Bill Text: CA AB2452 | 2009-2010 | Regular Session | Amended
Bill Title: County employees' retirement systems: Orange County:
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-04-14 - In committee: Set, first hearing. Hearing canceled at the request of author. [AB2452 Detail]
Download: California-2009-AB2452-Amended.html
BILL NUMBER: AB 2452 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 8, 2010
INTRODUCED BY Assembly Member Silva
FEBRUARY 19, 2010
An act to amend Section 31520 add Article
2.65 (commencing with Section 31512) to Chapter 3 of Part 3 of
Division 4 of Title 3 of the Government Code, relating to
county employees' retirement systems.
LEGISLATIVE COUNSEL'S DIGEST
AB 2452, as amended, Silva. County employees' retirement systems:
boards of retirement. Orange C
ounty: retirement benefits.
The County Employees Retirement Law of 1937 sets forth
the membership requirements for a board of retirement of a county and
requires that the board shall consist of 5 members that include the
county treasurer, 2 members from the association, and 2 members
chosen by the board of supervisors authorizes counties
and districts to provide retirement benefits to their
employees .
This bill would authorize the board of supervisors of Orange
County to establish an optional SMART retirement plan for its general
members under an executed memorandum of understanding with employee
representatives, if the board of supervisors, by a majority vote,
adopts a resolution providing that the provisions of this bill shall
be applicable. This bill would not require members to make
contributions to the SMART retirement plan.
This bill would make a technical, nonsubstantive change to that
provision.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 2.65 (commencing with Section
31512) is added to Chapter 3 of Part 3 of Division 4 of Title 3 of
the Government Code , to read:
Article 2.65. Alternate SMART Plan for Orange County
31512. (a) The retirement plan created by this article shall be
known as the Self-Managed Asset Retirement Transfer (SMART)
retirement plan.
(b) This article shall be applicable in the retirement system of
Orange County, if the board of supervisors executes a memorandum of
understanding with employee representatives and adopts, by majority
vote, a resolution providing that the article shall be applicable.
(c) The purpose of this article is to provide an optional,
noncontributory retirement plan for general members as an alternative
to the provisions and benefits otherwise contained in this chapter.
(d) The retirement benefits of (1) all general members employed
after the date this article is made operative and who elect the plan
created by this article and (2) existing general members who transfer
to the plan herein created, shall be governed by this article.
(e) In the event of a conflict, this article shall supersede and
prevail over other provisions or application of provisions otherwise
contained in this chapter.
(f) Except as otherwise provided below, the provisions contained
in this chapter shall apply:
(1) Article 9 (commencing with Section 31700) of this chapter
shall not be applicable.
(2) Article 10 (commencing with Section 31720) of this chapter
shall not be applicable.
(3) Article 11 (commencing with Section 31760) of this chapter
shall not be applicable.
(4) Article 12 (commencing with Section 31780) of this chapter
shall not be applicable.
(5) Article 16.5 (commencing with Section 31870) of this chapter
shall not be applicable.
(g) Article 15 (commencing with Section 31830) dealing with
reciprocal benefits shall be applicable, excluding those provisions
dealing with disability retirement, death benefits, and the
requirement relating to the deposit of accumulated member
contributions.
(h) Any amendments to or modifications of this chapter subsequent
to the effective date of this article shall not affect the provisions
of this article unless mutually agreed to by the employer and
employee representatives and adopted by majority resolution of the
board of supervisors.
(i) Except as otherwise provided, any member who upon retirement
receives a retirement pension calculated in accordance with sections
or provisions added to this article subsequent to the effective date
of this article shall have his or her pension calculated under each
applicable section or provision only for the period of time that
those sections or provisions were in effect, unless otherwise
mutually agreed between the employer and its employee
representatives.
31512.1. Unless the context otherwise requires, the definitions
contained in this section, govern the construction of this article.
(a) "Board" means the board of retirement.
(b) "Employer" means the county or district or agency whose
employees are members of the retirement system of the county.
(c) "Federal system" means the Old Age and Survivors Insurance
provisions of the Social Security Act.
(d) "Final compensation" means the average annual compensation
earnable by a general member during any three years, whether or not
consecutive, elected by the member at or before the time an
application for retirement is filed or, if no election is made,
during the three years in which the member or former member last
earned compensation preceding retirement. If a member or former
member has less than three years of service, final compensation shall
be determined by dividing total compensation by the number of months
of service credited to the member or former member and multiplying
by 12. In no event shall final compensation include any disability
benefits received by the member or former member under a disability
plan provided by the employer.
(e) "Member" or "general member" means an employee hired on a
monthly permanent basis of at least three-quarter time, as defined by
the employer, except an employee eligible for safety membership.
(f) "Primary insurance amount" means the monthly retirement
benefit payable under the federal system at the age at which full
retirement benefits are available under the federal system. This age
is deemed to be age 65 until June 30, 2012.
(g) (1) "Service" means the period of uninterrupted employment of
a member and the time in which a member or former member (1) is
totally disabled, and (2) is receiving disability benefits or is
eligible to receive disability benefits either during or after any
elimination or qualifying period, under a disability plan provided by
the employer.
(2) Unless otherwise provided, "service" shall not include
military service or public service other than service with the
employer.
(3) Except as otherwise herein provided, a member shall not be
credited with service for any period of time, in excess of 22
consecutive workdays, in which the member is absent from work without
pay.
31512.2. (a) Except as otherwise provided, there shall be no
general member's contributions under the plan created by this
article.
(b) A member who voluntarily transfers to the SMART retirement
plan created by this article may exercise a rollover of his or her
accumulated contributions that are credited to his or her existing
account into the SMART retirement plan in accordance with the
applicable provisions under the Internal Revenue Code and the Revenue
and Taxation Code.
SECTION 1. Section 31520 of the Government Code
is amended to read:
31520. Except as otherwise delegated to the board of investment
and except for the statutory duties of the county treasurer, the
management of the retirement system is vested in the board of
retirement, consisting of five members, one of whom shall be the
county treasurer. The second and third members of the board shall be
active members of the association elected by it within 30 days after
the retirement system becomes operative in a manner determined by the
board of supervisors. The fourth and fifth members shall be
qualified electors of the county who are not connected with county
government in any capacity, except that one may be a supervisor and
one may be a retired member, and shall be chosen by the board of
supervisors. The first persons chosen as the second and fourth
members shall serve for two years from the date the system becomes
operative and the third and fifth members shall serve for a term of
three years from that date. Thereafter the terms of office of the
four elected members are three years.
As used in this section "active member" means a member in the
active service of a county, district, or superior court and a
"retired member" means a member, including a member under former
Section 31555, retired for service or disability.
