BILL NUMBER: SB 215 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 5, 2013
AMENDED IN ASSEMBLY MAY 30, 2013
AMENDED IN SENATE APRIL 1, 2013
INTRODUCED BY Senator Beall
FEBRUARY 11, 2013
An act to amend Sections 20092, 21269, 21462, 22850,
22920, and 22922 of, and to repeal Section 20204 of, the Government
Code, relating to public employees' retirement.
LEGISLATIVE COUNSEL'S DIGEST
SB 215, as amended, Beall. Public employees' retirement.
(1) Existing law provides that the Public Employees' Retirement
System (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.
(2) 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.
(3) Existing law authorizes a member or retired member, in lieu of
the retirement allowance for his or her life alone, to elect, or to
revoke or change a previous election, to have the actuarial
equivalent of his or her retirement allowance, as specified, applied
to a lesser retirement allowance, in accordance with one of several
optional settlements. Existing law authorizes a member who previously
elected to receive one of certain optional settlements involving a
life contingency of the beneficiary, and who has a qualifying event,
as specified, to make a new election within 12 months after the
occurrence of the qualifying event. Existing law requires the member
to name a new beneficiary for this purpose.
This bill would authorize a member who exercises the election
described above on and after January 1, 2014, to name the same
beneficiary as previously designated, and requires that the resulting
benefit under these circumstances otherwise satisfy applicable
existing law requirements.
(3)
(4) Existing law permits a person entitled to a benefit
from PERS to request that payment be made by 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.
(4)
(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. The bill would
require that the approval of the contract be by affirmative vote of a
majority of the members of the relevant governing body.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 20092 of the Government Code is amended to
read:
20092. Each employing agency that employs an elected member of
the board shall be reimbursed by the retirement fund in an amount
equal to the salary and benefits paid to the elected board member by
the employing agency for the percentage of the elected board member's
regular work schedule during which the elected board member is on
leave from the employing agency to attend meetings or activities of
the board, or meetings of committees or subcommittees of the board,
or when serving as president or vice president of the board or chair
or vice chair of a committee or subcommittee of the board, or when
carrying out other powers or duties as may be approved by the board,
or to otherwise fulfill his or her responsibilities to the system.
SEC. 2. Section 20204 of the Government Code is repealed.
SEC. 3. Section 21269 of the Government Code is amended to read:
21269. (a) Any person entitled to a benefit from this system may
request that payment be made by deposit by electronic fund transfer
in the person's bank, savings and loan association, or credit union
account.
(b) If deposit pursuant to subdivision (a) is not available,
deposit may be made by mail in the person's bank, savings and loan
association, or credit union account.
(c) Mailing of the warrant or electronic fund transfer is a full
discharge of the board and this system.
(d) The board shall make available, in a manner it determines
appropriate, copies of the monthly benefit payment information
electronically or by mail.
(1) If the board elects to mail copies of this payment information
to all or a portion of persons receiving monthly benefit payments,
it shall not send a copy of the benefit payment information to any
person who has had payment made by electronic fund transfer or by
mail pursuant to subdivision (a) or (b), if the board has received a
written request from that person that it not be sent.
(2) The board shall notify persons subject to this section, in the
monthly benefit payment notice, of their right to request that no
copy of the benefit payment information be mailed, pursuant to
paragraph (1).
(3) If the board does not elect to mail copies of this payment
information to all or a portion of persons receiving monthly benefit
payments, it shall notify a person subject to this section of his or
her right to request that a copy of the benefit payment information
be mailed. The board shall mail a copy of the benefit payment
information if the system has received a written request to do so
from that person.
SEC. 4. Section 21462 of the Government
Code is amended to read:
21462. (a) (1)
Notwithstanding any other provision of this part, a member who
elected to receive optional settlement 2, 3, or 4, involving a life
contingency of the beneficiary, may, if the beneficiary predeceases
the member or if the member marries and the former spouse was not
named as beneficiary, or, if a former spouse was named, in the event
of a dissolution or annulment of the marriage or a legal separation
in which the judgment dividing the community property awards the
total interest in the retirement system to the retired member, elect
to have the actuarial equivalent reflecting any selection against the
fund resulting from the election as of the date of election of the
allowance payable for the remainder of the member's lifetime under
the optional settlement previously chosen applied to a lesser
allowance during the member's remaining lifetime under one of the
optional settlements specified in this article and name a different
beneficiary. The
(2) Notwithstanding paragraph (1), for an election pursuant to
this section that occurs on or after January 1, 2014, a member may
name the same beneficiary as previously designated, provided that the
resulting benefit to the member and the named beneficiary otherwise
meets the requirements of this section.
(b) The election shall be made
within 12 months following the death of the beneficiary who
predeceased the member or within 12 months of the date of entry of
the judgment dividing the community property of the parties, or
within 12 months following marriage if the spouse is named as
beneficiary. The election shall become effective on the date
specified on the election, provided that this date is not earlier
than the day following receipt of the election in this system
pursuant to this section.
A
(c) A member who has a qualifying
event prior to January 1, 1988, and who fails to elect by January 1,
1989, or a member who has a qualifying event on or after January 1,
1988, and who fails to elect within 12 months, shall retain the right
to make an election under this section. However, this election shall
become effective no earlier than 12 months after the date it is
filed with the board, provided that neither the member nor the
designated beneficiary die prior to the effective date of the
election.
This
(d) This section shall not be
construed to mean that designation of a new beneficiary causes the
selection of an optional settlement. An optional settlement shall be
selected by a member in a writing filed by the member with the board.
SEC. 4. SEC. 5. Section 22850 of the
Government Code is amended to read:
22850. (a) The board may, without compliance with any provision
of law relating to competitive bidding, enter into contracts with
carriers offering health benefit plans or with entities offering
services relating to the administration of health benefit plans.
(b) The board may contract with carriers for health benefit plans
or approve health benefit plans offered by employee organizations,
provided that the carriers have operated successfully in the hospital
and medical care fields prior to the contracting for or approval
thereof. The plans may include hospital benefits, surgical benefits,
inpatient medical benefits, outpatient benefits, obstetrical
benefits, and benefits offered by a bona fide church, sect,
denomination, or organization whose principles include healing
entirely by prayer or spiritual means.
(c) Notwithstanding any other provision of this part, the board
may contract with health benefit plans offering unique or specialized
health services.
(d) The board may administer self-funded or minimum premium health
benefit plans.
(e) The board may contract for or implement employee cost
containment and cost reduction incentive programs that involve the
employee, the annuitant, and family members as active participants,
along with the carrier and the provider, in a joint effort toward
containing and reducing the cost of providing medical and hospital
health care services to public employees. In developing these plans,
the board, in cooperation with the Department of Human Resources, may
request proposals from carriers and certified public employee
representatives.
(f) Notwithstanding any other provision of this part, the board
may do any of the following:
(1) Contract for, or approve, health benefit plans that charge a
contracting agency and its employees and annuitants rates based on
regional variations in the costs of health care services.
(2) Contract for, or approve, health benefit plans exclusively for
the employees and annuitants of contracting agencies. State
employees and annuitants may not enroll in these plans. The board may
provide health benefit plans exclusively for employees and
annuitants of contracting agencies in addition to or in lieu of other
health benefit plans offered under this part pursuant to Section
22922.
(3) Implement and administer risk adjustment procedures consistent
with Section 22864 that require health benefit plans to adjust
premiums and authorize the system to redistribute premiums based on
rules and regulations established by the board for this purpose.
(g) The board shall approve any employee association health
benefit plan that was approved by the board in the 1987-88 contract
year or prior, provided the plan continues to meet the minimum
standards prescribed by the board. The trustees of an employee
association health benefit plan are responsible for providing health
benefit plan administration and services to its enrollees.
Notwithstanding any other provision of this part, the California
Correctional Peace Officer Association Health Benefits Trust may
offer different health benefit plan designs with varying premiums in
different areas of the state.
(h) Irrespective of any other provision of law, the sponsors of a
health benefit plan approved under this section may reinsure the
operation of the plan with an admitted insurer authorized to write
disability insurance, if the premium includes the entire prepayment
fee.
SEC. 5. SEC. 6. Section 22920 of the
Government Code is amended to read:
22920. The following entities are eligible to obtain a health
benefit plan, as defined in Section 22777, subject to board approval:
(a) A contracting agency, as defined in Section 20022, a county or
special district subject to the County Employees Retirement Law of
1937 (Chapter 3 (commencing with Section 31450) of Part 3 of Division
4 of Title 3), and a school employer.
(b) A public body or agency of or within the state that is not
subject to Part 3 (commencing with Section 20000) of the Government
Code or the County Employees Retirement Law of 1937 (Chapter 3
(commencing with Section 31450) of Part 3 of Division 4 of Title 3),
and that provides a retirement system for its employees funded wholly
or in part by public funds.
(c) The protection and advocacy agency described in subdivision
(h) of Section 4900 of the Welfare and Institutions Code, if the
agency obtains a written advisory opinion from the United States
Department of Labor stating that the organization is an agency or
instrumentality of the state or a political subdivision thereof
within the meaning of Chapter 18 (commencing with Section 1001) of
Title 29 of the United States Code.
SEC. 6. SEC. 7. Section 22922 of the
Government Code is amended to read:
22922. (a) A contracting agency and its employees and annuitants
may obtain a health benefit plan, as defined in Section 22777,
subject to board approval of a resolution submitted by the governing
body electing to be so subject. The resolution shall be adopted by a
majority vote and shall be effective at the time provided in board
regulations.
(b) In addition to, or in lieu of, submitting a resolution as
prescribed in subdivision (a), the board may require the contracting
agency to enter into a contract with the board to obtain a health
benefit plan, as defined in Section 22777, for all or part of its
employees, pursuant to rules and regulations developed by the board
for this purpose.
(c) The board may refuse to contract with, or to agree to an
amendment proposed by, a contracting agency for any benefit
provisions that are not specifically authorized by this part and that
the board determines would adversely affect the administration of
this system.
(d) A contracting agency may become subject to this part with
respect to a recognized employee organization with which it has
reached mutual agreement. The resolution and any contracts, or the
resolution and contract required by subdivisions (a) and (b), shall
specify the recognized employee organizations participating in this
system.
(e) Pursuant to Section 22796 and subdivision (g) of Section
22934, the board may by regulation require any contracting agency
that becomes subject to this part to meet certain board-determined
criteria, including, but not limited to, additional requirements for
any contracting agency that elects to become subject to this part
that previously terminated coverage pursuant to Section 22938.
(f) Approval of the contract to obtain a health benefit plan
pursuant to subdivision (b) shall be by the affirmative vote of a
majority of the members of the governing body of the contracting
agency.