Bill Text: CA SB992 | 2011-2012 | Regular Session | Introduced

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Bill Title: Public employees' retirement: employer contributions.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2012-02-16 - Referred to Com. on RLS. [SB992 Detail]

Download: California-2011-SB992-Introduced.html

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BILL NUMBER: SB 992	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Public Employment and Retirement
(Senators Negrete McLeod (Chair), Gaines, Padilla, Vargas, and
Walters)

                        FEBRUARY 1, 2012

   An act to amend Section 20814 of the Government Code, relating to
public employees' retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 992, as introduced, Committee on Public Employment and
Retirement. Public employees' retirement: employer contributions.
   The Public Employees' Retirement Law (PERL) creates the Public
Employees' Retirement System (PERS), which provides a defined benefit
to its members based on age at retirement, service credit, and final
compensation. PERL vests the Board of Administration of PERS with
management and control of the system. PERL requires the state's
contribution to PERS to be adjusted from time to time in the annual
Budget Act by requiring the Governor, as part of the proposed budget,
to include contribution rates adopted by the board for the liability
for benefits on account of state employees and would require the
Legislature to adopt the board's contribution rates and authorize the
appropriation in the Budget Act. Existing law also authorizes the
board, in its discretion, to adopt new quarterly employer
contribution rates for future contributions for the state plans to
reflect changes in employee retirement contributions, benefits, or
pension plan design contained in a memorandum of understanding, or
similar changes for unrepresented employees, when those changes go
into effect after the board has adopted its most recent annual
employer contribution rates.
   This bill would make technical, nonsubstantive changes to these
provisions.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 20814 of the Government Code is amended to
read:
   20814.  (a) Notwithstanding any other  provision of
 law, the state's contribution under this chapter shall be
adjusted from time to time in the annual Budget Act according to the
following method: as part of the proposed budget, the Governor shall
include the contribution rates adopted by the board for the liability
of benefits on account of employees of the state. The Legislature
shall adopt the board's contribution rates and authorize the
appropriation in the Budget Act.
   (b) In the event a memorandum of understanding goes into effect
pursuant to the Ralph C. Dills Act (Chapter 10.3 (commencing with
Section 3512) of Division 4 of Title 1) that was not previously
considered by the board in adopting its most recent annual employer
contribution rates and that memorandum of understanding contains a
change in employee retirement contributions, benefits, or pension
plan design, including a change that alters a state employee's
retirement contributions, or there is a change in unrepresented
employees' retirement contributions, benefits, or pension plan design
to be consistent with those of related classifications and groups of
represented employees, the board may, in its discretion, adopt new
quarterly employer contribution rates for future contributions for
the state plans to reflect these changes. If the board adopts new
rates for the state plans to reflect a change in employee retirement
contributions, benefits, or pension plan design, the Director of
Finance shall reduce or increase the percentage levels of the state's
retirement contribution to reflect the new rates. Nothing in this
section shall require the board to take action as described 
herein   in this subdivision  unless the board
determines, in good faith, that the action described  herein
  in this subdivision  is consistent with the
fiduciary responsibilities of the board described in Section 17 of
Article XVI of the California Constitution.
   (c) The employer contribution rates for all other public employers
under this system shall be determined on an annual basis by the
actuary and shall be effective on the July 1 following notice of a
change in rate.