Bill Text: CA AB1311 | 2017-2018 | Regular Session | Introduced
Bill Title: Public Employees’ Retirement System: board.
Sponsorship: Partisan Bill (Republican 1)
Status: (Failed) 2018-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1311 Detail]
Download: California-2017-AB1311-Introduced.html
CALIFORNIA LEGISLATURE—
2017–2018 REGULAR SESSION
| Assembly Bill | No. 1311 |
| Introduced by Assembly Member Travis Allen |
February 17, 2017 |
An act to amend Sections 20090, 20092, and 20096 of, and to add Section 20093.5 to, the Government Code, relating to public employees’ retirement.
LEGISLATIVE COUNSEL'S DIGEST
AB 1311, as introduced, Travis Allen.
Public Employees’ Retirement System: board.
The Public Employees’ Retirement Law (PERL) establishes the Public Employees’ Retirement System (PERS), which provides a defined benefit to members of the system, based on final compensation, credited service, and age at retirement, subject to certain variations. Existing law creates the Board of Administration of PERS for the purpose of governing the system and prescribes the composition of the board. Existing law requires that one member of the board be a member of the public chosen jointly by the Speaker of the Assembly and the Senate Committee on Rules. Existing law further requires that an official of a life insurer be appointed to the board by the Governor.
The California Constitution prohibits changing the composition of the retirement board of certain public pension systems, including the numbers, terms, and method of selection and removal
of members, unless the change is ratified by a majority vote of the electors in the jurisdiction in which the participants of the pension system are or were employed.
This bill would revise the composition of the board. The bill would add to the board 2 persons, appointed at the pleasure of the Governor, who represent the public, have financial expertise, and are not interested in the system, as specified. The bill would replace the official of a life insurer, whom the Governor is currently authorized to appoint, with a gubernatorial appointee who has expertise in health insurance and is not interested in the system. The bill also would require the board member representing the public, appointed by the Speaker of the Assembly and Senate Committee on Rules, to have financial expertise and not be interested in the system.
Under PERL, members of the board serve without compensation but are entitled to reimbursement for actual
and necessary expenses incurred through service on the board. Existing law also requires each agency that employs an elected member of the board to be reimbursed by the retirement fund in an amount equal to the salary and benefits paid to the elected member by the employing agency for the percentage of the elected board member’s regular work schedule during which the elected board member is on leave from the employing agency to attend meetings or activities of the board, or otherwise carrying out board activities.
This bill would prohibit the system from providing members of the board with payments, reimbursements, or benefits for travel in excess of $10,000 per year. The bill also would require a summary of all payments, reimbursements, or benefits for travel of board members provided to be compiled and provided to the full board semiannually, and also to be posted on the board’s Internet Web site. Additionally, the bill would prohibit any reimbursement to an
agency that employs an elected member of the board from exceeding 35% of the annual salary and benefits paid to the elected board member by the employing agency.
Existing law requires the board to arrange for ballots to be distributed to each active and retired member of the system before each election, and to provide for the return of the voted ballots to the board without cost to the member.
This bill would require the election procedures developed by the board to include a process for candidates to provide campaign materials to the system, for mailing by the system to the members eligible to vote for the candidate. The bill would require the candidate to pay the actual expenses incurred by the system to mail the campaign materials and would prohibit the system from releasing contact information for members directly to a candidate.
The bill would make the operation of its
provisions that change the composition of the PERS board contingent on voter approval of an unspecified Assembly Constitutional Amendment by voters at the June 5, 2018, statewide primary election.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 20090 of the Government Code is amended to read:20090.
The Board of Administration of the Public Employees’ Retirement System is continued in existence. It consists of:(a) One member of the State Personnel Board, selected by and serving at the pleasure of the State Personnel Board.
(b) The Director of Human Resources.
(c) The Controller.
(d) The Treasurer.
(e) An official of a life insurer and an elected official of a contracting agency, Two
persons, appointed by the Governor.
Governor, one of whom has expertise in health insurance and is not interested in a public pension system, as described in subdivision (i), and one of whom is an elected official of a contracting agency.
(f) Two persons, appointed by, and to serve at the pleasure of the Governor, who represent the public, have financial expertise, and are not interested in a public pension or retirement system, as described in subdivision (i).
(f)
(g) One person representing the public, appointed jointly by the Speaker of the Assembly and the Senate Committee on Rules. Rules, who has financial expertise and is not interested in a public pension or retirement system, as described in subdivision (i).
(g)
(h) Six members elected under the supervision of the board as follows:
(1) Two members elected by the members of this system from the membership thereof.
(2) A member elected by the active state members of this system from the state membership thereof.
(3) A member elected by and from the active local members of this system who are employees of a school district or a county superintendent of schools.
(4) A member elected by and from the active local members of this system other than those who are employees of a school district or a county superintendent of schools.
(5) A member elected by and from the retired members of this system.
(i) For purposes of this section, a person is interested in a public pension or retirement system if the person or any member of the person’s immediate family (1) is a member of the system, (2) is eligible to receive or is receiving pension benefits or retirement benefits from the system, (3) is a member of, or affiliated with, any employee organization that represents employees who are eligible to receive or are receiving pension or retirement benefits from the system, or (4) has any material financial interest in an entity that contracts with the system.
SEC. 2.
Section 20092 of the Government Code is amended to read:20092.
(a) Each employing agency that employs an elected member of the board shall be reimbursed by the retirement fund in an amount equal to the salary and benefits paid to the elected board member by the employing agency for the percentage of the elected board member’s regular work schedule during which the elected board member is on leave from the employing agency to attend meetings or activities of the board, or meetings of committees or subcommittees of the board, or when serving as president or vice president of the board or chair or vice chair of a committee or subcommittee of the board, or when carrying out other powers or duties as may be approved by the board, or to otherwise fulfill his or her responsibilities to the system.(b) The reimbursement authorized by subdivision (a) shall not exceed 35 percent of the annual salary and benefits paid to the elected board member by the employing agency.
SEC. 3.
Section 20093.5 is added to the Government Code, to read:20093.5.
(a) The system shall not provide members of the board with payments, reimbursements, or benefits for travel in excess of ten thousand dollars ($10,000) per year.(b) A summary of all payments, reimbursements, or benefits for travel provided to members of the board shall be compiled and provided to the full board semiannually. The summary shall itemize the source of funding for the travel and describe the purpose of the travel, and shall be posted on the board’s Internet Web site.
SEC. 4.
Section 20096 of the Government Code is amended to read:20096.
(a) The board shall cause ballots to be distributed to each active and retired member of the system in advance of each election, and shall provide for the return of the voted ballots to the board without cost to the member, and shall develop election procedures. The results shall be certified by the Secretary of State. The board may require all persons who perform election duties to certify, under penalty of perjury, that they properly performed those duties.(b) The election procedures developed by the board shall include a process to
allow candidates seeking election to the board to provide campaign materials to the system, for mailing by the system to the members eligible to vote for the candidate. The candidate shall pay the actual expenses incurred by the system to mail the campaign materials. The system shall not release contact information for members directly to a candidate, except as otherwise provided.
