BILL ANALYSIS                                                                                                                                                                                                    






          
          SENATE PUBLIC EMPLOYMENT & RETIREMENT     BILL NO: SB 345
          Lou Correa, Chair            Hearing date: April 27, 2009
          SB 345 (Negrete McLeod)    as amended  3/31/09            
          FISCAL:   NO

           '37 ACT:  SAN BERNARDINO COUNTY:  SPECIAL DEATH BENEFIT  
          CHANGE TO APPLY TO ALL SAFETY MEMBERS WHO DIE BEFORE  
          RETIREMENT
           
           HISTORY  :

              Sponsor:  San Bernardino County Deputy Sheriffs'  
          Association

              Prior legislation:  none

           
          SUMMARY  :
          
          Would provide, in San Bernardino County only upon the  
          adoption of the Board of Supervisors, that the safety  
          members' special death benefit paid to a surviving  
          beneficiary shall be based upon the salary of the then-active  
          safety member employed in the job classification applicable  
          to the deceased member at the time of injury or death.


           BACKGROUND  :  
          
           1)   What is the County Employees Retirement Act of 1937 and  
          who participates  ?

          The committee is advised that 20 counties have formed their  
          own retirement systems under the County Employees Retirement  
          Act of 1937 ('37 Act).  These '37 Act retirement systems are  
          run by the county, with a county board of retirement  
          administering the county system.  The statutes governing '37  
          Act systems are determined in the legislative process and  
          signed into law by the Governor.


           ANALYSIS  :
          David Felderstein
          Date:  4/17/09                                         Page 1  










          
          1)   What is the '37 Act special death benefit for survivors  
          of deceased safety members  ?

           Existing '37 Act law  provides that a survivors of a safety  
          member who is killed in the line of duty or as a result of  
          injuries incurred in the performance of their duties shall  
          receive a lifetime monthly benefit  equal to the benefit they  
          would have received had the deceased safety member been  
          retired on service-connected disability  when the safety  
          member died.  This monthly survivor benefit is called the  
          special death benefit for survivors of deceased safety  
          members.




























          David Felderstein
          Date:  4/17/09                                         Page 2  










          2)   What "final compensation" (salary and other specific pay  
          items) is the '37 Act special death benefit survivor  
          allowance based upon  ?

           Existing '37 Act law  provides that the special death benefit  
          is based on the "final compensation" the deceased member at  
          the time of their death.  The special death benefit paid to  
          the survivor of the deceased safety member is then  adjusted  
          annually by a cost of living adjustment (COLA) determined in  
          statute, generally limited to 2% per year  .

          3)   This bill  would provide,  in San Bernardino County only  
          upon the adoption of the Board of Supervisors  , that the  
          safety members' special death benefit paid to a surviving  
          beneficiary shall be based upon the salary of the then-active  
          safety member employed in the job classification applicable  
          to the deceased member at the time of injury or death.


           COMMENTS  :

          1)   Arguments in support  

          The sponsor, PORAC, states:

            "Currently, CalPERS law states that when a peace officer  
            has been killed in the line of duty, their surviving spouse  
            shall receive their salary and benefits, plus any increases  
            to that salary and benefits the officer would have received  
            if he or she were still on active duty.  However, if a  
            peace officer is employed by one of the 1937 Retirement Act  
            Counties, which are governed under separate retirement law,  
            the spouse is not eligible for the increases the officer  
            would have received.  Some counties offer cost of living  
            adjustments, but any other increases in salary that would  
            have been given to the officer are not available for the  
            surviving spouse.  This means that if an officer dies early  
            in his or her career, the salary and benefits the spouse  
            receives over time are often less than what the officer  
            would have been earning, had they still been on active  
            duty. 

             SB 345  Seeks to remedy this inconsistency by allowing  
          David Felderstein
          Date:  4/17/09                                         Page 3  










            spouses of fallen San Bernardino County Peace Officers,  
            members of one of California's 37 Act Counties, the ability  
            to receive the same benefits already afforded CalPERS  
            members."

          2)   SUPPORT  :

               Peace Officers Research Association of California  
          (PORAC)
               San Bernardino County District Attorney's Office
               San Bernardino County Safety Employees' Benefit  
          Association (SEBA)
               San Bernardino County Sheriff's Office

          3)   OPPOSITION  :

               None to date        


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          David Felderstein
          Date:  4/17/09                                         Page 4