Bill Text: CA AB2376 | 2015-2016 | Regular Session | Chaptered
Bill Title: County employees' retirement: Los Angeles County.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Passed) 2016-08-17 - Chaptered by Secretary of State - Chapter 134, Statutes of 2016. [AB2376 Detail]
Download: California-2015-AB2376-Chaptered.html
BILL NUMBER: AB 2376 CHAPTERED
BILL TEXT
CHAPTER 134
FILED WITH SECRETARY OF STATE AUGUST 17, 2016
APPROVED BY GOVERNOR AUGUST 17, 2016
PASSED THE SENATE JUNE 30, 2016
PASSED THE ASSEMBLY AUGUST 1, 2016
AMENDED IN SENATE JUNE 20, 2016
AMENDED IN ASSEMBLY MARCH 9, 2016
INTRODUCED BY Committee on Public Employees, Retirement, and Social
Security (Assembly Members Cooper (Chair), Bonta, Cooley, Gonzalez,
and O'Donnell)
FEBRUARY 18, 2016
An act to amend Sections 31494.2, 31494.5, and 31526 of, and to
add Sections 31495.7 and 31520.6 to, the Government Code, relating to
county employees' retirement.
LEGISLATIVE COUNSEL'S DIGEST
AB 2376, Committee on Public Employees, Retirement, and Social
Security. County employees' retirement: Los Angeles County.
The County Employees Retirement Law of 1937 (CERL) establishes
retirement plans, known as Retirement Plan D and Retirement Plan E,
that are applicable in the retirement system in Los Angeles County
and prescribes procedures for members to transfer between those
plans. CERL defines "Retirement Plan E" to mean the noncontributory
retirement plan established by specific provisions, and defines
"Retirement Plan D" to mean the contributory retirement plan
otherwise available to new members of the retirement system on the
transfer date.
This bill would revise the definition of Retirement Plan D to,
instead, refer to the contributory retirement plan otherwise
available to members of the system between June 1, 1979, and December
31, 2012, inclusive.
CERL provides for the retirement system in Los Angeles County
specific ages and pension allowances for normal and early retirement.
Under CERL, a member of a CERL retirement system who is eligible to
retire at 50 years of age pursuant to specified statute, or who is
required to retire because of age while a member of the Public
Employees' Retirement System (PERS), a CERL retirement system in
another county, the State Teachers' Retirement System (STRS), or a
retirement system of any other public agency of the state that has
established reciprocity with PERS subject to certain conditions, but
who cannot retire concurrently from PERS, a CERL retirement system in
another county, STRS, or a retirement system of any other public
agency of the state that has established reciprocity with PERS
subject to certain conditions, is entitled to have final compensation
and service determined under specific statutes as if the member had
retired concurrently under that other system (concurrent retirement
exception). Provisions of CERL specifically applicable to Los Angeles
County, among other things, apply reciprocal benefits, including the
concurrent retirement exception, to the retirement system in Los
Angeles County.
This bill would amend provisions of CERL specifically applicable
to Los Angeles County to provide that the concurrent retirement
exception applies to a member of the retirement system in Los Angeles
County eligible to retire at 55 years of age and would state that
the amendment is declaratory of existing law.
CERL sets forth the membership composition for boards of
retirement, as specified. Under that law, the retirement board in
specified counties is comprised of 9 members and an alternate member,
as specified. That law also authorizes specified counties to appoint
an alternate retired member to the office of the 8th member of the
board and authorizes the alternate retired member to vote as a member
of the board only in the event the 8th member is absent from a board
meeting for any cause.
This bill would additionally authorize the alternate retired
member to vote as a member of the board if the 8th member is present
and both the 2nd and 3rd, both the 2nd and 7th, or both the 3rd and
7th members are absent for any cause.
Under CERL, except as specified, the management of a retirement
system is vested in the board of retirement. CERL authorizes such a
board to make regulations not inconsistent with that law, and
requires that the regulations include specific provisions, including
provisions for the filing of a sworn statement by every person who is
or becomes a member, showing date of birth, nature and duration of
employment with the county, compensation received, and other
information as is required by the board.
This bill would authorize those regulations, in lieu of a sworn
statement, to provide for the submission by a member's employer to
the retirement association of the information otherwise required in a
sworn statement, in a form determined by the retirement association.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 31494.2 of the Government Code is amended to
read:
31494.2. (a) A general member whose benefits are governed by
Retirement Plan D may, during a period of active employment, elect to
change plan membership and become a member, prospectively, in
Retirement Plan E. The election shall be made upon written
application signed by the member and filed with the board, pursuant
to enrollment procedures and during an enrollment period established
by the board, which enrollment period shall not occur more frequently
than once every three years for that member. The change in plan
membership shall be effective as of the transfer date, as defined in
subdivision (d). Except as otherwise provided in this section, the
rights and obligations of a member who elects to change membership
under this section shall be governed by the terms of this article on
and after the transfer date. Prior to the transfer date, the rights
to retirement, survivors', or other benefits payable to a member and
his or her survivors or beneficiaries shall continue to be governed
by Retirement Plan D.
(b) Except as otherwise provided in this section, effective as of
the transfer date, a member who has transferred to Retirement Plan E
pursuant to this section and his or her survivors or beneficiaries
shall receive retirement, survivors', and other benefits that shall
consist of: (1) the benefits to which they are entitled under the
terms of Retirement Plan E, but based on the member's service
credited only under that plan, and payable at the time and in the
manner provided under Retirement Plan E, and (2) the benefits to
which they would have been entitled under the terms of Retirement
Plan D had the member remained a member of Retirement Plan D, but
based on the member's service credited only under that plan, and
payable at the time and in the manner provided under Retirement Plan
D. Except as otherwise provided in this section, the calculation of
the member's, survivors', or beneficiaries' benefits under each plan
shall be subject to that plan's respective, separate terms,
including, but not limited to, the definitions of "final compensation"
and provisions establishing cost-of-living adjustments, establishing
minimum retirement age and service requirements, and governing
integration with federal social security payments. Notwithstanding
the foregoing, the aggregate service credited under both retirement
plans shall be taken into account for the purpose of determining
eligibility for and vesting of benefits under each plan.
(c) Notwithstanding any other provision of Retirement Plan D or
Retirement Plan E:
(1) A member who has transferred to Retirement Plan E pursuant to
this section may not retire for disability and receive disability
retirement benefits under Retirement Plan D.
(2) If a member who has transferred to Retirement Plan E pursuant
to this section dies prior to retirement, that member's survivor or
beneficiary may not receive survivor or death benefits under
Retirement Plan D but shall receive a refund of the member's
contributions to Retirement Plan D together with all interest
credited thereto.
(d) As used in this section:
(1) "Period of active employment" means a period during which the
member is actively performing the duties of a full-time or part-time
employee position or is on any authorized paid leave of absence,
except a leave of absence during which the member is totally disabled
and is receiving, or is eligible to receive, disability benefits,
either during or after any elimination or qualifying period, under a
disability plan provided by the employer.
(2) "Retirement Plan D" means the contributory retirement plan
otherwise available to members of the system between June 1, 1979,
and December 31, 2012, inclusive.
(3) "Retirement Plan E" means the noncontributory retirement plan
established under this article.
(4) "Transfer date" means the first day of the first month that is
at least 30 days after the date that the application is filed with
the board to change plan membership under subdivision (a).
(e) This section shall only be applicable to Los Angeles County
and shall not become operative until the board of supervisors of that
county elects, by resolution adopted by a majority vote, to make
this section operative in the county.
SEC. 2. Section 31494.5 of the Government Code is amended to read:
31494.5. (a) A general member whose benefits are governed by
Retirement Plan E may, during a period of active employment, elect to
change plan membership and become a member, prospectively, in
Retirement Plan D. The election shall be made upon written
application signed by the member and filed with the board, pursuant
to enrollment procedures and during an enrollment period established
by the board, which enrollment period shall not occur more frequently
than once every three years for that member. The change in plan
membership shall be effective as of the transfer date, as defined in
subdivision (g). Except as otherwise provided in this section, the
rights and obligations of a member who elects to change membership
under this section shall be governed by the terms of Retirement Plan
D on and after the transfer date. Prior to the transfer date, the
rights to retirement, survivors', or other benefits payable to a
member and his or her survivors or beneficiaries shall continue to be
governed by Retirement Plan E.
(b) If a member has made the election to change plans under
subdivision (a), monthly contributions by the member and the employer
under the terms of Retirement Plan D shall commence as of the
transfer date. For the purposes of calculating the member's
contribution rate under Retirement Plan D, his or her entry age shall
be deemed to be his or her age at his or her birthday nearest the
transfer date; however, if the member exchanges service credit in
accordance with subdivision (c), with regard to contributions made
for periods after that exchange, his or her entry age shall be
adjusted and deemed to be the member's age at his or her birthday
nearest the date on which begins the most recent period of unbroken
service credited under Retirement Plan D, taking into account service
purchased under subdivision (c). In no event shall the exchange of
service under subdivision (c) affect the entry age with respect to,
or the cost of, employee contributions made, or service purchased,
prior to the exchange.
(c) (1) A general member who has elected to change plans under
subdivision (a) also may elect to exchange, at that time or any time
thereafter, but prior to the earlier of his or her application for
retirement, termination from employment, or death, some portion
designated in whole-month increments, or all of the service credited
under Retirement Plan E for an equivalent amount of service credited
under Retirement Plan D, provided, however, that the member may not
exchange less than 12 months' service or, if less, the total service
credited under Retirement Plan E. The exchange shall be effective on
the date when the member completes the purchase of that service by
depositing in the retirement fund, by lump sum or regular monthly
installments, over the period of time determined by a resolution
adopted by a majority vote of the board of retirement, or both, but
in any event prior to the earlier of his or her death or the date
that is 120 days after the effective date of his or her retirement,
the sum of: (1) the contributions the member would have made to the
retirement fund under Retirement Plan D for that length of time for
which the member shall receive credit as service under Retirement
Plan D, computed in accordance with the rate of contribution
applicable to the member under Retirement Plan D, based upon his or
her entry age, and in the same manner prescribed under Retirement
Plan D as if that plan had been in effect during the period for which
the member shall receive service credit, and (2) the regular
interest thereon.
(2) For the purposes of this subdivision, a member's entry age
shall be deemed to be the member's age at his or her birthday nearest
the date on which begins the most recent period of unbroken service
credited under Retirement Plan D following completion of the service
exchange under this subdivision. A member may receive credit for a
period of service under only one plan and in no event shall a member
receive credit for the same period of service under both Retirement
Plan D and Retirement Plan E.
(3) A member who fails to complete the purchase of service as
required under this subdivision shall be treated as completing an
exchange of service under Retirement Plan E for an equivalent amount
of service under Retirement Plan D only with regard to the service
that actually has been purchased through completed deposit with the
retirement fund of the requisite purchase amount, calculated in
accordance with this subdivision.
(d) Except as otherwise provided in this section, effective as of
the transfer date, a member who has transferred to Retirement Plan D
pursuant to this section and his or her survivors or beneficiaries
shall receive retirement, disability, survivors', death, or other
benefits that shall consist of: (1) the benefits to which they are
entitled under the terms of Retirement Plan D, but based on the
member's service credited only under that plan, and payable at the
time and in the manner provided under Retirement Plan D, and (2) the
benefits to which they would have been entitled under the terms of
Retirement Plan E had the member remained a member of Retirement Plan
E, but based on the member's service credited only under that plan,
and payable at the time and in the manner provided under Retirement
Plan E. Except as otherwise provided in this section, the calculation
of the portion of a member's or beneficiary's benefit that is
attributable to each plan is subject to that plan's respective,
separate terms, including, but not limited to, the definitions of
"final compensation" and provisions establishing cost-of-living
adjustments, establishing minimum age and service requirements, and
governing integration with federal social security payments.
Notwithstanding the foregoing, the aggregate service credited under
both Retirement Plan D and Retirement Plan E shall be taken into
account for the purpose of determining eligibility for, and vesting
of, benefits under each plan.
(e) Notwithstanding any other provision of Retirement Plan D or
Retirement Plan E, a member who transfers into Retirement Plan D
under this section may retire for service-connected or
nonservice-connected disability and receive disability benefits under
Retirement Plan D only if he or she has either (1) completed two
continuous years of active service after his or her most recent
transfer date, or (2) earned five years of retirement service credit
under Retirement Plan D after his or her most recent transfer date.
Notwithstanding any other provision to the contrary, a member who
becomes disabled and does not meet either of these conditions (1) may
apply for and receive only a deferred or service retirement
allowance, or (2) may elect to transfer prospectively back to
Retirement Plan E, and for the purposes of calculating his or her
retirement benefits under this section, shall in lieu of credit under
Retirement Plan D be credited with service under Retirement Plan E
as provided under subdivision (g) of Section 31488 during any period
he or she is totally disabled and is receiving, or eligible to
receive, disability benefits, either during or after any elimination
or qualifying period, under a disability plan provided by the
employer up to the earlier of the date he or she retires or no longer
qualifies for disability benefits. If a member dies before he or she
is eligible to retire and before completing either two continuous
years of active service after the transfer date into Retirement Plan
D or after earning five years of retirement service credit under
Retirement Plan D after that transfer date, that member's beneficiary
shall not be entitled to the survivor allowance under Section
31781.1 or 31781.12, if operative.
(f) Notwithstanding any other provisions of Retirement Plan D or
Retirement Plan E, a member who has transferred to Retirement Plan D
pursuant to this section and who retires for disability when eligible
under this section and Retirement Plan D, may not also retire for
service and receive service retirement benefits under Retirement Plan
E. However, for the purpose of calculating disability benefits under
Retirement Plan D, the "sum to which he or she would be entitled as
service retirement" or his or her "service retirement allowance," as
those terms are used in Sections 31726, 31726.5, and 31727.4, shall
consist of the blended benefit to which the member would be entitled
under subdivision (d) if he or she retired for service, not just the
service retirement benefit to which he or she would be entitled under
Retirement Plan D.
(g) As used in this section:
(1) "Active service" means time spent on active, on-the-job
performance of the duties of a full-time or part-time position and on
any authorized paid leaves of absence; provided, however, that any
authorized paid leave of absence or part-time service shall not
constitute active service if the leave of absence or part-time
service is necessitated by a preexisting disability, injury, or
disease. The board of retirement shall determine whether or not a
leave of absence or part-time service is necessitated by a
preexisting disability, injury, or disease, and thus excluded from
the member's active service, based upon evidence presented by the
employer and the member upon request by the board.
(2) "Entry age" means the age used for calculating the normal rate
of contribution to Retirement Plan D with respect to a member who
has transferred membership to Retirement Plan D under this section.
(3) "Period of active employment" means a period during which the
member is actively performing the duties of a full-time or part-time
employee position or is on any authorized paid leave of absence,
except a leave of absence during which the member is totally disabled
and is receiving, or is eligible to receive, disability benefits,
either during or after any elimination or qualifying period, under a
disability plan provided by the employer.
(4) "Retirement Plan D" means the contributory retirement plan
otherwise available to members of the system between June 1, 1979,
and December 31, 2012, inclusive.
(5) "Retirement Plan E" means the noncontributory retirement plan
established under this article.
(6) "Transfer date" means the first day of the first month that is
at least 30 days after the date that the application is filed with
the board to change plan membership under subdivision (a).
(h) This section shall only be applicable to Los Angeles County
and shall not become operative until the board of supervisors of that
county elects, by resolution adopted by a majority vote, to make
this section operative in the county.
SEC. 3. Section 31495.7 is added to the Government Code, to read:
31495.7. Section 31835.1 applies to a member eligible to retire
at 55 years of age pursuant to Section 31491. This section is
declaratory of existing law.
SEC. 4. Section 31520.6 is added to the Government Code, to read:
31520.6. Notwithstanding any provision to the contrary in Section
31520.3 or 31520.5, in any county in which there is an alternate
retired member, if the eighth member is present, the alternate
retired member may also vote as a member of the board in the event
both the second and third, or both the second and seventh, or both
the third and seventh members are absent for any cause.
SEC. 5. Section 31526 of the Government Code is amended to read:
31526. The regulations shall include provisions:
(a) For the election of officers, their terms, meetings, and all
other matters relating to the administrative procedure of the board.
(b) For one of the following:
(1) The filing of a sworn statement by every person who is or
becomes a member, showing date of birth, nature and duration of
employment with the county, compensation received, and other
information as is required by the board.
(2) In lieu of a sworn statement, the submission by the member's
employer to the retirement association of the information otherwise
required in paragraph (1), in a form determined by the retirement
association.
(c) For forms of annuity certificates and other forms as required.
