Bill Text: CA SB277 | 2013-2014 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: State Peace Officers' and Firefighters' Defined

Status: (Passed) 2013-10-11 - Chaptered by Secretary of State. Chapter 755, Statutes of 2013. [SB277 Detail]

Download: California-2013-SB277-Introduced.html
BILL NUMBER: SB 277	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Beall

                        FEBRUARY 14, 2013

   An act to add Section 22960.4 to, and to amend Sections 22960.99,
22970.58, and 22970.855 of, the Government Code, relating to public
employees' retirement, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 277, as introduced, Beall. State Peace Officers' and
Firefighters' Defined Contribution Plan.
   Existing law establishes the State Peace Officers' and
Firefighters' Defined Contribution Plan for state peace
officer/firefighter members in State Bargaining Unit 6, the
California Correctional Peace Officers Association, and others as
specified. The moneys in the State Peace Officers' and Firefighters'
Defined Contribution Plan Fund are continuously appropriated.
Existing law entitles a participant in the plan to a lump-sum
distribution of the balance of his or her account, or installment
payments if he or she is entitled to $5,000 or more, upon separation
from all service for the employer for any reason other than death,
disability, or retirement.
   Existing law requires the Board of Administration of the Public
Employees' Retirement System to administer the Supplemental
Contributions Program and requires contributions by eligible
employees, as defined, participating in the program to be deposited
in the Supplemental Contributions Program Fund, a continuously
appropriated fund.
   This bill would require that contributions to the State Peace
Officers' and Firefighters' Defined Contribution Plan cease, prohibit
new members from participating in the plan, and would require that
the plan be terminated as prescribed. The bill would require all
moneys in the State Peace Officers' and Firefighters' Defined
Contribution Plan Fund to be distributed, as specified, including
requiring that, if not elected otherwise, amounts that become payable
from the fund be rolled over under existing federal law to the
Supplemental Contributions Program. The bill would provide for
rollover contributions to separate rollover contribution accounts in
the Supplemental Contributions Program, as specified, and would
provide for the distribution of amounts held in the participant's
account. By changing the circumstances under which moneys in the
State Peace Officers' and Firefighters' Defined Contribution Fund
would be distributed, and by providing for an increase in
contributions to the Supplemental Contributions Program, this bill
would make an appropriation.
   Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 22960.4 is added to the Government Code, to
read:
   22960.4.  (a) The Legislature finds and declares that an agreement
between the exclusive representative of state peace officer and
firefighter members in Bargaining Unit 6 and the employer has
eliminated the employer contributions to the plan provided in Section
22960.60.
   (b) The following shall occur:
   (1) All contributions to the plan shall cease.
   (2) New participants shall be prohibited from participating in the
plan.
   (3) The plan shall be terminated on the later of January 1, 2014,
or upon obtaining appropriate approvals from the Internal Revenue
Service, including a favorable determination letter on plan
termination from the Internal Revenue Service.
   (4) Subject to paragraph (3), all moneys in the fund shall be
distributed in accordance with this part and federal law. If not
elected otherwise, amounts that become payable from the fund under
this section shall be rolled over under Section 401(a)(31) of Title
26 of the United States Code to the Supplemental Contributions
Program established in accordance with Section 22970.
  SEC. 2.  Section 22960.99 of the Government Code is amended to
read:
   22960.99.  (a) The plan's obligations to a participant,
beneficiary, or nonparticipant spouse who has applied for a lump-sum
benefit cease upon distribution of the lump-sum benefit.
   (1) Deposit in the United States mail of a warrant drawn in favor
of the participant, beneficiary, or nonparticipant spouse and
addressed to the latest address on file for that person constitutes
distribution of the benefit.
   (2) Deposit in the United States mail of a notice that the
requested electronic funds transfer has been made as directed by the
participant, beneficiary, or nonparticipant spouse constitutes
distribution of the benefit.
   (3) If the participant, beneficiary, or nonparticipant spouse has
elected on a form prescribed by the board to transfer all or a
specific portion of the account that is eligible for a direct
trustee-to-trustee transfer under Section 401(a)(31) of Title 26 of
the United States Code, deposit in the United States mail of a notice
that the requested transfer has been made constitutes distribution
of the benefit.
   (b) The plan's obligations to a participant, beneficiary, or
nonparticipant spouse who elected to receive a benefit in the form of
installment payments or an annuity cease upon distribution of the
final payment.
   (1) Deposit in the United States mail of a warrant drawn in favor
of the participant, beneficiary, or nonparticipant spouse and
addressed to the latest address on file for that person constitutes
distribution of the benefit.
   (2) Deposit in the United States mail of a notice that the
requested electronic funds transfer has been made as directed by the
participant, beneficiary, or nonparticipant spouse constitutes
distribution of the benefit.
   (c) Distribution under paragraph (1), (2), or (3) of subdivision
(a) or paragraph (1) or (2) of subdivision (b) pursuant to the board'
s determination in good faith of the existence, identity, or other
facts relating to entitlement of persons constitutes a complete
discharge and release of the board, system, and plan from liability
for payments. 
   (d) Distribution under paragraph (4) of subdivision (b) of Section
22960.4 constitutes a complete discharge and release of the board,
system, and plan from liability for payments, and the board and
system shall not be treated as fiduciaries with respect to a transfer
of funds from the plan to the Supplemental Contributions Program in
accordance with Section 22970. 
  SEC. 3.  Section 22970.58 of the Government Code is amended to
read:
   22970.58.  The board may amend the plan to permit a participant to
transfer funds from an eligible retirement plan into this plan to
the extent that the transfers are allowed under applicable federal
and state laws, and pursuant to the terms and conditions established
by the board.  The plan may accept rollover contributions made in
accordance with paragraph (4) of subdivision (b) of Section 22960.4,
if the board amends the plan to establish a separate rollover
contribution account for each participant or beneficiary who makes
such rollover contributions for the purpose of holding those
contributions. 
  SEC. 4.  Section 22970.855 of the Government Code is amended to
read:
   22970.855.  The board may amend the plan to permit a participant
to withdraw some or all of his or her after-tax contributions without
requiring the participant to terminate from the plan to the extent
that this in-service distribution is allowed under applicable federal
and state laws, and pursuant to the terms and conditions established
by the board.  A participant may apply for a distribution of
amounts held in the participant's separate rollover contribution
account established pursuant to Section 22970.58 at any time before
that participant's termination of employment, to the extent that an
in-service distribution is allowed under applicable federal and state
law, and pursuant to the terms and conditions established by the
board.                         
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