BILL ANALYSIS
SENATE PUBLIC EMPLOYMENT & RETIREMENT BILL NO: AB 1136
Lou Correa, Chair Hearing date: June 22, 2009
AB 1136 (Fong) as amended 5/18/09 FISCAL: YES
'37 ACT: CHANGE PREVIOUSLY ELECTED SURVIVOR OPTIONS
HISTORY :
Sponsor: California Retired County Employees Association
(CRCEA)
Prior legislation: AB 979 (Negrete McLeod),
Chapter 441 of 2004
ASSEMBLY VOTES :
PER & SS 5-0 5/06/09
Appropriations 12-5 5/28/09
Assembly Floor 52-26 6/01/09
SUMMARY :
Would permit, upon adoption by a county board of retirement,
a retired member of a county retirement system being operated
under the County Employees' Retirement Law of 1937 ('37 Act)
to change previously elected optional survivor settlements,
as specified.
BACKGROUND AND ANALYSIS :
1) Existing '37 Act law :
a) permits a member of a '37 Act retirement system, prior
to the first payment of any retirement allowance, to elect
certain optional settlements, which reduce the allowance
payable to the member through his or her life and provide
for a subsequent payment to another party or parties,
including a spouse,
b) provides that, upon the death of a '37 Act member who
died after a service retirement or non-service related
disability and did not elect an optional settlement, an
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Date: 6/04/09 Page 1
allowance equaling 60% of his or her retirement allowance
will be continued throughout life to a surviving spouse to
whom he or she was married to for at least one year prior
to the effective date of retirement, and
c) pursuant to Chapter 441 of 2004 , allows, upon adoption
by a county board of supervisors, retired '37 Act members
who marry after retirement , to purchase, at no cost to the
retirement system, an optional survivor benefit in order to
increase the survivor benefit that would be paid to their
new spouse if the member dies first.
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Date: 6/04/09 Page 2
2) This bill :
a) allows a '37 Act retired member, in order to provide
for his or her spouse, to revoke an optional settlement, as
specified, if both of the following apply:
- the member retired on or before the date the
post-retirement spouse provision was made applicable in
the county from which they retired, and
- the member was unmarried or had been married less than
one year at the time of retirement,
b) requires the signature of the designated beneficiary,
c) specifies that after revocation, the member's
retirement allowance will be adjusted prospectively to the
amount he or she would have been entitled to had they not
elected an option and to reflect any cost-of-living
increases that would have been added to the retirement
allowance,
d) specifies that the spouse, after revocation, would be
entitled to any provisions for which he or she may qualify,
as if no optional settlement had been elected by the
member,
e) prohibits a retired member that has revoked an optional
settlement pursuant to these provisions from electing other
optional settlements,
f) specifies that the retirement system is under no
obligation to locate or otherwise contact retired members
who may qualify for these provisions,
g) specifies that any action taken pursuant to these
provisions does not excuse the obligation of a member to
provide a continuing benefit to a former spouse pursuant to
a court order, and
h) specifies that these provisions will not become
effective in a county until adopted by the county board of
retirement.
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Date: 6/04/09 Page 3
FISCAL EFFECT :
Unknown
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Date: 6/04/09 Page 4
COMMENTS :
1) Arguments in support
According to the sponsor, CRCEA:
"This bill is of importance to older retirees in counties
where the retirement plan was established under the '37
Act. In their case, they might have selected a particular
retirement option provided under the '37 Act because what
is commonly referred to as the 'post-retirement spouse
provision' had not yet been made applicable in their
county. In fact, the post-retirement spouse provision' may
not have even been a part of the '37 Act at the time they
retired. This bill will enable them to avail themselves of
this provision if their life circumstances have changed
since retirement."
2) SUPPORT :
American Federation of State, County and Municipal
Employees, (AFSCME)
American Federation of State, County and Municipal
Employees, Local 685
Association for Los Angeles Deputy Sheriffs
Glendale City Employees Association
Los Angeles Probation Officers' Union
Organization of SMUD Employees
Peace Officer's Research Association of California
(PORAC)
San Bernardino Public Employees Association
San Luis Obispo County Employees Association
Santa Rosa City Employees Association
3) OPPOSITION :
None to date
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Date: 6/04/09 Page 5
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