BILL NUMBER: SB 522 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 22, 2011
INTRODUCED BY Senator Walters
( Coauthors: Senators Dutton
and Runner )
( Coauthors: Assembly Members
Garrick, Grove, Harkey, Jeffries,
Mansoor, and Silva )
FEBRUARY 17, 2011
An act to repeal Section 22826 of the Education Code, and to
amend Sections 20899.5 and 31485.7 of, and to repeal
Section 20909 of Sections 20909, 31486.35, and 31658
of, the Government Code, relating to public employees'
retirement.
LEGISLATIVE COUNSEL'S DIGEST
SB 522, as amended, Walters. Public employees' retirement:
additional service credit.
Existing law authorizes certain members of the Public Employees'
Retirement System, the State Teachers' Retirement System, and county,
city, and district retirement systems that have adopted specified
provisions, to make additional contributions to the retirement system
and receive up to 5 years of additional retirement service credit
for time that does not qualify for public service, as specified.
The bill would repeal the provisions that authorize these
additional contributions and service credit, and would make related
technical changes.
The Public Employees' Retirement Law calculates service retirement
allowances, in part, based on years of credited service. Members of
the Public Employees' Retirement System may receive service credit
for public service not otherwise subject to credit, upon payment of
specified additional contributions. Existing law authorizes specified
members of that system, including employees or officers of the
state, the university, a school employer, or a contracting agency and
certain legislative employees, to elect to make additional
contributions and receive up to 5 years of additional retirement
service credit, as defined, subject to specified limitations.
This bill would repeal that provision.
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 22826 of the
Education Code is repealed.
22826. (a) A member, other than a retired member, may request to
purchase up to five years of nonqualified service credit provided the
member is vested in the Defined Benefit Program as provided in
Section 22156.
(b) A member who requests to purchase nonqualified service credit
as provided in this chapter shall contribute to the retirement fund
the actuarial cost of the service, including interest as appropriate,
as determined by the board based on the most recent valuation of the
plan with respect to the Defined Benefit Program in effect on the
date of the request, in accordance with subdivisions (a), (f), (g),
and (h) of Section 22801.
SEC. 2. Section 20899.5 of the
Government Code is amended to read:
20899.5. (a) An elective
officer of a contracting agency that is a city, county, or city and
county shall not receive credit for service or contributions for
credit for service in violation of the prohibitions provided in
Section 23007.5, 34095, or 50033.
(b) Nothing in this section shall prohibit an elective officer
from purchasing service credit pursuant to Section 20909.
SECTION 1. SEC. 3. Section 20909 of
the Government Code is repealed.
SEC. 4. Section 31485.7 of the
Government Code is amended to read:
31485.7. (a) Notwithstanding any other provision of this chapter,
a member who elects to purchase retirement service credit under
Section 31486.3, 31486.35, 31499.3, 31499.13,
31641.1, 31641.5, 31641.55, 31646, or 31652, or
31658, or under the regulations adopted by the board
pursuant to Section 31643 or 31644 shall complete that purchase
within 120 days after the effective date of his or her retirement.
(b) This section is not operative in any county until the board of
supervisors, by resolution, makes this section applicable in the
county.
SEC. 5. Section 31486.35 of the
Government Code is repealed.
31486.35. (a) An active member may elect, by written notice filed
with the board, to make contributions pursuant to this section and
to receive up to five years of service credit in the retirement
system for additional retirement credit, if the member has completed
at least five years of credited service with that retirement system.
(b) As used in this section, "additional retirement credit" means
time that does not otherwise qualify as county service, public
service, military service, medical leave of absence, or any other
time recognized for service credit by the retirement system.
(c) Notwithstanding any other provision of this chapter, service
credit for additional retirement credit may not be counted to meet
the minimum qualifications for service retirement or for purposes of
establishing eligibility for benefits based on 30 years of service,
additional ad hoc cost-of-living benefits based on service credit,
health care benefits, or any other benefits based upon service
credit.
(d) A member who elects to make contributions and receive service
credit for additional retirement credit shall contribute to the
retirement fund, prior to the effective date of his or her
retirement, by lump-sum payment or by installment payments over a
period not to exceed 10 years, an amount that, at the time of
commencement of purchase, in the opinion of the board and the
actuary, is sufficient to not place any additional financial burden
upon the retirement system.
(e) No member may receive service credit under this section for
additional retirement credit that he or she has not completed payment
pursuant to subdivision (d) before the effective date of his or her
retirement or, if applicable, prior to the date provided in Section
31485.7. Subject to the limitations of United States Internal Revenue
Service regulations, a member who has elected to make payment in
installments may complete payment by lump sum at any time prior to
the effective date of his or her retirement.
(f) Sums paid by a member pursuant to this section shall be
considered to be and administered as contributions by the member.
(g) This section is not operative in a county until the board of
supervisors, by resolution adopted by majority vote, makes this
section applicable in the county.
SEC. 6. Section 31658 of the Government
Code is repealed.
31658. (a) An active member may elect, by written notice filed
with the board, to make contributions pursuant to this section and to
receive up to five years of service credit in the retirement system
for additional retirement credit, if the member has completed at
least five years of credited service with that retirement system.
(b) As used in this section, "additional retirement credit" means
time that does not otherwise qualify as county service, public
service, military service, medical leave of absence, or any other
time recognized for service credit by the retirement system.
(c) Notwithstanding any other provision of this chapter, service
credit for additional retirement credit may not be counted to meet
the minimum qualifications for service or disability retirement or
for purposes of establishing eligibility for any benefits based on 30
years of service, additional ad hoc cost-of-living benefits based on
service credit, health care benefits, or any other benefits based
upon service credit.
(d) Any member who elects to make contributions and receive
service credit for additional retirement credit shall contribute to
the retirement fund, prior to the effective date of his or her
retirement, by lump-sum payment or by installment payments over a
period not to exceed 10 years, an amount that, at the time of
commencement of purchase, in the opinion of the board and the
actuary, is sufficient to not place any additional financial burden
upon the retirement system.
(e) No member may receive service credit under this section for
any additional retirement credit for which he or she has not
completed payment pursuant to subdivision (d) before the effective
date of his or her retirement. Subject to the limitations of United
States Internal Revenue Service regulations, a member who has elected
to make payment in installments may complete payment by lump sum at
any time prior to the effective date of his or her retirement.
(f) Any sums paid by a member pursuant to this section shall be
considered to be and administered as contributions by the member.
(g) This section is not operative in any county until the board of
supervisors, by resolution adopted by majority vote, makes this
section applicable in the county.