Bill Text: CA SB1143 | 2011-2012 | Regular Session | Amended
Bill Title: Public employees' benefits: postemployment benefits.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-04-18 - Set, first hearing. Failed passage in committee. (Ayes 1. Noes 4. Page 3208.) Reconsideration granted. [SB1143 Detail]
Download: California-2011-SB1143-Amended.html
BILL NUMBER: SB 1143 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 9, 2012
INTRODUCED BY Senator Walters
FEBRUARY 21, 2012
An act to add Section 7507.3 to Chapter 13
(commencing with Section 3700) to Division 4 of Title 1 of the
Government Code, relating to public employee benefits.
LEGISLATIVE COUNSEL'S DIGEST
SB 1143, as amended, Walters. Public employees' benefits:
postemployment health care. benefits.
Existing law establishes the Public Employees' Retirement System
(PERS) and the State Teachers' Retirement System (STRS) for the
purpose of providing pension benefits to their employees. Existing
law also establishes the Judges' Retirement System II which provides
pension benefits to elected judges and the Legislators' Retirement
System which provides pension benefits to elective officers of the
state other than judges and to legislative statutory officers. The
County Employees Retirement Law of 1937 authorizes counties, cities,
and districts to establish retirement systems pursuant to its
provisions in order to provide pension benefits to employees. The
Regents of the University of California have established the
University of California Retirement System as a trust for this
purpose.
This bill would require a public employer, as defined, to reserve
the right to subsequently modify or revise any postemployment
benefits, including any retirement benefits, and the right not to
provide any new comparable advantages if disadvantages to employees
result from any modification or revision. The bill would prohibit a
public employee from having an implied right to future postemployment
benefits and would authorize a public employer to change a
retirement benefit formula, employee contribution rate, or retirement
eligibility age, except as prohibited by federal law. The bill would
prohibit accrued benefits earned for prior service from being
reduced without written consent unless otherwise authorized by law.
The Public Employees' Medical and Hospital Care Act (PEMHCA),
which is administered by the Board of Administration of the Public
Employees' Retirement System, establishes provisions governing
postemployment health care benefits for members and their families,
upon meeting vesting requirements and subject to various limitations.
Existing law also establishes various postemployment health care
benefits under other benefit systems, including those offered by
counties, districts, and cities.
This bill would require a public employer, as defined, to fund
actuarially postemployment health care benefits to be provided to its
public employees, in accordance with generally accepted accounting
principles for governments, as specified, to ensure that those
benefits are fully funded.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 13 (commenci ng with
Section 3700) is added to Division 4 of Title 1 of the
Government Code , to read:
CHAPTER 13. POSTEMPLOYMENT BENEFITS
3700. For the purposes of this chapter, the following terms have
the following meanings:
(a) "Postemployment benefits" means any health, life, welfare, or
other supplemental benefit or any retirement benefits, including
pension benefits or defined contribution benefits, provided to a
retired public employee.
(b) "Public employee" means an officer, including those elected or
appointed, or an employee of a public employer, who is first hired,
elected, or appointed on or after January 1, 2013.
(c) "Public employer" means:
(1) The state and every state entity, including, but not limited
to, the Legislature, the courts, the California State University, and
the University of California.
(2) Any political subdivision of the state, including, but not
limited to, a city, county, city and county, charter city, charter
county, charter city and county, school district, community college
district, joint powers authority, joint powers agency, and any public
agency, authority, board, commission, district, or other entity.
3701. A public employer shall reserve the right to subsequently
modify or revise any postemployment benefits and the right to not
provide any new comparable advantages if disadvantages to employees
result from any modification or revision.
3702. (a) A public employee shall not have an implied right to
future postemployment benefits.
(b) A public employer may change a retirement benefit formula,
employee contribution rate, or retirement eligibility age, except as
prohibited by federal law.
3703. A public employee shall not assert the indefinite
continuation of any retirement formula, contribution rate, or
retirement eligibility age in effect during his or her employment.
3704. The accrued benefits earned for prior service shall not be
reduced without written consent unless otherwise authorized by law.
SECTION 1. Section 7507.3 is added to the
Government Code, to read:
7507.3. (a) Notwithstanding any other law, a public employer
shall fund actuarially postemployment health care benefits to be
provided to its public employees, in accordance with generally
accepted accounting principles for governments, using amortization of
unfunded liabilities over periods that do not exceed the remaining
service lives of current employees, for the purpose of ensuring that
those benefits are fully funded.
(b) For purposes of this section, the following definitions apply:
(1) "Public employee" means an officer, including those elected or
appointed, or an employee of a public employer.
(2) "Public employer" means:
(A) The state and every state entity, including, but not limited
to, the Legislature, the courts, and the California State University,
but excluding the University of California.
(B) Any political subdivision of the state, including, but not
limited to, a city, county, school district, community college
district, joint powers authority, joint powers agency, and any public
agency, authority, board, commission, district, or other entity, but
excluding a charter city or charter county.
