Amended in Senate January 4, 2016

Senate Bill No. 294

Introduced by begin delete Senator end delete begin insert Senators end insert Pan begin insert and Nielsen end insert

February 23, 2015

An act to amend begin delete Section 22350 of the Education Code, relating to the State Teachers’ Retirement System. end delete begin insert Sections 19780, 20997, and 21029 of the Government Code, relating to public employment. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 294, as amended, Pan. begin delete The State Teachers’ Retirement System. end delete begin insert Public employment: military service: return to state service. end insert

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The State Civil Service Act requires the reinstatement of a permanent, probationary, or exempt employee who returns from active duty military service to his or her former position, as specified. Under existing law, reinstatement to an employee’s former exempt position reestablishes the employee’s tenure and civil service reinstatement rights, if any, as they existed immediately prior to his or her military leave. Existing law requires an employer to contribute an amount equal to the contributions that would have been made by the employer and the employee during the employee’s absence if that absence is due to military service or service with the uniformed services, except as specified.

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This bill would require the Board of Administration of the Public Employees’ Retirement System to adopt a separate and unique form to be used by a member to receive credit for his or her military service, as specified. The bill would require employers to inform the member of his or her rights within 30 days of the member’s return to state service by utilizing that form. The bill would additionally require an employer, on or before April 1, 2017, to provide a letter or electronic communication to all employees informing them of their right to receive credit for military or uniform service pursuant to these provisions.

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Existing law authorizes a member to elect at any time prior to retirement, in accordance with regulations of the Board of Administration of the Public Employees’ Retirement System, to receive credit for public service, in addition to his or her current and prior service credit.

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This bill would require an employer to inform a new employee at the time of hire of his or her rights to purchase service credit as a result of that person’s active service, prior to entering the retirement system, in the Armed Forces of the United States or the active service in the Merchant Marine of the United States prior to 1950, as specified.

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Existing law establishes the State Teachers’ Retirement System in order to provide a financially sound plan for the retirement, with adequate retirement allowances, of teachers in the public schools of this state, teachers in schools supported by this state, and other persons employed in connection with the schools. Existing law finds and declares that it is necessary and desirable that the system obtain the best possible investment expertise.

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This bill would make a technical, nonsubstantive change to that provision.

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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:

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begin insert SECTION 1. end insert   

end insert

begin insert Section 19780 of the end insert begin insert Government Code end insert begin insert is
amended to read: end insert

19780.  

begin insert (a) end insert begin insert   end insert Except as provided in Section 19781, a permanent,
probationary, or exempt employee who begins active duty within
90 calendar days from the effective date of his or her long-term
military leave or within 10 calendar days from the effective date
of his or her short-term or emergency military leave and who
returns to state service within six months after termination of
military service under his or her long-term military leave or within
10 days after termination of military service under his or her
short-term or emergency military leave shall be reinstated to his
or her former position. Reinstatement to an employee’s former
exempt position under this section or Section 19783 shall
reestablish the employee’s tenure and civil service reinstatement
rights, if any, as they existed immediately prior to his or her
military leave pursuant to this section or resignation pursuant to
Section 19783. For the purpose of this section any period of
rehabilitation afforded by the United States or the state following
active duty shall be considered as military service and termination
of the state military emergency by the Governor shall be considered
termination of military service.

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(b) Within 30 days of the employee’s return to state service, the
appointing authority shall inform the employee of his or her rights
pursuant to Section 20997, and provide the member with the form
authorized pursuant to subdivision (f) of that section.

end insert begin insert

(c) Prior to April 1, 2017, every appointing authority shall
provide a letter or electronic communication to all employees
informing them of the rights provided by Section 20997.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 20997 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

20997.  

(a) Notwithstanding any other provision of this part,
for each member other than a National Guard member absent
without compensation due to military service pursuant to Section
20990, the employer shall contribute an amount equal to the
contributions that would have been made by the employer and the
employee during the absence. The employer’s contribution pursuant
to this section shall be based upon the member’s compensation
earnable and the contribution rates in effect at the commencement
of the absence, if any of the following apply:

(1) The member returns to state service within six months after
receiving a discharge from military service other than dishonorable.

(2) The member returns to state service within six months after
completion of any period of rehabilitation offered by the United
States government, except that for purposes of this section,
rehabilitation solely for education purposes shall not be considered.

(3) The member is granted a leave of absence from the state
employer as of the same date the member was reinstated to that
employment from military service, provided that the member
returns to state service at the conclusion of the leave.

(4) The member is placed on a state civil service reemployment
list within six months after receiving a discharge from military
service other than dishonorable and returns to state service upon
receipt of an offer of reemployment.

(5) The member retires from this system for service or disability
during the course of an absence from state service for military
service.

(6) The member dies during the course of an absence from state
service for military service.

(b) Any member on leave from state service for military service
who elects to continue contributing to this system shall be entitled
to a refund of those contributions upon request.

(c) Any member who withdrew contributions during or in
contemplation of his or her military service is entitled to the
benefits of this section irrespective of whether the contributions
are redeposited. The rate for future contributions for the member
shall be based upon the member’s age at the time the member
commenced a leave of absence from state service for service in
the military.

(d) The employer’s contribution pursuant to this section may
be made either in lump sum, or it may be included in its monthly
contribution as adjusted by inclusion of the amount due in the
employer rate at the valuation most near in time to the event
causing the employer’s liability for those contributions. The
employer’s contributions pursuant to this section shall be used
solely for the purpose of paying retirement and death benefits and
shall not be paid to the member whose contributions are refunded
to him or her pursuant to Section 20735.

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(e) Within 30 days of the member’s return to state service, the
employer shall inform the member of his or her rights pursuant to
this section, and provide the employee with the form authorized
pursuant to subdivision (f).

end insert begin insert

(f) The board shall authorize a separate and unique form to be
used by the member to receive credit for his or her military service
as provided by this section. The form shall not pertain to any other
type of service credit purchase and shall clearly state that the
member has no obligation to pay for any portion of the employer
contribution required by this section.

end insert

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begin insert SEC. 3. end insert   

end insert

begin insert Section 21029 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

21029.  

(a) “Public service” with respect to a state member or
a school member or with respect to a retired former state employee
or a retired former school employee, who retired on or after
December 31, 1981, also means active service, prior to entering
this system as a state member or as a school member, of not less
than one year in the Armed Forces of the United States, or, active
service, prior to entering this system as a state or school member,
of not less than one year in the Merchant Marine of the United
States prior to January 1, 1950. Public service credit shall not be
granted if the service described above terminated with a discharge
under dishonorable conditions. The public service credit to be
granted for that service shall be on the basis of one year of credit
for each year of credited state service, but shall not exceed a total
of four years of public service credit regardless of the number of
years of either that service or subsequent state service. A state
member or a school member or a retired former state employee or
a retired former school employee electing to receive a credit for
that public service shall have been credited with at least one year
of state service on the date of election or the date of retirement.

(b) An election by a state member or a school member with
respect to public service under this section may be made only while
the member is in state, university, or school employment, and a
retired former employee shall have retired immediately following
service as a state member or as a school member. The retirement
allowance of a retired former state employee or a retired former
school employee, who elects to receive public service credit
pursuant to this section shall be increased only with respect to the
allowance payable on and after the date of election. For the
purposes of this section, a member as described in subdivision (d)
of Section 20776, shall also mean a former state employee or a
former school employee, who retired on or after December 31,
1981.

(c) A member or retired former employee who elects to become
subject to this section shall make the contributions as specified in
Sections 21050 and 21052.

(d) The board has no duty to locate or notify any eligible former
member who is currently retired or to provide the name or address
of any such retired person, agency, or entity for the purpose of
notifying those persons.

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(e) An employer shall inform a new employee at the time of hire
of his or her rights to purchase service credit under this section.

end insert

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SECTION 1.  

Section 22350 of the Education Code is amended
to read:

22350.  

The Legislature finds and declares that the changing
economic conditions and increasing complexity in the investment
market make it necessary and desirable that the system obtain the
best possible investment expertise.

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CORRECTIONS:

Text--Page 4.

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