Bill Text: CA AB837 | 2013-2014 | Regular Session | Enrolled
Bill Title: Public employees' retirement benefits.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Vetoed) 2014-09-28 - Vetoed by Governor. [AB837 Detail]
Download: California-2013-AB837-Enrolled.html
BILL NUMBER: AB 837 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 25, 2014
PASSED THE ASSEMBLY AUGUST 28, 2014
AMENDED IN SENATE AUGUST 4, 2014
AMENDED IN SENATE SEPTEMBER 6, 2013
AMENDED IN ASSEMBLY MAY 1, 2013
INTRODUCED BY Assembly Member Wieckowski
FEBRUARY 21, 2013
An act amend Section 7522.04 of the Government Code, relating to
public employees' retirement.
LEGISLATIVE COUNSEL'S DIGEST
AB 837, Wieckowski. Public employees' retirement benefits.
The California Public Employees' Pension Reform Act of 2013
(PEPRA) generally requires a public retirement system, as defined, to
modify its pension plan or plans to comply with the act, as
specified. Among other things, PEPRA prohibits a public employer
offering a defined benefit pension plan from exceeding specified
retirement formulas for new members and prohibits an enhancement of a
public employee's retirement formula or benefit adopted after
January 1, 2013, from applying to service performed prior to the
operative date of the enhancement. PEPRA defines terms for those
purposes, including defining "new member" to include an individual
who becomes a member of any public retirement system for the first
time on or after January 1, 2013, and who was not a member of any
other public retirement system prior to that date; an individual who
becomes a member of a public retirement system for the first time on
or after January 1, 2013, and who was a member of another public
retirement system prior to that date, but who was not subject to
reciprocity under specified law; or an individual who was an active
member in a retirement system and who, after a break in service of
more than 6 months, returned to active membership in that system with
a new employer.
This bill would specifically exclude from the definition of "new
member" a judge, as defined in specified existing law, elected to
office before January 1, 2013.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7522.04 of the Government Code is amended to
read:
7522.04. For the purposes of this article:
(a) "Defined benefit formula" means a formula used by a retirement
system to determine a retirement benefit based on age, years of
service, and pensionable compensation earned by an employee up to the
limit defined in Section 7522.10.
(b) "Employee contributions" means the contributions to a public
retirement system required to be paid by a member of the system, as
fixed by law, regulation, administrative action, contract, contract
amendment, or other written agreement recognized by the retirement
system as establishing an employee contribution.
(c) "Federal system" means the old age, survivors, disability, and
health insurance provisions of the federal Social Security Act (42
U.S.C. Sec. 301 et seq.).
(d) "Member" means a public employee who is a member of a public
retirement system or plan.
(e) "New employee" means either of the following:
(1) An employee, including one who is elected or appointed, of a
public employer who is employed for the first time by a public
employer on or after January 1, 2013, and who was not employed by
another public employer prior to that date.
(2) An employee, including one who is elected or appointed, of a
public employer who is employed for the first time by a public
employer on or after January 1, 2013, and who was employed by another
public employer prior to that date, but who was not subject to
reciprocity under subdivision (c) of Section 7522.02.
(f) (1) "New member," except as provided in paragraph (2), means
any of the following:
(A) An individual who becomes a member of a public retirement
system for the first time on or after January 1, 2013, and who was
not a member of another public retirement system prior to that date.
(B) An individual who becomes a member of a public retirement
system for the first time on or after January 1, 2013, and who was a
member of another public retirement system prior to that date, but
who was not subject to reciprocity under subdivision (c) of Section
7522.02.
(C) An individual who was an active member in a retirement system
and who, after a break in service of more than six months, returned
to active membership in that system with a new employer. For purposes
of this subdivision, a change in employment between state entities
or from one school employer to another shall not be considered as
service with a new employer.
(2) Notwithstanding any other provision of this subdivision, a
judge, as defined in subdivision (a) of Section 75502, elected to
office before January 1, 2013, shall not be considered a new member
for the purposes of this article.
(g) "Normal cost" means the portion of the present value of
projected benefits under the defined benefit that is attributable to
the current year of service, as determined by the public retirement
system's actuary according to the most recently completed valuation.
For the purpose of determining normal cost, the system's actuary may
use a single rate of contribution or an age-based rate of
contribution as is applicable to that retirement system.
(h) "Public employee" means an officer, including one who is
elected or appointed, or an employee of a public employer.
(i) "Public employer" means:
(1) The state and every state entity, including, but not limited
to, the Legislature, the judicial branch, including judicial
officers, and the California State University.
(2) A political subdivision of the state, or agency or
instrumentality of the state or subdivision of the state, including,
but not limited to, a city, county, city and county, a charter city,
a charter county, school district, community college district, joint
powers authority, joint powers agency, and any public agency,
authority, board, commission, or district.
(3) Any charter school that elects or is required to participate
in a public retirement system.
(j) "Public retirement system" means a pension or retirement
system of a public employer, including, but not limited to, an
independent retirement plan offered by a public employer that the
public employer participates in or offers to its employees for the
purpose of providing retirement benefits or a system of benefits for
public employees that is governed by Section 401(a) of Title 26 of
the United States Code.
