California 2009-2010 Regular Session Status: To Executive

SB 1425 — Public retirement: final compensation: computation: retirees.

Last action — Died on file.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed Assembly
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2009-2010 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

(1) 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 defines "final compensation" for purposes of calculating a member's retirement allowance. The State Teachers' Retirement Law (STRL) and the retirement laws for county employees and city employees also provide for a defined benefit based on age at retirement, service credit, and final compensation. This bill would provide that any change in salary, compensation, or remuneration principally for the purpose of enhancing a member's benefits would not be included in the calculation of a member's final compensation for purposes of determining that member's defined benefit. The bill would generally require the board of each state and local public retirement system to establish, by regulation, accountability provisions that would include an ongoing audit process to ensure that a change in a member's salary, compensation, or remuneration is not made principally for the purpose of enhancing a member's retirement benefits. This bill would revise the definition of "creditable compensation" and would limit the calculation of a member's final compensation to an amount not to exceed the average increase in compensation received within the final compensation period and the 2 preceding years by employees in the same or a related group as that member. This bill would also provide that a person who retires on or after January 1, 2012, may not perform services for any employer covered by a state or local retirement system until that person has been separated from service for a period of at least 180 days. This bill would provide for the implementation of these required changes under the laws that govern PERS and STRL. (2) The Defined Benefit Supplement Program under STRL provides supplemental retirement, disability, final, and termination benefits, payable either in a lump-sum payment or as an annuity, to members receiving benefits under the Defined Benefit Program of the State Teachers' Retirement Plan. This bill would provide that member and employer contributions credited to the Defined Benefit Supplemental Program would include remuneration earnable within a 5-year period in excess of 125% of that member's compensation earnable in the year prior to that 5-year period. This bill would provide, in the case of a member who retires on or after January 1, 2012, and who elects to receive his or her retirement benefit under the Defined Benefit Supplemental Program as a lump-sum payment, that the lump-sum payment would not be payable until 180 days have elapsed following the effective date of the member's retirement. (3) This bill includes Legislative findings expressing the public purpose that would be served by the enactment of this bill. This bill would, except as otherwise specified, provide that its provisions would become operative on July 1, 2011. This bill would further provide that it would only become operative if AB 1987 of the 2009–10 Regular Session is also enacted and takes effect on or before January 1, 2011.

Bill Text

Action History

  1. Died on file.

  2. In Senate. To unfinished business. (Veto)

  3. Vetoed by Governor.

  4. Enrolled. To Governor at 11:30 a.m.

  5. Senate concurs in Assembly amendments. (Ayes 37. Noes 0. Page 5069.) To enrollment.

  6. In Senate.

  7. Read third time. Passed. (Ayes 78. Noes 0. Page 6867.) To Senate.

  8. Read third time. Amended. (Page 6371.) To third reading.

  9. Read second time. To third reading.

  10. (August 16 amended measure version corrected August 18.)

  11. Read second time. Amended. To second reading.

  12. (Heard in committee August 12.)

  13. From committee: Do pass as amended. (Ayes 12. Noes 0.)

  14. Set, first hearing. Referred to APPR. suspense file.

  15. (Heard in committee on June 23.)

  16. From committee: Do pass, but first be re-referred to Com. on APPR. (Ayes 6. Noes 0.) Re-referred to Com. on APPR.

  17. To Com. on P.E.,R. & S.S.

  18. In Assembly. Read first time. Held at Desk.

  19. Read third time. Passed. (Ayes 35. Noes 0. Page 3701.) To Assembly.

  20. Read second time. To third reading.

  21. From committee: Do pass. (Ayes 10. Noes 0. Page 3675.)

  22. (Suspense - for vote only.)

  23. Set for hearing May 27.

  24. Placed on APPR suspense file.

  25. From committee with author's amendments. Read second time. Amended. Re-referred to Com. on APPR.

  26. Set for hearing May 10.

  27. Hearing postponed by committee.

  28. Set for hearing April 26.

  29. From committee: Do pass, but first be re-referred to Com. on APPR. (Ayes 6. Noes 0. Page 3164.) Re-referred to Com. on APPR.

  30. From committee with author's amendments. Read second time. Amended. Re-referred to Com. on P.E. & R.

  31. Set for hearing April 12.

  32. To Com. on P.E. & R.

  33. From print. May be acted upon on or after March 23.

  34. Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

  • Correa · Cosponsor
  • DeSaulnier · Cosponsor
  • Ma · Cosponsor
  • Simitian · Primary

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 3 co-sponsors · 118 not signed on

Sponsors (1)

  • Simitian

Co-sponsors (3)

  • Correa
  • DeSaulnier
  • Ma

Not signed on (118)

118 members have not signed on to this bill.

Show all 118 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

W/O REF. TO FILE SB1425 Simitian

Passed 38 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 35002
Democratic 2000
Republican 1000
Total 38002
% of votes cast 95%0%0%5%
How each member voted (40)
Member Party Vote
Yee — Yea
Cedillo — Yea
Cogdill — Yea
Corbett — Yea
Ashburn — Yea
Blakeslee — Yea
Wyland — Yea
Lowenthal — Yea
Negrete — Yea
Runner — Yea
Florez — Yea
Ducheny — Yea
Hancock — Yea
Hollingsworth — Yea
Huff — Yea
Leno — Yea
Dutton — Yea
McLeod — Yea
Oropeza — Not Voting
Pavley — Yea
Price — Yea
Simitian — Yea
Steinberg — Yea
Wiggins — Not Voting
Wright — Yea
Aanestad — Yea
Alquist — Yea
Harman — Yea
Kehoe — Yea
Liu — Yea
Romero — Yea
Walters — Yea
Wolk — Yea
Emmerson — Yea
Correa — Yea
DeSaulnier — Yea
Denham — Yea
Calderon, Lisa Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Yea

Official roll call →

SB 1425 Simitian Senate Third Reading By TORRICO

Passed 90 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 84000
Democratic 3000
Republican 3000
Total 90000
% of votes cast 100%0%0%0%
How each member voted (90)
Member Party Vote
Hagman — Yea
Carter — Yea
Chesbro — Yea
Conway — Yea
Cook — Yea
Coto — Yea
Bill — Yea
Tom — Yea
Feuer — Yea
Fuentes — Yea
Charles — Yea
Furutani — Yea
Galgiani — Yea
Gilmore — Yea
Hall — Yea
Harkey — Yea
De — Yea
La — Yea
Torre — Yea
De — Yea
Leon — Yea
Hayashi — Yea
Fletcher — Yea
Fong — Yea
Bonnie — Yea
Lowenthal — Yea
V. — Yea
Manuel — Yea
Ammiano — Yea
Bass — Yea
Beall — Yea
Davis — Yea
Hernandez — Yea
Hill — Yea
Huffman — Yea
Knight — Yea
Lieu — Yea
Ma — Yea
Mendoza — Yea
Monning — Yea
Nava — Yea
Perez — Yea
Portantino — Yea
Salas — Yea
Saldana — Yea
Audra — Yea
John — Yea
A. — Yea
Perez — Yea
Ruskin — Yea
Silva — Yea
Skinner — Yea
Smyth — Yea
Solorio — Yea
Swanson — Yea
Torlakson — Yea
Torres — Yea
Torrico — Yea
Villines — Yea
Adams — Yea
Anderson — Yea
Block — Yea
Blumenfield — Yea
Bradford — Yea
Brownley — Yea
Buchanan — Yea
Huber — Yea
Jeffries — Yea
Logue — Yea
Miller — Yea
Nestande — Yea
Nielsen — Yea
Norby — Yea
Tran — Yea
Eng — Yea
Evans — Yea
DeVore — Yea
Yamada — Yea
Fuller — Yea
Garrick — Yea
Gatto — Yea
Beth Gaines — Yea
Bill Berryhill — Yea
Bill Berryhill — Yea
Arambula, Joaquin Democratic Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Yea
Jones, Brian W. Republican Yea
Niello, Roger W. Republican Yea
Strickland, Tony Republican Yea

Official roll call →

Do pass as amended.

Passed 13 Yea · 0 Nay · 5 Other
Party YeaNayPresentNot Voting
Unaffiliated 13005
Total 13005
% of votes cast 72%0%0%28%
How each member voted (18)
Member Party Vote
Gatto — Yea
Hall — Yea
Harkey — Not Voting
Huffman — Yea
Miller — Not Voting
De — Yea
Leon — Yea
Norby — Not Voting
Conway — Not Voting
Coto — Yea
Skinner — Yea
Solorio — Yea
Torlakson — Yea
Torrico — Yea
Bradford — Yea
Nielsen — Not Voting
Davis — Yea
Fuentes — Yea

Official roll call →

Senate 3rd Reading SB1425 Simitian

Passed 36 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 33003
Democratic 2000
Republican 1000
Total 36003
% of votes cast 92%0%0%8%
How each member voted (39)
Member Party Vote
Yee — Yea
Wyland — Yea
Cedillo — Yea
Cogdill — Yea
Hancock — Yea
Harman — Yea
Lowenthal — Yea
Negrete — Yea
Runner — Yea
Hollingsworth — Yea
Huff — Yea
Leno — Yea
Ashburn — Yea
Ducheny — Yea
Dutton — Yea
Liu — Yea
Price — Yea
Wiggins — Not Voting
Wright — Yea
Aanestad — Yea
Alquist — Yea
Kehoe — Yea
McLeod — Yea
Oropeza — Not Voting
Pavley — Yea
Romero — Yea
Simitian — Yea
Steinberg — Yea
Walters — Not Voting
Wolk — Yea
Corbett — Yea
Correa — Yea
Cox — Yea
DeSaulnier — Yea
Denham — Yea
Florez — Yea
Calderon, Lisa Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Yea

Official roll call →

Do pass.

Passed 10 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 10001
Total 10001
% of votes cast 91%0%0%9%
How each member voted (11)
Member Party Vote
Yee — Yea
Leno — Yea
Price — Yea
Alquist — Yea
Corbett — Yea
Walters — Yea
Kehoe — Yea
Wolk — Yea
Wyland — Yea
Cox — Not Voting
Denham — Yea

Official roll call →

Placed on Appropriations Suspense file.

Passed 9 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 9002
Total 9002
% of votes cast 82%0%0%18%
How each member voted (11)
Member Party Vote
Yee — Yea
Wyland — Yea
Corbett — Not Voting
Kehoe — Yea
Price — Yea
Walters — Yea
Wolk — Yea
Alquist — Yea
Leno — Yea
Cox — Yea
Denham — Not Voting

Official roll call →

Subjects

finance veterans labor
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Frequently asked questions

What does SB 1425 do?
(1) 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 defines "final compensation" for purposes of calculating a member's retirement allowance. The State Teachers' Retirement Law (STRL) and the retirement laws for county employees and city employees also provide for a defined benefit based on age at retirement, service credit, and final compensation. This bill would provide that any change in salary, compensation, or remuneration principally for the purpose of enhancing a member's benefits would not be included in the calculation of a member's final compensation for purposes of determining that member's defined benefit. The bill would generally require the board of each state and local public retirement system to establish, by regulation, accountability provisions that would include an ongoing audit process to ensure that a change in a member's salary, compensation, or remuneration is not made principally for the purpose of enhancing a member's retirement benefits. This bill would revise the definition of "creditable compensation" and would limit the calculation of a member's final compensation to an amount not to exceed the average increase in compensation received within the final compensation period and the 2 preceding years by employees in the same or a related group as that member. This bill would also provide that a person who retires on or after January 1, 2012, may not perform services for any employer covered by a state or local retirement system until that person has been separated from service for a period of at least 180 days. This bill would provide for the implementation of these required changes under the laws that govern PERS and STRL. (2) The Defined Benefit Supplement Program under STRL provides supplemental retirement, disability, final, and termination benefits, payable either in a lump-sum payment or as an annuity, to members receiving benefits under the Defined Benefit Program of the State Teachers' Retirement Plan. This bill would provide that member and employer contributions credited to the Defined Benefit Supplemental Program would include remuneration earnable within a 5-year period in excess of 125% of that member's compensation earnable in the year prior to that 5-year period. This bill would provide, in the case of a member who retires on or after January 1, 2012, and who elects to receive his or her retirement benefit under the Defined Benefit Supplemental Program as a lump-sum payment, that the lump-sum payment would not be payable until 180 days have elapsed following the effective date of the member's retirement. (3) This bill includes Legislative findings expressing the public purpose that would be served by the enactment of this bill. This bill would, except as otherwise specified, provide that its provisions would become operative on July 1, 2011. This bill would further provide that it would only become operative if AB 1987 of the 2009–10 Regular Session is also enacted and takes effect on or before January 1, 2011.
Who sponsors SB 1425?
SB 1425 is sponsored by Correa, DeSaulnier, Ma, and Simitian.
What is the current status of SB 1425?
This bill died with 2009-2010 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 1425?
Track SB 1425 free on One Click Politics — get push/email alerts when it moves.

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