SB 215, as introduced, Beall. Public employees’ retirement.
(1) Existing law permits a member of the Public Employees’ Retirement System (PERS) who is employed by a school district, community college district, a county superintendent of schools, or the State Department of Education to elect to have specified service excluded from coverage by the Defined Benefit Program of the State Teachers’ Retirement Plan and instead be subject to coverage by PERS, as specified.
This bill would provide that the option to elect the exclusion applies when the member of PERS was employed by a school district, community college district, a county superintendent of schools, or the State Department of Education within 120 days prior to the member’s date of hire to perform service that requires membership in the Defined Benefit Program of the State Teachers’ Retirement Plan.
(2) Existing law provides that PERS is governed by its Board of Administration (board) and prescribes the composition of the board. Existing law requires the retirement fund of PERS to reimburse an employing agency that employs an elected member of the board and that employs a person to replace the member during attendance at meetings of the board, among other times, for the direct and reasonable costs incurred by employing a replacement.
This bill would recast these provisions to provide that the employing agency be reimbursed, as specified, without regard to whether it replaces the elected member.
(3) Existing law authorizes the board to sell exchange-traded call options only through an exchange, and only with respect to stock owned by the system, as specified.
This bill would repeal these provisions.
(4) Existing law permits a person entitled to a benefit from PERS to request that payment be made an electronic fund transfer, as specified. Existing law prohibits the board from sending a copy of benefit payment information to any person who has had payment made by electronic fund transfer or by mail, as specified, if the board has received a written request from that person that it not be sent.
This bill would authorize the board to make available, in a manner it determines appropriate, copies of the monthly benefit payment information electronically and by mail. The bill would require the board, if it does not elect to mail copies of this payment information, as specified, to all or some of the people receiving monthly benefit payments, to notify people of their right to request that a copy of the benefit payment information be mailed. The bill would require the board to mail the information upon receiving a written request to do so.
(5) Existing law, the Public Employees’ Medical and Hospital Care Act (PEMHCA), authorizes the board to enter into contracts with carriers offering health benefit plans or with entities offering services relating to the administration of health benefit plans. Existing law specifically authorizes the board to contract for, or approve, health benefit plans exclusively for the employees and annuitants of contracting agencies. Existing law authorizes a contracting agency and its employees and annuitants to elect to be subject to PEMHCA upon filing with the board a resolution of its governing body, as specified. Existing law authorizes the board, by regulation, to establish requirements for a contracting agency that elects to become subject to PEMHCA.
This bill would provide that a contracting agency and its employees and annuitants may obtain a health benefit plan, as defined, subject to board approval of a resolution submitted by the governing body. The bill would authorize the board to refuse to contract with, or to agree to an amendment proposed by, any contracting agency for benefit provisions that are not specifically authorized by PEMHCA and that the board determines would adversely affect the administration of this system. Among other things, the bill would permit the board to require the contracting agency to enter into a contract with the board in this regard and that the contract would constitute an election by the contracting agency to include the agency and its employees PEMHCA-authorized health benefit plans. The bill would require that the approval of the contract be by ordinance adopted by the affirmative vote of a majority of the members of the relevant governing body, at least 20 days after the adoption of the resolution of intention, or by ordinance adopted by a majority vote of the electorate of the contracting agency.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 22508 of the Education Code is amended
(a) A member who becomes employed by the same or
4a different school district or community college district, or a county
5superintendent, or who becomes employed by the state in a position
6described in subdivision (b), to perform service that requires
7membership in a different public retirement system, and who is
8not excluded from membership in that public retirement system,
9may elect to have that service subject to coverage by the Defined
10Benefit Program of this plan and excluded from coverage by the
11other public retirement system. The election shall be made in
12writing on a form prescribed by this system within 60 days from
13the date of hire in the position requiring membership in the other
14public retirement system. If that election is made, the service
15performed for the employer after the date of hire shall be
16considered creditable service for purposes of this part.
17(b) Subdivision (a) shall apply to a member who becomes
18employed by the state only if the member is also one of the
20(1) Represented by a state bargaining unit that represents
21educational consultants, professional educators, or librarians
22employed by the state.
23(2) Excluded from the definition of “state employee” in
24subdivision (c) of Section 3513 of the Government Code, but
25performing, supervising, or managing work similar to work
26performed by employees described in paragraph (1).
P4 1(3) In a position not covered by civil service and in the executive
2branch of government, but performing, supervising, or managing
3work similar to work performed by employees described in
5(c) (1) A member of the Public Employees’ Retirement System
6described in paragraph (2) who is subsequently employed to
7perform creditable service requiring coverage by the Defined
8Benefit Program of this plan may elect to have that subsequent
9service subject to coverage by the Public Employees’ Retirement
10System and excluded from coverage by the Defined Benefit
11Program pursuant to Section 20309 of the Government Code. If
12the election is made, creditable service performed for the employer
13after the date of hire shall be subject to coverage by the Public
14Employees’ Retirement System.
15(2) This subdivision shall apply to a member of the Public
16Employees’ Retirement System who either (A)
begin delete isend delete
17by a school district, community college district, a county
18superintendent, or the State Department of Education or (B) has at least five years of credited
22service under the system.
23(d) An election made by a member pursuant to this section shall
Section 20092 of the Government Code is amended
Each employing agency that employs an elected
28member of the board
begin delete and that employs a person to replace the meetings of the board, or meetings of
29member during attendance atend delete
35committees or subcommittees of the board,
begin delete or when serving as a , or when carrying out other powers or
36panel member of this systemend delete
39duties as may be approved by the board,
begin delete shall be reimbursed from .
40the retirement fund for the direct and reasonable costs incurred by
P5 1employing a replacement. Reimbursement for the costs incurred
2in employing a replacement pursuant to this section shall be
3operative on February 1, 2003end delete
Section 20204 of the Government Code is repealed.
The board may sell exchange-traded call options only
7through an exchange, and only with respect to stock owned by this
8system. Common stock that is obligated under an unexpired written
9call option shall not be sold unless the board first enters into a
10closing purchase transaction.
11The board may purchase exchange traded options only through
12an exchange and only for the purpose of a closing purchase
Section 20309 of the Government Code is amended
(a) A member of the system described in subdivision
17(b) who subsequently is employed to perform service subject to
18coverage by the Defined Benefit Program of the State Teachers’
19Retirement Plan, may elect to retain coverage by this system for
20that subsequent service. An election to retain coverage under this
21system shall be submitted in writing by the member to the system
22on a form prescribed by the system, and a copy of the election
23shall be submitted to the State Teachers’ Retirement System, within
2460 days after the member’s date of hire to perform service that
25requires membership in the Defined Benefit Program of the State
26Teachers’ Retirement Plan. A member who elects to retain
27coverage under this system pursuant to this section shall be deemed
28to be a school member while employed by a school employer.
29(b) This section shall apply to a member of the system who
begin delete isend delete employed by a school employer, the Board of
31Governors of the California Community Colleges, or the State
32Department of Education
35 or (2) has at least five years of credited service under this system.
36(c) Any election made pursuant to this section shall become
37effective as of the first day of employment in the position that
38qualified the member to make an election.
Section 21269 of the Government Code is amended
(a) Any person entitled to a benefit from this system
2may request that payment be made by deposit by electronic fund
3transfer in the person’s bank, savings and loan association, or credit
5(b) If deposit pursuant to subdivision (a) is not available, deposit
6may be made by mail in the person’s bank, savings and loan
7association or credit union account.
8(c) Mailing of the warrant or electronic fund transfer is a full
9discharge of the board and this system.
begin deleteThe board end deleteshall not send a copy of the benefit payment
16information to any person who has had payment made by electronic
17fund transfer or by mail pursuant to subdivision (a) or (b), if the
18board has received a written request from that person that it not
20(2) The board shall notify persons subject to this section, in the
21monthly benefit payment notice, of their right to request that no
22copy of the benefit payment information be mailed, pursuant to
Section 22850 of the Government Code is amended
(a) The board may, without compliance with any
34provision of law relating to competitive bidding, enter into
35contracts with carriers offering health benefit plans or with entities
36offering services relating to the administration of health benefit
38(b) The board may contract with carriers for health benefit plans
39or approve health benefit plans offered by employee organizations,
40provided that the carriers have operated successfully in the hospital
P7 1and medical care fields prior to the contracting for or approval
2thereof. The plans may include hospital benefits, surgical benefits,
3inpatient medical benefits, outpatient benefits, obstetrical benefits,
4and benefits offered by a bona fide church, sect, denomination, or
5organization whose principles include healing entirely by prayer
6or spiritual means.
7(c) Notwithstanding any other provision of this part, the board
8may contract with health benefit plans offering unique or
9specialized health services.
10(d) The board may administer self-funded or minimum premium
11health benefit plans.
12(e) The board may contract for or implement employee cost
13containment and cost reduction incentive programs that involve
14the employee, the annuitant, and family members as active
15participants, along with the carrier and the provider, in a joint effort
16toward containing and reducing the cost of providing medical and
17hospital health care services to public employees. In developing
18these plans, the board, in cooperation with the Department of
19Human Resources, may request proposals from carriers and
20certified public employee representatives.
21(f) Notwithstanding any other provision of this part, the board
22may do any of the following:
23(1) Contract for, or approve, health benefit plans that charge a
24contracting agency and its employees and annuitants rates based
25on regional variations in the costs of health care services.
26(2) Contract for, or approve, health benefit plans exclusively
27for the employees and annuitants of contracting agencies. State
28employees and annuitants may not enroll in these plans. The board
begin delete offerend delete health benefit plans exclusively for employees
30and annuitants of contracting agencies in addition to or in lieu of
31other health benefit plans offered under this part
begin delete. The governing
32body of a contracting agency may elect, upon filing a resolution
33with the board, to provide those health benefit plans to its
34employees and annuitants. The resolution shall be subject to mutual
35agreement between the contracting agency and the recognized
36employee organization, if anyend delete
37(3) Implement and administer risk adjustment procedures
38consistent with Section 22864 that require health benefit plans to
39adjust premiums and authorize the system to redistribute premiums
P8 1based on rules and regulations established by the board for this
3(g) The board shall approve any employee association health
4benefit plan that was approved by the board in the 1987-88 contract
5year or prior, provided the plan continues to meet the minimum
6standards prescribed by the board. The trustees of an employee
7association health benefit plan are responsible for providing health
8benefit plan administration and services to its enrollees.
9Notwithstanding any other provision of this part, the California
10Correctional Peace Officer Association Health Benefits Trust may
11offer different health benefit plan designs with varying premiums
12in different areas of the state.
13(h) Irrespective of any other provision of law, the sponsors of
14a health benefit plan approved under this section may reinsure the
15operation of the plan with an admitted insurer authorized to write
16disability insurance, if the premium includes the entire prepayment
Section 22920 of the Government Code is amended
The following entities are eligible to
begin delete become subject :
21to this partend delete
23(a) A contracting agency, as defined in Section 20022, a county
24or special district subject to the County Employees Retirement
25Law of 1937 (Chapter 3 (commencing with Section 31450) of Part
263 of Division 4 of Title 3), and a school employer.
27(b) A public body or agency of or within the state that is not
28subject to Part 3 (commencing with Section 20000) of the
29Government Code or the County Employees Retirement Law of
301937 (Chapter 3 (commencing with Section 31450) of Part 3 of
31Division 4 of Title 3), and that provides a retirement system for
32its employees funded wholly or in part by public funds.
33(c) The protection and advocacy agency described in subdivision
34(h) of Section 4900 of the Welfare and Institutions Code, if the
35agency obtains a written advisory opinion from the United States
36Department of Labor stating that the organization is an agency or
37instrumentality of the state or a political subdivision thereof within
38the meaning of Chapter 18 (commencing with Section 1001) of
39Title 29 of the United States Code.
Section 22922 of the Government Code is amended
(a) A contracting agency and its employees and
begin delete shall beend delete subject to begin delete this part upon filing with theend delete board
6 a resolution
begin delete of itsend delete
7electing to be so subject. The resolution shall be adopted by a
8majority vote and shall be effective at the time provided in board
25 A contracting agency may become subject to this part with
26respect to a recognized employee organization. The resolution
begin delete filed with respect to a
28contracting agency pursuant to subdivision (a)end delete
begin delete to which .
31the resolution appliesend delete
33 Pursuant to Section 22796 and subdivision (g) of Section
3422934, the board may by regulation require any contracting agency
begin delete elects to becomeend delete subject to this part to meet certain
36board-determined criteria, including, but not limited to, additional
37requirements for any contracting agency that elects to become
38subject to this part that previously terminated coverage pursuant
39to Section 22938.