California Assembly Bill AB2665 Latest Draft

 BILL NUMBER: AB 2665AMENDED BILL TEXT AMENDED IN SENATE AUGUST 14, 2012 INTRODUCED BY  Committee on Public Employees, Retirement and Social Security   (   Furutani (Chair), Allen, Ma, and Wieckowski   )   Assembly   Members   Allen  and Huffman  FEBRUARY 29, 2012  An act relating to state employees.   An act to add Section 31485.11 to the Government Code, relating to public employees' retirement.  LEGISLATIVE COUNSEL'S DIGEST AB 2665, as amended,  Committee on Public Employees, Retirement and Social Security   Allen  .  State employees: memoranda of understanding: addenda.   County employees' retirement: Marin County: safety members.   The County Employees Retirement Law of 1937 authorizes counties and districts to establish retirement systems pursuant to its provisions in order to provide pension benefits to employees. The County Employees Retirement Law of 1937 authorizes the Board of Supervisors of the County of San Mateo to provide any retirement benefits pursuant to that formula for some, but not all, general members or safety members of the county. Existing law further authorizes that county, by resolution, to require safety members to pay all or part of the contributions by a member or employer, or both, subject to certain limitations and conditions.   This bill would authorize the Board of Supervisors of Marin County to provide a service retirement formula known as 3% at age 55 for safety members hired on or after January 1, 2013, as specified. The bill would authorize different retirement benefits pursuant to that formula for different bargaining units of safety members and the unrepresented groups of safety employees in similar job classifications and the supervisors and managers of those employees. The bill would also permit an ordinance or resolution adopted by the board to require safety members to pay part of the contributions by a member or employer, or both. The bill would require that the payment by a safety member become part of the accumulated contributions of the safety member. The bill would authorize the board, by means of a resolution, ordinance, contract, or contract amendment, to make the above-described provisions applicable to safety members in Marin County who are first hired on or after January 1, 2013.   Existing law establishes procedures governing the approval of memoranda of understanding reached between the state employer and state bargaining units that require the expenditure of funds, including the approval of related side letters, appendices, or other addenda to memoranda of understanding that require the expenditure of funds.   This bill would approve provisions of unspecified addenda to memoranda of understanding entered into between the state employer and state bargaining units that require the expenditure of funds. The bill would specify that provisions of the addenda to memoranda of understanding that require the expenditure of funds will not take effect unless funds for those provisions are specifically appropriated by the Legislature, and would require the state employer and the affected employee organization to meet and confer to renegotiate the affected provisions if funds for those provisions are not specifically appropriated by the Legislature.  Vote: majority. Appropriation: no. Fiscal committee:  yes   no  . State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   Section 31485.11 is added to the   Government Code  , to read:   31485.11. (a) Notwithstanding any other law, in a county of the 18th class, as defined in Sections 28020 and 28039, the board of supervisors may, by resolution, ordinance, contract, or contract amendment under this chapter, provide retirement benefits based on the formula provided in subdivision (b) for some, but not all, safety members who are employed by the county and who are first hired on or after January 1, 2013. (b) The combined service pensions for safety members subject to this section is a pension derived from the contributions of the employer sufficient when added to the service retirement annuity that is derived from the accumulated normal contributions of the member at the date of his or her retirement to equal the fraction of 3 percent of his or her final compensation set forth opposite his or her age at retirement taken to the preceding completed quarter year, in the following table, multiplied by the number of years of service subject to this section with which he or she is credited at retirement:   Age   at   Retirement Fraction   41 .............................. .4777   41 1/4 .......................... .4848   41 1/2 .......................... .4918   41 3/4 .......................... .4987   42 .............................. .5058   42 1/4 .......................... .5130   42 1/2 .......................... .5202   42 3/4 .......................... .5274   43 .............................. .5347   43 1/4 .......................... .5422   43 1/2 .......................... .5497   43 3/4 .......................... .5572   44 .............................. .5647   44 1/4 .......................... .5725   44 1/2 .......................... .5803   44 3/4 .......................... .5881   45 .............................. .5958   45 1/4 .......................... .6039   45 1/2 .......................... .6120   45 3/4 .......................... .6200   46 .............................. .6280   46 1/4 .......................... .6366   46 1/2 .......................... .6452   46 3/4 .......................... .6555   47 .............................. .6625   47 1/4 .......................... .6703   47 1/2 .......................... .6781   47 3/4 .......................... .6858   48 .............................. .6936   48 1/4 .......................... .7019   48 1/2 .......................... .7103   48 3/4 .......................... .7186   49 .............................. .7269   49 1/4 .......................... .7360   49 1/2 .......................... .7452   49 3/4 .......................... .7543   50 .............................. .7634   50 1/4 .......................... .7733   50 1/2 .......................... .7832   50 3/4 .......................... .7930   51 .............................. .8028   51 1/4 .......................... .8135   51 1/2 .......................... .8242   51 3/4 .......................... .8349   52 .............................. .8457   52 1/4 .......................... .8574   52 1/2 .......................... .8691   52 3/4 .......................... .8808   53 .............................. .8926   53 1/4 .......................... .9053   53 1/2 .......................... .9182   53 3/4 .......................... .9310   54 .............................. .9418   54 1/4 .......................... .9579   54 1/2 .......................... .9718   54 3/4 .......................... .9860   55 and over .................... 1.0000   (c) A resolution, ordinance, contract, or contract amendment adopted pursuant to this section may establish different retirement benefits pursuant to the formula specified in subdivision (b) for different bargaining units of safety employees and the unrepresented groups of safety employees in similar job classifications and the supervisors and managers of those employees. (d) A resolution, ordinance, contract, or contract amendment adopted pursuant to this section may require safety members hired on and after January 1, 2013, to pay part of the contributions by a member or employer, or both. The payment by a safety member shall become part of the accumulated contributions of the safety member. For those safety members who are represented by a bargaining unit, the contribution rates and any changes to those rates shall not be effective until approved in a memorandum of understanding executed by the board of supervisors and the employee representatives, and any changes to those rates shall not be imposed using impasse procedures. Nothing in this section shall be construed to limit the authority of a county to reduce or eliminate the pickup by the county of the member's contribution after fulfilling its obligation to meet and confer pursuant to Section 3505. (e) This section shall only apply to safety members who are hired on or after January 1, 2013. The formula may apply to safety members in collective bargaining units and to unrepresented safety members. (f) This section shall not become operative unless and until the county board of supervisors, by resolution or ordinance adopted by a majority vote, makes this section operative in the county.   SECTION 1.   The Legislature finds and declares that the purpose of this act is to approve addenda to memoranda of understanding entered into by the state employer and the state bargaining units that require the expenditure of funds.   SEC. 2.   The provisions of the addenda to memoranda of understanding entered into by the state employer and the state bargaining units that require the expenditure of funds are hereby approved for the purposes of Section 3517.63 of the Government Code in accordance with the following schedule:   SEC. 3.   The provisions of the addenda to memoranda of understanding approved by Section 2 of this act that require the expenditure of funds shall not take effect unless funds for these provisions are specifically appropriated by the Legislature or already exist within available appropriations. If funds for these provisions are not specifically appropriated by the Legislature, the state employer and the affected employee organization shall meet and confer to renegotiate the affected provisions of the addendum.