BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 538
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          SENATE THIRD READING
          SB 538 (Public Employment and Retirement Committee)
          As Introduced February 27, 2009
          Majority vote 

           SENATE VOTE  :37-0  
           
           PUBLIC EMPLOYEES    6-0                                         
           
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          |Ayes:|Hernandez, Furutani,      |     |                          |
          |     |Beall, Conway, Nestande,  |     |                          |
          |     |Torrico                   |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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           SUMMARY  :   Requires, in Los Angeles (L.A.) County only, a safety  
          member returning from disability leave be given the same  
          opportunity to receive certification as to his or her ability to  
          perform assigned duties as is available to other safety members  
          in the County, thereby avoiding being subject to the mandatory  
          retirement age provisions. 

           EXISTING LAW  contains several optional provisions that counties  
          operating retirement systems established under the County  
          Employees' Retirement Law of 1937 ('37 Act) can adopt that  
          require safety members to retire once they reach a certain age  
          (60, 70, etc.).  L.A. County's safety employees were subject to  
          those mandatory retirement age provisions but the county  
          subsequently elected to provide that all new employees would no  
          longer be subject to the mandatory retirement provisions.

           FISCAL EFFECT  :  Unknown

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








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          after March 31, 1997.

          "Government Code Section 31663.15, which was enacted by SB 579  
          (Wiggins), Chapter 21, Statutes of 2008, and took effect June  
          22, 2008, permits those Los Angeles County safety members  
          subject to Section 31662.6 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."

          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 or her  
          assigned duties pursuant to specified standards.

          SB 304 (Karnette), Chapter 33, Statutes of 2001, exempted any  
          assistant sheriff or a chief in a sheriff's office who is a  
          safety member and whose primary duties are administrative from  
          the '37 Act's mandatory retirement provisions for Los Angeles  
          County only and only upon the approval of the Los Angeles County  
          Board of Supervisors.

          AB 2366 (Runner), Chapter 120, Statutes of 2006, allowed safety  
          members who retired because of the mandatory retirement age to  
          reinstate to active service after retirement if they could meet  
          the physical demands of their former position.  However, because  








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          employee contribution rates in the '37 Act were determined by  
          age of entry, the L.A. County Employees Retirement System would  
          have required that the reinstated safety member be charged a  
          monthly employee contribution at a significantly higher rate  
          based on their age at reinstatement.  Under these conditions,  
          the provisions of AB 2366 proved unworkable to the county.

          SB 134 (Cedillo), Chapter 290, Statutes of 2007, allowed a  
          safety member to continue in active employment after age 60, if  
          a physician employed by the county certifies that he or she is  
          capable of performing their assigned duties.


           Analysis Prepared by :    Karon Green / P.E., R. & S.S. / (916)  
          319-3957 


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