SB 277, as introduced, Beall. State Peace Officers’ and Firefighters’ Defined Contribution Plan.
Existing law establishes the State Peace Officers’ and Firefighters’ Defined Contribution Plan for state peace officer/firefighter members in State Bargaining Unit 6, the California Correctional Peace Officers Association, and others as specified. The moneys in the State Peace Officers’ and Firefighters’ Defined Contribution Plan Fund are continuously appropriated. Existing law entitles a participant in the plan to a lump-sum distribution of the balance of his or her account, or installment payments if he or she is entitled to $5,000 or more, upon separation from all service for the employer for any reason other than death, disability, or retirement.
Existing law requires the Board of Administration of the Public Employees’ Retirement System to administer the Supplemental Contributions Program and requires contributions by eligible employees, as defined, participating in the program to be deposited in the Supplemental Contributions Program Fund, a continuously appropriated fund.
This bill would require that contributions to the State Peace Officers’ and Firefighters’ Defined Contribution Plan cease, prohibit new members from participating in the plan, and would require that the plan be terminated as prescribed. The bill would require all moneys in the State Peace Officers’ and Firefighters’ Defined Contribution Plan Fund to be distributed, as specified, including requiring that, if not elected otherwise, amounts that become payable from the fund be rolled over under existing federal law to the Supplemental Contributions Program. The bill would provide for rollover contributions to separate rollover contribution accounts in the Supplemental Contributions Program, as specified, and would provide for the distribution of amounts held in the participant’s account. By changing the circumstances under which moneys in the State Peace Officers’ and Firefighters’ Defined Contribution Fund would be distributed, and by providing for an increase in contributions to the Supplemental Contributions Program, this bill would make an appropriation.
Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 22960.4 is added to the Government
2Code, to read:
(a) The Legislature finds and declares that an
4agreement between the exclusive representative of state peace
5officer and firefighter members in Bargaining Unit 6 and the
6employer has eliminated the employer contributions to the plan
7provided in Section 22960.60.
8(b) The following shall occur:
9(1) All contributions to the plan shall cease.
10(2) New participants shall be prohibited from participating in
12(3) The plan shall be terminated on the later of January 1, 2014,
13or upon obtaining appropriate approvals from the Internal Revenue
14Service, including a favorable determination letter on plan
15termination from the Internal Revenue Service.
16(4) Subject to paragraph (3), all moneys in the fund shall be
17distributed in accordance with this part and federal law. If not
18elected otherwise, amounts that become payable from the fund
19under this section shall be rolled over under Section 401(a)(31) of
20Title 26 of the United States Code to the Supplemental
21Contributions Program established in accordance with Section
Section 22960.99 of the Government Code is amended
(a) The plan’s obligations to a participant,
4beneficiary, or nonparticipant spouse who has applied for a
5lump-sum benefit cease upon distribution of the lump-sum benefit.
6(1) Deposit in the United States mail of a warrant drawn in favor
7of the participant, beneficiary, or nonparticipant spouse and
8addressed to the latest address on file for that person constitutes
9distribution of the benefit.
10(2) Deposit in the United States mail of a notice that the
11requested electronic funds transfer has been made as directed by
12the participant, beneficiary, or nonparticipant spouse constitutes
13distribution of the benefit.
14(3) If the participant, beneficiary, or nonparticipant spouse has
15elected on a form prescribed by the board to transfer all or a
16specific portion of the account that is eligible for a direct
17trustee-to-trustee transfer under Section 401(a)(31) of Title 26 of
18the United States Code, deposit in the United States mail of a notice
19that the requested transfer has been made constitutes distribution
20of the benefit.
21(b) The plan’s obligations to a participant, beneficiary, or
22nonparticipant spouse who elected to receive a benefit in the form
23of installment payments or an annuity cease upon distribution of
24the final payment.
25(1) Deposit in the United States mail of a warrant drawn in favor
26of the participant, beneficiary, or nonparticipant spouse and
27addressed to the latest address on file for that person constitutes
28distribution of the benefit.
29(2) Deposit in the United States mail of a notice that the
30requested electronic funds transfer has been made as directed by
31the participant, beneficiary, or nonparticipant spouse constitutes
32distribution of the benefit.
33(c) Distribution under paragraph (1), (2), or (3) of subdivision
34(a) or paragraph (1) or (2) of subdivision (b) pursuant to the board’s
35determination in good faith of the existence, identity, or other facts
36relating to entitlement of persons constitutes a complete discharge
37and release of the board, system, and plan from liability for
Section 22970.58 of the Government Code is amended
The board may amend the plan to permit a participant
8to transfer funds from an eligible retirement plan into this plan to
9the extent that the transfers are allowed under applicable federal
10and state laws, and pursuant to the terms and conditions established
11by the board.
Section 22970.855 of the Government Code is amended
The board may amend the plan to permit a
20participant to withdraw some or all of his or her after-tax
21contributions without requiring the participant to terminate from
22the plan to the extent that this in-service distribution is allowed
23under applicable federal and state laws, and pursuant to the terms
24and conditions established by the board.