AB 399 — Public employee benefits.

Summary

(1) The Public Employees' Retirement Law (PERL) permits a member of the Public Employees' Retirement System (PERS) with less than 3 years of service who enters employment as a member of another public retirement system supported, in whole or in part, by state funds, within 6 months of leaving state service to elect to leave accumulated contributions on deposit in the retirement fund. The law provides that failure to make an election to withdraw accumulated contributions shall be deemed an election to leave accumulated contributions on deposit in the retirement fund. This bill would require that a member who is permanently separated from all service covered by PERS, who is not in specified public service, and 70 years of age, be provided with an election to withdraw contributions or, if vested, an election to either apply for service retirement or withdraw contributions. The bill would require that failure to apply for service retirement or to make an election to withdraw contributions within 90 days be deemed an election to withdraw contributions. The bill would specify the method of distribution of contributions for members who cannot be located with reasonable diligence. The bill also would make technical changes. (2) The State Teachers' Retirement System, the Public Employees' Retirement System, and the Judges' Retirement System and the Judges Retirement System II provide pension benefits based in part upon credited service. The Public Employees' Retirement Law provides that credit for service generally is accrued based upon service rendered and compensated in a fiscal year, and that time during which a member is absent without compensation is not allowed for computing service. The State Teachers' Retirement Law provides that a member's creditable service is calculated in relation to his or her creditable compensation. The Judges' Retirement System II Law provides that service means the period of time that a judge received a salary and made contributions to the system by reason of holding office as a judge, as specified. Pursuant to various executive orders, state employees have been furloughed without compensation. Existing law, in effect until July 1, 2010, permits a judge or justice to elect to waive irrevocably a certain percentage of salary, and a judge or justice who does so is not obligated to appear for work on a day a court is closed pursuant to specified authority. That law prohibits this waiver from being deemed a reduction in salary or service for the purpose of providing retirement benefits, among others. This bill would require, for members of the State Teachers' Retirement System, that the calculations of a retirement allowance for a state employee subject to mandatory furloughs include earnings, contributions, and compensation earnable that would have been reported had the employee not been subject to mandatory furloughs, and would require that the employer pay the cost of the increased service credit that results from these inclusions. The bill would also require that, for all retirement purposes, credit for service and compensation earnable for members of the Public Employees' Retirement System employed by the state that are subject to mandatory furloughs be based on the amount that would have been credited had the employee not been subject to mandatory furloughs. The bill would define mandatory furloughs in these regards. The bill would further require, for the Judges' Retirement System and the Judges' Retirement System II, that calculations of retirement benefits and Extended Service Incentive Program benefits for any judge who voluntarily waives salary, as described above, include salary and contributions that would have been paid had the judge not done so, and that the state pay costs that result from the increased benefits and monetary credits.

Bill Text

• Chaptered 10/11/09 - Chaptered Current pdf October 11, 2009
• Enrolled 09/16/09 - Enrolled pdf September 16, 2009
• Amended 08/27/09 - Amended Senate pdf August 27, 2009
• Amended 06/29/09 - Amended Senate pdf June 29, 2009
• Amended 06/17/09 - Amended Senate pdf June 17, 2009
• Amended 05/26/09 - Amended Senate pdf May 26, 2009
• Introduced 02/23/09 - Introduced pdf February 23, 2009
• AB399 View text html

Action History

1. October 11, 2009

   Chaptered by Secretary of State - Chapter 240, Statutes of 2009.

2. October 11, 2009

   Approved by the Governor.

3. September 25, 2009

   Enrolled and to the Governor at 5 p.m.

4. September 10, 2009

   Senate amendments concurred in. To enrollment. (Ayes 57. Noes 22. Page 3264.)

5. September 09, 2009

   In Assembly. Concurrence in Senate amendments pending.

6. September 08, 2009

   Read third time, passed, and to Assembly. (Ayes 33. Noes 6. Page 2291.)

7. September 04, 2009

   Ordered to third reading.

8. September 04, 2009

   From committee: Do pass. (Ayes 7. Noes 0.) (September 4).

9. September 04, 2009

   From committee: Be re-referred to Com. on P.E. & R. pursuant to Senate Rule 29.10. (Ayes 5. Noes 0.) Re-referred to Com. on P.E. & R.

10. September 02, 2009

    Re-referred to Com. on RLS. pursuant to Senate Rule 29.10.

11. August 31, 2009

    Read second time. To third reading.

12. August 27, 2009

    Read third time, amended. To second reading.

13. June 30, 2009

    Read second time. To third reading.

14. June 29, 2009

    Read third time, amended. To second reading.

15. June 29, 2009

    Action rescinded whereby the bill was read third time, urgency clause adopted, passed, and to Assembly.

16. June 24, 2009

    In Senate. Held at Desk.

17. June 24, 2009

    Ordered returned to Senate.

18. June 22, 2009

    In Assembly. Concurrence in Senate amendments pending. May be considered on or after June 24 pursuant to Assembly Rule 77.

19. June 22, 2009

    Read third time. Urgency clause adopted. Passed and to Assembly. (Ayes 40. Noes 0. Page 1375.)

20. June 17, 2009

    Read second time, amended, and to third reading.

21. June 16, 2009

    From committee: Be placed on second reading file pursuant to Senate Rule 28.8 and be amended.

22. June 08, 2009

    From committee: Do pass, and re-refer to Com. on APPR. Re-referred. (Ayes 7. Noes 0.) (June 8).

23. May 26, 2009

    From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on P.E. & R.

24. May 14, 2009

    Referred to Com. on P.E. & R.

25. May 04, 2009

    In Senate. Read first time. To Com. on RLS. for assignment.

26. May 04, 2009

    Read third time, passed, and to Senate. (Ayes 79. Noes 0. Page 1240.)

27. April 27, 2009

    Read second time. To Consent Calendar.

28. April 23, 2009

    From committee: Do pass. To Consent Calendar. (April 22).

29. April 01, 2009

    From committee: Do pass, and re-refer to Com. on APPR. with recommendation: To Consent Calendar. Re-referred. (Ayes 6. Noes 0.) (April 1).

30. March 09, 2009

    Referred to Com. on P.E.,R. & S.S.

31. February 24, 2009

    From printer. May be heard in committee March 26.

32. February 23, 2009

    Read first time. To print.

Sponsors

• Brownley · Primary

Votes

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