BILL NUMBER: AB 89	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 14, 2011

INTRODUCED BY   Assembly Member Hill

                        JANUARY 6, 2011

   An act to add Section 7503.5 to the Government Code, relating to
retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 89, as amended, Hill. Retirement: public employees.
   The Public Employees' Retirement Law creates the Public Employees'
Retirement System, which provides a defined benefit to its members
based on age at retirement, service credit, and final compensation,
as defined. The State Teachers' Retirement Law and the retirement
laws for county employees and city employees also provide for a
defined benefit based on age at retirement, service credit, and final
compensation.
   This bill would specify that, notwithstanding any other law, for
the purposes of determining a retirement benefit paid to a person who
first becomes a member of a public retirement system on or after
January 1, 2012, the  maximum salary,   total
 compensation  , or payrate  upon which  a
defined  retirement  benefits   benefit
 shall be based shall not exceed an amount set forth in a
specified provision of the Internal Revenue Code.  The bill would
also prohibit a public employer from making contributions to any
qualified public retirement plan based on any portion of compensation
that exceeds that amount. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 7503.5 is added to the Government Code, to
read:
   7503.5.   (a)    Notwithstanding any other law,
for the purposes of determining a retirement benefit paid to a person
who first becomes a member of a public retirement system on or after
January 1, 2012, the  maximum salary,   total
 compensation  , or payrate  upon which  a
defined  retirement  benefits   benefit
 shall be based shall not exceed the amount specified in Section
401(a)(17) of Title 26 of the United States Code, or it successor.

   (b) A public employer shall not make employer contributions to any
qualified public retirement plan or plans on behalf of an employee
who first becomes a member of the retirement system on or after
January 1, 2012, based on that portion of the amount of total
compensation that exceeds the amount specified in Section 401(a)(17)
of Title 26 of the United States Code, or its successor.