BILL NUMBER: SB 215 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Beall
FEBRUARY 11, 2013
An act to amend Section 22508 of the Education Code, and to amend
Sections 20092, 20309, 21269, 22850, 22920, and 22922 of, and to
repeal Section 20204 of, the Government Code, relating to public
employees' retirement.
LEGISLATIVE COUNSEL'S DIGEST
SB 215, as introduced, Beall. Public employees' retirement.
(1) Existing law permits a member of the Public Employees'
Retirement System (PERS) who is employed by a school district,
community college district, a county superintendent of schools, or
the State Department of Education to elect to have specified service
excluded from coverage by the Defined Benefit Program of the State
Teachers' Retirement Plan and instead be subject to coverage by PERS,
as specified.
This bill would provide that the option to elect the exclusion
applies when the member of PERS was employed by a school district,
community college district, a county superintendent of schools, or
the State Department of Education within 120 days prior to the member'
s date of hire to perform service that requires membership in the
Defined Benefit Program of the State Teachers' Retirement Plan.
(2) Existing law provides that PERS is governed by its Board of
Administration (board) and prescribes the composition of the board.
Existing law requires the retirement fund of PERS to reimburse an
employing agency that employs an elected member of the board and that
employs a person to replace the member during attendance at meetings
of the board, among other times, for the direct and reasonable costs
incurred by employing a replacement.
This bill would recast these provisions to provide that the
employing agency be reimbursed, as specified, without regard to
whether it replaces the elected member.
(3) Existing law authorizes the board to sell exchange-traded
call options only through an exchange, and only with respect to stock
owned by the system, as specified.
This bill would repeal these provisions.
(4) Existing law permits a person entitled to a benefit from PERS
to request that payment be made an electronic fund transfer, as
specified. Existing law prohibits the board from sending a copy of
benefit payment information to any person who has had payment made by
electronic fund transfer or by mail, as specified, if the board has
received a written request from that person that it not be sent.
This bill would authorize the board to make available, in a manner
it determines appropriate, copies of the monthly benefit payment
information electronically and by mail. The bill would require the
board, if it does not elect to mail copies of this payment
information, as specified, to all or some of the people receiving
monthly benefit payments, to notify people of their right to request
that a copy of the benefit payment information be mailed. The bill
would require the board to mail the information upon receiving a
written request to do so.
(5) Existing law, the Public Employees' Medical and Hospital Care
Act (PEMHCA), authorizes the board to enter into contracts with
carriers offering health benefit plans or with entities offering
services relating to the administration of health benefit plans.
Existing law specifically authorizes the board to contract for, or
approve, health benefit plans exclusively for the employees and
annuitants of contracting agencies. Existing law authorizes a
contracting agency and its employees and annuitants to elect to be
subject to PEMHCA upon filing with the board a resolution of its
governing body, as specified. Existing law authorizes the board, by
regulation, to establish requirements for a contracting agency that
elects to become subject to PEMHCA.
This bill would provide that a contracting agency and its
employees and annuitants may obtain a health benefit plan, as
defined, subject to board approval of a resolution submitted by the
governing body. The bill would authorize the board to refuse to
contract with, or to agree to an amendment proposed by, any
contracting agency for benefit provisions that are not specifically
authorized by PEMHCA and that the board determines would adversely
affect the administration of this system. Among other things, the
bill would permit the board to require the contracting agency to
enter into a contract with the board in this regard and that the
contract would constitute an election by the contracting agency to
include the agency and its employees PEMHCA-authorized health benefit
plans. The bill would require that the approval of the contract be
by ordinance adopted by the affirmative vote of a majority of the
members of the relevant governing body, at least 20 days after the
adoption of the resolution of intention, or by ordinance adopted by a
majority vote of the electorate of the contracting agency.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 22508 of the Education Code is amended to read:
22508. (a) A member who becomes employed by the same or a
different school district or community college district, or a county
superintendent, or who becomes employed by the state in a position
described in subdivision (b), to perform service that requires
membership in a different public retirement system, and who is not
excluded from membership in that public retirement system, may elect
to have that service subject to coverage by the Defined Benefit
Program of this plan and excluded from coverage by the other public
retirement system. The election shall be made in writing on a form
prescribed by this system within 60 days from the date of hire in the
position requiring membership in the other public retirement system.
If that election is made, the service performed for the employer
after the date of hire shall be considered creditable service for
purposes of this part.
(b) Subdivision (a) shall apply to a member who becomes employed
by the state only if the member is also one of the following:
(1) Represented by a state bargaining unit that represents
educational consultants, professional educators, or librarians
employed by the state.
(2) Excluded from the definition of "state employee" in
subdivision (c) of Section 3513 of the Government Code, but
performing, supervising, or managing work similar to work performed
by employees described in paragraph (1).
(3) In a position not covered by civil service and in the
executive branch of government, but performing, supervising, or
managing work similar to work performed by employees described in
paragraph (1).
(c) (1) A member of the Public Employees' Retirement System
described in paragraph (2) who is subsequently employed to perform
creditable service requiring coverage by the Defined Benefit Program
of this plan may elect to have that subsequent service subject to
coverage by the Public Employees' Retirement System and excluded from
coverage by the Defined Benefit Program pursuant to Section 20309 of
the Government Code. If the election is made, creditable service
performed for the employer after the date of hire shall be subject to
coverage by the Public Employees' Retirement System.
(2) This subdivision shall apply to a member of the Public
Employees' Retirement System who either (A) is
was employed by a school district, community college
district, a county superintendent, or the State Department of
Education within 120 days prior to the member's date of hire to
perform service that requires membership in the Defined Benefit
Program of the State Teachers' Retirement Plan or (B) has at
least five years of credited service under the system.
(d) An election made by a member pursuant to this section shall be
irrevocable.
SEC. 2. Section 20092 of the Government Code is amended to read:
20092. Each employing agency that employs an elected member of
the board and that employs a person to replace the member
during attendance at shall be reimbursed by the
retirement fund in an amount equal to the salary and benefits paid to
the elected board member by the employing agency for the percentage
of the elected board member's regular work schedule during which the
elected board member is on leave from the employing agency to attend
meetings or activities of the board, or meetings of
committees or subcommittees of the board, or when serving as
a panel member of this system or when serving as
president or vice president of the board or chair or vice chair of a
committee or subcommittee of the board , or when carrying out
other powers or duties as may be approved by the board,
shall be reimbursed from the retirement fund for the direct and
reasonable costs incurred by employing a replacement. Reimbursement
for the costs incurred in employing a replacement pursuant to this
section shall be operative on February 1, 2003 or to
otherwise fulfill his or her responsibilities to the system .
SEC. 3. Section 20204 of the Government Code is repealed.
20204. The board may sell exchange-traded call options only
through an exchange, and only with respect to stock owned by this
system. Common stock that is obligated under an unexpired written
call option shall not be sold unless the board first enters into a
closing purchase transaction.
The board may purchase exchange traded options only through an
exchange and only for the purpose of a closing purchase transaction.
SEC. 4. Section 20309 of the Government Code is amended to read:
20309. (a) A member of the system described in subdivision (b)
who subsequently is employed to perform service subject to coverage
by the Defined Benefit Program of the State Teachers' Retirement
Plan, may elect to retain coverage by this system for that subsequent
service. An election to retain coverage under this system shall be
submitted in writing by the member to the system on a form prescribed
by the system, and a copy of the election shall be submitted to the
State Teachers' Retirement System, within 60 days after the member's
date of hire to perform service that requires membership in the
Defined Benefit Program of the State Teachers' Retirement Plan. A
member who elects to retain coverage under this system pursuant to
this section shall be deemed to be a school member while employed by
a school employer.
(b) This section shall apply to a member of the system who either
(1) is was employed by a school
employer, the Board of Governors of the California Community
Colleges, or the State Department of Education within 120 days
prior to the member's date of hire to perform service that requires
membership in the Defined Benefit Program of the State Teachers'
Retirement Plan or (2) has at least five years of credited
service under this system.
(c) Any election made pursuant to this section shall become
effective as of the first day of employment in the position that
qualified the member to make an election.
SEC. 5. Section 21269 of the Government Code is amended to read:
21269. (a) Any person entitled to a benefit from this system may
request that payment be made by deposit by electronic fund transfer
in the person's bank, savings and loan association, or credit union
account.
(b) If deposit pursuant to subdivision (a) is not available,
deposit may be made by mail in the person's bank, savings and loan
association or credit union account.
(c) Mailing of the warrant or electronic fund transfer is a full
discharge of the board and this system.
(d) The board shall make available, in a manner it
determines appropriate, copies of the monthly benefit payment
information electronically or by mail.
(1) The board If the board elects to mail
copies of this payment information to all or a portion of persons
receiving monthly benefit payments, it shall not send a copy of
the benefit payment information to any person who has had payment
made by electronic fund transfer or by mail pursuant to subdivision
(a) or (b), if the board has received a written request from that
person that it not be sent.
(2) The board shall notify persons subject to this section, in the
monthly benefit payment notice, of their right to request that no
copy of the benefit payment information be mailed, pursuant to
paragraph (1).
(3) If the board does not elect to mail copies of this payment
information to all or a portion of persons receiving monthly benefit
payments, it shall notify a person subject to this section of his or
her right to request that a copy of the benefit payment information
be mailed. The board shall mail a copy of the benefit payment
information if the system has received a written request to do so
from that person.
SEC. 6. Section 22850 of the Government Code is amended to read:
22850. (a) The board may, without compliance with any provision
of law relating to competitive bidding, enter into contracts with
carriers offering health benefit plans or with entities offering
services relating to the administration of health benefit plans.
(b) The board may contract with carriers for health benefit plans
or approve health benefit plans offered by employee organizations,
provided that the carriers have operated successfully in the hospital
and medical care fields prior to the contracting for or approval
thereof. The plans may include hospital benefits, surgical benefits,
inpatient medical benefits, outpatient benefits, obstetrical
benefits, and benefits offered by a bona fide church, sect,
denomination, or organization whose principles include healing
entirely by prayer or spiritual means.
(c) Notwithstanding any other provision of this part, the board
may contract with health benefit plans offering unique or specialized
health services.
(d) The board may administer self-funded or minimum premium health
benefit plans.
(e) The board may contract for or implement employee cost
containment and cost reduction incentive programs that involve the
employee, the annuitant, and family members as active participants,
along with the carrier and the provider, in a joint effort toward
containing and reducing the cost of providing medical and hospital
health care services to public employees. In developing these plans,
the board, in cooperation with the Department of Human Resources, may
request proposals from carriers and certified public employee
representatives.
(f) Notwithstanding any other provision of this part, the board
may do any of the following:
(1) Contract for, or approve, health benefit plans that charge a
contracting agency and its employees and annuitants rates based on
regional variations in the costs of health care services.
(2) Contract for, or approve, health benefit plans exclusively for
the employees and annuitants of contracting agencies. State
employees and annuitants may not enroll in these plans. The board may
offer provide health benefit plans
exclusively for employees and annuitants of contracting agencies in
addition to or in lieu of other health benefit plans offered under
this part . The governing body of a contracting agency may
elect, upon filing a resolution with the board, to provide those
health benefit plans to its employees and annuitants. The resolution
shall be subject to mutual agreement between the contracting agency
and the recognized employee organization, if any
pursuant to Section 22922 .
(3) Implement and administer risk adjustment procedures consistent
with Section 22864 that require health benefit plans to adjust
premiums and authorize the system to redistribute premiums based on
rules and regulations established by the board for this purpose.
(g) The board shall approve any employee association health
benefit plan that was approved by the board in the 1987-88 contract
year or prior, provided the plan continues to meet the minimum
standards prescribed by the board. The trustees of an employee
association health benefit plan are responsible for providing health
benefit plan administration and services to its enrollees.
Notwithstanding any other provision of this part, the California
Correctional Peace Officer Association Health Benefits Trust may
offer different health benefit plan designs with varying premiums in
different areas of the state.
(h) Irrespective of any other provision of law, the sponsors of a
health benefit plan approved under this section may reinsure the
operation of the plan with an admitted insurer authorized to write
disability insurance, if the premium includes the entire prepayment
fee.
SEC. 7. Section 22920 of the Government Code is amended to read:
22920. The following entities are eligible to become
subject to this part obtain a health benefit plan, as
defined in Section 22777, subject to board approval :
(a) A contracting agency, as defined in Section 20022, a county or
special district subject to the County Employees Retirement Law of
1937 (Chapter 3 (commencing with Section 31450) of Part 3 of Division
4 of Title 3), and a school employer.
(b) A public body or agency of or within the state that is not
subject to Part 3 (commencing with Section 20000) of the Government
Code or the County Employees Retirement Law of 1937 (Chapter 3
(commencing with Section 31450) of Part 3 of Division 4 of Title 3),
and that provides a retirement system for its employees funded wholly
or in part by public funds.
(c) The protection and advocacy agency described in subdivision
(h) of Section 4900 of the Welfare and Institutions Code, if the
agency obtains a written advisory opinion from the United States
Department of Labor stating that the organization is an agency or
instrumentality of the state or a political subdivision thereof
within the meaning of Chapter 18 (commencing with Section 1001) of
Title 29 of the United States Code.
SEC. 8. Section 22922 of the Government Code is amended to read:
22922. (a) A contracting agency and its employees and annuitants
shall be may obtain a health benefit plan, as
defined in Section 22777, subject to this part upon
filing with the board approval of a resolution
of its submitted by the governing body
electing to be so subject. The resolution shall be adopted by a
majority vote and shall be effective at the time provided in board
regulations.
(b) In addition to, or in lieu of, submitting a resolution as
prescribed in subdivision (a), the board may require the contracting
agency to enter into a contract with the board to obtain a health
benefit plan, as defined in Section 22777, for all or part of its
employees, pursuant to rules and regulations developed by the board
for this purpose. The contract entered into between a contracting
agency and the board pursuant to this part constitutes an election by
the contracting agency to include the agency and its employees in
this system's health benefit plans.
(c) The board may refuse to contract with, or to agree to an
amendment proposed by, a contracting agency for any benefit
provisions that are not specifically authorized by this part and that
the board determines would adversely affect the administration of
this system.
(b)
(d) A contracting agency may become subject to this
part with respect to a recognized employee organization with
which it has reached mutual agreement . The resolution
filed with respect to a contracting agency pursuant to subdivision
(a) and any contracts, or the resolution and contract
required by subdivisions (a) and (b), shall specify the
recognized employee organizations to which the resolution
applies participating in this system .
(c)
(e) Pursuant to Section 22796 and subdivision (g) of
Section 22934, the board may by regulation require any contracting
agency that elects to become becomes
subject to this part to meet certain board-determined criteria,
including, but not limited to, additional requirements for any
contracting agency that elects to become subject to this part that
previously terminated coverage pursuant to Section 22938.
(f) Approval of the contract to obtain a health benefit plan
pursuant to subdivision (b) shall be by ordinance adopted by the
affirmative vote of a majority of the members of the governing body
of the contracting agency, not less than 20 days after the adoption
of the resolution of intention, or by ordinance adopted by a majority
vote of the electorate of the contracting agency voting upon it.