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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Amended.html

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BILL NUMBER: SB 1162	AMENDED
	BILL TEXT

	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, as amended, 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 
specified conditions are met.   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.
   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.  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  the   its
miscellaneous member  category   plan  from
the MLFD's employer account to satisfy the MLFD's unfunded accrued
actuarial obligations for its safety plan if  both of the
following are true of the miscellaneous plan from which the assets
will be transferred, as of the most recently completed valuation:
 
   (1) The actuarial value of assets attributable to the MLFD's
miscellaneous plan exceeds 200 percent of the accrued actuarial
liability, as determined by the chief actuary in accordance with
Section 20816. 
    (2)     The 
 the  market value of assets attributable to the MLFD's
miscellaneous plan exceeds 150 percent of the amount  which
  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  either of the following:  

   (1) The difference between the actuarial value of assets
attributable to the MLFD's miscellaneous plan and the amount
described in paragraph (1) of subdivision (a). 
    (2)     The 
 the  difference between the market value of assets
attributable to the MLFD's miscellaneous plan  and the amount
described in paragraph (2) of subdivision (a).   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.