BILL NUMBER: AB 89	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 9, 2011
	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   in addition to any other benefit limitations
prescribed by 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
total compensation upon which a defined retirement benefit shall be
based shall not exceed an amount set forth in   to the
extent that the benefits payable under the system are subject to the
compensation limits prescribed by  a specified provision of the
Internal Revenue Code  , the maximum salary, compensation, or
payrate taken into account under the plan for any year shall not
exceed the amount permitted to be taken into account under that
provision of federal law  . 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   the  amount  specified in that
federal provision  .
   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   In
addition to any other benefit limitations prescribed by  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 total compensation upon which a
defined retirement benefit shall be based shall not exceed the amount
specified in Section 401(a)(17)   January 1, 2012, to
the extent the benefits   payable under the system are
subject to the compensation limits prescribed by Section 401(a)(17)
of Title 26 of the United States Code, the maximum salary,
compensation, or payrate taken into account under the plan for any
year shall not exceed the amount permitted to be taken unto account
under 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.