BILL ANALYSIS
AB 966
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Date of Hearing: May 6, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 966 (P.E.R. & S.S. Committee) - As Amended: March 26, 2009
Policy Committee: P.E.R. &
S.S.Vote: 6-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill makes numerous minor or technical amendments to
various sections of law administered by the California Public
Employees' Retirement System (CalPERS). Key provisions of the
bill:
1)Permit CalPERS to purchase or construct a building outside the
region to be used as an emergency or business continuity
center.
2)Clarify that the final compensation period is 12 consecutive
months for optional National Guard members, and specifies that
National Guard Service does not count as state service for the
purpose of vesting for retiree health benefits in accordance
with the original intent of the legislation.
3)Increases, from three to 10 years from the time of discovery,
the period of time in which CalPERS can recover overpayments
due to the death of a retired member or beneficiary.
4)Prohibits an employer from passing on to an employee costs
associated with the employer's failure to enroll an employee
into membership and requires an employer that fails to
withhold and submit an employee's contributions within the
applicable timeframe to notify CalPERS and to take no action
until authorized by CalPERS.
5)Lengthens the time frame, from 30 to 60 days, the open
enrollment period for retiring state employees enrolled in
flexible benefit plans to enroll in a CalPERS offered health
AB 966
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plan.
6)Deletes or updates obsolete references contained in the law.
FISCAL EFFECT
According to CalPERS, this bill will have no impacts on
administration or program costs.
COMMENTS
1)Rationale . This is largely a housekeeping bill sponsored by
CalPERS. It is intended to facilitate efficient
administration of the CalPERS system, and to clear up
ambiguities and inconsistencies in the government code
relating to the administration of public employment retirement
law. With regard to the authority to purchase a building
outside the region, CalPERS indicates that current law
restricts the location of any real property purchased for
CalPERS' use to Sacramento County. CalPERS asserts that sound
disaster preparedness planning requires that any emergency
facility be located in such a location so that no single event
can render ineffective both CalPERS' headquarters and
emergency centers. In order to avoid common risk factors
associated with locating a recovery center in the same
geographic area and meet CalPERS evolving business continuity
operations, this bill permits CalPERS to purchase or construct
a building outside the region to be used as an emergency or
business continuity center.
Analysis Prepared by : Brad Williams / APPR. / (916) 319-2081