 2.
(B) Chapter 3 (commencing with Section 31450) of Part 3 of
Division 4 of Title 3.
(C) Any agreement between public retirement systems to provide
reciprocity to members of the systems.
(D) Section 22115.2 of the Education Code.
(2) An individual who was employed before January 1, 2013, and
who, without a separation from employment, changed employment
positions and became subject to a different defined benefit plan in a
different public retirement system offered by his or her employer
shall be subject to that defined benefit plan as it would have been
available to employees who were first employed on or before December
31, 2012.
(d) If a public employer, before January 1, 2013, offers a defined
benefit pension plan that provides a defined benefit formula with a
lower benefit factor at normal retirement age and results in a lower
normal cost than the defined benefit formula required by this
article, that employer may continue to offer that defined benefit
formula instead of the defined benefit formula required by this
article, and shall not be subject to the requirements of Section
7522.10 for pensionable compensation subject to that formula.
However, if the employer adopts a new defined benefit formula on or
after January 1, 2013, that formula must conform to the requirements
of this article or must be determined and certified by the retirement
system's chief actuary and the retirement board to have no greater
risk and no greater cost to the employer than the defined benefit
formula required by this article and must be approved by the
Legislature. New members of the defined benefit plan may only
participate in the lower cost defined benefit formula that was in
place before January 1, 2013, or a defined benefit formula that
conforms to the requirements of this article or is approved by the
Legislature as provided in this subdivision.
(e) If a public employer, before January 1, 2013, offers a
retirement benefit plan that consists solely of a defined
contribution plan, that employer may continue to offer that plan
instead of the defined benefit pension plan required by this article.
However, if the employer adopts a new defined benefit pension plan
or defined benefit formula on or after January 1, 2013, that plan or
formula must conform to the requirements of this article or must 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 required by this
article and must be approved by the Legislature. 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
this article. This subdivision shall not 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,
whether or not the employer offered a defined contribution plan prior
to that date.
(f) The Judges' Retirement System and the Judges' Retirement
System II shall not be required to adopt the defined benefit formula
required by Section 7522.20 or 7522.25 or the compensation
limitations defined in Section 7522.10.
(g) This article shall not be construed to provide membership in
any public retirement system for an individual who would not
otherwise be eligible for membership under that system's applicable
rules or laws.
(h) On and after January 1, 2013, each public retirement system
shall modify its plan or plans to comply with the requirements of
this article and may adopt regulations or resolutions for this
purpose.
SEC. 3. Section 7522.04 of the Government Code is amended to read:
7522.04. For the purposes of this article:
(a) "Defined benefit formula" means a formula used by the
retirement system to determine a retirement benefit based on age,
years of service, and pensionable compensation earned by an employee
up to the limit defined in Section 7522.10.
(b) "Employee contributions" means the contributions to a public
retirement system required to be paid by a member of the system, as
fixed by law, regulation, administrative action, contract, contract
amendment, or other written agreement recognized by the retirement
system as establishing an employee contribution.
(c) "Federal system" means the old age, survivors, disability, and
health insurance provisions of the federal Social Security Act (42
U.S.C. Sec. 301 et seq.).
(d) "Member" means a public employee who is a member of any type
of a public retirement system or plan.
(e) "New employee" means either of the following:
(1) An employee, including one who is elected or appointed, of a
public employer who is employed for the first time by any public
employer on or after January 1, 2013, and who was not employed by any
other public employer prior to that date.
(2) An employee, including one who is elected or appointed, of a
public employer who is employed for the first time by any public
employer on or after January 1, 2013, and who was employed by another
public employer prior to that date, but who was not subject to
reciprocity under subdivision (c) of Section 7522.02.
(f) "New member" means any of the following:
(1) An individual who becomes a member of any public retirement
system for the first time on or after January 1, 2013, and who was
not a member of any other public retirement system prior to that
date.
(2) An individual who becomes a member of a public retirement
system for the first time on or after January 1, 2013, and who was a
member of another public retirement system prior to that date, but
who was not subject to reciprocity under subdivision (c) of Section
7522.02.
(3) An individual who was an active member in a retirement system
and who, after a break in service of more than six months, returned
to active membership in that system with a new employer. For purposes
of this subdivision, a change in employment between state entities
or from one school employer to another shall not be considered as
service with a new employer.
(g) "Normal cost" means the portion of the present value of
projected benefits under the defined benefit that is attributable to
the current year of service, as determined by the public retirement
system's actuary according to the most recently completed valuation.
For the purpose of determining normal cost, the system's actuary may
use a single rate of contribution or an age-based rate of
contribution as is applicable to that retirement system.
(h) "Public employee" means an officer, including one who is
elected or appointed, or an employee of a public employer.
(i) "Public employer" means:
(1) The state and every state entity, including, but not limited
to, the Legislature, the judicial branch, including judicial
officers, and the California State University.
(2) Any political subdivision of the state, or agency or
instrumentality of the state or subdivision of the state, including,
but not limited to, a city, county, city and county, a charter city,
a charter county, school district, community college district, joint
powers authority, joint powers agency, and any public agency,
authority, board, commission, or district.
(3) Any charter school that elects or is required to participate
in a public retirement system.
(j) "Public retirement system" means any pension or retirement
system of a public employer, including, but not limited to, an
independent retirement plan offered by a public employer that the
public employer participates in or offers to its employees for the
purpose of providing retirement benefits, or a system of benefits for
public employees that is governed by Section 401(a) of Title 26 of
the United States Code.
SEC. 4. Section 7522.10 of the Government Code is amended to read:
7522.10. (a) On and after January 1, 2013, each public retirement
system shall modify its plan or plans to comply with the
requirements of this section for each public employer that
participates in the system.
(b) Whenever pensionable compensation, as defined in Section
7522.34, is used in the calculation of a benefit, the pensionable
compensation shall be subject to the limitations set forth in
subdivision (c).
(c) The pensionable compensation used to calculate the defined
benefit paid to a new member who retires from the system shall not
exceed the following applicable percentage of the contribution and
benefit base specified in Section 430(b) of Title 42 of the United
States Code on January 1, 2013:
(1) One hundred percent for a member whose service is included in
the federal system.
(2) One hundred twenty percent for a member whose service is not
included in the federal system.
(d) (1) The retirement system shall adjust the pensionable
compensation described in subdivision (c) based on the annual changes
to the Consumer Price Index for All Urban Consumers: U.S. City
Average, calculated by dividing the Consumer Price Index for All
Urban Consumers: U.S. City Average, for the month of September in the
calendar year preceding the adjustment by the Consumer Price Index
for All Urban Consumers: U.S. City Average, for the month of
September of the previous year rounded to the nearest thousandth. The
adjustment shall be effective annually on January 1, beginning in
2014.
(2) The Legislature reserves the right to modify the requirements
of this subdivision with regard to all public employees subject to
this section, except that the Legislature may not modify these
provisions in a manner that would result in a decrease in benefits
accrued prior to the effective date of the modification.
(e) A public employer shall not offer a defined benefit or any
combination of defined benefits, including a defined benefit offered
by a private provider, on compensation in excess of the limitation in
subdivision (c).
(f) (1) Subject to the limitation in subdivision (c) of Section
7522.42, a public employer may provide a contribution to a defined
contribution plan for compensation in excess of the limitation in
subdivision (c) provided the plan and the contribution meet the
requirements and limits of federal law.
(2) A public employee who receives an employer contribution to a
defined contribution plan shall not have a vested right to continue
receiving the employer contribution.
(g) Any employer contributions to any employee defined
contribution plan above the pensionable compensation limits in
subdivision (c) shall not exceed the employer's contribution rate, as
a percentage of pay, required to fund the defined benefit plan for
income subject to the limitation in subdivision (c) of Section
7522.42.
(h) The retirement system shall limit the pensionable compensation
used to calculate the contributions required of an employer or a new
member to the amount of compensation that would be used for
calculating a defined benefit as set forth in subdivision (c) or (d).
SEC. 5. Section 7522.25 of the Government Code is amended to read:
7522.25. (a) Each retirement system that offers a defined benefit
plan for safety members of the system shall use one or more of the
defined benefit formulas prescribed by this section. A member may
retire for service under any of the formulas in this section after
five years of service and upon reaching 50 years of age.
(b) The Basic Safety Plan shall provide a pension at retirement
for service equal to the percentage of the member's final
compensation set forth opposite the member's age at retirement, taken
to the preceding quarter year, in the following table, multiplied by
the number of years of service in the system as a safety member.
Age at Retirement Fraction
50 ............................. 1.426
50 1/4.......................... 1.447
50 1/2.......................... 1.467
50 3/4.......................... 1.488
51 ............................. 1.508
51 1/4.......................... 1.529
51 1/2.......................... 1.549
51 3/4.......................... 1.570
52 ............................. 1.590
52 1/4.......................... 1.611
52 1/2.......................... 1.631
52 3/4.......................... 1.652
53 ............................. 1.672
53 1/4.......................... 1.693
53 1/2.......................... 1.713
53 3/4.......................... 1.734
54 ............................. 1.754
54 1/4.......................... 1.775
54 1/2.......................... 1.795
54 3/4.......................... 1.816
55 ............................. 1.836
55 1/4.......................... 1.857
55 1/2.......................... 1.877
55 3/4.......................... 1.898
56 ............................. 1.918
56 1/4.......................... 1.939
56 1/2.......................... 1.959
56 3/4.......................... 1.980
57 and over .................... 2.000
(c) The Safety Option Plan One shall provide a pension at
retirement for service equal to the percentage of the member's final
compensation set forth opposite the member's age at retirement, taken
to the preceding quarter year, in the following table, multiplied by
the number of years of service in the system as a safety member.
Age at Retirement Fraction
50 ............................... 2.000
50 1/4............................ 2.018
50 1/2............................ 2.036
50 3/4............................ 2.054
51 ............................... 2.071
51 1/4............................ 2.089
51 1/2............................ 2.107
51 3/4............................ 2.125
52 ............................... 2.143
52 1/4............................ 2.161
52 1/2............................ 2.179
52 3/4............................ 2.196
53 ............................... 2.214
53 1/4............................ 2.232
53 1/2............................ 2.250
53 3/4............................ 2.268
54 ............................... 2.286
54 1/4............................ 2.304
54 1/2............................ 2.321
54 3/4............................ 2.339
55................................ 2.357
55 1/4............................ 2.375
55 1/2............................ 2.393
55 3/4............................ 2.411
56................................ 2.429
56 1/4............................ 2.446
56 1/2............................ 2.464
56 3/4............................ 2.482
57 and over....................... 2.500
(d) The Safety Option Plan Two shall provide a pension at
retirement for service equal to the percentage of the member's final
compensation set forth opposite the member's age at retirement, taken
to the preceding quarter year, in the following table, multiplied by
the number of years of service in the system as a safety member.
Age at Retirement Fraction
50 ............................. 2.000
50 1/4.......................... 2.025
50 1/2.......................... 2.050
50 3/4.......................... 2.075
51 ............................. 2.100
51 1/4.......................... 2.125
51 1/2.......................... 2.150
51 3/4.......................... 2.175
52 ............................. 2.200
52 1/4.......................... 2.225
52 1/2.......................... 2.250
52 3/4.......................... 2.275
53 ............................. 2.300
53 1/4.......................... 2.325
53 1/2.......................... 2.350
53 3/4.......................... 2.375
54 ............................. 2.400
54 1/4.......................... 2.425
54 1/2.......................... 2.450
54 3/4.......................... 2.475
55 ............................. 2.500
55 1/4.......................... 2.525
55 1/2.......................... 2.550
55 3/4.......................... 2.575
56 ............................. 2.600
56 1/4.......................... 2.625
56 1/2.......................... 2.650
56 3/4.......................... 2.675
57 and over .................... 2.700
(e) On and after January 1, 2013, an employer shall offer one or
more of the safety formulas prescribed by this section to new members
who are safety employees. The formula offered shall be the formula
that is closest to, and provides a lower benefit at 55 years of age
than, the formula provided to members in the same retirement
classification offered by the employer on December 31, 2012.
(f) On and after January 1, 2013, an employer and its employees
subject to Safety Option Plan One or Safety Option Plan Two may agree
in a memorandum of understanding to be subject to Safety Option Plan
One or the Basic Safety Plan, subject to the following:
(1) The lower plan shall apply to members first employed on or
after the effective date of the lower plan, and shall be agreed to in
a memorandum of understanding that has been collectively bargained
in accordance with applicable laws.
(2) A retirement plan contract amendment with a public retirement
system to alter a retirement formula pursuant to this subdivision
shall not be implemented by the employer in the absence of a
memorandum of understanding that has been collectively bargained in
accordance with applicable laws.
(3) An employer shall not use impasse procedures to impose the
lower plan.
(4) An employer shall not provide a different defined benefit for
nonrepresented, managerial, or supervisory employees than the
employer provides for other public employees, including represented
employees, of the same employer who are in the same membership
classifications.
(g) Pensionable compensation used to calculate the defined benefit
shall be limited as described in Section 7522.10.
SEC. 6. Section 7522.30 of the Government Code is amended to read:
7522.30. (a) This section shall apply to all public employers and
to all new members. Equal sharing of normal costs between public
employers and public employees shall be the standard. The standard
shall be that employees pay at least 50 percent of normal costs and
that employers not pay any of the required employee contribution.
(b) The "normal cost rate" shall mean the annual actuarially
determined normal cost for the plan of retirement benefits provided
to the new member and shall be established based on the actuarial
assumptions used to determine the liabilities and costs as part of
the annual actuarial valuation. The plan of retirement benefits shall
include any elements that would 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 as
determined by the public retirement system.
(c) New members employed by those public employers defined in
paragraphs (2) and (3) of subdivision (i) of Section 7522.04, the
Legislature, the California State University, and the judicial branch
who participate in a defined benefit plan shall have an initial
contribution rate of at least 50 percent of the normal cost rate for
that defined benefit plan, rounded to the nearest quarter of 1
percent, unless a greater contribution rate has been agreed to
pursuant to the requirements in subdivision (e). This contribution
shall not be paid by the employer on the employee's behalf.
(d) Notwithstanding subdivision (c), once established, the
employee contribution rate described in subdivision (c) shall not be
adjusted on account of a change to the normal cost rate unless the
normal cost rate increases or decreases by more than 1 percent of
payroll above or below the normal cost rate in effect at the time the
employee contribution rate is first established or, if later, the
normal cost rate in effect at the time of the last adjustment to the
employee contribution rate under this section.
(e) Notwithstanding subdivision (c), employee contributions may be
more than one-half of the normal cost rate if the increase has been
agreed to through the collective bargaining process, subject to the
following conditions:
(1) The employer shall not contribute at a greater rate to the
plan for nonrepresented, managerial, or supervisory employees than
the employer contributes for other public employees, including
represented employees, of the same employer who are in related
retirement membership classifications.
(2) The employer shall not increase an employee contribution rate
in the absence of a memorandum of understanding that has been
collectively bargained in accordance with applicable laws.
(3) The employer shall not use impasse procedures to increase an
employee contribution rate above the rate required by this section.
(f) If the terms of a contract, including a memorandum of
understanding, between a public employer and its public employees,
that is in effect on January 1, 2013, would be impaired by any
provision of this section, that provision shall not apply to the
public employer and public employees subject to that contract until
the expiration of that contract. A renewal, amendment, or any other
extension of that contract shall be subject to the requirements of
this section.
SEC. 7. Section 7522.32 of the Government Code is amended to read:
7522.32. For the purposes of determining a retirement benefit to
be paid to a new member of a public retirement system, the following
shall apply:
(a) Final compensation shall mean the highest average annual
pensionable compensation earned by the member during a period of at
least 36 consecutive months, or at least three consecutive school
years if applicable, immediately preceding his or her retirement or
last separation from service if earlier, or during any other period
of at least 36 consecutive months, or at least three consecutive
school years if applicable, during the member's applicable service
that the member designates on the application for retirement.
(b) On or after January 1, 2013, an employer shall not modify a
benefit plan to permit a calculation of final compensation on a basis
of less than the average annual compensation earned by the member
during a consecutive 36-month period, or three school years if
applicable, for members who have been subject to at least a 36-month
or three-school-year calculation prior to that date.
SEC. 8. Section 7522.34 of the Government Code is amended to read:
7522.34. (a) "Pensionable compensation" of a new member of any
public retirement system means the normal monthly rate of pay or base
pay of the member paid in cash to similarly situated members of the
same group or class of employment for services rendered on a
full-time basis during normal working hours, pursuant to publicly
available pay schedules, subject to the limitations of subdivision
(c).
(b) Compensation that has been deferred shall be deemed
pensionable compensation when earned rather than when paid.
(c) Notwithstanding any other law, "pensionable compensation" of a
new member does not include the following:
(1) Any compensation determined by the board to have been paid
to increase a member's retirement benefit under that system.
(2) Compensation that had previously been provided in kind to the
member by the employer or paid directly by the employer to a third
party other than the retirement system for the benefit of the member
and which was converted to and received by the member in the form of
a cash payment.
(3) Any one-time or ad hoc payments made to a member.
(4) Severance or any other payment that is granted or awarded to a
member in connection with or in anticipation of a separation from
employment, but is received by the member while employed.
(5) Payments for unused vacation, annual leave, personal leave,
sick leave, or compensatory time off, however denominated, whether
paid in a lump sum or otherwise, regardless of when reported or paid.
(6) Payments for additional services rendered outside of normal
working hours, whether paid in a lump sum or otherwise.
(7) Any employer-provided allowance, reimbursement, or payment,
including, but not limited to, one made for housing, vehicle, or
uniforms.
(8) Compensation for overtime work, other than as defined in
Section 207(k) of Title 29 of the United States Code.
(9) Employer contributions to deferred compensation or defined
contribution plans.
(10) Any bonus paid in addition to the compensation described in
subdivision (a).
(11) Any other form of compensation a public retirement board
determines is inconsistent with the requirements of subdivision (a).
(12) Any other form of compensation a public retirement board
determines should not be pensionable compensation.
(13) (A) Any form of compensation identified that has been agreed
to be nonpensionable pursuant to a memorandum of understanding for
state employees bound by the memorandum of understanding.
The state employer subject to the memorandum of
understanding shall inform the retirement system of the excluded
compensation and provide a copy of the memorandum of understanding.
(B) The state employer may determine if excluded
compensation identified in subparagraph (A) shall apply to
nonrepresented state employees who are aligned with
state employees subject to the memorandum of understanding
described in subparagraph (A). The state employer shall
inform the retirement system of the exclusion of this compensation
and provide a copy of the public pay schedule detailing the
exclusion.
SEC. 9. Section 7522.40 of the Government Code is amended to read:
7522.40. (a) A public employer shall not provide to a public
employee who is elected or appointed, a trustee, excluded from
collective bargaining, exempt from civil service, or a manager any
vesting schedule for the employer contribution payable for
postretirement health benefits that is more advantageous than that
provided generally to other public employees, including represented
employees, of the same public employer who are in related retirement
membership classifications.
(b) This section shall not require an employer to change the
vesting schedule for the employer contribution payable for
postretirement health benefits of any public employee who was subject
to a specific vesting schedule pursuant to statute, collective
bargaining agreement , or resolution for these employer
contributions prior to January 1, 2013, or who had a contractual
agreement with an employer prior to January 1, 2013, for a specific
vesting schedule for these employer contributions.
SEC. 10. Section 7522.43 of the Government Code is amended to
read:
7522.43. (a) A public employer shall not offer a plan of
replacement benefits for members and any survivors or beneficiaries
whose retirement benefits are limited by Section 415 of Title 26 of
the United States Code. This section shall apply to new members.
(b) A public retirement system may continue to administer a plan
of replacement benefits for employees first hired prior to January 1,
2013.
(c) A public employer that does not offer a plan of replacement
benefits prior to January 1, 2013, shall not offer such a plan for
any employee on or after January 1, 2013.
(d) A public employer that offers a plan of replacement benefits
prior to January 1, 2013, shall not offer such a plan to any
additional employee group to which the plan was not provided prior to
January 1, 2013.
SEC. 11. Section 7522.56 of the Government Code is amended to
read:
7522.56. (a) This section shall apply to any person who is
receiving a pension benefit from a public retirement system and shall
supersede any other provision in conflict with this section.
(b) A retired person shall not serve, be employed by, or be
employed through a contract directly by, a public employer in the
same public retirement system from which the retiree receives the
benefit without reinstatement from retirement, except as permitted by
this section.
(c) A person who retires from a public employer may serve without
reinstatement from retirement or loss or interruption of benefits
provided by the retirement system upon appointment by the appointing
power of a public employer either during an emergency to prevent
stoppage of public business or because the retired person has skills
needed to perform work of limited duration.
(d) Appointments of the person authorized under this section shall
not exceed a total for all employers in that public retirement
system of 960 hours or other equivalent limit, in a calendar or
fiscal year, depending on the administrator of the system. The rate
of pay for the employment shall not be less than the minimum, nor
exceed the maximum, paid by the employer to other employees
performing comparable duties, divided by 173.333 to equal an hourly
rate. A retired person whose employment without reinstatement is
authorized by this section shall acquire no service credit or
retirement rights under this section with respect to the employment
unless he or she reinstates from retirement.
(e) (1) Notwithstanding subdivision (c), any retired person shall
not be eligible to serve or be employed by a public employer if,
during the 12-month period prior to an appointment described in this
section, the retired person received any unemployment insurance
compensation arising out of prior employment subject to this section
with a public employer. A retiree shall certify in writing to the
employer upon accepting an offer of employment that he or she is in
compliance with this requirement.
(2) A retired person who accepts an appointment after receiving
unemployment insurance compensation as described in this subdivision
shall terminate that employment on the last day of the current pay
period and shall not be eligible for reappointment subject to this
section for a period of 12 months following the last day of
employment.
(f) A retired person shall not be eligible to be employed pursuant
to this section for a period of 180 days following the date of
retirement unless he or she meets one of the following conditions:
(1) The employer certifies the nature of the employment and that
the appointment is necessary to fill a critically needed position
before 180 days have passed and the appointment has been approved by
the governing body of the employer in a public meeting. The
appointment may not be placed on a consent calendar.
(2) 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. The
department may establish a process to delegate appointing authority
to individual state agencies, but shall audit the process to
determine if abuses of the system occur. If necessary, the department
may assume an agency's appointing authority for retired workers and
may charge the department an appropriate amount for administering
that authority.
(3) The retiree is eligible to participate in the Faculty Early
Retirement Program pursuant to a collective bargaining agreement with
the California State University that existed prior to January 1,
2013, or has been included in subsequent agreements.
(4) The retiree is a public safety officer or firefighter hired to
perform a function or functions regularly performed by a public
safety officer or firefighter.
(g) A retired person who accepted a retirement incentive upon
retirement shall not be eligible to be employed pursuant to this
section for a period of 180 days following the date of retirement and
subdivision (f) shall not apply.
(h) This section shall not apply to a person who is retired from
the State Teachers' Retirement System, and who is subject to Section
24214, 24214.5, or 26812 of the Education Code.
(i) This section shall not apply to (1) a subordinate judicial
officer whose position, upon retirement, is converted to a judgeship
pursuant to Section 69615, and he or she returns to work in the
converted position, and the employer is a trial court, or (2) a
retiree who takes office as a judge of a court of record pursuant to
Article VI of the California Constitution or a retiree of the Judges'
Retirement System or the Judges' Retirement System II who is
appointed to serve as a retired judge.
SEC. 12. Section 7522.66 of the Government Code is repealed.
SEC. 13. Section 7522.72 of the Government Code is amended to
read:
7522.72. (a) This section shall apply to a public employee first
employed by a public employer or first elected or appointed to an
office before January 1, 2013, and, on and after that date, Section
7522.70 shall not apply.
(b) (1) If a public employee is convicted by a state or federal
trial court of any felony under state or federal law 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, he or she shall forfeit all accrued rights and benefits in
any public retirement system in which he or she is a member to the
extent provided in subdivision (c) and shall not accrue further
benefits in that public retirement system, effective on the date of
the conviction.
(2) If a public employee who has contact with children as part of
his or her official duties is convicted of a felony that was
committed within the scope of his or her official duties against or
involving a child who he or she has contact with as part of his or
her official duties, he or she shall forfeit all accrued rights and
benefits in any public retirement system in which he or she is a
member to the extent provided in subdivision (c) and shall not accrue
further benefits in that public retirement system, effective on the
date of the conviction.
(c) (1) A public employee shall forfeit all the rights and
benefits earned or accrued from the earliest date of the commission
of any felony described in subdivision (b) to the forfeiture date,
inclusive. The rights and benefits shall remain forfeited
notwithstanding any reduction in sentence or expungement of the
conviction following the date of the public employee's conviction.
Rights and benefits attributable to service performed prior to the
date of the first commission of the felony for which the public
employee was convicted shall not be forfeited as a result of this
section.
(2) For purposes of this subdivision, "forfeiture date" means the
date of the conviction.
(d) (1) Any contributions to the public retirement system made by
the public employee described in subdivision (b) on or after the
earliest date of the commission of any felony described in
subdivision (b) shall be returned, without interest, to the public
employee upon the occurrence of a distribution event unless otherwise
ordered by a court or determined by the pension administrator.
(2) Any funds returned to the public employee pursuant to
subdivision (d) shall be disbursed by electronic funds transfer to an
account of the public employee, in a manner conforming with the
requirements of the Internal Revenue Code, and the public retirement
system shall notify the court and the district attorney at least
three business days before that disbursement of funds.
(3) For the purposes of this subdivision, a "distribution event"
means any of the following:
(A) Separation from employment.
(B) Death of the member.
(C) Retirement of the member.
(e) (1) Upon conviction, a public employee as described in
subdivision (b) and the prosecuting agency shall notify the public
employer who employed the public employee at the time of the
commission of the felony within 60 days of the felony conviction of
all of the following information:
(A) The date of conviction.
(B) The date of the first known commission of the felony.
(2) The operation of this section is not dependent upon the
performance of the notification obligations specified in this
subdivision.
(f) The public employer that employs or employed a public employee
described in subdivision (b) and that public employee shall each
notify the public retirement system in which the public employee is a
member of that public employee's conviction within 90 days of the
conviction. The operation of this section is not dependent upon the
performance of the notification obligations specified in this
subdivision.
(g) A public retirement system may assess a public employer a
reasonable amount to reimburse the cost of audit, adjustment, or
correction, if it determines that the public employer failed to
comply with this section.
(h) If a public employee's conviction is reversed and that
decision is final, the employee shall be entitled to do either of the
following:
(1) Recover the forfeited rights and benefits as adjusted for the
contributions received pursuant to subdivision (d).
(2) Redeposit those contributions and interest that would have
accrued during the forfeiture period, as determined by the system
actuary, and then recover the full amount of the forfeited rights and
benefits.
(i) The forfeiture of rights and benefits provided in this
section, with respect to judges, are in addition to and supplement
the forfeitures and other requirements provided in Section 75033.2,
75062, 75526, or 75563. If there is a conflict between this section
and Section 75033.2, 75062, 75526, or 75563, the provisions that
result in the greatest forfeiture or provide the most stringent
procedural requirements to the claim of a judge shall apply.
(j) A public employee first employed by a public employer or first
elected or appointed to an office on or after January 1, 2013, shall
be subject to Section 7522.74.
SEC. 14. Section 7522.74 of the Government Code is amended to
read:
7522.74. (a) This section shall apply to a public employee first
employed by a public employer or first elected or appointed to an
office on or after January 1, 2013, and on and after that date,
Section 7522.70 shall not apply.
(b) (1) If a public employee is convicted by a state or federal
trial court of any felony under state or federal law 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, he or she shall forfeit all accrued rights and benefits in
any public retirement system in which he or she is a member to the
extent provided in subdivision (c) and shall not accrue further
benefits in that public retirement system, effective on the date of
the conviction.
(2) If a public employee who has contact with children as part of
his or her official duties is convicted of a felony that was
committed within the scope of his or her official duties against or
involving a child who he or she has contact with as part of his or
her official duties, he or she shall forfeit all accrued rights and
benefits in any public retirement system in which he or she is a
member to the extent provided in subdivision (c) and shall not accrue
further benefits in that public retirement system, effective on the
date of the conviction.
(c) (1) A public employee shall forfeit all the rights and
benefits earned or accrued from the earliest date of the commission
of any felony described in subdivision (b) to the forfeiture date,
inclusive. The rights and benefits shall remain forfeited
notwithstanding any reduction in sentence or expungement of the
conviction following the date of the public employee's conviction.
Rights and benefits attributable to service performed prior to the
date of the first commission of the felony for which the public
employee was convicted shall not be forfeited as a result of this
section.
(2) For purposes of this subdivision, "forfeiture date" means the
date of the conviction.
(d) (1) Any contributions to the public retirement system made by
the public employee described in subdivision (b) on or after the
earliest date of the commission of any felony described in
subdivision (b) shall be returned, without interest, to the public
employee upon the occurrence of a distribution event unless otherwise
ordered by a court or determined by the pension administrator.
(2) Any funds returned to the public employee pursuant to
subdivision (d) shall be disbursed by electronic funds transfer to an
account of the public employee, in a manner conforming with the
requirements of the Internal Revenue Code, and the public retirement
system shall notify the court and the district attorney at least
three business days before that disbursement of funds.
(3) For the purposes of this subdivision, a "distribution event"
means any of the following:
(A) Separation from employment.
(B) Death of the member.
(C) Retirement of the member.
(e) (1) Upon conviction, a public employee as described in
subdivision (b) and the prosecuting agency shall notify the public
employer who employed the public employee at the time of the
commission of the felony within 60 days of the felony conviction of
all of the following information:
(A) The date of conviction.
(B) The date of the first known commission of the felony.
(2) The operation of this section is not dependent upon the
performance of the notification obligations specified in this
subdivision.
(f) The public employer that employs or employed a public employee
described in subdivision (b) and that public employee shall each
notify the public retirement system in which the public employee is a
member of that public employee's conviction within 90 days of the
conviction. The operation of this section is not dependent upon the
performance of the notification obligations specified in this
subdivision.
(g) A public retirement system may assess a public employer a
reasonable amount to reimburse the cost of audit, adjustment, or
correction, if it determines that the public employer failed to
comply with this section.
(h) If a public employee's conviction is reversed and that
decision is final, the employee shall be entitled to do either of the
following:
(1) Recover the forfeited rights and benefits as adjusted for the
contributions received pursuant to subdivision (d).
(2) Redeposit those contributions and interest that would have
accrued during the forfeiture period, as determined by the system
actuary, and then recover the full amount of the forfeited rights and
benefits.
(i) The forfeiture of rights and benefits provided in this
section, with respect to judges, are in addition to and supplement
the forfeitures and other requirements provided in Section 75033.2,
75062, 75526, or 75563. If there is a conflict between this section
and Section 75033.2, 75062, 75526, or 75563, the provisions that
result in the greatest forfeiture or provide the most stringent
procedural requirements to the claim of a judge shall apply.
(j) A public employee first employed by a public employer or first
elected or appointed to an office before January 1, 2013, shall be
subject to Section 7522.72.
SEC. 15. Section 20683.2 of the Government Code is amended to
read:
20683.2. Equal sharing of normal costs between the state employer
and public employees shall be the standard. It shall be the standard
that employees pay at least 50 percent of normal costs and that
employers not pay any of the required employee contribution. Equal
sharing of normal costs is currently the standard for most state
employees.
(a) Notwithstanding any other section of this code, or other
provision of law in conflict with this section, except as provided in
Section 7522.30, normal contribution rates for defined benefit plans
for state employees of public employers as defined in paragraph (1)
of subdivision (i) of Section 7522.04, excluding the California State
University, which shall be subject to subdivision (b), shall be
determined as follows:
(1) Normal cost contribution rates shall increase as follows:
(A) The contribution rate for State Peace Officer/Firefighter
members in State Bargaining Unit 6 and for State Safety members in
State Bargaining Units 1, 3, 4, 7, 9, 10, 11, 14, 15, 17, 20, and 21
will increase by 1.0 percentage point on July 1, 2013, and will
increase by an additional 1.0 percentage point on July 1, 2014.
(B) The contribution rate for State Peace Officer/Firefighter
members in State Bargaining Units 7 and 8 will increase by 1.5
percentage points on July 1, 2013, and will increase by an additional
1.5 percentage points on July 1, 2014.
(C) The contribution rate for state industrial members in State
Bargaining Units 1, 3, 4, 6, 9, 10, 11, 14, 15, 17, and 20 will
increase by 1.0 percentage point on July 1, 2013.
(D) The contribution rate for state miscellaneous and industrial
members that have elected the Second Tier benefit formula will
increase by 1.5 percentage points annually starting July 1, 2013. The
final annual increase in the contribution rate shall be adjusted as
appropriate.
(E) The contribution rate for State Safety members in State
Bargaining Unit 2 and state miscellaneous members in State Bargaining
Unit 5 will increase by 1.0 percentage point on July 1, 2013.
(F) The contribution rate for Patrol members in State Bargaining
Unit 5 will increase by 1.5 percentage points on July 1, 2013.
(2) Consistent with paragraph (1), the normal rate of contribution
shall be adjusted accordingly for related state employees who are
exempted from the definition of "state employee," who are excluded
from collective bargaining, or who are officers or employees of the
executive, legislative, or judicial branch of state government who
are not members of the civil service.
(b) On and after January 1, 2018, 2019,
the California State University may require that members pay at
least 50 percent of the normal cost of benefits, provided that their
contribution shall be no more than 8 percent of pay for
miscellaneous members subject to Section 21354.1, no more than 11
percent of pay for safety members, and no more than 13 percent of pay
for peace officer/firefighter members.
(A) Before implementing any change pursuant to this paragraph, for
any represented employees, the employer shall complete the good
faith bargaining process as required by Chapter 12 (commencing with
Section 3560) of Division 4 of Title 1, including any impasse
procedures requiring mediation and factfinding.
(B) Nothing in this section shall preclude employees of the
California State University from agreeing to contribute more than the
costs described in this subdivision for any benefit.
(C) The Legislature authorizes to the California State University
to increase member contribution rates pursuant to this paragraph,
while reserving the right to adjust contribution rates under Section
20689 of the Government Code.
(c) Calculation of employee contribution rate increases pursuant
to this section shall be based upon compensation calculations
established pursuant to Sections 20671 to 20694, inclusive.
(d) In addition to the actuarially required contribution, savings
realized by the state employer , excluding savings realized by
the California State University, as a result of the employee
contribution rate increases required or authorized by this
section shall be allocated to any unfunded liability, subject to
appropriation in the annual Budget Act. It is the intent of the
Legislature that any savings realized from a change in contribution
rates at the California State University pursuant to this section be
retained by the university.
SEC. 16. Section 21400 of the Government Code is amended to read:
21400. (a) A safety member who retires on or after January 1,
2013, for industrial disability shall receive a disability retirement
benefit equal to the greater of the following:
(1) Fifty percent of his or her final compensation, plus an
annuity purchased with his or her accumulated additional
contributions, if any.
(2) A service retirement allowance, if he or she is qualified for
service retirement.
(3) An actuarially reduced factor, as determined by the actuary,
for each quarter year that his or her service age is less than 50
years, multiplied by the number of years of safety service subject to
the applicable formula, if he or she is not qualified for service
retirement.
(4) Nothing in this section shall require a member to receive a
lower benefit than he or she would have received prior to January 1,
2013, as the law provided prior to that date.
(b) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 17. Section 31494.1 of the Government Code is amended to
read:
31494.1. (a) In accordance with the provisions of this section,
general members, whose retirement benefits are governed by the
noncontributory plan created by this article, may transfer to the
contributory plan. Contributory plan shall mean Retirement Plan D.
Transfer may be made by election upon written application executed by
the member and filed with the board on or before the election date
and shall be effective on the transfer date, subject to the terms and
conditions set forth in this section. The election date shall be
that date identified in the resolution adopted by the board of
supervisors declaring this section to be operative. The transfer date
shall be that date on which the member completes deposit of all
contributions required by Section 31494.3. The election is voluntary
and may be revoked upon written notice received by the board prior to
the transfer date.
(b) The
retirement benefits of members electing to transfer and transferred
members shall be governed and defined by this section. In the event
of conflict, this section shall supersede and prevail over other
provisions, or application of provisions, otherwise contained in this
article.
(c) Transferred members relinquish, waive, and forfeit any and all
vested or accrued benefits available under any other retirement plan
provided to members of the retirement system, and shall be entitled
only to the benefits available under the contributory plan.
(d) Transferred members shall receive retirement service credit
for that period of service with the employer, for which the members
were otherwise eligible to receive credit under the plan created by
this article. Transferred members shall also receive retirement
service credit for that period of service for which the member made
contributions pursuant to Section 31490.5.
(e) Transferred members may receive retirement service credit for
service other than that with the employer, for which the members were
credited or were eligible to receive credit under the plan created
by this article, by written application executed by the member and
filed with the board on or before the election date.
(f) The employer, the members who have elected to transfer, and
transferred members shall make contributions to the retirement fund
in accordance with the rates, and in the same manner, as prescribed
under the contributory plan. The monthly contributions shall commence
for the month next following the transfer date or that date 120 days
after the election date, whichever is earlier.
(g) For purposes of calculating member contributions required
under Section 31494.3, the entry age of a transferred member shall be
that entry age as reflected in the retirement records maintained on
behalf of the board.
(h) Failure of a member to deposit the contributions at the time
and in the manner required by subdivision (a) of Section 31494.3
shall result in the cancellation of his or her election to transfer.
(i) Failure of a member to deposit the contributions at the time
and in the manner required by subdivision (b) or (c) of Section
31494.3 shall result in the cancellation and forfeiture of his or her
right to elect credit for other service under subdivision (e).
(j) Prior to the transfer date, the rights to retirement,
disability, survivors, and death benefits of members who have made
the election to transfer shall remain the same as defined and
governed by this article. If those members die, terminate service, or
make application for retirement prior to the transfer date, or fail
to deposit all required contributions as required by Section 31494.3,
all member contributions and regular interest shall be refunded to
the member or member's survivor.
(k) Notwithstanding any other provision contained in this section
or Section 31494.3, in the event of the death of a member who has
elected to transfer prior to the transfer date, the spouse of the
member, or the minor children of the member if no spouse survives the
member, may elect to pay the balance of contributions required by
Section 31494.3, and if the contributions are deposited in the
retirement fund within 120 days after the death of the member, the
spouse of the member, or if no spouse survives the member, the minor
children of the member, shall be entitled to rights and benefits as
if the deceased member had deposited all contributions required by
Section 31494.3.
( l ) Prior to the transfer date, the rights to
retirement, disability, survivors, and death benefits of members who
have made the election to transfer shall remain the same as defined
and governed by this article. If those members die, terminate
service, or make application for retirement prior to the transfer
date, all member contributions and regular interest shall be refunded
to the member or the member's survivor.
(m) This section shall be operative at such time or times as may
be mutually agreed to in memoranda of understanding executed by the
employer and employee representatives if the board of supervisors
adopts, by majority vote, a resolution declaring that the section
shall be operative.
SEC. 18. Section 31800 of the Government Code is amended to read:
31800. (a) Except as provided in subdivision (b), the provisions
of this article shall be applicable to any member who is subject to
the federal old age and survivors insurance provisions of the federal
Social Security Act, when the governing board of the county or
district in which the member is employed adopts by majority vote a
resolution providing that this article shall be applicable to all
members in such county or district who are subject to the federal
system. The provisions of this article shall become fully effective
and operative on the date specified in such resolution; provided,
however, such resolution shall have received prior approval by
majority affirmative vote of eligible members employed by the county
or district in a referendum conducted in accordance with the
provisions of Article 2 of Chapter 2 of Part 4 of Division 5 of Title
2 of this code. Nothing in this article shall be construed as
negating or in any way affecting the validity of a referendum vote
conducted prior to the enactment of this article, whereby a majority
of members employed by a county or district voted in favor of federal
old age and survivors insurance coverage on a purely additive or
supplemental basis.
(b) Notwithstanding subdivision (a), this article shall not be
applied to any member or to the service, contributions, or benefits
of any member that, on or after January 1, 2013, is subject to the
provisions of the California Public Employees' Pension Reform Act of
2013. Nothing herein shall preclude a member who is subject to the
California Public Employees' Pension Reform Act of 2013 and whose
position is included in an agreement between the state and federal
government for coverage under the old age and survivors insurance
provisions of the federal Social Security Act from also being subject
to that federal system as a supplementation system under which the
social security benefits shall be in addition to unintegrated
retirement benefits.
SEC. 19. Section 31808 of the Government Code is amended to read:
31808. (a) Except as provided in subdivision (c), in any county
or district subject to the provisions of Section 31676.1, 31676.11,
31676.13, or 31676.14, the retirement allowance payable for
retirement service rendered prior to the effective date of the
resolution mentioned in Section 31800 shall be computed in accordance
with the provisions of Section 31676.1, 31676.11, 31676.13, or
31676.14, whichever is applicable. Except as provided in subdivision
(b), the retirement allowance with respect to service performed after
May 31, 1957, shall equal the total of the following:
(1) The fraction of one-ninetieth of the first three hundred fifty
dollars ($350) monthly of the member's final compensation set forth
in the table appearing in Section 31676.1, 31676.11, 31676.13, or
31676.14, whichever is applicable, in the column applicable to the
member's age at retirement taken to the preceding completed quarter
year multiplied by the number of years of creditable service as
provided therein.
(2) The fraction of one-sixtieth of any remaining portion of the
member's final compensation set forth in the table appearing in
Section 31676.1, 31676.11, 31676.13, or 31676.14, whichever is
applicable, in the column applicable to the member's age at
retirement taken to the preceding completed quarter year multiplied
by the number of years of creditable service.
(b) With respect to persons who become members of a county
retirement system after the effective date of the amendments to this
section enacted at the 1979-80 Regular Session, the retirement
allowance shall equal the following:
(1) The fraction of one-ninetieth of the first one thousand fifty
dollars ($1,050) monthly of the member's final compensation set forth
in the table appearing in Section 31676.1, 31676.11, 31676.13, or
31676.14, whichever is applicable, in the column applicable to the
member's age at retirement taken to the preceding completed quarter
year multiplied by the number of years of creditable service as
provided therein.
(2) The fraction of one-sixtieth of any remaining portion of the
member's final compensation set forth in the table appearing in
Section 31676.1, 31676.11, 31676.13, or 31676.14, whichever is
applicable, in the column applicable to the member's age at
retirement taken to the preceding completed quarter year multiplied
by the number of years of creditable service.
(3) This subdivision may be made applicable in any county of over
six million population on the first day of the month after the board
of supervisors of such county adopts by majority vote a resolution
providing that this subdivision shall become applicable in such
county.
(c) This section shall not apply to the retirement allowance of a
person who becomes a member of a county retirement system under a
benefit plan established pursuant to Section 7522.20 or 7522.25.
SEC. 20. Section 31812 of the Government Code is amended to read:
31812. (a) Except as provided in subdivision (c), each member
shall continue to contribute as provided for in Article 6 (commencing
with Section 31620) or (in case of those members defined in Sections
31470.2, 31470.4, and 31470.6) Article 6.8 (commencing with Section
31639) of this chapter less an amount equal to one-third of that
portion of such contribution which is payable with respect to the
first three hundred fifty dollars ($350) monthly wage, or in counties
where the board of supervisors pursuant to subdivision (b) of
Section 31808.6 elects to compute the retirement allowance of safety
members according to the provisions of Section 31664, each safety
member shall make contributions as provided for in Article 6.8 of
this chapter with respect to all of his or her monthly wage.
(b) (1) With respect to persons who become members of a county
retirement system after the effective date of the amendments to this
section enacted at the 1979-80 Regular Session, each member shall
contribute as provided for in Article 6 (commencing with Section
31620) or (in case of those members defined in Sections 31470.2,
31470.4, and 31470.6) Article 6.8 (commencing with Section 31639) of
this chapter less an amount equal to one-third of that portion of
such contribution which is payable with respect to the first one
thousand fifty dollars ($1,050) monthly wage, or in counties where
the board of supervisors pursuant to subdivision (b) of Section
31808.6 elects to compute the retirement allowance of safety members
according to the provisions of Section 31664, each safety member
shall make contributions as provided for in Article 6.8 of this
chapter with respect to all of his or her monthly wage.
(2) This subdivision may be made applicable in any county of over
six million population on the first day of the month after the board
of supervisors of such county adopts by majority vote a resolution
providing that this subdivision shall become applicable in such
county.
(c) This section shall not apply to the retirement allowance of a
person who becomes a member of a county retirement system under a
benefit plan established pursuant to Section 7522.20 or 7522.25.
SEC. 21. This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
In order to address technical problems and avoid costly and
unnecessary changes to retirement systems in implementing the
California Public Employees' Pension Reform Act of 2013 (Chapter 296
of the Statutes of 2012), it is necessary for this act to take effect
immediately.