BILL NUMBER: SB 220 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 11, 2013
AMENDED IN SENATE MARCH 18, 2013
INTRODUCED BY Senator Beall
FEBRUARY 11, 2013
An act to amend Sections 9353, 20636, 20636.1, 20677.4,
20683.2, 20691, 20693, 20731, 20737, 20891, 21010, 21011, 21033,
21052, 21070.5, 21070.6, 21070.7, 21150, 22760, 75005, and
75505 of, and to add Section 20004 to, the Government Code, relating
to public employees' retirement.
LEGISLATIVE COUNSEL'S DIGEST
SB 220, as amended, Beall. California Public Employees' Pension
Reform Act of 2013: administration.
The Public Employees' Retirement Law (PERL) establishes
the Public Employees' Retirement System (PERS) for the purpose of
providing pension benefits to specified public employees. Existing
law also establishes the Judges' Retirement System and Judges'
Retirement System II, which provide pension benefits to judges, as
defined, and the Legislators' Retirement System, which provides
pension benefits to specified elective officers of the state, other
than judges, and to legislative statutory officers. Existing law
requires that these systems be administered by the Board of
Administration of PERS. Existing law, the California Public Employees'
Pension Reform Act of 2013 (PEPRA), on and after January 1, 2013,
generally requires a public retirement system, as defined, to modify
its plan or plans to comply with the act, as specified. Existing
law establishes the Public Employee Medical and Hospital Care Act
(PEMHCA) for the purpose of providing postemployment health care
benefits to specified retirees.
This bill would require the Board of Administration of PERS to
administer each of the retirement systems described above in
conformance with PEPRA as if the provisions of the act were contained
in the provisions governing those systems. The bill would provide
that if the board determines that there is a conflict between the
provisions of PEPRA and respective provisions of those systems, the
provisions of PEPRA control. The bill would make various changes
in PERL and in PEMHCA to conform with the requirements of
PEPRA.
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 9353 of the Government Code is amended to read:
9353. This system shall be administered by the Board of
Administration of the Public Employees' Retirement System. The board
shall administer this system in accordance with the provisions of the
Public Employees' Retirement Law to the same extent and with the
same effect as if those provisions are contained in the
Legislator's Legislators' Retirement Law, except
for those provisions which provide for the payment of an allowance
or other benefit and except for those provisions which conflict with
any provision or provisions of the Legislators' Retirement Law. To
the extent applicable, the board shall also administer this system in
conformance with the California Public Employees' Pension Reform Act
of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of
Division 7 of Title 1) to the same extent and with the same effect as
if the provisions of the act are contained in the Legislators'
Retirement Law. If the Board of Administration of the Public
Employees' Retirement System determines that there is a conflict
between the provisions of the California Public Employees' Pension
Reform Act of 2013 and this chapter, the provisions of the California
Public Employees' Pension Reform Act of 2013 shall control.
SEC. 2. Section 20004 is added to the Government Code, to read:
20004. (a) It is the intent of the Legislature, in enacting this
section and amending this part, to comply with, and implement the
provisions of, the California Public Employees' Pension Reform Act of
2013 (Article 4 (commencing with Section 7522) of Chapter 21 of
Division 7 of Title 1) to ensure the continued ability of the board
to invest the retirement fund and administer the system in conformity
with its duties and responsibilities and to ensure that members are
provided with the retirement and related benefits to which they are
entitled pursuant to law.
(b) To achieve the purposes set forth in subdivision (a), the
board shall have all powers reasonably necessary to invest the assets
associated with, and to administer and implement the provisions of,
the California Public Employees' Pension Reform Act of 2013, to the
extent and with the same effect as if the provisions of the act are
contained in the Public Employees' Retirement Law. All laws governing
the investment of the retirement fund, and the organization,
procedures, and administrative duties and responsibilities of the
board shall be applicable to the board in its administration of the
California Public Employees' Pension Reform Act of 2013, to the
extent these laws are not in conflict with, or are not inconsistent
with, the act. If the board determines that there is a conflict
between the provisions of the California Public Employees' Pension
Reform Act of 2013 and the Public Employees' Retirement Law, the
provisions of the California Public Employees' Pension Reform Act of
2013 shall control.
(c) Nothing in this section shall be construed to amend,
supersede, limit, or extend the application of the provisions of the
California Public Employees' Pension Reform Act of 2013.
SEC. 3. Section 20636 of the Government
Code is amended to read:
20636. (a) "Compensation earnable" by a member means the payrate
and special compensation of the member, as defined by subdivisions
(b), (c), and (g), and as limited by Section 21752.5.
(b) (1) "Payrate" means the normal monthly rate of pay or base pay
of the member paid in cash to similarly situated members of the same
group or class of employment for services rendered on a full-time
basis during normal working hours, pursuant to publicly available pay
schedules. "Payrate," for a member who is not in a group or class,
means the monthly rate of pay or base pay of the member, paid in cash
and pursuant to publicly available pay schedules, for services
rendered on a full-time basis during normal working hours, subject to
the limitations of paragraph (2) of subdivision (e).
(2) "Payrate" shall include an amount deducted from a member's
salary for any of the following:
(A) Participation in a deferred compensation plan.
(B) Payment for participation in a retirement plan that meets the
requirements of Section 401(k) of Title 26 of the United States Code.
(C) Payment into a money purchase pension plan and trust that
meets the requirements of Section 401(a) of Title 26 of the United
States Code.
(D) Participation in a flexible benefits program.
(3) The computation for a leave without pay of a member shall be
based on the compensation earnable by him or her at the beginning of
the absence.
(4) The computation for time prior to entering state service shall
be based on the compensation earnable by him or her in the position
first held by him or her in state service.
(c) (1) Special compensation of a member includes a payment
received for special skills, knowledge, abilities, work assignment,
workdays or hours, or other work conditions.
(2) Special compensation shall be limited to that which is
received by a member pursuant to a labor policy or agreement or as
otherwise required by state or federal law, to similarly situated
members of a group or class of employment that is in addition to
payrate. If an individual is not part of a group or class, special
compensation shall be limited to that which the board determines is
received by similarly situated members in the closest related group
or class that is in addition to payrate, subject to the limitations
of paragraph (2) of subdivision (e).
(3) Special compensation shall be for services rendered during
normal working hours and, when reported to the board, the employer
shall identify the pay period in which the special compensation was
earned.
(4) Special compensation may include the full monetary value of
normal contributions paid to the board by the employer, on behalf of
the member and pursuant to Section 20691, if the employer's labor
policy or agreement specifically provides for the inclusion of the
normal contribution payment in compensation earnable.
(5) The monetary value of a service or noncash advantage furnished
by the employer to the member, except as expressly and specifically
provided in this part, is not special compensation unless regulations
promulgated by the board specifically determine that value to be
"special compensation."
(6) The board shall promulgate regulations that delineate more
specifically and exclusively what constitutes "special compensation"
as used in this section. A uniform allowance, the monetary value of
employer-provided uniforms, holiday pay, and premium pay for hours
worked within the normally scheduled or regular working hours that
are in excess of the statutory maximum workweek or work period
applicable to the employee under Section 201 et seq. of Title 29 of
the United States Code shall be included as special compensation and
appropriately defined in those regulations.
(7) Special compensation does not include any of the following:
(A) Final settlement pay.
(B) Payments made for additional services rendered outside of
normal working hours, whether paid in lump sum or otherwise.
(C) Other payments the board has not affirmatively determined to
be special compensation.
(d) Notwithstanding any other provision of law, payrate and
special compensation schedules, ordinances, or similar documents
shall be public records available for public scrutiny.
(e) (1) As used in this part, "group or class of employment" means
a number of employees considered together because they share
similarities in job duties, work location, collective bargaining
unit, or other logical work-related grouping. One employee may not be
considered a group or class.
(2) Increases in compensation earnable granted to an employee who
is not in a group or class shall be limited during the final
compensation period applicable to the employees, as well as the two
years immediately preceding the final compensation period, to the
average increase in compensation earnable during the same period
reported by the employer for all employees who are in the same
membership classification, except as may otherwise be determined
pursuant to regulations adopted by the board that establish
reasonable standards for granting exceptions.
(f) As used in this part, "final settlement pay" means pay or cash
conversions of employee benefits that are in excess of compensation
earnable, that are granted or awarded to a member in connection with,
or in anticipation of, a separation from employment. The board shall
promulgate regulations that delineate more specifically what
constitutes final settlement pay.
(g) (1) Notwithstanding subdivision (a), "compensation earnable"
for state members means the average monthly compensation, as
determined by the board, upon the basis of the average time put in by
members in the same group or class of employment and at the same
rate of pay, and is composed of the payrate and special compensation
of the member. The computation for an absence of a member shall be
based on the compensation earnable by him or her at the beginning of
the absence and for time prior to entering state service shall be
based on the compensation earnable by him or her in the position
first held by him or her in that state service.
(2) Notwithstanding subdivision (b), "payrate" for state members
means the average monthly remuneration paid in cash out of funds paid
by the employer to similarly situated members of the same group or
class of employment, in payment for the member's services or for time
during which the member is excused from work because of holidays,
sick leave, vacation, compensating time off, or leave of absence.
"Payrate" for state members shall include:
(A) An amount deducted from a member's salary for any of the
following:
(i) Participation in a deferred compensation plan established
pursuant to Chapter 4 (commencing with Section 19993) of Part 2.6.
(ii) Payment for participation in a retirement plan that meets the
requirements of Section 401(k) of Title 26 of the United States
Code.
(iii) Payment into a money purchase pension plan and trust that
meets the requirements of Section 401(a) of Title 26 of the United
States Code.
(iv) Participation in a flexible benefits program.
(B) A payment in cash by the member's employer to one other than
an employee for the purpose of purchasing an annuity contract for a
member under an annuity plan that meets the requirements of Section
403(b) of Title 26 of the United States Code.
(C) Employer "pick up" of member contributions that meets the
requirements of Section 414(h)(2) of Title 26 of the United States
Code.
(D) Disability or workers' compensation payments to safety members
in accordance with Section 4800 of the Labor Code.
(E) Temporary industrial disability payments pursuant to Article 4
(commencing with Section 19869) of Chapter 2.5 of Part 2.6.
(F) Other payments the board may determine to be within "payrate."
(3) Notwithstanding subdivision (c), "special compensation" for
state members shall mean all of the following:
(A) The monetary value, as determined by the board, of living
quarters, board, lodging, fuel, laundry, and other advantages of any
nature furnished to a member by his or her employer in payment for
the member's services.
(B) Compensation for performing normally required duties, such as
holiday pay, bonuses (for duties performed on regular work shift),
educational incentive pay, maintenance and noncash payments,
out-of-class pay, marksmanship pay, hazard pay, motorcycle pay,
paramedic pay, emergency medical technician pay, Peace Officer
Standards and Training (POST) certificate pay, and split shift
differential.
(C) Compensation for uniforms, except as provided in Section
20632.
(D) Other payments the board may determine to be within "special
compensation."
(4) "Payrate" and "special compensation" for state members do not
include any of the following:
(A) The provision by the state employer of a medical or hospital
service or care plan or insurance plan for its employees (other than
the purchase of annuity contracts as described below in this
subdivision), a contribution by the employer to meet the premium or
charge for that plan, or a payment into a private fund to provide
health and welfare benefits for employees.
(B) A payment by the state employer of the employee portion of
taxes imposed by the Federal Insurance Contribution Act.
(C) Amounts not available for payment of salaries and that are
applied by the employer for the purchase of annuity contracts
including those that meet the requirements of Section 403(b) of Title
26 of the United States Code.
(D) Benefits paid pursuant to Article 5 (commencing with Section
19878) of Chapter 2.5 of Part 2.6.
(E) Employer payments that are to be credited as employee
contributions for benefits provided by this system, or employer
payments that are to be credited to employee accounts in deferred
compensation plans. The amounts deducted from a member's wages for
participation in a deferred compensation plan may not be considered
to be "employer payments."
(F) Payments for unused vacation, annual leave, personal leave,
sick leave, or compensating time off, whether paid in lump sum or
otherwise.
(G) Final settlement pay.
(H) Payments for overtime, including pay in lieu of vacation or
holiday.
(I) Compensation for additional services outside regular duties,
such as standby pay, callback pay, court duty, allowance for
automobiles, and bonuses for duties performed after the member's
regular work shift.
(J) Amounts not available for payment of salaries and that are
applied by the employer for any of the following:
(i) The purchase of a retirement plan that meets the requirements
of Section 401(k) of Title 26 of the United States Code.
(ii) Payment into a money purchase pension plan and trust that
meets the requirements of Section 401(a) of Title 26 of the United
States Code.
(K) Payments made by the employer to or on behalf of its employees
who have elected to be covered by a flexible benefits program, where
those payments reflect amounts that exceed the employee's salary.
(L) Other payments the board may determine are not "payrate" or
"special compensation."
(5) If the provisions of this subdivision, including the board's
determinations pursuant to subparagraph (F) of paragraph (2) and
subparagraph (D) of paragraph (3), are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5 or 3560, the memorandum of understanding shall be
controlling without further legislative action, except that if the
provisions of a memorandum of understanding require the expenditure
of funds, those provisions may not become effective unless approved
by the Legislature in the annual Budget Act. No memorandum of
understanding reached pursuant to Section 3517.5 or 3560 may exclude
from the definition of either "payrate" or "special compensation" a
member's base salary payments or payments for time during which the
member is excused from work because of holidays, sick leave,
vacation, compensating time off, or leave of absence. If items of
compensation earnable are included by memorandum of understanding as
"payrate" or "special compensation" for retirement purposes for
represented and higher education employees pursuant to this
paragraph, the Department of Human Resources or the Trustees of the
California State University shall obtain approval from the board for
that inclusion.
(6) (A) Subparagraph (B) of paragraph (3) prescribes that
compensation earnable includes compensation for performing normally
required duties, such as holiday pay, bonuses (for duties performed
on regular work shift), educational incentive pay, maintenance and
noncash payments, out-of-class pay, marksmanship pay, hazard pay,
motorcycle pay, paramedic pay, emergency medical technician pay, POST
certificate pay, and split shift differential; and includes
compensation for uniforms, except as provided in Section 20632; and
subparagraph (I) of paragraph (4) excludes from compensation earnable
compensation for additional services outside regular duties, such as
standby pay, callback pay, court duty, allowance for automobile, and
bonuses for duties performed after regular work shift.
(B) Notwithstanding subparagraph (A), the Department of Human
Resources shall determine which payments and allowances that are paid
by the state employer shall be considered compensation for
retirement purposes for an employee who either is excluded from the
definition of state employee in Section 3513, or is a nonelected
officer or employee of the executive branch of government who is not
a member of the civil service.
(C) Notwithstanding subparagraph (A), the Trustees of the
California State University shall determine which payments and
allowances that are paid by the trustees shall be considered
compensation for retirement purposes for a managerial employee, as
defined in Section 3562, or supervisory employee as defined in
Section 3580.3.
(h) This section shall not apply to a new member, as defined in
Section 7522.04.
SEC. 4. Section 20636.1 of the
Government Code is amended to read:
20636.1. (a) Notwithstanding Section 20636, and Section 45102 of
the Education Code, "compensation earnable" by a school member means
the payrate and special compensation of the member, as defined by
subdivisions (b) and (c), and as limited by Section 21752.5.
(b) (1) "Payrate" means the normal monthly rate of pay or base pay
of the member paid in cash to similarly situated members of the same
group or class of employment for services rendered on a full-time
basis during normal working hours. For purposes of this part, for
classified members, full-time employment is 40 hours per week, and
payments for services rendered, not to exceed 40 hours per week,
shall be reported as compensation earnable for all months of the year
in which work is performed. "Payrate," for a member who is not in a
group or class, means the monthly rate of pay or base pay of the
member, paid in cash and pursuant to publicly available pay
schedules, for services rendered on a full-time basis during normal
working hours, subject to the limitations of paragraph (2) of
subdivision (e).
(A) "Payrate" shall include an amount deducted from a member's
salary for any of the following:
(i) Participation in a deferred compensation plan.
(ii) Payment for participation in a retirement plan that meets the
requirements of Section 401(k) or 403(b) of Title 26 of the United
States Code.
(iii) Payment into a money purchase pension plan and trust that
meets the requirements of Section 401(a) of Title 26 of the United
States Code.
(iv) Participation in a flexible benefits program.
(B) For the purposes of this section, "classified members" shall
mean members who retain membership under this system while employed
with a school employer in positions not subject to coverage under the
Defined Benefit Program under the State Teachers' Retirement System.
(C) For the purposes of this section, and Sections 20962 and
20966, "certificated members" shall mean members who retain
membership under this system while employed in positions subject to
coverage under the Defined Benefit Program under the State Teachers'
Retirement System.
(2) The computation for any leave without pay of a member shall be
based on the compensation earnable by him or her at the beginning of
the absence.
(3) The computation for time prior to entering state service shall
be based on the compensation earnable by him or her in the position
first held by him or her in state service.
(c) (1) Special compensation of a school member includes any
payment received for special skills, knowledge, abilities, work
assignment, workdays or hours, or other work conditions.
(2) Special compensation shall be limited to that which is
received by a member pursuant to a labor policy or agreement or as
otherwise required by state or federal law, to similarly situated
members of a group or class of employment that is in addition to
payrate. If an individual is not part of a group or class, special
compensation shall be limited to that which the board determines is
received by similarly situated members in the closest related group
or class that is in addition to payrate, subject to the limitations
of paragraph (2) of subdivision (e).
(3) Special compensation shall be for services rendered during
normal working hours and, when reported to the board, the employer
shall identify the pay period in which the special compensation was
earned.
(4) Special compensation may include the full monetary value of
normal contributions paid to the board by the employer, on behalf of
the member and pursuant to Section 20691, provided that the employer'
s labor policy or agreement specifically provides for the inclusion
of the normal contribution payment in compensation earnable.
(5) The monetary value of any service or noncash advantage
furnished by the employer to the member, except as expressly and
specifically provided in this part, shall not be special compensation
unless regulations promulgated by the board specifically determine
that value to be "special compensation."
(6) The board shall promulgate regulations that delineate more
specifically and exclusively what constitutes "special compensation"
as used in this section. A uniform allowance, the monetary value of
employer-provided uniforms, holiday pay, and premium pay for hours
worked within the normally scheduled or regular working hours that
are in excess of the statutory maximum workweek or work period
applicable to the employee under Section 201 et seq. of Title 29 of
the United States Code shall be included as special compensation and
appropriately defined in those regulations.
(7) Special compensation does not include any of the following:
(A) Final settlement pay.
(B) Payments made for additional services rendered outside of
normal working hours, whether paid in lump sum or otherwise.
(C) Any other payments the board has not affirmatively determined
to be special compensation.
(d) Notwithstanding any other provision of law, payrate and
special compensation schedules, ordinances, or similar documents
shall be public records available for public scrutiny.
(e) (1) As used in this part, "group or class of employment" means
a number of employees considered together because they share
similarities in job duties, work location, collective bargaining
unit, or other logical work-related grouping. Under no circumstances
shall one employee be considered a group or class.
(2) Increases in compensation earnable granted to any employee who
is not in a group or class shall be limited during the final
compensation period applicable to the employees, as well as the two
years immediately preceding the final compensation period, to the
average increase in compensation earnable during the same period
reported by the employer for all employees who are in the same
membership classification, except as may otherwise be determined
pursuant to regulations adopted by the board that establish
reasonable standards for granting exceptions.
(f) As used in this part, "final settlement pay" means any pay or
cash conversions of employee benefits that are in excess of
compensation earnable, that are granted or awarded to a member in
connection with or in anticipation of a separation from employment.
The board shall promulgate regulations that delineate more
specifically what constitutes final settlement pay.
(g) This section shall not apply to a new member, as defined in
Section 7522.04.
SEC. 5. Section 20677.4 of the
Government Code is amended to read:
20677.4. (a) (1) The normal rate of contribution for a state
miscellaneous or state industrial member whose service is not
included in the federal system shall be 6 percent of the compensation
in excess of three hundred seventeen dollars ($317) per month paid
to that member for service rendered on or after July 1, 1976.
(2) The normal rate of contribution for a state miscellaneous or
state industrial member, who has elected to be subject to Section
21353.5 and whose service is not included in the federal system,
shall be 6 percent of the member's compensation.
(3) The normal rate of contribution as established under this
subdivision for a member whose service is included in the federal
system, and whose service retirement allowance is reduced under
Section 21354.1, because of that inclusion, shall be reduced by
one-third as applied to compensation not exceeding four hundred
dollars ($400) per month for service after the date of execution of
the agreement including service in the federal system and prior to
termination of the agreement with respect to the coverage group to
which he or she belongs.
(b) The normal rate of contribution for a state miscellaneous or
state industrial member whose service has been included in the
federal system shall be 5 percent of compensation in excess of five
hundred thirteen dollars ($513) per month paid that member for
service rendered on or after July 1, 1976.
(c) The normal rate of contribution for a state miscellaneous or
state industrial member who is subject to Section 21076 ,
21076.5, or 21077 shall be 0 percent
determined in the manner described in Section 20683.2 .
(d) A member who elected to become subject to Section 21353 solely
for service rendered on or after the effective date of the election,
as authorized by subdivision (c) of Section 21070 during the period
between November 1, 1988, and October 31, 1989, is not required to
make the contributions specified in Section 21073.
(e) A member who elects to become subject to Section 21354.1, as
applicable, shall contribute at the rate specified in paragraph (1)
of subdivision (a) or paragraph (1) of subdivision (b), as determined
by the member's status with the federal system, and the rate shall
be applied from the first of the month following the date of the
election. A member who makes the election shall also contribute for
service prior to the date the contribution rate was applied, in the
manner specified in Section 21073 or 21073.1, as applicable.
(f) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall
not become effective unless and until approved by the Legislature in
the annual Budget Act.
(g) The Director of Human Resources may establish the normal rate
of contribution for a state employee who is excepted from the
definition of "state employee" in subdivision (c) of Section 3513,
and an officer or employee of the executive branch of state
government who is not a member of the civil service. The normal rate
of contribution shall be the same for all members identified in this
subdivision. The contribution rate shall be effective the beginning
of the pay period indicated by the Director of Human Resources but
shall be no earlier than the beginning of the pay period following
the date the board receives notification.
SEC. 6. Section 20683.2 of the
Government Code is amended to read:
20683.2. Equal sharing of normal costs between the state employer
and public employees shall be the standard. It shall be the standard
that employees pay at least 50 percent of normal costs and that
employers not pay any of the required employee contribution. Equal
sharing of normal costs is currently the standard for most state
employees.
(a) Notwithstanding any other section of this code, or other
provision of law in conflict with this section, except as provided in
Section 7522.30, normal contribution rates for defined benefit plans
for state employees of public employers as defined in paragraph (1)
of subdivision (i) of Section 7522.04, excluding the California State
University, shall be determined as follows:
(1) Normal cost contribution rates shall increase as follows:
(A) The contribution rate for State Peace Officer/Firefighter
members in State Bargaining Unit 6 and for State Safety members in
State Bargaining Units 1, 3, 4, 7, 9, 10, 11, 14, 15, 17, 20, and 21
will increase by 1.0 percentage point on July 1, 2013, and will
increase by an additional 1.0 percentage point on July 1, 2014.
(B) The contribution rate for State Peace Officer/Firefighter
members in State Bargaining Units 7 and 8 will increase by 1.5
percentage points on July 1, 2013, and will increase by an additional
1.5 percentage points on July 1, 2014.
(C) The contribution rate for state industrial members in State
Bargaining Units 1, 3, 4, 6, 9, 10, 11, 14, 15, 17, and 20 will
increase by 1.0 percentage point on July 1, 2013.
(D) The contribution rate for state miscellaneous and industrial
members that have elected the Second Tier benefit formula will
increase by 1.5 percentage points annually starting July 1, 2013
, until the contribution rate is equal to at least 50 percent of
normal costs rounded up to the nearest one-fourth of 1 percent .
The final annual increase in the contribution rate shall be adjusted
to less than 1.5 percent as appropriate.
(E) The contribution rate for State Safety members in State
Bargaining Unit 2 and state miscellaneous members in State Bargaining
Unit 5 will increase by 1.0 percentage point on July 1, 2013.
(F) The contribution rate for Patrol members in State Bargaining
Unit 5 will increase by 1.5 percentage points on July 1, 2013.
(2) Consistent with paragraph (1), the normal rate of contribution
shall be adjusted accordingly for related state employees who are
exempted from the definition of "state employee," or officers and
employees of the executive, legislative, or judicial branch of state
government who are not members of the civil service.
(b) Calculation of employee contribution rate increases pursuant
to this section shall be based upon compensation calculations
established pursuant to Sections 20671 to 20694, inclusive.
(c) In addition to the actuarially required contribution, savings
realized by the state employer as a result of the employee
contribution rate increases required by this section shall be
allocated to any unfunded liability, subject to appropriation in the
annual Budget Act.
SEC. 7. Section 20691 of the Government
Code is amended to read:
20691. Notwithstanding (a)
(1) Except as provided in
subdivision (b), notwithstanding any other provision
of law, a contracting agency or school employer may pay all
or a portion of the normal contributions required to be paid by a
member. Where the member is included in a group or class of
employment, the payment shall be for all members in the group or
class of employment. If an individual is not part of a group or
class, the payment shall be limited to the amount that the board
determines is payable to similarly situated members in the closest
related group or class, subject to the limitations of paragraph (2)
of subdivision (e) of Section 20636. The payments shall be reported
simply as normal contributions and shall be credited to member
accounts.
Nothing
(2) Nothing in this
section subdivision shall be construed to limit
the authority of a contracting agency or school employer to
periodically increase, reduce, or eliminate the payment by the
contracting agency or school employer of all or a portion of the
normal contributions required to be paid by members, as authorized by
this section.
(b) Notwithstanding subdivision (a), employers shall not pay a
portion of the normal contributions for members who are subject to
subdivision (c) of Section 7522.30, except where authorized pursuant
to subdivision (f) of Section 7522.30.
SEC. 8. Section 20693 of the Government
Code is amended to read:
20693. Notwithstanding (a)
Except as provided in subdivision (b), notwithstanding
any other provision of law, the state or the
Regents of the University of California may pay all or a portion of
the normal contributions required to be paid by a state member. The
payments shall be reported as employer-paid normal contributions and
shall be credited to member accounts. Nothing in this
section subdivision shall be construed to limit
the authority of the state to periodically increase, reduce, or
eliminate the payment by the state of all or a portion of the normal
contributions required to be paid by a state member, as authorized by
this section.
This section shall be subject to any applicable
collective-bargaining laws.
(b) Notwithstanding subdivision (a), employers shall not pay a
portion of the normal contributions for members who are subject to
subdivision (c) of Section 7522.30, except where authorized pursuant
to subdivision (f) of Section 7522.30.
SEC. 9. Section 20731 of the Government
Code is amended to read:
20731. (a) Notwithstanding any other provision of this part, a
member who is credited with less than the years of service specified
in Article 1 (commencing with Section 21060) of Chapter 12 who enters
employment as a member of a public retirement system supported, in
whole or in part, by state funds, including the University of
California Retirement System, or as a member of a county retirement
system, within six months of leaving state service, shall have the
right to elect to leave accumulated contributions on deposit in the
retirement fund. Failure to make an election to withdraw accumulated
contributions shall be deemed an election to leave accumulated
contributions on deposit in the retirement fund. This section shall
also apply to a member who is subject to Section 21076,
except that no election to leave contributions on deposit is required
for service that is subject to Section 21076 or
21076.5 .
(b) (1) An election to allow accumulated contributions to remain
in the retirement fund may be revoked by the member at any time,
except any of the following:
(A) While the member is employed in state service in a position in
which the member is not excluded from membership with respect to
that service.
(B) While the member is in service as a member of a public
retirement system supported, in whole or in part, by state funds,
including the University of California Retirement System.
(C) While the member is in service, entered within six months
after discontinuing state service, as a member of a county retirement
system.
(2) All accumulated contributions in a member's account up to the
time of revocation shall be distributed in accordance with an
election pursuant to Section 20735.
(3) A member who is permanently separated from all service covered
by the system, who is not subject to paragraph (1), and who attains
70 years of age shall be provided with an election to withdraw
contributions or, if vested, an election to either apply for service
retirement or to withdraw contributions. Failure to apply for service
retirement or to make an election to withdraw contributions within
90 days shall be deemed an election to withdraw contributions. If the
person fails to either apply for service retirement or elect to
withdraw contributions, or cannot, with reasonable diligence, be
located, the accumulated contributions shall be distributed in
accordance with Section 21500.
(c) A member whose membership continues under this section is
subject to the same age and disability requirements as apply to other
members for service or for disability retirement. After the
qualification of the member for retirement by reason of age, which
shall be the lowest age applicable to any membership category in
which the member has credited service, or disability, the member
shall be entitled to receive a retirement allowance based upon the
amount of the member's accumulated contributions and service standing
to the member's credit at the time of retirement and on the employer
contributions held for the member and calculated in the same manner
as for other members, except that the provisions in this part for
minimum service and disability retirement allowances shall not apply
to the member, unless the member meets the minimum service
requirements. If a basic death benefit becomes payable under Article
1 (commencing with Section 21490), Article 2 (commencing with Section
21530), and Article 5 (commencing with Section 21620) of Chapter 14
because of death before retirement of a member, the average annual
compensation earnable in the year preceding the date of termination
of that service, rather than in the year preceding death, shall be
used in computing the benefit under Articles 1, 2, and 5 of Chapter
14.
The provisions of this section, as it read prior to June 21, 1971,
shall continue with respect to a member whose membership continued
under this section on that date.
SEC. 10. Section 20737 of the Government
Code is amended to read:
20737. The account of a member who elects to be subject to
Section 21076 or 21076.5 shall be paid current year
interest through the effective date of that election for service
rendered as a state miscellaneous or state industrial member.
Interest subsequent to the effective date of that election shall
accrue at a rate determined by the board. The member shall not
receive his or her accumulated contributions plus interest until the
time of retirement or upon request after permanent separation from
state service. Interest shall be paid through the day prior to
retirement or through the date on which the claim is filed with the
Controller. This section does not apply to a member who elects to be
subject to Section 21077.
SEC. 11. Section 20891 of the
Government Code is amended to read:
20891. Section 20066 and subdivisions (a) and (b) of Section
20068 shall not apply to a state miscellaneous or state industrial
member subject to Section 21076 or Section
21076, 21076.5, or 21077 who becomes a patrol member, a state
safety member, or a state peace officer/firefighter member as a
result of an amendment to this part defining those members, or is
reclassified as a state peace officer/firefighter member pursuant to
Sections 20395 or 20398, unless the member elects to: (a) deposit in
the retirement fund an amount equal to any accumulated contributions
that he or she withdrew pursuant to Section 20737, plus an amount
equal to the interest which would have been credited to his or her
account, to the date of completion of payments, had those
contributions not been withdrawn; and, (b) deposit in the retirement
fund the amount that he or she would have contributed had he or she
not been subject to subdivision (c) of Section 20677, plus an amount
equal to the interest, to the date of completion of payments, which
would have been credited to those contributions had he or she been
subject to subdivision (a) or (b) of Section 20677.
SEC. 12. Section 21010 of the
Government Code is amended to read:
21010. Unless otherwise provided in this article, a member
electing to receive service credit for time during which he or she
was absent from state service shall contribute in a lump sum or by
installments over that period and subject to such minimum payments as
may be prescribed by regulations of the board, an amount equal to
(a) the contributions he or she would have made to this system for
the period for which current service credit is granted, assuming that
the rate of contribution under his or her employer's formula at the
rate age applicable to him or her at the beginning of his or her
first subsequent period of service in membership and his or her
compensation earnable on that date had applied to him or her during
the period for which credit is granted, plus (b) those added
contributions as may be specially required under this article as a
condition for crediting a particular absence, plus (c) the interest
that would have accrued to those contributions if they had been on
deposit at the beginning date of his or her first subsequent period
of service in membership, from that date until the date of completion
of payments. The beginning date of the first subsequent period of
service for purposes of computation of contributions and interest
shall be deemed to be the end of the period of service credited for a
member who has no subsequent return to service. For a member who is
subject to Sections 21076 and Section 21076
or 21076.5, and Section 21077, the service and contribution
rate to be used for purposes of computation shall be deemed to be the
service and contribution rate that would have been used had the
member not been subject to Sections 21076 and
Section 21076 or 21076.5, and Section 21077.
Service shall be credited as current or prior service, or both, as
it would be credited if the member had been in state service during
his or her absence. All contributions of a member under this article
shall be considered to be and shall be administered as normal
contributions.
SEC. 13. Section 21011 of the
Government Code is amended to read:
21011. Notwithstanding Section 21010, for a member electing to
receive service credit for time during which he or she was absent
from state service who is subject to Sections 21076 and
Section 21076 or 21076.5, and Section 21077, the
contribution rate to be used for the purposes of computation shall
be deemed to be the contribution rate that would have been used had
the member not been subject to Sections 21076 and
Section 21076 or 21076.5, and Section 21077.
SEC. 14. Section 21033 of the Government
Code is amended to read:
21033. A member electing to receive credit for public service
shall contribute in a lump sum or by installment payments over that
period and subject to minimum payments as may be prescribed by
regulations of the board an amount equal to (a) the contributions he
or she would have made to this system for the period for which
current service credit is granted, assuming that the rate of
contribution under his or her employer's formula at the rate age
applicable to him or her at the beginning of his or her first
subsequent period of service in membership and his or her
compensation earnable on that date had applied to him or her during
the period for which credit is granted, plus (b) the added
contribution that may be specially required under this article as a
condition for crediting particular public service, plus (c) the
interest which would have accrued to those contributions if they had
been deposited at the beginning date of his or her first subsequent
period of service in membership, from that date until the date of
completion of payments, and (d) if he or she elects to contribute in
other than one sum, interest on the unpaid balance of the amount
payable to the retirement fund, beginning on the date of the election
to receive credit. The beginning date of the first subsequent period
of service for purposes of computation of contribution and interest
shall be deemed to be the end of the period of service credited for a
member who has no subsequent return to service. For a member who is
subject to Sections 21076 and Section 21076
or 21076.5, and Section 21077, the service and contribution
rate to be used for purposes of computation shall be deemed to be the
service and contribution rate that would have been used had the
member not been subject to Sections 21076 and
Section 21076 or 21076.5, and Section 21077.
SEC. 15. Section 21052 of the
Government Code is amended to read:
21052. A member or retired former employee who elects to receive
service credit subject to this section shall contribute, in
accordance with Section 21050, an amount equal to the increase in
employer liability, using the payrate and other factors affecting
liability on the date of the request for costing of the service
credit. The methodology for calculating the amount of the
contribution shall be determined by the chief actuary and approved by
the board. A member or retired former employee electing to receive
service credit for service subject to Section 21076 , 21076.5,
or 21077 shall pay the contributions as described.
SEC. 16. Section 21070.5 of the
Government Code is amended to read:
21070.5. (a) Notwithstanding any other provision of this article,
a person who, on or after January 1, 2000, becomes a state
miscellaneous or state industrial member of the system because the
person (1) is first employed by the state, (2) returns to employment
with the state from a break in service of more than 90 days, or (3)
returns to employment with the state after ceasing to be a member
pursuant to Section 20340 or 21075, shall be subject to the benefits
provided by Section 21354.1, unless the person elects within 180 days
of membership as a state miscellaneous or state industrial member to
be subject to the Second Tier benefits provided for in Section 21076
or 21076.5, as applicable . This section shall only apply
to state miscellaneous and state industrial members who are (1)
excluded from the definition of state employee in subdivision (c) of
Section 3513, (2) employed by the executive branch of government and
are not members of the civil service, or (3) included in the
definition of state employee in subdivision (c) of Section 3513.
(b) The effective date of the election shall be the first day of
the month following the date the election is received by the system
and shall be applicable to state service rendered on and after that
date. Any election filed with the board pursuant to this section
shall also be signed by the spouse of the member.
(c) A member who makes an election authorized by this section
shall not be precluded from making a subsequent election pursuant to
Section 21073.7 to be subject to the benefits provided by Section
21354.1.
(d) Operation and application of this section are subject to the
limitations set forth in Section 21251.13.
(e) For a member subject to Section 20281.5, the 180-day election
period shall not commence until the first day of the first pay period
commencing 24 months after becoming a member of the system.
SEC. 17. Section 21070.6 of the
Government Code is amended to read:
21070.6. (a) A member who is subject to Section 21076 ,
21076.5, or 21077 may be credited at no cost with all previous
state miscellaneous or state industrial service eligible to be
credited under Second Tier benefits. A member who is entitled to
service credit under this section shall apply for and identify time
periods for that service to the board.
(b) Operation and application of this section are subject to the
limitations set forth in Section 21251.13.
(c) This section shall only apply to service credit associated
with employment periods prior to July 1, 2013.
SEC. 18. Section 21070.7 of the
Government Code is amended to read:
21070.7. Notwithstanding any other provision of this part,
Sections 21076 , 2076.5, and 21077 shall not apply to
service with the California National Guard or service as a National
Guard member regardless of any prior membership status or previous
election made.
SEC. 19. Section 21150 of the
Government Code is amended to read:
21150. (a) A member incapacitated for the performance of duty
shall be retired for disability pursuant to this chapter if he or she
is credited with five years of state service, regardless of age,
unless the person has elected to become subject to Section 21076
, 21076.5, or 21077.
(b) A member subject to Section 21076 , 21076.5, or
21077 who becomes incapacitated for the performance of duty shall be
retired for disability pursuant to this chapter if he or she is
credited with 10 years of state service, regardless of age, except
that a member may retire for disability if he or she had five years
of state service prior to January 1, 1985.
(c) For purposes of this section, "state service" includes service
to the state for which the member, pursuant to Section 20281.5, did
not receive credit.
SEC. 20. Section 22760 of the
Government Code is amended to read:
22760. "Annuitant" means:
(a) A person, other than a National Guard member defined in
Section 20380.5, who has retired within 120 days of separation from
employment and who receives a retirement allowance under any state or
University of California retirement system to which the state was a
contributing party.
(b) A surviving family member receiving an allowance in place of
an annuitant who has retired as provided in subdivision (a), or as
the survivor of a deceased employee under Section 21541, 21546,
21547, or 21547.7, or similar provisions of any other state
retirement system.
(c) A person who has retired within 120 days of separation from
employment with a contracting agency as defined in Section 22768 and
who receives a retirement allowance from the retirement system
provided by the employer, or a surviving family member who receives
the retirement allowance in place of the deceased.
(d) A judge who receives the benefits provided by subdivision (e)
of Section 75522.
(e) A person who was a state member for 30 years or more and who,
at the time of retirement, was a local member employed by a
contracting agency.
(f) A Member of the Legislature or an elective officer of the
state whose office is provided by the California Constitution, who
has at least eight years of credited service, and who meets the
following conditions:
(1) Permanently separates from state service on or after January
1, 1988, and not more than 10 years before or 10 years after his or
her minimum age for service retirement, or is an inactive member of
the Legislators' Retirement System pursuant to Section 9355.2.
(2) Receives a retirement allowance under a state retirement
system supported in whole or in part by state funds other than the
University of California Retirement System.
(g) An exempt employee who meets all of the following conditions:
(1) Has at least 10 years of credited state service that includes
at least two years of credited service while an exempt employee.
(2) Permanently separates from state service on or after January
1, 1988, and not more than 10 years before or 10 years after his or
her minimum age for service retirement.
(3) Receives a retirement allowance under a state retirement
system supported in whole or in part by state funds other than the
University of California Retirement System.
(h) A person receiving a survivor allowance pursuant to Article 3
(commencing with Section 21570) of Chapter 14 of Part 3 provided that
he or she was eligible to enroll in a health benefit plan on the
date of the member's death, on whose account the survivor allowance
is payable.
(i) (1) A family member of a deceased retired member of the State
Teachers' Retirement Plan, if the deceased member meets the following
conditions:
(A) Retired within 120 days of separation from employment.
(B) Retired before the member's school employer elected to
contract for health benefit coverage under this part.
(C) Prior to his or her death, received a retirement allowance
that did not provide for a survivor allowance to family members.
(2) The family member shall elect coverage as an annuitant within
one calendar year from the date that the deceased member's school
employer elected to contract for health benefit coverage under this
part.
(j) A person who reinstates benefits pursuant to subparagraph (ii)
of paragraph (2) of subdivision (d) of Section 7522.57.
SEC. 3. SEC. 21. Section 75005 of
the Government Code is amended to read:
75005. Notwithstanding any other provision of law, this chapter
shall be administered and governed by the Board of Administration of
the Public Employees' Retirement System in accordance with the Public
Employees' Retirement Law to the same extent and with the same
effect as if those provisions are contained in the Judges' Retirement
Law, except for those provisions which provide for the payment of an
allowance or other benefit and except for those provisions which
conflict with any provision of the Judges' Retirement Law. To the
extent applicable, the Board of Administration of the Public
Employees' Retirement System shall also administer this chapter in
conformance with the California Public Employees' Pension Reform Act
of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of
Division 7 of Title 1) to the same extent and with the same effect as
if the provisions of the act are contained in the Judges' Retirement
Law. If the Board of Administration of the Public Employees'
Retirement System determines that there is a conflict between the
provisions of the California Public Employees' Pension Reform Act of
2013 and this chapter, the provisions of the California Public
Employees' Pension Reform
Act of 2013 shall control. "State Controller" or "Controller" as
used in this chapter, or any other provision of law relating to the
chapter, shall be construed to refer to and mean the "Board of
Administration of the Public Employees' Retirement System"; however,
the Controller shall continue to perform the duties prescribed in
Sections 75092, 75097, 75101, and 75102.
All payments from the Judges' Retirement Fund shall be made upon
warrants drawn by the Controller upon demands by the Board of
Administration of the Public Employees' Retirement System.
SEC. 4. SEC. 22. Section 75505 of
the Government Code is amended to read:
75505. (a) This chapter shall be administered and governed
pursuant to the Public Employees' Retirement Law to the same extent
and with the same effect as if those provisions are contained in this
chapter, except for those provisions that provide for the payment of
an allowance or other benefit and except for those provisions that
conflict with any provision of this chapter. To the extent
applicable, the Board of Administration of the Public Employees'
Retirement System shall administer this chapter in conformance with
the California Public Employees' Pension Reform Act of 2013 (Article
4 (commencing with Section 7522) of Chapter 21 of Division 7 of Title
1) to the same extent and with the same effect as if the provisions
of the act are contained in the Judges' Retirement System II Law. If
the Board of Administration of the Public Employees' Retirement
System determines that there is a conflict between the provisions of
the California Public Employees' Pension Reform Act of 2013 and this
chapter, the provisions of the California Public Employees' Pension
Reform Act of 2013 shall control.
(b) All payments from the Judges' Retirement System II Fund shall
be made upon warrants drawn by the Controller upon demands by the
Board of Administration of the Public Employees' Retirement System.