California 2015-2016 Regular Session Status: Enacted

AB 2404 — Public Employees' Retirement System: optional settlements.

Last action — Chaptered by Secretary of State - Chapter 199, Statutes of 2016.

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

This bill has been enacted into law. Introduced February 19, 2016. Enacted.

Prognosis

Likely to advance 70% · 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.

  • Cleared a recorded vote

    Passed 6 recorded votes so far.

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

Existing law creates the Public Employees' Retirement System (PERS) , the Judges' Retirement System, and the Judges' Retirement System II, all of which are administrated by the Board of Administration of the Public Employees' Retirement System. Existing law permits a member of the Public Employees' Retirement System to elect from among several optional settlements for the purpose of structuring his or her retirement allowance, which may result in a reduction of the allowance paid to the member in relation to the payments to his or her beneficiary after the member's death. Existing law includes among these options the following: optional settlement 1, which provides for payment of a retirement allowance until death and the payment of any remaining contributions at death to his or her beneficiary or estate; optional settlement 2, which provides an allowance for life to the member and thereafter to his or her beneficiary; optional settlement 3, which provides an allowance for life to the member and thereafter 1/2 of his or her allowance to his or her beneficiary; optional settlement 4, which provides for such other benefits that are the actuarial equivalent of a member's retirement allowance, subject to approval of the board and that the benefits payable not exceed actuarial equivalent of benefits under optional settlement 2, as specified; and optional settlement 5, which provides for a partial present distribution of the actuarial present value of a portion of a member's unmodified monthly allowance, as specified. Existing law entitles a member to elect certain variations within these settlements and, in certain instances, to a recalculated, increased allowance if the beneficiary predeceases the member, subject to a specified, sinking percentage. Existing law similarly permits a member of the Judges' Retirement System or the Judges' Retirement System II to select from various optional settlements for the purpose of structuring his or her retirement benefits. This bill would limit the application of the optional settlements and variations described above to PERS members who retire on or before December 31, 2017. For members who retire on or after January 1, 2018, the bill would revise and recast the optional retirement settlements, which would be termed the Return of Remaining Contributions Option 1, the 100 Percent Beneficiary Option 2, the 100 Percent Beneficiary Option 2 with Benefit Allowance Increase, the 50 Percent Beneficiary Option 3, the 50 Percent Beneficiary Option 3 with Benefit Allowance Increase, and the Flexible Beneficiary Option 4. The bill would revise and bring forward various administrative provisions in connection with these settlements, including those relating to adjustments of actuarial equivalents by the board, the effective dates for elections and revocations and dates of payments, the effect of dissolution of marriage, and of a beneficiary predeceasing a member, among others. The bill would similarly limit application of current optional settlements and variations described above to members of the Judges' Retirement System or the Judges' Retirement System II who retire on or before December 31, 2017, and would provide to members of those systems who retire on and after January 1, 2018, optional retirement settlements analogous to those provided to PERS members, as described above. The bill would make conforming and technical changes.

Bill Text

Action History

  1. Chaptered by Secretary of State - Chapter 199, Statutes of 2016.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 3 p.m.

  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0. Page 5812.).

  5. In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 14 pursuant to Assembly Rule 77.

  6. Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0. Page 4871.).

  7. Read second time and amended. Ordered to consent calendar.

  8. From committee: Be placed on second reading file pursuant to Senate Rule 28.8, be amended, and ordered to consent calendar.

  9. From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 5. Noes 0.) (June 27). Re-referred to Com. on APPR.

  10. 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.

  11. In committee: Set, first hearing. Hearing canceled at the request of author.

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

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

  14. Read third time. Passed. Ordered to the Senate. (Ayes 79. Noes 0. Page 4686.)

  15. Read second time. Ordered to Consent Calendar.

  16. From committee: Do pass. To Consent Calendar. (Ayes 19. Noes 0.) (April 27).

  17. From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 7. Noes 0.) (April 20). Re-referred to Com. on APPR.

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

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

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

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

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

  23. Read first time.

  24. From printer. May be heard in committee March 22.

  25. Introduced. To print.

Sponsors

  • Cooley · Primary

Sponsorship breakdown

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

Sponsors (1)

  • Cooley

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

Votes

AB 2404 COOLEY Concurrence in Senate Amendments

Passed 78 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 68002
Democratic 5000
Republican 5000
Total 78002
% of votes cast 98%0%0%3%
How each member voted (80)
Member Party Vote
Achadjian — Yea
Alejo — Yea
Baker — Yea
Bloom — Yea
Brough — Yea
Brown — Yea
Harper — Yea
Holden — Yea
Levine — Yea
Linder — Yea
Low — Yea
Mathis — Yea
Olsen — Not Voting
Quirk — Yea
Rendon — Yea
Steinorth — Yea
Wagner — Yea
Williams — Yea
Eggman — Yea
Dababneh — Yea
Daly — Yea
Frazier — Yea
Chau — Yea
Chu — Yea
Salas — Yea
Cooper — Yea
Mayes — Yea
O'Donnell — Yea
Obernolte — Yea
Rodriguez — Yea
Weber — Yea
Gatto — Yea
Gomez — Yea
Burke — Yea
Gordon — Yea
Gray — Yea
Jones-Sawyer — Yea
Atkins — Yea
Campos — Yea
Bonilla — Yea
Kim — Yea
Lopez — Yea
Bigelow — Yea
Chang — Yea
Chiu — Yea
Chávez — Yea
Cooley — Yea
Dodd — Yea
Maienschein — Yea
McCarty — Yea
Medina — Yea
Melendez — Yea
Mullin — Yea
Nazarian — Yea
Ridley-Thomas — Yea
Santiago — Yea
Thurmond — Yea
Ting — Yea
Waldron — Yea
Wilk — Yea
Wood — Yea
Hadley — Yea
Beth Gaines — Yea
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Yea
Lorena Gonzalez — Yea
Mark Stone — Yea
Roger Hernández — Not Voting
Travis Allen — Yea
Arambula, Joaquin Democratic Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Gipson, Mike A. Democratic Yea
Irwin, Jacqui Democratic Yea
Dahle, Megan Republican Yea
Gallagher, James Republican Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea
Lackey, Tom Republican Yea

Official roll call →

Consent Calendar 2nd AB2404 Cooley By Pan

Passed 37 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 34002
Democratic 3000
Total 37002
% of votes cast 95%0%0%5%
How each member voted (39)
Member Party Vote
Anderson — Yea
Bates — Yea
Hernandez — Yea
Hueso — Yea
Lara — Yea
Leyva — Yea
Liu — Yea
Cannella — Yea
Allen — Yea
Glazer — Yea
Hall — Not Voting
Mitchell — Yea
De León — Yea
Hancock — Not Voting
Hertzberg — Yea
Hill — Yea
Beall — Yea
Block — Yea
Huff — Yea
Leno — Yea
Mendoza — Yea
Monning — Yea
Moorlach — Yea
Morrell — Yea
Nielsen — Yea
Pan — Yea
Pavley — Yea
Roth — Yea
Vidak — Yea
Wieckowski — Yea
Wolk — Yea
Fuller — Yea
Galgiani — Yea
Beth Gaines — Yea
Bill Berryhill — Yea
Mark Stone — Yea
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Nguyen, Stephanie Democratic Yea

Official roll call →

AB 2404 COOLEY Consent Calendar Second Day

Passed 79 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 69001
Democratic 5000
Republican 5000
Total 79001
% of votes cast 99%0%0%1%
How each member voted (80)
Member Party Vote
Achadjian — Yea
Alejo — Yea
Bloom — Yea
Brough — Yea
Brown — Yea
Jones-Sawyer — Yea
Low — Yea
Maienschein — Yea
Mathis — Yea
Mayes — Yea
Steinorth — Yea
Wagner — Yea
Williams — Yea
Eggman — Yea
Cooley — Yea
Daly — Yea
Frazier — Yea
Cooper — Yea
Salas — Yea
Linder — Yea
Olsen — Yea
Rodriguez — Yea
Weber — Yea
Gatto — Yea
Burke — Yea
Gomez — Yea
Harper — Yea
Holden — Yea
Campos — Yea
Kim — Yea
Levine — Yea
Gray — Yea
Atkins — Yea
Chang — Yea
Bonilla — Yea
McCarty — Yea
Lopez — Yea
Baker — Yea
Bigelow — Yea
Chau — Yea
Chiu — Yea
Chu — Yea
Chávez — Yea
Dababneh — Yea
Dodd — Yea
Medina — Yea
Melendez — Yea
Mullin — Yea
Nazarian — Yea
O'Donnell — Yea
Obernolte — Yea
Quirk — Yea
Rendon — Yea
Ridley-Thomas — Yea
Santiago — Yea
Thurmond — Yea
Ting — Yea
Waldron — Yea
Wilk — Yea
Wood — Yea
Gordon — Yea
Hadley — Yea
Beth Gaines — Not Voting
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Yea
Lorena Gonzalez — Yea
Mark Stone — Yea
Roger Hernández — Yea
Travis Allen — Yea
Arambula, Joaquin Democratic Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Gipson, Mike A. Democratic Yea
Irwin, Jacqui Democratic Yea
Dahle, Megan Republican Yea
Gallagher, James Republican Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea
Lackey, Tom Republican Yea

Official roll call →

Do pass. To Consent Calendar.

Passed 19 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 15001
Democratic 2000
Republican 2000
Total 19001
% of votes cast 95%0%0%5%
How each member voted (20)
Member Party Vote
Bloom — Yea
Eggman — Yea
Chang — Yea
Bonilla — Yea
Holden — Yea
Bigelow — Yea
Daly — Yea
Obernolte — Yea
Quirk — Yea
Santiago — Yea
Wagner — Yea
Weber — Yea
Wood — Yea
Eduardo Garcia — Yea
Lorena Gonzalez — Yea
Roger Hernández — Not Voting
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Gallagher, James Republican Yea
Jones, Brian W. Republican Yea

Official roll call →

Subjects

finance veterans labor
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Frequently asked questions

What does AB 2404 do?
Existing law creates the Public Employees' Retirement System (PERS) , the Judges' Retirement System, and the Judges' Retirement System II, all of which are administrated by the Board of Administration of the Public Employees' Retirement System. Existing law permits a member of the Public Employees' Retirement System to elect from among several optional settlements for the purpose of structuring his or her retirement allowance, which may result in a reduction of the allowance paid to the member in relation to the payments to his or her beneficiary after the member's death. Existing law includes among these options the following: optional settlement 1, which provides for payment of a retirement allowance until death and the payment of any remaining contributions at death to his or her beneficiary or estate; optional settlement 2, which provides an allowance for life to the member and thereafter to his or her beneficiary; optional settlement 3, which provides an allowance for life to the member and thereafter 1/2 of his or her allowance to his or her beneficiary; optional settlement 4, which provides for such other benefits that are the actuarial equivalent of a member's retirement allowance, subject to approval of the board and that the benefits payable not exceed actuarial equivalent of benefits under optional settlement 2, as specified; and optional settlement 5, which provides for a partial present distribution of the actuarial present value of a portion of a member's unmodified monthly allowance, as specified. Existing law entitles a member to elect certain variations within these settlements and, in certain instances, to a recalculated, increased allowance if the beneficiary predeceases the member, subject to a specified, sinking percentage. Existing law similarly permits a member of the Judges' Retirement System or the Judges' Retirement System II to select from various optional settlements for the purpose of structuring his or her retirement benefits. This bill would limit the application of the optional settlements and variations described above to PERS members who retire on or before December 31, 2017. For members who retire on or after January 1, 2018, the bill would revise and recast the optional retirement settlements, which would be termed the Return of Remaining Contributions Option 1, the 100 Percent Beneficiary Option 2, the 100 Percent Beneficiary Option 2 with Benefit Allowance Increase, the 50 Percent Beneficiary Option 3, the 50 Percent Beneficiary Option 3 with Benefit Allowance Increase, and the Flexible Beneficiary Option 4. The bill would revise and bring forward various administrative provisions in connection with these settlements, including those relating to adjustments of actuarial equivalents by the board, the effective dates for elections and revocations and dates of payments, the effect of dissolution of marriage, and of a beneficiary predeceasing a member, among others. The bill would similarly limit application of current optional settlements and variations described above to members of the Judges' Retirement System or the Judges' Retirement System II who retire on or before December 31, 2017, and would provide to members of those systems who retire on and after January 1, 2018, optional retirement settlements analogous to those provided to PERS members, as described above. The bill would make conforming and technical changes.
Who sponsors AB 2404?
AB 2404 is sponsored by Cooley.
What is the current status of AB 2404?
This bill has been enacted into law. Introduced February 19, 2016. Enacted.
Where can I track AB 2404?
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