California Senate Bill SB689 Latest Draft

 BILL NUMBER: SB 689AMENDED BILL TEXT AMENDED IN SENATE APRIL 26, 2011 AMENDED IN SENATE MARCH 25, 2011 INTRODUCED BY Senator Harman FEBRUARY 18, 2011  An act to amend Sections 7503 and 7504 of the Government Code, relating to public retirement systems.   An act to add Section 7504.5 to the Government Code, relating to public retirement systems.  LEGISLATIVE COUNSEL'S DIGEST SB 689, as amended, Harman. Public retirement systems. Existing law requires all state and local public retirement systems to prepare an annual report in accordance with generally accepted accounting principles.  This bill would require those reports to be prepared quarterly.   Existing law also requires all state and local public retirement systems to secure, not less than triennially, the services of an enrolled actuary.   This bill would require those systems instead to secure those services not less than biennially.  Existing law also requires the Controller to compile and publish a report annually on the financial condition of all state and local public retirement systems containing specified data. This bill would require  that report to include   , on or before July 1, 2012, the Public Employees' Retirement System, the State Teachers' Retirement System, and the University of California Retirement System each to establish and maintain an Internet Web site that allows the public to access  specified information about any retired member who receives a pension of $100,000 or more annually  . The bill would also require that report to be filed with the Legislature, the Department of Finance, and the Legislative Analyst's Office   , and specified information regarding   the costs of postretirement health care benefits  . 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 7504.5 is added to the   Government Code   , to read:   7504.5. (a) On or before July 1, 2012, the Public Employees' Retirement System, the State Teachers' Retirement System, and the University of California Retirement System each shall establish and maintain an Internet Web site that allows the public to access information pertaining to the costs of pensions and postretirement health care benefits. The information shall be updated no less than quarterly. (b) The information posted on the Internet Web site required by subdivision (a) shall include all of the following information: (1) The following information regarding any retired member who receives a pension of one hundred thousand dollars ($100,000) or more annually: (A) The classification from which the member retired. (B) The department or agency from which the member retired. (C) The amount of the pension that the member receives annually. (2) The following information regarding postretirement health care benefits for all retired members of the system: (A) The total cost of employer contributions paid for annuitants since the last update. (B) The difference in dollars between the costs in subparagraph (A) in the current reporting period and the previous reporting period. (C) The difference as a percentage between the costs in subparagraph (A) in the current reporting period and the previous reporting period.   SEC. 2.   The Legislature finds and declares that to ensure the security of the University of California funds, including retirement funds, it is necessary for this act to apply to the University of California.  SECTION 1.   Section 7503 of the Government Code is amended to read: 7503. All state and local public retirement systems shall prepare a quarterly report in accordance with generally accepted accounting principles.   SEC. 2.   Section 7504 of the Government Code is amended to read: 7504. (a) All state and local public retirement systems shall secure, not less than biennially, the services of an enrolled actuary. An enrolled actuary, for the purposes of this section, means an actuary enrolled under subtitle C of Title III of the federal Employee Retirement Income Security Act of 1974 (Public Law 93-406) and who has demonstrated experience in public retirement systems. The actuary shall perform a valuation of the system utilizing actuarial assumptions and techniques established by the agency that are, in the aggregate, reasonably related to the experience and the actuary's best estimate of anticipated experience under the system. Any differences between the actuarial assumptions and techniques used by the actuary that differ significantly from those established by the agency shall be disclosed in the actuary's report and the effect of the differences on the actuary's statement of costs and obligations shall be shown. (b) All state and local public retirement systems shall secure the services of a qualified person to perform an attest audit of the system's financial statements. A qualified person means any of the following: (1) A person who is licensed to practice as a certified public accountant in this state by the California Board of Accountancy. (2) A person who is registered and entitled to practice as a public accountant in this state by the California Board of Accountancy. (3) A county auditor in any county subject to the County Employees Retirement Law of 1937 (Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3). (4) A county auditor in any county having a pension trust and retirement plan established pursuant to Section 53216. (c) All state and local public retirement systems shall submit audited financial statements to the Controller at the earliest practicable opportunity within six months of the close of each fiscal year. However, the Controller may delay the filing date for reports due in the first year until the time as report forms have been developed that, in his or her judgment, will satisfy the requirements of this section. The financial statements shall be prepared in accordance with generally accepted accounting principles in the form and manner prescribed by the Controller. The penalty prescribed in Section 53895 shall be invoked for failure to comply with this section. Upon a satisfactory showing of good cause, the Controller may waive the penalty for late filing provided by this subdivision. (d) (1) Notwithstanding Section 10231.5, the Controller shall compile and publish a report annually on the financial condition of all state and local public retirement systems containing, but not limited to, the data required in Section 7502. The report shall be published within 12 months of the receipt of the information, and in no case later than 18 months after the end of the fiscal year upon which the information in the report is based. (2) The report required by this subdivision shall also include the following information regarding any retired member who receives a pension of one hundred thousand dollars ($100,000) or more annually: (A) The classification from which the member retired. (B) The department or agency from which the member retired. (C) The amount of the pension that the member receives annually. (3) The report required by this subdivision shall be filed with the Legislature, the Department of Finance, and the Legislative Analyst's Office.