California 2017-2018 Regular Session Status: Enacted

SB 84 — Public Employees' Retirement Fund: state employer contributions: supplemental payment.

Last action — Chaptered by Secretary of State. Chapter 50, Statutes of 2017.

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

This bill has been enacted into law. Introduced January 11, 2017. Enacted.

Prognosis

Advancing 50% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

(1) The Public Employees' Retirement Law (PERL) creates the Public Employees' Retirement System (PERS) for the purpose of providing pension and benefits to state employees and employees of contracting agencies and prescribes the rights and duties of employers participating in the system. Under PERL, benefits are funded by employer and employee contributions and investment income, which are deposited into the Public Employees' Retirement Fund, a continuously appropriated trust fund administered exclusively by the system's board of administration. PERL prescribes methods for the calculation and payment of the state employer contribution for its employees who are PERS members. PERL provides for an annual adjustment of the state's contribution in the budget and quarterly appropriations to the Public Employees' Retirement Fund from the General Fund and other funds that are responsible for payment of the employer contribution. Existing law requires the Pooled Money Investment Board to determine whether money on deposit in the State Treasury, exclusive of the General Fund and other specified funds, is not necessary for immediate use and, if so, to determine the amount which is then designated as surplus money. Existing law creates the Surplus Money Investment Fund and requires the Controller to transfer surplus money to it, provided that moneys from a special fund are not to be transferred if that will interfere with carrying out the purposes that the special fund supports. Existing law requires that moneys in the Surplus Money Investment Fund be invested by the Treasurer as part of the Pooled Money Investment Account. Moneys in the Surplus Money Investment Fund are continuously appropriated. This bill would require the Controller, by a specified deadline, to transfer up to $6,000,000,000 from the Surplus Money Investment Fund and other funds in the Pooled Money Investment Account that accrue interest to the General Fund as a cash loan, the proceeds of which would supplement the state's employer contributions for the 2017–18 fiscal year. The bill would prescribe how the payment is to be applied with respect to specified employee categories. The bill would require the Department of Finance to provide the Controller a schedule of the timing and amounts to be transferred to the Public Employees' Retirement Fund. By providing that money in a continuously appropriated fund may be used for a new purpose, and by depositing new moneys into a continuously appropriated fund, this bill would make an appropriation. The bill would require that repayment of the loan principal and the payment of interest be made from the General Fund and other funds and accounts that are required by law to fund the state's employer contribution to the Public Employees' Retirement Fund and would continuously appropriate funds for this purpose. The bill would require the Department of Finance to devise a tracking mechanism and maintain records of payment by each fund, as specified, and develop a repayment schedule that allocates the amount to each fund after evaluation of its share of costs and its fund availability. The bill also would require the department to ensure each fund pays its proportionate share of the loan principal and interest. The bill would identify the repayment of principal and payment of interest as an obligation pursuant to specified constitutional provisions. The bill would require the Department of Finance to certify to the Controller, and include in the published fund condition statement of the applicable funds and accounts, the amount determined to be the share of the loan principal and interest due and payable from each fund for the fiscal year and would require the timing and amounts of transfers to be pursuant to calculations provided by the Department of Finance. The bill would calculate interest on outstanding amounts of the loan based on the 2-year constant maturity United States Treasury rate, as specified. The bill would require interest payments to be made quarterly and that the principal and interest be fully repaid by June 30, 2030. The bill would provide that interest payments are Pooled Money Investment Account interest earnings to be apportioned as directed in provisions related to that account, unless modified by a specified agreement, and would make conforming changes in this regard. The bill would require the Controller, upon notification of the Department of Finance, to transfer the amount of the loan principal repayment or interest payment, as applicable, from all funds to the Surplus Money Investment Fund or to the General Fund if repayment or payments are made in advance from the General Fund. If a fund has an insufficient fund balance for the repayment of loan principal or payment of interest, the bill would require the Controller to request the Department of Finance for direction in this regard. The bill would prohibit the implementation of these provisions from obstructing any of the trust purposes of the programs supported by funds on deposit in the Surplus Money Investment Fund and other funds in the Pooled Money Investment Account that accrue interest to the General Fund. The bill would require the Department of Finance, within one month after each calendar quarter is concluded, to submit a report to the Joint Legislative Budget Committee identifying funds or accounts with an insufficient fund balance and the direction provided to the Controller on these funds. The bill additionally would require the Department of Finance, by September 1, 2017, to submit a report to the Joint Legislative Budget Committee that describes the actuarial impact on contribution rates for each state employee member category receiving a supplemental payment under the bill's provisions. (2) Existing law requires that interest and other increment derived from investments with moneys from the Surplus Money Investment Fund be deposited in that fund each calendar quarter, on the order of the Controller. Existing law requires the Controller, after deducting reasonable administrative costs, to then apportion, quarterly, interest and other increment derived from investments to specified funds. Existing law requires similar quarterly distributions of interest earned and increment derived from investments in securities, time deposits and loans of money that has been designated as available by the Pooled Money Investment Board, as specified. This bill would provide that interest earnings from demand accounts are also subject to the provisions described above. This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Bill Text

Action History

  1. Chaptered by Secretary of State. Chapter 50, Statutes of 2017.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 1:30 p.m.

  4. Assembly amendments concurred in. (Ayes 24. Noes 13. Page 1707.) Ordered to engrossing and enrolling.

  5. In Senate. Concurrence in Assembly amendments pending.

  6. Read third time. Passed. (Ayes 69. Noes 4. Page 2310.) Ordered to the Senate.

  7. Read second time. Ordered to third reading.

  8. Ordered to second reading.

  9. Withdrawn from committee.

  10. Assembly Rule 96 suspended. (Ayes 46. Noes 19. Page 2250.)

  11. From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET.

  12. Referred to Com. on BUDGET.

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

  14. Read third time. Passed. (Ayes 26. Noes 9. Page 1030.) Ordered to the Assembly.

  15. Read second time. Ordered to third reading.

  16. Ordered to second reading.

  17. Withdrawn from committee. (Ayes 26. Noes 11. Page 982.)

  18. Referred to Com. on B. & F.R.

  19. From printer. May be acted upon on or after February 11.

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

Sponsors

  • Committee on Budget and Fiscal Review · Primary

Sponsorship breakdown

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

Sponsors (1)

  • Committee on Budget and Fiscal Review

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"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

Subjects

finance labor
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 84 do?
(1) The Public Employees' Retirement Law (PERL) creates the Public Employees' Retirement System (PERS) for the purpose of providing pension and benefits to state employees and employees of contracting agencies and prescribes the rights and duties of employers participating in the system. Under PERL, benefits are funded by employer and employee contributions and investment income, which are deposited into the Public Employees' Retirement Fund, a continuously appropriated trust fund administered exclusively by the system's board of administration. PERL prescribes methods for the calculation and payment of the state employer contribution for its employees who are PERS members. PERL provides for an annual adjustment of the state's contribution in the budget and quarterly appropriations to the Public Employees' Retirement Fund from the General Fund and other funds that are responsible for payment of the employer contribution. Existing law requires the Pooled Money Investment Board to determine whether money on deposit in the State Treasury, exclusive of the General Fund and other specified funds, is not necessary for immediate use and, if so, to determine the amount which is then designated as surplus money. Existing law creates the Surplus Money Investment Fund and requires the Controller to transfer surplus money to it, provided that moneys from a special fund are not to be transferred if that will interfere with carrying out the purposes that the special fund supports. Existing law requires that moneys in the Surplus Money Investment Fund be invested by the Treasurer as part of the Pooled Money Investment Account. Moneys in the Surplus Money Investment Fund are continuously appropriated. This bill would require the Controller, by a specified deadline, to transfer up to $6,000,000,000 from the Surplus Money Investment Fund and other funds in the Pooled Money Investment Account that accrue interest to the General Fund as a cash loan, the proceeds of which would supplement the state's employer contributions for the 2017–18 fiscal year. The bill would prescribe how the payment is to be applied with respect to specified employee categories. The bill would require the Department of Finance to provide the Controller a schedule of the timing and amounts to be transferred to the Public Employees' Retirement Fund. By providing that money in a continuously appropriated fund may be used for a new purpose, and by depositing new moneys into a continuously appropriated fund, this bill would make an appropriation. The bill would require that repayment of the loan principal and the payment of interest be made from the General Fund and other funds and accounts that are required by law to fund the state's employer contribution to the Public Employees' Retirement Fund and would continuously appropriate funds for this purpose. The bill would require the Department of Finance to devise a tracking mechanism and maintain records of payment by each fund, as specified, and develop a repayment schedule that allocates the amount to each fund after evaluation of its share of costs and its fund availability. The bill also would require the department to ensure each fund pays its proportionate share of the loan principal and interest. The bill would identify the repayment of principal and payment of interest as an obligation pursuant to specified constitutional provisions. The bill would require the Department of Finance to certify to the Controller, and include in the published fund condition statement of the applicable funds and accounts, the amount determined to be the share of the loan principal and interest due and payable from each fund for the fiscal year and would require the timing and amounts of transfers to be pursuant to calculations provided by the Department of Finance. The bill would calculate interest on outstanding amounts of the loan based on the 2-year constant maturity United States Treasury rate, as specified. The bill would require interest payments to be made quarterly and that the principal and interest be fully repaid by June 30, 2030. The bill would provide that interest payments are Pooled Money Investment Account interest earnings to be apportioned as directed in provisions related to that account, unless modified by a specified agreement, and would make conforming changes in this regard. The bill would require the Controller, upon notification of the Department of Finance, to transfer the amount of the loan principal repayment or interest payment, as applicable, from all funds to the Surplus Money Investment Fund or to the General Fund if repayment or payments are made in advance from the General Fund. If a fund has an insufficient fund balance for the repayment of loan principal or payment of interest, the bill would require the Controller to request the Department of Finance for direction in this regard. The bill would prohibit the implementation of these provisions from obstructing any of the trust purposes of the programs supported by funds on deposit in the Surplus Money Investment Fund and other funds in the Pooled Money Investment Account that accrue interest to the General Fund. The bill would require the Department of Finance, within one month after each calendar quarter is concluded, to submit a report to the Joint Legislative Budget Committee identifying funds or accounts with an insufficient fund balance and the direction provided to the Controller on these funds. The bill additionally would require the Department of Finance, by September 1, 2017, to submit a report to the Joint Legislative Budget Committee that describes the actuarial impact on contribution rates for each state employee member category receiving a supplemental payment under the bill's provisions. (2) Existing law requires that interest and other increment derived from investments with moneys from the Surplus Money Investment Fund be deposited in that fund each calendar quarter, on the order of the Controller. Existing law requires the Controller, after deducting reasonable administrative costs, to then apportion, quarterly, interest and other increment derived from investments to specified funds. Existing law requires similar quarterly distributions of interest earned and increment derived from investments in securities, time deposits and loans of money that has been designated as available by the Pooled Money Investment Board, as specified. This bill would provide that interest earnings from demand accounts are also subject to the provisions described above. This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
Who sponsors SB 84?
SB 84 is sponsored by Committee on Budget and Fiscal Review.
What is the current status of SB 84?
This bill has been enacted into law. Introduced January 11, 2017. Enacted.
Where can I track SB 84?
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