BILL ANALYSIS �
SENATE PUBLIC EMPLOYMENT & RETIREMENT BILL NO: SB 1382
Gloria Negrete McLeod, Chair Hearing date: April 9, 2012
SB 1382 (Negrete McLeod) as amended 3/27/12
FISCAL: NO
1937 ACT COUNTY RETIREMENT SYSTEMS: RETIREE ORGANIZATONS
HISTORY :
Sponsor: California Retired County Employees Association
Prior legislation: SB 203 (Correa), 2011
Chapter 124, Statutes of 2011
SUMMARY :
SB 1382 amends the 1937 Act County Retirement Law ('37 Act)
to clarify terminology related to recognized retiree
organizations, the items that a retiree under that system may
have deducted from his or her pay warrant, and the nature and
extent of assistance provided to the recognized retiree
organization by the retirement system with regard to mailings
to the retiree organization's members.
BACKGROUND AND ANALYSIS :
1)Existing law :
a) establishes the 1937 Act County Employees' Retirement
Law, which covers 20 independent county retirement
systems, each governed by an independent board of
retirement.
b) authorizes the retirement board to appoint an
alternate retired member to the office of the 8th member
of the board, from a list of nominees submitted by a
qualified retiree organization.
c) allows certain deductions to be taken from the
retiree's warrant to make various payments, such as for
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Date: 4/04/12 Page 1
medical premiums and life insurance, payments to
charitable organizations, and payment of personal income
taxes.
d) requires a retirement board to notify the retiree
organization with advance notice of any proposed program
changes or uses of excess funds, and to allow the
retiree organization reasonable time to comment prior to
any formal action taken by the board on the proposed
changes.
e) contains references to retiree organizations using
varying terminology.
1)This bill :
a) defines the term "recognized employee organization"
and amends various references to retiree organizations
so that the term is used consistently.
b) allows a retiree's payment for any retiree benefit
program available through a retiree organization to be
deducted from the retiree's pay warrant.
c) requires that, upon the recognized retiree
reorganization's request, the retirement system shall
assist the organization in distributing communications
regarding membership in, and retiree programs available
through, the retiree organization to some or all of the
retirees in the system.
d) specifies that the content of the communications
shall be the responsibility of the retiree organization
and that the retirement system may charge the
organization a reasonable fee for the mailings, which
may not exceed the actual cost to the system.
COMMENTS :
1) Argument in Support :
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Date: 4/04/12 Page 2
According to the sponsor,
"SB 1382 would make the '37 Act and a related Government
Code section internally consistent with respect to
references to the organization recognized by the Board of
Retirement as representing retirees of the system (the
recognized retiree organization), and clearly define such
organization. The bill would also clarify the types of
deductions that may be made from a retirement allowance
upon written authorization by a retiree. Finally, it would
establish a means by which the recognized retiree
organization can communicate by mail with the retirees it
represents, and make the organization responsible for the
costs. In this manner, the recognized retiree organization
can fulfill its obligations to those they represent."
2) SUPPORT :
California Retired County Employees Association (CRCEA),
Sponsor
3) OPPOSITION :
None to date
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Date: 4/04/12 Page 3