BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 294|
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THIRD READING
Bill No: SB 294
Author: Pan (D) and Nielsen (R)
Amended: 1/4/16
Vote: 21
SENATE PUBLIC EMP. & RET. COMMITTEE: 3-0, 1/14/16
AYES: Pan, Beall, Hall
NO VOTE RECORDED: Morrell, Moorlach
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SUBJECT: Public employment: military service: return to
state service
SOURCE: CAL FIRE, Local 2881
California Association of Highway Patrolmen
Peace Officers Research Association of California
DIGEST: This bill requires that CalPERS employers inform
returning veterans of their rights to receive CalPERS credit for
their periods of active military service, and requires employers
to provide veterans with the forms necessary to claim the
service credit. Requires CalPERS to create a service credit form
that clearly states this is an employer-paid benefit. Requires
employers to also inform new employees who are veterans of their
rights to purchase CalPERS service credit for their military
service performed prior to CalPERS membership.
ANALYSIS:
SB 294
Page 2
Existing law:
1)Requires that a public employee in the CalPERS retirement
system who takes a leave of absence to perform active military
duty is entitled to certain rights upon return to public
employment, including the right to receive salary adjustments,
retirement contributions, and applicable service credit in the
retirement system as if the individual had been working in his
or her job during the period of active military duty, as
specified.
2)Requires the returning veteran, in order to receive the
retirement service credit, to file an application form with
CalPERS.
3)Requires a CalPERS employer to pay the entire cost of the
applicable service credit for a returning veteran employee, as
specified, once the employee has filed the appropriate form.
4)Allows a veteran who performed active military duty prior to
membership in CalPERS to purchase that military service in the
retirement system as additional service credit, as specified.
This type of service credit purchase is paid for entirely by
the employee with no cost to the employer.
This bill:
1)Requires CalPERS to create a separate and unique form for
returning public employee veterans that clearly states that
the veteran has no obligation to pay any portion of the
employer cost of applicable service credit during the eligible
period of military duty.
2)Requires CalPERS employers to inform returning veterans of
their rights to receive service credit in CalPERS for their
periods of military service and requires employers to provide
veterans with the appropriate CalPERS form to receive the
service credit.
3)Requires the state employer, on or before March 31, 2017, to
inform all state employees in a letter or electronic
transmission of the rights of returning veteran employees to
receive service credit in CalPERS for their military service
at no cost to the returning veterans.
SB 294
Page 3
4)Requires all CalPERS employers, upon hiring a veteran, to
inform the veteran of his or her right to purchase service
credit in CalPERS for his or her military duty prior to
employment and membership in CalPERS.
Background
According to the author:
Existing law provides that a CalPERS member who goes on
active military service is entitled to return to his or her
job following discharge from that active service. In
addition, the returning veteran is entitled to receive an
employer contribution to CalPERS for credit in CalPERS
during the time of the active military service as if the
member had remained in his or her CalPERS-covered
employment during that time. This benefit is paid for
entirely by the employer and costs nothing to the returning
veteran.
However, in order to receive this benefit, the veteran must
complete a service credit purchase form for CalPERS, and
this requirement has resulted in several problems. First,
some veterans do not realize that they are entitled to the
benefit, or they think the benefit is automatic. If the
employer or another individual does not inform the
returning veteran of the benefit and how to receive it, he
or she may not be aware that an action is required on the
veteran's part to receive the benefit.
Second, the form CalPERS uses for this benefit is
confusing. It is currently combined with another option to
allow public employees to purchase military service credit
for military service preformed prior to being a public
employee. This type of service credit is costly and some
veterans become confused and forgo applying for the service
credit they are entitled to at no charge because they
mistakenly believe it to be too expensive. Some veterans
go years without applying for this no-cost benefit, or may
never apply.
Without an application, CalPERS cannot credit service and
does not have a record of the applicable military service.
SB 294
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Veterans and their survivors, in some cases, may be losing
valuable benefits.
Related/Prior Legislation
SB 221 (Jackson, Chapter 794, Statutes of 2015) allows a state
employee who is a disabled military veteran, in his or her first
year of employment, to receive up to 96 hours of additional sick
leave for the purpose of undergoing medical treatment for his or
her military service-connected disability.
AB 372 (Eggman, Chapter 75, Statutes of 2013) requires that
whenever any veteran, widow or widower of a veteran, or spouse
of a 100% disabled veteran achieves a passing score on an
entrance examination for state employment, he or she will be
placed in the top rank of the resulting hiring eligibility list.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
SUPPORT: (Verified1/19/16)
CAL FIRE, Local 2881 (co-source)
California Association of Highway Patrolmen (co-source)
Peace Officers Research Association of California (co-source)
California Correctional Peace Officers Association
California Professional Firefighters
Organization of SMUD Employees
San Diego County Court Employees Association
San Luis Obispo County Employees Association
OPPOSITION: (Verified1/19/16)
None received
ARGUMENTS IN SUPPORT:
SB 294
Page 5
As stated by sponsors:
Current law allows for public employees who have taken a
leave of absence for active military duty to return to
their previous jobs and receive any salary increases and
/or promotions they would have received while on duty. In
addition, they are also entitled to fully employer-paid
contributions to CalPERS for applicable service credit. In
order to receive this benefit, proper paperwork must be
filed with CalPERS. Unfortunately, most public employees
are ill-informed or misinformed on their rights and do not
apply for the benefit.
According to the California Professional Firefighters:
Firefighters in California proudly serve their communities
every day. Many serve their country as reservists or,
prior to becoming a firefighter, were enlisted as active
duty members in various branches of the military. SB 294
helps to ensure that veterans who return to their public
service jobs after taking leave to perform active military
service can in fact receive the service credit that they
are entitled to in the Public Employees' Retirement System
(CalPERS). Further, this bill requires the state and
school employers that hire veterans to inform them of their
rights to purchase service credit in CalPERS for their
period of military service prior to employment.
Prepared by:Pamela Schneider / P.E. & R. / (916) 651-1519
1/20/16 15:40:00
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