BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 538|
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                                 THIRD READING


          Bill No:  SB 538
          Author:   Senate Public Employment and Retirement Committee
          Amended:  As introduced
          Vote:     21

           
           SENATE PUBLIC EMP. & RET. COMMITTEE  :  7-0, 4/20/09
          AYES:  Correa, Ashburn, Benoit, Ducheny, Liu, Padilla,  
            Wiggins


           SUBJECT  :    Los Angeles County Employees Retirement

           SOURCE  :     California Professional Firefighters


           DIGEST  :    This bill provides a technical clarification in  
          Government Section 31663.15 in the County Employees  
          Retirement Act of 1937, permitting only the Los Angeles  
          County Employees Retirement Association to receive the  
          necessary physical certification of a safety member upon  
          returning from disability leave, before making a  
          determination as to whether the member is subject to  
          mandatory retirement.

           ANALYSIS  :    Existing County Employees Retirement Act of  
          1937 ('37 Act), contains various provisions, which '37 Act  
          counties may implement, to require their safety members to  
          retire once they reach age 60.  Pursuant to a resolution  
          adopted by the L.A. County Board of Supervisor, county  
          safety employees hired before March 31, 1997, are subject  
          to mandatory retirement at age 60 and are retired as of the  
          first day of the calendar month immediately following their  
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          60th birthday.

          In a later resolution, the L.A. Supervisors rescinded the  
          mandatory retirement age provisions for safety members  
          first employed after March 31, 1997.  SB 579 (Wiggins),  
          Chapter 21, Statutes of 2008 permits L.A. County safety  
          members to work beyond the mandatory retirement age  
          provided that a physician approved by the County certifies  
          that the safety member is capable of performing his/her  
          assign duties pursuant to specified standards.  The Senate  
          Public Employment and Retirement Committee was advised  
          that, although SB 579 permits L.A. County to allow its  
          safety members to work beyond the mandatory retirement age  
          of 60, SB 579 has unintentionally required the Los Angeles  
          County Employees Retirement Association (LACERA) to retire  
          a safety member when he/she is on temporary disability  
          beyond "the first day of the calendar month next succeeding  
          that in which he/she attains age 60" and, therefore, is  
          unable to timely receive the medical certification  
          determining "fitness for duty."  

          This bill provides a technical clarification, permitting  
          LACERA to receive the necessary physical certification of a  
          safety member upon returning from disability leave, before  
          making a determination as to whether the member is subject  
          to mandatory retirement.

          This section of the Government code is applicable only to  
          L.A. County, and is not effective until it is adopted by  
          the L.A. County Board of Supervisors.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No

           SUPPORT  :   (Verified  4/21/09)

          California Professional Firefighters (source)

           ARGUMENTS IN SUPPORT  :    The sponsor, the California  
          Professional Firefighters states, "Pursuant to a resolution  
          adopted by Los Angeles County Board of Supervisors, county  
          safety employees - hired prior to march 31, 1997 - are  
          subject to Section 31662.6, which is one such '37 Act  
          mandatory retirement age section.  As such, a safety  







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          member, hired prior to March 31, 1997 is retired as of the  
          first day of the calendar month immediately following the  
          month in which he or she attains age 60.  In a later  
          resolution, the Board rescinded the mandatory retirement  
          age provisions for safety members first employed after  
          March 31, 1997.  

          "Government Code Section 31663.15, which was enacted by SB  
          579 (Chapter No. 21, Statutes of 2008) and took effect June  
          22, 2008, permits those Los Angeles County safety members  
          subject to Section 31662.^ to work beyond the mandatory  
          retirement age provided that a physician, employed or  
          approved by the County, certifies that the safety member is  
          capable of performing his or her assigned duties pursuant  
          to specified standards.  Although Section 31663.15 permits  
          Los Angeles County to allow its safety members to work  
          beyond the mandatory retirement age in accordance with the  
          above-described conditions, Section 31662.6 has  
          unintentionally bound the Los Angeles County Employees  
          Retirement Association (LACERA) to retire a safety member  
          when he or she is on temporary  disability beyond "the  
          first day of the calendar month next succeeding that in  
          which he or she [safety member] attains age 60" and  
          therefore unable to timely receive the medical  
          certification determining "fitness for duty."

          "SB 538 simply clarifies Section 31663.15 to permit LACERA  
          to receive the necessary physical certification of a safety  
          member upon returning from his or her disability leave  
          before making a determination as to whether the member is  
          subject to mandatory retirement, even if that leave extends  
          beyond the month in which the member turns age 60."


          DLW:do  4/21/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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