BILL NUMBER: AB 2510	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 8, 2010

INTRODUCED BY   Assembly Member Fletcher

                        FEBRUARY 19, 2010

   An act to  amend Section 20630 of   add
Section 22894 to  the Government Code, relating to public
employees' retirement.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2510, as amended, Fletcher. Public employees' retirement:
 compensation.  contracting agencies:
postretirement health coverage.  
   The Public Employees' Retirement Law permits any public agency, as
defined, to enter into a contract to participate in the Public
Employees' Retirement System, as specified. The Public Employees'
Medical and Hospital Care Act authorizes the Board of Administration
of the Public Employees' Retirement System to contract with carriers
for health benefit plans and major medical plans for employees and
annuitants, as defined.  
   This bill would authorize the City of San Diego to enter into an
agreement with its employees to provide employer contributions for
postretirement health care coverage to employees with at least 10
years of credited service with the City of San Diego, effective for
employees that retire on or after the date that a memorandum of
understanding that authorizes this benefit becomes effective. 

   The Public Employees' Retirement Law defines the term
"compensation" for purposes of determining required contributions and
benefits. Existing law requires an employer to report compensation
paid and to identify the pay period in which the compensation is
earned.  
   This bill would make a technical, nonsubstantive change to that
section. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

   SECTION 1.    Section 22894 is added to the 
 Government Code   , to read:  
   22894.  (a) Notwithstanding any other provision of this part, the
City of San Diego, the employees' exclusive representative, and
unrepresented employees may agree that the employer contribution for
postretirement health coverage shall be subject to the following:
   (1) Credited years of service that the employee worked with the
City of San Diego.
   (2) A memorandum of understanding regarding postretirement health
coverage mutually agreed upon through collective bargaining. This
issue may not be subject to the impasse procedures set forth in
Article 9 (commencing with Section 3548) of Chapter 10.7 of Division
4 of Title 1.
   (b) This section is not applicable to any employee who retired
before the effective date of the memorandum of understanding. In the
event that the memorandum of understanding establishes a retroactive
effective date, this section applies only prospectively and any
employee who retires before the memorandum of understanding is signed
may not be affected by it.
   (c) No agreement reached pursuant to subdivision (a) shall be
valid if it provides an employer contribution for employees with less
than 10 years of credited service with the City of San Diego.
   (d) The City of San Diego shall provide, in the manner prescribed
by the board, a notification of the agreement established pursuant to
this section and any additional information necessary to implement
this section.  
  SECTION 1.    Section 20630 of the Government Code
is amended to read:
   20630.  (a) As used in this part, "compensation" means the
remuneration paid out of funds controlled by the employer in payment
for the member's services performed during normal working hours or
for time during which the member is excused from work because of any
of the following:
   (1) Holidays.
   (2) Sick leave.
   (3) Industrial disability leave, during which, benefits are
payable pursuant to Sections 4800 and 4850 of the Labor Code, Article
4 (commencing with Section 19869) of Chapter 2.5 of Part 2.6, or
Section 44043 or 87042 of the Education Code.
   (4) Vacation.
   (5) Compensatory time off.
   (6) Leave of absence.
   (b) When compensation is reported to the board, the employer shall
identify the pay period in which the compensation was earned,
regardless of when reported or paid. Compensation shall be reported
in accordance with Section 20636 and shall not exceed compensation
earnable, as defined in Section 20636.