Bill Text: CA SB660 | 2023-2024 | Regular Session | Amended
Bill Title: Public employees’ retirement systems: California Public Retirement System Agency Cost and Liability Panel.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2024-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB660 Detail]
Download: California-2023-SB660-Amended.html
|
Amended
IN
Senate
March 21, 2023 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Senate Bill
No. 660
| Introduced by Senator Alvarado-Gil |
February 16, 2023 |
An act to amend Section 20790 of add Section 7514.9 to the Government Code, relating to public employees’ retirement.
LEGISLATIVE COUNSEL'S DIGEST
SB 660, as amended, Alvarado-Gil.
Public Employees’ Retirement System. Public employees’ retirement systems: California Public Retirement System Agency Cost and Liability Panel.
Existing law, the Public Employees’ Retirement Law (PERL), establishes the Public Employees’ Retirement System (PERS), which provides a defined benefit to members of the system, based on final compensation, credited service, and age at retirement, subject to certain variations. Existing law prescribes various definitions of final compensation based on employment classification, bargaining unit, date of hire, and date of retirement, among other things. PERL authorizes public agencies to join PERS and prescribes the rights and duties of agencies participating in PERS.
Existing law authorizes PERS to enter into agreements with specified public retirement
systems to establish reciprocity between PERS and those public retirement systems. Existing law provides that an agency that has entered into an agreement establishing reciprocity with PERS is deemed to have obtained the same rights and limitations that apply to all other public agencies that have entered into similar reciprocal agreements with PERS.
This bill would establish the California Public Retirement System Agency Cost and Liability Panel, located in the Controller’s office, with members as defined. The bill would assign responsibilities to the panel related to retirement benefit costs, including determining how costs and unfunded liability are apportioned to a public agency when a member changes employers within the same public retirement system or when a member concurrently retires with 2 or more retirement systems that have entered into reciprocity
agreements. The bill would require the panel to meet no later than March 31, 2024, and quarterly beginning on April 1, 2024, and to submit a report to the Legislature, no later than December 31, 2024, providing information regarding the financial impact a public agency assumes when an employee transfers to another public agency within the same retirement system or when an employee transfers to a public agency in a reciprocal retirement system and concurrently retires under 2 or more systems.
The Public Employees’ Retirement Law (PERL) creates the Public Employees’ Retirement System (PERS) for the purpose of providing pensions and benefits to public employees and their beneficiaries and prescribes the rights and duties of employers participating in the system. PERL authorizes public agencies to join PERS pursuant to contract and defines “employer” for purposes of contributions by
employers that are contract members of the system.
This bill would make nonsubstantive changes to that definition.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 7514.9 is added to the Government Code, to read:7514.9.
(a) There is hereby enacted the California Public Retirement System Agency Cost and Liability Panel. The panel shall provide impartial and independent information on the pension costs and liability each participating employer assumes by participating in a public retirement system.(b) The responsibilities of the California Public Retirement System Agency Cost and Liability Panel shall include, but are not limited to:
(1) Determining the overall retirement benefit costs a public agency incurs by participating in a public retirement system.
(2) Determining how retirement benefit costs are apportioned between public
agencies when a member of a public retirement system transfers to a different public agency within the same public retirement system.
(3) Determining how retirement benefit costs are apportioned between reciprocal public retirement systems when a member concurrently retires under two or more public retirement systems.
(4) Determining how a public agency’s unfunded pension liability is impacted when a member of a public retirement system transfers to a different public agency within the same public retirement system and receives a salary increase.
(5) Determining how a public agency’s unfunded pension liability is impacted when a member of a public retirement system transfers to a public agency that provides retirement benefits through a reciprocal public retirement system.
(6) Determining how a public agency’s unfunded pension liability is impacted when a member concurrently retires under two or more public retirement systems.
(7) Determining when an unfunded pension liability manifests and how the number of years a member works for one or more public agencies impacts each public agency’s unfunded pension liability.
(8) Replying to policy questions from public retirement systems and public agencies who contract to provide their employees retirement benefits through a public retirement system.
(9) Providing comment upon request by public agencies.
(c) The California Public Retirement System Agency Cost and Liability Panel shall consist of 10 members, and be
appointed as follows:
(1) Two appointees of the Governor.
(2) An appointee by the Speaker of the Assembly.
(3) An appointee by the Senate Committee on Rules.
(4) An appointee from the Teachers’ Retirement Board.
(5) An appointee from the Board of Administration of the Public Employees’ Retirement System.
(6) An appointee from the State Association of County Retirement Systems.
(7) An appointee from the Board of Regents of the University of California.
(8) A representative from a public agency that
has fewer than 100 employees that contracts with the Public Employees’ Retirement System for retirement benefits for their employees.
(9) A representative from a public agency that has more than 100 employees that contracts with the Public Employees’ Retirement System for retirement benefits for their employees.
(d) The California Public Retirement System Agency Cost and Liability Panel shall be located in the Controller’s office, which shall provide support staff to the panel.
(e) The opinions of the California Public Retirement System Agency Cost and Liability Panel are nonbinding and advisory only. The opinions of the panel shall not, in any case, be used as the basis for litigation.
(f) A member of the California Public Retirement System Agency Cost
and Liability Panel shall receive reimbursement for expenses that shall be paid by the authority that appointed the member.
(g) The first meeting of the California Public Retirement System Agency Cost and Liability Panel shall occur no later than March 31, 2024. The panel shall meet quarterly beginning on April 1, 2024.
(h) The California Public Retirement System Agency Cost and Liability Panel shall submit a written report of its findings and recommendations to the Legislature, no later than December 31, 2024, providing information regarding the financial impact a public agency assumes when an employee transfers to another public agency within the same retirement system and when an employee transfers to a public agency in a reciprocal retirement system and concurrently retires under two or more systems. The report shall be submitted in compliance with Section
9795.
Except as provided in Section 20815, “employer” for purposes of this chapter means a contracting agency, except a contracting agency on and after the effective date of the contracting agency’s election to be subject to an amendment of this part that provides that it is inapplicable to a contracting agency until the agency elects to be subject thereto.
