California 2015 2015-2016 Regular Session

California Assembly Bill AB1878 Introduced / Bill

Filed 02/10/2016

 BILL NUMBER: AB 1878INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Jones-Sawyer FEBRUARY 10, 2016 An act to amend Section 21623 of the Government Code, relating to public employees' retirement, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGEST AB 1878, as introduced, Jones-Sawyer. Public Employees' Retirement System: school members: postretirement death benefit. The Public Employees' Retirement Law requires that, upon the death of any state or school member after retirement and while receiving a retirement allowance, the sum of $2,000 be paid to the member's designated beneficiary, as specified. Existing law provides that the additional employer contributions required to fund this benefit be computed as a level percentage of member compensation, and these are deposited in the Public Employees' Retirement Fund, a continuously appropriated fund. This bill, on and after January 1, 2017, would increase the amount of payment to school members, described above, to $7,045. By increasing contributions to the Public Employees' Retirement Fund, this bill would make an appropriation. Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 21623 of the Government Code is amended to read: 21623. (a)  (1)    In lieu of benefits provided by Section 21620 or 21622, upon the death of any retired state  or school  member, after retirement and while receiving a retirement allowance from this system, there shall be paid to the beneficiary whom he or she shall nominate by written designation duly executed and filed with the board, the sum of two thousand dollars ($2,000), to be provided from contributions by the employer.  (2) On and after January 1, 2017, in lieu of benefits provided by Section 21620 or 21622, upon the death of any retired school member, after retirement and while receiving a retirement allowance from this system, there shall be paid to the beneficiary whom he or she shall nominate by written designation duly executed and filed with the board, the sum of seven thousand forty-five dollars ($7,045), to be provided from contributions by the employer.  (b) For the purposes of this section, all contributions, liabilities, actuarial interest rates, and other valuation factors shall be determined on the basis of actuarial assumptions and methods that, in the aggregate, are reasonable and that, in combination, offer the actuary's best estimate of anticipated experience under this system. (c) The additional employer contributions required under this section shall be computed as a level percentage of member compensation. (d) This section shall apply to a school employer and a retired school member whose death after retirement occurs on or after January 1, 2001. This section shall not apply to any contracting agency or local member, except those contracting agencies that are school employers and those school districts or community college districts as defined in subdivision (i) of Section 20057.