Bill Text: CA AB1291 | 2015-2016 | Regular Session | Chaptered
Bill Title: The County Employees Retirement Law of 1937.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Passed) 2015-08-17 - Chaptered by Secretary of State - Chapter 223, Statutes of 2015. [AB1291 Detail]
Download: California-2015-AB1291-Chaptered.html
BILL NUMBER: AB 1291 CHAPTERED
BILL TEXT
CHAPTER 223
FILED WITH SECRETARY OF STATE AUGUST 17, 2015
APPROVED BY GOVERNOR AUGUST 17, 2015
PASSED THE SENATE JULY 6, 2015
PASSED THE ASSEMBLY JULY 9, 2015
AMENDED IN SENATE MAY 27, 2015
INTRODUCED BY Assembly Member Williams
FEBRUARY 27, 2015
An act to amend Sections 31468, 31557.3, and 31580.2 of, and to
add Section 31522.10 to, the Government Code, relating to retirement.
LEGISLATIVE COUNSEL'S DIGEST
AB 1291, Williams. The County Employees Retirement Law of 1937.
Existing law, the County Employees Retirement Law of 1937,
authorizes counties to establish retirement systems, as specified, in
order to provide pension benefits to county, city, and district
employees. Existing law defines a district for these purposes and
includes specified county retirement systems within the definition.
This bill would include the retirement system established under
these provisions in the County of Ventura within the definition of
district.
The County Employees Retirement Law of 1937 also authorizes the
board of retirement, in a county in which the board has appointed
administrative, technical, and clerical staff personnel, to also
appoint other administrators, managers, and legal counsel, as
specified. These appointees are not classified as county employees
and are therefor not subject to the civil service system, but are
employees of the retirement system subject to the terms of employment
determined by the board of retirement.
This bill would authorize the board of retirement of Ventura
County to appoint a retirement administrator, chief financial
officer, chief operations officer, chief investment officer, and
general counsel. The bill would require these appointees to be
employees of the retirement system, and not of the county, and
subject to terms and conditions of employment established by the
board of retirement. The bill would provide that the compensation of
these appointees is an expense of the administration of the
retirement system. The bill would grant the board of retirement and
the board of supervisors authority to enter into agreements necessary
to implement its provisions and would except the retirement system
from specified requirements relating to retirement administrators.
The bill would provide that these provisions apply to the Ventura
County retirement system only upon adoption of a specified resolution
by the board of retirement. The bill would make conforming changes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 31468 of the Government Code is amended to
read:
31468. (a) "District" means a district, formed under the laws of
the state, located wholly or partially within the county other than a
school district.
(b) "District" also includes any institution operated by two or
more counties, in one of which there has been adopted an ordinance
placing this chapter in operation.
(c) "District" also includes any organization or association
authorized by Chapter 26 of the Statutes of 1935, as amended by
Chapter 30 of the Statutes of 1941, or by Section 50024, which
organization or association is maintained and supported entirely from
funds derived from counties, and the board of any retirement system
is authorized to receive the officers and employees of that
organization or association into the retirement system managed by the
board.
(d) "District" also includes, but is not limited to, any sanitary
district formed under Part 1 (commencing with Section 6400) of
Division 6 of the Health and Safety Code.
(e) "District" also includes any city, public authority, public
agency, and any other political subdivision or public corporation
formed or created under the constitution or laws of this state and
located or having jurisdiction wholly or partially within the county.
(f) "District" also includes any nonprofit corporation or
association conducting an agricultural fair for the county pursuant
to a contract between the corporation or association and the board of
supervisors under the authority of Section 25905.
(g) "District" also includes the Regents of the University of
California, but with respect only to employees who were employees of
a county in a county hospital, who became university employees
pursuant to an agreement for transfer to the regents of a county
hospital or of the obligation to provide professional medical
services at a county hospital, and who under that agreement had the
right and did elect to continue membership in the county's retirement
system established under this chapter.
(h) "District" also includes the South Coast Air Quality
Management District, a new public agency created on February 1, 1977,
pursuant to Chapter 5.5 (commencing with Section 40400) of Part 3 of
Division 26 of the Health and Safety Code.
(1) Employees of the South Coast Air Quality Management District
shall be deemed to be employees of a new public agency occupying new
positions on February 1, 1977. On that date, those new positions are
deemed not to have been covered by any retirement system.
(2) No retirement system coverage may be effected for an employee
of the South Coast Air Quality Management District who commenced
employment with the district during the period commencing on February
1, 1977, and ending on December 31, 1978, unless and until the
employee shall have elected whether to become a member of the
retirement association established in accordance with this chapter
for employees of Los Angeles County or the retirement association
established in accordance with this chapter for employees of San
Bernardino County. The election shall occur before January 1, 1980.
Any employee who fails to make the election provided for herein shall
be deemed to have elected to become a member of the retirement
association established in accordance with this chapter for the
County of Los Angeles.
(3) The South Coast Air Quality Management District shall make
application to the retirement associations established in accordance
with this chapter for employees of Los Angeles County and San
Bernardino County for coverage of employees of the South Coast Air
Quality Management District.
(4) An employee of the South Coast Air Quality Management District
who commenced employment with the district during the period
commencing on February 1, 1977, and ending on December 31, 1978, and
who has not terminated employment before January 1, 1980, shall be
covered by the retirement association elected by the employee
pursuant to paragraph (2). That coverage shall be effected no later
than the first day of the first month following the date of the
election provided for in paragraph (2).
(5) Each electing employee shall receive credit for all service
with the South Coast Air Quality Management District. However, the
elected retirement association may require, as a prerequisite to
granting that credit, the payment of an appropriate sum of money or
the transfer of funds from another retirement association in an
amount determined by an enrolled actuary and approved by the elected
retirement association's board. The amount to be paid shall include
all administrative and actuarial costs of making that determination.
The amount to be paid shall be shared by the South Coast Air Quality
Management District and the employee. The share to be paid by the
employee shall be determined by good faith bargaining between the
district and the recognized employee organization, but in no event
shall the employee be required to contribute more than 25 percent of
the total amount required to be paid. The elected retirement
association's board may not grant that credit for that prior service
unless the request for that credit is made to, and the required
payment deposited with, the elected retirement association's board no
earlier than January 1, 1980, and no later than June 30, 1980. The
foregoing shall have no effect on any employee's rights to reciprocal
benefits under Article 15 (commencing with Section 31830).
(6) An employee of the South Coast Air Quality Management District
who commenced employment with the district after December 31, 1978,
shall be covered by the retirement association established in
accordance with this chapter for employees of San Bernardino County.
That coverage shall be effected as of the first day of the first
month following the employee's commencement date.
(7) Notwithstanding paragraphs (2) and (4) above, employees of the
South Coast Air Quality Management District who were employed
between February 1, 1977, and December 31, 1978, and who terminate
their employment between February 1, 1977, and January 1, 1980, shall
be deemed to be members of the retirement association established in
accordance with this chapter for the employees of Los Angeles County
commencing on the date of their employment with the South Coast Air
Quality Management District.
(i) "District" also includes any nonprofit corporation that
operates one or more museums within a county of the 15th class, as
described by Sections 28020 and 28036 of the Government Code, as
amended by Chapter 1204 of the Statutes of 1971, pursuant to a
contract between the corporation and the board of supervisors of the
county, and that has entered into an agreement with the board and the
county setting forth the terms and conditions of the corporation's
inclusion in the county's retirement system.
(j) "District" also includes any economic development association
funded in whole or in part by a county of the 15th class, as
described by Sections 28020 and 28036 of the Government Code, as
amended by Chapter 1204 of the Statutes of 1971, and that has entered
into an agreement with the board of supervisors and the county
setting forth the terms and conditions of the association's inclusion
in the county's retirement system.
(k) "District" also includes any special commission established in
the Counties of Tulare and San Joaquin as described by Section
14087.31 of the Welfare and Institutions Code, pursuant to a contract
between the special commission and the county setting forth the
terms and conditions of the special commission's inclusion in the
county's retirement system with the approval of the board of
supervisors and the board of retirement.
( l ) (1) "District" also includes the retirement
system established under this chapter in Orange County.
(2) "District" also includes the retirement system established
under this chapter in San Bernardino County at such time as the board
of retirement, by resolution, makes this section applicable in that
county.
(3) "District" also includes the retirement system established
under this chapter in Contra Costa County.
(4) "District" also includes the retirement system established
under this chapter in Ventura County.
(m) "District" also includes the Kern County Hospital Authority, a
public agency that is a local unit of government established
pursuant to Chapter 5.5 (commencing with Section 101852) of Part 4 of
Division 101 of the Health and Safety Code.
SEC. 2. Section 31522.10 is added to the Government Code, to read:
31522.10. (a) In a county in which the board of retirement has
appointed personnel pursuant to Section 31522.1, the board of
retirement may appoint a retirement administrator, chief financial
officer, chief operations officer, chief investment officer, and
general counsel.
(b) Notwithstanding any other law, the personnel appointed
pursuant to this section shall not be county employees but shall be
employees of the retirement system, subject to terms and conditions
of employment established by the board of retirement. Except as
specifically provided in this subdivision, all other personnel shall
be county employees for purposes of the county's employee relations
resolution, or equivalent local rules, and the terms and conditions
of employment established by the board of supervisors for county
employees, including those set forth in a memorandum of
understanding.
(c) Except as otherwise provided by Sections 31529.9 and 31596.1,
the compensation of personnel appointed pursuant to this section
shall be an expense of administration of the retirement system,
pursuant to Section 31580.2.
(d) The board of retirement and board of supervisors may enter
into any agreements as may be necessary and appropriate to carry out
the provisions of this section.
(e) Section 31522.2 is not applicable to a retirement system that
elects to appoint personnel pursuant to this section.
(f) This section shall apply only to the retirement system
established under this chapter in Ventura County at such time as the
board of retirement, by resolution, makes this section applicable in
that county.
SEC. 3. Section 31557.3 of the Government Code is amended to read:
31557.3. On the date a district, as defined in subdivision (
l ) of Section 31468, is included in the retirement system, any
personnel appointed pursuant to Sections 31522.5, 31522.9, 31522.10,
and 31529.9 who had previously been in county service shall continue
to be members of the system without interruption in service or loss
of credit. Thereafter, each person entering employment with the
district shall become a member of the system on the first day of the
calendar month following his or her entrance into service.
SEC. 4. Section 31580.2 of the Government Code is amended to read:
31580.2. (a) In counties in which the board of retirement, or the
board of retirement and the board of investment, have appointed
personnel pursuant to Section 31522.1, 31522.5, 31522.7, 31522.9, or
31522.10, the respective board or boards shall annually adopt a
budget covering the entire expense of administration of the
retirement system which expense shall be charged against the earnings
of the retirement fund. The expense incurred in any year may not
exceed the greater of either of the following:
(1) Twenty-one hundredths of 1 percent of the accrued actuarial
liability of the retirement system.
(2) Two million dollars ($2,000,000), as adjusted annually by the
amount of the annual cost-of-living adjustment computed in accordance
with Article 16.5 (commencing with Section 31870).
(b) Expenditures for computer software, computer hardware, and
computer technology consulting services in support of these computer
products shall not be considered a cost of administration of the
retirement system for purposes of this section.
