SB 1162, as amended, Berryhill. Public employees’ retirement: Mammoth Lakes Fire District.
Existing law, the Public Employees’ Retirement Law, creates the Public Employees’ Retirement System (PERS), which provides a defined benefit to its members based on age at retirement, service credit, and final compensation. Existing law vests the Board of Administration of PERS with management and control of the system. Existing law authorizes any public agency to participate in and make all or part of its employees members of PERS, as specified.
This bill would authorize the Mammoth Lakes Fire District (MLFD) to request that the board transfer, and upon that request would require the board to transfer,begin insert all or a portion ofend insert available excess assets credited to the miscellaneous member category from the MLFD’s employer account to satisfy
the MLFD’s unfunded accrued actuarial obligations for its safety plan ifbegin delete specified conditions are met.end deletebegin insert
the market value of assets attributable to the MLFD’s miscellaneous plan exceeds 150% of the amount that is the actuarial equivalent of the amount the system would be obligated to pay after the effective date of contract termination to, or on account of, persons who are or have been employed by, and on account of service rendered by them to, the MLFD, as specified.end insert
This bill would make legislative findings and declarations as to the necessity of a special statute for the Mammoth Lakes Fire District.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 20817 is added to the Government Code,
2to read:
(a) The Mammoth Lakes Fire District (MLFD) may
4request that the board transferbegin insert all or a portion ofend insert available excess
5assets credited tobegin delete theend deletebegin insert itsend insert miscellaneous memberbegin delete categoryend deletebegin insert planend insert from
6the MLFD’s employer account to satisfy the MLFD’s unfunded
7accrued actuarial obligations for its safety plan ifbegin delete both of the
8following are true of the miscellaneous plan from which the assets
9will be transferred, as of the most recently completed valuation:end delete
10(1) The actuarial value of assets attributable to the MLFD’s
11miscellaneous plan exceeds 200 percent of the accrued actuarial
12liability, as determined by the chief actuary in accordance with
13Section 20816.
14begin delete(2)end deletebegin delete end deletebegin deleteTheend deletebegin insert theend insert market value of assets attributable to the MLFD’s
15miscellaneous plan exceeds 150 percent of the amountbegin delete whichend deletebegin insert thatend insert
16 is the actuarial equivalent, including contingencies for mortality
17fluctuations, of the amount this system would be obligated to pay
18after the effective date of contract termination to, or on account
19of, persons who are or have been employed by, and on account of
20service rendered by them to, the MLFD, as
determined by the chief
21actuary in accordance with subdivision (a) of Section 20576.
22(b) Upon request, the board shall transfer the assets, in which
23case the transferred assets shall be used solely to satisfy the
24MLFD’s current unfunded accrued actuarial obligations in its
25safety plan. The transferred assets shall remain in the trust fund
26and shall be for the exclusive use of the MLFD’s safety plan.
27(c) The amount that may be transferred pursuant to this section
28shall not exceedbegin delete either of the following:end delete
29(1) The difference between the actuarial value of assets
30attributable to the MLFD’s miscellaneous plan and the amount
31described in paragraph (1) of subdivision (a).
32begin delete(2)end deletebegin delete end deletebegin deleteTheend deletebegin insert theend insert difference between the market value of assets
33attributable to the MLFD’s miscellaneous planbegin delete and the amount begin insert as of the most
P3 1described in paragraph (2) of subdivision (a).end delete
2recently completed valuation and 150 percent of the amount of
3which is the actuarial equivalent of the amount the system would
4be obligated to pay as described in subdivision (a).end insert
5(d) Before requesting the board to
transfer available excess
6assets in its miscellaneous plan to satisfy the MLFD’s unfunded
7accrued actuarial obligations for its safety plan, the MLFD shall
8notify its employees of the intended request. The notice to the
9employees shall be in writing. The notice to the employees shall
10be issued at least two weeks prior to requesting the transfer of
11assets between the plans.
12(e) The MLFD shall submit a statement in writing to the board
13that the MLFD has notified its employees as described in
14subdivision (d) in order for the board to make the transfer.
The Legislature finds and declares that a special law
16is necessary and that a general law cannot be made applicable
17within the meaning of Section 16 of Article IV of the California
18Constitution because of the unique circumstances faced by the
19Mammoth Lakes Fire District in funding its pension obligations.
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