Amended in Senate February 13, 2013

Amended in Senate February 6, 2013

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: 2⁄3. 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 December 31, 2012, to employees of that
20bargaining unit hired after approval of the resolution or to
21unrepresented employees 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

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   23(b) Except as provided for in subdivision (a), any requirement
24of the California Public Employees’ Pension Reform Act of 2013
25(Article 4 (commencing with Section 7522) of Chapter 21 of
26Division 7 of Title 1) applicable to employers or members
27participating in county and district retirement systems created
28under this chapter shall also apply to employers and members
29operating under this section.

30(c) Subject to the requirements of Section 7522.30, a resolution
31adopted pursuant to this section or previously adopted resolutions
32of the board may require members to pay all or part of the
33contributions by a member or employer, or both, that would have
34been required if the section or sections specified within this chapter
35were or have been adopted by resolution. The payment by a
36member shall become part of the accumulated contributions of the
37member.

begin delete

38(d) The board of supervisors, in a resolution described in
39subdivision (a), shall not require that a bargaining unit be divided
40solely for the purpose of providing different retirement benefits.
P5    1However, if the members of a bargaining unit within the same or
2similar membership classification so elect, retirement benefits may
3be separately negotiated with that bargaining unit.

end delete begin delete

3 4(e)

end delete

5begin insert(d)end insert Notwithstanding any other provision of law, the effective
6date of a resolution described in subdivision (a) may be different
7than the date of the resolution.

begin delete

8(f)

end delete

9begin insert(e)end insert This section shall not apply to safety members.

10

SEC. 3.  

This act is an urgency statute necessary for the
11immediate preservation of the public peace, health, or safety within
12the meaning of Article IV of the Constitution and shall go into
13immediate effect. The facts constituting the necessity are:

14In order for the benefits of a memorandum of understanding that
15was negotiated between a county of the fourth class and one of its
16bargaining units to be enacted and applied equitably at the earliest
17possible time, it is necessary that this act take effect immediately.


O

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