Bill Text: CA SB1203 | 2015-2016 | Regular Session | Chaptered

California Senate Bill 1203 (Prior Session Legislation)

Bill Title: Retirement systems: joint powers authorities: benefit formulas.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Passed) 2016-09-27 - Chaptered by Secretary of State. Chapter 729, Statutes of 2016. [SB1203 Detail]

Download: California-2015-SB1203-Chaptered.html

BILL NUMBER: SB 1203	CHAPTERED
	BILL TEXT

	CHAPTER  729
	FILED WITH SECRETARY OF STATE  SEPTEMBER 27, 2016
	APPROVED BY GOVERNOR  SEPTEMBER 27, 2016
	PASSED THE SENATE  MAY 31, 2016
	PASSED THE ASSEMBLY  AUGUST 18, 2016
	AMENDED IN SENATE  APRIL 13, 2016
	AMENDED IN SENATE  MARCH 28, 2016

INTRODUCED BY   Senator Hertzberg

                        FEBRUARY 18, 2016

   An act to add Section 7522.05 to the Government Code, relating to
retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1203, Hertzberg. Retirement systems: joint powers authorities:
benefit formulas.
   The California Public Employees' Pension Reform Act of 2013
(PEPRA) requires a public retirement system, as defined, to modify
its plan or plans to comply with the act and, among other provisions,
establishes new retirement formulas that may not be exceeded by a
public employer offering a defined benefit pension plan for employees
first hired on or after January 1, 2013. Existing law, the Joint
Exercise of Powers Act, generally authorizes 2 or more public
agencies, by agreement, to jointly exercise any common power, which
may include hiring employees and establishing retirement systems.
   This bill would authorize a joint powers authority to offer
defined benefit plans or formulas that are not PEPRA plans or
formulas provided that the plans or formulas were those the employees
received prior to the creation of the authority, the employees are
not new members under PEPRA, and they are employed by the authority
within 180 days, as specified.



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

  SECTION 1.  Section 7522.05 is added to the Government Code, to
read:
   7522.05.  (a) A joint powers authority formed on or after January
1, 2013, and formed pursuant to the provisions of the Joint Exercise
of Powers Act (Article 1 (commencing with Section 6500) of Chapter
5), where at least one member agency provided benefits on or before
December 31, 2012, as described in subdivision (c) of Section
7522.02, may provide employees of that joint powers authority the
defined benefit plan or formula that those employees received from
their respective employers prior to the exercise of a common power
where that employee was not a new member with that employer and
subsequently is employed by the joint powers authority within 180
days of the member agency providing for the exercise of a common
power.
   (b) The formation of a joint powers authority on or after January
1, 2013, shall not act in a manner as to exempt a new employee or a
new member, as defined by Section 7522.04, hired by that joint powers
authority from the requirements of the Public Employees' Pension
Reform Act of 2013. New members may only participate in a defined
benefit plan or formula that conforms to the requirements of the
Public Employees' Pension Reform Act of 2013.