BILL NUMBER: SB 1479 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 10, 2010
INTRODUCED BY Committee on Public Employment and Retirement
(Senators Correa (Chair), Ashburn, Corbett, Cox, Ducheny, and Liu)
MARCH 2, 2010
An act to amend Sections 31527 and 31582 of, and to add Section
31618.5 to, the Government Code, relating to public employment.
LEGISLATIVE COUNSEL'S DIGEST
SB 1479, as amended, Committee on Public Employment and
Retirement. Public employment: retirement benefits: administration.
(1) The County Employees Retirement Law of 1937 (CERL) establishes
retirement boards for the administration of benefits authorized
under that law and authorizes the board to include specified
provisions, by regulation, with respect to the administration of
benefits, including the determination of when a person entering
county employ becomes a member of the association. Under existing
law, the board may provide that a person entering county employ, on a
day other than the first day of the calendar day
month , becomes a member of the association on
a day that occurs no later than 6 weeks after the day that person
enters county employ.
This bill would authorize the establishment of the day that a
person, who enters county employ on a day other that the first day of
the calendar month, becomes a member of the association on a day
that occurs no later than 12 weeks after the day that person enters
county employ. This bill would also provide for the establishment of
the day upon which a member terminates service credited by the
association as a day that occurs no earlier than 12 weeks prior to
the member's termination from service.
(2) The CERL authorizes a retirement board to include, by
regulation, provisions exempting or excluding from membership persons
whose tenure is temporary, seasonal or intermittent, or for part
time only, persons whose rate of compensation is less than $80 per
month, and persons whose compensation is fixed at a rate of pay by
the day or hour.
This bill would delete the authorization for a retirement board to
exempt or exclude from membership a person whose rate of
compensation is less than $80 per month.
(2)
(3) Under the CERL, employer contributions on behalf of
members are based on the total compensation earnable by each member.
Existing law authorizes a county auditor to make advance payments of
all or part of the county's estimated annual contributions to the
retirement fund, as provided.
This bill would also authorize specified districts to make advance
payments of all or part of the district's estimated annual
contributions to the retirement fund, as provided.
(3)
(4) The CERL authorizes the establishment of a
Supplemental Retiree Benefits Reserve to cover costs for specified
retiree benefits.
This bill would authorize a specified county employee association
to transfer funds, on an annual basis, from its administrative budget
to fund the administrative costs of the programs reimbursed by the
Supplemental Retiree Benefits Reserve in a manner that is in
compliance with procedures established by the Internal Revenue
Service.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 31527 of the Government Code is amended to
read:
31527. In its regulations, the board may include the following
provisions:
(a) From what warrants deductions of members' contributions shall
be made.
(b) For a period of time longer than one year during which a
member may redeposit in the retirement fund an amount equal to all of
the accumulated normal contributions which he or she has withdrawn,
plus regular interest thereon from the date of return to service.
(c) For a period of time longer than one year during which a
member brought within the field of membership may pay into the
retirement fund the amount equal to the contributions he or she would
have made plus interest, if he or she had been a member from the
date of its organization, or from the date of his or her
entrance into county service, whichever is later.
(d) For a withdrawal charge against a member who withdraws his or
her accumulated contributions. The withdrawal charge shall not exceed
the interest credited to the member subsequent to the effective date
of the regulation.
(e) For the exemption or exclusion from membership as a peace
officer member or as a safety member or from membership altogether,
in the discretion of the board, of persons whose tenure is temporary,
seasonal, intermittent, or for part time only, or persons
whose rate of compensation is less than eighty dollars ($80) a month,
or persons whose compensation is fixed at a rate by the
day or hour.
(f) For the periodic physical examination, at county expense
, of safety members.
(g) The amount of additional deductions from the salaries or wages
of members pursuant to Article 15.5 or 16. Such a provision may be
adopted in anticipation of, and prior to Article 15.5 or 16 becoming
operative in the particular county.
(h) The day upon which each person entering the county
employ becomes a member of the association if it is to be
other than the first day of the calendar month after his or her
entrance into the service, provided that day shall
be no later than 12 weeks after his or her entrance into
the service, or the day upon which the member terminates
service credited by the association, provided that the day shall be
no earlier that than 12 weeks prior to
the member's termination from service
employment .
SEC. 2. Section 31582 of the Government Code is amended to read:
31582. (a) The county auditor shall certify to the board at the
end of each month or at the end of each pay period the compensation
earnable, as defined in Section 31461, paid to all safety members of
the retirement association covered by Article 7.5 (commencing with
Section 31662) and the compensation earnable, as defined in Section
31461, paid to all other members of the retirement association, and
the auditor shall thereupon transfer from the appropriation to the
retirement fund the percentage of this amount determined pursuant to
Sections 31453, 31453.5 , and 31454. Until that
determination, the amount of the transfer shall be 23.77 percent of
the compensation earnable, as defined in Section 31461, paid to all
safety members covered by Article 7.5 (commencing with Section 31662)
and 8.85 percent of the compensation earnable, as defined in Section
31461, paid to all other members.
(b) The board of supervisors may authorize the county auditor to
make an advance payment of all or part of the county's estimated
annual contribution to the retirement fund, provided that the payment
is made within 30 days after the commencement of the county's fiscal
year. If the advance is only a partial payment of the county's
estimated annual contribution, transfers from the appropriation to
the retirement fund shall be made at the end of each month or at the
end of each pay period until the total amount estimated for the year
is contributed. This amount shall be adjusted at the end of the
fiscal year to reflect the actual contribution required for that
year.
(c) (1) A district subject to Section 31585 may also authorize an
advance payment of all or part of the district's estimated annual
contribution to the retirement fund, provided that the payment is
made within 30 days after the commencement of the district's fiscal
year. If the advance is only a partial payment of the district's
estimated annual contribution, payments to the retirement fund shall
be made at the end of each month or at the end of each pay period
until the total amount estimated for the year is contributed. This
amount shall be adjusted at the end of the fiscal year to reflect the
actual contribution required for that year.
(2) This subdivision shall only apply to a district that is part
of a retirement system in a county of the seventh class, as described
in Section 28020.
SEC. 3. Section 31618.5 is added to the Government Code, to read:
31618.5. (a) The board shall annually transfer, from the
administrative budget established pursuant to Article 5 (commencing
with Section 31580), an amount sufficient to fund the administrative
costs of the programs reimbursed by the Supplemental Retiree
Benefits Reserve.
(b) This section shall only apply to a county of the fourth class
as described in Section 28020.