Bill Text: CA AB1380 | 2013-2014 | Regular Session | Chaptered
Bill Title: County employees' retirement.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Passed) 2013-09-06 - Chaptered by Secretary of State - Chapter 247, Statutes of 2013. [AB1380 Detail]
Download: California-2013-AB1380-Chaptered.html
BILL NUMBER: AB 1380 CHAPTERED
BILL TEXT
CHAPTER 247
FILED WITH SECRETARY OF STATE SEPTEMBER 9, 2013
APPROVED BY GOVERNOR SEPTEMBER 6, 2013
PASSED THE SENATE JULY 1, 2013
PASSED THE ASSEMBLY AUGUST 19, 2013
AMENDED IN SENATE JUNE 18, 2013
AMENDED IN SENATE JUNE 11, 2013
AMENDED IN SENATE JUNE 4, 2013
AMENDED IN ASSEMBLY APRIL 23, 2013
AMENDED IN ASSEMBLY APRIL 1, 2013
INTRODUCED BY Committee on Public Employees, Retirement and Social
Security (Bonta (Chair), Jones-Sawyer, Mullin, Rendon, and
Wieckowski)
FEBRUARY 26, 2013
An act to amend Sections 31452, 31452.5, 31452.6, 31454, 31455,
31461.6, 31462, 31462.1, 31462.2, 31479.1, 31482.5, 31490.6,
31499.11, 31551, 31581.1, 31581.2, 31625.2, 31625.3, 31630, 31639.85,
31658, 31662.2, 31663.25, 31663.26, 31664.5, 31670, 31671, 31672,
31672.1, 31672.2, 31678.2, 31678.3, 31678.31, 31680, 31680.1,
31680.2, 31680.3, 31680.6, 31705, 31835, 31836, 31839, 31873,
31873.1, 31874.5, and 31899 of, and to add Sections 31462.05,
31620.5, 31672.3, and 31685.01 to, the Government Code, relating to
county employees' retirement.
LEGISLATIVE COUNSEL'S DIGEST
AB 1380, Committee on Public Employees, Retirement and Social
Security. County employees' retirement.
The California Public Employees' Pension Reform Act of 2013
(PEPRA) requires a public retirement system, as defined, to modify
its pension plan or plans to comply with the act and, among other
provisions, generally prohibits a public employer that offers a
defined benefit plan from offering new employees defined benefit
retirement formulas other than those established by the act, which,
in comparison to existing formulas, generally provide reduced
benefits and later ages for retirement. PEPRA prohibits the purchase
of nonqualified service credit, as defined, unless the application to
purchase the credit is received by the retirement system prior to
January 1, 2013, and subsequently approved. PEPRA prohibits an
employer from paying a new member's contribution for the normal cost
of benefits in a defined plan and prohibits an enhancement of a
public employee's retirement benefit adopted on or after January 1,
2013, from applying to service previously performed.
The County Employees Retirement Law of 1937 (CERL) authorizes
counties and districts to establish retirement systems in order to
provide pension benefits to their employees and their beneficiaries
and prescribes the rights, benefits, and duties of members in this
regard. Certain parts of CERL are applicable only in specified
counties or upon adoption by the board of supervisors of a county.
CERL provides for a defined retirement benefit based upon credited
service, final compensation, and age at retirement subject to
specified formulas relating to membership classification. The law
defines compensation earnable and final compensation for these
purposes. The law permits credit for service as an elective or
appointed county official that is uncompensated. CERL permits an
employer to pay a member's contribution for certain benefits, as
specified, and permits the retirement of certain safety members,
regardless of age, if they meet specified service requirements. CERL
authorizes an employer to permit active members to purchase
additional nonqualified service credit and permits a new formula for
calculation of retirement benefits to be applied to service already
performed. CERL further permits a county or district to provide a
supplemental defined benefit plan for the purpose of providing
benefits in excess of specified federal standards.
This bill would amend various provisions of CERL to coordinate and
subordinate that law with PEPRA. Generally, the bill would specify
that certain provisions of CERL do not apply to members who are
currently subject to PEPRA by virtue of being first employed on or
after January 1, 2013. The bill would provide that provisions
allowing a new formula for calculation of retirement benefits to be
applied to service already performed are inoperative as of January 1,
2013, and would prohibit the purchase of nonqualified service
credit, as specified. The bill would except retirement systems
established under CERL from specified provisions of PEPRA concerning
the calculation and adjustment of contribution rates.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 31452 of the Government Code is amended to
read:
31452. The right of a person to a pension, annuity, retirement
allowance, return of contributions, the pension, annuity, or
retirement allowance, any optional benefit, any other right accrued
or accruing to any person under this chapter, the money in the fund
created or continued under this chapter or the California Public
Employees' Pension Reform Act of 2013, and any property purchased for
investment purposes pursuant to this chapter, are exempt from
taxation, including any inheritance tax, whether state, county,
municipal, or district. They are not subject to execution or any
other process of court whatsoever except to the extent permitted by
Section 31603 of this code and Section 704.110 of the Code of Civil
Procedure, and are unassignable except as specifically provided in
this chapter.
SEC. 2. Section 31452.5 of the Government Code is amended to read:
31452.5. (a) The board may comply with and give effect to a
revocable written authorization signed by a retired member or
beneficiary of a retired member entitled to a retirement allowance or
benefit under this chapter or the California Public Employees'
Pension Reform Act of 2013, authorizing the treasurer or other entity
authorized by the board to deduct a specified amount from the
retirement allowance or benefit payable to any retired member or
beneficiary of a retired member for any of the following purposes:
(1) Paying premiums on any policy or certificate of group life
insurance or group disability insurance issued by an admitted
insurer.
(2) Paying premiums for a prepaid group medical or hospital
service plan.
(3) Paying premiums for a vision care program or dental plan,
approved by the board, for the benefit of the retired member or his
or her dependents.
(4) Paying premiums on national service life insurance or United
States government converted insurance.
(5) Payment for the purchase of shares in or the payment of money
to any regularly chartered credit union.
(6) Payment to a charitable organization or a federally chartered
veterans' organization that is approved by the board.
(7) Payments to a recognized retiree organization.
(8) Payment for the purchase of United States savings bonds.
(9) The payment of personal income taxes to the government of the
United States or the State of California.
(10) Payment for any retiree benefit programs available through
the recognized retiree organization. The board may require that this
payment be to a single party designated by the recognized retiree
organization, either to itself or to a third-party administrator.
(b) Each month the order shall be drawn in favor of the insurer,
institution, credit union, organization, or government named in the
written authorization for an amount equal to the deductions
authorized in subdivision (a) and made during the month.
(c) The board may charge a reasonable fee for the making of the
deductions and payments.
SEC. 3. Section 31452.6 of the Government Code is amended to read:
31452.6. (a) The board shall comply with and give effect to a
revocable written authorization signed by a retired member or
beneficiary of a retired member entitled to a retirement allowance or
benefit under this chapter or the California Public Employees'
Pension Reform Act of 2013, authorizing the treasurer or other entity
authorized by the board to deliver the monthly warrant, check, or
electronic fund transfer, for the retirement allowance or benefit to
any specified bank, savings and loan institution, or credit union to
be credited to the account of the retired member or survivor of a
deceased retired member. That delivery is full discharge of the
liability of the board to pay a monthly retirement allowance or
benefit to the retired member or survivor of a deceased retired
member.
(b) Any payments directly deposited by electronic fund transfer
following the date of death of a person who was entitled to receive a
retirement allowance or benefit under this chapter or the California
Public Employees' Pension Reform Act of 2013 shall be refunded to
the retirement system.
(c) In order to obtain information from a financial institution
following the death of a retired member or the beneficiary of a
retired member, as provided in subdivision (o) of Section 7480, the
board may certify in writing to the financial institution that the
retired member or the beneficiary of a retired member has died and
that transfers to the account of the retired member or beneficiary of
a retired member at the financial institution from the retirement
system occurred after the date of death of the retired member or the
beneficiary of a retired member.
SEC. 4. Section 31454 of the Government Code is amended to read:
31454. (a) The board of supervisors shall, not later than 90 days
after the beginning of the immediately succeeding fiscal year,
adjust the rates of interest, the rates of contributions of members,
and county and district appropriations in accordance with the
recommendations of the board, but shall not fix them in amounts that
reduce the individual benefits provided in this chapter or the
California Public Employees' Pension Reform Act of 2013.
(b) (1) The governing body of a district within the county system
that is not governed by the board of supervisors shall, not later
than 90 days after the beginning of the immediately succeeding fiscal
year, adjust the rates of contributions of district members and in
district appropriations in accordance with the recommendations of the
board, but shall not fix them in amounts that reduce the individual
benefits provided in this chapter or the California Public Employees'
Pension Reform Act of 2013.
(2) This subdivision shall not be operative in any county until
the board of supervisors, by resolution adopted by majority vote,
makes the provision applicable in that county.
SEC. 5. Section 31455 of the Government Code is amended to read:
31455. Unless the context otherwise requires, or unless
superseded by any provision of the California Public Employees'
Pension Reform Act of 2013, the definitions and general provisions
contained in this article govern the construction of this chapter.
SEC. 6. Section 31461.6 of the Government Code is amended to read:
31461.6. (a) "Compensation earnable" shall not include overtime
premium pay other than premium pay for hours worked within the
normally scheduled or regular working hours that are in excess of the
statutory maximum workweek or work period applicable to the employee
under Section 201 and following of Title 29 of the United States
Code.
(b) This section shall not apply to a member who is subject to the
California Public Employees' Pension Reform Act of 2013.
SEC. 7. Section 31462 of the Government Code is amended to read:
31462. (a) "Final compensation" means the average annual
compensation earnable by a member during any three years elected by a
member at or before the time he or she files an application for
retirement, or, if he or she fails to elect, during the three years
immediately preceding his or her retirement. If a member has less
than three years of service, his or her final compensation shall be
determined by dividing his or her total compensation by the number of
months of service credited to him or her and multiplying by 12.
(b) This section shall not apply to a member who is subject to the
California Public Employees' Pension Reform Act of 2013 for all or
any portion of his or her membership in the county retirement system.
SEC. 8. Section 31462.05 is added to the Government Code, to read:
31462.05. For a member who is subject to the California Public
Employees' Pension Reform Act of 2013 for all or any portion of his
or her membership in the county retirement system, "final
compensation" as defined in Section 7522.32 shall apply. If a member
has less than three years of service, that member's final
compensation shall be determined by dividing the total compensation
by the number of months of service credited to the member and
multiplying by 12.
SEC. 9. Section 31462.1 of the Government Code is amended to read:
31462.1. (a) (1) "Final compensation" means the average annual
compensation earnable by a member during any year elected by a member
at or before the time he or she files an application for retirement,
or, if he or she fails to elect, during the year immediately
preceding his or her retirement.
(2) This section shall not be operative in any county until such
time as the board of supervisors shall, by resolution adopted by a
majority vote, make the provisions of this section applicable in such
county.
(b) This section shall not apply to a member who is subject to the
California Public Employees' Pension Reform Act of 2013 for all or
any portion of his or her membership in the county retirement system.
SEC. 10. Section 31462.2 of the Government Code is amended to
read:
31462.2. (a) "Final compensation" for members whose service is on
a tenure that is temporary, seasonal, intermittent, or for part time
only means one-third of the total compensation earned for that
period of time during which the member rendered the equivalent of
three years of full-time service.
(b) The member may elect at or before the time he or she files an
application for retirement the period of time during which he or she
has earned three full years of credit upon which final compensation
shall be calculated. If he or she does not so elect, such period of
time immediately preceding his or her retirement shall be used.
(c) This section applies to a member meeting the conditions
specified in subdivision (a), whose service is described in
subdivision (a), and who is subject to the California Public
Employees' Pension Reform Act of 2013.
SEC. 11. Section 31479.1 of the Government Code is amended to
read:
31479.1. (a) (1) Notwithstanding Section 31479, an elective or
appointive county official may receive credit for service rendered as
a city council member even though that service was not compensated.
(2) This section shall not be operative in any county until it is
adopted by a majority vote of the board of supervisors.
(b) This section shall not apply to service performed as an
elective or appointive officer that is subject to the California
Public Employees' Pension Reform Act of 2013.
SEC. 12. Section 31482.5 of the Government Code is amended to
read:
31482.5. (a) Notwithstanding any provisions to the contrary in
Section 20894, this section shall apply to all participants in
retirement systems governed by this chapter.
(b) A person shall not receive credit for the same service in two
retirement systems supported wholly or in part by public funds under
any circumstance.
(c) Nothing in this section shall preclude concurrent
participation and credit for service in a public retirement system
and in a deferred compensation plan that meets the requirements of
Section 457 of Title 26 of the United States Code, a tax-deferred
retirement plan that meets the requirements of Section 40l(k) of
Title 26 of the United States Code, or a defined contribution plan
and trust that meets the requirements of Section 401(a), 403(b), or
415(m) of Title 26 of the United States Code.
(d) Nothing in this section shall preclude concurrent
participation and credit for service in the defined benefit plan
provided under this chapter and in a supplemental defined benefit
plan maintained by the employer that meets the requirements of
Section 401(a) of Title 26 of the United States Code, provided all of
the following conditions exist:
(1) The defined benefit plan provided under this chapter has been
designated as the employer's primary plan for the person and the
supplemental defined benefit plan is adopted by the governing body of
the employer.
(2) The supplemental defined benefit plan has received a ruling
from the Internal Revenue Service stating that the plan qualifies
under Section 401(a) of Title 26 of the United States Code, and has
furnished proof thereof to the employer.
(3) The person's participation in the supplemental defined benefit
plan does not, in any way, interfere with the person's rights to
membership in the defined benefit plan, or any benefit provided,
under this chapter.
(e) If any provision of this section conflicts with the California
Public Employees' Pension Reform Act of 2013, that provision shall
not apply to a member who is subject to the California Public
Employees' Pension Reform Act of 2013 for all or any portion of his
or her membership in the county retirement system.
SEC. 13. Section 31490.6 of the Government Code is amended to
read:
31490.6. (a) An active member may elect, by written notice filed
with the board, to make contributions pursuant to this section and to
receive up to five years of service credit in the retirement system
for additional retirement credit, if the member has completed at
least five years of credited service with that retirement system.
(b) As used in this section, "additional retirement credit" means
time that does not otherwise qualify as county service, public
service, military service, medical leave of absence, or any other
time recognized for service credit by the retirement system.
(c) Notwithstanding any other provision of this chapter, service
credit for additional retirement credit may not be counted to meet
the minimum qualifications for service retirement or for purposes of
establishing eligibility for benefits based on 30 years of service,
additional ad hoc cost-of-living benefits based on service credit,
health care benefits, or any other benefits based upon service
credit.
(d) A member who elects to make contributions and receive service
credit for additional retirement credit shall contribute to the
retirement fund, prior to the effective date of his or her
retirement, by lump-sum payment or by installment payments over a
period not to exceed 10 years, an amount that, at the time of
commencement of purchase, in the opinion of the board and the
actuary, is sufficient to not place any additional financial burden
upon the retirement system.
(e) No member may receive service credit under this section for
additional retirement credit that he or she has not completed payment
pursuant to subdivision (d) before the effective date of his or her
retirement or, if applicable, prior to the date provided in Section
31485.8. Subject to the limitations of United States Internal Revenue
Service regulations, a member who has elected to make payment in
installments may complete payment by lump sum at any time prior to
the effective date of his or her retirement.
(f) Sums paid by a member pursuant to this section shall be
considered to be and administered as contributions by the member.
(g) This section is not operative until the board of supervisors,
by resolution adopted by majority vote, makes this section operative
in the county.
(h) Pursuant to Section 7522.46, this section shall apply only to
an application to purchase additional retirement credit that was
received by the retirement system prior to January 1, 2013, that is
subsequently approved by the system.
SEC. 14. Section 31499.11 of the Government Code is amended to
read:
31499.11. Unless the context otherwise requires, the definitions
contained in this section govern the construction of this article.
(a) "Board" means the board of retirement.
(b) "Employer" means the county or district or agency whose
employees are members of the retirement system of the county.
(c) "Federal system" means the Old Age and Survivors Insurance
provisions of the Social Security Act.
(d) "Final compensation" means the average annual compensation
earnable by a general member during any three years, whether or not
consecutive, for a person who became a general member of the plan
prior to January 1, 2013, or, for a person who became a general
member of the plan on or after January 1, 2013, final compensation
means the average annual compensation earnable by a general member
during any 36 consecutive months, to be elected by the member at or
before the time an application for retirement is filed, or, if no
election is made, during the three years in which the member or
former member last earned compensation preceding retirement. If a
member or former member has less than three years of service, final
compensation shall be determined by dividing total compensation by
the number of months of service credited to the member or former
member and multiplying by 12. In no event shall final compensation
include any disability benefits received by the member or former
member under a disability plan provided by the employer.
(e) "Member" or "general member" means an employee hired on a
permanent basis, as defined by the employer, except an employee
eligible for safety member.
(f) "Primary insurance amount" means the monthly retirement
benefit payable under the federal system at the age of 65.
(g) "Service" means the period of uninterrupted employment of a
member and the time in which a member or former member (1) is totally
disabled, and (2) is receiving disability benefits or is eligible to
receive disability benefits either during or after any elimination
or qualifying period, under a disability plan provided by the
employer.
(h) Except as otherwise provided in this article, a member shall
not be credited with service for any period of time in which the
member is absent from work without pay.
(i) Unless otherwise provided, service shall not include military
service or public service other than service with the employer.
SEC. 15. Section 31551 of the Government Code is amended to read:
31551. The persons expressly declared to be ineligible to
membership by this article shall not become members of the retirement
association, and, except as expressly excluded, the persons
enumerated in this article or the California Public Employees'
Pension Reform Act of 2013 shall become members of the association.
Persons employed as participants in a program of, and whose wages
are paid in whole or in part by federal funds in accordance with, the
Comprehensive Employment and Training Act of 1973 (Public Law
93-203), as amended, are excluded from membership. This exclusion
shall not apply to active fire suppression personnel who are safety
members pursuant to Sections 31469.3 and 31470.4.
SEC. 16. Section 31581.1 of the Government Code is amended to
read:
31581.1. (a) The board of supervisors may elect to pay up to
one-half of the contributions normally required of members for any
period of time designated in the resolution providing for such
payment. The payments shall not become part of the accumulated
contributions of the member. These payments may be made with respect
to employees in one or more bargaining units irrespective of whether
they are made with respect to other employees.
(b) This section shall not apply to members who are subject to
Section 7522.30.
SEC. 17. Section 31581.2 of the Government Code is amended to
read:
31581.2. (a) The board of supervisors or the governing body of
the district may agree to pay any portion of the contributions
required to be paid by a member. All payments shall be in lieu of
wages and shall be reported simply as normal contributions and shall
be credited to member accounts.
(b) The enactment of a resolution pursuant to this section shall
not create vested rights in any member. The board of supervisors or
the governing body of the district may amend or repeal the resolution
at any time, subject to the provisions of Sections 3504 and 3505, or
any similar rule or regulation of the county or district.
(c) This section shall not apply to members who are subject to
Section 7522.30.
SEC. 18. Section 31620.5 is added to the Government Code, to read:
31620.5. The normal rates of contribution of general and safety
members subject to the California Public Employees' Pension Reform
Act of 2013 shall be determined pursuant to Section 7522.30 subject
to the following exceptions:
(a) The board may, but is not required to, apply the provisions of
subdivision (c) of Section 7522.30 that require the initial
contribution rate to be rounded to the nearest quarter of 1 percent.
(b) Subdivision (d) of Section 7522.30 shall not apply to the
contribution rates of members of retirement systems established
pursuant to this chapter.
SEC. 19. Section 31625.2 of the Government Code is amended to
read:
31625.2. (a) Notwithstanding any other provisions of this
chapter, contributions shall not be deducted from the salary of any
member having credit for 30 years' service providing the member was a
member on March 7, 1973, and remained in membership continuously
until credited with 30 years' service.
(b) Notwithstanding subdivision (a), contributions shall not be
deducted from the salary of any member having credit for 30 years' of
continuous service in the retirement association of a county of the
seventh class as established by Sections 28020 and 28028. This
subdivision shall not apply to a member who is subject to the
provisions of the California Public Employees' Pension Reform Act of
2013.
SEC. 20. Section 31625.3 of the Government Code is amended to
read:
31625.3. (a) Notwithstanding any other provision of this chapter,
contributions shall not be deducted from the salary of any member
who was a member before or after March 7, 1973, of the retirement
association, another county retirement system established under this
chapter, or the Public Employees' Retirement System, and has total
reciprocal service credit of not less than 30 years in the retirement
association, or in the retirement association and another county
retirement system established under this chapter, or the Public
Employees' Retirement System, or a combination thereof.
(b) This section shall not apply in any county unless and until it
is adopted by a majority vote of the board of supervisors.
(c) This section shall not apply to members who are subject to
Section 7522.30.
SEC. 21. Section 31630 of the Government Code is amended to read:
31630. (a) Notwithstanding any other provisions in this chapter,
the South Coast Air Quality Management District and in any county
which has adopted Section 31676.1, 31676.11, 31676.12, 31676.13,
31676.14, 31676.15, or 31751, the board of supervisors or district
board, as the case may be, may agree to pay any portion of the
members' normal contributions to the system. All the contributions
paid by the county or district, as the case may be, shall remain its
contributions, and no right therein shall accrue to any employee
prior to the employee's election to take a regular, deferred, or
disability retirement.
(b) Any contributions paid by the board of supervisors or the
district board on behalf of the members shall be as determined by
upon actuarial advice, and approved by the board of retirement.
(c) This section shall not apply to members who are subject to
Section 7522.30.
SEC. 22. Section 31639.85 of the Government Code is amended to
read:
31639.85. (a) Notwithstanding any other provisions in this
chapter, in any county which has adopted Section 31676.1, 31676.11,
31676.12, 31676.13, 31676.14, or 31676.15 the board of supervisors
may agree to pay any portion of the safety members' normal
contributions to the system. All contributions paid by the county
shall remain county contributions, and no right therein shall accrue
to any employee prior to the employee's election to take a regular,
deferred, or disability retirement.
(b) Any contributions paid by the board of supervisors on behalf
of the safety members shall be as determined upon actuarial advice,
and approved by the board of retirement.
(c) This section shall not apply to members who are subject to
Section 7522.30.
SEC. 23. Section 31658 of the Government Code is amended to read:
31658. (a) An active member may elect, by written notice filed
with the board, to make contributions pursuant to this section and to
receive up to five years of service credit in the retirement system
for additional retirement credit, if the member has completed at
least five years of credited service with that retirement system.
(b) As used in this section, "additional retirement credit" means
time that does not otherwise qualify as county service, public
service, military service, medical leave of absence, or any other
time recognized for service credit by the retirement system.
(c) Notwithstanding any other provision of this chapter, service
credit for additional retirement credit may not be counted to meet
the minimum qualifications for service or disability retirement or
for purposes of establishing eligibility for any benefits based on 30
years of service, additional ad hoc cost-of-living benefits based on
service credit, health care benefits, or any other benefits based
upon service credit.
(d) Any member who elects to make contributions and receive
service credit for additional retirement credit shall contribute to
the retirement fund, prior to the effective date of his or her
retirement, by lump-sum payment or by installment payments over a
period not to exceed 10 years, an amount that, at the time of
commencement of purchase, in the opinion of the board and the
actuary, is sufficient to not place any additional financial burden
upon the retirement system.
(e) No member may receive service credit under this section for
any additional retirement credit for which he or she has not
completed payment pursuant to subdivision (d) before the effective
date of his or her retirement. Subject to the limitations of United
States Internal Revenue Service regulations, a member who has elected
to make payment in installments may complete payment by lump sum at
any time prior to the effective date of his or her retirement.
(f) Any sums paid by a member pursuant to this section shall be
considered to be and administered as contributions by the member.
(g) This section is not operative in any county until the board of
supervisors, by resolution adopted by majority vote, makes this
section applicable in the county.
(h) Pursuant to Section 7522.46, this section shall apply only to
an application to purchase additional retirement credit that was
received by the retirement system prior to January 1, 2013, that is
subsequently approved by the system.
SEC. 24. Section 31662.2 of the Government Code is amended to
read:
31662.2. Retirement of a safety member in a county subject to the
provisions of Section 31676.1, or of Section 31695.1, if applicable,
who has met the requirements for age
and service shall be made by the board pursuant to this
article or pursuant to the California Public Employees' Pension
Reform Act of 2013, whichever is applicable.
SEC. 25. Section 31663.25 of the Government Code is amended to
read:
31663.25. (a) Except as provided in Section 31663.26, a safety
member who has reached the applicable compulsory age of retirement,
if any, or a safety member who has completed 10 years of continuous
service and who has reached the age of 50, or a safety member who has
completed 20 years of service regardless of age, may be retired upon
filing with the board a written application setting forth the date
upon which the member desires his or her retirement to become
effective which shall be not more than 60 days after the date of
filing the application.
(b) This section shall not apply to a member who is subject to the
provisions of the California Public Employees' Pension Reform Act of
2013 (Article 4 (commencing with Section 7522) of Chapter 21 of
Division 7 of Title 1) for all or any portion of that member's
membership in the county retirement system.
SEC. 26. Section 31663.26 of the Government Code is amended to
read:
31663.26. (a) Notwithstanding Section 31663.25, a safety member
who has reached the applicable compulsory age of retirement, if any,
or a safety member who is a full-time employee, has completed 10
years of service, has reached the age of 50, and has no service break
which exceeds 12 months, or a safety member who has completed 20
years of service regardless of age, may be retired upon filing with
the board a written application setting forth the date upon which the
member desires his or her retirement to become effective which shall
be not more than 60 days after the date of filing the application.
(b) This section shall not be operative in any county until such
time as the board of supervisors shall, by ordinance, make this
section applicable in the county.
(c) This section shall not apply to a member who is subject to the
provisions of the California Public Employees' Pension Reform Act of
2013 for all or any portion of his or her membership in the county
retirement system.
SEC. 27. Section 31664.5 of the Government Code is amended to
read:
31664.5. (a) Notwithstanding any other provisions of this
chapter, a safety member may exercise the option of retiring upon
completion of 25 years of service, and if such option is exercised,
the safety member shall receive a retirement allowance equal to no
less than 30 percent of his or her final compensation.
(b) This section shall not apply to a member who is subject to the
provisions of the California Public Employees' Pension Reform Act of
2013 for all or any portion of his or her membership in the county
retirement system.
SEC. 28. Section 31670 of the Government Code is amended to read:
31670. Retirement of a member who has met the requirements for
age and service shall be made by the board pursuant to this article
or pursuant to the California Public Employees' Pension Reform Act of
2013, whichever is applicable.
SEC. 29. Section 31671 of the Government Code is amended to read:
31671. (a) The amount of compensation that is taken into account
in computing benefits payable to any person who first becomes a
member of the retirement system on or after July 1, 1996, shall not
exceed the limitations in Section 401(a)(17) of Title 26 of the
United States Code upon public retirement systems, as that section
may be amended from time to time and as that limit may be adjusted by
the Commissioner of Internal Revenue for increases in cost of
living. The determination of compensation for each 12-month period
shall be subject to the annual compensation limit in effect for the
calendar year in which the 12-month period begins. In a determination
of average annual compensation over more than one 12-month period,
the amount of compensation taken into account for each 12-month
period shall be subject to the applicable annual compensation limit.
(b) The compensation limitations specified in Section 7522.10
shall also apply to a member who is subject to the provisions of the
California Public Employees' Pension Reform Act of 2013 for all or
any portion of his or her membership in the county retirement system.
SEC. 30. Section 31672 of the Government Code is amended to read:
31672. (a) A member who has reached 70 years of age or a member
who has completed 10 years of service and who has reached 55 years of
age, or a member who has completed 30 years of service regardless of
age, may be retired upon filing with the board a written
application, setting forth the date upon which he or she desires his
or her retirement to become effective not earlier than the date the
application is filed with the board and not more than 60 days after
the date of filing the application. Fifty-five years of age in the
preceding sentence may be reduced to 50 years of age in a county by
resolution of the board of supervisors.
(b) This section shall not apply to any member who is subject to
the provisions of the California Public Employees' Pension Reform Act
of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of
Division 7 of Title 1) for all or any portion of that member's
membership in the county retirement system.
SEC. 31. Section 31672.1 of the Government Code is amended to
read:
31672.1. (a) An employee who has reached the age of 55 years, has
held a position in the county service for 10 years, and on the date
of retirement is employed in a temporary, seasonal, intermittent, or
part-time position in which the employee has received credit for five
full years of service, may be retired upon filing with the board a
written application, setting forth the date upon which the employee
desires his or her retirement to become effective which shall not be
more than 60 days after the date of filing the application. The age
of 55 in the preceding sentence may be reduced to age 50 in any
county by resolution of the board of supervisors if such reduction
has also been made under Section 31672.
(b) This section shall not apply to a member who is subject to the
provisions of the California Public Employees' Pension Reform Act of
2013 for all or any portion of his or her membership in the county
retirement system.
SEC. 32. Section 31672.2 of the Government Code is amended to
read:
31672.2. (a) An elective officer who filed a declaration with the
board to become a member, pursuant to Section 31553, who has served
two complete consecutive terms in an elective office, and who has
reached the minimum age for retirement provided in Section 31672, may
be retired upon filing with the board a written application setting
forth the date upon which he or she desires his or her retirement to
become effective which shall be not more than 60 days after the date
of filing the application.
(b) This section shall become operative only in any county of the
16th class, as defined by Section 28020 and 28037, as amended by
Chapter 1204 of the Statutes of 1971, and on the first day of the
calendar month after the board of supervisors adopts a resolution
making it operative in the county.
(c) This section shall not apply to an elective officer who is
subject to the provisions of the California Public Employees' Pension
Reform Act of 2013 for all or any portion of his or her membership
in the county retirement system.
SEC. 33. Section 31672.3 is added to the Government Code, to read:
31672.3. A member of a county retirement system who is subject to
the California Public Employees' Pension Reform Act of 2013 (Article
4 (commencing with Section 7522) of Chapter 21 of Division 7 of
Title 1) for all or a portion of the member's membership in the
county retirement system who has completed five years of service and
has reached the minimum retirement age applicable to that member
under the act, or has reached 70 years of age, may be retired upon
filing with the board a written application, setting forth the date
upon which the member desires his or her retirement to become
effective which shall be not more than 60 days after the date of
filing the application.
SEC. 34. Section 31678.2 of the Government Code is amended to
read:
31678.2. (a) Notwithstanding Section 31678 or any other provision
of this chapter, a board of supervisors or a governing body of a
district may, by resolution adopted by majority vote, make any
section of this chapter prescribing a formula for calculation of
retirement benefits applicable to service credit earned on and after
the date specified in the resolution, which date may be earlier than
the date the resolution is adopted.
(b) A resolution adopted pursuant to this section may, if approved
in a memorandum of understanding executed by the board of
supervisors and the employee representatives, require members to pay
all or part of the contributions by a member or employer, or both,
that would have been required if the section or sections specified in
subdivision (a), as adopted by the board or governing body, had been
in effect during the period of time designated in the resolution.
The payment by a member shall become part of the accumulated
contributions of the member.
(c) This section shall only be applicable to members who retire on
or after the effective date of the resolution described in
subdivision (a).
(d) On or after January 1, 2013, this section is inoperative
pursuant to Section 7522.44.
SEC. 35. Section 31678.3 of the Government Code is amended to
read:
31678.3. (a) Notwithstanding any other provision of this chapter,
a resolution adopted by a board of supervisors to make any formula
for calculation of retirement benefits described in this section
applicable to the employees of the county does not apply to make that
formula applicable to the employees of any district within the
county. The governing body of a district may elect, by resolution
adopted by majority vote, to make any formula for calculation of
retirement benefits described in this section applicable to the
employees of the district irrespective of whether the board of
supervisors has made that election with respect to employees of the
county.
(b) Notwithstanding any other provision of this chapter, the board
of supervisors or the governing body of a district may, by
resolution adopted by majority vote, pursuant to a memorandum of
understanding made under the Meyers-Milias-Brown Act (Chapter 10
(commencing with Section 3500) of Division 4 of Title 2), do any or
all of the following:
(1) Apply Section 31621.8, 31676.17, 31676.18, or 31676.19 for the
calculation of retirement benefits for general members to the
employees in a bargaining unit comprised of general members.
(2) Apply Section 31664.1 for the calculation of retirement
benefits for safety members to the employees in a bargaining unit
comprised of safety members.
(3) Apply Section 31664 for the calculation of retirement benefits
for safety members to the employees of the Probation Services Unit
and the Probation Supervisory Management Unit.
(c) Any nonrepresented employees within similar job
classifications as employees in a bargaining unit described in
subdivision (b) or supervisors and managers thereof shall be subject
to the same formula for the calculation of retirement benefits
applicable to the employees in that bargaining unit.
(d) A resolution adopted pursuant to subdivision (b) may require
members to pay a portion of the contributions attributable to past
service liability, that would have been required if the benefits
specified in the resolution, as adopted by the board of supervisors
or the governing body of the district, had been in effect during the
period of time designated in the resolution. Any payments required of
represented employees shall first be approved in a memorandum of
understanding made under the Meyers-Milias-Brown Act and executed by
the board of supervisors or the governing body of the district and
the employee representatives. The contributions paid by a member
pursuant to this subdivision shall become part of the accumulated
contributions of the member.
(e) This section shall only be applicable to members who retire on
or after the effective date of the resolution described in
subdivision (b).
(f) The board of supervisors or the governing body of a district
may not unilaterally implement a retirement formula for any of its
bargaining units.
(g) This section shall apply only in Orange County.
(h) Beginning January 1, 2013, if any provision of this section
conflicts with the California Public Employees' Pension Reform Act of
2013, the provisions of that act shall prevail.
SEC. 36. Section 31678.31 of the Government Code is amended to
read:
31678.31. (a) Notwithstanding any other provision of this
chapter, the board of supervisors or the governing body of a district
within the county may, by resolution adopted by majority vote, do
the following:
(1) Require an employee hired after approval of the resolution, to
elect in writing, either the pension calculation stated in Section
31676.19 or the pension calculation stated in Section 31676.01. The
election shall be made within 45 calendar days of beginning
employment with the county or the district. If an employee does not
elect the pension calculation stated in Section 31676.19 within 45
days of beginning employment, the employee shall be deemed to have
elected the pension calculation stated in Section 31676.01. An
employee shall not be permitted to rescind his or her election unless
the board of supervisors or the governing body of a district,
through the adoption of a subsequent ordinance or resolution by
majority vote, makes a provision permitting the employee to rescind
the election applicable to the county or district.
(2) Require a current employee of the county or district covered
by the pension calculation stated in Section 31676.19, hired before
approval of the resolution, within 180 calendar days of approval of
the resolution to make, at the employee's option, a one-time written
election to terminate the application of the pension calculation
stated in Section 31676.19 for future service and elect instead the
pension calculation stated in Section 31676.01 for future service.
This election shall be signed by the employee. Prior to signing an
election, a current employee who chooses to terminate the pension
calculation stated in Section 31676.19 and elects instead the pension
calculation stated in Section 31676.01, shall be provided by the
county or district governing body with a written explanation of the
effect and impact of the termination. A current employee who chooses
to terminate the pension calculation stated in Section 31676.19 shall
be required to sign an affidavit stating that the employee has been
fully informed regarding the effect of the termination and
understands that the termination is irrevocable. The affidavit shall
also state that the employee has chosen termination of his or her own
free will and was not coerced into termination by the employer or
any other person. An employee shall not be permitted to rescind his
or her election unless the board of supervisors or the governing body
of a district, through the adoption of a subsequent ordinance or
resolution by majority vote, makes a provision permitting the
employee to rescind the election applicable to the county or
district.
(3) Require a current employee of the county or district, hired
before approval of the resolution, but not covered by the pension
calculation stated in Section 31676.19, who after approval of the
resolution becomes eligible for the pension calculation stated in
Section 31676.19, to make a one-time written election between the
pension calculation stated in Section 31676.19 for future service and
the pension calculation stated in Section 31676.01 for future
service. The election shall be made within 45 calendar days of
becoming eligible for the pension calculation stated in Section
31676.19. The election shall be signed by the employee. Prior to
signing the election, an employee who does not elect the pension
calculation stated in Section 31676.19 and elects instead the pension
calculation stated in Section 31676.01 shall be provided by the
county or the district governing body with a written explanation of
the effect and impact of the election. An employee who does not
choose the pension calculation stated in Section 31676.19 shall be
required to sign an affidavit stating that the employee has been
fully informed regarding the effect of the election and understands
that the election is irrevocable. The affidavit shall also state that
the employee has chosen the election of his or her own free will and
was not coerced into the election by the employer or any other
person. An employee shall not be permitted to rescind his or her
election unless the board of supervisors or the governing body of a
district, through the adoption of a subsequent ordinance or
resolution by majority vote, makes a provision permitting the
employee to rescind the election applicable to the county or
district. Failure to make an election within 45 calendar days shall
be considered cause for termination of employment until the employee
described in this paragraph has made the required election.
(b) The retirement allowance for service rendered prior to the
effective date of the election under paragraph (2) or (3) of
subdivision (a) for an employee covered by any other pension
calculation shall be calculated under the employee's prior pension
calculation. Any employee who has made an election shall not be
eligible for retirement unless the employee meets the minimum
requirements of the provision or provisions pursuant to the election
applicable at the date of retirement.
(c) (1) An election for the pension calculation stated in Section
31676.01 by any employee hired before approval of the resolution
shall include the signature of the designated beneficiary of the
employee's pension acknowledging the election, or shall include a
written declaration of one or more of the following as may be
applicable:
(A) The beneficiary has no identifiable community property
interest in the benefit.
(B) The employee does not know, and has taken all reasonable steps
to determine, the whereabouts of the beneficiary.
(C) The beneficiary has been advised of the election and has
refused to sign the written acknowledgment.
(D) The beneficiary is incapable of executing the acknowledgment
because of an incapacitating mental or physical condition.
(2) The purpose of this subdivision is to notify the beneficiary,
including the employee's spouse or domestic partner, of an election
made by the employee that may affect the entitlement of the
beneficiary. In addition to the foregoing, if the designated
beneficiary of an employee's pension is a spouse or domestic partner
of the employee, the election shall also evidence agreement to the
election by the spouse or domestic partner.
(3) A person who knowingly provides false information in the
written declaration submitted pursuant to paragraph (1) shall be
subject to a civil penalty of not less than one thousand dollars
($1,000) and not more than twenty-five thousand dollars ($25,000), in
addition to any civil remedies available to the board. An action to
impose a civil penalty pursuant to this paragraph may be brought by
any public prosecutor in the name of the people of the state.
(d) In the event the employee elects the pension calculation
stated in Section 31676.01, the employee shall be eligible to receive
a contribution from the county or district based on the employee's
contribution to a defined contribution program.
(e) In addition to employees represented by bargaining units, any
other employees not represented by a bargaining unit, as well as
supervisors, managers, and executives, may be subject to subdivision
(a) pursuant to the resolution described in subdivision (a).
(f) This section shall apply only to members who retire on or
after the effective date of the resolution described in subdivision
(a).
(g) This section shall not apply to safety members.
(h) A resolution adopted by the board of supervisors under
subdivision (a) shall not apply to the employees of any district
within the county. The governing body of a district may elect, by
resolution adopted by majority vote, to make this section applicable
to the employees of the district irrespective of whether the board of
supervisors has made that election applicable to employees in the
county.
(i) A resolution adopted pursuant to this section may require any
member that elects or is deemed to have elected the pension
calculation stated in Section 31676.01 to pay additional member
contributions beyond those member contributions required under
Section 31621. These additional contributions shall not result in an
additional benefit to the member. However, the additional
contributions paid by a member pursuant to the authority granted by
this subdivision shall become part of the accumulated contributions
of the member for the following purposes only:
(1) Funding the annuity portion of the member's retirement
allowance.
(2) Withdrawal of contributions by the member upon the member's
withdrawal from, and termination of membership in, the retirement
system.
(j) Any person employed subsequent to the effective date of a
resolution adopted under subdivision (a) who would otherwise qualify
as a member shall not become a member until he or she certifies his
or her election, or otherwise as described above has been deemed to
have elected, to be covered by the pension calculation stated in
Section 31676.01 or the pension calculation stated in Section
31676.19. Once the election is made or is deemed to have been made,
the employee will become a member retroactive to the date of hire.
Any employee who subsequently otherwise becomes eligible for the
pension calculation stated in Section 31676.19 subsequent to the
effective date of a resolution adopted under subdivision (a) shall
continue to be covered by any immediately preceding retirement plan
to which he or she was entitled from the county or district until he
or she certifies his or her election to be covered by the pension
calculation stated in Section 31676.01 or the pension calculation
stated in Section 31676.19.
(k) In the event that the final day to make an election or perform
an act described in this section falls on a weekend or on a county
or district holiday, a subsequent election or act shall be timely if
made or performed on the immediately following regular business day
of the county or district.
(l) This section shall apply only in Orange County.
(m) Beginning January 1, 2013, if any provision of this section
conflicts with the California Public Employees' Pension Reform Act of
2013, the provisions of that act shall prevail.
SEC. 37. Section 31680 of the Government Code is amended to read:
31680. (a) A member retired for service or disability shall not
be paid for any service rendered by him or her to the county or
district after the date of his or her retirement, except:
(1) As specifically provided in this chapter.
(2) Pursuant to Section 31733.
(3) The county or district may pay and the retired member may
receive:
(A) Rewards for ideas or suggestions made by the retired member
for the improvement of county or district activities.
(B) Compensation for his or her services on the board.
(4) If the member is subsequently elected to county office after
retirement.
(b) As herein used the term "services rendered" shall refer to
service rendered as an officer or employee of the county or district
and shall not refer to services performed by a retired officer or
employee as an independent contractor engaged by a county or district
under a bona fide contract for services within the purview of
Section 31000 of this code.
(c) Beginning January 1, 2013, if any provision of this section
conflicts with the California Public Employees' Pension Reform Act of
2013, the provisions of that act shall prevail.
SEC. 38. Section 31680.1 of the Government Code is amended to
read:
31680.1. (a) Any person who has retired under this chapter may,
without reinstatement from retirement or loss or interruption of
benefits under this chapter, serve as a juror, election officer,
field deputy for registration of voters, member of the board of the
association or temporarily as a judge when assigned by the Chairman
of the Judicial Council and receive any fees payable for that
service.
(b) Beginning January 1, 2013, if any provision of this section
conflicts with the California Public Employees' Pension Reform Act of
2013, the provisions of that act shall prevail.
SEC. 39. Section 31680.2 of the Government Code is amended to
read:
31680.2. (a) Any person who has retired may be employed in a
position requiring special skills or knowledge, as determined by the
county or district employing him or her, for not to exceed 90 working
days or 720 hours, whichever is greater, in any one fiscal year or
any other 12-month period designated by the board of supervisors and
may be paid for that employment. That employment shall not operate to
reinstate the person as a member of this system or to terminate or
suspend his or her retirement allowance, and no deductions shall be
made from his or her salary as contributions to this system.
(b) (1) This section shall not apply to any retired person who is
otherwise eligible for employment under this section if, during the
12-month period prior to an appointment described in this section,
that retired person receives unemployment insurance compensation
arising out of prior employment subject to this section with the same
employer.
(2) A retired person who accepts an appointment after receiving
unemployment insurance compensation as described in this subdivision
shall terminate that employment on the last day of the current pay
period and shall not be eligible for reappointment subject to this
section for a period of 12 months following the last day of
employment.
(3) Beginning January 1, 2013, if any provision of this section
conflicts with the California Public Employees' Pension Reform Act of
2013, the provisions of that act shall prevail, except that the
limit on postretirement employment provided in subdivision (a) to the
greater of 90 working days or 720 hours shall remain effective.
SEC. 40. Section 31680.3 of the Government Code is amended to
read:
31680.3. (a) Notwithstanding Section 31680.2, any member who has
been covered under the provisions of Section 31751 and has retired
may be reemployed in a position requiring special skills or
knowledge, as
determined by the county or district employing the member, for not to
exceed 120 working days or 960 hours, whichever is greater, in any
one fiscal year and may be paid for that employment. That employment
shall not operate to reinstate the person as a member of this system
or to terminate or suspend the person's retirement allowance, and no
deductions shall be made from the person's salary as contributions to
this system.
(b) (1) This section shall not apply to any retired member who is
otherwise eligible for reemployment under this section if, during the
12-month period prior to an appointment described in this section,
that retired person receives unemployment insurance compensation
arising out of prior employment subject to this section with the same
employer.
(2) A retired person who accepts an appointment after receiving
unemployment insurance compensation as described in this subdivision
shall terminate that employment on the last day of the current pay
period and shall not be eligible for reappointment subject to this
section for a period of 12 months following the last day of
employment.
(c) Beginning January 1, 2013, if any provision of this section
conflicts with the California Public Employees' Pension Reform Act of
2013, the provisions of that act shall prevail.
SEC. 41. Section 31680.6 of the Government Code is amended to
read:
31680.6. (a) Notwithstanding Section 31680.2, any county subject
to Section 31680.2 may, upon adoption of a resolution by a majority
vote by the board of supervisors, extend the period of time provided
for in Section 31680.2 for which a person who has retired may be
employed in a position requiring special skills or knowledge, as
determined by the county or district employing him or her, not to
exceed 120 working days or 960 hours, whichever is greater, in any
one fiscal year or any other 12-month period designated by the board
of supervisors and may be paid for that employment. That employment
shall not operate to reinstate the person as a member of this system
or to terminate or suspend his or her retirement allowance, and no
deductions shall be made from his or her salary as contributions to
this system.
(b) (1) This section shall not apply to any retired person who is
otherwise eligible for employment under this section if, during the
12-month period prior to an appointment described in this section,
that retired person receives unemployment insurance compensation
arising out of prior employment subject to this section with the same
employer.
(2) A retired person who accepts an appointment after receiving
unemployment insurance compensation as described in this subdivision
shall terminate that employment on the last day of the current pay
period and shall not be eligible for reappointment subject to this
section for a period of 12 months following the last day of
employment.
(c) Beginning January 1, 2013, if any provision of this section
conflicts with the California Public Employees' Pension Reform Act of
2013, the provisions of that act shall prevail.
SEC. 42. Section 31685.01 is added to the Government Code, to
read:
31685.01. Benefits enumerated in this article shall be determined
in accordance with the provisions of this chapter or the California
Public Employees' Pension Reform Act of 2013, whichever is
applicable.
SEC. 43. Section 31705 of the Government Code is amended to read:
31705. The retirement allowance shall be calculated according to
the provisions of this chapter, or the California Public Employees'
Pension Reform Act of 2013, whichever is applicable, as they exist at
the time of the commencement of the retirement allowance.
SEC. 44. Section 31835 of the Government Code is amended to read:
31835. The average compensation during any period of service as a
member of the Public Employees' Retirement System, a member of the
Judges' Retirement System or Judges' Retirement System II, a member
of a retirement system established under this chapter in another
county, a member of the State Teachers' Retirement System, or a
member of a retirement system of any other public agency of the state
that has established reciprocity with the Public Employees'
Retirement System subject to the conditions of Section 31840.2, shall
be considered compensation earnable or pensionable compensation
pursuant to Section 7522.34, whichever is applicable, by a member for
purposes of computing final compensation for that member provided:
(a) The period intervening between active memberships in the
respective systems does not exceed 90 days, or 6 months if Section
31840.4 applies. That period shall not include any time during which
the member was prohibited by law from becoming a member of the system
of another county.
Notwithstanding anything in this chapter to the contrary, the
90-day or 6-month restriction referred to in this section or any
other provision of this chapter affecting deferred retirement shall
not be applicable to any members who left county or district service
prior to October 1, 1949, and subsequently redeposited.
(b) He or she retires concurrently under both systems and is
credited with the period of service under that other system at the
time of retirement.
The provisions of this section shall be applicable to all members
and beneficiaries of the system.
SEC. 45. Section 31836 of the Government Code is amended to read:
31836. "Service," solely for purposes of qualification for
payment of benefits and retirement allowances, shall also include
service as an employee of the state or a contracting agency under the
Public Employees' Retirement System or of another county having a
retirement system established under this chapter, or as a member of
the State Teachers' Retirement System, or as a member of a retirement
system of any other public agency of the state that has established
reciprocity with the Public Employees' Retirement System subject to
the conditions of Section 31840.2, if the compensation for such
service constitutes compensation earnable or pensionable compensation
pursuant to Section 7522.34, whichever is applicable, by a member
under Section 31835 of this part.
No credit shall be granted in this retirement system for service
for which the member has received credit in another retirement system
or for which he or she is presently receiving a retirement allowance
from another retirement system.
SEC. 46. Section 31839 of the Government Code is amended to read:
31839. Upon the death before retirement of a member, while in
service as a member of the Public Employees' Retirement System or a
retirement system established pursuant to this chapter in another
county, who has made an election pursuant to Section 31700 and 31832,
the death benefit provided in Section 31781 payable by the system
from which he or she elected deferred retirement shall consist of:
(a) When death is not the result of a disease or injury arising
out of and in the course of employment, the amount of such death
benefit shall not exceed an amount which when added to the death
benefit payable for the member under such other system will equal the
total of the accumulated contributions to both systems plus 50
percent of the annual compensation earnable or pensionable
compensation pursuant to Section 7522.34, whichever is applicable, by
the deceased during the 12 months immediately preceding his or her
death.
(b) When death is the result of disease or injury arising out of
and in the course of his or her employment as a member of such other
system, such death benefit shall consist solely of the member's
accumulated contributions.
SEC. 47. Section 31873 of the Government Code is amended to read:
31873. (a) Any increases in contributions shall be shared equally
between the county or district and the contributing members, with
the individual member's contributions based upon the member's age at
his or her nearest birthday at time of entrance into the retirement
system or based on a single rate of contributions pursuant to Section
31621.11, 31639.26, or as otherwise authorized by this chapter or
the California Public Employees' Pension Reform Act of 2013. The
board of supervisors by a majority vote may elect to pay part of the
costs of the contributions which would otherwise be assessed to the
individual members.
(b) Notwithstanding subdivision (a), pursuant to Section 7522.30,
the board of supervisors shall not pay any part of the costs of the
member contributions of new members as defined in subdivision (f) of
Section 7522.04.
SEC. 48. Section 31873.1 of the Government Code is amended to
read:
31873.1. (a) Any cost-of-living contributions required for
benefits under Section 31870.3 shall be shared equally between the
county or district and the contributing members. The individual
member's contributions shall be based upon the member's age at the
member's nearest birthday at time of entrance into the retirement
system, and shall be expressed as a percentage of the member's normal
contribution rate. The board of supervisors by a majority vote may
elect to pay all or part of the costs of the contributions which
would otherwise be assessed to the individual members.
(b) Notwithstanding subdivision (a), pursuant to Section 7522.30,
the board of supervisors shall not pay any part of the costs of the
member contributions of new members as defined in subdivision (f) of
Section 7522.04.
(c) Until revised by subsequent actuarial studies, the member's
cost-of-living contribution rate shall be 39.57 percent of the member'
s normal contribution rate. These initial cost-of-living contribution
rates are shown in the following table, according to the member's
age at the time of entry into the system:
Age of entry Percentage
into system of contribution
16 ......................... 1.16
17 ......................... 1.16
18 ......................... 1.16
19 ......................... 1.16
20 ......................... 1.16
21 ......................... 1.16
22 ......................... 1.16
23 ......................... 1.16
24 ......................... 1.16
25 ......................... 1.17
26 ......................... 1.17
27 ......................... 1.18
28 ......................... 1.18
29 ......................... 1.19
30 ......................... 1.20
31 ......................... 1.20
32 ......................... 1.21
33 ......................... 1.22
34 ......................... 1.23
35 ......................... 1.24
36 ......................... 1.25
37 ......................... 1.26
38 ......................... 1.27
39 ......................... 1.28
40 ......................... 1.29
41 ......................... 1.30
42 ......................... 1.31
43 ......................... 1.32
44 ......................... 1.33
45 ......................... 1.34
46 ......................... 1.36
47 ......................... 1.37
48 ......................... 1.38
49 ......................... 1.40
50 ......................... 1.41
51 ......................... 1.43
52 ......................... 1.44
53 ......................... 1.46
54 and over ................ 1.47
SEC. 49. Section 31874.5 of the Government Code is amended to
read:
31874.5. (a) Whenever the percentage of annual increase in the
cost of living as of January 1 of each year as shown by the Bureau of
Labor Statistics Consumer Price Index for All Urban Consumers
exceeds a full 3 percent of the existing cost-of-living increase
factor provided by any provision of this article, an additional 1
percent of the excess for each full 3 percent over the existing
increase factor shall be applied to the retirement allowances,
optional death allowances, or annual death allowances increased by
any provision of this article. The increases in allowances resulting
from the adoption of this section shall be used to offset any
accumulated carryover balances under existing cost-of-living
adjustments. The cost of implementing this section shall be prefunded
commencing with the adoption of this section by the board of
supervisors. The method of paying the cost of implementing this
section may be mutually agreed to in a memorandum of understanding
executed by the employer and employee representatives. The board of
retirement shall conduct the actuarial studies to determine those
costs.
(b) This section shall not be operative in any county until it is
adopted by a majority vote of the board of supervisors.
(c) Notwithstanding subdivision (a), a memorandum of understanding
regarding the application of the contributions of new members, as
defined in subdivision (f) of Section 7522.04, towards paying the
cost of the additional cost-of-living adjustment shall not conflict
with the requirements of Section 7522.30 or as may be agreed to in
accordance with Sections 7522.30 and 31631.
SEC. 50. Section 31899 of the Government Code is amended to read:
31899. (a) The purpose of this chapter is to ensure the federal
tax-exempt status of the county employees' retirement systems, to
preserve the deferred treatment of federal income tax on public
employer contributions to public employee pensions, and to ensure
that members are provided with retirement and other related benefits
that are commensurate, to the extent deemed reasonable, with the
services rendered without violating the intent and purposes of
Section 415 of the Internal Revenue Code.
(b) To achieve this purpose, this chapter incorporates certain
pension payment limitations and elects the "grandfather" option in
Section 415(b)(10) of the Internal Revenue Code. Also, this chapter
provides for certain replacement benefits.
(c) On or after January 1, 2013, the application of this chapter
is limited as specified in Section 7522.43.
