Bill Text: CA AB1971 | 2021-2022 | Regular Session | Amended

California Assembly Bill 1971 (Prior Session Legislation)

CA State Legislature page for AB1971

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: County Employees Retirement Law of 1937.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2022-09-25 - Chaptered by Secretary of State - Chapter 524, Statutes of 2022. [AB1971 Detail]

Download: California-2021-AB1971-Amended.html

Amended IN Assembly April 18, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill

No. 1971

Introduced by Assembly Member Cooper

February 10, 2022

An act to amend Sections ~~31525,~~ 31646, 31725.7, ~~31730, 31760, and 31838.5~~ and 31760 of, and to add Sections 31646.2 and 31680.16 to, the Government Code, relating to public employees’ retirement.

LEGISLATIVE COUNSEL'S DIGEST

AB 1971, as amended, Cooper. County Employees Retirement Law of 1937.

The County Employees Retirement Law of 1937 (CERL) authorizes counties to establish retirement systems pursuant to its provisions in order to provide pension and other benefits to county and district employees. CERL generally vests responsibility for management of a retirement system created pursuant to its provisions in a board of retirement (board). ~~CERL authorizes a board to make regulations that are not inconsistent with its provisions and these regulations become effective when approved by the applicable board of supervisors.~~

This bill would specify other provisions with which the above-described regulations are required to be consistent and would remove the requirement of approval by the board of supervisors as a necessary condition for them to become effective.

CERL authorizes a member who returns to active service following an uncompensated leave of absence on account of illness or parental leave to receive service credit for the period of the absence upon the payment of the contributions, as specified. CERL prescribes limits on these benefits and processes for making contributions. CERL authorizes the provision of service credit to members in other specified instances while generally providing that a person is not entitled to service credit for time the person was not in service.

This bill would allow a member who returns to active service following an uncompensated leave of absence because of the serious illness of a family member when the absence is eligible for coverage, as specified, to receive service credit for the period of the absence, upon the payment of the member and employer contributions that would have been paid during that period, together with the interest that would have been earned. The bill would prescribe requirements for, and limits on, this benefit and would condition its operation on approval by resolution, as specified, by the county board of supervisors.

This bill would authorize the board to grant members who are subject to a temporary mandatory furlough the same service credit and compensation earnable or pensionable compensation to which the members would have been entitled in the absence of the temporary mandatory furlough. The bill would authorize the board to condition this grant on specified factors.

CERL generally prohibits a member retired from service from being paid for service rendered to a county or district after retirement, subject to certain exceptions, and prescribes requirements for reinstatement into a retirement system upon reemployment. CERL and the California Public Employees’ Pension Reform Act of 2013 authorize reemployment of, and service by, retired members in certain capacities after retirement without reinstatement into the applicable retirement system, and prescribe limits on this service.

This bill would authorize a person who is retired ~~under CERL~~ and receiving a retirement benefit from a county system to serve without reinstatement for service on a part-time ~~state, county, city, district, or other political subdivision~~ board or ~~commission.~~ commission operating under a participating agency of the same county retirement system. The bill would prohibit a retired person ~~serving~~ acting in this capacity from acquiring benefits, service credit, or retirement rights with respect to the service and would prescribe limits on the ~~hours of service and the associated~~ salary or stipend ~~for the part-time service.~~ for service with the board or commission.

CERL regulates disability retirements and authorizes a retirement board to grant a service retirement allowance pending the determination of the entitlement to disability retirement. If a member is found eligible for disability retirement, CERL requires that appropriate adjustments be made in the member’s retirement allowance retroactive to the effective date of their disability retirement. CERL prohibits this authorization from being construed to authorize a member to receive more than one type of retirement allowance for the same period of time or to entitle a beneficiary to receive benefits which the beneficiary would not otherwise have been entitled to receive.

This bill would apply specified provisions in this regard to a member retired for service who subsequently files an application for disability retirement and, if the member is found to be eligible for disability retirement, would require appropriate adjustments to be made in the retirement allowance retroactive to the effective date of the disability retirement. The bill would also require that, if a member with a disability retirement is subsequently determined not to be incapacitated, and the person’s employer does not offer to reinstatement, the person’s retirement allowance is to be reclassified to a service retirement in the same amount and subject to any applicable future cost of living adjustments. The bill would require, in this regard, that the optional or unmodified type of allowance selected by at the time of retirement for disability be binding as to the service retirement.

CERL authorizes a member or a retired member, until the first payment of a retirement allowance is made, to elect to have the actuarial equivalent of a retirement allowance, as of the date of retirement, applied to a lesser retirement allowance payable throughout life in accordance with specified optional settlements.

This bill would authorize a member retired for service who is subsequently granted a disability retirement to change the type of optional or unmodified allowance that they elected at the time the service retirement was granted, as specified.

CERL authorizes the granting of reciprocal benefits to members with service in other retirement systems that have entered into agreements to provide such benefits, provided that the member satisfies specified requirements. CERL prohibits these provisions from being construed to authorize a member credited with service in multiple entities who is eligible for a disability allowance to receive an amount that results in a disability allowance greater than the amount the member would have received had all the member’s service been with only one entity. CERL requires, in this connection, that each entity calculate its respective obligations based upon the member’s service with that entity and adjust its payment on a pro rata basis.
This bill would require, with regard to disability allowances subject to reciprocity to be adjusted on a pro rata basis, as described above, if one entity does not reduce the amount it pays a member, then another entity is to reduce the allowance it pays the member by as much as necessary to ensure that the member does not receive a disability allowance greater than the amount the member would have received had all the member’s service been with only one entity.

Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.Section 31525 of the Government Code is amended to read:
31525.
The board may make regulations not inconsistent with this chapter, the California Public Employees’ Pension Reform Act of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of Division 7 of Title 1), and any other provisions of law applicable to county retirement systems.

SEC. 2.SECTION 1.

Section 31646 of the Government Code is amended to read:

31646.

(a) A member who returns to active service following an uncompensated leave of absence on account of the member’s illness may receive service credit for the period of the absence upon the payment of the contributions that the member would have paid during that period, together with the interest that the contributions would have earned had they been on deposit, if the member was not absent. The contributions may be paid in a lump sum or may be paid on a monthly basis for a period of not more than the length of the period for which service credit is claimed. Credit shall not be received for any period of such an absence in excess of 12 consecutive months.

(b) (1) A member who returns to active service following an uncompensated leave of absence on account of parental leave may receive service credit for the period of the absence upon the payment of the contributions that the member and the employer would have paid during that period, together with the interest that the contributions would have earned had they been on deposit, if the member was not absent. For purposes of this subdivision, parental leave is defined as any time, up to one year, during which a member is granted an approved maternity or paternity leave and returns to employment at the end of the approved leave for a period of time at least equal to that leave. The contributions may be paid in a lump sum or may be paid on a monthly basis for a period of not more than the length of the period for which service credit is claimed. Credit shall not be received for any period of such an absence in excess of 12 consecutive months.

(2) This subdivision shall not be operative until the board of supervisors, by resolution adopted by majority vote, makes the provisions applicable to that county and applies it to parental leave that commences after the adoption by the board of supervisors.

(c) (1) A member who returns to active service following an uncompensated leave of absence on account of the serious illness of a family member when the absence is eligible for coverage under the federal Family and Medical Leave Act of 1993 (29 U.S.C. Sec. 2601 et seq.) or the Moore-Brown-Roberti Family Rights Act, commonly referred to as the California Family Rights Act, as described in Section 12945, may receive service credit for the period of the absence upon the payment of the contributions that the member and the employer would have paid during that period, together with the interest that the contributions would have earned had the contributions been on deposit, if the member was not absent. For purposes of this subdivision, “leave of absence on account of illness of a family member” means any time, up to one year, during which a member is granted an approved leave to care for a seriously ill family member and returns to employment at the end of the approved leave for a period of time at least equal to that leave. The contributions required to receive the service credit may be paid in a lump sum or may be paid on a monthly basis for a period of not more than the length of the period for which service credit is claimed. Credit shall not be received for any period of such an absence in excess of 12 consecutive months.

(2) This subdivision shall not be operative until the board of supervisors, by resolution adopted by majority vote, makes the provisions applicable to that county and applies it to leave that commences after the adoption by the board of ~~supervisors~~ supervisors.

SEC. 3.SEC. 2.

Section 31646.2 is added to the Government Code, to read:

31646.2.

(a) The board may grant a member who is subject to a temporary mandatory furlough the same service credit and compensation earnable or pensionable compensation to which the member would have been entitled in the absence of the temporary mandatory furlough. The board may condition this grant on the receipt of additional member or employer contributions, or both as applicable, that the board determines are necessary to fund any benefits granted under this section on an actuarially sound basis.

(b) For the purposes of this section, “temporary mandatory furlough” means the time during which a member is directed to be absent from work without pay for up to one quarter of the member’s normal working hours, provided that these reduced working hours shall not be in place for longer than two years.

SEC. 4.SEC. 3.

Section 31680.16 is added to the Government Code, to read:

31680.16.

A (a) This section shall apply to a retired person who is receiving a retirement benefit from a county retirement system and is appointed or elected to a board or commission operating under a participating agency of the same county retirement system.

(b) A person who is retired under this chapter may serve on a board or commission without reinstatement from retirement or loss or interruption of benefits under this chapter or the California Public Employees’ Pension Reform Act of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of Division 7 of Title 1), provided the ~~service~~ appointment or election is on to a part-time ~~state, county, city, district, or other political subdivision~~ board or commission. A retired person whose ~~employment~~ service without reinstatement is authorized by this subdivision shall not acquire benefits, service credit, or retirement rights with respect to the ~~employment. Part-time service authorized by this section is limited to less than 20 hours per week, and any salary or stipend for the part-time service shall~~ appointment or election. The authorization provided by this section is limited to an appointment or election to a part-time board or commission for which any salary or stipend for serving does not exceed sixty thousand dollars ($60,000) annually.

SEC. 5.SEC. 4.

Section 31725.7 of the Government Code is amended to read:

31725.7.

(a) Except as provided in subdivision (a), at any time after filing an application for disability retirement with the board, the member may, if eligible, apply for, and the board in its discretion may grant, a service retirement allowance pending the determination of their entitlement to disability retirement. If the member is found to be eligible for disability retirement, appropriate adjustments shall be made in their retirement allowance retroactive to the effective date of their disability retirement as provided in Section 31724.

(b) Notwithstanding subdivision (a), this section shall also apply to a member retired for service who subsequently files an application for disability retirement with the board. If the member retired for service is found to be eligible for disability retirement, appropriate adjustments shall be made in their retirement allowance retroactive to the effective date of their disability retirement, as provided in Section 31724.

(c) This section shall not be construed to authorize a member to receive more than one type of retirement allowance for the same period of time nor to entitle any beneficiary to receive benefits which the beneficiary would not otherwise have been entitled to receive under the type of retirement which the member is finally determined to have been entitled. In the event a member retired for service is found not to be entitled to disability retirement, they shall not be entitled to return to their job as provided in Section 31725.

(d) If the retired member should die before a final determination is made concerning entitlement to disability retirement, the rights of the beneficiary shall be as selected by the member at the time of retirement for service. The optional or unmodified type of allowance selected by the member at the time of retirement for service shall also be binding as to the type of allowance the member receives if the member is awarded a disability retirement.

(e) Notwithstanding subdivision (d), if the retired member should die before a final determination is made concerning entitlement to disability retirement, the rights of the beneficiary may be as selected by the member at the time of retirement for service, or as if the member had selected an unmodified allowance. The optional or unmodified type of allowance selected by the member at the time of retirement for service shall not be binding as to the type of allowance the member receives if the member is awarded a disability retirement. A change to the optional or unmodified type of allowance shall be made only at the time a member is awarded a disability retirement and the change shall be retroactive to the service retirement date and benefits previously paid shall be adjusted. If a change to the optional or unmodified type of allowance is not made, the benefit shall be adjusted to reflect the differences in retirement benefits previously received. This paragraph shall only apply to members who retire on or after January 1, 1999.

SEC. 6.Section 31730 of the Government Code is amended to read:
31730.
(a)If the board determines that the beneficiary is not incapacitated, and their employer offers to reinstate that beneficiary, their retirement allowance shall be canceled forthwith, and the beneficiary shall be reinstated in the county service pursuant to the regulations of the county or district for reemployment of personnel.
(b)If the board determines that the beneficiary is not incapacitated, and their employer does not offer to reinstate that beneficiary, notwithstanding any requirement of this chapter regarding eligibility therefor, the beneficiary’s retirement allowance shall be reclassified to a service retirement in the same amount and subject to any applicable future cost of living adjustments. The optional or unmodified type of allowance selected by the beneficiary at the time of retirement for disability shall be binding as to the service retirement.

SEC. 7.SEC. 5.

Section 31760 of the Government Code is amended to read:

31760.

(a) Except as provided in subdivisions (b) and (c), until the first payment of any retirement allowance is made, a member or retired member, in lieu of the retirement allowance for the member’s life alone, may elect to have the actuarial equivalent of their retirement allowance as of the date of retirement applied to a lesser retirement allowance payable throughout life in accordance with one of the optional settlements specified in this article.

(b) Notwithstanding subdivision (a), a member who applies for disability and is subsequently granted a service retirement pending a determination of entitlement to disability may change the type of optional or unmodified allowance that they elected at the time the service retirement was granted, subject to the provisions of Section 31725.7.

(c) Notwithstanding subdivision (a), a member retired for service who applies for, and is subsequently granted, a disability retirement may change the type of optional or unmodified allowance that was elected at the time the service retirement was granted, subject to the provisions of Section 31725.7.

SEC. 8.Section 31838.5 of the Government Code is amended to read:
31838.5.
No provision of this chapter shall be construed to authorize any member, credited with service in more than one entity and who is eligible for a disability allowance, whether service connected or nonservice connected to receive an amount from one county that, when combined with any amount from other counties or the Public Employees’ Retirement System, results in a disability allowance greater than the amount the member would have received had all the member’s service been with only one entity.
In cases of service-connected disability allowances only, the limitation on disability allowances provided for in this section shall apply to service-connected disability allowances payable to those who, after being employed with another county or an entity within the Public Employees’ Retirement System, become employed by a second public entity on or after January 1, 1984.
Each entity shall calculate its respective obligations based upon the member’s service with that entity and each shall adjust its payment on a pro rata basis. If, however, another entity does not reduce the amount it pays the member, an entity subject to this section shall reduce the allowance it pays the member by as much as necessary to ensure that the member does not receive a disability allowance greater than the amount the member would have received had all the member’s service been with only one entity.