Bill Text: CA SB277 | 2013-2014 | Regular Session | Amended

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Bill Title: State Peace Officers' and Firefighters' Defined

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2013-10-11 - Chaptered by Secretary of State. Chapter 755, Statutes of 2013. [SB277 Detail]

Download: California-2013-SB277-Amended.html

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BILL NUMBER: SB 277	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 21, 2013

INTRODUCED BY   Senator Beall

                        FEBRUARY 14, 2013

   An act  to add Section 22960.4 to, and  to amend
Sections 22960.99, 22970.58, and 22970.855 of,  to add Section
22960.4 to, and to repeal Section 22960.100 of,  the Government
Code, relating to public employees' retirement, and making an
appropriation therefor.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 277, as amended, Beall. State Peace Officers' and Firefighters'
Defined Contribution Plan.
   Existing law establishes the State Peace Officers' and
Firefighters' Defined Contribution Plan for state peace
officer/firefighter members in State Bargaining Unit 6, the
California Correctional Peace Officers Association, and others as
specified.  Under existing law, the plan applies to state peace
officer and firefighter members in State Bargaining Unit 8 who have
become subject by a memorandum of understanding. Existing law
authorizes the plan to be provided to state peace officers or
firefighters who meet stated criteria, if the Department of Human
Resources has approved their inclusion for coverage.  The moneys
in the State Peace Officers' and Firefighters' Defined Contribution
Plan Fund are continuously appropriated. Existing law entitles a
participant in the plan to a lump-sum distribution of the balance of
his or her account, or installment payments if he or she is entitled
to $5,000 or more, upon separation from all service for the employer
for any reason other than death, disability, or retirement.
   Existing law requires the Board of Administration of the Public
Employees' Retirement System to administer the Supplemental
Contributions Program and requires contributions by eligible
employees, as defined, participating in the program to be deposited
in the Supplemental Contributions Program Fund, a continuously
appropriated fund.
   This bill would require that contributions to the State Peace
Officers' and Firefighters' Defined Contribution Plan cease, prohibit
new members from participating in the plan, and would require that
the plan be terminated as prescribed.  The bill would repeal
those provisions   extending plan coverage to State
Bargaining Unit 8 and certain state peace officers or firefighters.
 The bill would require all moneys in the State Peace Officers'
and Firefighters' Defined Contribution Plan Fund to be distributed,
as specified, including requiring that, if not elected otherwise,
amounts that become payable from the fund be rolled over under
existing federal law to the Supplemental Contributions Program. The
bill would provide for rollover contributions to separate rollover
contribution accounts in the Supplemental Contributions Program, as
specified, and would provide for the distribution of amounts held in
the participant's account. By changing the circumstances under which
moneys in the State Peace Officers' and Firefighters' Defined
Contribution Fund would be distributed, and by providing for an
increase in contributions to the Supplemental Contributions Program,
this bill would make an appropriation.
   Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 22960.4 is added to the Government Code, to
read:
   22960.4.  (a) The Legislature finds and declares that an agreement
between the exclusive representative of state peace officer and
firefighter members in  State  Bargaining Unit 6 and the
employer has eliminated the employer contributions to the plan
provided in Section 22960.60.
   (b) The following shall occur:
   (1) All contributions to the plan shall cease.
   (2) New participants shall be prohibited from participating in the
plan.
   (3) The plan shall be terminated on the later of January 1, 2014,
or upon obtaining appropriate approvals from the Internal Revenue
Service, including a favorable determination letter on plan
termination from the Internal Revenue Service.
   (4) Subject to paragraph (3), all moneys in the fund shall be
distributed in accordance with this part and federal law. If not
elected otherwise, amounts that become payable from the fund under
this section shall be rolled over under Section 401(a)(31) of Title
26 of the United States Code to the Supplemental Contributions
Program established in accordance with Section 22970.
  SEC. 2.  Section 22960.99 of the Government Code is amended to
read:
   22960.99.  (a) The plan's obligations to a participant,
beneficiary, or nonparticipant spouse who has applied for a lump-sum
benefit cease upon distribution of the lump-sum benefit.
   (1) Deposit in the United States mail of a warrant drawn in favor
of the participant, beneficiary, or nonparticipant spouse and
addressed to the latest address on file for that person constitutes
distribution of the benefit.
   (2) Deposit in the United States mail of a notice that the
requested electronic funds transfer has been made as directed by the
participant, beneficiary, or nonparticipant spouse constitutes
distribution of the benefit.
   (3) If the participant, beneficiary, or nonparticipant spouse has
elected on a form prescribed by the board to transfer all or a
specific portion of the account that is eligible for a direct
trustee-to-trustee transfer under Section 401(a)(31) of Title 26 of
the United States Code, deposit in the United States mail of a notice
that the requested transfer has been made constitutes distribution
of the benefit.
   (b) The plan's obligations to a participant, beneficiary, or
nonparticipant spouse who elected to receive a benefit in the form of
installment payments or an annuity cease upon distribution of the
final payment.
   (1) Deposit in the United States mail of a warrant drawn in favor
of the participant, beneficiary, or nonparticipant spouse and
addressed to the latest address on file for that person constitutes
distribution of the benefit.
   (2) Deposit in the United States mail of a notice that the
requested electronic funds transfer has been made as directed by the
participant, beneficiary, or nonparticipant spouse constitutes
distribution of the benefit.
   (c) Distribution under paragraph (1), (2), or (3) of subdivision
(a) or paragraph (1) or (2) of subdivision (b) pursuant to the board'
s determination in good faith of the existence, identity, or other
facts relating to entitlement of persons constitutes a complete
discharge and release of the board, system, and plan from liability
for payments.
   (d) Distribution under paragraph (4) of subdivision (b) of Section
22960.4 constitutes a complete discharge and release of the board,
system, and plan from liability for payments, and the board and
system shall not be treated as fiduciaries with respect to a transfer
of funds from the plan to the Supplemental Contributions Program in
accordance with Section 22970.
   SEC. 3.    Section 22960.100 of the  
Government Code   is repealed.  
   22960.100.  (a) Notwithstanding any other provision of law, the
plan established by this part shall also apply to state peace officer
and firefighter members in State Bargaining Unit 8 who have become
subject to this part by a memorandum of understanding, as provided in
Section 3517.5.
   (b) The plan may also be provided to state peace officers or
firefighters who are either excluded from the definition of state
employee in subdivision (c) of Section 3513, or are nonelected
officers or employees of the executive branch of government and are
not members of the civil service, and who supervise employees in a
bargaining unit that is subject to this part, provided that the
Department of Human Resources has approved their inclusion for
coverage under this part. 
   SEC. 3.   SEC. 4.   Section 22970.58 of
the Government Code is amended to read:
   22970.58.  The board may amend the plan to permit a participant to
transfer funds from an eligible retirement plan into this plan to
the extent that the transfers are allowed under applicable federal
and state laws, and pursuant to the terms and conditions established
by the board. The plan may accept rollover contributions made in
accordance with paragraph (4) of subdivision (b) of Section 22960.4,
if the board  amends the plan to establish  
establishes  a separate rollover contribution account for each
participant or beneficiary who makes such rollover contributions for
the purpose of holding those contributions.
   SEC. 4.   SEC. 5.   Section 22970.855 of
the Government Code is amended to read:
   22970.855.  The board may amend the plan to permit a participant
to withdraw some or all of his or her after-tax contributions without
requiring the participant to terminate from the plan to the extent
that this in-service distribution is allowed under applicable federal
and state laws, and pursuant to the terms and conditions established
by the board. A participant may apply for a distribution of amounts
held in the participant's separate rollover contribution account
established pursuant to Section 22970.58 at any time before that
participant's termination of employment, to the extent that an
in-service distribution is allowed under applicable federal and state
law, and pursuant to the terms and conditions established by the
board.