BILL ANALYSIS Ó
SB 294
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Date of Hearing: June 22, 2016
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT, AND SOCIAL
SECURITY
Rob Bonta, Chair
SB
294 (Pan) - As Amended January 4, 2016
SENATE VOTE: 38-0
SUBJECT: Public employment: military service: return to state
service
SUMMARY: Requires employers that participate in the California
Public Employees' Retirement System (CalPERS) to 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, as specified. Specifically, 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.
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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.
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.
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
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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.
FISCAL EFFECT: According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS: 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
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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. Veterans
and their survivors, in some cases, may be losing valuable
benefits."
Supporters state, "SB 294 ensures all veterans are aware of
their entitlement and the process to claim the CalPERS credit.
The bill requires employers to make returning veterans aware of
their eligibility, and also requires employers to provide the
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appropriate form to eligible employees. These two very
important steps will assist veterans in receiving a benefit they
are not only entitled to, but that they are most deserving of."
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REGISTERED SUPPORT / OPPOSITION:
Support
California Association of Highway Patrolmen (Co-Sponsor)
Peace Officers Research Association of California (Co-Sponsor)
California Correctional Peace Officers Association
California Federation of Teachers
Opposition
None on file
Analysis Prepared by:Karon Green / P.E.,R., & S.S. / (916)
319-3957
SB 294
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