BILL NUMBER: SB 1232 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 9, 2012
INTRODUCED BY Senator Walters
FEBRUARY 23, 2012
An act to amend Section 20098 31870.8
of the Government Code, relating to county employees'
retirement.
LEGISLATIVE COUNSEL'S DIGEST
SB 1232, as amended, Walters. Retirement.
County employees ' retirement: cost-of-living adjustments.
Existing law, the County Employees Retirement Law of 1937,
authorizes counties to establish retirement systems for county
employees, authorizes counties to establish a board of retirement,
and authorizes the board of retirement to provide cost-of-living
adjustments.
This bill would provide, except as specified, that a person who
first becomes a member of the Orange County Employees Retirement
System on or after January 1, 2013, shall not be eligible to receive
an annual cost-of-living increase, as specified, until at least 12
months from the date of that member's retirement and the member is
only eligible to receive an adjustment based on the preceding 12
months. The bill provides that the operation of these provisions is
contingent upon the Orange County Board of Supervisors adopting a
resolution making those provisions applicable in that county, as
specified.
The Public Employees' Retirement Law (PERL) vests the management
and control of the Public Employees' Retirement System (PERS) in the
Board of Administration of PERS. PERL requires the board to appoint
and fix the compensation of an executive officer, a general counsel,
a chief actuary, a chief investment officer, and other investment
officers and portfolio managers, as specified. PERL also requires the
board to be guided by specified principles when fixing those
compensations.
This bill would make technical, nonsubstantive changes to those
provisions.
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 31870.8 is added to the
Government Code , to read:
31870.8. (a) Notwithstanding Sections 31870, 31870.1, and
31870.2, a person who first becomes a member on or after January 1,
2013, shall not be eligible to receive an annual cost-of-living
increase pursuant to any of those sections until at least 12 months
from the date of that member's retirement and the member is only
eligible to receive an adjustment based on the preceding 12 months.
(b) This section shall be applicable to members who retire on or
after the effective date of the resolution described in subdivision
(a).
(c) This section shall only apply to members who have been
employees or officials of Orange County, with respect to the portion
of their allowance attributable to that service, and does not apply
to any portion of an allowance attributable to a member's service as
an employee or official of any other district or entity within or
outside of the Orange County Employees Retirement System.
(d) This section shall not become operative until the Orange
County Board of Supervisors, by resolution adopted by a majority
vote, makes the provisions of this section applicable in that county.
SECTION 1. Section 20098 of the Government Code
is amended to read:
20098. (a) The board shall appoint and, notwithstanding Sections
19816, 19825, 19826, 19829, and 19832, shall fix the compensation of
an executive officer, a general counsel, a chief actuary, a chief
investment officer, a chief financial officer, and other investment
officers and portfolio managers whose positions are designated
managerial pursuant to Section 18801.1.
(b) The executive officer, deputy executive officers, and the
assistant executive officers may administer oaths.
(c) When fixing the compensation for the positions specified in
subdivision (a), the board shall be guided by the principles
contained in Sections 19826 and 19829, consistent with its fiduciary
responsibility to its members to recruit and retain highly qualified
and effective employees for those positions.
(d) When a position specified in subdivision (a) is filled through
a general civil service appointment, it shall be filled from an
eligible list based on an examination that was held on an open basis,
and tenure in the position shall be subject to the provisions of
Article 2 (commencing with Section 19590) of Chapter 7 of Part 2 of
Division 5 of Title 2. In addition to the causes for action specified
in that article, the board may take action under the article for
causes related to its fiduciary responsibility to its members,
including the employee's failure to meet specified performance
objectives.
(e) An individual who held a position designated in subdivision
(a), or was a member of the board, a deputy executive officer, or an
assistant executive officer, shall not, for a period of two years
after leaving that position, for compensation, act as agent or
attorney for, or otherwise represent, any other person, except the
state, by making any formal or informal appearance before, or any
oral or written communication to, the Public Employees' Retirement
System, or any officer or employee thereof, if the appearance or
communication is made for the purpose of influencing administrative
or legislative action or any action or proceeding involving the
issuance, amendment, awarding, or revocation of a permit, license,
grant, contract, or sale or purchase of goods or property.