Bill Text: CA SB1382 | 2011-2012 | Regular Session | Chaptered
Bill Title: County employees' retirement: retiree organizations.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2012-08-17 - Chaptered by Secretary of State. Chapter 178, Statutes of 2012. [SB1382 Detail]
Download: California-2011-SB1382-Chaptered.html
BILL NUMBER: SB 1382 CHAPTERED
BILL TEXT
CHAPTER 178
FILED WITH SECRETARY OF STATE AUGUST 17, 2012
APPROVED BY GOVERNOR AUGUST 17, 2012
PASSED THE SENATE AUGUST 6, 2012
PASSED THE ASSEMBLY JUNE 28, 2012
AMENDED IN ASSEMBLY JUNE 11, 2012
AMENDED IN SENATE MARCH 27, 2012
INTRODUCED BY Senator Negrete McLeod
FEBRUARY 24, 2012
An act to amend Sections 31452.5, 31520.5, 31592.5, and 31693 of,
and to add Sections 31471.5 and 31592.6 to, the Government Code,
relating to county employees' retirement.
LEGISLATIVE COUNSEL'S DIGEST
SB 1382, Negrete McLeod. County employees' retirement: retiree
organizations.
The County Employees Retirement Law of 1937 authorizes counties to
establish retirement systems pursuant to its provisions in order to
provide pension benefits to county, city, and district employees.
That law authorizes a county retirement board to give effect to a
revocable written authorization signed by a retired member or
beneficiary of a retired member entitled to a retirement allowance or
benefit for the deduction of a specified amount for various
purposes, including, among others, paying for group life insurance,
group disability insurance, prepaid group medical or hospital service
plans, and dental plans approved by the board.
This bill would further allow for written authorization of, and
deduction for, payments to a recognized retiree organization and
payment for any retiree benefit programs available through the
recognized retiree organization, as specified.
Under the County Employees Retirement Law of 1937, the retirement
board in specified counties is comprised of 9 members. In those
counties, the board is authorized to appoint an alternate retired
member to the office of the 8th member of the board, from a list of
nominees submitted by a qualified retiree organization, as defined.
This bill would instead authorize that list of nominees to be
submitted by a recognized retiree organization. The bill would also
define "recognized retiree organization" for purposes of the County
Employees Retirement Law of 1937, and would make related conforming
and technical changes.
The County Employees Retirement Law of 1937 requires the
retirement board to provide to any retiree organization that is
recognized by the board reasonable advance notice of proposed changes
to the retirement benefits offered by the system or the use of
excess funds of the retirement system. That law also requires that
the organization have a reasonable opportunity to comment prior to
any formal action by the board on the proposed changes.
This bill would require the board, upon request from a recognized
retiree organization, to cooperate with and assist the organization
in distributing communications regarding membership in and retiree
benefit programs available through the organization to all or a
portion of the retired members of the system. The bill would require
that the content of those communications be wholly the responsibility
of the recognized retiree organization. The bill would also
authorize the board to charge a reasonable fee for those mailings, as
specified.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 31452.5 of the Government Code is amended to
read:
31452.5. (a) The board may comply with and give effect to a
revocable written authorization signed by a retired member or
beneficiary of a retired member entitled to a retirement allowance or
benefit under this chapter, authorizing the treasurer or other
entity authorized by the board to deduct a specified amount from the
retirement allowance or benefit payable to any retired member or
beneficiary of a retired member for any of the following purposes:
(1) Paying premiums on any policy or certificate of group life
insurance or group disability insurance issued by an admitted
insurer.
(2) Paying premiums for a prepaid group medical or hospital
service plan.
(3) Paying premiums for a vision care program or dental plan,
approved by the board, for the benefit of the retired member or his
or her dependents.
(4) Paying premiums on national service life insurance or United
States government converted insurance.
(5) Payment for the purchase of shares in or the payment of money
to any regularly chartered credit union.
(6) Payment to a charitable organization or a federally chartered
veterans' organization that is approved by the board.
(7) Payments to a recognized retiree organization.
(8) Payment for the purchase of United States savings bonds.
(9) The payment of personal income taxes to the government of the
United States or the State of California.
(10) Payment for any retiree benefit programs available through
the recognized retiree organization. The board may require that this
payment be to a single party designated by the recognized retiree
organization, either to itself or to a third-party administrator.
(b) Each month the order shall be drawn in favor of the insurer,
institution, credit union, organization, or government named in the
written authorization for an amount equal to the deductions
authorized in subdivision (a) and made during the month.
(c) The board may charge a reasonable fee for the making of the
deductions and payments.
SEC. 2. Section 31471.5 is added to the Government Code, to read:
31471.5. "Recognized retiree organization" means an organization
in which a majority of the members of the organization are retired
members of the system and which the board, upon request, has approved
recognition.
SEC. 3. Section 31520.5 of the Government Code is amended to read:
31520.5. (a) Notwithstanding Section 31520.1, in any county
subject to Articles 6.8 (commencing with Section 31639) and 7.5
(commencing with Section 31662), the board of retirement may, by
majority vote, appoint, from a list of nominees submitted by a
recognized retiree organization, an alternate retired member to the
office of the eighth member, who shall serve until the expiration of
the current term of the current eighth member. Thereafter, the
alternate retired member shall be elected separately by the retired
members of the association in the same manner and at the same time as
the eighth member is elected.
(b) The term of office of the alternate retired member shall run
concurrently with the term of office of the eighth member. The
alternate retired member shall vote as a member of the board only in
the event the eighth member is absent from a board meeting for any
cause. If there is a vacancy with respect to the eighth member, the
alternate retired member shall fill that vacancy for the remainder of
the eighth member's term of office.
(c) Except as otherwise provided in this section, the alternate
retired member shall be entitled to the same rights and privileges
and shall have the same responsibilities and access to closed
sessions as the eighth member.
(d) The alternate retired member may hold positions on committees
of the board independent of the eighth member and may participate in
the deliberations of the board or any of its committees to which the
alternate retired member has been appointed whether or not the eighth
member is present.
(e) The alternate retired member shall be entitled to the same
compensation as the eighth member for attending a meeting, pursuant
to Sections 31521 and 31521.1, whether or not the eighth member is in
attendance at those meetings.
(f) (1) If this section is made applicable in any county, by the
appointment of an alternate eighth member, the alternate seventh
member shall not sit and act for the eighth member, except as
described in paragraph (2).
(2) If both the eighth member and the alternate retired member are
not attending a meeting, the alternate seventh member may sit and
act for the eighth member as described in Section 31520.1.
SEC. 4. Section 31592.5 of the Government Code is amended to read:
31592.5. The board shall provide to any recognized retiree
organization reasonable advance notice of any proposed changes to the
retirement benefits offered by the system or the use or uses of
excess funds of the retirement system. The organization shall have a
reasonable opportunity to comment prior to any formal action by the
board on the proposed changes.
SEC. 5. Section 31592.6 is added to the Government Code, to read:
31592.6. In order for a recognized retiree organization to
fulfill its obligations to the retired members of the system and to
communicate with them, upon the organization's request the board
shall cooperate with and assist the organization in distributing
communications regarding membership in and retiree benefit programs
available through the organization to all or a portion of those
retired members. The content of those communications shall be wholly
the responsibility of the recognized retiree organization, and the
board shall not have any liability for the content of those
communications. Cooperation and assistance in distribution may
consist of combined or separate mailings. The board may charge a
reasonable fee for those mailings, which may not exceed the actual
costs to the system, including staff time for preparation of the
mailings.
SEC. 6. Section 31693 of the Government Code is amended to read:
31693. In any county, district, or county retirement system
providing benefits under this article, the county, district, or
county retirement system shall provide any recognized retiree
organization, as defined in Section 31471.5, that is recognized by
the retirement system of the county or district as representing the
retired employees of that county or district reasonable advance
notice of any proposed changes in employee health care benefits
affecting those retired employees and the organization shall have a
reasonable opportunity to comment prior to any formal action by the
county, district, or county retirement system on the proposed
changes. As used in this section, "proposed changes" means
significant changes affecting health care benefits, including, but
not limited to, changes in health care carriers, plan design, and
premiums.
