BILL ANALYSIS �
SB 215
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Date of Hearing: June 26, 2013
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL
SECURITY
Rob Bonta, Chair
SB 215 (Beall) - As Amended: May 30, 2013
SENATE VOTE : 33-2
SUBJECT : Public employees' retirement.
SUMMARY : Makes various technical and conforming changes to the
Public Employees' Retirement Law (PERL) necessary for continued
effective administration of the California Public Employees'
Retirement System (CalPERS). Specifically, this bill :
1)Clarifies that an agency is not required to hire a replacement
employee in order to receive reimbursement for time the
agency's employee spent on duties as a CalPERS' board member
and provides a reimbursement equivalent to the pro rata salary
and benefits paid to the elected CalPERS board member by the
agency.
2)Repeals obsolete statutory language that authorized CalPERS to
invest in exchange traded options, as specified, bringing code
into conformity with Proposition 21 of 1984 and Proposition
162 of 1992 and deleting potential misinformation regarding
the manner in which CalPERS can invest in options trading.
3)Gives CalPERS flexibility to decide whether to send statements
by mail or electronically. If CalPERS elects to send
statements by mail, this bill prohibits CalPERS from sending a
statement to a retiree who has provided CalPERS a written
request not to receive statements. If CalPERS elects to not
send statements by mail, this bill:
a) Requires CalPERS to notify retirees of their right to
receive statements by mail; and
b) Requires CalPERS to send a statement by mail to a
retiree who has provided CalPERS a written request to
receive statements by mail.
4)Permits CalPERS, at its discretion, to require local agencies
to enter a contract for coverage in the Public Employee
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Medical and Hospital Care Act (PEMHCA) in addition to, or in
lieu of, simply filing a resolution.
5)Clarifies that CalPERS can refuse to contract with a local
agency or decide not to permit amendments to existing
contracts for benefits that are not specifically authorized in
PEMHCA.
6)Requires an affirmative vote of a majority of the governing
board to approve the contract for PEHMCA.
EXISTING LAW :
1)Authorizes CalPERS to reimburse an employing agency of an
elected CalPERS board member for time the board member was on
leave from the agency for official CalPERS business, as
specified, if the agency employs another person to replace the
employee serving on the CalPERS board.
2)Authorizes CalPERS to invest in accordance with modern
portfolio theory pursuant to Proposition 21 of 1984 and
provides CalPERS plenary authority under Proposition 162 of
1992 over investment decisions. (Prior to Proposition 21 and
Proposition 162's passage, CalPERS required specific statutory
authority to invest in certain investment vehicles).
3)Allows retirees to select to receive their retirement check
either by mail or by Electronic Funds Transfer (EFT). In
either case, CalPERS also sends a retirement payment benefit
statement.
4)Prohibits CalPERS from mailing a statement to a retiree if the
retiree has notified the system in writing that such a
statement not be sent.
5)Requires CalPERS to notify retirees of their right to request
not to receive a mailed copy of their statement if they are
receiving their retirement check by EFT.
6)Authorizes local public agencies to provide employee health
care coverage through the PEMHCA by submitting a resolution
from their governing board to CalPERS. The resolution serves
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to subject the local agency to the provisions of PEMHCA.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : According to the sponsor, CalPERS, SB 215 "would
make several minor policy and technical amendments to various
sections of the Government Code administered by CalPERS" and
"ensures the statutes administered by CalPERS are as clear and
unambiguous as possible."
Additionally, CalPERS reports that it incurs an annual cost of
$2.8 million to reimburse the State Controller for printing and
mailing benefit statements each month to approximately 92% of
retirees who receive their retirement allowance through
Electronic Funds Transfer. By authorizing CalPERS to provide
benefit statements electronically, this bill would reduce that
cost proportionately.
REGISTERED SUPPORT / OPPOSITION :
Support
California Public Employees' Retirement System (Sponsor)
California Federation of Teachers
Opposition
None on file
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957
SB 215
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