Amended in Assembly March 17, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2456

Introduced by Assembly Member Cooley

February 19, 2016

An act to add Chapter 19 (commencing with Section 21710) to Part 3 of Division 5 of Title 2 of the Government Code, relating to public employees’ retirement.

LEGISLATIVE COUNSEL’S DIGEST

AB 2456, as amended, Cooley. Public employee retirement benefits: prefunding.

Existing law creates the Public Employees’ Retirement System, which provides defined retirement benefits to employees of the state and to employees of other public agencies contracting with the Board of Administration of the Public Employee’s Retirement System for this purpose. The benefits provided by the system are funded by employer and employee contributions and investment returns.

This bill would begin delete state the intent of the Legislature end delete begin insert require the Board of Administration of the Public Employee’s Retirement System to develop, establish, and administer the California Employers’ Pension Prefunding Trust Program in order end insert to encourage state and local public employers that provide a defined benefit pension plan to their employees to effectively manage their pension begin delete contributions payments by investing surplus funds into a trust fund to be developed, established, and administered by the board. end delete begin insert contributions. end insert

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Chapter 19 (commencing with Section 21710)
is added to Part 3 of Division 5 of Title 2 of the Government Code,
to read:

 

Chapter  19. California Employers’ Pension Prefunding
Trust Program

 

21710.  

begin delete It is the intent of the Legislature end delete begin insert In order end insert to encourage
state and local public employers that provide a defined benefit
pension plan to their employees to effectively manage their
payments toward their annually required pension begin delete contributions by
investing surplus funds into a trust fund to be developed,
established, and administered by end delete begin insert contributions, end insert the Board of
Administration of the Public Employees’ Retirement begin delete System. end delete
begin insert System shall develop, establish, and administer the California
Employers’ Pension Prefunding Trust Program. end insert