Bill Text: CA AB1878 | 2015-2016 | Regular Session | Enrolled

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Bill Title: Public Employees' Retirement System: state or school members: postretirement death benefit.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Vetoed) 2016-09-26 - Vetoed by Governor. [AB1878 Detail]

Download: California-2015-AB1878-Enrolled.html

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BILL NUMBER: AB 1878	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 18, 2016
	PASSED THE ASSEMBLY  JUNE 2, 2016
	AMENDED IN ASSEMBLY  MAY 31, 2016
	AMENDED IN ASSEMBLY  MARCH 28, 2016

INTRODUCED BY   Assembly Member Jones-Sawyer

                        FEBRUARY 10, 2016

   An act to amend Section 21623 of the Government Code, relating to
public employees' retirement, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1878, Jones-Sawyer. Public Employees' Retirement System: state
or school members: postretirement death benefit.
   The Public Employees' Retirement Law requires that, upon the death
of any state or school member after retirement and while receiving a
retirement allowance, the sum of $2,000 be paid to the member's
designated beneficiary, as specified. Existing law provides that the
additional employer contributions required to fund this benefit be
computed as a level percentage of member compensation, and these are
deposited in the Public Employees' Retirement Fund, a continuously
appropriated fund.
   This bill would authorize the Board of Administration of the
Public Employees' Retirement System, beginning on or after January 1,
2017, to adjust the death benefit amount following each actuarial
valuation to reflect changes in the All Urban California Consumer
Price Index, as specified.
    By authorizing the board to increase contributions deposited in
the Public Employees' Retirement Fund, this bill would make an
appropriation.
   Appropriation: yes.


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

  SECTION 1.  Section 21623 of the Government Code is amended to
read:
   21623.  (a) In lieu of benefits provided by Section 21620 or
21622, upon the death of any retired state or school member, after
retirement and while receiving a retirement allowance from this
system, there shall be paid to the beneficiary whom he or she shall
nominate by written designation duly executed and filed with the
board, the sum of two thousand dollars ($2,000), to be provided from
contributions by the employer.
   (b) Beginning on or after January 1, 2017, the Board of
Administration of the Public Employees' Retirement System may adjust
the death benefit amount following each actuarial valuation to
reflect changes in the All Urban California Consumer Price Index and
adopt as a plan amendment any adjusted amount.
   (c) For the purposes of this section, all contributions,
liabilities, actuarial interest rates, and other valuation factors
shall be determined on the basis of actuarial assumptions and methods
that, in the aggregate, are reasonable and that, in combination,
offer the actuary's best estimate of anticipated experience under
this system.
   (d) The additional employer contributions required under this
section shall be computed as a level percentage of member
compensation.
   (e) This section shall apply to a school employer and a retired
school member whose death after retirement occurs on or after January
1, 2001. This section shall not apply to any contracting agency or
local member, except those contracting agencies that are school
employers and those school districts or community college districts
as defined in subdivision (i) of Section 20057.