Bill Text: CA SB1162 | 2015-2016 | Regular Session | Enrolled

California Senate Bill 1162 (Prior Session Legislation)

Bill Title: Public employees' retirement: Mammoth Lakes Fire

Spectrum: Partisan Bill (Republican 1-0)

Status: (Vetoed) 2016-11-30 - Last day to consider Governor's veto pursuant to Joint Rule 58.5. [SB1162 Detail]

Download: California-2015-SB1162-Enrolled.html

BILL NUMBER: SB 1162	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 18, 2016
	PASSED THE ASSEMBLY  AUGUST 4, 2016
	AMENDED IN ASSEMBLY  JUNE 15, 2016
	AMENDED IN SENATE  MARCH 30, 2016

INTRODUCED BY   Senator Berryhill

                        FEBRUARY 18, 2016

   An act to add Section 20817 to the Government Code, relating to
public retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1162, Berryhill. Public employees' retirement: Mammoth Lakes
Fire District.
   Existing law, the Public Employees' Retirement Law, creates the
Public Employees' Retirement System (PERS), which provides a defined
benefit to its members based on age at retirement, service credit,
and final compensation. Existing law vests the Board of
Administration of PERS with management and control of the system.
Existing law authorizes any public agency to participate in and make
all or part of its employees members of PERS, as specified.
   This bill would authorize the Mammoth Lakes Fire District (MLFD)
to request that the board transfer, and upon that request would
require the board to transfer, all or a portion of available excess
assets credited to the miscellaneous member category from the MLFD's
employer account to satisfy the MLFD's unfunded accrued actuarial
obligations for its safety plan if the market value of assets
attributable to the MLFD's miscellaneous plan exceeds 150% of the
amount that is the actuarial equivalent of the amount the system
would be obligated to pay after the effective date of contract
termination to, or on account of, persons who are or have been
employed by, and on account of service rendered by them to, the MLFD,
as specified.
   This bill would make legislative findings and declarations as to
the necessity of a special statute for the Mammoth Lakes Fire
District.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 20817 is added to the Government Code, to read:

   20817.  (a) The Mammoth Lakes Fire District (MLFD) may request
that the board transfer all or a portion of available excess assets
credited to its miscellaneous member plan from the MLFD's employer
account to satisfy the MLFD's unfunded accrued actuarial obligations
for its safety plan if
    the market value of assets attributable to the MLFD's
miscellaneous plan exceeds 150 percent of the amount that is the
actuarial equivalent, including contingencies for mortality
fluctuations, of the amount this system would be obligated to pay
after the effective date of contract termination to, or on account
of, persons who are or have been employed by, and on account of
service rendered by them to, the MLFD, as determined by the chief
actuary in accordance with subdivision (a) of Section 20576.
   (b) Upon request, the board shall transfer the assets, in which
case the transferred assets shall be used solely to satisfy the MLFD'
s current unfunded accrued actuarial obligations in its safety plan.
The transferred assets shall remain in the trust fund and shall be
for the exclusive use of the MLFD's safety plan.
   (c) The amount that may be transferred pursuant to this section
shall not exceed
    the difference between the market value of assets attributable to
the MLFD's miscellaneous plan as of the most recently completed
valuation and 150 percent of the amount of which is the actuarial
equivalent of the amount the system would be obligated to pay as
described in subdivision (a).
   (d) Before requesting the board to transfer available excess
assets in its miscellaneous plan to satisfy the MLFD's unfunded
accrued actuarial obligations for its safety plan, the MLFD shall
notify its employees of the intended request. The notice to the
employees shall be in writing. The notice to the employees shall be
issued at least two weeks prior to requesting the transfer of assets
between the plans.
   (e) The MLFD shall submit a statement in writing to the board that
the MLFD has notified its employees as described in subdivision (d)
in order for the board to make the transfer.
  SEC. 2.   The Legislature finds and declares that a special law is
necessary and that a general law cannot be made applicable within the
meaning of Section 16 of Article IV of the California Constitution
because of the unique circumstances faced by the Mammoth Lakes Fire
District in funding its pension obligations.