Bill Text: CA AB696 | 2013-2014 | Regular Session | Introduced
Bill Title: Public employment: pensions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-02-03 - Died at Desk. [AB696 Detail]
Download: California-2013-AB696-Introduced.html
BILL NUMBER: AB 696 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Mansoor
FEBRUARY 21, 2013
An act to amend Section 7522.02 of the Government Code, relating
to public employment.
LEGISLATIVE COUNSEL'S DIGEST
AB 696, as introduced, Mansoor. Public employment: pensions.
The California Public Employees' Pension Reform Act of 2013
(PEPRA), on and after January 1, 2013, requires a public retirement
system, as defined, to modify its plan or plans to comply with the
act and, among other provisions, establishes new retirement formulas
that may not be exceeded by a public employer offering a defined
benefit pension plan, setting the maximum benefit allowable for
employees first hired on or after January 1, 2013, as a formula
commonly known as 2.5% at age 67 for nonsafety members, one of 3
formulas for safety members, 2% at age 57, 2.5% at age 57, or 2.7% at
age 57, and 1.25% at age 67 for new state miscellaneous or
industrial members who elect to be in Tier 2. Under PEPRA, the Judges'
Retirement System I and the Judges' Retirement System II are not
required to adopt the defined benefit formula contained in certain
other provisions.
This bill would make technical, nonsubstantive changes to this
provision.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7522.02 of the Government Code is amended to
read:
7522.02. (a) (1) Notwithstanding any other law, except as
provided in this article, on and after January 1, 2013, this article
shall apply applies to all state and
local public retirement systems and to their participating employers,
including the Public Employees' Retirement System, the State
Teachers' Retirement System, the Legislators' Retirement System, the
Judges' Retirement System I, the Judges' Retirement System II, county
and district retirement systems created pursuant to the County
Employees Retirement Law of 1937, independent public retirement
systems, and to individual retirement plans offered by public
employers. However, this article shall be subject to the Internal
Revenue Code and Section 17 of Article XVI of the California
Constitution. The administration of the requirements of this article
shall comply with applicable provisions of the Internal Revenue Code
and the Revenue and Taxation Code.
(2) Notwithstanding paragraph (1), this article shall not apply to
the entities described in Section 9 of Article IX of, and Sections 4
and 5 of Article XI of, the California Constitution, except to the
extent that these entities continue to be participating employers in
any retirement system governed by state statute. Accordingly, any
retirement plan approved before January 1, 2013, by the voters of any
entity excluded from coverage by this section shall not be affected
by this article.
(b) The benefit plan required by this article shall apply to
public employees who are new members as defined in Section 7522.04.
(c) Individuals who were employed by any a
public employer before January 1, 2013, and who became
employed by a subsequent public employer for the first time on or
after January 1, 2013, shall be subject to the retirement plan that
would have been available to employees of the subsequent employer who
were first employed by the subsequent employer on or before December
31, 2012, if the individual was subject to reciprocity established
under any of the following provisions:
(1) Article 5 (commencing with Section 20350) of Chapter 3 of Part
3 of Division 5 of Title 2.
(2) Chapter 3 (commencing with Section 31450) of Part 3 of
Division 4 of Title 3.
(3) Any An agreement
between public retirement systems to provide reciprocity to members
of the systems.
(d) If a public employer, before January 1, 2013, offers a defined
benefit pension plan that provides a defined benefit formula with a
lower benefit factor at normal retirement age and results in a lower
normal cost than the defined benefit formula required by this
article, that employer may continue to offer that defined benefit
formula instead of the defined benefit formula required by this
article, and shall not be subject to the requirements of Section
7522.10 for pensionable compensation subject to that formula.
However, if the employer adopts a new defined benefit formula on or
after January 1, 2013, that formula must conform to the requirements
of this article or must be determined and certified by the retirement
system's chief actuary and the retirement board to have no greater
risk and no greater cost to the employer than the defined benefit
formula required by this article and must be approved by the
Legislature. New members of the defined benefit plan may only
participate in the lower cost defined benefit formula that was in
place before January 1, 2013, or a defined benefit formula that
conforms to the requirements of this article or is approved by the
Legislature as provided in this subdivision.
(e) If a public employer, before January 1, 2013, offers a
retirement benefit plan that consists solely of a defined
contribution plan, that employer may continue to offer that plan
instead of the defined benefit pension plan required by this article.
However, if the employer adopts a new defined benefit pension plan
or defined benefit formula on or after January 1, 2013, that plan or
formula must conform to the requirements of this article or must be
determined and certified by the retirement system's chief actuary and
the system's board to have no greater risk and no greater cost to
the employer than the defined benefit formula required by this
article and must be approved by the Legislature. New members of the
employer's plan may only participate in the defined contribution plan
that was in place before January 1, 2013, or a defined contribution
plan or defined benefit formula that conforms to the requirements of
this article.
(f) The Judges' Retirement System I and the Judges' Retirement
System II shall not be required to adopt the defined benefit formula
required by Section 7522.25 or 7522.30 or the compensation
limitations defined in Section 7522.10.
(g) This article shall not be construed to provide membership in
any a public retirement system for an
individual who would not otherwise be eligible for membership under
that system's applicable rules or laws.
