BILL NUMBER: SB 528	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Walters

                        FEBRUARY 17, 2011

   An act to amend Section 22960.60 of, and to repeal Section
22960.61 of, the Government Code, relating to public employees'
retirement.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 528, as introduced, Walters. Public employees' retirement:
defined contribution plan.
   The Public Employees' Retirement Law contains the State Peace
Officers' and Firefighters' Defined Contribution Plan for state peace
officer or firefighter members in State Bargaining Unit 6, the
California Correctional Peace Officers Association, to supplement the
benefits provided under the Public Employees' Retirement System.
Under that plan, employer and employee contributions rates may be
determined by the terms of a memorandum of understanding. Existing
law also requires that the employer pick up the amounts otherwise due
as employee contributions in accordance with federal law.
   This bill would instead prohibit employer contributions to the
account of a plan participant on or after January 1, 2012. The bill
would also delete the requirement that the employer pick up the
amounts otherwise due as employee contributions.
   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 22960.60 of the Government Code is amended to
read:
   22960.60.  (a)  Employer and employee  
Employee  contribution rates may be determined by the terms of
the memorandum of understanding applicable to each plan participant
 and the employer  in accordance with the
requirements of this section.
   (b) Through the Department of Personnel Administration, the
employer shall provide the board with a true and correct copy of each
memorandum of understanding applicable to plan participants. The
board may prescribe procedures for the orderly transmittal and
receipt of these documents.
   (c) Except as provided in subdivision (e), after receipt of an
applicable memorandum of understanding that sets forth an 
employer contribution rate and any  employee contribution
rate, the board shall, in accordance with Section 22960.36, amend the
plan to provide for the  employer contribution rate and any
 employee contribution rate set forth in the memorandum of
understanding.
   (d) The  employer contribution rate and any 
employee contribution rate for state peace officers and firefighters
who have become subject to this part pursuant to the provisions of
subdivision (b) of Section 22960 shall be the contribution rate or
rates set forth in the memorandum of understanding for state peace
officers and firefighter members in Bargaining Unit 6.
   (e) The board may refuse to amend the plan under this section if,
in the board's considered judgment, the proposed amendment would
violate any applicable provision of Title 26 of the United States
Code.
   (f)  The initial employer contribution rate shall be
prescribed in the memorandum of understanding.  In the event
an MOU expires and no new memorandums of understanding takes effect,
the last memorandums of understanding in place shall control. 
   (g) Notwithstanding subdivision (f) and Section 3517.8, on or
after January 1, 2012, the employer shall not contribute any amount
to the account of a participant in the plan. 
  SEC. 2.  Section 22960.61 of the Government Code is repealed.

   22960.61.  The employer shall pick up, for the sole purpose of and
in accordance with the requirements of Section 414(h)(2) of Title 26
of the United States Code and Section 17501 of the Revenue and
Taxation Code, all of the amounts otherwise due as employee
contributions, which shall be paid by the employer in lieu of
employee contributions and which shall be deducted from the employee'
s compensation.