Bill Text: CA AB875 | 2011-2012 | Regular Session | Amended
Bill Title: Public employees' retirement.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-02-01 - Died pursuant to Art. IV, Sec. 10(c) of the Constitution. From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB875 Detail]
Download: California-2011-AB875-Amended.html
BILL NUMBER: AB 875 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 31, 2011
INTRODUCED BY Assembly Member Donnelly
FEBRUARY 17, 2011
An act to amend Section 31461 of add
Section 7514.6 to the Government Code, relating to
county public employees' retirement.
LEGISLATIVE COUNSEL'S DIGEST
AB 875, as amended, Donnelly. County retirement.
Public employees' retirement.
The Public Employees' Retirement Law (PERL) creates the Public
Employees' Retirement System, which provides a defined benefit to its
members based on age at retirement, service credit, and final
compensation. PERL defines "final compensation" for purposes of
calculating a member's retirement allowance. The State Teachers'
Retirement Law, the Judges' Retirement System II Law, and the County
Employees Retirement Law of 1937 also provide for a defined benefit
based on age at retirement, service credit, and final compensation.
This bill, for persons first hired on and after January 1, 2012,
for the purpose of determining any pension or benefit with respect to
a public entity defined benefit retirement system, would prohibit
the inclusion of credit for accrued leave of any form or credit for
overtime work in the calculation of final compensation, as specified.
The County Employees Retirement Law of 1937 sets forth a
comprehensive system of retirement benefits for county and district
employees. Existing law defines the term "compensation earnable" for
purposes of determining required contributions and benefits.
This bill would make a technical, nonsubstantive change to that
provision.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7514.6 is added to the
Government Code , to read:
7514.6. (a) Notwithstanding any other provision of law, for the
purpose of determining any pension or benefit with respect to service
with a public entity that has a retirement system that provides a
defined benefit for which final compensation is an element, "final
compensation" shall not include any compensation for accrued leave of
any form or compensation for overtime work. On and after January 1,
2012, the creation of a contractual right to a calculation of final
compensation that includes credit for accrued leave or credit for
overtime work is prohibited.
(b) This section shall apply to a person employed by the public
entity for the first time on and after January 1, 2012. If a
memorandum of understanding, entered into prior to January 1, 2012,
would preclude application of this section with regard to particular
employment classifications, this section shall not apply to a person
to be employed in those classifications governed by the memorandum of
understanding, provided that upon expiration of the memorandum of
understanding this section shall apply. A renewal or continuation of
an existing memorandum of understanding shall be considered a new
agreement for purposes of this section and shall not supersede the
requirements of subdivision (a).
SECTION 1. Section 31461 of the Government Code
is amended to read:
31461. "Compensation earnable" by a member means the average
compensation as determined by the board, for the period under
consideration upon the basis of the average number of days ordinarily
worked by persons in the same grade or class of positions during the
period and at the same rate of pay. The computation for any absence
shall be based on the compensation of the position held by the member
at the beginning of the absence. Compensation, as defined in Section
31460, that has been deferred shall be deemed "compensation earnable"
when earned, rather than when paid.
