Bill Text: CA SB528 | 2011-2012 | Regular Session | Amended
Bill Title: Public Employees' Retirement System: Board of
Spectrum: Partisan Bill (Republican 6-0)
Status: (Introduced - Dead) 2012-01-31 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB528 Detail]
Download: California-2011-SB528-Amended.html
BILL NUMBER: SB 528 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 22, 2011
INTRODUCED BY Senator Walters
( Coauthor: Senator Runner
)
( Coauthors: Assembly Members
Garrick, Grove, Harkey, and
Mansoor )
FEBRUARY 17, 2011
An act to amend Section 22960.60 of, and to repeal
Section 22960.61 of, 20090 of the Government
Code, relating to public employees' retirement , and calling a
special election to be consolidated with a statewide election, to
take effect immediately as an act calling an election .
LEGISLATIVE COUNSEL'S DIGEST
SB 528, as amended, Walters. Public employees'
retirement: defined contribution plan. Public
Employees' Retirement System: Board of Administration.
(1) The Public Employees' Retirement Law requires the Board of
Administration of the Public Employees' Retirement System to
administer the Public Employees' Retirement Law. Under that law,
state employees and employees of local agencies that contract with
the Board of Administration for retirement benefits are within the
membership of the retirement system. That law, as in effect on July
1, 1991, provides that the membership of the Board of Administration
shall include 6 elected members, including 2 members elected from the
membership of the retirement system by the members of the retirement
system, one member elected from state membership by active state
members, 2 members elected by and from active local members, and one
member elected by and from the retired members of the retirement
system.
This bill instead would provide for the appointment of those 6
board members by the Governor based on their demonstrated expertise
in the financial and actuarial fields.
(2) The California Constitution prohibits the number, terms, and
method of selection or removal of members of the retirement board of
a public pension or retirement system, which includes in its
composition elected employee members, from being changed, amended, or
modified by the Legislature from those that were required by law or
otherwise in effect on July 1, 1991, unless the change, amendment, or
modification enacted by the Legislature is ratified by a majority
vote of the electors of the jurisdiction in which the participants of
the system are or were, prior to retirement, employed.
This bill would call a special election to be consolidated with a
statewide election to be held in 2011. The bill would condition the
provisions of the bill upon voter approval, and would require the
Secretary of State to submit the provisions of the bill to the voters
for approval at the consolidated statewide election. Because local
election officials would be required to undertake additional duties
to place this bill on the ballot at the consolidated election, this
bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
This bill would declare that it is to take effect immediately as
an act calling an election.
The Public Employees' Retirement Law contains the State Peace
Officers' and Firefighters' Defined Contribution Plan for state peace
officer or firefighter members in State Bargaining Unit 6, the
California Correctional Peace Officers Association, to supplement the
benefits provided under the Public Employees' Retirement System.
Under that plan, employer and employee contributions rates may be
determined by the terms of a memorandum of understanding. Existing
law also requires that the employer pick up the amounts otherwise due
as employee contributions in accordance with federal law.
This bill would instead prohibit employer contributions to the
account of a plan participant on or after January 1, 2012. The bill
would also delete the requirement that the employer pick up the
amounts otherwise due as employee contributions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 20090 of the
Government Code is amended to read:
20090. The Board of Administration of the Public Employees'
Retirement System is continued in existence. It consists of:
(a) One member of the State Personnel Board, selected by and
serving at the pleasure of the State Personnel Board.
(b) The Director of the Department of Personnel Administration.
(c) The Controller.
(d) The State Treasurer.
(e) An official of a life insurer and an elected official of a
contracting agency, appointed by the Governor.
(f) One person representing the public, appointed jointly by the
Speaker of the Assembly and the Senate Committee on Rules.
(g) Six members elected under the supervision of the
board as follows: appointed by the Governor, selected
and approved for appointment on the basis of their demonstrated
expertise in the financial and actuarial fields.
(1) Two members elected by the members of this system from the
membership thereof.
(2) A member elected by the active state members of this system
from the state membership thereof.
(3) A member elected by and from the active local members of this
system who are employees of a school district or a county
superintendent of schools.
(4) A member elected by and from the active local members of this
system other than those who are employees of a school district or a
county superintendent of schools.
(5) A member elected by and from the retired members of this
system.
SEC. 2. (a) Section 1 of this act, amending
Section 20090 of the Government Code, shall become effective only
upon approval by the voters at a statewide election.
(b) A special statewide election is hereby called, to be held
throughout the state on the date of a statewide election to be held
in 2011, for approval by the voters of Section 1 of this act. The
special statewide election shall be consolidated with the statewide
election to be held in 2011. The consolidated elections shall be held
and conducted in all aspects as if there were only one election, and
only one form of ballot shall be used.
(c) Notwithstanding Section 9040 of the Elections Code, or any
other provision of law, the Secretary of State shall, pursuant to
subdivision (c) of Section 10 of Article II of the California
Constitution, submit Section 1 of this act to the voters for approval
at the consolidated statewide election to be held in 2011.
SEC. 3. If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.
SEC. 4. This act calls an election within the
meaning of Article IV of the Constitution and shall go into immediate
effect.
SECTION 1. Section 22960.60 of the Government
Code is amended to read:
22960.60. (a) Employee contribution rates may be determined by
the terms of the memorandum of understanding applicable to each plan
participant in accordance with the requirements of this section.
(b) Through the Department of Personnel Administration, the
employer shall provide the board with a true and correct copy of each
memorandum of understanding applicable to plan participants. The
board may prescribe procedures for the orderly transmittal and
receipt of these documents.
(c) Except as provided in subdivision (e), after receipt of an
applicable memorandum of understanding that sets forth an employee
contribution rate, the board shall, in accordance with Section
22960.36, amend the plan to provide for the employee contribution
rate set forth in the memorandum of understanding.
(d) The employee contribution rate for state peace officers and
firefighters who have become subject to this part pursuant to the
provisions of subdivision (b) of Section 22960 shall be the
contribution rate or rates set forth in the memorandum of
understanding for state peace officers and firefighter members in
Bargaining Unit 6.
(e) The board may refuse to amend the plan under this section if,
in the board's considered judgment, the proposed amendment would
violate any applicable provision of Title 26 of the United States
Code.
(f) In the event an MOU expires and no new memorandums of
understanding takes effect, the last memorandums of understanding in
place shall control.
(g) Notwithstanding subdivision (f) and Section 3517.8, on or
after January 1, 2012, the employer shall not contribute any amount
to the account of a participant in the plan.
SEC. 2. Section 22960.61 of the Government Code
is repealed.
