BILL NUMBER: SB 800 CHAPTERED 10/10/99 CHAPTER 633 FILED WITH SECRETARY OF STATE OCTOBER 10, 1999 APPROVED BY GOVERNOR OCTOBER 5, 1999 PASSED THE SENATE SEPTEMBER 10, 1999 PASSED THE ASSEMBLY SEPTEMBER 9, 1999 AMENDED IN ASSEMBLY SEPTEMBER 9, 1999 AMENDED IN SENATE APRIL 8, 1999 INTRODUCED BY Senator Dunn FEBRUARY 25, 1999 An act to amend Sections 21362, 21363, 21369, and 21370 of, and to add Section 21389 to, the Government Code, relating to the Public Employees' Retirement System. LEGISLATIVE COUNSEL'S DIGEST SB 800, Dunn. Public Employees' Retirement System: local safety members. The Public Employees' Retirement Law limits retirement allowances of local safety members to 75% of final compensation. This bill would increase that limit to 85% for local safety members who retire on and after January 1, 2000. This bill would incorporate additional amendments to Section 21362 of the Government Code proposed by SB 400, contingent upon the prior enactment of that bill. This bill would incorporate additional amendments to Section 21363 of the Government Code proposed by AB 813, SB 400, or both, contingent upon the prior enactment of one or both of those bills. This bill would incorporate additional amendments to Section 21369 of the Government Code proposed by SB 400, contingent upon the prior enactment of that bill. This bill would incorporate additional amendments to Section 21370 of the Government Code proposed by AB 813, contingent upon the prior enactment of that bill. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 21362 of the Government Code is amended to read: 21362. (a) The current service pension for patrol members and the combined current and prior service pensions for local safety members with respect to local safety service rendered to a contracting agency that is subject to this section is a pension derived from the contributions of the employer sufficient when added to the service retirement annuity that is derived from the accumulated normal contributions of the patrol member at the date of his or her retirement to equal the fraction of one-fiftieth of his or her final compensation set forth opposite his or her age at retirement taken to the preceding completed quarter year, in the following table, multiplied by the number of years of patrol service and local safety service subject to this section with which he or she is credited at retirement. Age at retirement Fraction 50 ............................................. 1.0000 50 1/4 ......................................... 1.0175 50 1/2 ......................................... 1.0350 50 3/4 ......................................... 1.0525 51 ............................................. 1.0700 51 1/4 ......................................... 1.0875 51 1/2 ......................................... 1.1050 51 3/4 ......................................... 1.1225 52 ............................................. 1.1400 52 1/4 ......................................... 1.1575 52 1/2 ......................................... 1.1750 52 3/4 ......................................... 1.1925 53 ............................................. 1.2100 53 1/4 ......................................... 1.2275 53 1/2 ......................................... 1.2450 53 3/4 ......................................... 1.2625 54 ............................................. 1.2800 54 1/4 ......................................... 1.2975 54 1/2 ......................................... 1.3150 54 3/4 ......................................... 1.3325 55 and over .................................... 1.3500 (b) In no event shall the current service pension and the combined current and prior service pensions under this section for all service to all employers exceed an amount that, when added to the service retirement annuity related to that service, equals 75 percent of final compensation. For state members who retire on or after January 1, 1995, and with respect to service for all state employers under this section, the benefit shall not exceed 80 percent of final compensation. For local members who retire on or after January 1, 2000, the benefit shall not exceed 85 percent of final compensation. If the pension relates to service to more than one employer and would otherwise exceed that maximum, the pension payable with respect to each employer shall be reduced in the same proportion as the allowance based on service to that employer bears to the total allowance computed as though there were no limit, so that the total of the pensions shall equal the maximum. Where a state or local member retiring on or after January 1, 1995, has service under this section with both state and local agency employers, the higher maximum shall apply and the additional benefit shall be funded by increasing the member's pension payable with respect to the employer for whom the member performed the service subject to the higher maximum. (c) This section shall not apply to any contracting agency, unless and until the agency elects to be subject to the provisions of this section by amendment to its contract made in the manner prescribed for approval of contracts or, in the case of contracts made after the date this section is operative, by express provision in the contract making the contracting agency subject to the provisions of this section. (d) This section shall supersede Section 21363, 21366, 21368, 21369, or 21370, whichever is then applicable, with respect to patrol and local safety members who retire after the date this section becomes applicable to their respective employers. (e) This section shall not apply to state safety or state peace officer/firefighter members. (f) The Legislature reserves, with respect to any member subject to this section, the right to provide for the adjustment of industrial disability retirement allowances because of earnings of a retired person and modification of the conditions and qualifications required for retirement for disability as it may find appropriate because of the earlier ages of service retirement made possible by the benefits under this section. SEC. 1.5. Section 21362 of the Government Code is amended to read: 21362. (a) The current service pension for patrol members and the combined current and prior service pensions for local safety members with respect to local safety service rendered to a contracting agency that is subject to this section is a pension derived from the contributions of the employer sufficient when added to the service retirement annuity that is derived from the accumulated normal contributions of the patrol member at the date of his or her retirement to equal the fraction of one-fiftieth of his or her final compensation set forth opposite his or her age at retirement taken to the preceding completed quarter year, in the following table, multiplied by the number of years of patrol service and local safety service subject to this section with which he or she is credited at retirement: Age at retirement Fraction 50 ............................................. 1.0000 50 1/4 ......................................... 1.0175 50 1/2 ......................................... 1.0350 50 3/4 ......................................... 1.0525 51 ............................................. 1.0700 51 1/4 ......................................... 1.0875 51 1/2 ......................................... 1.1050 51 3/4 ......................................... 1.1225 52 ............................................. 1.1400 52 1/4 ......................................... 1.1575 52 1/2 ......................................... 1.1750 52 3/4 ......................................... 1.1925 53 ............................................. 1.2100 53 1/4 ......................................... 1.2275 53 1/2 ......................................... 1.2450 53 3/4 ......................................... 1.2625 54 ............................................. 1.2800 54 1/4 ......................................... 1.2975 54 1/2 ......................................... 1.3150 54 3/4 ......................................... 1.3325 55 and over .................................... 1.3500 (b) In no event shall the current service pension and the combined current and prior service pensions under this section for all service to all employers exceed an amount that, when added to the service retirement annuity related to that service, equals 75 percent of final compensation. For state members who retire on or after January 1, 1995, and with respect to service for all state employers under this section, the benefit shall not exceed 80 percent of final compensation. For local members who retire on or after January 1, 2000, the benefit shall not exceed 85 percent of final compensation. If the pension relates to service to more than one employer and would otherwise exceed that maximum, the pension payable with respect to each employer shall be reduced in the same proportion as the allowance based on service to that employer bears to the total allowance computed as though there were no limit, so that the total of the pensions shall equal the maximum. Where a state or local member retiring on or after January 1, 1995, has service under this section with both state and local agency employers, the higher maximum shall apply and the additional benefit shall be funded by increasing the member's pension payable with respect to the employer for whom the member performed the service subject to the higher maximum. (c) This section shall not apply to any contracting agency, unless and until the agency elects to be subject to the provisions of this section by amendment to its contract made in the manner prescribed for approval of contracts or, in the case of contracts made after the date this section is operative, by express provision in the contract making the contracting agency subject to the provisions of this section. (d) This section shall supersede Section 21363, 21366, 21368, 21369, or 21370, whichever is then applicable, with respect to patrol and local safety members who retire after the date this section becomes applicable to their respective employers. (e) This section shall not apply to state safety or state peace officer/firefighter members. (f) With respect to patrol members, this section shall only apply to patrol members who are not employed by the state on or after January 1, 2000. (g) The Legislature reserves, with respect to any member subject to this section, the right to provide for the adjustment of industrial disability retirement allowances because of earnings of a retired person and modification of the conditions and qualifications required for retirement for disability as it may find appropriate because of the earlier ages of service retirement made possible by the benefits under this section. SEC. 2. Section 21363 of the Government Code is amended to read: 21363. (a) The combined current and prior service pensions for state peace officer/firefighter members subject to this section with respect to state peace officer/firefighter service and the combined current and prior service pensions for local safety members with respect to local safety service rendered to a contracting agency that is subject to this section is a pension derived from the contributions of the employer sufficient when added to the service retirement annuity that is derived from the accumulated normal contributions of the state peace officer/firefighter member at the date of his or her retirement to equal the fraction of one-fiftieth of his or her final compensation set forth opposite his or her age at retirement taken to the preceding completed quarter-year, in the following table, multiplied by the number of years of state peace officer/firefighter service subject to this section with which he or she is credited at retirement. Age at Retirement Fraction 50 ................................... 1.0000 50 1/4 ............................... 1.0125 50 1/2 ............................... 1.0250 50 3/4 ............................... 1.0375 51 ................................... 1.0500 51 1/4 ............................... 1.0625 51 1/2 ............................... 1.0750 51 3/4 ............................... 1.0875 52 ................................... 1.1000 52 1/4 ............................... 1.1125 52 1/2 ............................... 1.1250 52 3/4 ............................... 1.1375 53 ................................... 1.1500 53 1/4 ............................... 1.1625 53 1/2 ............................... 1.1750 53 3/4 ............................... 1.1875 54 ................................... 1.2000 54 1/4 ............................... 1.2125 54 1/2 ............................... 1.2250 54 3/4 ............................... 1.2375 55 and over .......................... 1.2500 (b) In no event shall the current service pension and the combined current and prior service pensions under this section for all service to all employers exceed an amount that, when added to the service retirement annuity related to that service, equals 75 percent of final compensation. For state members who retire on or after January 1, 1995, and with respect to service for all state employers under this section except as provided in Sections 21363.5 and 21363.6, the benefit shall not exceed 80 percent of final compensation. For local members who retire on or after January 1, 2000, the benefit shall not exceed 85 percent of final compensation. If the pension relates to service to more than one employer, or this section and Section 21369, and would otherwise exceed that maximum, the pension payable with respect to each section or employer shall be reduced in the same proportion as the allowance bears to the total allowance computed as though there were no limit, so that the total of the pensions shall equal the maximum. Where a state or local member retiring on or after January 1, 1995, has service under this section with both state and local agency employers including, but not limited to, service subject to Section 21363.5 or 21363.6, the higher maximum shall apply and the additional benefit, if any, shall be funded by increasing the member's pension payable with respect to the employer for whom the member performed the service subject to the higher maximum. (c) The Legislature reserves, with respect to any member subject to this section, the right to provide for the adjustment of industrial disability retirement allowances because of earnings of a retired person and modification of the conditions and qualifications required for retirement for disability as it may find appropriate because of the earlier age of service retirement made possible by the benefits under this section. (d) This section may be applied to related supervisory classes or confidential positions for the respective bargaining units specified in this section. (e) (1) This section shall be operative with respect to state peace officer/firefighter members in Corrections Bargaining Unit No. 6, Protective Services and Public Safety Bargaining Unit No. 7, or Firefighters Bargaining Unit No. 8, in accordance with a memorandum of understanding reached between the state and the exclusive bargaining agent in the respective unit pursuant to Chapter 10.3 (commencing with Section 3512) of Division 4 of Title 1. This section also shall be operative with respect to the state peace officer/firefighter members employed by a California State University police department who are in Public Safety Unit No. 8 in accordance with a memorandum of understanding reached between the Trustees of the California State University and the recognized employee organization pursuant to Chapter 12 (commencing with Section 3560) of Division 4 of Title 1. (2) This section shall also be operative with respect to a "state peace officer/firefighter member" defined in subdivision (a) of Section 20396 if authorized by, and in accordance with, a memorandum of understanding reached between the Trustees of the California State University and the recognized employee organization pursuant to Chapter 12 (commencing with Section 3560) of Division 4 of Title 1. (3) Nothing in this section or in any other provision of law affected by Chapter 1320 of the Statutes of 1984 or Chapter 234 of the Statutes of 1986 shall be construed as authorizing any future negotiation with respect to whether or not any bargaining unit specified in this section whose memorandum of understanding was previously approved by the Legislature pursuant to law and this section, shall continue to remain within the state peace officer/firefighter membership category. (4) The operative date of this section with respect to members in each of the bargaining units specified in this section shall be as provided for in the memorandum of understanding. (f) This section shall not apply to a person whose effective date of retirement is prior to the operative date of this section with respect to the bargaining unit of the person. (g) This section shall be known as, and may be cited as the State Peace Officers' and Fire Fighters' Retirement Act. (h) The Legislature reserves the right to subsequently modify or amend this part in order to completely effectuate the intent and purposes of this section and the right to not provide any new comparable advantages if disadvantages to employees result from any modification or amendment. (i) This section shall not apply to a contracting agency nor its employees until, first, it is agreed to in a written memorandum of understanding entered into by an employer and representatives of employees and, second, the contracting agency elects to be subject to it by amendment to its contract made in the manner prescribed for approval of contracts or in the case of a new contract, by express provision of the contract. The operative date of this section with respect to a local safety member shall be the effective date of the amendment to his or her employer's contract electing to be subject to this section. SEC. 2.2. Section 21363 of the Government Code is amended to read: 21363. (a) The combined current and prior service pensions for state peace officer/firefighter members subject to this section with respect to state peace officer/firefighter service and the combined current and prior service pensions for local safety members with respect to local safety service rendered to a contracting agency that is subject to this section is a pension derived from the contributions of the employer sufficient when added to the service retirement annuity that is derived from the accumulated normal contributions of the state peace officer/firefighter member at the date of his or her retirement to equal the fraction of one-fiftieth of his or her final compensation set forth opposite his or her age at retirement taken to the preceding completed quarter-year, in the following table, multiplied by the number of years of state peace officer/firefighter service subject to this section with which he or she is credited at retirement: Age at Retirement Fraction 50 ................................... 1.0000 50 1/4 ............................... 1.0125 50 1/2 ............................... 1.0250 50 3/4 ............................... 1.0375 51 ................................... 1.0500 51 1/4 ............................... 1.0625 51 1/2 ............................... 1.0750 51 3/4 ............................... 1.0875 52 ................................... 1.1000 52 1/4 ............................... 1.1125 52 1/2 ............................... 1.1250 52 3/4 ............................... 1.1375 53 ................................... 1.1500 53 1/4 ............................... 1.1625 53 1/2 ............................... 1.1750 53 3/4 ............................... 1.1875 54 ................................... 1.2000 54 1/4 ............................... 1.2125 54 1/2 ............................... 1.2250 54 3/4 ............................... 1.2375 55 and over .......................... 1.2500 (b) In no event shall the current service pension and the combined current and prior service pensions under this section for all service to all employers exceed an amount that, when added to the service retirement annuity related to that service, equals 75 percent of final compensation. For state members who retire on or after January 1, 1995, and with respect to service for all state employers under this section except as provided in Sections 21363.5 and 21363.6, the benefit shall not exceed 80 percent of final compensation. For local members who retire on or after January 1, 2000, the benefit shall not exceed 85 percent of final compensation. If the pension relates to service to more than one employer, or this section and Section 21369, and would otherwise exceed that maximum, the pension payable with respect to each section or employer shall be reduced in the same proportion as the allowance bears to the total allowance computed as though there were no limit, so that the total of the pensions shall equal the maximum. Where a state or local member retiring on or after January 1, 1995, has service under this section with both state and local agency employers including, but not limited to, service subject to Section 21363.5 and 21363.6, the higher maximum shall apply and the additional benefit, if any, shall be funded by increasing the member's pension payable with respect to the employer for whom the member performed the service subject to the higher maximum. (c) The Legislature reserves, with respect to any member subject to this section, the right to provide for the adjustment of industrial disability retirement allowances because of earnings of a retired person and modification of the conditions and qualifications required for retirement for disability as it may find appropriate because of the earlier age of service retirement made possible by the benefits under this section. (d) This section may be applied to related supervisory classes or confidential positions for the respective bargaining units specified in this section. (e) (1) This section shall be operative with respect to state peace officer/firefighter members in Corrections Bargaining Unit No. 6, Protective Services and Public Safety Bargaining Unit No. 7, or Firefighters Bargaining Unit No. 8, in accordance with a memorandum of understanding reached between the state and the exclusive bargaining agent in the respective unit pursuant to Chapter 10.3 (commencing with Section 3512) of Division 4 of Title 1. (2) This section also shall be operative with respect to the state peace officer/firefighter members employed by a California State University police department who are in Public Safety Unit No. 8 in accordance with a memorandum of understanding reached between the Trustees of the California State University and the recognized employee organization pursuant to Chapter 12 (commencing with Section 3560) of Division 4 of Title 1. (3) This section shall also be operative with respect to a "state peace officer/firefighter member" defined in subdivision (a) of Section 20396 if authorized by, and in accordance with, a memorandum of understanding reached between the Trustees of the California State University and the recognized employee organization pursuant to Chapter 12 (commencing with Section 3560) of Division 4 of Title 1. (4) Nothing in this section or in any other provision of law affected by Chapter 1320 of the Statutes of 1984 or Chapter 234 of the Statutes of 1986 shall be construed as authorizing any future negotiation with respect to whether or not any bargaining unit specified in this section whose memorandum of understanding was previously approved by the Legislature pursuant to law and this section, shall continue to remain within the state peace officer/firefighter membership category. (5) The operative date of this section with respect to members in each of the bargaining units specified in this section shall be as provided for in the memorandum of understanding. (6) With the exception of state peace officer/firefighter members for service rendered for the legislative or judicial branch of government, this section shall apply to any state peace officer/firefighter member who is not employed by the state on or after January 1, 2000. (f) This section shall be known as, and may be cited as the State Peace Officers' and Fire Fighters' Retirement Act. (g) The Legislature reserves the right to subsequently modify or amend this part in order to completely effectuate the intent and purposes of this section and the right to not provide any new comparable advantages if disadvantages to employees result from any modification or amendment. (h) This section shall not apply to a contracting agency nor its employees until, first, it is agreed to in a written memorandum of understanding entered into by an employer and representatives of employees and, second, the contracting agency elects to be subject to it by amendment to its contract made in the manner prescribed for approval of contracts or in the case of a new contract, by express provision of the contract. The operative date of this section with respect to a local safety member shall be the effective date of the amendment to his or her employer's contract electing to be subject to this section. SEC. 2.4. Section 21363 of the Government Code is amended to read: 21363. (a) The combined current and prior service pensions for state peace officer/firefighter members subject to this section with respect to state peace officer/firefighter service and the combined current and prior service pensions for local safety members with respect to local safety service rendered to a contracting agency that is subject to this section is a pension derived from the contributions of the employer sufficient when added to the service retirement annuity that is derived from the accumulated normal contributions of the state peace officer/firefighter member at the date of his or her retirement to equal the fraction of one-fiftieth of his or her final compensation set forth opposite his or her age at retirement taken to the preceding completed quarter-year, in the following table, multiplied by the number of years of state peace officer/firefighter service subject to this section with which he or she is credited at retirement. Age at Retirement Fraction 50 ................................... 1.0000 50 1/4 ............................... 1.0125 50 1/2 ............................... 1.0250 50 3/4 ............................... 1.0375 51 ................................... 1.0500 51 1/4 ............................... 1.0625 51 1/2 ............................... 1.0750 51 3/4 ............................... 1.0875 52 ................................... 1.1000 52 1/4 ............................... 1.1125 52 1/2 ............................... 1.1250 52 3/4 ............................... 1.1375 53 ................................... 1.1500 53 1/4 ............................... 1.1625 53 1/2 ............................... 1.1750 53 3/4 ............................... 1.1875 54 ................................... 1.2000 54 1/4 ............................... 1.2125 54 1/2 ............................... 1.2250 54 3/4 ............................... 1.2375 55 and over .......................... 1.2500 (b) In no event shall the current service pension and the combined current and prior service pensions under this section for all service to all employers exceed an amount that, when added to the service retirement annuity related to that service, equals 75 percent of final compensation. For state members who retire on or after January 1, 1995, and with respect to service for all state employers under this section except as provided in Sections 21363.5 and 21363.6, the benefit shall not exceed 80 percent of final compensation. For local members who retire on or after January 1, 2000, the benefit shall not exceed 85 percent of final compensation. If the pension relates to service to more than one employer, or this section and Section 21369, and would otherwise exceed that maximum, the pension payable with respect to each section or employer shall be reduced in the same proportion as the allowance bears to the total allowance computed as though there were no limit, so that the total of the pensions shall equal the maximum. Where a state or local member retiring on or after January 1, 1995, has service under this section with both state and local agency employers including, but not limited to, service subject to Section 21363.5 or 21363.6, the higher maximum shall apply and the additional benefit, if any, shall be funded by increasing the member's pension payable with respect to the employer for whom the member performed the service subject to the higher maximum. (c) The Legislature reserves, with respect to any member subject to this section, the right to provide for the adjustment of industrial disability retirement allowances because of earnings of a retired person and modification of the conditions and qualifications required for retirement for disability as it may find appropriate because of the earlier age of service retirement made possible by the benefits under this section. (d) This section may be applied to related supervisory classes or confidential positions for the respective bargaining units specified in this section. (e) (1) This section shall be operative with respect to state peace officer/firefighter members in Corrections Bargaining Unit No. 6, Protective Services and Public Safety Bargaining Unit No. 7, or Firefighters Bargaining Unit No. 8, in accordance with a memorandum of understanding reached between the state and the exclusive bargaining agent in the respective unit pursuant to Chapter 10.3 (commencing with Section 3512) of Division 4 of Title 1. (2) This section also shall be operative with respect to the state peace officer/firefighter members employed by a California State University police department who are in Public Safety Unit No. 8 in accordance with a memorandum of understanding reached between the Trustees of the California State University and the recognized employee organization pursuant to Chapter 12 (commencing with Section 3560) of Division 4 of Title 1. (3) This section shall also be operative with respect to a "state peace officer/firefighter member" defined in subdivision (a) of Section 20396 if authorized by, and in accordance with, a memorandum of understanding reached between the Trustees of the California State University and the recognized employee organization pursuant to Chapter 12 (commencing with Section 3560) of Division 4 of Title 1. (4) Nothing in this section or in any other provision of law affected by Chapter 1320 of the Statutes of 1984 or Chapter 234 of the Statutes of 1986 shall be construed as authorizing any future negotiation with respect to whether or not any bargaining unit specified in this section whose memorandum of understanding was previously approved by the Legislature pursuant to law and this section, shall continue to remain within the state peace officer/firefighter membership category. (5) The operative date of this section with respect to members in each of the bargaining units specified in this section shall be as provided for in the memorandum of understanding. (6) This section shall not apply to a person whose effective date of retirement is prior to the operative date of this section with respect to the bargaining unit of the person. (f) This section shall be known as, and may be cited as the State Peace Officers' and Fire Fighters' Retirement Act. (g) The Legislature reserves the right to subsequently modify or amend this part in order to completely effectuate the intent and purposes of this section and the right to not provide any new comparable advantages if disadvantages to employees result from any modification or amendment. (h) This section shall not apply to a contracting agency nor its employees until, first, it is agreed to in a written memorandum of understanding entered into by an employer and representatives of employees and, second, the contracting agency elects to be subject to it by amendment to its contract made in the manner prescribed for approval of contracts or in the case of a new contract, by express provision of the contract. The operative date of this section with respect to a local safety member shall be the effective date of the amendment to his or her employer's contract electing to be subject to this section. However, this section shall not apply to any local safety member in the employ of an employer not subject to this section on January 1, 2000. SEC. 2.6. Section 21363 of the Government Code is amended to read: 21363. (a) The combined current and prior service pensions for state peace officer/firefighter members subject to this section with respect to state peace officer/firefighter service and the combined current and prior service pensions for local safety members with respect to local safety service rendered to a contracting agency that is subject to this section is a pension derived from the contributions of the employer sufficient when added to the service retirement annuity that is derived from the accumulated normal contributions of the state peace officer/firefighter member at the date of his or her retirement to equal the fraction of one-fiftieth of his or her final compensation set forth opposite his or her age at retirement taken to the preceding completed quarter-year, in the following table, multiplied by the number of years of state peace officer/firefighter service subject to this section with which he or she is credited at retirement. Age at Retirement Fraction 50 ................................... 1.0000 50 1/4 ............................... 1.0125 50 1/2 ............................... 1.0250 50 3/4 ............................... 1.0375 51 ................................... 1.0500 51 1/4 ............................... 1.0625 51 1/2 ............................... 1.0750 51 3/4 ............................... 1.0875 52 ................................... 1.1000 52 1/4 ............................... 1.1125 52 1/2 ............................... 1.1250 52 3/4 ............................... 1.1375 53 ................................... 1.1500 53 1/4 ............................... 1.1625 53 1/2 ............................... 1.1750 53 3/4 ............................... 1.1875 54 ................................... 1.2000 54 1/4 ............................... 1.2125 54 1/2 ............................... 1.2250 54 3/4 ............................... 1.2375 55 and over .......................... 1.2500 (b) In no event shall the current service pension and the combined current and prior service pensions under this section for all service to all employers exceed an amount that, when added to the service retirement annuity related to that service, equals 75 percent of final compensation. For state members who retire on or after January 1, 1995, and with respect to service for all state employers under this section except as provided in Sections 21363.5 and 21363.6, the benefit shall not exceed 80 percent of final compensation. For local members who retire on or after January 1, 2000, the benefit shall not exceed 85 percent of final compensation. If the pension relates to service to more than one employer, or this section and Section 21369, and would otherwise exceed that maximum, the pension payable with respect to each section or employer shall be reduced in the same proportion as the allowance bears to the total allowance computed as though there were no limit, so that the total of the pensions shall equal the maximum. Where a state or local member retiring on or after January 1, 1995, has service under this section with both state and local agency employers including, but not limited to, service subject to Section 21363.5 or 21363.6, the higher maximum shall apply and the additional benefit, if any, shall be funded by increasing the member's pension payable with respect to the employer for whom the member performed the service subject to the higher maximum. (c) The Legislature reserves, with respect to any member subject to this section, the right to provide for the adjustment of industrial disability retirement allowances because of earnings of a retired person and modification of the conditions and qualifications required for retirement for disability as it may find appropriate because of the earlier age of service retirement made possible by the benefits under this section. (d) This section may be applied to related supervisory classes or confidential positions for the respective bargaining units specified in this section. (e) (1) This section shall be operative with respect to state peace officer/firefighter members in Corrections Bargaining Unit No. 6, Protective Services and Public Safety Bargaining Unit No. 7, or Firefighters Bargaining Unit No. 8, in accordance with a memorandum of understanding reached between the state and the exclusive bargaining agent in the respective unit pursuant to Chapter 10.3 (commencing with Section 3512) of Division 4 of Title 1. (2) This section also shall be operative with respect to the state peace officer/firefighter members employed by a California State University police department who are in Public Safety Unit No. 8 in accordance with a memorandum of understanding reached between the Trustees of the California State University and the recognized employee organization pursuant to Chapter 12 (commencing with Section 3560) of Division 4 of Title 1. (3) This section shall also be operative with respect to a "state peace officer/firefighter member" defined in subdivision (a) of Section 20396 if authorized by, and in accordance with, a memorandum of understanding reached between the Trustees of the California State University and the recognized employee organization pursuant to Chapter 12 (commencing with Section 3560) of Division 4 of Title 1. (4) Nothing in this section or in any other provision of law affected by Chapter 1320 of the Statutes of 1984 or Chapter 234 of the Statutes of 1986 shall be construed as authorizing any future negotiation with respect to whether or not any bargaining unit specified in this section whose memorandum of understanding was previously approved by the Legislature pursuant to law and this section, shall continue to remain within the state peace officer/firefighter membership category. (5) The operative date of this section with respect to members in each of the bargaining units specified in this section shall be as provided for in the memorandum of understanding. (6) With the exception of state peace officer/firefighter members for service rendered for the Legislature or judicial branch of government, this section shall apply to state peace officer/firefighter members who are not employed by the state on or after January 1, 2000. (f) This section shall be known as, and may be cited as the State Peace Officers' and Fire Fighters' Retirement Act. (g) The Legislature reserves the right to subsequently modify or amend this part in order to completely effectuate the intent and purposes of this section and the right to not provide any new comparable advantages if disadvantages to employees result from any modification or amendment. (h) This section shall not apply to a contracting agency nor its employees until, first, it is agreed to in a written memorandum of understanding entered into by an employer and representatives of employees and, second, the contracting agency elects to be subject to it by amendment to its contract made in the manner prescribed for approval of contracts or in the case of a new contract, by express provision of the contract. The operative date of this section with respect to a local safety member shall be the effective date of the amendment to his or her employer's contract electing to be subject to this section. However, this section shall not apply to any local safety member in the employ of an employer not subject to this section on January 1, 2000. SEC. 3. Section 21369 of the Government Code is amended to read: 21369. (a) The combined prior and current service pension for a state safety member, and a local safety member with respect to service to a contracting agency subject to this section, upon retirement after attaining age 55, is a pension derived from contributions of an employer sufficient, when added to that portion of the service retirement annuity that is derived from the accumulated normal contributions of the member at the date of his or her retirement, to equal one-fiftieth of his or her final compensation multiplied by the number of years of state safety, police, fire, or county peace officer service that is credited to him or her as a state safety member or a local safety member subject to this section at retirement. Notwithstanding the preceding sentence, this section shall apply to the current and prior service pension for any other state safety member based on service to which it would have applied had the member, on July 1, 1971, been in employment described in Section 20403 or 20404. (b) Upon retirement for service prior to attaining age 55, the percentage of final compensation payable for each year of credited service that is subject to this section shall be the product of 2 percent multiplied by the factor set forth in the following table for his or her actual age at retirement: The percent for each year of credited service If the retirement age occurs at: is: 50 ................................. 0.713 50 1/4 ............................. 0.725 50 1/2 ............................. 0.737 50 3/4 ............................. 0.749 51 ................................. 0.761 51 1/4 ............................. 0.775 51 1/2 ............................. 0.788 51 3/4 ............................. 0.801 52 ................................. 0.814 52 1/4 ............................. 0.828 52 1/2 ............................. 0.843 52 3/4 ............................. 0.857 53 ................................. 0.871 53 1/4 ............................. 0.886 53 1/2 ............................. 0.902 53 3/4 ............................. 0.917 54 ................................. 0.933 54 1/4 ............................. 0.950 54 1/2 ............................. 0.966 54 3/4 ............................. 0.983 (c) In no event shall the total pension for all service under this section exceed an amount that, when added to the service retirement annuity related to that service, equals 75 percent of final compensation. For state members who retire on or after January 1, 1995, and with respect to service for all state employers under this section, the benefit shall not exceed 80 percent of final compensation. For local members who retire on or after January 1, 2000, the benefit shall not exceed 85 percent of final compensation. If the pension relates to service to more than one employer and would otherwise exceed that maximum, the pension payable with respect to each employer shall be reduced in the same proportion as the allowance based on service to that employer bears to the total allowance computed as though there were no limit, so that the total of those pensions shall equal the maximum. Where a state or local member retiring on or after January 1, 1995, has service under this section with both state and local agency employers, the higher maximum shall apply and the additional benefit shall be funded by increasing the member's pension payable with respect to the employer for whom the member performed the service subject to the higher maximum. (d) This section shall not apply to a person whose effective date of retirement is prior to July 1, 1971. (e) The Legislature reserves, with respect to any member subject to this section, the right to provide for the adjustment of industrial disability retirement allowances because of earnings of a retired person and modification of the conditions and qualifications required for retirement for disability as it may find appropriate because of the earlier age of service retirement made possible by the benefits under this section. (f) The percentage of final compensation provided in this section shall be reduced by one-third as applied to that part of the member's final compensation that does not exceed four hundred dollars ($400) per month for service after the effective date of coverage of a member under the federal system. This paragraph shall not apply to a member who retires after the date upon which coverage under the federal system of persons in his or her employment terminates. It shall not apply to a local safety member employed by a contracting agency electing to be subject to this section after March 7, 1973, unless the agency elects to be subject to this paragraph by amendment to its contract or by appropriate provision of a contract entered into after this provision is effective and as to any member, the reduction in the percentage of final compensation shall apply to all local safety service to the agency, if any of the local safety service has been included in the federal system. (g) This section shall not apply to a contracting agency nor its employees until the agency elects to be subject to it by amendment to its contract made in the manner prescribed for approval of contracts or in the case of a new contract, by express provision of the contract. The operative date of this section with respect to a local safety member shall be the effective date of the amendment to his or her employer's contract electing to be subject to this section. SEC. 3.5. Section 21369 of the Government Code is amended to read: 21369. (a) The combined prior and current service pension for a state safety member, and a local safety member with respect to service to a contracting agency subject to this section, upon retirement after attaining the age of 55 years, is a pension derived from contributions of an employer sufficient, when added to that portion of the service retirement annuity that is derived from the accumulated normal contributions of the member at the date of his or her retirement, to equal one-fiftieth of his or her final compensation multiplied by the number of years of state safety, police, fire, or county peace officer service that is credited to him or her as a state safety member or a local safety member subject to this section at retirement. Notwithstanding the preceding sentence, this section shall apply to the current and prior service pension for any other state safety member based on service to which it would have applied had the member, on July 1, 1971, been in employment described in Section 20403 or 20404. (b) Upon retirement for service prior to attaining the age of 55 years, the percentage of final compensation payable for each year of credited service that is subject to this section shall be the product of 2 percent multiplied by the factor set forth in the following table for his or her actual age at retirement: The percent for each year of credited service If the retirement age occurs at: is: 50 ................................. 0.713 50 1/4 ............................. 0.725 50 1/2 ............................. 0.737 50 3/4 ............................. 0.749 51 ................................. 0.761 51 1/4 ............................. 0.775 51 1/2 ............................. 0.788 51 3/4 ............................. 0.801 52 ................................. 0.814 52 1/4 ............................. 0.828 52 1/2 ............................. 0.843 52 3/4 ............................. 0.857 53 ................................. 0.871 53 1/4 ............................. 0.886 53 1/2 ............................. 0.902 53 3/4 ............................. 0.917 54 ................................. 0.933 54 1/4 ............................. 0.950 54 1/2 ............................. 0.966 54 3/4 ............................. 0.983 (c) In no event shall the total pension for all service under this section exceed an amount that, when added to the service retirement annuity related to that service, equals 75 percent of final compensation. For state members who retire on or after January 1, 1995, and with respect to service for all state employers under this section, the benefit shall not exceed 80 percent of final compensation. For local members who retire on or after January 1, 2000, the benefit shall not exceed 85 percent of final compensation. If the pension relates to service to more than one employer and would otherwise exceed that maximum, the pension payable with respect to each employer shall be reduced in the same proportion as the allowance based on service to that employer bears to the total allowance computed as though there were no limit, so that the total of those pensions shall equal the maximum. Where a state or local member retiring on or after January 1, 1995, has service under this section with both state and local agency employers, the higher maximum shall apply and the additional benefit shall be funded by increasing the member's pension payable with respect to the employer for whom the member performed the service subject to the higher maximum. (d) This section shall not apply to a person whose effective date of retirement is prior to July 1, 1971. (e) The Legislature reserves, with respect to any member subject to this section, the right to provide for the adjustment of industrial disability retirement allowances because of earnings of a retired person and modification of the conditions and qualifications required for retirement for disability as it may find appropriate because of the earlier age of service retirement made possible by the benefits under this section. (f) The percentage of final compensation provided in this section shall be reduced by one-third as applied to that part of the member's final compensation that does not exceed four hundred dollars ($400) per month for service after the effective date of coverage of a member under the federal system. This subdivision shall not apply to a member who retires after the date upon which coverage under the federal system of persons in his or her employment terminates. It shall not apply to a local safety member employed by a contracting agency electing to be subject to this section after March 7, 1973, unless the agency elects to be subject to this paragraph by amendment to its contract or by appropriate provision of a contract entered into after this provision is effective and as to any member, the reduction in the percentage of final compensation shall apply to all local safety service to the agency, if any of the local safety service has been included in the federal system. (g) With the exception of state safety members for service rendered for the California State University, this section shall apply to state safety members who are not employed by the state on or after January 1, 2000. (h) This section shall not apply to a contracting agency nor its employees until the agency elects to be subject to it by amendment to its contract made in the manner prescribed for approval of contracts or in the case of a new contract, by express provision of the contract. The operative date of this section with respect to a local safety member shall be the effective date of the amendment to his or her employer's contract electing to be subject to this section. SEC. 4. Section 21370 of the Government Code is amended to read: 21370. (a) The combined prior and current service pension for local safety members with respect to service to a contracting agency subject to this section, upon retirement after attaining 56 years of age, is a pension derived from contributions of an employer sufficient, when added to that portion of the service retirement annuity that is derived from the accumulated normal contributions of the member at the date of his or her retirement, to equal one-fiftieth of his or her final compensation set forth opposite his or her age at retirement taken to the preceding completed quarter year in the following table, multiplied by the number of years of service credited to him or her as a local safety member subject to this section at retirement. Upon retirement for service prior to attaining 56 years of age, the percentage of final compensation payable for each year of credited service that is subject to this section shall be the product of 2 percent multiplied by the factor set forth in the following table for the actual age at retirement: The percent for each year of credited service If retirement occurs at age: is: 50 ................................ .8565 50 1/4 ............................ .8650 50 1/2 ............................ .8740 50 3/4 ............................ .8830 51 ................................ .8920 51 1/4 ............................ .9020 51 1/2 ............................ .9120 51 3/4 ............................ .9222 52 ................................ .9330 52 1/4 ............................ .9410 52 1/2 ............................ .9490 52 3/4 ............................ .9570 53 ................................ .9650 53 1/4 ............................ .9675 53 1/2 ............................ .9700 53 3/4 ............................ .9725 54 ................................ .9750 54 1/4 ............................ .9810 54 1/2 ............................ .9870 54 3/4 ............................ .9935 55 ................................ 1.0000 55 1/4 ............................ 1.0435 55 1/2 ............................ 1.0870 55 3/4 ............................ 1.1310 56 ................................ 1.1750 (b) This section shall apply only to local police officers and county peace officers who are local safety members. (c) This section shall not apply to persons whose effective date of retirement is prior to January 1, 1985. (d) The Legislature reserves, with respect to any member subject to this section, the right to provide for the adjustment of industrial disability retirement allowances because of earnings of a retired person and modification of the conditions and qualifications required for retirement for disability as it may find appropriate because of the earlier age of service retirement made possible by the benefits under this section. (e) The percentage of final compensation provided in this section shall be reduced by one-third as applied to that part of the member's final compensation that does not exceed four hundred dollars ($400) per month for service after the effective date of coverage of a member under the federal system. This paragraph shall not apply to a member who retires after the date upon which coverage under the federal system of persons in his or her employment terminates. (f) For members who retire prior to January 1, 2000, in no event shall the total pension for all service under this section exceed an amount that, when added to the service retirement annuity related to the service, equals 75 percent of final compensation. For members who retire on or after January 1, 2000, the allowance shall not exceed 85 percent of final compensation. If the pension relates to service for more than one employer and would otherwise exceed the maximum, the pension payable with respect to each employer shall be reduced in the same proportion as the allowance based on service to the employer bears to the total allowance computed as though there were no limit, so that the total of the pensions shall equal the maximum. (g) This section shall only apply as an optional contributory retirement formula for this system local safety groups whose group participated in Federal Old Age and Survivors' Insurance provisions of the Social Security Act on April 1983. (h) This section shall not apply to a contracting agency nor its employees until the agency and the representative employee organization agree by memorandum of understanding to be subject to it by amendment to its contract made in the manner prescribed for approval of contracts. It shall also be required that the representative employee organizations agree to be subject to this provision. (i) The operative date of this section with respect to a local safety member shall be the effective date of the amendment to the employer's contract electing to be subject to this section. SEC. 4.5. Section 21370 of the Government Code is amended to read: 21370. (a) The combined prior and current service pension for local safety members with respect to service to a contracting agency subject to this section, upon retirement after attaining 56 years of age, is a pension derived from contributions of an employer sufficient, when added to that portion of the service retirement annuity that is derived from the accumulated normal contributions of the member at the date of his or her retirement, to equal one-fiftieth of his or her final compensation set forth opposite his or her age at retirement taken to the preceding completed quarter year in the following table, multiplied by the number of years of service credited to him or her as a local safety member subject to this section at retirement. (b) Upon retirement for service prior to attaining 56 years of age, the percentage of final compensation payable for each year of credited service that is subject to this section shall be the product of 2 percent multiplied by the factor set forth in the following table for the actual age at retirement: The percent for each year of credited service If retirement occurs at age: is: 50 ................................ .8565 50 1/4 ............................ .8650 50 1/2 ............................ .8740 50 3/4 ............................ .8830 51 ................................ .8920 51 1/4 ............................ .9020 51 1/2 ............................ .9120 51 3/4 ............................ .9222 52 ................................ .9330 52 1/4 ............................ .9410 52 1/2 ............................ .9490 52 3/4 ............................ .9570 53 ................................ .9650 53 1/4 ............................ .9675 53 1/2 ............................ .9700 53 3/4 ............................ .9725 54 ................................ .9750 54 1/4 ............................ .9810 54 1/2 ............................ .9870 54 3/4 ............................ .9935 55 ................................ 1.0000 55 1/4 ............................ 1.0435 55 1/2 ............................ 1.0870 55 3/4 ............................ 1.1310 56 ................................ 1.1750 (c) This section shall apply only to local police officers and county peace officers who are local safety members. (d) This section shall not apply to persons whose effective date of retirement is prior to January 1, 1985. (e) The Legislature reserves, with respect to any member subject to this section, the right to provide for the adjustment of industrial disability retirement allowances because of earnings of a retired person and modification of the conditions and qualifications required for retirement for disability as it may find appropriate because of the earlier age of service retirement made possible by the benefits under this section. (f) The percentage of final compensation provided in this section shall be reduced by one-third as applied to that part of the member's final compensation that does not exceed four hundred dollars ($400) per month for service after the effective date of coverage of a member under the federal system. This paragraph shall not apply to a member who retires after the date upon which coverage under the federal system of persons in his or her employment terminates. (g) For members who retire prior to January 1, 2000, in no event shall the total pension for all service under this section exceed an amount that, when added to the service retirement annuity related to the service, equals 75 percent of final compensation. For members who retire on or after January 1, 2000, the allowance shall not exceed 85 percent of final compensation. If the pension relates to service for more than one employer and would otherwise exceed the maximum, the pension payable with respect to each employer shall be reduced in the same proportion as the allowance based on service to the employer bears to the total allowance computed as though there were no limit, so that the total of the pensions shall equal the maximum. (h) This section shall only apply as an optional contributory retirement formula for this system local safety groups whose group participated in Federal Old Age and Survivors' Insurance provisions of the Social Security Act on April 1983. (i) This section shall not apply to a contracting agency nor its employees until the agency and the representative employee organization agree by memorandum of understanding to be subject to it by amendment to its contract made in the manner prescribed for approval of contracts. It shall also be required that the representative employee organizations agree to be subject to this provision. (j) The operative date of this section with respect to a local safety member shall be the effective date of the amendment to the employer's contract electing to be subject to this section. However, this section shall not apply to any local safety member in the employ of an employer not subject to this section on January 1, 2000. SEC. 5. Section 21389 is added to the Government Code, to read: 21389. Notwithstanding Sections 21362, 21362.2, 21363, 21363.1, 21369, and 21370, for local safety members who retire on or after January 1, 2000, and with respect to all local safety service rendered to a contracting agency that is subject to any of those sections, the benefit limit shall be 85 percent rather than 75 percent of final compensation. SEC. 6. Section 1.5 of this bill incorporates amendments to Section 21362 of the Government Code proposed by both this bill and SB 400. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2000, (2) each bill amends Section 21362 of the Government Code, and (3) this bill is enacted after SB 400, in which case Section 1 of this bill shall not become operative. SEC. 7. (a) Section 2.2 of this bill incorporates amendments to Section 21363 of the Government Code proposed by both this bill and SB 400. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2000, (2) each bill amends Section 21363 of the Government Code, (3) AB 813 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after SB 400, in which case Sections 2, 2.4, and 2.6 of this bill shall not become operative. (b) Section 2.4 of this bill incorporates amendments to Section 21363 of the Government Code proposed by both this bill and AB 813. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2000, (2) each bill amends Section 21363 of the Government Code, (3) SB 400 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after AB 813, in which case Sections 2, 2.2, and 2.6 of this bill shall not become operative. (c) Section 2.6 of this bill incorporates amendments to Section 21363 of the Government Code proposed by this bill, SB 400, and AB 813. It shall only become operative if (1) all three bills are enacted and become effective on or before January 1, 2000, (2) all three bills amend Section 21363 of the Government Code, and (3) this bill is enacted after SB 400, and AB 813, in which case Sections 2, 2.2, and 2.4 of this bill shall not become operative. SEC. 8. Section 3.5 of this bill incorporates amendments to Section 21369 of the Government Code proposed by both this bill and SB 400. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2000, (2) each bill amends Section 21369 of the Government Code, and (3) this bill is enacted after SB 400, in which case Section 3 of this bill shall not become operative. SEC. 9. Section 4.5 of this bill incorporates amendments to Section 21370 of the Government Code proposed by both this bill and AB 813. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2000, (2) each bill amends Section 21370 of the Government Code, and (3) this bill is enacted after AB 813, in which case Section 4 of this bill shall not become operative.