Bill Text: CA SB521 | 2011-2012 | Regular Session | Amended

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Bill Title: Public employees' benefits: postemployment health care.

Spectrum: Partisan Bill (Republican 7-0)

Status: (Introduced - Dead) 2012-01-31 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB521 Detail]

Download: California-2011-SB521-Amended.html

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BILL NUMBER: SB 521	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 21, 2011

INTRODUCED BY   Senator Walters
    (   Coauthor:   Senator   Runner
  ) 
    (   Coauthors:   Assembly Members 
 Grove,   Harkey,   Jeffries,  
Mansoor,   and Silva   ) 

                        FEBRUARY 17, 2011

    An act to amend Section 22000 of the Government Code,
relating to public employees' retirement.   An act to
add Section 22944.4 to the Government Code, relating to public
employees' benefits, and m   aking an appropriation
therefor. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 521, as amended, Walters. Public employees' 
retirement: social security.   benefits: postemployment
health care.  
   The Public Employees' Medical and Hospital Care Act (PEMHCA)
permits a public employer authorized by the Board of Administration
of the Public Employees' Retirement System to elect to participate in
the prefunding of postemployment health care benefits and other
postemployment benefits for annuitants. Under PEMHCA, the governing
body of a participating employer is required to contract with the
board regarding the terms and conditions of that employer's
participation in the prefunding plan. PEMHCA establishes the
Annuitants' Health Care Coverage Fund in the State Treasury, as a
trust fund and a retirement fund, which is continuously appropriated
to the board for expenditure for the prefunding of health care
coverage for annuitants.  
   This bill would require the board to determine the actuarially
required contributions necessary to ensure that postemployment health
care benefits provided under PEMHCA are fully funded. The bill would
require an employee first hired on or after January 1, 2012, and his
or her employer, to each pay 50% of those actuarially required
contributions, to be deposited into the Annuitants' Health Care
Coverage Fund. By creating a new source of revenue for deposit into a
continuously appropriated fund, the bill would make an
appropriation.  
   The Board of Administration of the Public Employees' Retirement
system is required, upon application by a public agency, as defined,
to execute an agreement with the federal government for the coverage
of the public employees of the agency under the federal Social
Security Act in conformity with specified regulations. 

   Existing law expresses the Legislature's policy that protection
afforded to employees in positions covered by a public retirement
system on the date that an agreement for coverage for those employees
under the federal Social Security Act is made applicable to the
service performed, or to the benefits received, under the retirement
system and that those protections are not impaired as a result of the
agreement or as a result of a legislative enactment made in
anticipation of the agreement.  
   This bill would make technical, nonsubstantive changes to that
provision. 
   Vote: majority. Appropriation:  no   yes
 . Fiscal committee:  no   yes  .
State-mandated local program: no.


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

   SECTION 1.    Section 22944.4 is added to the 
 Government Code  , to read:  
   22944.4.  (a) The board shall determine the actuarially required
contributions necessary to ensure that postemployment health care
benefits provided under this part are fully funded.
   (b) Notwithstanding any other law, an employee first hired on or
after January 1, 2012, and his or her employer, shall each pay 50
percent of the actuarially required contributions determined pursuant
to subdivision (a). The contributions of both the employee and the
employer shall be deposited into the Annuitants' Health Care Coverage
Fund.
   (c) The contributions of each employee shall be withheld from the
monthly salary payable to him or her.
   (d) Notwithstanding any other law, an employee shall not have a
vested property right to any employer contributions under this
section before the date of retirement for service or disability, and
the employer contributions shall not be refundable, under any
circumstances, to the employee.
   (e) Upon a separation before the date of retirement for service or
disability, the employee may withdraw any contributions he or she
paid pursuant to this section.  
  SECTION 1.    Section 22000 of the Government Code
is amended to read:
   22000.  It is the policy of the Legislature that the protection
afforded to employees in positions covered by a retirement system on
the date an agreement under this part is made applicable to service
performed in those positions, or to periodic benefits received under
that retirement system, will not be impaired as a result of making
the agreement or as a result of a legislative enactment made in
anticipation of the agreement.