Bill Text: CA SB1251 | 2013-2014 | Regular Session | Introduced

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

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Bill Title: California Public Employees' Pension Reform Act of 2013: joint powers authority: employees.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2014-09-28 - Chaptered by Secretary of State. Chapter 757, Statutes of 2014. [SB1251 Detail]

Download: California-2013-SB1251-Introduced.html

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BILL NUMBER: SB 1251	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Huff

                        FEBRUARY 20, 2014

   An act to amend Section 7522.04 of the Government Code, relating
to public employees' retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1251, as introduced, Huff. California Public Employees' Pension
Reform Act of 2013.
   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 prescribes definitions for
the purposes of its provisions.
   This bill would make nonsubstantive changes to the definitional
provisions of PEPRA.
   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.  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  the
  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
any type  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  any
  a  public employer on or after January 1, 2013,
and who was not employed by  any other   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  any
  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) "New member" means any of the following:
   (1) An individual who becomes a member of  any 
 a  public retirement system for the first time on or after
January 1, 2013, and who was not a member of  any other
  another  public retirement system prior to that
date.
   (2) 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.
   (3) 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.
   (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)  Any   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  any   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,   benefits  or a system of benefits for
public employees that is governed by Section 401(a) of Title 26 of
the United States Code.