SB 54, as introduced, Hancock. Retirement: county employees.
The California Public Employees’ Pension Reform Act of 2013 requires each county retirement system created pursuant to the County Employees Retirement Law of 1937 to use a retirement formula commonly known as 2.5% at 67 years of age for nonsafety members first hired on or after January 1, 2013, except that a lower retirement formula may be used as specified. The County Employees Retirement Law of 1937 authorizes the Alameda County Board of Supervisors to provide service retirement allowances for general members based on one of 2 formulas commonly known as the 2% at 57 years of age formula or the 1.64% at 57 years of age formula.
This bill would authorize the Alameda County Board of Supervisors to adopt a resolution that would provide service retirement allowances based on a formula commonly known as the 2% at 65 years of age formula for general members hired after approval of the resolution, as specified.
This bill would declare that it is to take effect immediately as an urgency statute.
Vote: 2⁄3. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 31621.12 is added to the Government
2Code, to read:
In counties adopting Section 31676.20, the normal
4rates of contribution for members covered by Section 31676.20
5shall be as provided for in Section 7522.30. Employees shall pay
6at least 50 percent of normal costs and the employer shall not pay
7any part of the required employee contribution.
Section 31676.20 is added to the Government Code,
9to read:
(a) (1) Notwithstanding any other provision of this
11chapter or of subdivision (b) of Section 7522.02 and Section
127522.20, this section may be made applicable in a county of the
13fourth class, as defined in Sections 28020 and 28025, as amended
14by Chapter 1204 of the Statutes of 1971, on the first day of the
15month after the board of supervisors of the county adopts a
16resolution by majority vote, as part of or subsequent to the adoption
17of any negotiated memorandum of understanding with a bargaining
18unit that represents general member employees and that was
19adopted on or before July 31, 2012, to employees of that bargaining
20unit hired after approval of the resolution or to unrepresented
21employees hired after approval of the resolution.
22(2) Notwithstanding any other provisions of this chapter or of
23subdivision (b) of Section 7522.02 and Section 7522.20, the defined
24benefit plan shall provide a pension at retirement for service equal
25to the percentage of the member’s final compensation set forth
26opposite the member’s age at retirement, taken to the preceding
27quarter year, in the following table, multiplied by the number of
28years of service in the system as a nonsafety member. A member
29may retire for service under this section after five years of service
30and upon reaching 52 years of age.
|
Age of |
Fraction |
|
52 |
1.00 |
|
521⁄4 |
1.025 |
|
521⁄2 |
1.050 |
|
523⁄4 |
1.075 |
|
53 |
1.100 |
|
531⁄4 |
1.125 |
|
531⁄2 |
1.150 |
|
533⁄4 |
1.175 |
|
54 |
1.1883 |
|
541⁄4 |
1.2022 |
|
541⁄2 |
1.2160 |
|
543⁄4 |
1.2299 |
|
55 |
1.2436 |
|
551⁄4 |
1.2585 |
|
551⁄2 |
1.2733 |
|
553⁄4 |
1.2882 |
|
56 |
1.3031 |
|
561⁄4 |
1.3192 |
|
561⁄2 |
1.3353 |
|
563⁄4 |
1.3514 |
|
57 |
1.3675 |
|
571⁄4 |
1.3850 |
|
571⁄2 |
1.4025 |
|
573⁄4 |
1.4200 |
|
58 |
1.4375 |
|
581⁄4 |
1.4565 |
|
581⁄2 |
1.4757 |
|
583⁄4 |
1.4947 |
|
59 |
1.5138 |
|
591⁄4 |
1.5346 |
|
591⁄2 |
1.5554 |
|
593⁄4 |
1.5763 |
|
60 |
1.5972 |
|
601⁄4 |
1.6126 |
|
601⁄2 |
1.6282 |
|
603⁄4 |
1.6438 |
|
61 |
1.6593 |
|
611⁄4 |
1.6801 |
|
611⁄2 |
1.7010 |
|
613⁄4 |
1.7219 |
|
62 |
1.7428 |
|
621⁄4 |
1.7649 |
|
621⁄2 |
1.7871 |
|
623⁄4 |
1.8092 |
|
63 |
1.8314 |
|
631⁄4 |
1.8549 |
|
631⁄2 |
1.8785 |
|
633⁄4 |
1.9021 |
|
64 |
1.9257 |
|
641⁄4 |
1.9510 |
|
641⁄2 |
1.9763 |
|
643⁄4 |
2.0015 |
|
65 |
2.0268 |
|
651⁄4 |
2.0268 |
|
651⁄2 |
2.0268 |
|
653⁄4 |
2.0268 |
|
66 |
2.0268 |
|
661⁄4 |
2.0268 |
|
661⁄2 |
2.0268 |
|
663⁄4 |
2.0268 |
|
67 and over |
2.0268 |
P4 18(b) Except as provided for in subdivisions (a) and (f), any
19requirement of the California Public Employees’ Pension Reform
20Act of 2013 (Article 4 (commencing with Section 7522) of Chapter
2121 of Division 7 of Title 1) imposed on employers or members
22participating in county and district retirement systems created
23under this chapter shall also apply to employers and members
24operating under this section.
25(c) A resolution adopted pursuant to this section or previously
26adopted resolutions of the board may require
members to pay all
27or part of the contributions by a member or employer, or both, that
28would have been required if the section or sections specified within
29this chapter were or have been adopted by resolution. The payment
30by a member shall become part of the accumulated contributions
31of the member.
32(d) The board of supervisors, in a resolution described in
33subdivision (a), shall not require that a bargaining unit be divided
34solely for the purpose of providing different retirement benefits.
35However, if the members of a bargaining unit within the same or
36similar membership classification so elect, retirement benefits may
37be separately negotiated with that bargaining unit.
38(e) Notwithstanding any other provision of law, the effective
39date of a resolution described in subdivision (a) may be different
40than the date of the resolution.
P5 1(f) Notwithstanding any other law, including subdivision (a) of
2Section 7522.32, for purposes of this section, “final compensation”
3shall mean the highest average annual pensionable compensation
4earned by the member during a period of at least 36 consecutive
5months, immediately preceding his or her retirement or last
6separation from service if earlier, or during any other period of at
7least 36 consecutive months during the member’s applicable service
8that the member designates on the application for retirement. If a
9member has less than 36 months of service, the member’s final
10compensation shall be determined by dividing the member’s total
11compensation by the number of months of service credited to the
12member and multiplying by 12.
13“Final compensation” for members whose service is on a tenure
14which is temporary, seasonal, intermittent, or for part time only,
15means one-third of the total compensation earned for that period
16of time during which the member
rendered the equivalent of 36
17months of full-time service. The member may elect at or before
18the time the member files an application for retirement the period
19of time during which the member has earned 36 months of credit
20upon which final compensation shall be calculated. If the member
21does not so elect, the period of time immediately preceding
22retirement shall be used.
23(g) This section shall not apply to safety members.
24(h) For employees in a bargaining unit, this section may not be
25imposed by the employer in the absence of a negotiated
26memorandum of understanding under the Meyers-Milias Brown
27Act.
This act is an urgency statute necessary for the
29immediate preservation of the public peace, health, or safety within
30the meaning of Article IV of the Constitution and shall go into
31immediate effect. The facts constituting the necessity are:
32In order for the benefits of a memorandum of understanding that
33was negotiated between a county of the fourth class and one of its
34bargaining units to be enacted and applied equitably at the earliest
35possible time, it is necessary that this act take effect immediately.
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