California Senate Bill SB987 Amended / Bill

 BILL NUMBER: SB 987AMENDED BILL TEXT AMENDED IN SENATE MARCH 26, 2012 INTRODUCED BY Senator Negrete McLeod JANUARY 31, 2012 An act to amend  Section 21175   Sections 20572, 21002, 21004, and 75502  of  , and to add Sections 9351.4, 20065.5, and 75004.5 to,  the Government Code, relating to public employees' retirement. LEGISLATIVE COUNSEL'S DIGEST SB 987, as amended, Negrete McLeod.  Disability retirement: medical examination.   Public employees' retirement.   (1) The Public Employees' Retirement Law (PERL) creates the Public Employees' Retirement System (PERS), which provides a defined benefit to its members based on age at retirement, service credit, and final compensation. Existing law also establishes the Judges' Retirement System and the Judges' Retirement System II which provide pension benefits to elected judges and the Legislators' Retirement System which provides pension benefits to elective officers of the state other than judges and to legislative statutory officers.   This bill would provide that all references to "spouse," "surviving spouse," or "marriage" in these provisions apply equally to a domestic partner or domestic partnership, as defined, and all rights and responsibilities granted to a spouse or surviving spouse shall be granted equally to a domestic partner, as specified.   (2) PERL authorizes the Board of Administration of PERS to terminate a contract with a contracting agency that fails to pay any installment of contributions into the Public Employees' Retirement Fund, to file any information required in the administration of PERS with respect to that agency's employees, or if the board determines that the agency is no longer in existence, as specified.   This bill would clarify that authorization to terminate a contract with a contracting agency that no longer qualifies as a public agency.   (3) PERL defines "leave of absence" to include absence from state service because of illness that arose out of and in the course of employment and for which the member received temporary disability benefits during the absence and did not receive full compensation, as specified. PERL authorizes a member who returns to active service following an employer-approved uncompensated leave of absence because of his or her serious illness to purchase service credit for that period of absence, as specified.   This bill would clarify that definition to include absence from state service because of illness or injury that arose out of and in the course of employment, and would authorize the purchase of service credit following an employer-approved uncompensated leave of absence because of the member's serious illness or injury.   The Public Employees' Retirement Law (PERL) provides a comprehensive set of rights and benefits based upon age, service credit, and final compensation to members of the Public Employees' Retirement System. Under PERL, if a recipient of a disability retirement allowance who is under the minimum age for voluntary retirement for service applicable to members of his or her class refuses to submit to a medical examination, the pension portions of his or her allowance may be discontinued until his or her withdrawal of the refusal, or canceled if the refusal continues for one year.   This bill would make technical, nonsubstantive changes to this 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 9351.4 is added to the   Government Code   , to read:   9351.4. All references to "spouse," "surviving spouse," or "marriage" in this chapter apply equally to a domestic partner or domestic partnership, as defined in Section 297 of the Family Code, and all rights and responsibilities granted to a spouse or surviving spouse shall be granted equally to a domestic partner to the extent provided by Section 297.5 of the Family Code.   SEC. 2.   Section 20065.5 is added to the   Government Code   , to read:   20065.5. All references to "spouse," "surviving spouse," or "marriage" in this part apply equally to a domestic partner or domestic partnership, as defined in Section 297 of the Family Code, and all rights and responsibilities granted to a spouse or surviving spouse shall be granted equally to a domestic partner to the extent provided by Section 297.5 of the Family Code.   SEC. 3.   Section 20572 of the   Government Code   is amended to read:  20572. (a) If a contracting agency fails for 30 days after demand by the board to pay any installment of contributions required by its contract, or fails for three months after demand by the board therefor to file any information required in the administration of this system with respect to that agency's employees, or if the board determines that the agency is no longer in existence  or that it no longer qualifies as a public agency as set forth in this part  , the board may terminate that contract by resolution adopted by a majority vote of its members effective 60 days after notice of its adoption has been mailed by registered mail to the governing body of the contracting agency. (b) Notwithstanding Section 20537, if a contracting agency fails to remit the contributions when due, the agency may be assessed interest at an annual rate of 10 percent and the costs of collection, including reasonable legal fees, when necessary to collect the amounts due. In the case of repeated delinquencies, the contracting agency may be assessed a penalty of 10 percent of the delinquent amount. That penalty may be assessed once during each 30-day period that the amount remains unpaid.  SEC. 4.   Section 21002 of the   Government Code   is amended to read:  21002. A member who returns to active service following an employer-approved uncompensated leave of absence because of his or her serious illness  or injury  may purchase service credit for that period of absence upon the payment of contributions as specified in Sections 21050 and 21052. The purchase of additional service credit pursuant to this paragraph shall not reduce the amount of service credit that the member is eligible to purchase pursuant to this chapter. A member may purchase service credit pursuant to this section for a leave of absence that occurred either before or after the effective date of these provisions.  SEC. 5.   Section 21004 of the   Government Code   is amended to read:  21004. "Leave of absence" also means absence from state service because of illness  or injury  that arose out of and in the course of employment and for which the member received temporary disability benefits under the Labor Code during the absence and did not receive full compensation as distinguished from the disability benefits for the period of absence.  SEC. 6.   Section 75004.5 is added to the   Government Code   , to read:   75004.5. All references to "spouse," "surviving spouse," or "marriage" in this chapter apply equally to a domestic partner or domestic partnership, as defined in Section 297 of the Family Code, and all rights and responsibilities granted to a spouse or surviving spouse shall be granted equally to a domestic partner to the extent provided by Section 297.5 of the Family Code.   SEC. 7.   Section 75502 of the   Government Code   is amended to read:  75502. (a) "Judge" means a justice of the Supreme Court or of a court of appeal, or a judge of a superior court, municipal court, or justice court who is first elected or appointed to judicial office on or after November 9, 1994, and is not a member of the Judges' Retirement System pursuant to Chapter 11 (commencing with Section 75000). A retired judge does not acquire status as a judge for the purposes of this chapter by reason of designation as a temporary judge of, or assignment by the Chairperson of the Judicial Council to, any of these courts. A former member of the Judges' Retirement System under Section 75002 who withdrew his or her contributions upon leaving office, and who takes judicial office on or after November 9, 1994, becomes a member of the system existing under Chapter 11 (commencing with Section 75000) and does not become a member of the Judges' Retirement System II. No person shall be a member of the Judges' Retirement System II who is or ever has been a member of the Judges' Retirement System pursuant to Chapter 11 (commencing with Section 75000). (b) "System" means the Judges' Retirement System II established by this chapter. (c) "Service" means the period of time a judge received a salary and made contributions to the system by reason of holding office as a judge of any one or more of the courts of this state specified in subdivision (a), computed in years and fractions of years. (d) "Final compensation" means the average monthly salary of a judge during the 12 months immediately preceding his or her retirement from or otherwise leaving judicial office and as limited by Section 75572. (e) "Benefit factor" means the percentage used in calculating a judge's monthly retirement allowance under Section 75522. (f) "Contributions" means the accumulated deductions from the judge's salary under Sections 75601 and 75602. References to payment to a judge of his or her contributions or to the determination of a judge's and spouse's shares in the contributions include both the contributions and interest thereon at the rates determined by the Board of Administration of the Public Employees' Retirement System. (g) "Salary" means the compensation received by a judge as the emolument of the office of judge, but does not include any additional compensation received by reason of designation as a temporary judge or assignment by the Chairperson of the Judicial Council or the additional compensation pursuant to Section 68203.1. (h) "Board" means the Board of Administration of the Public Employees' Retirement System. (i) "Fund" or "retirement fund" means the Judges' Retirement System II Fund established pursuant to Section 75600.  (j) All references to "spouse," "surviving spouse," or "marriage" in this chapter apply equally to a domestic partner or domestic partnership, as defined in Section 297 of the Family Code, and all rights and responsibilities granted to a spouse or surviving spouse shall be granted equally to a domestic partner to the extent provided by Section 297.5 of the Family Code.   SECTION 1.   Section 21175 of the Government Code is amended to read: 21175. If a recipient of a disability retirement allowance who is under the minimum age for voluntary retirement for service applicable to members of his or her class refuses to submit to medical examination, the pension portions of his or her allowance may be discontinued until his or her withdrawal of the refusal. If the refusal continues for one year, his or her disability retirement allowance may be canceled.