BILL NUMBER: AB 817	CHAPTERED  10/10/99

	CHAPTER   897
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 9, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 9, 1999
	PASSED THE SENATE   SEPTEMBER 7, 1999
	AMENDED IN SENATE   SEPTEMBER 2, 1999

INTRODUCED BY   Committee on Public Employees, Retirement and Social
Security (Correa (Chair), Firebaugh, Honda, Knox, and Pescetti)

                        FEBRUARY 24, 1999

   An act to amend Section 9358 of the Government Code, relating to
retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 817, Committee on Public Employees, Retirement and Social
Security.  Legislative retirement.
   Existing law establishes the state's contribution rate to the
Legislators' Retirement System at 18.81 percent of the compensation
paid members.
   This bill would instead provide that the state's contribution rate
shall be established by  the actuary, and included in the Budget
Act, pursuant to provisions of the Public Employees' Retirement Law.
The bill would also provide that when the actuarial value of assets
exceeds the present value of benefits as of the most recently
completed valuation, resulting in a 0 percent contribution rate for
the state, the Public Employees' Retirement Board may reduce the
member contribution rates.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 9358 of the Government Code is amended to read:

   9358.  (a) On and after January 1, 2000, the state's contribution
on account of liability for benefits under this chapter shall be
established in accordance with Section 20814.
   (b) When the actuarial value of assets exceeds the present value
of benefits as of the most recently completed valuation, resulting in
a 0 percent contribution rate for the state, as determined by the
board, the board may reduce the member contribution rates described
in Sections 9357, 9357.01, 9357.05, and 9357.15 for the same fiscal
year in which the state rate is reduced to 0 percent.
   However, for any fiscal year during which the state's contribution
rate is greater than 0 percent, the members of the system shall pay
the applicable member contribution rates described in Sections 9357,
9357.01, 9357.05, and 9357.15.