BILL ANALYSIS Ó
SB 294
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Date of Hearing: August 3, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
SB 294
(Pan) - As Amended August 1, 2016
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|Policy |Public Employees, |Vote:|6 - 0 |
|Committee: |Retirement/Soc Sec | | |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires employers that participate in the California
Public Employees' Retirement System (CalPERS) to inform
employees of the rights of returning veteran employees to
receive CalPERS credit for their periods of active service and
SB 294
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requires employers to provide veterans with the forms necessary
to claim the service credit.
FISCAL EFFECT:
Negligible fiscal impact.
COMMENTS:
1)Background and Purpose. Under existing law, a public employee
in the CalPERS retirement system who takes a leave of absence
to perform active military duty is entitled to receive salary
adjustments, retirement contributions, and applicable service
credit in the retirement system as if that employee had been
working in his or her job during the period of active military
duty.
According to the author, returning veterans have run into a
number of obstacles to receiving their owed service credit and
employer contributions. Some veterans assume the benefit is
automatic, and the CalPERS form that veterans must fill out is
seen as confusing. Because of these limitations, some
returning veterans do not receive the retirement benefit that
they are owed. Supporters of SB 294 contend that this bill
will help ensure that all veterans are aware of their benefit
and the process to claim the CalPERS credit.
2)August 1, 2016 Amendments. SB 294 was amended on August 1,
2016 to include technical amendments suggested by CalPERS.
Those amendments expanding a provision in SB 294 that requires
an employer to inform a new state or school employee of his or
her rights to purchase service credit to apply also to
non-school local members.
SB 294
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Analysis Prepared by:Luke Reidenbach / APPR. / (916)
319-2081