Bill Text: CA SB322 | 2011-2012 | Regular Session | Introduced

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

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Bill Title: Retirement.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2011-07-01 - Chaptered by Secretary of State. Chapter 47, Statutes of 2011. [SB322 Detail]

Download: California-2011-SB322-Introduced.html

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BILL NUMBER: SB 322	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Negrete McLeod

                        FEBRUARY 14, 2011

   An act to amend Section 21752 of the Government Code, relating to
retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 322, as introduced, Negrete McLeod. Retirement.
   The Public Employees' Retirement Law (PERL) provides for the
preservation of the purchasing power of benefits through a system of
adjustments in benefits based on changes in living costs. The law
also establishes provisions to ensure the federal tax-exempt status
of the system and to preserve the deferred treatment of federal
income tax on public employer contributions to public employee
pensions. Existing federal law limits the amount a defined benefit
plan may pay a participant annually, and requires that this
limitation be adjusted annually by regulation to account for
increases in the cost of living.
   PERL provides that a member's annual retirement benefits, adjusted
to the actuarial equivalent of a straight-life annuity if payable in
a form other than a straight-life annuity or a qualified joint and
survivor annuity, and determined without regard to any employee
contributions or rollover contributions, otherwise payable to the
member under PERL and under any other defined benefit plan maintained
by the employer that is subject to that federal limit, shall not
exceed, in the aggregate, the federal dollar limit, as specified.
   This bill would prohibit a member who receives benefits based on
credited service with multiple employers from exceeding the
limitations set forth in those provisions with regard to his or her
annual retirement benefits.
   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 21752 of the Government Code is amended to
read:
   21752.  (a) (1) In accordance with Section 21756, a member's
annual retirement benefits, adjusted to the actuarial equivalent of a
straight-life annuity if payable in a form other than a
straight-life annuity or a qualified joint and survivor annuity as
provided under Section 21460, and determined without regard to any
employee contributions or rollover contributions, as defined in
Sections 402(a)(5), 403(a)(4), and 408(d)(3) of Title 26 of the
United States Code, otherwise payable to the member under Part 3
(commencing with Section 20000) and under any other defined benefit
plan maintained by the employer that is subject to Section 415 of
Title 26 of the United States Code, shall not exceed, in the
aggregate, the dollar limit applicable pursuant to Section 415(b)(1)
(A) of Title 26 of the United States Code, as appropriately modified
by Section 415(b)(2)(F) and (G) of Title 26 of the United States
Code. 
   (2) A member who receives benefits based on credited service with
multiple employers shall not exceed the limitations set forth in this
subdivision with regard to his or her annual retirement benefits.
 
   (2) 
    (3)  However, the annual retirement benefit payable to a
member shall be deemed not to exceed the limitations prescribed in
paragraph (1) if the benefit does not exceed ten thousand dollars
($10,000) and the member has at no time participated in a tax
qualified defined contribution plan maintained by the employer.
   (b) These limitations shall be applied pursuant to Section 415(b)
(10) of Title 26 of the United States Code.
   (c) Part 3 (commencing with Section 20000) shall be construed as
if it included this section.