Bill Text: CA AB1878 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Public Employees' Retirement System: state or school members: postretirement death benefit.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Vetoed) 2016-09-26 - Vetoed by Governor. [AB1878 Detail]

Download: California-2015-AB1878-Amended.html

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BILL NUMBER: AB 1878	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 31, 2016
	AMENDED IN ASSEMBLY  MARCH 28, 2016

INTRODUCED BY   Assembly Member Jones-Sawyer

                        FEBRUARY 10, 2016

   An act to amend Section 21623 of the Government Code, relating to
public employees' retirement, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1878, as amended, Jones-Sawyer. Public Employees' Retirement
System:  state or  school members: postretirement death
benefit.
   The Public Employees' Retirement Law requires that, upon the death
of any state or school member after retirement and while receiving a
retirement allowance, the sum of $2,000 be paid to the member's
designated beneficiary, as specified. Existing law provides that the
additional employer contributions required to fund this benefit be
computed as a level percentage of member compensation, and these are
deposited in the Public Employees' Retirement Fund, a continuously
appropriated fund.
   This  bill, on and after January 1, 2017, would increase
the amount of payment to school members, described above, to not less
than $5,000. The  bill would authorize the Board of
Administration of the Public Employees' Retirement  System
  System, beginning on or after January 1, 2017, 
to adjust the death benefit amount following each actuarial valuation
 based on   to reflect  changes in the All
Urban California Consumer Price Index, as specified.
    By  increasing   authorizing the board to
increase  contributions  to   deposited in
 the Public Employees' Retirement Fund, this bill would make an
appropriation.
   Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 21623 of the Government Code is amended to
read:
   21623.  (a)  (1)    In lieu of
benefits provided by Section 21620 or 21622, upon the death of any
retired state  or school  member, after retirement and while
receiving a retirement allowance from this system, there shall be
paid to the beneficiary whom he or she shall nominate by written
designation duly executed and filed with the board, the sum of two
thousand dollars ($2,000), to be provided from contributions by the
employer. 
   (2) On and after January 1, 2017, in lieu of benefits provided by
Section 21620 or 21622, upon the death of any retired school member,
after retirement and while receiving a retirement allowance from this
system, there shall be paid to the beneficiary whom he or she shall
nominate by written designation duly executed and filed with the
board, the sum of not less than five thousand dollars ($5,000), to be
provided from contributions by the employer. 
   (b)  The   Beginning on or after January 1,
2017, the  Board of Administration of the Public Employees'
Retirement System may adjust the death benefit amount following each
actuarial valuation  based on   to reflect 
changes in the All Urban California Consumer Price Index and adopt
as a plan amendment any adjusted amount.
   (c) For the purposes of this section, all contributions,
liabilities, actuarial interest rates, and other valuation factors
shall be determined on the basis of actuarial assumptions and methods
that, in the aggregate, are reasonable and that, in combination,
offer the actuary's best estimate of anticipated experience under
this system.
   (d) The additional employer contributions required under this
section shall be computed as a level percentage of member
compensation.
   (e) This section shall apply to a school employer and a retired
school member whose death after retirement occurs on or after January
1, 2001. This section shall not apply to any contracting agency or
local member, except those contracting agencies that are school
employers and those school districts or community college districts
as defined in subdivision (i) of Section 20057.