BILL ANALYSIS �
SB 215
Page 1
SENATE THIRD READING
SB 215 (Beall)
As Amended August 5, 2013
Majority vote
SENATE VOTE :33-2
PUBLIC EMPLOYEES 6-0 APPROPRIATIONS 17-0
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|Ayes:|Bonta, Allen, |Ayes:|Gatto, Harkey, Bigelow, |
| |Jones-Sawyer, Mullin, | |Bocanegra, Bradford, Ian |
| |Rendon, Wieckowski | |Calderon, Campos, |
| | | |Donnelly, Eggman, Gomez, |
| | | |Hall, Holden, Linder, |
| | | |Pan, Quirk, Wagner, Weber |
|-----+--------------------------+-----+--------------------------|
| | | | |
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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)Allows a CalPERS member who has remarried a former spouse to
again name that person as an optional settlement beneficiary.
4)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
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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.
5)Allows a retiree, on or after January 1, 2014, to name as a
new option beneficiary the same person as previously covered
under the member's option election if due to divorce the
judgment dividing the community property awarded the total
interest in the retirement system to the retired member.
6)Permits CalPERS, at its discretion, to require local agencies
to enter a contract for coverage in the Public Employee
Medical and Hospital Care Act (PEMHCA) in addition to, or in
lieu of, simply filing a resolution.
7)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.
8)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).
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3)Allows a CalPERS member that names his or her spouse as the
beneficiary of an optional settlement 2, 3 or 4, and is later
awarded the total interest in his or her benefit through an
annulment, legal separation, or dissolution judgment, to have
his or her allowance recalculated under a new option and name
a different person as the beneficiary. However, current law
does not allow the member to name the same person as a
beneficiary of an optional settlement 2, 3 or 4 when he or she
remarries a former spouse.
4)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.
5)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.
6)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.
7)Allows a retiree to name a different option beneficiary
following a divorce if the judgment dividing the community
property awards the total interest in the retirement system to
the retired member.
8)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
to subject the local agency to the provisions of PEMHCA.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, CalPERS estimates it will save about $2 million
because of the provisions of this bill.
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
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$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.
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957
FN: 0001551