BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 1519|
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THIRD READING
Bill No: AB 1519
Author: Wieckowski (D)
Amended: 3/6/12 in Assembly
Vote: 21
SENATE PUBLIC EMPLOYMENT & RETIRE. COMM : 5-0, 5/7/12
AYES: Negrete McLeod, Walters, Gaines, Padilla, Vargas
SUBJECT : County employee retirement boards
SOURCE : State Association of County Retirement Systems
DIGEST : This bill requires the boards of retirement or
investments for the 20 retirement systems established
pursuant to the County Employees' Retirement Law of 1937
('37 Act) to adopt a policy for providing board member
education, as specified.
ANALYSIS : Existing law:
1.Establishes the '37 Act, which provides for retirement
systems for county and district employees in those
counties adopting its provisions. Currently 20 counties
operate retirement systems under the '37 Act.
2.Sets forth the composition of the nine-member board of
retirement for any '37 Act county retirement system as
follows:
A. The county treasurer;
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B. Two general (non-safety) members elected by the
general members of the system (2nd and 3rd members);
C. Four members who are qualified electors not in any
way connected with county government, except one may
be a county supervisor, appointed by the board of
supervisors (4th, 5th, 6th, and 9th members);
D. One safety member elected by the safety members of
the system (7th member); and,
E. One retired member elected by the retired members
of the system (8th member).
1.Allows, in any '37 Act county in which the assets of the
retirement system exceed $800 million, the board of
supervisors to establish a board of investments which is
responsible for all investment of the retirement system.
The Los Angeles County Employees Retirement Association
is currently the only county with a board of investment.
This bill:
1.Requires a '37 Act board of retirement or investments to
establish a policy for providing education for board
members.
2.Requires the policy to include, at a minimum, the
following:
A. Appropriate topics for education;
B. A process for determining whether or not a program,
training, or educational session qualifies as board
member education;
C. A minimum requirement of 24 hours of education
within the first two years of becoming a board member
and for every subsequent two year period the person
remains on the board; and,
D. Maintaining a record of board member compliance
with the policy and to post the policy, along with
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information on board member compliance, on the
retirement system's Internet Web site.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 5/9/12)
State Association of County Retirement Systems (source)
American Federation of State, County and Municipal
Employees, AFL-CIO
California Professional Firefighters
Los Angeles County Employees Retirement Association
Peace Officers Research Association of California
Service Employees International Union, California
ARGUMENTS IN SUPPORT : According to the State Association
of County Retirement Systems, the trustees of a '37 Act
retirement system are, "?charged with administering the
retirement benefits of county employees, adjudicating
disability and retirement compensation disputes that may
arise between the county and its employees, and making
sound investment decisions to ensure the long-term
financial stability of the county retirement system.
"Despite the important decisions that trustees are required
to perform, under current law, there are not specific
educational or training standards that a retirement board
trustee must meet. Now more than ever, county retirement
systems need the most professional and well trained people
making investment decisions. Most investment professionals
who already possess the knowledge and expertise that
greatly benefit retirement boards choose not to serve on
county retirement boards because of existing conflict of
interest laws. Therefore, it is important for trustees who
do not work in the financial and investment world to gain
as much knowledge and training as possible about duties
they must perform."
DLW:nl 5/9/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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