California 2009-2010 Regular Session Status: In Committee 1 D cosponsors

AB 704 — Public employees' retirement: Deferred Retirement Option Program.

Last action — From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

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

This bill died with 2009-2010 Regular Session. It reached “In Committee” 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This bill is no longer active — its legislative session has ended, so there is no live prognosis.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) Existing law authorizes the Department of Personnel Administration to provide for annual leave benefits with respect to each officer and employee excluded from the definition of state employee for the purposes of the Ralph C. Dills Act, which regulates state employer-employee relations. Existing law permits an employee who is excluded from the definition of state employee for the purposes of that act to make an irrevocable election, in lieu of earning sick leave and vacation benefits, to participate in the annual leave program. This bill would provide that an excluded or exempt state employee of State Bargaining Unit 5, 6, 7, or 8 who participates in the Deferred Retirement Option Program shall also participate in the annual leave program and accumulate 12 hours of annual leave credits per month. (2) The Public Employees' Retirement Law provides a comprehensive set of rights and benefits for various employees of the state and local agencies. That law also establishes the Public Employees' Retirement System and sets forth the provisions for its administration and the delivery of benefits to its members. Under that law, the retirement benefits of a retirement system member are based, in part, on the completed service credit and compensation received by that member. This bill would establish the Deferred Retirement Option Program as a voluntary program in the Public Employees' Retirement System for the excluded or exempt state employees of State Bargaining Unit 5, 6, 7, or 8, as specified. The program would provide eligible members, upon retirement, access to a lump sum in addition to a monthly retirement allowance, as specified. The program would also permit a specified beneficiary to receive any remaining balance upon the death of the member. The bill would require that the program result in a cost savings or be cost neutral to the state, direct the Board of Administration of the Public Employees' Retirement System to prepare a cost analysis of the program, as specified, and direct the board to implement the program on July 1, 2010, except as specified. The bill would also require the actuary to conduct a biennial valuation of the program, as specified, and authorize the Department of Personnel Administration to terminate the program if it is not cost neutral, subject to specified conditions. (3) The Public Employees' Retirement Law provides that the state's employer contribution from the General Fund to the Public Employees' Retirement Fund shall be made quarterly. That law defines the term "compensation" for purposes of determining required contributions and benefits. That law generally requires a miscellaneous member to pay 5%, and a specified patrol and state peace officer and firefighter member to pay 8% of compensation as his or her normal retirement contribution to the Public Employees' Retirement System, subject to specified exceptions. This bill would provide that an excluded or exempt state employee of State Bargaining Unit 5, 6, 7, or 8 who participates in the Deferred Retirement Option Program, shall not pay contributions to or receive service credit in the Public Employees' Retirement System. The bill would also provide that the state shall not pay employer contributions from the General Fund to the Public Employees' Retirement Fund relating to these excluded or exempt state employees.

Bill Text

Action History

  1. From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

  2. Died pursuant to Art. IV, Sec. 10(c) of the Constitution.

  3. In committee: Set, second hearing. Held under submission.

  4. In committee: Set, first hearing. Referred to APPR. suspense file.

  5. From committee: Do pass, and re-refer to Com. on APPR. Re-referred. (Ayes 4. Noes 1.) (April 22).

  6. Re-referred to Com. on P.E.,R. & S.S.

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

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

  9. From printer. May be heard in committee March 29.

  10. Read first time. To print.

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

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"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.

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Frequently asked questions

What does AB 704 do?
(1) Existing law authorizes the Department of Personnel Administration to provide for annual leave benefits with respect to each officer and employee excluded from the definition of state employee for the purposes of the Ralph C. Dills Act, which regulates state employer-employee relations. Existing law permits an employee who is excluded from the definition of state employee for the purposes of that act to make an irrevocable election, in lieu of earning sick leave and vacation benefits, to participate in the annual leave program. This bill would provide that an excluded or exempt state employee of State Bargaining Unit 5, 6, 7, or 8 who participates in the Deferred Retirement Option Program shall also participate in the annual leave program and accumulate 12 hours of annual leave credits per month. (2) The Public Employees' Retirement Law provides a comprehensive set of rights and benefits for various employees of the state and local agencies. That law also establishes the Public Employees' Retirement System and sets forth the provisions for its administration and the delivery of benefits to its members. Under that law, the retirement benefits of a retirement system member are based, in part, on the completed service credit and compensation received by that member. This bill would establish the Deferred Retirement Option Program as a voluntary program in the Public Employees' Retirement System for the excluded or exempt state employees of State Bargaining Unit 5, 6, 7, or 8, as specified. The program would provide eligible members, upon retirement, access to a lump sum in addition to a monthly retirement allowance, as specified. The program would also permit a specified beneficiary to receive any remaining balance upon the death of the member. The bill would require that the program result in a cost savings or be cost neutral to the state, direct the Board of Administration of the Public Employees' Retirement System to prepare a cost analysis of the program, as specified, and direct the board to implement the program on July 1, 2010, except as specified. The bill would also require the actuary to conduct a biennial valuation of the program, as specified, and authorize the Department of Personnel Administration to terminate the program if it is not cost neutral, subject to specified conditions. (3) The Public Employees' Retirement Law provides that the state's employer contribution from the General Fund to the Public Employees' Retirement Fund shall be made quarterly. That law defines the term "compensation" for purposes of determining required contributions and benefits. That law generally requires a miscellaneous member to pay 5%, and a specified patrol and state peace officer and firefighter member to pay 8% of compensation as his or her normal retirement contribution to the Public Employees' Retirement System, subject to specified exceptions. This bill would provide that an excluded or exempt state employee of State Bargaining Unit 5, 6, 7, or 8 who participates in the Deferred Retirement Option Program, shall not pay contributions to or receive service credit in the Public Employees' Retirement System. The bill would also provide that the state shall not pay employer contributions from the General Fund to the Public Employees' Retirement Fund relating to these excluded or exempt state employees.
Who sponsors AB 704?
AB 704 is sponsored by Calderon, Lisa (Democratic).
What is the current status of AB 704?
This bill died with 2009-2010 Regular Session. It reached “In Committee” 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 AB 704?
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