Bill Text: CA AB2474 | 2023-2024 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Retirement: County Employees Retirement Law of 1937: benefit payments and overpayments.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Enrolled) 2024-07-03 - Enrolled and presented to the Governor at 3 p.m. [AB2474 Detail]
Download: California-2023-AB2474-Introduced.html
or credit union
union, or prepaid account to be credited to the account of the retired member or survivor of a deceased retired member. That delivery is full discharge of the liability of the board to pay a monthly retirement allowance or benefit to the retired member or survivor of a deceased retired member. him or her, them, not to exceed 120 working days or 960 hours, whichever is greater, in any one fiscal year or any other 12-month period designated by the board of supervisors and may be paid for that employment. That employment shall not operate to reinstate the person as a
member of this system or to terminate or suspend his or her their retirement allowance, and no deductions shall be made from his or her their salary as contributions to this system.
Bill Title: Retirement: County Employees Retirement Law of 1937: benefit payments and overpayments.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Enrolled) 2024-07-03 - Enrolled and presented to the Governor at 3 p.m. [AB2474 Detail]
Download: California-2023-AB2474-Introduced.html
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 2474
| Introduced by Assembly Member Lackey |
February 13, 2024 |
An act to amend Sections 31452.6, 31590, 31680.2, 31680.3, and 31680.6 of, and to add Section 31680.9 to, the Government Code, relating to retirement.
LEGISLATIVE COUNSEL'S DIGEST
AB 2474, as introduced, Lackey.
Retirement: County Employees Retirement Law of 1937: benefit payments and overpayments.
(1) The County Employees Retirement Law of 1937 (CERL) authorizes counties and districts to establish retirement systems in order to provide pension benefits to their employees and their beneficiaries and prescribes the rights, benefits, and duties of members in this regard. CERL defines compensation and compensation earnable for purposes of its provisions. Existing law, the Public Employees’ Pension Reform Act of 2013 (PEPRA), prescribed various limitations on public employees, employers, and retirement systems concerning, among other things, the types of remuneration that may be included in compensation that is applied to pensions.
Under CERL, the board of retirement is required to comply with and give effect to a revocable written authorization signed by a retired member or beneficiary of a retired member, as described,
authorizing the treasurer or other entity authorized by the board to deliver the monthly warrant, check, or electronic fund transfer for the retirement allowance or benefit to any specified bank, savings and loan institution, or credit union to be credited to the account of the retired member or survivor of a deceased retired member.
This bill would also authorize the monthly warrant, check, or electronic fund transfer for the retirement allowance or benefit to be delivered to a prepaid account, as defined. The bill would also define “account of the retired member or survivor of a deceased retired member” to include an account held in a living trust or an income-only trust, as specified.
Under CERL, any person entitled to the receipt of benefits may authorize the payment of the benefits to be directly deposited by electronic fund transfer into the person’s account at the financial institution of the person’s choice, as
specified.
This bill would also allow a deposit into a prepaid account, as described.
(2) Under CERL, any person who has retired may be employed and paid in a position requiring special skills or knowledge for a period of time not to exceed 90 working days or 720 hours, whichever is greater, in any one fiscal year or any other 12-month period designated by the board of supervisors. That law authorizes a county to extend, as specified, that period of time, not to exceed 120 working days or 960 hours, whichever is greater, in any one fiscal year or any other 12-month period, as specified. That law also authorizes other specified retired members to be reemployed and paid in a position requiring special skills or knowledge for a period of time not to exceed 120 working days or 960 hours, whichever is greater, in any one fiscal year. Those laws authorize this employment without reinstatement into the
system, termination or suspension of their retirement allowance, or deductions to their salary as contributions to the system.
Under PEPRA, a retired person is prohibited from serving, or being employed by, as specified, a public employer in the same public retirement system from which the retiree receives the benefit without reinstatement from retirement, unless an exception applies. Under PEPRA, one of those exceptions authorizes a retired person to serve without reinstatement if appointed by the appointing power of a public employer during an emergency to prevent stoppage of public business or because the retired person has skills needed to perform work of limited duration. That law limits those appointments to a total for all employers in that system of 960 hours or other equivalent limit, in a calendar or fiscal year, depending on the administrator of the system.
This bill would provide that a retired person’s
retirement allowance shall be considered an overpayment subject to collection to the extent it is payable during any period in which the retired person is employed and paid for that employment in excess of the periods described above. The bill would not preclude the retirement system from taking additional action to reinstate the person as a member of the system or terminate or suspend their retirement allowance.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 31452.6 of the Government Code is amended to read:31452.6.
(a) (1) The board shall comply with and give effect to a revocable written authorization signed by a retired member or beneficiary of a retired member entitled to a retirement allowance or benefit under this chapter or the California Public Employees’ Pension Reform Act of 2013, authorizing the treasurer or other entity authorized by the board to deliver the monthly warrant, check, or electronic fund transfer, for the retirement allowance or benefit to any specified bank, savings and loan institution,(2) For purposes of this subdivision, a prepaid account shall have the same meaning as in Section 1339.1 of the Unemployment Insurance Code and shall meet the applicable requirements of that section to qualify under this subdivision.
(b) Any payments directly deposited by electronic fund transfer following the date of death of a person who was entitled to receive a retirement allowance or benefit under this chapter or the California Public
Employees’ Pension Reform Act of 2013 shall be refunded to the retirement system.
(c) In order to obtain information from a financial institution following the death of a retired member or the beneficiary of a retired member, as provided in subdivision (o) of Section 7480, the board may certify in writing to the financial institution that the retired member or the beneficiary of a retired member has died and that transfers to the account of the retired member or beneficiary of a retired member at the financial institution from the retirement system occurred after the date of death of the retired member or the beneficiary of a retired member.
(d) For purposes of this section, “account of the retired member or survivor of a deceased retired member,” may include an account held in a living trust or an
income-only trust, also known as a Miller trust, that is controlled by the retired member or survivor of a deceased retired member or that is established for the retired member’s or the survivor of a deceased retired member’s benefit, in order to qualify for Medi-Cal, as established pursuant to Chapter 14 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code, or comparable assistance.
SEC. 2.
Section 31590 of the Government Code is amended to read:31590.
(a) All warrants, checks, and electronic fund transfers drawn on the retirement fund shall be signed or authorized by at least two board officers or employees, designated by the board or by the treasurer if designated by the board. If the treasurer is designated by the board, the board shall also designate the auditor to sign or authorize warrants, checks, and electronic fund transfers. The authorization may be by blanket authorization of all warrants, checks, or electronic fund transfers appearing on a list or register, or may be by a standing order to draw warrants, checks, or electronic fund transfers, which shall be good until revoked. If the treasurer and auditor are designated by the board, a warrant, check, or electronic fund transfer is not valid until it is signed or authorized, numbered, and recorded by the county auditor, except as provided in subdivision (c).(b) Any person entitled to the receipt of benefits may authorize the payment of the benefits to be directly deposited as follows:
(1) Directly deposited by electronic fund transfer into the person’s account at the financial institution of the person’s choice under a program for direct deposit by electronic transfer established by the board or treasurer if authorized by the board. The direct deposit shall discharge the system’s
obligation in respect to that payment.
(2) Deposited into a prepaid account under a program for deposit into a prepaid account that is established by the board or by the treasurer if authorized by the board. That deposit shall discharge the system’s obligation in respect to that payment. For purposes of this paragraph, a prepaid account shall have the same meaning as in Section 1339.1 of the Unemployment Insurance Code and shall meet the applicable requirements of that section to qualify under this paragraph.
(c) The board may, or, if authorized by the board, the treasurer shall, authorize a trust company or trust department of any state or national bank authorized to conduct the business of a trust company in this state or the Federal Reserve Bank of San Francisco or any
branch thereof within this state, to process and issue payments by check or electronic fund transfer.
SEC. 3.
Section 31680.2 of the Government Code is amended to read:31680.2.
(a) Any person who has retired may be employed in a position requiring special skills or knowledge, as determined by the county or district employing them, for a period of time not to exceed 90 working days or 720 hours, whichever is greater, in any one fiscal year or any other 12-month period designated by the board of supervisors and may be paid for that employment. That employment shall not operate to reinstate the person as a member of this system or to terminate or suspend their retirement allowance, and no deductions shall be made from their salary as contributions to this system.(b) (1) This section shall not apply to any retired person who is otherwise eligible for employment under this section if, during the 12-month period prior to
an appointment described in this section, that retired person receives unemployment insurance compensation arising out of prior employment subject to this section with the same employer.
(2) A retired person who accepts an appointment after receiving unemployment insurance compensation as described in this subdivision shall terminate that employment on the last day of the current pay period and shall not be eligible for reappointment subject to this section for a period of 12 months following the last day of employment.
(3) Beginning January 1, 2013, if any provision of this section conflicts with the California Public Employees’ Pension Reform Act of 2013, the provisions of that act shall prevail, except that the limit on postretirement employment provided in subdivision (a) to the greater of 90 working days or 720 hours shall remain effective.
(c) Notwithstanding subdivision (a), a retired person’s retirement allowance shall be considered an overpayment to the extent it is payable during any period in which the retired person is employed and paid for that employment in excess of 90 working days or 720 hours, whichever is greater, in any one fiscal year or any other 12-month period designated by the board of supervisors. The overpayment shall be subject to collection by the retirement system. This subdivision does not preclude the retirement system from taking additional action, as it deems necessary, to reinstate the person as a member of the system or terminate or suspend their retirement allowance.
SEC. 4.
Section 31680.3 of the Government Code is amended to read:31680.3.
(a) Notwithstanding Section 31680.2, any member who has been covered under the provisions of Section 31751 and has retired may be reemployed in a position requiring special skills or knowledge, as determined by the county or district employing the member, for a period of time not to exceed 120 working days or 960 hours, whichever is greater, in any one fiscal year and may be paid for that employment. That employment shall not operate to reinstate the person as a member of this system or to terminate or suspend the person’s retirement allowance, and no deductions shall be made from the person’s salary as contributions to this system.(b) (1) This section shall not apply to any retired member who is otherwise eligible for reemployment under
this section if, during the 12-month period prior to an appointment described in this section, that retired person receives unemployment insurance compensation arising out of prior employment subject to this section with the same employer.
(2) A retired person who accepts an appointment after receiving unemployment insurance compensation as described in this subdivision shall terminate that employment on the last day of the current pay period and shall not be eligible for reappointment subject to this section for a period of 12 months following the last day of employment.
(c) Beginning January 1, 2013, if any provision of this section conflicts with the California Public Employees’ Pension Reform Act of 2013, the provisions of that act shall prevail.
(d) Notwithstanding subdivision (a), a retired person’s retirement allowance shall be considered an overpayment to the extent it is payable during any period in which the retired person is employed and paid for that employment in excess of 120 working days or 960 hours, whichever is greater, in any one fiscal year or any other 12-month period designated by the board of supervisors. The overpayment shall be subject to collection by the retirement system. This subdivision does not preclude the retirement system from taking additional action, as it deems necessary, to reinstate the person as a member of the system or terminate or suspend their retirement allowance.
SEC. 5.
Section 31680.6 of the Government Code is amended to read:31680.6.
(a) Notwithstanding Section 31680.2, any county subject to Section 31680.2 may, upon adoption of a resolution by a majority vote by the board of supervisors, extend the period of time provided for in Section 31680.2 for which a person who has retired may be employed in a position requiring special skills or knowledge, as determined by the county or district employing(b) (1) This section shall not apply to any retired person who is otherwise eligible for employment under this section if, during the 12-month period prior to an appointment described in this section, that retired person receives unemployment insurance compensation arising out of prior employment subject to this section with the same employer.
(2) A retired person who accepts an appointment after receiving unemployment insurance compensation as described in this subdivision shall terminate that employment on the last day of the current pay period and shall not be eligible for reappointment subject to this section for a period of 12 months following the last day of employment.
(c) Beginning January 1, 2013, if any provision of this section conflicts with the California Public Employees’ Pension Reform Act of 2013, the provisions of that act shall prevail.
(d) Notwithstanding subdivision (a), a retired person’s retirement allowance shall be considered an overpayment to the extent it is payable during any period in which the retired person is employed and paid for that employment
in excess of 120 working days or 960 hours, whichever is greater, in any one fiscal year or any other 12-month period designated by the board of supervisors. The overpayment shall be subject to collection by the retirement system. This subdivision does not preclude the retirement system from taking additional action, as it deems necessary, to reinstate the person as a member of the system or terminate or suspend their retirement allowance.
