Bill Text: CA AB1354 | 2009-2010 | Regular Session | Chaptered

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Bill Title: County employees' retirement.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2010-08-27 - Chaptered by Secretary of State - Chapter 188, Statutes of 2010. [AB1354 Detail]

Download: California-2009-AB1354-Chaptered.html

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BILL NUMBER: AB 1354	CHAPTERED
	BILL TEXT

	CHAPTER  188
	FILED WITH SECRETARY OF STATE  AUGUST 27, 2010
	APPROVED BY GOVERNOR  AUGUST 27, 2010
	PASSED THE SENATE  AUGUST 2, 2010
	PASSED THE ASSEMBLY  AUGUST 9, 2010
	AMENDED IN SENATE  JUNE 24, 2010
	AMENDED IN SENATE  JUNE 16, 2010

INTRODUCED BY   Assembly Member Fong

                        FEBRUARY 27, 2009

   An act to amend Section 31538 of, and to add Section 31485.17 to,
the Government Code, relating to county employees' retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1354, Fong. County employees' retirement.
   Under existing law, counties and districts may provide retirement
benefits to their employees pursuant to the County Employees
Retirement Law of 1937 (CERL). CERL provides that death benefits and
survivors' allowance are payable to the survivors of a deceased
member, as specified. CERL also specifies the minimum ages and years
of service that are required in order to become eligible for
retirement.
   Existing federal law regulates the provision of pension benefits
and a retirement system providing pension benefits must meet
prescribed requirements to maintain its tax qualified status. Federal
law requires, in this regard, that a plan provide that, in the case
of a participant who dies while performing qualified military
service, as defined, the survivors of the participant are entitled to
any additional benefits provided under the plan had the participant
resumed and then terminated employment on account of death.
   This bill would specify that a retirement system established
pursuant to CERL shall act in accordance with the requirements of
federal law described above. The bill would also require that service
for vesting purposes be credited to a member who dies while
performing qualified military service for the period of his or her
qualified military service. These provisions would apply to deaths
that occur on or after January 1, 2007.
   CERL provides that the management of a retirement system created
pursuant to its provisions is vested in a board of retirement. CERL
requires that the board of retirement adjust the payment of benefits
payable pursuant to the law's provisions, including cost-of-living
adjustments, as necessary, in order to maximize the benefits
available to members who are subject to specified limits of the
Internal Revenue Code.
   This bill would prohibit the amount payable to a CERL retirement
system member in a limitation year from exceeding the Internal
Revenue Code limit as of the annuity starting date and as the limit
may be increased in future years, as specified. The bill would
specify that cost-of-living adjustments made to Internal Revenue Code
limits continue to apply after a member's severance from employment
or annuity starting date.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 31485.17 is added to the Government Code, to
read:
   31485.17.  (a) In accordance with Section 401(a)(37) of Title 26
of the United States Code, if a member dies while performing
qualified military service, as defined in Section 414(u) of Title 26
of the United States Code, the survivors of the member shall be
entitled to any additional benefits that would have been provided
under the retirement system had the member resumed his or her prior
employment with an employer that participates in the system and then
terminated employment on account of death.
   (b) For purposes of this section, "additional benefits" shall not
include benefit accruals relating to the period of qualified military
service.
   (c) The death of a member or former member while performing
qualified military service shall not be treated as a
service-connected death or disability.
   (d) Service for vesting purposes shall be credited to a member who
dies while performing qualified military service for the period of
his or her qualified military service.
   (e) This section shall apply to deaths occurring on or after
January 1, 2007.
  SEC. 2.  Section 31538 of the Government Code is amended to read:
   31538.  (a) The board shall adjust the payment of benefits payable
pursuant to this part, as necessary, in order to maximize the
benefits available to members who are subject to the limits of
Section 415 of the Internal Revenue Code. Those adjustments shall
include, but are not limited to, cost-of-living adjustments,
cost-of-living banks, temporary annuities, survivor continuance
benefits, or any combinations thereof.
   (b) The amount payable to a member in any limitation year,
including cost-of-living adjustments, shall not exceed the limit
established under Section 415(b) of the Internal Revenue Code at the
annuity starting date, and as may be increased in subsequent years
pursuant to Section 415(d) of the Internal Revenue Code and
applicable regulations.
   (c) The cost-of-living adjustments made pursuant to Section 415(d)
of the Internal Revenue Code to the limit established under Section
415(b) of the Internal Revenue Code continue to apply after a member'
s severance from employment or annuity starting date.