California 2017-2018 Regular Session

California Senate Bill SB681 Compare Versions

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Version 2 (New)

Old	New		Differences
1		-	~~Amended IN Senate April 17, 2017~~ CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 681Introduced by Senator MoorlachFebruary 17, 2017 An act ~~to add Section 20570.1 to the Government Code,~~ relating to public employees retirement. LEGISLATIVE COUNSEL'S DIGESTSB 681, as ~~amended~~, Moorlach. Public employees retirement~~. retirement: contracting agencies: termination~~.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. require the Board of Administration of PERS to allow a contracting agency to terminate its contract with the system in a manner that does not result in excessive costs or penalties to the contracting agency, allows the contracting agency to withdraw its net assets paid into the system less payments made to its members and their beneficiaries, and ensures that the contracting agency remains responsible for its unfunded liabilities so that those liabilities are not shifted onto other PERS members or employers. Before a contracting agency would be eligible to terminate its contract, the bill would require a contract to have been in effect for at least 5 years and meet other notice and approval requirements. The bill also would require the agreement between the contracting agency and the board to contain provisions to protect the interests of the system, and would require a contracting agency, before terminating its contract, to determine how termination would affect the health care benefits of its members and also to determine the federal tax ramifications associated with its decision. The bill would contain related legislative findings.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: ~~NOYES~~ 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: ~~do the following:~~(a) To ~~allow~~ 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 ~~Allow~~ a public agency that terminates its contract with the system to have the ability to withdraw its ~~net~~ assets paid into the system with the original assumed rate of return included in the withdrawal. ~~system, less payments made to its members and their beneficiaries.~~(c) To ~~ensure~~ 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. SEC. 2. Section 20570.1 is added to the Government Code, to read:20570.1. (a) Notwithstanding any other law, the board shall allow a contracting agency to terminate its contract with the system in a manner that does all of the following:(1) Does not result in excessive costs or penalties to the contracting agency.(2) Allows the contracting agency to withdraw its net assets paid into the system, less payments made to its members and their beneficiaries.(3) Ensures that the contracting agency remains responsible for its unfunded liabilities for employee retirement benefits so that those liabilities are not shifted onto other participants in the system.(b) For a contracting agency to be eligible to terminate its contract, the contract shall be in effect for at least five years and approved by an ordinance or resolution adopted by the governing body of the contracting agency. The governing body may terminate the contract by the adoption of a resolution giving notice of intention to terminate, and by the adoption, not less than one year thereafter by the affirmative vote of two-thirds of the members of the governing body, of an ordinance or resolution terminating the contract. Upon board approval, termination shall be effective on the date designated in the ordinance or resolution terminating the contract.(c) The agreement between the contracting agency and the board shall contain provisions to protect the interests of the system, including provisions for determining the amount, time, and manner of transfer of cash or securities, or both, to be transferred to the contracting agency representing the value of the contracting agencys interests in the retirement fund and its employees interests based on accumulated contributions and accumulated rate of return, to be credited to the agency and its employees.(d) A contracting agency, before terminating its contract with the system, shall determine how termination would affect the health care benefits of its members and also shall determine the federal tax ramifications associated with its decision.
	1	+	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.
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3		-	~~Amended IN Senate April 17, 2017~~ CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 681Introduced by Senator MoorlachFebruary 17, 2017 An act ~~to add Section 20570.1 to the Government Code,~~ relating to public employees retirement. LEGISLATIVE COUNSEL'S DIGESTSB 681, as ~~amended~~, Moorlach. Public employees retirement~~. retirement: contracting agencies: termination~~.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. require the Board of Administration of PERS to allow a contracting agency to terminate its contract with the system in a manner that does not result in excessive costs or penalties to the contracting agency, allows the contracting agency to withdraw its net assets paid into the system less payments made to its members and their beneficiaries, and ensures that the contracting agency remains responsible for its unfunded liabilities so that those liabilities are not shifted onto other PERS members or employers. Before a contracting agency would be eligible to terminate its contract, the bill would require a contract to have been in effect for at least 5 years and meet other notice and approval requirements. The bill also would require the agreement between the contracting agency and the board to contain provisions to protect the interests of the system, and would require a contracting agency, before terminating its contract, to determine how termination would affect the health care benefits of its members and also to determine the federal tax ramifications associated with its decision. The bill would contain related legislative findings.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: ~~NOYES~~ Local Program: NO
	3	+	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
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5		-	Amended IN Senate April 17, 2017
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7		-	Amended IN Senate April 17, 2017
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9	9		CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
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11	11		Senate Bill No. 681
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13	13		Introduced by Senator MoorlachFebruary 17, 2017
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15	15		Introduced by Senator Moorlach
16	16		February 17, 2017
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18		-	An act ~~to add Section 20570.1 to the Government Code,~~ relating to public employees retirement.
	18	+	An act relating to public employees retirement.
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20	20		LEGISLATIVE COUNSEL'S DIGEST
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22	22		## LEGISLATIVE COUNSEL'S DIGEST
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24		-	SB 681, as ~~amended~~, Moorlach. Public employees retirement. ~~retirement: contracting agencies: termination.~~
	24	+	SB 681, as introduced, Moorlach. Public employees retirement.
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26		-	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. require the Board of Administration of PERS to allow a contracting agency to terminate its contract with the system in a manner that does not result in excessive costs or penalties to the contracting agency, allows the contracting agency to withdraw its net assets paid into the system less payments made to its members and their beneficiaries, and ensures that the contracting agency remains responsible for its unfunded liabilities so that those liabilities are not shifted onto other PERS members or employers. Before a contracting agency would be eligible to terminate its contract, the bill would require a contract to have been in effect for at least 5 years and meet other notice and approval requirements. The bill also would require the agreement between the contracting agency and the board to contain provisions to protect the interests of the system, and would require a contracting agency, before terminating its contract, to determine how termination would affect the health care benefits of its members and also to determine the federal tax ramifications associated with its decision. The bill would contain related legislative findings.
	26	+	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.
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28	28		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.
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30		-	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. require the Board of Administration of PERS to allow a contracting agency to terminate its contract with the system in a manner that does not result in excessive costs or penalties to the contracting agency, allows the contracting agency to withdraw its net assets paid into the system less payments made to its members and their beneficiaries, and ensures that the contracting agency remains responsible for its unfunded liabilities so that those liabilities are not shifted onto other PERS members or employers. Before a contracting agency would be eligible to terminate its contract, the bill would require a contract to have been in effect for at least 5 years and meet other notice and approval requirements. The bill also would require the agreement between the contracting agency and the board to contain provisions to protect the interests of the system, and would require a contracting agency, before terminating its contract, to determine how termination would affect the health care benefits of its members and also to determine the federal tax ramifications associated with its decision. The bill would contain related legislative findings.
	30	+	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.
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32	32		## Digest Key
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34	34		## Bill Text
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36		-	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: ~~do the following:~~(a) To ~~allow~~ 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 ~~Allow~~ a public agency that terminates its contract with the system to have the ability to withdraw its ~~net~~ assets paid into the system with the original assumed rate of return included in the withdrawal. ~~system, less payments made to its members and their beneficiaries.~~(c) To ~~ensure~~ 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. SEC. 2. Section 20570.1 is added to the Government Code, to read:20570.1. (a) Notwithstanding any other law, the board shall allow a contracting agency to terminate its contract with the system in a manner that does all of the following:(1) Does not result in excessive costs or penalties to the contracting agency.(2) Allows the contracting agency to withdraw its net assets paid into the system, less payments made to its members and their beneficiaries.(3) Ensures that the contracting agency remains responsible for its unfunded liabilities for employee retirement benefits so that those liabilities are not shifted onto other participants in the system.(b) For a contracting agency to be eligible to terminate its contract, the contract shall be in effect for at least five years and approved by an ordinance or resolution adopted by the governing body of the contracting agency. The governing body may terminate the contract by the adoption of a resolution giving notice of intention to terminate, and by the adoption, not less than one year thereafter by the affirmative vote of two-thirds of the members of the governing body, of an ordinance or resolution terminating the contract. Upon board approval, termination shall be effective on the date designated in the ordinance or resolution terminating the contract.(c) The agreement between the contracting agency and the board shall contain provisions to protect the interests of the system, including provisions for determining the amount, time, and manner of transfer of cash or securities, or both, to be transferred to the contracting agency representing the value of the contracting agencys interests in the retirement fund and its employees interests based on accumulated contributions and accumulated rate of return, to be credited to the agency and its employees.(d) A contracting agency, before terminating its contract with the system, shall determine how termination would affect the health care benefits of its members and also shall determine the federal tax ramifications associated with its decision.
	36	+	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.
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38	38		The people of the State of California do enact as follows:
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40	40		## The people of the State of California do enact as follows:
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42		-	SECTION 1. It is the intent of the Legislature to subsequently amend this measure to include provisions as follows: ~~do the following:~~(a) To ~~allow~~ 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 ~~Allow~~ a public agency that terminates its contract with the system to have the ability to withdraw its ~~net~~ assets paid into the system with the original assumed rate of return included in the withdrawal. ~~system, less payments made to its members and their beneficiaries.~~(c) To ~~ensure~~ 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.
	42	+	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.
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44		-	SECTION 1. It is the intent of the Legislature to subsequently amend this measure to include provisions as follows: ~~do the following:~~(a) To ~~allow~~ 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 ~~Allow~~ a public agency that terminates its contract with the system to have the ability to withdraw its ~~net~~ assets paid into the system with the original assumed rate of return included in the withdrawal. ~~system, less payments made to its members and their beneficiaries.~~(c) To ~~ensure~~ 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.
	44	+	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.
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46		-	SECTION 1. It is the intent of the Legislature to subsequently amend this measure to include provisions as follows: ~~do the following:~~
	46	+	SECTION 1. It is the intent of the Legislature to subsequently amend this measure to include provisions as follows:
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48	48		### SECTION 1.
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50		-	(a) To ~~allow~~ 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.
	50	+	(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.
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52		-	(b) To ~~allow~~ Allow a public agency that terminates its contract with the system to have the ability to withdraw its ~~net~~ assets paid into the system with the original assumed rate of return included in the withdrawal. ~~system, less payments made to its members and their beneficiaries.~~
	52	+	(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.
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54		-	(c) To ensure 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.
55		-
56		-	SEC. 2. Section 20570.1 is added to the Government Code, to read:20570.1. (a) Notwithstanding any other law, the board shall allow a contracting agency to terminate its contract with the system in a manner that does all of the following:(1) Does not result in excessive costs or penalties to the contracting agency.(2) Allows the contracting agency to withdraw its net assets paid into the system, less payments made to its members and their beneficiaries.(3) Ensures that the contracting agency remains responsible for its unfunded liabilities for employee retirement benefits so that those liabilities are not shifted onto other participants in the system.(b) For a contracting agency to be eligible to terminate its contract, the contract shall be in effect for at least five years and approved by an ordinance or resolution adopted by the governing body of the contracting agency. The governing body may terminate the contract by the adoption of a resolution giving notice of intention to terminate, and by the adoption, not less than one year thereafter by the affirmative vote of two-thirds of the members of the governing body, of an ordinance or resolution terminating the contract. Upon board approval, termination shall be effective on the date designated in the ordinance or resolution terminating the contract.(c) The agreement between the contracting agency and the board shall contain provisions to protect the interests of the system, including provisions for determining the amount, time, and manner of transfer of cash or securities, or both, to be transferred to the contracting agency representing the value of the contracting agencys interests in the retirement fund and its employees interests based on accumulated contributions and accumulated rate of return, to be credited to the agency and its employees.(d) A contracting agency, before terminating its contract with the system, shall determine how termination would affect the health care benefits of its members and also shall determine the federal tax ramifications associated with its decision.
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58		-	SEC. 2. Section 20570.1 is added to the Government Code, to read:
59		-
60		-	### SEC. 2.
61		-
62		-	20570.1. (a) Notwithstanding any other law, the board shall allow a contracting agency to terminate its contract with the system in a manner that does all of the following:(1) Does not result in excessive costs or penalties to the contracting agency.(2) Allows the contracting agency to withdraw its net assets paid into the system, less payments made to its members and their beneficiaries.(3) Ensures that the contracting agency remains responsible for its unfunded liabilities for employee retirement benefits so that those liabilities are not shifted onto other participants in the system.(b) For a contracting agency to be eligible to terminate its contract, the contract shall be in effect for at least five years and approved by an ordinance or resolution adopted by the governing body of the contracting agency. The governing body may terminate the contract by the adoption of a resolution giving notice of intention to terminate, and by the adoption, not less than one year thereafter by the affirmative vote of two-thirds of the members of the governing body, of an ordinance or resolution terminating the contract. Upon board approval, termination shall be effective on the date designated in the ordinance or resolution terminating the contract.(c) The agreement between the contracting agency and the board shall contain provisions to protect the interests of the system, including provisions for determining the amount, time, and manner of transfer of cash or securities, or both, to be transferred to the contracting agency representing the value of the contracting agencys interests in the retirement fund and its employees interests based on accumulated contributions and accumulated rate of return, to be credited to the agency and its employees.(d) A contracting agency, before terminating its contract with the system, shall determine how termination would affect the health care benefits of its members and also shall determine the federal tax ramifications associated with its decision.
63		-
64		-	20570.1. (a) Notwithstanding any other law, the board shall allow a contracting agency to terminate its contract with the system in a manner that does all of the following:(1) Does not result in excessive costs or penalties to the contracting agency.(2) Allows the contracting agency to withdraw its net assets paid into the system, less payments made to its members and their beneficiaries.(3) Ensures that the contracting agency remains responsible for its unfunded liabilities for employee retirement benefits so that those liabilities are not shifted onto other participants in the system.(b) For a contracting agency to be eligible to terminate its contract, the contract shall be in effect for at least five years and approved by an ordinance or resolution adopted by the governing body of the contracting agency. The governing body may terminate the contract by the adoption of a resolution giving notice of intention to terminate, and by the adoption, not less than one year thereafter by the affirmative vote of two-thirds of the members of the governing body, of an ordinance or resolution terminating the contract. Upon board approval, termination shall be effective on the date designated in the ordinance or resolution terminating the contract.(c) The agreement between the contracting agency and the board shall contain provisions to protect the interests of the system, including provisions for determining the amount, time, and manner of transfer of cash or securities, or both, to be transferred to the contracting agency representing the value of the contracting agencys interests in the retirement fund and its employees interests based on accumulated contributions and accumulated rate of return, to be credited to the agency and its employees.(d) A contracting agency, before terminating its contract with the system, shall determine how termination would affect the health care benefits of its members and also shall determine the federal tax ramifications associated with its decision.
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66		-	20570.1. (a) Notwithstanding any other law, the board shall allow a contracting agency to terminate its contract with the system in a manner that does all of the following:(1) Does not result in excessive costs or penalties to the contracting agency.(2) Allows the contracting agency to withdraw its net assets paid into the system, less payments made to its members and their beneficiaries.(3) Ensures that the contracting agency remains responsible for its unfunded liabilities for employee retirement benefits so that those liabilities are not shifted onto other participants in the system.(b) For a contracting agency to be eligible to terminate its contract, the contract shall be in effect for at least five years and approved by an ordinance or resolution adopted by the governing body of the contracting agency. The governing body may terminate the contract by the adoption of a resolution giving notice of intention to terminate, and by the adoption, not less than one year thereafter by the affirmative vote of two-thirds of the members of the governing body, of an ordinance or resolution terminating the contract. Upon board approval, termination shall be effective on the date designated in the ordinance or resolution terminating the contract.(c) The agreement between the contracting agency and the board shall contain provisions to protect the interests of the system, including provisions for determining the amount, time, and manner of transfer of cash or securities, or both, to be transferred to the contracting agency representing the value of the contracting agencys interests in the retirement fund and its employees interests based on accumulated contributions and accumulated rate of return, to be credited to the agency and its employees.(d) A contracting agency, before terminating its contract with the system, shall determine how termination would affect the health care benefits of its members and also shall determine the federal tax ramifications associated with its decision.
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70		-	20570.1. (a) Notwithstanding any other law, the board shall allow a contracting agency to terminate its contract with the system in a manner that does all of the following:
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72		-	(1) Does not result in excessive costs or penalties to the contracting agency.
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74		-	(2) Allows the contracting agency to withdraw its net assets paid into the system, less payments made to its members and their beneficiaries.
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76		-	(3) Ensures that the contracting agency remains responsible for its unfunded liabilities for employee retirement benefits so that those liabilities are not shifted onto other participants in the system.
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78		-	(b) For a contracting agency to be eligible to terminate its contract, the contract shall be in effect for at least five years and approved by an ordinance or resolution adopted by the governing body of the contracting agency. The governing body may terminate the contract by the adoption of a resolution giving notice of intention to terminate, and by the adoption, not less than one year thereafter by the affirmative vote of two-thirds of the members of the governing body, of an ordinance or resolution terminating the contract. Upon board approval, termination shall be effective on the date designated in the ordinance or resolution terminating the contract.
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80		-	(c) The agreement between the contracting agency and the board shall contain provisions to protect the interests of the system, including provisions for determining the amount, time, and manner of transfer of cash or securities, or both, to be transferred to the contracting agency representing the value of the contracting agencys interests in the retirement fund and its employees interests based on accumulated contributions and accumulated rate of return, to be credited to the agency and its employees.
81		-
82		-	(d) A contracting agency, before terminating its contract with the system, shall determine how termination would affect the health care benefits of its members and also shall determine the federal tax ramifications associated with its decision.
	54	+	(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.