BILL NUMBER: SB 220 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 17, 2013
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, 19144, 20636, 20636.1,
20677.4, 20683.2, 20691, 20692, 20693, 20731, 20737,
20891, 20909, 21010, 21011, 21033, 21052, 21060,
21070.5, 21070.6, 21070.7, 21092, 21150, 21202,
22760, 22772, 75005, and 75505 of, and
to add Section 20004 to, and to repeal and add Article
8 (commencing with Section 21220) to Chapter 12 of Part 3 of
Division 5 of Title 2 of, 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 Employees '
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.
The bill would repeal and add provisions addressing employment after
retirement to provide for conformance with the
requirements of PEPRA, subject to specified exceptions including
provisions accounting for the suspension and payment of the
retirement allowance of an elective officer. The bill prescribe
requirements for the calculation of the retirement allowance of
members with service in different retirement systems, at least one of
which is subject to PEPRA, with different minimum retirement ages,
when the member retires before 52 years of age, as specified.
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 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 19144 of the Government
Code is amended to read:
19144. Subject to Sections 21223 and 21224
Article 8 (commencing with Section 21220) of Chapter 12 of Part
3 , a person who has retired from state civil service may be
employed temporarily in a civil service position at any time
following retirement, provided that the position is either:
(a) In the class in which the person had permanent or probationary
status or a career executive assignment appointment at the time of
retirement.
(b) In another class to which the person could have been
permanently transferred, reinstated, or demoted at the time of
retirement.
SEC. 2. SEC. 3. 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. SEC. 4. 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.
and following 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. SEC. 5. 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.
and following 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. SEC. 6. 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 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. SEC. 7. 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 state peace officer/firefighter
members in State Bargaining Unit 6 and for State
Safety 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 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
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
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. SEC. 8. Section 20691 of the
Government Code is amended to read:
20691. (a) (1) Except as provided in subdivision (b),
notwithstanding any other 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.
(2) Nothing in this 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. 9. Section 20692 of the Government
Code is amended to read:
20692. (a) Where a contracting agency employer or a school
employer has elected to pay all or a portion of the normal
contributions of members of a group or class of employment pursuant
to Section 20691, the employer may, pursuant to a labor policy or
agreement, stop paying those contributions during the final
compensation period applicable to the members and, instead, increase
the payrate of the members by an amount equal to the normal
contributions paid by the employer on behalf of the employees in the
pay period immediately prior to the final compensation period or
increase the payrate of the members by an amount established by a
labor policy or agreement in existence and in effect on June 30,
1993. That amount shall not exceed the amount of the normal member
contributions that are required to be paid by the members.
(b) This section shall not apply to any contracting agency or to
any school employer unless and until the contracting agency or the
school employer elects to be subject to this section by amendment to
its contract made in the manner prescribed for approval of contracts,
except an election among the employees is not required. In the case
of contracts made after July 1, 1994, the section shall not apply
unless incorporated by express provision in the contract. However, no
school employer may act pursuant to this section unless and until
the board approves a request for the amendment of the contract of a
school employer to authorize termination of the payment. A school
employer shall not submit a request for a contract amendment unless
there is on file a request to terminate that payment from the county
superintendent of schools office and each school district, community
college district, and other school entity within the jurisdiction of
that school employer.
(c) Before adopting this provision, the governing body of a
contracting agency or school employer shall, with timely public
notice, place the consideration of this section on the agendas of two
consecutive public meetings of the governing body, at which time,
full disclosure shall be made of the nature of the benefit, the
additional employer contributions, and the funding therefor. Only
after the second of these public meetings may the governing body
adopt this section. The employer shall notify the board of the
employer's compliance with this subdivision at the time of the
governing body's application to adopt this section.
(d) Persons hired after the effective date of an employer's
contract amendment to include this section shall be informed by the
employer of how this benefit relates to their total compensation and
benefit package.
(e) The additional employer contributions required under this
section shall be computed as a level percentage of member
compensation. The additional contribution rate required at the time
this section is added to a contract shall not be less than the sum of
(1) the actuarial normal cost, plus (2) in the case of a contract
amendment, the additional contribution required to amortize the
increase in accrued liability attributable to the benefit elected
under this section over the unfunded actuarial liability period
currently in the agency's contract, commencing from the date this
section becomes effective in the agency's contract.
(f) For the purposes of this section, all contributions,
liabilities, actuarial interest rates, and other valuation factors
necessary to calculate the employer's contribution shall be
determined on the basis of actuarial assumptions and methods which,
in combination, provide the board's best estimate of anticipated
experience under the system. The board has the exclusive power and
duty to make these determinations.
(g) Within 30 days of notification from the board to the
contracting agency or school employer of the additional employer
contributions required pursuant to this section, the contracting
agency or school employer, or a recognized employee organization, or
both, may file with the board a request for a review of the
determination of the calculation of the additional employer
contributions. The board shall promulgate regulations governing the
conduct of the review, that shall include the means by which an
employer or recognized employee organization may submit independent
actuarial evidence regarding the additional contribution required by
this section. The board shall make the final determination on the
additional employer contributions needed to fund this contract
amendment.
(h) This section shall not apply to a new member as defined in
Section 7522.04.
SEC. 8. SEC. 10. Section 20693 of
the Government Code is amended to read:
20693. (a) Except as provided in subdivision (b), notwithstanding
any other 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 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. SEC. 11. 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 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. SEC. 12. 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. SEC. 13. 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, 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, 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. 14. Section 20909 of the
Government Code is amended to read:
20909. (a) A member who has at least five years of credited state
service, may elect, by written notice filed with the board, to make
contributions pursuant to this section and receive not less than one
year, nor more than five years, in one-year increments, of additional
retirement service credit in the retirement system.
(b) A member may elect to receive this additional retirement
service credit at any time prior to retirement by making the
contributions as specified in Sections 21050 and 21052. A member may
not elect additional retirement service credit under this section
more than once.
(c) For purposes of this section, "additional retirement service
credit" means time that does not qualify as public service, military
service, leave of absence, or any other time recognized for service
credit by the retirement system.
(d) Additional retirement service credit elected pursuant to this
section may not be counted to meet the minimum qualifications for
service or disability retirement or for health care benefits, or any
other benefits based upon years of service credited to the member.
(e) This section only applies to the following members:
(1) A member while he or she is employed in state service at the
time of the additional retirement service credit election.
(2) A member of the system defined in Section 20324.
(f) For purposes of this section, "state service" means service as
defined in Section 20069.
(g) This section shall apply only to an application to purchase
additional retirement credit that was received by the system prior to
January 1, 2013, that is subsequently approved by the system.
SEC. 12. SEC. 15. 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 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 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. SEC. 16. 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 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 Section 21076 or
21076.5, and Section 21077.
SEC. 14. SEC. 17. 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 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 Section 21076 or 21076.5, and
Section 21077.
SEC. 15. SEC. 18. 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. 19. Section 21060 of the
Government Code is amended to read:
21060. (a) A member shall be retired for service upon his or her
written application to the board if he or she has attained age 50 and
is credited with five years of state service, except as provided in
Sections 7522.20, 21061, 21062, and 21074.
(b) 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.
(c) For a member who has accrued service credit subject to the
benefit formula in Section 7522.20 and who has also accrued service
credit, within this retirement system, subject to a benefit formula
with a minimum retirement age earlier than 52 years of age, the
member shall receive an actuarially reduced equivalent benefit, upon
retirement, for service subject to Section 7522.20, if the member
retires before 52 years of age but at, or after, the minimum age of
retirement permitted for other service within this retirement system
and the member is credited with at least five years of service.
SEC. 16. SEC. 20. 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. SEC. 21. 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. SEC. 22. Section 21070.7 of
the Government Code is amended to read:
21070.7. Notwithstanding any other provision of this part,
Sections 21076, 2076.5, 21076.5, 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. 23. Section 21092 of the
Government Code is amended to read:
21092. (a) The normal rate of contribution
for a local miscellaneous member subject to this article shall be 2
percent of compensation paid the member. A contracting agency may pay
all or a portion of the member's normal contributions, pursuant to
Section 20691.
(b) Notwithstanding subdivision (a), a new member, as defined in
Section 7522.04, shall have a contribution rate of at least 50
percent of the normal cost, pursuant to Section 7522.30.
SEC. 19. SEC. 24. 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. 25. Section 21202 of the
Government Code is amended to read:
21202. A person employed in violation of Section 21220
21221 shall be reinstated to membership in the
category in which, and on the date on which, the unlawful employment
occurred.
SEC. 26. Article 8 (commencing with Section 21220)
of Chapter 12 of Part 3 of Division 5 of Title 2 of the
Government Code is repealed.
SEC. 27. Article 8 (commencing with Section 21220)
is added to Chapter 12 of Part 3 of Division 5 of Title 2
of the Government Code , to read:
Article 8. Employment After Retirement
21220. This article shall be deemed to comply with Article 4 of
Chapter 21 of Division 7 of Title 1, known as the California Public
Employees' Pension Reform Act of 2013, and shall be considered to
further its purposes, including, but not limited to, the purposes of
Sections 7522.56 and 7522.57.
21221. (a) This section shall apply to any person who is
receiving a pension benefit from this system.
(b) A retired person shall not serve, be employed by, or be
employed through a contract directly by, a public employer in this
system if the retiree receives the benefit without reinstatement from
retirement, except as permitted by this article.
(c) A person who retires from a public employer in this system may
serve without reinstatement from retirement or loss or interruption
of benefits provided by this system upon appointment by the
appointing power or the governing body of a public employer either
during an emergency to prevent stoppage of public business or because
the retired person has skills needed to perform work of limited
duration.
(d) (1) Appointments of the person authorized under this section
shall not exceed a total for all employers in this system of 960
hours in a fiscal year. The monthly rate of pay for the employment
shall not be less than the minimum, nor exceed the maximum, paid by
the employer to other employees performing comparable duties, divided
by 173.333 to equal an hourly rate. A retired person appointed
pursuant to this section shall not receive any benefit, incentive,
compensation in lieu of benefits, or other form of compensation in
addition to the hourly pay rate. A retired person whose employment
without reinstatement is authorized by this section shall acquire no
service credit or retirement rights under this section with respect
to the employment unless he or she reinstates from retirement.
(2) Appointments of the person authorized under this section as a
member of the academic staff of the California State University shall
not exceed a total for all employers in this system of 960 hours in
a fiscal year or 50 percent of the hours the member worked during the
last fiscal year of service prior to retirement, whichever is less.
The monthly rate of pay for the employment shall not be less than the
minimum, nor exceed the maximum, paid by the employer to other
employees performing comparable duties, divided by 173.333 to equal
an hourly rate. A retired person appointed pursuant to this section
shall not receive any benefit, incentive, compensation in lieu of
benefits, or other form of compensation in addition to the hourly pay
rate. A retired person whose employment without reinstatement is
authorized by this section shall acquire no service credit or
retirement rights under this section with respect to the employment
unless he or she reinstates from retirement.
(e) (1) Notwithstanding subdivision (c), any retired person shall
not be eligible to serve or be employed by a public employer in this
system if, during the 12-month period prior to an appointment
described in this section, the retired person received any
unemployment insurance compensation arising out of prior employment
subject to this article with a public employer. A retiree shall
certify in writing to the employer upon accepting an offer of
employment that he or she is in compliance with this requirement.
(2) A retired person who accepts an appointment after receiving
unemployment insurance compensation as described in this subdivision
shall terminate that employment on the last day of the current pay
period and shall not be eligible for reappointment subject to this
section for a period of 12 months following the last day of
employment.
21222. (a) A retired person shall not be eligible to be employed
pursuant to this article for a period of 180 days following the date
of retirement unless he or she meets one of the following conditions:
(1) The public employer certifies the nature of the employment and
that the appointment is necessary to fill a critically needed
position before 180 days has passed and the appointment has been
approved by the governing body of the employer in a public meeting.
The appointment may not be placed on a consent calendar.
(2) The state employer certifies the nature of the employment and
that the appointment is necessary to fill a critically needed state
employment position before 180 days has passed and the appointment
has been approved by the Department of Human Resources. The
department may establish a process to delegate appointing authority
to individual state agencies, but shall audit the process to
determine if abuses of the system occur. If necessary, the department
may assume an agency's appointing authority for retired workers and
may charge the department an appropriate amount for administering
that authority.
(3) The retiree is eligible to participate in the Faculty Early
Retirement Program pursuant to a collective bargaining agreement with
the California State University that existed prior to January 1,
2013, or has been included in subsequent agreements.
(4) The retiree is a public safety officer or firefighter hired to
perform a function or functions regularly performed by a public
safety officer or firefighter.
(b) A retired person who accepted a retirement incentive upon
retirement shall not be eligible to be employed pursuant to this
section for a period of 180 days following the date of retirement and
subdivision (a) shall not apply.
21223. A retired person who has not attained the normal
retirement age shall have a bona fide separation in service to the
extent required by the Internal Revenue Code, and the regulations
promulgated thereunder, before working after retirement pursuant to
this article. The board shall establish, by regulation, the criteria
under which a bona fide separation is satisfied.
21224. (a) A person employed in violation of this article shall
be reinstated to membership in the category in which, and on the date
on which, the unlawful employment occurred.
(b) Upon reinstatement, the retired member employed in violation
of this article shall:
(1) Reimburse this system for any retirement allowance received
during the period or periods of employment that are in violation of
law.
(2) Pay to this system an amount of money equal to the employee
contributions that would otherwise have been paid during the period
or periods of unlawful employment, plus interest thereon.
(3) Contribute toward reimbursement of this system for
administrative expenses incurred in responding to this situation, to
the extent the member is determined by the executive officer to be at
fault.
(c) Any public employer in this system that employs a retired
member in violation of this article shall, upon reinstatement of the
retired member:
(1) Pay to this system an amount of money equal to employer
contributions that would otherwise have been paid for the period or
periods of time that the member is employed in violation of this
article, plus interest thereon.
(2) Contribute toward reimbursement of this system for
administrative expenses incurred in responding to this situation, to
the extent the employer is determined by the executive officer of
this system to be at fault.
(d) This section shall not apply to violations under subdivision
(e) of Section 21221.
21225. (a) This section shall apply to any retired person who is
receiving a pension benefit from a public retirement system and is
first appointed on or after January 1, 2013, to a salaried position
on a state board or commission.
(b) A person who is retired from a public retirement system may
serve without reinstatement from retirement or loss or interruption
of benefits provided that appointment is to a part-time state board
or commission. A retired person whose employment without
reinstatement is authorized by this subdivision shall acquire no
benefits, service credit, or retirement rights with respect to the
employment. Unless otherwise defined in statute, for the purpose of
this section, a part-time appointment shall mean an appointment with
a salary of no more than sixty thousand dollars ($60,000) annually,
which shall be increased in any fiscal year in which a general salary
increase is provided for state employees. The amount of the increase
provided by this section shall be comparable to, but shall not
exceed, the percentage of the general salary increases provided for
state employees during that fiscal year.
(c) A person who is retired from the Public Employees' Retirement
System shall not serve on a full-time basis on a state board or
commission without reinstatement unless that person serves as a
nonsalaried member of the board or commission and receives only per
diem authorized to all members of the board or commission. A person
who serves as a nonsalaried member of a board or commission shall not
earn any service credit or benefits in the Public Employees'
Retirement System or make contributions with respect to the service
performed.
(d) A person retired from a public retirement system other than
the Public Employees' Retirement System who is appointed on a
full-time basis to a state board or commission shall choose one of
the following options:
(1) The person may serve as a nonsalaried member of the board or
commission and continue to receive his or her retirement allowance,
in addition to any per diem authorized to all members of the board or
commission. The person shall not earn service credit or benefits in
the Public Employees' Retirement System and shall not make
contributions with respect to the service performed.
(2) (A) The person may suspend his or her retirement allowance or
allowances and instate as a new member of the Public Employees'
Retirement System for the service performed on the board or
commission. The pensionable compensation earned pursuant to this
paragraph shall not be eligible for reciprocity with any other
retirement system or plan.
(B) Upon retiring for service after serving on the board or
commission, the appointee shall be entitled to reinstatement of any
suspended benefits, including employer provided retiree health
benefits, that he or she was entitled to at the time of being
appointed to the board or commission.
(e) Notwithstanding subdivisions (c) and (d), a person who retires
from a public employer may serve without reinstatement from
retirement or loss or interruption of benefits provided by the
retirement system upon appointment to a full-time state board
pursuant to Section 5075 of the Penal Code.
21230. A retired person may serve without reinstatement from
retirement or loss or interruption of benefits provided by this
system, as follows:
(a) (1) As a subordinate judicial officer whose position, upon
retirement, is converted to a judgeship pursuant to Section 69615,
and he or she returns to work in the converted position, and the
employer is a trial court.
(2) As a retiree who takes office as a judge of a court of record
pursuant to Article VI of the California Constitution or a retiree of
the Judges' Retirement System I or the Judges' Retirement System II
who is appointed to serve as a retired judge.
(b) (1) As an elective officer.
(2) If a retired person serves without reinstatement from
retirement in an elective office and part or all of his or her
retirement allowance is based on service in that elective office, the
portion of the allowance based on service in that elective office
shall be suspended during incumbency in that elective office. The
entire retirement allowance shall be paid for time on and after the
person vacates the elective office in the monthly amount payable had
the allowance not been suspended. The governing body of every
employer other than the state shall cause immediate notice to be
given to this system of the election of any retired person to an
office of the employer.
SEC. 20. SEC. 28. 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. 29. Section 22772 of the
Government Code is amended to read:
22772. (a) "Employee" means:
(1) An officer or employee of the state or of any agency,
department, authority, or instrumentality of the state, including the
University of California.
(2) An employee who is employed by a contracting agency and
participates in a publicly funded retirement system provided by the
contracting agency, or an officer or official of a contracting
agency.
(3) An annuitant receiving a retirement allowance pursuant to
Section 21228 who is employed by a contracting agency.
(4)
(3) A teaching associate, lecturer, coach, or
interpreter employed by the California State University who is
appointed to work in an academic year classification for at least six
weighted teaching units for one semester, or for at least six
weighted teaching units for two or more consecutive quarter terms.
This paragraph does not apply to a state member employed by the
California State University, unless provided for in a memorandum of
understanding reached pursuant to Chapter 12 (commencing with Section
3560) of Division 4 of Title 1 or authorized by the Trustees of the
California State University for employees excluded from collective
bargaining.
(5)
(4) All employees in job classes specified in
subdivision (a) of Section 14876.
(b) Except as otherwise provided by this part, "employee" does not
include any of the following:
(1) A person employed on an intermittent, irregular, or less than
half-time basis, or an employee similarly situated.
(2) A National Guard member described in Section 20380.5.
SEC. 21. SEC. 30. 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. 22. SEC. 31. 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.