Amended in Senate January 29, 2013

Senate BillNo. 54


Introduced by Senator Hancock

December 21, 2012


An act to add Sections 31621.12 and 31676.20 to the Government Code, relating to county employees’ retirement, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL’S DIGEST

SB 54, as amended, 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: 23. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

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

P2    1

SECTION 1.  

Section 31621.12 is added to the Government
2Code
, to read:

3

31621.12.  

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.

8

SEC. 2.  

Section 31676.20 is added to the Government Code,
9to read:

10

31676.20.  

(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.


31

 

Age of
Retirement

Fraction

52   

 1.00

5214   

 1.025

5212   

 1.050

5234   

 1.075

53   

 1.100

5314   

 1.125

5312   

 1.150

5334   

 1.175

54   

 1.1883

5414   

 1.2022

5412   

 1.2160

5434   

 1.2299

55    

 1.2436

5514   

 1.2585

5512   

 1.2733

5534   

 1.2882

56   

 1.3031

5614   

 1.3192

5612   

 1.3353

5634   

 1.3514

57   

 1.3675

5714   

 1.3850

5712   

 1.4025

5734   

 1.4200

58   

 1.4375

5814   

 1.4565

5812   

 1.4757

5834   

 1.4947

59   

 1.5138

5914   

 1.5346

5912   

 1.5554

5934   

 1.5763

60   

 1.5972

6014   

 1.6126

6012   

 1.6282

6034   

 1.6438

61   

 1.6593

6114   

 1.6801

6112   

 1.7010

6134   

 1.7219

62   

 1.7428

6214   

 1.7649

6212   

 1.7871

6234   

 1.8092

63   

 1.8314

6314   

 1.8549

6312   

 1.8785

6334   

 1.9021

64   

 1.9257

6414   

 1.9510

6412   

 1.9763

6434   

 2.0015

65   

 2.0268

6514   

 2.0268

6512   

 2.0268

6534   

 2.0268

66    

 2.0268

6614   

 2.0268

6612   

 2.0268

6634   

 2.0268

67 and over   

 2.0268

 

P4   18(b) Except as provided for inbegin delete subdivisions (a) and (f)end deletebegin insert subdivision end insert
19begin insert(a)end insert, any requirement of the California Public Employees’ Pension
20Reform Act of 2013 (Article 4 (commencing with Section 7522)
21of Chapter 21 of Division 7 of Title 1)begin delete imposed onend deletebegin insert applicable toend insert
22 employers or members participating in county and district
23retirement systems created under this chapter shall also apply to
24employers and members operating under this section.

25(c) begin deleteA end deletebegin insertSubject to the requirements of Section 7522.30, a end insert
26resolution adopted pursuant to this section or previously adopted
27resolutions of the board may require members to pay all or part of
28the contributions by a member or employer, or both, that would
29have been required if the section or sections specified within this
30chapter were or have been adopted by resolution. The payment by
31a member shall become part of the accumulated contributions of
32the member.

33(d) The board of supervisors, in a resolution described in
34subdivision (a), shall not require that a bargaining unit be divided
35solely for the purpose of providing different retirement benefits.
36However, if the members of a bargaining unit within the same or
37similar membership classification so elect, retirement benefits may
38be separately negotiated with that bargaining unit.

P5    1(e) Notwithstanding any other provision of law, the effective
2date of a resolution described in subdivision (a) may be different
3than the date of the resolution.

begin delete

4(f) Notwithstanding any other law, including subdivision (a) of
5Section 7522.32, for purposes of this section, “final compensation”
6shall mean the highest average annual pensionable compensation
7earned by the member during a period of at least 36 consecutive
8months, immediately preceding his or her retirement or last
9separation from service if earlier, or during any other period of at
10least 36 consecutive months during the member’s applicable service
11that the member designates on the application for retirement. If a
12member has less than 36 months of service, the member’s final
13compensation shall be determined by dividing the member’s total
14compensation by the number of months of service credited to the
15member and multiplying by 12.

16“Final compensation” for members whose service is on a tenure
17which is temporary, seasonal, intermittent, or for part time only,
18means one-third of the total compensation earned for that period
19of time during which the member rendered the equivalent of 36
20months of full-time service. The member may elect at or before
21the time the member files an application for retirement the period
22of time during which the member has earned 36 months of credit
23upon which final compensation shall be calculated. If the member
24does not so elect, the period of time immediately preceding
25retirement shall be used.

23 26(g)

end delete

27begin insert(f)end insert This section shall not apply to safety members.

begin delete

28(h) For employees in a bargaining unit, this section may not be
29imposed by the employer in the absence of a negotiated
30memorandum of understanding under the Meyers-Milias Brown
31Act.

end delete
32

SEC. 3.  

This act is an urgency statute necessary for the
33immediate preservation of the public peace, health, or safety within
34the meaning of Article IV of the Constitution and shall go into
35immediate effect. The facts constituting the necessity are:

36In order for the benefits of a memorandum of understanding that
37was negotiated between a county of the fourth class and one of its
P6    1bargaining units to be enacted and applied equitably at the earliest
2possible time, it is necessary that this act take effect immediately.



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