| 1 | 1 | | CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 2394Introduced by Assembly Member CooperFebruary 18, 2020 An act to amend Section 21311 of the Government Code, relating to public employees retirement. LEGISLATIVE COUNSEL'S DIGESTAB 2394, as introduced, Cooper. Public Employees Retirement System: allowances: cost of living adjustment.Existing law, the Public Employees Retirement Law, establishes the Public Employees Retirement System, which provides a defined benefit to members of the system, based on final compensation, credited service, and age at retirement, subject to certain variations. Existing law generally provides that retirement allowances are adjusted annually to reflect increases in the cost of living in relation to the consumer price index, as defined. Existing law defines consumer price index for these purposes to mean the United States city average Consumer Price Index for All Urban Consumers, effective January 1, 1978. Existing law establishes the Department of Industrial Relations as an instrumentality of California government.This bill would change the definition of consumer price index, effective January 1, 2021, to instead refer to the California Consumer Price Index for All Urban Consumers for all items, as determined by the Department of Industrial Relations.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 21311 of the Government Code is amended to read:21311. The following definitions shall govern the application of this article:(a) Monthly allowance means any allowance payable monthly to a retired person, a survivor or beneficiary of a member or a retired person, other than a monthly installment of a basic death benefit, the commuted value of an unpaid temporary annuity, or an optional settlement 1, or allowances payable under Article 3 (commencing with Section 21570) of Chapter 14. There shall be excluded from the monthly allowance, for purposes of any adjustment under this article, any portion of the allowance derived from accumulated additional contributions of a member.(b) Base allowance means the amount of monthly allowance that would be payable to the recipient at the time of an annual adjustment under this article had this article not been enacted.(c) (1) Effective January 1, 1978, Consumer Price Index means the United States city average Consumer Price Index for All Urban Consumers. The Consumer Price Index for any period prior to January 1, 1978, means the United States city average consumer price index. Should the reference base of the consumer price indices (presently 195759=100) be changed, each of the indices used to determine the consumer price index as defined in this section will be the indices converted to the new base by standard statistical methods.(2) On and after January 1, 2021, Consumer Price Index means the California Consumer Price Index for All Urban Consumers for all items, as determined by the Department of Industrial Relations.(d) Base year means:(1) The calendar year 1965 for all members whose retirement occurred prior to January 1, 1966, and for the beneficiaries and survivors of those retired members.(2) The calendar year of retirement for all members whose retirement occurs after December 31, 1965, and for the beneficiaries and survivors of those members.(3) The calendar year 1965 for survivors of members whose death occurred before January 1, 1966.(4) The calendar year in which a members death occurs for survivors of members whose death occurred before retirement and on or after January 1, 1966. |
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| 3 | 3 | | CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 2394Introduced by Assembly Member CooperFebruary 18, 2020 An act to amend Section 21311 of the Government Code, relating to public employees retirement. LEGISLATIVE COUNSEL'S DIGESTAB 2394, as introduced, Cooper. Public Employees Retirement System: allowances: cost of living adjustment.Existing law, the Public Employees Retirement Law, establishes the Public Employees Retirement System, which provides a defined benefit to members of the system, based on final compensation, credited service, and age at retirement, subject to certain variations. Existing law generally provides that retirement allowances are adjusted annually to reflect increases in the cost of living in relation to the consumer price index, as defined. Existing law defines consumer price index for these purposes to mean the United States city average Consumer Price Index for All Urban Consumers, effective January 1, 1978. Existing law establishes the Department of Industrial Relations as an instrumentality of California government.This bill would change the definition of consumer price index, effective January 1, 2021, to instead refer to the California Consumer Price Index for All Urban Consumers for all items, as determined by the Department of Industrial Relations.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO |
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| 9 | 9 | | CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION |
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| 11 | 11 | | Assembly Bill |
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| 13 | 13 | | No. 2394 |
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| 15 | 15 | | Introduced by Assembly Member CooperFebruary 18, 2020 |
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| 17 | 17 | | Introduced by Assembly Member Cooper |
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| 18 | 18 | | February 18, 2020 |
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| 20 | 20 | | An act to amend Section 21311 of the Government Code, relating to public employees retirement. |
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| 21 | 21 | | |
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| 22 | 22 | | LEGISLATIVE COUNSEL'S DIGEST |
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| 24 | 24 | | ## LEGISLATIVE COUNSEL'S DIGEST |
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| 25 | 25 | | |
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| 26 | 26 | | AB 2394, as introduced, Cooper. Public Employees Retirement System: allowances: cost of living adjustment. |
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| 28 | 28 | | Existing law, the Public Employees Retirement Law, establishes the Public Employees Retirement System, which provides a defined benefit to members of the system, based on final compensation, credited service, and age at retirement, subject to certain variations. Existing law generally provides that retirement allowances are adjusted annually to reflect increases in the cost of living in relation to the consumer price index, as defined. Existing law defines consumer price index for these purposes to mean the United States city average Consumer Price Index for All Urban Consumers, effective January 1, 1978. Existing law establishes the Department of Industrial Relations as an instrumentality of California government.This bill would change the definition of consumer price index, effective January 1, 2021, to instead refer to the California Consumer Price Index for All Urban Consumers for all items, as determined by the Department of Industrial Relations. |
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| 30 | 30 | | Existing law, the Public Employees Retirement Law, establishes the Public Employees Retirement System, which provides a defined benefit to members of the system, based on final compensation, credited service, and age at retirement, subject to certain variations. Existing law generally provides that retirement allowances are adjusted annually to reflect increases in the cost of living in relation to the consumer price index, as defined. Existing law defines consumer price index for these purposes to mean the United States city average Consumer Price Index for All Urban Consumers, effective January 1, 1978. Existing law establishes the Department of Industrial Relations as an instrumentality of California government. |
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| 32 | 32 | | This bill would change the definition of consumer price index, effective January 1, 2021, to instead refer to the California Consumer Price Index for All Urban Consumers for all items, as determined by the Department of Industrial Relations. |
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| 33 | 33 | | |
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| 34 | 34 | | ## Digest Key |
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| 36 | 36 | | ## Bill Text |
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| 38 | 38 | | The people of the State of California do enact as follows:SECTION 1. Section 21311 of the Government Code is amended to read:21311. The following definitions shall govern the application of this article:(a) Monthly allowance means any allowance payable monthly to a retired person, a survivor or beneficiary of a member or a retired person, other than a monthly installment of a basic death benefit, the commuted value of an unpaid temporary annuity, or an optional settlement 1, or allowances payable under Article 3 (commencing with Section 21570) of Chapter 14. There shall be excluded from the monthly allowance, for purposes of any adjustment under this article, any portion of the allowance derived from accumulated additional contributions of a member.(b) Base allowance means the amount of monthly allowance that would be payable to the recipient at the time of an annual adjustment under this article had this article not been enacted.(c) (1) Effective January 1, 1978, Consumer Price Index means the United States city average Consumer Price Index for All Urban Consumers. The Consumer Price Index for any period prior to January 1, 1978, means the United States city average consumer price index. Should the reference base of the consumer price indices (presently 195759=100) be changed, each of the indices used to determine the consumer price index as defined in this section will be the indices converted to the new base by standard statistical methods.(2) On and after January 1, 2021, Consumer Price Index means the California Consumer Price Index for All Urban Consumers for all items, as determined by the Department of Industrial Relations.(d) Base year means:(1) The calendar year 1965 for all members whose retirement occurred prior to January 1, 1966, and for the beneficiaries and survivors of those retired members.(2) The calendar year of retirement for all members whose retirement occurs after December 31, 1965, and for the beneficiaries and survivors of those members.(3) The calendar year 1965 for survivors of members whose death occurred before January 1, 1966.(4) The calendar year in which a members death occurs for survivors of members whose death occurred before retirement and on or after January 1, 1966. |
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| 40 | 40 | | The people of the State of California do enact as follows: |
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| 42 | 42 | | ## The people of the State of California do enact as follows: |
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| 44 | 44 | | SECTION 1. Section 21311 of the Government Code is amended to read:21311. The following definitions shall govern the application of this article:(a) Monthly allowance means any allowance payable monthly to a retired person, a survivor or beneficiary of a member or a retired person, other than a monthly installment of a basic death benefit, the commuted value of an unpaid temporary annuity, or an optional settlement 1, or allowances payable under Article 3 (commencing with Section 21570) of Chapter 14. There shall be excluded from the monthly allowance, for purposes of any adjustment under this article, any portion of the allowance derived from accumulated additional contributions of a member.(b) Base allowance means the amount of monthly allowance that would be payable to the recipient at the time of an annual adjustment under this article had this article not been enacted.(c) (1) Effective January 1, 1978, Consumer Price Index means the United States city average Consumer Price Index for All Urban Consumers. The Consumer Price Index for any period prior to January 1, 1978, means the United States city average consumer price index. Should the reference base of the consumer price indices (presently 195759=100) be changed, each of the indices used to determine the consumer price index as defined in this section will be the indices converted to the new base by standard statistical methods.(2) On and after January 1, 2021, Consumer Price Index means the California Consumer Price Index for All Urban Consumers for all items, as determined by the Department of Industrial Relations.(d) Base year means:(1) The calendar year 1965 for all members whose retirement occurred prior to January 1, 1966, and for the beneficiaries and survivors of those retired members.(2) The calendar year of retirement for all members whose retirement occurs after December 31, 1965, and for the beneficiaries and survivors of those members.(3) The calendar year 1965 for survivors of members whose death occurred before January 1, 1966.(4) The calendar year in which a members death occurs for survivors of members whose death occurred before retirement and on or after January 1, 1966. |
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| 46 | 46 | | SECTION 1. Section 21311 of the Government Code is amended to read: |
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| 48 | 48 | | ### SECTION 1. |
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| 50 | 50 | | 21311. The following definitions shall govern the application of this article:(a) Monthly allowance means any allowance payable monthly to a retired person, a survivor or beneficiary of a member or a retired person, other than a monthly installment of a basic death benefit, the commuted value of an unpaid temporary annuity, or an optional settlement 1, or allowances payable under Article 3 (commencing with Section 21570) of Chapter 14. There shall be excluded from the monthly allowance, for purposes of any adjustment under this article, any portion of the allowance derived from accumulated additional contributions of a member.(b) Base allowance means the amount of monthly allowance that would be payable to the recipient at the time of an annual adjustment under this article had this article not been enacted.(c) (1) Effective January 1, 1978, Consumer Price Index means the United States city average Consumer Price Index for All Urban Consumers. The Consumer Price Index for any period prior to January 1, 1978, means the United States city average consumer price index. Should the reference base of the consumer price indices (presently 195759=100) be changed, each of the indices used to determine the consumer price index as defined in this section will be the indices converted to the new base by standard statistical methods.(2) On and after January 1, 2021, Consumer Price Index means the California Consumer Price Index for All Urban Consumers for all items, as determined by the Department of Industrial Relations.(d) Base year means:(1) The calendar year 1965 for all members whose retirement occurred prior to January 1, 1966, and for the beneficiaries and survivors of those retired members.(2) The calendar year of retirement for all members whose retirement occurs after December 31, 1965, and for the beneficiaries and survivors of those members.(3) The calendar year 1965 for survivors of members whose death occurred before January 1, 1966.(4) The calendar year in which a members death occurs for survivors of members whose death occurred before retirement and on or after January 1, 1966. |
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| 52 | 52 | | 21311. The following definitions shall govern the application of this article:(a) Monthly allowance means any allowance payable monthly to a retired person, a survivor or beneficiary of a member or a retired person, other than a monthly installment of a basic death benefit, the commuted value of an unpaid temporary annuity, or an optional settlement 1, or allowances payable under Article 3 (commencing with Section 21570) of Chapter 14. There shall be excluded from the monthly allowance, for purposes of any adjustment under this article, any portion of the allowance derived from accumulated additional contributions of a member.(b) Base allowance means the amount of monthly allowance that would be payable to the recipient at the time of an annual adjustment under this article had this article not been enacted.(c) (1) Effective January 1, 1978, Consumer Price Index means the United States city average Consumer Price Index for All Urban Consumers. The Consumer Price Index for any period prior to January 1, 1978, means the United States city average consumer price index. Should the reference base of the consumer price indices (presently 195759=100) be changed, each of the indices used to determine the consumer price index as defined in this section will be the indices converted to the new base by standard statistical methods.(2) On and after January 1, 2021, Consumer Price Index means the California Consumer Price Index for All Urban Consumers for all items, as determined by the Department of Industrial Relations.(d) Base year means:(1) The calendar year 1965 for all members whose retirement occurred prior to January 1, 1966, and for the beneficiaries and survivors of those retired members.(2) The calendar year of retirement for all members whose retirement occurs after December 31, 1965, and for the beneficiaries and survivors of those members.(3) The calendar year 1965 for survivors of members whose death occurred before January 1, 1966.(4) The calendar year in which a members death occurs for survivors of members whose death occurred before retirement and on or after January 1, 1966. |
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| 54 | 54 | | 21311. The following definitions shall govern the application of this article:(a) Monthly allowance means any allowance payable monthly to a retired person, a survivor or beneficiary of a member or a retired person, other than a monthly installment of a basic death benefit, the commuted value of an unpaid temporary annuity, or an optional settlement 1, or allowances payable under Article 3 (commencing with Section 21570) of Chapter 14. There shall be excluded from the monthly allowance, for purposes of any adjustment under this article, any portion of the allowance derived from accumulated additional contributions of a member.(b) Base allowance means the amount of monthly allowance that would be payable to the recipient at the time of an annual adjustment under this article had this article not been enacted.(c) (1) Effective January 1, 1978, Consumer Price Index means the United States city average Consumer Price Index for All Urban Consumers. The Consumer Price Index for any period prior to January 1, 1978, means the United States city average consumer price index. Should the reference base of the consumer price indices (presently 195759=100) be changed, each of the indices used to determine the consumer price index as defined in this section will be the indices converted to the new base by standard statistical methods.(2) On and after January 1, 2021, Consumer Price Index means the California Consumer Price Index for All Urban Consumers for all items, as determined by the Department of Industrial Relations.(d) Base year means:(1) The calendar year 1965 for all members whose retirement occurred prior to January 1, 1966, and for the beneficiaries and survivors of those retired members.(2) The calendar year of retirement for all members whose retirement occurs after December 31, 1965, and for the beneficiaries and survivors of those members.(3) The calendar year 1965 for survivors of members whose death occurred before January 1, 1966.(4) The calendar year in which a members death occurs for survivors of members whose death occurred before retirement and on or after January 1, 1966. |
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| 58 | 58 | | 21311. The following definitions shall govern the application of this article: |
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| 60 | 60 | | (a) Monthly allowance means any allowance payable monthly to a retired person, a survivor or beneficiary of a member or a retired person, other than a monthly installment of a basic death benefit, the commuted value of an unpaid temporary annuity, or an optional settlement 1, or allowances payable under Article 3 (commencing with Section 21570) of Chapter 14. There shall be excluded from the monthly allowance, for purposes of any adjustment under this article, any portion of the allowance derived from accumulated additional contributions of a member. |
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| 62 | 62 | | (b) Base allowance means the amount of monthly allowance that would be payable to the recipient at the time of an annual adjustment under this article had this article not been enacted. |
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| 64 | 64 | | (c) (1) Effective January 1, 1978, Consumer Price Index means the United States city average Consumer Price Index for All Urban Consumers. The Consumer Price Index for any period prior to January 1, 1978, means the United States city average consumer price index. Should the reference base of the consumer price indices (presently 195759=100) be changed, each of the indices used to determine the consumer price index as defined in this section will be the indices converted to the new base by standard statistical methods. |
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| 66 | 66 | | (2) On and after January 1, 2021, Consumer Price Index means the California Consumer Price Index for All Urban Consumers for all items, as determined by the Department of Industrial Relations. |
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| 68 | 68 | | (d) Base year means: |
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| 70 | 70 | | (1) The calendar year 1965 for all members whose retirement occurred prior to January 1, 1966, and for the beneficiaries and survivors of those retired members. |
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| 72 | 72 | | (2) The calendar year of retirement for all members whose retirement occurs after December 31, 1965, and for the beneficiaries and survivors of those members. |
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| 74 | 74 | | (3) The calendar year 1965 for survivors of members whose death occurred before January 1, 1966. |
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| 76 | 76 | | (4) The calendar year in which a members death occurs for survivors of members whose death occurred before retirement and on or after January 1, 1966. |
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