BILL NUMBER: AB 1878	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 28, 2016

INTRODUCED BY   Assembly Member Jones-Sawyer

                        FEBRUARY 10, 2016

   An act to amend Section 21623 of the Government Code, relating to
public employees' retirement, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1878, as amended, Jones-Sawyer. Public Employees' Retirement
System: school members: postretirement death benefit.
   The Public Employees' Retirement Law requires that, upon the death
of any state or school member after retirement and while receiving a
retirement allowance, the sum of $2,000 be paid to the member's
designated beneficiary, as specified. Existing law provides that the
additional employer contributions required to fund this benefit be
computed as a level percentage of member compensation, and these are
deposited in the Public Employees' Retirement Fund, a continuously
appropriated fund.
   This bill, on and after January 1, 2017, would increase the amount
of payment to school members, described above, to  $7,045.
By   not less than $5,000. The bill would authorize the
Board of   Administration of the Public Employees'
Retirement System to adjust the death benefit amount following each
actuarial valuation based on changes in the All Urban California
Consumer Price Index, as specified. 
    By  increasing contributions to the Public Employees'
Retirement Fund, 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 1.  Section 21623 of the Government Code is amended to
read:
   21623.  (a) (1) In lieu of benefits provided by Section 21620 or
21622, upon the death of any retired state member, after retirement
and while receiving a retirement allowance from this system, there
shall be paid to the beneficiary whom he or she shall nominate by
written designation duly executed and filed with the board, the sum
of two thousand dollars ($2,000), to be provided from contributions
by the employer.
   (2) On and after January 1, 2017, in lieu of benefits provided by
Section 21620 or 21622, upon the death of any retired school member,
after retirement and while receiving a retirement allowance from this
system, there shall be paid to the beneficiary whom he or she shall
nominate by written designation duly executed and filed with the
board, the sum of  seven thousand forty-five dollars
($7,045),   not less than five thousand dollars
($5,000),  to be provided from contributions by the employer.

   (b) The Board of Administration of the Public Employees'
Retirement System may adjust the death benefit amount following each
actuarial valuation based on changes in the All Urban California
Consumer Price Index and adopt as a plan amendment any adjusted
amount.  
   (b) 
    (c)  For the purposes of this section, all
contributions, liabilities, actuarial interest rates, and other
valuation factors shall be determined on the basis of actuarial
assumptions and methods that, in the aggregate, are reasonable and
that, in combination, offer the actuary's best estimate of
anticipated experience under this system. 
   (c) 
    (d)  The additional employer contributions required
under this section shall be computed as a level percentage of member
compensation. 
   (d)
    (e)  This section shall apply to a school employer and a
retired school member whose death after retirement occurs on or
after January 1, 2001. This section shall not apply to any
contracting agency or local member, except those contracting agencies
that are school employers and those school districts or community
college districts as defined in subdivision (i) of Section 20057.