California 2019 2019-2020 Regular Session

California Assembly Bill AB462 Introduced / Bill

Filed 02/11/2019

                    CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 462Introduced by Assembly Member RodriguezFebruary 11, 2019 An act to amend Section 23301 of the Education Code, and to amend Section 20963 of the Government Code, relating to public retirement systems. LEGISLATIVE COUNSEL'S DIGESTAB 462, as introduced, Rodriguez. Public retirement: service credit: sick leave.The Public Employees Retirement Law (PERL) creates the Public Employees Retirement System (PERS), which provides defined benefits to members of the system based on final compensation, credited service, and age at retirement, subject to certain variations. PERL prescribes requirements for the computation of service credit in connection with sick leave that are applicable to a state, school, and school safety member, if the effective date of retirement is within 4 months of separation from employment with the employer that granted the sick leave credit.This bill would provide that all sick leave acquired by a school member from all employers subject to PERL within 4 months of separation may be credited as service credit when specified conditions are met. The Teachers Retirement Law establishes the State Teachers Retirement System (STRS) and creates the Defined Benefit Program of the State Teachers Retirement Plan, which provides a defined benefit to members of the program, based on final compensation, credited service, and age at retirement, subject to certain variations. STRS authorizes a member to designate specified entities as a beneficiary, subject to specified conditions.This bill would make a nonsubstantive change to the provision authorizing a member to designate an entity as a beneficiary.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 23301 of the Education Code is amended to read:23301. A corporation, trust, eleemosynary, charitable organization, parochial institution, or public entity may be designated as a beneficiary under this part, but they shall not be designated as option beneficiaries, except a trust as defined in Section 22149.SEC. 2. Section 20963 of the Government Code is amended to read:20963. (a) (1) A state, school, or school safety member, whose effective date of retirement is within four months of separation from employment with the employer subject to this section that granted the sick leave credit, shall be credited at his or her the members retirement with 0.004 year of service credit for each unused day of sick leave certified to the board by the employer. The certification shall report only those days of unused sick leave that were accrued by the member during the normal course of his or her the members employment and shall not include any additional days of sick leave reported for the purpose of increasing the members retirement benefit. Reports of unused days of sick leave shall be subject to audit and retirement benefits may be adjusted where improper reporting is found. For purposes of this subdivision, sick leave shall not include sick leave earned as a National Guard member as described in Section 20380.5.(2) For purposes of this section, and for a school member, employer shall include all employers subject to this section that the school member was employed at within four months of separation from employment.(b) Until receipt of certification from an employer concerning unused sick leave, the board may pay an estimated allowance pursuant to this section. At the time of receipt of the certification, the allowance shall be adjusted to reflect any necessary changes.(c) Notwithstanding any other provisions of this part, this section shall not apply to local members other than local miscellaneous members employed before July 1, 1980, by a school district that is a contracting agency or those school safety members employed before July 1, 1980, by a contracting agency that is a school district or community college district, as defined in subdivision (i) of Section 20057.(d) This section shall not apply to any of the following:(1) A person who becomes a school member on and after July 1, 1980, and any person who becomes a local member employed, on and after July 1, 1980, by a school district that is a contracting agency whether or not the person was ever a school member or local member prior to that date.(2) A state employee, with respect to sick leave credits earned as a state member under Section 21353.5, except that the member shall be entitled to receive credit under this section for the sick leave he or she the member has earned as a state member subject to any other retirement formula, provided the member has a sick leave credit balance remaining at the time of retirement.(e) For the purposes of this section, sick leave benefits provided to state employees pursuant to the state sick leave system shall be construed to mean compensation paid to employees on approved leaves of absence because of sickness.

 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 462Introduced by Assembly Member RodriguezFebruary 11, 2019 An act to amend Section 23301 of the Education Code, and to amend Section 20963 of the Government Code, relating to public retirement systems. LEGISLATIVE COUNSEL'S DIGESTAB 462, as introduced, Rodriguez. Public retirement: service credit: sick leave.The Public Employees Retirement Law (PERL) creates the Public Employees Retirement System (PERS), which provides defined benefits to members of the system based on final compensation, credited service, and age at retirement, subject to certain variations. PERL prescribes requirements for the computation of service credit in connection with sick leave that are applicable to a state, school, and school safety member, if the effective date of retirement is within 4 months of separation from employment with the employer that granted the sick leave credit.This bill would provide that all sick leave acquired by a school member from all employers subject to PERL within 4 months of separation may be credited as service credit when specified conditions are met. The Teachers Retirement Law establishes the State Teachers Retirement System (STRS) and creates the Defined Benefit Program of the State Teachers Retirement Plan, which provides a defined benefit to members of the program, based on final compensation, credited service, and age at retirement, subject to certain variations. STRS authorizes a member to designate specified entities as a beneficiary, subject to specified conditions.This bill would make a nonsubstantive change to the provision authorizing a member to designate an entity as a beneficiary.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: NO 





 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION

Assembly Bill No. 462

Introduced by Assembly Member RodriguezFebruary 11, 2019

Introduced by Assembly Member Rodriguez
February 11, 2019

 An act to amend Section 23301 of the Education Code, and to amend Section 20963 of the Government Code, relating to public retirement systems. 

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 462, as introduced, Rodriguez. Public retirement: service credit: sick leave.

The Public Employees Retirement Law (PERL) creates the Public Employees Retirement System (PERS), which provides defined benefits to members of the system based on final compensation, credited service, and age at retirement, subject to certain variations. PERL prescribes requirements for the computation of service credit in connection with sick leave that are applicable to a state, school, and school safety member, if the effective date of retirement is within 4 months of separation from employment with the employer that granted the sick leave credit.This bill would provide that all sick leave acquired by a school member from all employers subject to PERL within 4 months of separation may be credited as service credit when specified conditions are met. The Teachers Retirement Law establishes the State Teachers Retirement System (STRS) and creates the Defined Benefit Program of the State Teachers Retirement Plan, which provides a defined benefit to members of the program, based on final compensation, credited service, and age at retirement, subject to certain variations. STRS authorizes a member to designate specified entities as a beneficiary, subject to specified conditions.This bill would make a nonsubstantive change to the provision authorizing a member to designate an entity as a beneficiary.

The Public Employees Retirement Law (PERL) creates the Public Employees Retirement System (PERS), which provides defined benefits to members of the system based on final compensation, credited service, and age at retirement, subject to certain variations. PERL prescribes requirements for the computation of service credit in connection with sick leave that are applicable to a state, school, and school safety member, if the effective date of retirement is within 4 months of separation from employment with the employer that granted the sick leave credit.

This bill would provide that all sick leave acquired by a school member from all employers subject to PERL within 4 months of separation may be credited as service credit when specified conditions are met. 

The Teachers Retirement Law establishes the State Teachers Retirement System (STRS) and creates the Defined Benefit Program of the State Teachers Retirement Plan, which provides a defined benefit to members of the program, based on final compensation, credited service, and age at retirement, subject to certain variations. STRS authorizes a member to designate specified entities as a beneficiary, subject to specified conditions.

This bill would make a nonsubstantive change to the provision authorizing a member to designate an entity as a beneficiary.

## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 23301 of the Education Code is amended to read:23301. A corporation, trust, eleemosynary, charitable organization, parochial institution, or public entity may be designated as a beneficiary under this part, but they shall not be designated as option beneficiaries, except a trust as defined in Section 22149.SEC. 2. Section 20963 of the Government Code is amended to read:20963. (a) (1) A state, school, or school safety member, whose effective date of retirement is within four months of separation from employment with the employer subject to this section that granted the sick leave credit, shall be credited at his or her the members retirement with 0.004 year of service credit for each unused day of sick leave certified to the board by the employer. The certification shall report only those days of unused sick leave that were accrued by the member during the normal course of his or her the members employment and shall not include any additional days of sick leave reported for the purpose of increasing the members retirement benefit. Reports of unused days of sick leave shall be subject to audit and retirement benefits may be adjusted where improper reporting is found. For purposes of this subdivision, sick leave shall not include sick leave earned as a National Guard member as described in Section 20380.5.(2) For purposes of this section, and for a school member, employer shall include all employers subject to this section that the school member was employed at within four months of separation from employment.(b) Until receipt of certification from an employer concerning unused sick leave, the board may pay an estimated allowance pursuant to this section. At the time of receipt of the certification, the allowance shall be adjusted to reflect any necessary changes.(c) Notwithstanding any other provisions of this part, this section shall not apply to local members other than local miscellaneous members employed before July 1, 1980, by a school district that is a contracting agency or those school safety members employed before July 1, 1980, by a contracting agency that is a school district or community college district, as defined in subdivision (i) of Section 20057.(d) This section shall not apply to any of the following:(1) A person who becomes a school member on and after July 1, 1980, and any person who becomes a local member employed, on and after July 1, 1980, by a school district that is a contracting agency whether or not the person was ever a school member or local member prior to that date.(2) A state employee, with respect to sick leave credits earned as a state member under Section 21353.5, except that the member shall be entitled to receive credit under this section for the sick leave he or she the member has earned as a state member subject to any other retirement formula, provided the member has a sick leave credit balance remaining at the time of retirement.(e) For the purposes of this section, sick leave benefits provided to state employees pursuant to the state sick leave system shall be construed to mean compensation paid to employees on approved leaves of absence because of sickness.

The people of the State of California do enact as follows:

## The people of the State of California do enact as follows:

SECTION 1. Section 23301 of the Education Code is amended to read:23301. A corporation, trust, eleemosynary, charitable organization, parochial institution, or public entity may be designated as a beneficiary under this part, but they shall not be designated as option beneficiaries, except a trust as defined in Section 22149.

SECTION 1. Section 23301 of the Education Code is amended to read:

### SECTION 1.

23301. A corporation, trust, eleemosynary, charitable organization, parochial institution, or public entity may be designated as a beneficiary under this part, but they shall not be designated as option beneficiaries, except a trust as defined in Section 22149.

23301. A corporation, trust, eleemosynary, charitable organization, parochial institution, or public entity may be designated as a beneficiary under this part, but they shall not be designated as option beneficiaries, except a trust as defined in Section 22149.

23301. A corporation, trust, eleemosynary, charitable organization, parochial institution, or public entity may be designated as a beneficiary under this part, but they shall not be designated as option beneficiaries, except a trust as defined in Section 22149.



23301. A corporation, trust, eleemosynary, charitable organization, parochial institution, or public entity may be designated as a beneficiary under this part, but they shall not be designated as option beneficiaries, except a trust as defined in Section 22149.

SEC. 2. Section 20963 of the Government Code is amended to read:20963. (a) (1) A state, school, or school safety member, whose effective date of retirement is within four months of separation from employment with the employer subject to this section that granted the sick leave credit, shall be credited at his or her the members retirement with 0.004 year of service credit for each unused day of sick leave certified to the board by the employer. The certification shall report only those days of unused sick leave that were accrued by the member during the normal course of his or her the members employment and shall not include any additional days of sick leave reported for the purpose of increasing the members retirement benefit. Reports of unused days of sick leave shall be subject to audit and retirement benefits may be adjusted where improper reporting is found. For purposes of this subdivision, sick leave shall not include sick leave earned as a National Guard member as described in Section 20380.5.(2) For purposes of this section, and for a school member, employer shall include all employers subject to this section that the school member was employed at within four months of separation from employment.(b) Until receipt of certification from an employer concerning unused sick leave, the board may pay an estimated allowance pursuant to this section. At the time of receipt of the certification, the allowance shall be adjusted to reflect any necessary changes.(c) Notwithstanding any other provisions of this part, this section shall not apply to local members other than local miscellaneous members employed before July 1, 1980, by a school district that is a contracting agency or those school safety members employed before July 1, 1980, by a contracting agency that is a school district or community college district, as defined in subdivision (i) of Section 20057.(d) This section shall not apply to any of the following:(1) A person who becomes a school member on and after July 1, 1980, and any person who becomes a local member employed, on and after July 1, 1980, by a school district that is a contracting agency whether or not the person was ever a school member or local member prior to that date.(2) A state employee, with respect to sick leave credits earned as a state member under Section 21353.5, except that the member shall be entitled to receive credit under this section for the sick leave he or she the member has earned as a state member subject to any other retirement formula, provided the member has a sick leave credit balance remaining at the time of retirement.(e) For the purposes of this section, sick leave benefits provided to state employees pursuant to the state sick leave system shall be construed to mean compensation paid to employees on approved leaves of absence because of sickness.

SEC. 2. Section 20963 of the Government Code is amended to read:

### SEC. 2.

20963. (a) (1) A state, school, or school safety member, whose effective date of retirement is within four months of separation from employment with the employer subject to this section that granted the sick leave credit, shall be credited at his or her the members retirement with 0.004 year of service credit for each unused day of sick leave certified to the board by the employer. The certification shall report only those days of unused sick leave that were accrued by the member during the normal course of his or her the members employment and shall not include any additional days of sick leave reported for the purpose of increasing the members retirement benefit. Reports of unused days of sick leave shall be subject to audit and retirement benefits may be adjusted where improper reporting is found. For purposes of this subdivision, sick leave shall not include sick leave earned as a National Guard member as described in Section 20380.5.(2) For purposes of this section, and for a school member, employer shall include all employers subject to this section that the school member was employed at within four months of separation from employment.(b) Until receipt of certification from an employer concerning unused sick leave, the board may pay an estimated allowance pursuant to this section. At the time of receipt of the certification, the allowance shall be adjusted to reflect any necessary changes.(c) Notwithstanding any other provisions of this part, this section shall not apply to local members other than local miscellaneous members employed before July 1, 1980, by a school district that is a contracting agency or those school safety members employed before July 1, 1980, by a contracting agency that is a school district or community college district, as defined in subdivision (i) of Section 20057.(d) This section shall not apply to any of the following:(1) A person who becomes a school member on and after July 1, 1980, and any person who becomes a local member employed, on and after July 1, 1980, by a school district that is a contracting agency whether or not the person was ever a school member or local member prior to that date.(2) A state employee, with respect to sick leave credits earned as a state member under Section 21353.5, except that the member shall be entitled to receive credit under this section for the sick leave he or she the member has earned as a state member subject to any other retirement formula, provided the member has a sick leave credit balance remaining at the time of retirement.(e) For the purposes of this section, sick leave benefits provided to state employees pursuant to the state sick leave system shall be construed to mean compensation paid to employees on approved leaves of absence because of sickness.

20963. (a) (1) A state, school, or school safety member, whose effective date of retirement is within four months of separation from employment with the employer subject to this section that granted the sick leave credit, shall be credited at his or her the members retirement with 0.004 year of service credit for each unused day of sick leave certified to the board by the employer. The certification shall report only those days of unused sick leave that were accrued by the member during the normal course of his or her the members employment and shall not include any additional days of sick leave reported for the purpose of increasing the members retirement benefit. Reports of unused days of sick leave shall be subject to audit and retirement benefits may be adjusted where improper reporting is found. For purposes of this subdivision, sick leave shall not include sick leave earned as a National Guard member as described in Section 20380.5.(2) For purposes of this section, and for a school member, employer shall include all employers subject to this section that the school member was employed at within four months of separation from employment.(b) Until receipt of certification from an employer concerning unused sick leave, the board may pay an estimated allowance pursuant to this section. At the time of receipt of the certification, the allowance shall be adjusted to reflect any necessary changes.(c) Notwithstanding any other provisions of this part, this section shall not apply to local members other than local miscellaneous members employed before July 1, 1980, by a school district that is a contracting agency or those school safety members employed before July 1, 1980, by a contracting agency that is a school district or community college district, as defined in subdivision (i) of Section 20057.(d) This section shall not apply to any of the following:(1) A person who becomes a school member on and after July 1, 1980, and any person who becomes a local member employed, on and after July 1, 1980, by a school district that is a contracting agency whether or not the person was ever a school member or local member prior to that date.(2) A state employee, with respect to sick leave credits earned as a state member under Section 21353.5, except that the member shall be entitled to receive credit under this section for the sick leave he or she the member has earned as a state member subject to any other retirement formula, provided the member has a sick leave credit balance remaining at the time of retirement.(e) For the purposes of this section, sick leave benefits provided to state employees pursuant to the state sick leave system shall be construed to mean compensation paid to employees on approved leaves of absence because of sickness.

20963. (a) (1) A state, school, or school safety member, whose effective date of retirement is within four months of separation from employment with the employer subject to this section that granted the sick leave credit, shall be credited at his or her the members retirement with 0.004 year of service credit for each unused day of sick leave certified to the board by the employer. The certification shall report only those days of unused sick leave that were accrued by the member during the normal course of his or her the members employment and shall not include any additional days of sick leave reported for the purpose of increasing the members retirement benefit. Reports of unused days of sick leave shall be subject to audit and retirement benefits may be adjusted where improper reporting is found. For purposes of this subdivision, sick leave shall not include sick leave earned as a National Guard member as described in Section 20380.5.(2) For purposes of this section, and for a school member, employer shall include all employers subject to this section that the school member was employed at within four months of separation from employment.(b) Until receipt of certification from an employer concerning unused sick leave, the board may pay an estimated allowance pursuant to this section. At the time of receipt of the certification, the allowance shall be adjusted to reflect any necessary changes.(c) Notwithstanding any other provisions of this part, this section shall not apply to local members other than local miscellaneous members employed before July 1, 1980, by a school district that is a contracting agency or those school safety members employed before July 1, 1980, by a contracting agency that is a school district or community college district, as defined in subdivision (i) of Section 20057.(d) This section shall not apply to any of the following:(1) A person who becomes a school member on and after July 1, 1980, and any person who becomes a local member employed, on and after July 1, 1980, by a school district that is a contracting agency whether or not the person was ever a school member or local member prior to that date.(2) A state employee, with respect to sick leave credits earned as a state member under Section 21353.5, except that the member shall be entitled to receive credit under this section for the sick leave he or she the member has earned as a state member subject to any other retirement formula, provided the member has a sick leave credit balance remaining at the time of retirement.(e) For the purposes of this section, sick leave benefits provided to state employees pursuant to the state sick leave system shall be construed to mean compensation paid to employees on approved leaves of absence because of sickness.



20963. (a) (1) A state, school, or school safety member, whose effective date of retirement is within four months of separation from employment with the employer subject to this section that granted the sick leave credit, shall be credited at his or her the members retirement with 0.004 year of service credit for each unused day of sick leave certified to the board by the employer. The certification shall report only those days of unused sick leave that were accrued by the member during the normal course of his or her the members employment and shall not include any additional days of sick leave reported for the purpose of increasing the members retirement benefit. Reports of unused days of sick leave shall be subject to audit and retirement benefits may be adjusted where improper reporting is found. For purposes of this subdivision, sick leave shall not include sick leave earned as a National Guard member as described in Section 20380.5.

(2) For purposes of this section, and for a school member, employer shall include all employers subject to this section that the school member was employed at within four months of separation from employment.

(b) Until receipt of certification from an employer concerning unused sick leave, the board may pay an estimated allowance pursuant to this section. At the time of receipt of the certification, the allowance shall be adjusted to reflect any necessary changes.

(c) Notwithstanding any other provisions of this part, this section shall not apply to local members other than local miscellaneous members employed before July 1, 1980, by a school district that is a contracting agency or those school safety members employed before July 1, 1980, by a contracting agency that is a school district or community college district, as defined in subdivision (i) of Section 20057.

(d) This section shall not apply to any of the following:

(1) A person who becomes a school member on and after July 1, 1980, and any person who becomes a local member employed, on and after July 1, 1980, by a school district that is a contracting agency whether or not the person was ever a school member or local member prior to that date.

(2) A state employee, with respect to sick leave credits earned as a state member under Section 21353.5, except that the member shall be entitled to receive credit under this section for the sick leave he or she the member has earned as a state member subject to any other retirement formula, provided the member has a sick leave credit balance remaining at the time of retirement.

(e) For the purposes of this section, sick leave benefits provided to state employees pursuant to the state sick leave system shall be construed to mean compensation paid to employees on approved leaves of absence because of sickness.