CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 681Introduced by Senator MoorlachFebruary 17, 2017 An act relating to public employees retirement. LEGISLATIVE COUNSEL'S DIGESTSB 681, as introduced, Moorlach. Public employees retirement.The Public Employees Retirement Law 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. That law authorizes any public agency to make its employees members of PERS by contracting with the Board of Administration of PERS. Existing law provides for the termination of a contract, including requiring the board to enter, upon request, into a prescribed agreement with the terminating agency relating to the calculation of final compensation for employees and related necessary adjustments in the employers contribution.This bill would state the intent of the Legislature to subsequently amend this bill to include provisions to allow the governing body of a public agency that contracts with PERS for employee retirement benefits to terminate its contract with the system in a manner that does not result in excessive costs or penalties to the agency, to allow a public agency terminating its contract to have the ability to withdraw its assets paid into the system with the same rote of return, and to ensure that a public agency that terminates its contract with the system shall remain responsible for any of its unfunded liabilities.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. It is the intent of the Legislature to subsequently amend this measure to include provisions as follows:(a) To allow the governing body of a public agency that contracts with the Public Employees Retirement System (PERS) for employee retirement benefits to terminate its contract with the system in a manner that does not result in excessive costs or penalties to the public agency.(b) To allow a public agency that terminates its contract with the system to have the ability to withdraw its assets paid into the system with the original assumed rate of return included in the withdrawal.(c) To ensure that a public agency that terminates its contract with the system shall remain responsible for any of its unfunded liabilities for employee retirement benefits so that those liabilities are not shifted onto other participants in PERS.
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 681Introduced by Senator MoorlachFebruary 17, 2017 An act relating to public employees retirement. LEGISLATIVE COUNSEL'S DIGESTSB 681, as introduced, Moorlach. Public employees retirement.The Public Employees Retirement Law 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. That law authorizes any public agency to make its employees members of PERS by contracting with the Board of Administration of PERS. Existing law provides for the termination of a contract, including requiring the board to enter, upon request, into a prescribed agreement with the terminating agency relating to the calculation of final compensation for employees and related necessary adjustments in the employers contribution.This bill would state the intent of the Legislature to subsequently amend this bill to include provisions to allow the governing body of a public agency that contracts with PERS for employee retirement benefits to terminate its contract with the system in a manner that does not result in excessive costs or penalties to the agency, to allow a public agency terminating its contract to have the ability to withdraw its assets paid into the system with the same rote of return, and to ensure that a public agency that terminates its contract with the system shall remain responsible for any of its unfunded liabilities.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Senate Bill No. 681
Introduced by Senator MoorlachFebruary 17, 2017
Introduced by Senator Moorlach
February 17, 2017
An act relating to public employees retirement.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 681, as introduced, Moorlach. Public employees retirement.
The Public Employees Retirement Law 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. That law authorizes any public agency to make its employees members of PERS by contracting with the Board of Administration of PERS. Existing law provides for the termination of a contract, including requiring the board to enter, upon request, into a prescribed agreement with the terminating agency relating to the calculation of final compensation for employees and related necessary adjustments in the employers contribution.This bill would state the intent of the Legislature to subsequently amend this bill to include provisions to allow the governing body of a public agency that contracts with PERS for employee retirement benefits to terminate its contract with the system in a manner that does not result in excessive costs or penalties to the agency, to allow a public agency terminating its contract to have the ability to withdraw its assets paid into the system with the same rote of return, and to ensure that a public agency that terminates its contract with the system shall remain responsible for any of its unfunded liabilities.
The Public Employees Retirement Law 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. That law authorizes any public agency to make its employees members of PERS by contracting with the Board of Administration of PERS. Existing law provides for the termination of a contract, including requiring the board to enter, upon request, into a prescribed agreement with the terminating agency relating to the calculation of final compensation for employees and related necessary adjustments in the employers contribution.
This bill would state the intent of the Legislature to subsequently amend this bill to include provisions to allow the governing body of a public agency that contracts with PERS for employee retirement benefits to terminate its contract with the system in a manner that does not result in excessive costs or penalties to the agency, to allow a public agency terminating its contract to have the ability to withdraw its assets paid into the system with the same rote of return, and to ensure that a public agency that terminates its contract with the system shall remain responsible for any of its unfunded liabilities.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. It is the intent of the Legislature to subsequently amend this measure to include provisions as follows:(a) To allow the governing body of a public agency that contracts with the Public Employees Retirement System (PERS) for employee retirement benefits to terminate its contract with the system in a manner that does not result in excessive costs or penalties to the public agency.(b) To allow a public agency that terminates its contract with the system to have the ability to withdraw its assets paid into the system with the original assumed rate of return included in the withdrawal.(c) To ensure that a public agency that terminates its contract with the system shall remain responsible for any of its unfunded liabilities for employee retirement benefits so that those liabilities are not shifted onto other participants in PERS.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. It is the intent of the Legislature to subsequently amend this measure to include provisions as follows:(a) To allow the governing body of a public agency that contracts with the Public Employees Retirement System (PERS) for employee retirement benefits to terminate its contract with the system in a manner that does not result in excessive costs or penalties to the public agency.(b) To allow a public agency that terminates its contract with the system to have the ability to withdraw its assets paid into the system with the original assumed rate of return included in the withdrawal.(c) To ensure that a public agency that terminates its contract with the system shall remain responsible for any of its unfunded liabilities for employee retirement benefits so that those liabilities are not shifted onto other participants in PERS.
SECTION 1. It is the intent of the Legislature to subsequently amend this measure to include provisions as follows:(a) To allow the governing body of a public agency that contracts with the Public Employees Retirement System (PERS) for employee retirement benefits to terminate its contract with the system in a manner that does not result in excessive costs or penalties to the public agency.(b) To allow a public agency that terminates its contract with the system to have the ability to withdraw its assets paid into the system with the original assumed rate of return included in the withdrawal.(c) To ensure that a public agency that terminates its contract with the system shall remain responsible for any of its unfunded liabilities for employee retirement benefits so that those liabilities are not shifted onto other participants in PERS.
SECTION 1. It is the intent of the Legislature to subsequently amend this measure to include provisions as follows:
### SECTION 1.
(a) To allow the governing body of a public agency that contracts with the Public Employees Retirement System (PERS) for employee retirement benefits to terminate its contract with the system in a manner that does not result in excessive costs or penalties to the public agency.
(b) To allow a public agency that terminates its contract with the system to have the ability to withdraw its assets paid into the system with the original assumed rate of return included in the withdrawal.
(c) To ensure that a public agency that terminates its contract with the system shall remain responsible for any of its unfunded liabilities for employee retirement benefits so that those liabilities are not shifted onto other participants in PERS.