Bill Text: CA SB294 | 2015-2016 | Regular Session | Amended

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

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Bill Title: Public employment: military service: credit.

Spectrum: Bipartisan Bill

Status: (Passed) 2016-09-27 - Chaptered by Secretary of State. Chapter 707, Statutes of 2016. [SB294 Detail]

Download: California-2015-SB294-Amended.html

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BILL NUMBER: SB 294	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JANUARY 4, 2016

INTRODUCED BY    Senator   Pan 
 Senators   Pan   and Nielsen 

                        FEBRUARY 23, 2015

   An act to amend  Section 22350 of the Education Code,
relating to the State Teachers' Retirement System.  
Sections 19780, 20997, and 21029 of the Government Code, relating to
public employment. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 294, as amended, Pan.  The State Teachers' Retirement
System.   Public employment: military service: return to
state service.  
   The State Civil Service Act requires the reinstatement of a
permanent, probationary, or exempt employee who returns from active
duty military service to his or her former position, as specified.
Under existing law, reinstatement to an employee's former exempt
position reestablishes the employee's tenure and civil service
reinstatement rights, if any, as they existed immediately prior to
his or her military leave. Existing law requires an employer to
contribute an amount equal to the contributions that would have been
made by the employer and the employee during the employee's absence
if that absence is due to military service or service with the
uniformed services, except as specified.  
   This bill would require the Board of Administration of the Public
Employees' Retirement System to adopt a separate and unique form to
be used by a member to receive credit for his or her military
service, as specified. The bill would require employers to inform the
member of his or her rights within 30 days of the member's return to
state service by utilizing that form. The bill would additionally
require an employer, on or before April 1, 2017, to provide a letter
or electronic communication to all employees informing them of their
right to receive credit for military or uniform service pursuant to
these provisions.  
   Existing law authorizes a member to elect at any time prior to
retirement, in accordance with regulations of the Board of
Administration of the Public Employees' Retirement System, to receive
credit for public service, in addition to his or her current and
prior service credit.  
   This bill would require an employer to inform a new employee at
the time of hire of his or her rights to purchase service credit as a
result of that person's active service, prior to entering the
retirement system, in the Armed Forces of the United States or the
active service in the Merchant Marine of the United States prior to
1950, as specified.  
   Existing law establishes the State Teachers' Retirement System in
order to provide a financially sound plan for the retirement, with
adequate retirement allowances, of teachers in the public schools of
this state, teachers in schools supported by this state, and other
persons employed in connection with the schools. Existing law finds
and declares that it is necessary and desirable that the system
obtain the best possible investment expertise.  
   This bill would make a technical, nonsubstantive change to that
provision. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

   SECTION 1.    Section 19780 of the  
Government Code   is amended to read: 
   19780.   (a)    Except as provided in Section
19781, a permanent, probationary, or exempt employee who begins
active duty within 90 calendar days from the effective date of his or
her long-term military leave or within 10 calendar days from the
effective date of his or her short-term or emergency military leave
and who returns to state service within six months after termination
of military service under his or her long-term military leave or
within 10 days after termination of military service under his or her
short-term or emergency military leave shall be reinstated to his or
her former position. Reinstatement to an employee's former exempt
position under this section or Section 19783 shall reestablish the
employee's tenure and civil service reinstatement rights, if any, as
they existed immediately prior to his or her military leave pursuant
to this section or resignation pursuant to Section 19783. For the
purpose of this section any period of rehabilitation afforded by the
United States or the state following active duty shall be considered
as military service and termination of the state military emergency
by the Governor shall be considered termination of military service.

   (b) Within 30 days of the employee's return to state service, the
appointing authority shall inform the employee of his or her rights
pursuant to Section 20997, and provide the member with the form
authorized pursuant to subdivision (f) of that section.  
   (c) Prior to April 1, 2017, every appointing authority shall
provide a letter or electronic communication to all employees
informing them of the rights provided by Section 20997. 
   SEC. 2.    Section 20997 of the   Government
Code   is amended to read: 
   20997.  (a) Notwithstanding any other provision of this part, for
each member other than a National Guard member absent without
compensation due to military service pursuant to Section 20990, the
employer shall contribute an amount equal to the contributions that
would have been made by the employer and the employee during the
absence. The employer's contribution pursuant to this section shall
be based upon the member's compensation earnable and the contribution
rates in effect at the commencement of the absence, if any of the
following apply:
   (1) The member returns to state service within six months after
receiving a discharge from military service other than dishonorable.
   (2) The member returns to state service within six months after
completion of any period of rehabilitation offered by the United
States government, except that for purposes of this section,
rehabilitation solely for education purposes shall not be considered.

   (3) The member is granted a leave of absence from the state
employer as of the same date the member was reinstated to that
employment from military service, provided that the member returns to
state service at the conclusion of the leave.
   (4) The member is placed on a state civil service reemployment
list within six months after receiving a discharge from military
service other than dishonorable and returns to state service upon
receipt of an offer of reemployment.
   (5) The member retires from this system for service or disability
during the course of an absence from state service for military
service.
   (6) The member dies during the course of an absence from state
service for military service.
   (b) Any member on leave from state service for military service
who elects to continue contributing to this system shall be entitled
to a refund of those contributions upon request.
   (c) Any member who withdrew contributions during or in
contemplation of his or her military service is entitled to the
benefits of this section irrespective of whether the contributions
are redeposited. The rate for future contributions for the member
shall be based upon the member's age at the time the member commenced
a leave of absence from state service for service in the military.
   (d) The employer's contribution pursuant to this section may be
made either in lump sum, or it may be included in its monthly
contribution as adjusted by inclusion of the amount due in the
employer rate at the valuation most near in time to the event causing
the employer's liability for those contributions. The employer's
contributions pursuant to this section shall be used solely for the
purpose of paying retirement and death benefits and shall not be paid
to the member whose contributions are refunded to him or her
pursuant to Section 20735. 
   (e) Within 30 days of the member's return to state service, the
employer shall inform the member of his or her rights pursuant to
this section, and provide the employee with the form authorized
pursuant to subdivision (f).  
   (f) The board shall authorize a separate and unique form to be
used by the member to receive credit for his or her miliary service
as provided by this section. The form shall not pertain to any other
type of service credit purchase and shall clearly state that the
member has no obligation to pay for any portion of the employer
contribution required by this section. 
   SEC. 3.    Section 21029 of the   Government
Code   is amended to read: 
   21029.  (a) "Public service" with respect to a state member or a
school member or with respect to a retired former state employee or a
retired former school employee, who retired on or after December 31,
1981, also means active service, prior to entering this system as a
state member or as a school member, of not less than one year in the
Armed Forces of the United States, or, active service, prior to
entering this system as a state or school member, of not less than
one year in the Merchant Marine of the United States prior to January
1, 1950. Public service credit shall not be granted if the service
described above terminated with a discharge under dishonorable
conditions. The public service credit to be granted for that service
shall be on the basis of one year of credit for each year of credited
state service, but shall not exceed a total of four years of public
service credit regardless of the number of years of either that
service or subsequent state service. A state member or a school
member or a retired former state employee or a retired former school
employee electing to receive a credit for that public service shall
have been credited with at least one year of state service on the
date of election or the date of retirement.
   (b) An election by a state member or a school member with respect
to public service under this section may be made only while the
member is in state, university, or school employment, and a retired
former employee shall have retired immediately following service as a
state member or as a school member. The retirement allowance of a
retired former state employee or a retired former school employee,
who elects to receive public service credit pursuant to this section
shall be increased only with respect to the allowance payable on and
after the date of election. For the purposes of this section, a
member as described in subdivision (d) of Section 20776, shall also
mean a former state employee or a former school employee, who retired
on or after December 31, 1981.
   (c) A member or retired former employee who elects to become
subject to this section shall make the contributions as specified in
Sections 21050 and 21052.
   (d) The board has no duty to locate or notify any eligible former
member who is currently retired or to provide the name or address of
any such retired person, agency, or entity for the purpose of
notifying those persons. 
   (e) An employer shall inform a new employee at the time of hire of
his or her rights to purchase service credit under this section.
 
  SECTION 1.    Section 22350 of the Education Code
is amended to read:
   22350.  The Legislature finds and declares that the changing
economic conditions and increasing complexity in the investment
market make it necessary and desirable that the system obtain the
best possible investment expertise.