Bill Text: CA SB1168 | 2021-2022 | Regular Session | Introduced

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

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Bill Title: Public employees’ retirement: beneficiary payment.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2022-08-26 - Chaptered by Secretary of State. Chapter 193, Statutes of 2022. [SB1168 Detail]

Download: California-2021-SB1168-Introduced.html

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CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill

No. 1168

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Introduced by Senator Cortese

February 17, 2022

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An act to amend Section 21620 of, and to add Section 21620.5 to, the Government Code, relating to public retirement.

LEGISLATIVE COUNSEL'S DIGEST

SB 1168, as introduced, Cortese. Public employees’ retirement: beneficiary payment.

The Public Employees’ Retirement Law (PERL) creates the Public Employees’ Retirement System (PERS) to provide defined benefits to members of the system based on final compensation, credited service, and age at retirement, subject to certain variations. PERS is administered by its board of administration. Existing law, upon the death of a member after retirement and while receiving a retirement allowance from PERS, pays $500 to the person’s beneficiary, unless otherwise provided.

This bill would require the board to determine the average benefit paid under various PERS provisions upon the death of a member, as provided, and would require the board, beginning on July 1, 2023, to increase the $500 beneficiary payment described above annually in a specified amount until the beneficiary payment reaches the average benefit paid, as calculated by the board.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 21620 of the Government Code is amended to read:

21620.

 (a) Upon the death of any person, after retirement and while receiving a retirement allowance from this system, there shall be paid to his or her the person’s beneficiary as he or she shall nominate nominated by written designation duly executed and filed with the board, the sum of five hundred dollars ($500), to be provided from contributions by the state or contracting agency, as the case may be.

(b) Notwithstanding Section 7522.44, on July 1, 2023, and annually thereafter, as necessary, the benefit amount authorized in subdivision (a) shall be adjusted pursuant to Section 21620.5.

(b)

(c) This section shall apply to all contracting agencies and to the employees of those agencies.

SEC. 2.

 Section 21620.5 is added to the Government Code, to read:

21620.5.

 (a) On or before February 1, 2023, the board shall determine the average benefit payable, pursuant to Sections 21620, 21621, 21622, 21623, 21623.5, and 21623.6, to all members as of December 31, 2022. The board shall report that amount to the legislative fiscal committees and the Department of Finance on or before May 1, 2023.

(b) On July 1, 2023, and annually thereafter as necessary, the board shall increase the benefit amount authorized in Section 21620, subject to subdivision (c), until the benefit amount equals the amount determined in subdivision (a).

(c) The annual increase authorized in (b) shall not exceed the United States Bureau of Labor Statistics Consumer Price Index for All Urban Consumers.