BILL NUMBER: AB 398	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 24, 2003

INTRODUCED BY   Assembly Member Mullin

                        FEBRUARY 14, 2003

   An act to amend  Section   Sections 
31496.3  and 31621.9  of  , and to add Section 31485.10
to,  the Government Code, relating to county employees'
retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 398, as amended, Mullin.  County employees' retirement:  San
Mateo County. 
   The County Employees Retirement Law of 1937 authorizes counties to
provide retirement benefits to general members and safety members of
a county.
   This bill would authorize the Board of Supervisors of San Mateo
County, by resolution, ordinance, contract or contract amendment, to
provide retirement benefits for some, but not all, general members or
safety members of that county.  The bill would specify that the
Board of Supervisors may provide a different formula for calculation
of retirement benefits for any subgroup of members within a
classification, including bargaining units or unrepresented groups.
These provisions would not be operative until adoption by the Board
of Supervisors of San Mateo County. 
   Existing law establishes an alternative retirement plan for San
Mateo County known as Retirement Plan 3.   Existing law provides
that a member who has elected or transferred to Plan 3 and is
terminated but is later reemployed will receive credit for service
rendered prior to termination, if the reemployment occurs within 2
years of termination. 
   This bill would  eliminate the provision requiring that
reemployment occur within 2 years of termination and would also 
make technical, nonsubstantive changes to that provision.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  no.
State-mandated local program:  no.


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


  SECTION 1.   Section 31485.10 is added to the Government Code,
to read:
   31485.10.  (a) Notwithstanding any other provision of law, in a
county of the 10th class, as defined in Sections 28020 and 28031, the
board of supervisors may, by resolution, ordinance, contract, or
contract amendment under this chapter, provide any retirement
benefits for some, but not all, general members or safety members of
a county.
   (b) The resolution, ordinance, contract, or contract amendment
described in subdivision (a) may provide a different formula for
calculation of retirement benefits, by making any section of this
chapter applicable to any subgroup of members within a membership
classification, including, but not limited to, bargaining units, or
unrepresented groups, applicable to service credit earned on and
after the date specified in the resolution, which date may be earlier
than the date the resolution is adopted.
   (c) A resolution adopted pursuant to this section may require
members to pay all or part of the contributions by a member or
employer, or both, that would have been required if the section or
sections specified in subdivision (b), as adopted by the board or
governing body, had been in effect during the period of time
designated in the resolution.  The payment by a member shall become
part of the accumulated contributions of the member.  For those
members who are represented by a bargaining unit, the payment
requirement shall be approved in a memorandum of understanding
executed by the board of supervisors and the employee
representatives.
   (d) This section shall only apply to members who retire on or
after the effective date of the resolution described in subdivision
(a) or (b).
   (e) This section shall not become operative unless and until the
county board of supervisors, by resolution adopted by a majority
vote, makes this section operative in the county.
  SEC. 2.   Section 31496.3 of the Government Code is amended to
read:
   31496.3.  Unless the context otherwise requires, the definitions
contained in this section govern the construction of this article.
   (a) "Board" means the board of retirement.
   (b) "Employer" means the county or district or agency whose
employees are members of the retirement system of the county.
   (c) "Federal system" means the Old Age and Survivors Insurance
provisions of the Social Security Act.
   (d) "Final compensation" means the average annual compensation
earnable by a general member during any three years, whether or not
consecutive, elected by the member at or before the time an
application for retirement is filed or, if no election is made,
during the three years in which the member or former member last
earned compensation preceding retirement.  If a member or former
member has less than three years of service, final compensation shall
be determined by dividing total compensation by the number of months
of service credited to the member or former member and multiplying
by 12.  In no event shall final compensation include any disability
benefits received by the member or former member under a disability
plan provided by the employer.
   (e) "Member" or "general member" means an employee hired on a
permanent basis, as defined by the employer, except an employee
eligible for safety membership.
   (f) "Primary insurance amount" means the monthly retirement
benefit payable under the federal system at the age of 65.
   (g) "Service" means the period of uninterrupted employment of a
member and the time in which a member or former member (1) is totally
disabled, and (2) is receiving disability benefits or is eligible to
receive disability benefits either during or after any elimination
or qualifying period, under a disability plan provided by the
employer.
   Except as provided, a member  may not be credited with service for
any period of time in which the member is absent from work without
pay.
   Unless otherwise provided, service  may not include military
service or public service other than service with the employer.
   Notwithstanding any other provision of this chapter, a member who
has elected or transferred to the plan created by this article and
who  is terminated   terminates  for any
reason and is later reemployed shall receive  Plan 3  credit
 at retirement  for his or her service rendered
prior to  termination if the reemployment occurs within two
years of  termination.   
  SEC. 3.  Section 31621.9 of the Government Code is amended to read:

   31621.9.  In counties adopting Section 31676.14, the normal rates
of contribution, except for members covered by Article 6.8
(commencing with Section 31639), shall be that which will provide an
average annuity at age 55 equal to 1/120 of the final compensation of
members not covered by Article 6.8 (commencing with Section 31639),
according to the tables adopted by the board of supervisors, for each
year of service rendered after entering the system.
   This section may be made applicable in counties on the first day
of the month after the board of supervisors of the county adopts, by
majority vote, a resolution adopting this section.
   This section shall apply only to a county of the  10th or
 20th class, as provided by Sections 28020  , 28031, 
and 28041.