Amended IN Assembly March 18, 2021 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 1293Introduced by Assembly Member CooleyFebruary 19, 2021 An act to amend Section 75522 of add Section 75572.5 to the Government Code, relating to retirement. LEGISLATIVE COUNSEL'S DIGESTAB 1293, as amended, Cooley. Judges Retirement System II. Judges Retirement System II: federal law limits: cost-of-living adjustments.Existing law establishes the Judges Retirement System II, which the Board of Administration of the Public Employees Retirement System administers. Existing law authorizes a judge who is a member of the system and retires after meeting specified conditions to receive pension benefits. Existing federal law limits the amount a defined benefit plan may pay a participant annually, and requires that this limitation be adjusted annually by regulation to account for increases in the cost of living.This bill would prohibit the amount payable to a member under the Judges Retirement System II, including cost-of-living adjustments, from exceeding the limits established by federal law, and would incorporate specified provisions of federal law by reference. The bill would also require the retirement allowance of a member or monetary credits available to a member to be increased to reflect cost-of-living adjustments contained in federal law, in accordance with specified limits.Existing law establishes the Judges Retirement System II, which the Board of Administration of the Public Employees Retirement System administers. Existing law authorizes a judge who is a member of the system and who retires upon attaining both 65 years of age and 20 or more years of service, or upon attaining 70 years of age with a minimum of 5 years of service, to elect from specified retirement benefits, including a monthly pension.This bill would make nonsubstantive changes to the provisions authorizing a judge to elect retirement benefits described above.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. Section 75572.5 is added to the Government Code, to read:75572.5. (a) The cost-of-living adjustments under Section 415(d) of the Internal Revenue Code to the limits described in Section 415(b) of the Internal Revenue Code, as prescribed by the regulations of the Department of the Treasury of the United States, are hereby incorporated by reference and shall continue to apply after a members severance from their employment starting date. The amount payable to a member in any limitation year shall not be greater than the limit applicable under Section 415(b) of the Internal Revenue Code, as increased in subsequent years pursuant to Section 415(d) of the Internal Revenue Code and the associated regulations.(b) Notwithstanding any other law, and except as provided in subdivision (a), the retirement allowance of a member, or the monetary credits available to a member, shall be increased to reflect cost-of-living adjustments to the limits contained in Section 415 of Title 26 of the United States Code as provided in Section 415(d) of that code, provided that the members allowance or credits determined without regard to Section 415 equal or exceed the applicable limit as indexed. Nothing in this section is intended to, nor shall be construed to, entitle a retired member to a cost-of-living adjustment to their allowance or credits in excess of that provided pursuant to this chapter.SECTION 1.Section 75522 of the Government Code is amended to read:75522.(a)A judge is eligible to retire pursuant to this section upon attaining both 65 years of age and 20 or more years of service, or upon attaining 70 years of age with a minimum of five years of service.(b)The office of a judge who retires under this section becomes vacant on the date of the retirement.(c)A judge who retires pursuant to this section shall, within 30 days after the effective date of the retirement, elect to receive either the benefits provided by subdivision (d) or the benefits provided by subdivision (e). Under rules adopted by the board, the time for the election may be extended in cases of illness or other hardship, but once made, the election shall be final and irrevocable.(d)The judge may elect to receive for life a monthly retirement allowance equal to the benefit factor multiplied by the judges final compensation multiplied by the number of years of service credit.(1)The benefit factor for a judge eligible to retire pursuant to this section equals 3.75 percent per year of service.(2)In no event shall the retirement allowance at the time of retirement exceed 75 percent of the judges final compensation.(e)The judge may elect to receive the amount of their monetary credits determined pursuant to Section 75520, including the credits added under subdivision (b) of that section computed to the last day of the month preceding the date of distribution. Under rules adopted by the board, the judge may elect to receive that amount in a single payment, or may direct that it be paid in an annuity of actuarially equivalent value for the judges life or in one of the optional forms provided for in Section 75571 if the judge retires on or before December 31, 2017, or Section 75571.5 if the judge retires on or after January 1, 2018.(f)If a retired judge fails or refuses to make an election pursuant to subdivision (c) within the time allowed, the judge shall be deemed to have elected to receive a monthly retirement allowance under subdivision (d).
Amended IN Assembly March 18, 2021 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 1293Introduced by Assembly Member CooleyFebruary 19, 2021 An act to amend Section 75522 of add Section 75572.5 to the Government Code, relating to retirement. LEGISLATIVE COUNSEL'S DIGESTAB 1293, as amended, Cooley. Judges Retirement System II. Judges Retirement System II: federal law limits: cost-of-living adjustments.Existing law establishes the Judges Retirement System II, which the Board of Administration of the Public Employees Retirement System administers. Existing law authorizes a judge who is a member of the system and retires after meeting specified conditions to receive pension benefits. Existing federal law limits the amount a defined benefit plan may pay a participant annually, and requires that this limitation be adjusted annually by regulation to account for increases in the cost of living.This bill would prohibit the amount payable to a member under the Judges Retirement System II, including cost-of-living adjustments, from exceeding the limits established by federal law, and would incorporate specified provisions of federal law by reference. The bill would also require the retirement allowance of a member or monetary credits available to a member to be increased to reflect cost-of-living adjustments contained in federal law, in accordance with specified limits.Existing law establishes the Judges Retirement System II, which the Board of Administration of the Public Employees Retirement System administers. Existing law authorizes a judge who is a member of the system and who retires upon attaining both 65 years of age and 20 or more years of service, or upon attaining 70 years of age with a minimum of 5 years of service, to elect from specified retirement benefits, including a monthly pension.This bill would make nonsubstantive changes to the provisions authorizing a judge to elect retirement benefits described above.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO
Amended IN Assembly March 18, 2021
Amended IN Assembly March 18, 2021
CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION
Assembly Bill
No. 1293
Introduced by Assembly Member CooleyFebruary 19, 2021
Introduced by Assembly Member Cooley
February 19, 2021
An act to amend Section 75522 of add Section 75572.5 to the Government Code, relating to retirement.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1293, as amended, Cooley. Judges Retirement System II. Judges Retirement System II: federal law limits: cost-of-living adjustments.
Existing law establishes the Judges Retirement System II, which the Board of Administration of the Public Employees Retirement System administers. Existing law authorizes a judge who is a member of the system and retires after meeting specified conditions to receive pension benefits. Existing federal law limits the amount a defined benefit plan may pay a participant annually, and requires that this limitation be adjusted annually by regulation to account for increases in the cost of living.This bill would prohibit the amount payable to a member under the Judges Retirement System II, including cost-of-living adjustments, from exceeding the limits established by federal law, and would incorporate specified provisions of federal law by reference. The bill would also require the retirement allowance of a member or monetary credits available to a member to be increased to reflect cost-of-living adjustments contained in federal law, in accordance with specified limits.Existing law establishes the Judges Retirement System II, which the Board of Administration of the Public Employees Retirement System administers. Existing law authorizes a judge who is a member of the system and who retires upon attaining both 65 years of age and 20 or more years of service, or upon attaining 70 years of age with a minimum of 5 years of service, to elect from specified retirement benefits, including a monthly pension.This bill would make nonsubstantive changes to the provisions authorizing a judge to elect retirement benefits described above.
Existing law establishes the Judges Retirement System II, which the Board of Administration of the Public Employees Retirement System administers. Existing law authorizes a judge who is a member of the system and retires after meeting specified conditions to receive pension benefits.
Existing federal law limits the amount a defined benefit plan may pay a participant annually, and requires that this limitation be adjusted annually by regulation to account for increases in the cost of living.
This bill would prohibit the amount payable to a member under the Judges Retirement System II, including cost-of-living adjustments, from exceeding the limits established by federal law, and would incorporate specified provisions of federal law by reference. The bill would also require the retirement allowance of a member or monetary credits available to a member to be increased to reflect cost-of-living adjustments contained in federal law, in accordance with specified limits.
Existing law establishes the Judges Retirement System II, which the Board of Administration of the Public Employees Retirement System administers. Existing law authorizes a judge who is a member of the system and who retires upon attaining both 65 years of age and 20 or more years of service, or upon attaining 70 years of age with a minimum of 5 years of service, to elect from specified retirement benefits, including a monthly pension.
This bill would make nonsubstantive changes to the provisions authorizing a judge to elect retirement benefits described above.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 75572.5 is added to the Government Code, to read:75572.5. (a) The cost-of-living adjustments under Section 415(d) of the Internal Revenue Code to the limits described in Section 415(b) of the Internal Revenue Code, as prescribed by the regulations of the Department of the Treasury of the United States, are hereby incorporated by reference and shall continue to apply after a members severance from their employment starting date. The amount payable to a member in any limitation year shall not be greater than the limit applicable under Section 415(b) of the Internal Revenue Code, as increased in subsequent years pursuant to Section 415(d) of the Internal Revenue Code and the associated regulations.(b) Notwithstanding any other law, and except as provided in subdivision (a), the retirement allowance of a member, or the monetary credits available to a member, shall be increased to reflect cost-of-living adjustments to the limits contained in Section 415 of Title 26 of the United States Code as provided in Section 415(d) of that code, provided that the members allowance or credits determined without regard to Section 415 equal or exceed the applicable limit as indexed. Nothing in this section is intended to, nor shall be construed to, entitle a retired member to a cost-of-living adjustment to their allowance or credits in excess of that provided pursuant to this chapter.SECTION 1.Section 75522 of the Government Code is amended to read:75522.(a)A judge is eligible to retire pursuant to this section upon attaining both 65 years of age and 20 or more years of service, or upon attaining 70 years of age with a minimum of five years of service.(b)The office of a judge who retires under this section becomes vacant on the date of the retirement.(c)A judge who retires pursuant to this section shall, within 30 days after the effective date of the retirement, elect to receive either the benefits provided by subdivision (d) or the benefits provided by subdivision (e). Under rules adopted by the board, the time for the election may be extended in cases of illness or other hardship, but once made, the election shall be final and irrevocable.(d)The judge may elect to receive for life a monthly retirement allowance equal to the benefit factor multiplied by the judges final compensation multiplied by the number of years of service credit.(1)The benefit factor for a judge eligible to retire pursuant to this section equals 3.75 percent per year of service.(2)In no event shall the retirement allowance at the time of retirement exceed 75 percent of the judges final compensation.(e)The judge may elect to receive the amount of their monetary credits determined pursuant to Section 75520, including the credits added under subdivision (b) of that section computed to the last day of the month preceding the date of distribution. Under rules adopted by the board, the judge may elect to receive that amount in a single payment, or may direct that it be paid in an annuity of actuarially equivalent value for the judges life or in one of the optional forms provided for in Section 75571 if the judge retires on or before December 31, 2017, or Section 75571.5 if the judge retires on or after January 1, 2018.(f)If a retired judge fails or refuses to make an election pursuant to subdivision (c) within the time allowed, the judge shall be deemed to have elected to receive a monthly retirement allowance under subdivision (d).
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 75572.5 is added to the Government Code, to read:75572.5. (a) The cost-of-living adjustments under Section 415(d) of the Internal Revenue Code to the limits described in Section 415(b) of the Internal Revenue Code, as prescribed by the regulations of the Department of the Treasury of the United States, are hereby incorporated by reference and shall continue to apply after a members severance from their employment starting date. The amount payable to a member in any limitation year shall not be greater than the limit applicable under Section 415(b) of the Internal Revenue Code, as increased in subsequent years pursuant to Section 415(d) of the Internal Revenue Code and the associated regulations.(b) Notwithstanding any other law, and except as provided in subdivision (a), the retirement allowance of a member, or the monetary credits available to a member, shall be increased to reflect cost-of-living adjustments to the limits contained in Section 415 of Title 26 of the United States Code as provided in Section 415(d) of that code, provided that the members allowance or credits determined without regard to Section 415 equal or exceed the applicable limit as indexed. Nothing in this section is intended to, nor shall be construed to, entitle a retired member to a cost-of-living adjustment to their allowance or credits in excess of that provided pursuant to this chapter.
SECTION 1. Section 75572.5 is added to the Government Code, to read:
### SECTION 1.
75572.5. (a) The cost-of-living adjustments under Section 415(d) of the Internal Revenue Code to the limits described in Section 415(b) of the Internal Revenue Code, as prescribed by the regulations of the Department of the Treasury of the United States, are hereby incorporated by reference and shall continue to apply after a members severance from their employment starting date. The amount payable to a member in any limitation year shall not be greater than the limit applicable under Section 415(b) of the Internal Revenue Code, as increased in subsequent years pursuant to Section 415(d) of the Internal Revenue Code and the associated regulations.(b) Notwithstanding any other law, and except as provided in subdivision (a), the retirement allowance of a member, or the monetary credits available to a member, shall be increased to reflect cost-of-living adjustments to the limits contained in Section 415 of Title 26 of the United States Code as provided in Section 415(d) of that code, provided that the members allowance or credits determined without regard to Section 415 equal or exceed the applicable limit as indexed. Nothing in this section is intended to, nor shall be construed to, entitle a retired member to a cost-of-living adjustment to their allowance or credits in excess of that provided pursuant to this chapter.
75572.5. (a) The cost-of-living adjustments under Section 415(d) of the Internal Revenue Code to the limits described in Section 415(b) of the Internal Revenue Code, as prescribed by the regulations of the Department of the Treasury of the United States, are hereby incorporated by reference and shall continue to apply after a members severance from their employment starting date. The amount payable to a member in any limitation year shall not be greater than the limit applicable under Section 415(b) of the Internal Revenue Code, as increased in subsequent years pursuant to Section 415(d) of the Internal Revenue Code and the associated regulations.(b) Notwithstanding any other law, and except as provided in subdivision (a), the retirement allowance of a member, or the monetary credits available to a member, shall be increased to reflect cost-of-living adjustments to the limits contained in Section 415 of Title 26 of the United States Code as provided in Section 415(d) of that code, provided that the members allowance or credits determined without regard to Section 415 equal or exceed the applicable limit as indexed. Nothing in this section is intended to, nor shall be construed to, entitle a retired member to a cost-of-living adjustment to their allowance or credits in excess of that provided pursuant to this chapter.
75572.5. (a) The cost-of-living adjustments under Section 415(d) of the Internal Revenue Code to the limits described in Section 415(b) of the Internal Revenue Code, as prescribed by the regulations of the Department of the Treasury of the United States, are hereby incorporated by reference and shall continue to apply after a members severance from their employment starting date. The amount payable to a member in any limitation year shall not be greater than the limit applicable under Section 415(b) of the Internal Revenue Code, as increased in subsequent years pursuant to Section 415(d) of the Internal Revenue Code and the associated regulations.(b) Notwithstanding any other law, and except as provided in subdivision (a), the retirement allowance of a member, or the monetary credits available to a member, shall be increased to reflect cost-of-living adjustments to the limits contained in Section 415 of Title 26 of the United States Code as provided in Section 415(d) of that code, provided that the members allowance or credits determined without regard to Section 415 equal or exceed the applicable limit as indexed. Nothing in this section is intended to, nor shall be construed to, entitle a retired member to a cost-of-living adjustment to their allowance or credits in excess of that provided pursuant to this chapter.
75572.5. (a) The cost-of-living adjustments under Section 415(d) of the Internal Revenue Code to the limits described in Section 415(b) of the Internal Revenue Code, as prescribed by the regulations of the Department of the Treasury of the United States, are hereby incorporated by reference and shall continue to apply after a members severance from their employment starting date. The amount payable to a member in any limitation year shall not be greater than the limit applicable under Section 415(b) of the Internal Revenue Code, as increased in subsequent years pursuant to Section 415(d) of the Internal Revenue Code and the associated regulations.
(b) Notwithstanding any other law, and except as provided in subdivision (a), the retirement allowance of a member, or the monetary credits available to a member, shall be increased to reflect cost-of-living adjustments to the limits contained in Section 415 of Title 26 of the United States Code as provided in Section 415(d) of that code, provided that the members allowance or credits determined without regard to Section 415 equal or exceed the applicable limit as indexed. Nothing in this section is intended to, nor shall be construed to, entitle a retired member to a cost-of-living adjustment to their allowance or credits in excess of that provided pursuant to this chapter.
(a)A judge is eligible to retire pursuant to this section upon attaining both 65 years of age and 20 or more years of service, or upon attaining 70 years of age with a minimum of five years of service.
(b)The office of a judge who retires under this section becomes vacant on the date of the retirement.
(c)A judge who retires pursuant to this section shall, within 30 days after the effective date of the retirement, elect to receive either the benefits provided by subdivision (d) or the benefits provided by subdivision (e). Under rules adopted by the board, the time for the election may be extended in cases of illness or other hardship, but once made, the election shall be final and irrevocable.
(d)The judge may elect to receive for life a monthly retirement allowance equal to the benefit factor multiplied by the judges final compensation multiplied by the number of years of service credit.
(1)The benefit factor for a judge eligible to retire pursuant to this section equals 3.75 percent per year of service.
(2)In no event shall the retirement allowance at the time of retirement exceed 75 percent of the judges final compensation.
(e)The judge may elect to receive the amount of their monetary credits determined pursuant to Section 75520, including the credits added under subdivision (b) of that section computed to the last day of the month preceding the date of distribution. Under rules adopted by the board, the judge may elect to receive that amount in a single payment, or may direct that it be paid in an annuity of actuarially equivalent value for the judges life or in one of the optional forms provided for in Section 75571 if the judge retires on or before December 31, 2017, or Section 75571.5 if the judge retires on or after January 1, 2018.
(f)If a retired judge fails or refuses to make an election pursuant to subdivision (c) within the time allowed, the judge shall be deemed to have elected to receive a monthly retirement allowance under subdivision (d).