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| 1 | + | Amended IN Senate April 10, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 853Introduced by Committee on Labor, Public Employment and Retirement (Senators Smallwood-Cuevas (Chair), Cortese, Durazo, and Laird) Laird, and Strickland)March 04, 2025An act to amend Sections 22104.8, 22131, 22146.5, 22713, 22954, 22955, 22955.1, 24502, 24616.2, and 26122 of the Education Code, and to amend Sections 7522.02, 20034, 20069, 20638, 20639, 31462.05, 31470.14, and 31680.9 of the Government Code, relating to public retirement systems. LEGISLATIVE COUNSEL'S DIGESTSB 853, as amended, Committee on Labor, Public Employment and Retirement. Public employees retirement.(1) Existing law, 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, creditable service, and age at retirement, subject to certain variations. STRS is administered by the Teachers Retirement Board. Existing law requires employers and employees to make contributions to the system based on the members creditable compensation. Existing law defines terms for the purposes of STRS. Existing law defines employer or employing agency to mean the state or any agency or political subdivision thereof, including a joint powers authority, as specified. Existing law also defines membership under the Teachers Retirement Law to mean membership in the Defined Benefit Program, except as specified.This bill would provide that the board has final authority for determining an employer or employing agency for purposes of the Teachers Retirement Law and related provisions governing teachers health care benefits. The bill would also provide that the board has final authority for determining membership in STRS, as specified.Existing law authorizes the governing board of a school district or community college district to establish regulations, subject to specified requirements, to permit an employee who is a member of the Defined Benefit Plan to reduce their workload from full time to part time and have retirement benefits calculated as if the employee was employed full time. Existing law requires the agreement to reduce a members workload to be terminated if one of specified actions is taken, including if the member performs less than 1/2 of the days or hours the employer requires for full time in that position.This bill would revise that provision to instead require the agreement to be terminated if the member earns less than 1/2 of the annualized pay rate, as defined.Existing law makes a continuous annual appropriation from the General Fund to the Controller for transfer to the Supplemental Benefit Maintenance Account in the Teachers Retirement Fund, as specified. Existing law requires that transfers made to that account occur on October 15 and April 15 of each fiscal year with each payment to be 50% of the annual appropriation. This bill would provide that if either date falls on a weekend or holiday, the funds will be transferred the next business day.Existing law also makes certain continuous annual appropriations from the General Fund to the Controller for transfer to the Teachers Retirement Fund, as specified. Existing law requires the total amounts to be divided into 4 equal payments made on July 1, October 1, December 15, and April 15 of each fiscal year, or the following business day after.This bill would delete the above-described reference to on the following business day after and would instead specify that if any of these dates fall on a weekend or holiday, the funds shall be transferred the next business day. Existing law authorizes the Teachers Retirement Board, in exercising its rights under the Teachers Retirement Law, to commence or prosecute actions, file liens, intervene in court proceedings, and take related legal actions.This bill would provide that the superior court of any county within California where venue would be proper or the Superior Court of the County of Sacramento shall have jurisdiction of, and is the appropriate venue for, any suit, action, or legal proceedings relating to the subrogation rights of STRS under the Teachers Retirement Law. Existing law establishes procedures governing the recovery of amounts that have been overpaid due to an error by STRS and requires recovery with interest, as specified. Existing law requires a specified amount to be made as a continuous appropriation from the General Fund to the Controller each July 1, for transfer to the Teachers Retirement Fund.This bill would provide that if July 1 falls on a weekend or holiday, those funds shall be transferred the next business day. (2) Existing law, the State Teachers Retirement System Cash Balance Plan, prescribes retirement, disability, and death benefits for part-time educational employees and provides for the administration and operation of the plan. Existing law defines employer for purposes of those provisions to mean a school district, community college district, or county office of education that has elected to provide the benefits of that law to persons employed to perform creditable service. This bill would provide that the Teachers Retirement Board has final authority for determining an employer for purposes of that law. (3) Existing law, the Public Employees Retirement Law (PERL), creates the Public Employees Retirement System (PERS) for the purpose of providing pension benefits to state employees and employees of contracting agencies and prescribes the rights and duties of members of the system and their beneficiaries. Existing law vests management and control of PERS in its board of administration. PERS provides a defined benefit to members of the program, based on final compensation, credited service, and age at retirement, subject to certain variations. Existing law, the California Public Employees Pension Reform Act of 2013 (PEPRA), on and after January 1, 2013, requires a public retirement system, as defined, to modify its plan or plans to comply with PEPRA, as specified. Among other things, PEPRA prohibits a public employer from offering a defined benefit pension plan exceeding specified retirement formulas and requires new members of public retirement systems to contribute at least a specified amount of the normal cost, as defined. PEPRA defines pensionable compensation for a new member of any public retirement system to mean the normal monthly rate of pay or base pay of the member paid in cash to similarly situated members of the same group or class of employment for services rendered on a full-time basis, as specified.Under PERL, the highest annual average compensation during any consecutive 12- or 36-month period of employment as a member of a retirement system maintained by the University of California is considered compensation earnable by a member of PERS for purposes of computing final compensation for the member providing that member retires concurrently under both systems. This bill would instead specify that the highest annual average compensation in the above-described circumstances shall be considered compensation earnable or pensionable compensation pursuant to PEPRA, whichever is applicable. PERL defines state service solely for purposes of qualification for benefits and retirement allowances under PERS to also include service rendered as an officer or employee of a county if the salary for the service constitutes compensation earnable by a member of PERS, as prescribed.This bill would instead provide that state service in the above-described circumstances shall be considered compensation earnable or pensionable compensation pursuant to PEPRA, whichever is applicable.PERL also provides that the highest annual compensation during any 12- or 36-month period of employment as a member of a county retirement system is considered compensation earnable by a member of PERS for purposes of computing final compensation, as prescribed.This bill would instead specify that the highest annual average compensation in the above-described circumstances shall be considered compensation earnable or pensionable compensation pursuant to PEPRA, whichever is applicable. Under PERL, the compensation during any period of service as a member of the Judges Retirement System, the Judges Retirement System II, the Legislators Retirement System, or the Defined Benefit Program of the State Teachers Retirement Plan is considered compensation earnable as a member of PERS for purposes of computing final compensation for the member, if that member retires concurrently under both systems.This bill would instead specify that the compensation during any period of service, as described above, is considered compensation earnable or pensionable compensation under PEPRA, whichever is applicable, for purposes of computing final compensation. (4) Existing law, the County Employees Retirement Law of 1937 (CERL), authorizes counties to establish retirement systems pursuant to its provisions in order to provide pension benefits to county, city, and district employees and their beneficiaries. Under existing law, CERL provides for a defined retirement benefit based upon credited service, final compensation, and age at retirement subject to specified formulas relating to membership classification.Existing law provides that, for a member who is subject to PEPRA, a specified definition of final compensation contained in that law applies for all or any portion of their membership in the county retirement system. Existing law provides that when determining final compensation for a member who does not have 3 consecutive years of earned pensionable compensation due to an absence, the compensation for any absence is based on the pensionable compensation of the position held by the member immediately prior to the absence.This bill would delete that latter provision. The bill would revise the above provision concerning PEPRA to specify that the compensation for any absence is based on the pensionable compensation of the position held by the member at the beginning of the absence.Existing law provides that local prosecutors, local public defenders, and local public defender investigators are eligible to participate in CERL, as specified. Under existing law, past service as a general member is required to be converted to safety service if the past service was rendered in a position that has subsequently been reclassified as a safety position pursuant to that provision.This bill would revise that provision to specify that it applies to service before January 1, 2013. The bill would specify that on and after January 1, 2013, any enhancement to safety service is subject to a provision of PEPRA governing the retirement formulas and benefits of all public employees.Existing law prohibits a person who has been retired under CERL from being employed in any capacity thereafter by a county or district of the retirement system unless the person has first been reinstated from retirement or is authorized under CERL or PEPRA. Existing law provides that if an employer fails to enroll, solely for the administrative recordkeeping purposes of the system, a retired member employed in any capacity, without reinstatement, within 30 days of the effective date of hire, the board may assess the employer a fee of $200 per retired member per month until the retired member is enrolled in those administrative aspects of the system.This bill would instead provide that if an employer fails to report the above-described information, in a format determined by the system, and within the above-described timeframe, the board may assess that $200 fee until the information is reported. Existing law also authorizes the board to assess the employer a fee of $200 per retired member per month if an employer fails to report the pay rate and number of hours worked by a retired member, without reinstatement, within 30 days following the last day of the pay period in which the retired member worked. This bill would delete the 30-day period described above and instead would replace it with at periods determined by the system.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 22104.8 of the Education Code, as added by Section 2 of Chapter 690 of the Statutes of 2024, is amended to read:22104.8. (a) Annualized pay rate means the salary, as described in Section 22119.3, a person could earn during a school term in each position subject to membership if creditable service were performed for that position on a full-time basis.(b) The annualized pay rate shall be determined pursuant to the publicly available pay schedule by using either of the following methods:(1) Explicitly itemized as a single amount, either separately or within a table.(2) Derived from an explicit hourly or daily rate multiplied by the total hours or days required in order to be employed in the position subject to membership on a full-time basis pursuant to Section 22138.5. If the total hours or days required to be employed on a full-time basis is not established, the number of hours or days shall be the minimum standard described in Section 22138.5.(c) If no annualized pay rate exists pursuant to subdivision (b) for a position subject to membership, all compensation earned in that position shall be deemed supplemental pay pursuant to paragraph (2) of subdivision (a) of Section 22119.3.(d) This definition of annualized pay rate is consistent with subdivision (e) of Section 22115.(e) (1) The board shall determine a date based on when the system has the capacity to implement the changes made by the act that added this subdivision. The date determined by the board shall be posted on the internet website of the system no later than July 1, 2027.(2) This section shall become operative on the date determined by the board pursuant to paragraph (1).SEC. 2. Section 22131 of the Education Code is amended to read:22131. (a) (1) Employer or employing agency means the state or any agency or political subdivision thereof, including, but not limited to, a joint powers authority, for which creditable service subject to coverage by the plan is performed.(2) In the case of a joint powers authority, all of the following criteria shall be met:(A) The joint powers authority shall be formed pursuant to the Joint Exercise of Powers Act (Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code).(B) All entities included in the joint powers authority shall be entities at which creditable service subject to coverage by the plan is performed.(C) The joint powers authority shall report through a single county office of education, with that county superintendent having responsibility for activities specified under this part, including but not limited to, reporting and remitting contributions.(b) This section shall be administered in compliance with the requirements defining a governmental plan set forth in Section 414(d) of the Internal Revenue Code of 1986 (26 U.S.C. Sec. 414(d)).(c) The board shall have final authority for determining an employer or employing agency for purposes of this part and Part 13.5 (commencing with Section 25900).SEC. 3. Section 22146.5 of the Education Code is amended to read:22146.5. Membership means membership in the Defined Benefit Program, except as otherwise specifically provided in this part. The board shall have final authority for determining membership in the system, considering the conditions under which persons may be admitted to and receive benefits from the system.SEC. 4. Section 22713 of the Education Code is amended to read:22713. (a) Notwithstanding any other provision of this chapter, if the governing board of a school district or a community college district, or a county superintendent of schools establishes regulations pursuant to Sections 44922 and 87483, an employer may enter into a written agreement with an employee who is a member of the Defined Benefit Program to reduce their workload in a position from full time to part time, receive the service credit the member would have received if the member had been employed in that position on a full-time basis and have their retirement allowance, as well as other benefits that the member is entitled to under this part, based, in part, on the final compensation the member would have been entitled to if the member had been employed on a full-time basis. The option to reduce the members workload shall be exercised at the request of the member if all of the following conditions are met:(1) The member is employed by either of the following:(A) A school district or county office of education as a prekindergarten through grade 12 certificated employee who does not hold a position with a salary above the maximum salary of a school principal for that employer.(B) A community college district.(2) The member has a minimum of 10 years of credited service in the Defined Benefit Program prior to the start of the school term of the first school year of the agreement to reduce the members workload.(3) The member shall have been employed on a full-time basis to perform creditable service under the Defined Benefit Program each year of the five school years immediately preceding the first school year in which the members workload is reduced, without having a break in service. For the purposes of this paragraph:(A) Employer-approved leaves of absence, and unpaid absences from the performance of creditable service for personal reasons from full-time employment do not constitute a break in service.(B) Creditable service that was performed for a school year in which a member reduced their workload pursuant to this section shall be treated as full time, provided that the agreement to reduce the members workload was not terminated during that year pursuant to subdivision (e).(C) The period of time during which a member is retired for service shall constitute a break in service.(4) The member is 55 years of age or older prior to the start of the school term of the first school year of the agreement for which the members workload is reduced.(b) The employer, in conjunction with the system, shall certify the members eligibility for participation in the reduced workload program in accordance with subdivision (a). The employers certification shall be submitted in a format prescribed by the system and shall be received in the systems headquarters office prior to the start of the school term of the first school year of the agreement for which the members workload is reduced.(c) The agreement to reduce the members workload shall be in effect prior to the start of the school term of the first school year of the agreement for which the members workload is reduced, and shall include the following requirements:(1) The total amount of time in which a member reduces their workload pursuant to this section shall not exceed 10 school years.(2) The reduced workload shall be equal to at least one-half of the time the employer requires for full-time employment in that position in accordance with Section 22138.5.(3) The member shall be paid creditable compensation that is the pro rata share of the creditable compensation the member would have been paid for that position had the member not reduced their workload.(4) For each school year the members workload is reduced pursuant to this section, the member shall make contributions to the Teachers Retirement Fund in the amount that the member would have contributed if the member had performed creditable service for that position on a full-time basis and if that service was subject to coverage under the Defined Benefit Program.(5) For each school year the members workload is reduced pursuant to this section, the employer shall contribute to the Teachers Retirement Fund at a rate adopted by the board as a plan amendment with respect to the Defined Benefit Program an amount based upon the creditable compensation that would have been paid to the member if the member had performed creditable service for that position on a full-time basis and if that service was subject to coverage under the Defined Benefit Program.(d) The employer shall maintain the necessary records to separately identify each member who participates in the reduced workload program pursuant to this section.(e) The agreement to reduce a members workload shall be terminated if one of the following actions is taken:(1) The members employment is terminated prior to the end of the school term.(2) The member earns less than one-half of the annualized pay rate as defined in Section 22104.8.(3) The member and the employer mutually agree that the member will perform creditable service without making contributions in accordance with paragraphs (4) and (5) of subdivision (c).(f) Upon termination of the agreement for any of the reasons described in subdivision (e):(1) The employer shall notify the system that the agreement to reduce a members workload has been terminated within 30 days of the agreement being terminated.(2) The members service credit and contributions for that school year in which the agreement is terminated shall be computed in accordance with Section 22701 and Chapters 15 and 16.(3) That school year in which the agreement is terminated shall not be included in the total amount of time in which a member is allowed to reduce their workload pursuant to paragraph (1) of subdivision (c).(4) Any subsequent agreement to reduce a members workload shall meet all of the conditions set forth in this section.SEC. 5. Section 22954 of the Education Code is amended to read:22954. (a) Notwithstanding Section 13340 of the Government Code, a continuous appropriation is hereby annually made from the General Fund to the Controller, pursuant to this section, for transfer to the Supplemental Benefit Maintenance Account in the Teachers Retirement Fund.(b) Except as reduced pursuant to subdivision (c), the total amount of the appropriation for each year shall be equal to 2.5 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based for purposes of funding the supplemental payments authorized by Section 24415, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5.(c) Beginning with the 200809 fiscal year, the appropriation in subdivision (b) shall be reduced in accordance with the following schedule:200809 ........................ $66,386,000200910 ........................ $70,000,000201011 ........................ $71,000,000201112 and each fiscal year thereafter ........................ $72,000,000(d) Transfers made to the Supplemental Benefit Maintenance Account, pursuant to subdivision (a), shall be made on October 15 and April 15 of each fiscal year with each payment to be 50 percent of the annual appropriation. If either date falls on a weekend or holiday, the funds shall be transferred the next business day.(e) Notwithstanding subdivision (d), for the 201011 fiscal year only, the transfer that would have been made pursuant to subdivision (d) on October 15, 2010, shall be made on November 15, 2010, and the transfer that would have been made pursuant to subdivision (d) on April 15, 2011, shall be made on March 14, 2011.(f) The board may deduct from the annual appropriation made pursuant to this section an amount necessary for the administrative expenses of Section 24415.(g) It is the intent of the Legislature in enacting this section to establish the supplemental payments pursuant to Section 24415 as vested benefits pursuant to a contractually enforceable promise to make annual contributions from the General Fund to the Supplemental Benefit Maintenance Account in the Teachers Retirement Fund in order to provide a continuous annual source of revenue for the purposes of making the supplemental payments under Section 24415.SEC. 6. Section 22955 of the Education Code is amended to read:22955. (a) Notwithstanding Section 13340 of the Government Code, commencing July 1, 2003, a continuous appropriation is hereby annually made from the General Fund to the Controller, pursuant to this section, for transfer to the Teachers Retirement Fund. The total amount of the appropriation for each year shall be equal to 2.017 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5, and shall be divided into four equal payments. The payments shall be made on July 1, October 1, December 15, and April 15 of each fiscal year. If any of these dates fall on a weekend or holiday, the funds shall be transferred the next business day.(b) Notwithstanding Section 13340 of the Government Code, commencing October 1, 2003, a continuous appropriation, in addition to the appropriation made by subdivision (a), is hereby annually made from the General Fund to the Controller for transfer to the Teachers Retirement Fund. The total amount of the appropriation for each year shall be equal to 0.524 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5, and shall be divided into four equal quarterly payments. The percentage shall be adjusted to reflect the contribution required to fund the normal cost deficit or the unfunded obligation as determined by the board based upon a recommendation from its actuary. If a rate increase is required, the adjustment may be for no more than 0.25 percent per year and in no case may the transfer made pursuant to this subdivision exceed 1.505 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based. At any time when there is neither an unfunded obligation nor a normal cost deficit, the percentage shall be reduced to zero. The funds transferred pursuant to this subdivision shall first be applied to eliminating on or before June 30, 2027, the unfunded actuarial liability of the fund identified in the actuarial valuation as of June 30, 1997.(c) For the purposes of this section, the term normal cost deficit means the difference between the normal cost rate as determined in the actuarial valuation required by Section 22311 and the total of the member contribution rate required under Section 22901 and the employer contribution rate required under Section 22950, and shall exclude (1) the portion for unused sick leave service credit granted pursuant to Section 22717, and (2) the cost of benefit increases that occur after July 1, 1990. The contribution rates prescribed in Section 22901 and Section 22950 on July 1, 1990, shall be utilized to make the calculations. The normal cost deficit shall then be multiplied by the total of the creditable compensation upon which member contributions under this part are based to determine the dollar amount of the normal cost deficit for the year.(d) Pursuant to Section 22001 and case law, members are entitled to a financially sound retirement system. It is the intent of the Legislature that this section shall provide the retirement fund stable and full funding over the long term.(e) This section continues in effect but in a somewhat different form, fully performs, and does not in any way unreasonably impair, the contractual obligations determined by the court in California Teachers Association v. Cory, 155 Cal.App.3d 494.(f) Subdivision (b) shall not be construed to be applicable to any unfunded liability resulting from any benefit increase or change in contribution rate under this part that occurs after July 1, 1990.(g) The provisions of this section shall be construed and implemented to be in conformity with the judicial intent expressed by the court in California Teachers Association v. Cory, 155 Cal.App.3d 494.(h) Subdivisions (a) through (g), inclusive, shall be inoperative on and after July 1, 2014, and shall become operative beginning the earlier of July 1, 2046, or July 1 of the first fiscal year after a 30-day notice has been sent to the Joint Legislative Budget Committee and the Controller in compliance with subdivision (d) of Section 22957.SEC. 7. Section 22955.1 of the Education Code is amended to read:22955.1. (a) Notwithstanding Section 13340 of the Government Code, commencing July 1, 2003, a continuous appropriation is hereby annually made from the General Fund to the Controller, pursuant to this section, for transfer to the Teachers Retirement Fund. The total amount of the appropriation for each year shall be equal to 2.017 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5, and shall be divided into four equal payments. The payments shall be made on July 1, October 1, December 15, and April 15 of each fiscal year. If any of these dates fall on a weekend or holiday, the funds shall be transferred the next business day.(b) (1) Commencing July 1, 2014, the amount of the appropriation required under subdivision (a) shall increase by the following percentages of the creditable compensation upon which that appropriation is based:(A) On July 1, 2014, by 1.437 percent.(B) On July 1, 2015, by 2.874 percent.(C) On July 1, 2016, by 4.311 percent.(2) Except as provided in paragraph (3), for the 201718 fiscal year and each fiscal year thereafter, the board shall increase or decrease the percentage specified in this subdivision from the percentage paid during the prior fiscal year to reflect the contribution required to eliminate the remaining unfunded actuarial obligation, as determined by the board based upon a recommendation from its actuary. If a rate increase is required, the adjustment may be for no more than 0.50 percent per year of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based. At any time when there is not an unfunded actuarial obligation as determined by the board, the percentage specified in this subdivision shall be reduced to zero.(3) For the 202021 fiscal year, the percentage specified in this subdivision shall be the percentage set by the board pursuant to paragraph (2) for the 201920 fiscal year, and the board shall not increase or decrease the percentage specified in this paragraph for the 202021 fiscal year. This paragraph does not prevent payments towards the unfunded actuarial obligation from being made from other sources of funding, including, but not limited to, other sources in the General Fund.(c) Pursuant to Section 22001 and case law, members are entitled to a financially sound retirement system. It is the intent of the Legislature that this section shall provide the retirement fund stable and full funding over the long term.(d) This section continues in effect but in a somewhat different form, fully performs, and does not in any way unreasonably impair, the contractual obligations determined by the court in California Teachers Association v. Cory (1984) 155 Cal.App.3d 494.(e) Subdivision (b) shall not be construed to be applicable to any unfunded actuarial obligation resulting from any benefit increase or change in contribution rate under this part that occurs after July 1, 1990, except that state contributions made pursuant to subdivision (b) shall be allocated to reduce the unfunded actuarial obligation resulting from the benefits and contribution rates in effect as of July 1, 1990.(f) The provisions of this section shall be construed and implemented to be in conformity with the judicial intent expressed by the court in California Teachers Association v. Cory (1984) 155 Cal.App.3d 494.(g) (1) Except as described in paragraph (2), this section shall become inoperative on July 1, 2046, and as of January 1, 2047, is repealed.(2) Notwithstanding paragraph (1), on July 1 of the first fiscal year after a 30-day notice has been sent to the Joint Legislative Budget Committee and the Controller in compliance with subdivision (d) of Section 22957, this section shall become inoperative and, as of the following January 1, is repealed.SEC. 8.Section 24502 of the Education Code is amended to read:24502.In the exercise of its rights under this part, the board or the agent under contract may commence or prosecute actions, file liens, intervene in court proceedings, join parties to the action and consolidate actions all in the same manner and to the same extent provided in Chapter 5 (commencing with Section 3850) of Part 1 of Division 4 of the Labor Code except that recovery shall not be made from benefits payable under this part because of the injury or death. The superior court of any county within California where venue would be proper or the Superior Court of the County of Sacramento shall have jurisdiction of, and shall be the appropriate venue for, any suit, action, or legal proceedings relating to the subrogation rights of STRS under this part.SEC. 9.SEC. 8. Section 24616.2 of the Education Code is amended to read:24616.2. (a) Except as limited pursuant to Section 22008:(1) All amounts that have been overpaid due to inaccurate information, untimely submission, nonsubmission of information, or on the basis of fraud or intentional misrepresentation by, or on behalf of, a recipient of a benefit, annuity, or refund shall be recovered, as applicable, from the member, participant, former member, former participant, or beneficiary. This paragraph excludes amounts overpaid pursuant to paragraph (2), (3), or (4).(2) All amounts that have been overpaid due to inaccurate information, untimely submission, or nonsubmission of information by an employer that reports directly to the system shall be recovered, as applicable, from that employer.(3) All amounts that have been overpaid due to inaccurate information, untimely submission, or nonsubmission of information by a county superintendent of schools that reports directly to the system on behalf of an employer shall be recovered, as applicable, from that county superintendent of schools. If the overpayment resulted from an error of an employer, the county superintendent of schools may recover the amounts required from that employer pursuant to Section 23012.(A) If the county superintendent of schools provided notice to, and received consent from, an employer to submit that employers monthly report, inclusive of any modifications by the county superintendent of schools on behalf of the employer, an overpayment due to inaccurate information shall be considered an error of that employer.(B) If the untimely submission or nonsubmission of information was the result of the employers untimely submission or nonsubmission of information, the overpayment shall be considered an error of the employer.(4) (A) All amounts that have been overpaid due to an error by the system shall be recovered, with interest as specified in subparagraph (B), as follows:(i) Commencing July 1, 2024, 85 percent of this amount resulting from benefit adjustments that take place within the fiscal year ending in the immediately preceding calendar year, the specific amount of which shall be determined by the board, shall be made as a continuous appropriation from the General Fund to the Controller each July 1 for transfer to the Teachers Retirement Fund. If July 1 falls on a weekend or holiday, the funds shall be transferred the next business day.(ii) Commencing July 1, 2024, 15 percent of this amount resulting from benefit adjustments that take place within the fiscal year ending in the immediately preceding calendar year, the specific amount of which shall be determined by the board, shall be recovered from all employers that report directly to the system in amounts proportionate to their share of contributions for that fiscal year, including the contributions of those employers for whom a county superintendent of schools reports. A county superintendent of schools that reports directly to the system on behalf of employers may recover amounts proportionate to each employers share of contributions for that fiscal year from those employers pursuant to Section 23012.(B) The amount to be recovered in accordance with subparagraph (A) shall be calculated to include regular interest from the date of the overpayment to the date of recovery.(b) (1) An employer shall remit any amount required to be paid to the system pursuant to this section within 30 days of the date of the invoice. If the system does not receive payment within 30 days, the amount owed to the system shall be recalculated to include regular interest from the initial due date.(2) If a payment pursuant to paragraph (1) is not received within 30 days of the date of invoice, the Controller shall, upon the order of the board, reduce subsequent payments from the State School Fund to the county for deposit in the county school service fund by the amount owed or, upon the request of a county superintendent of schools to the county auditor, the Controller shall reduce payments to a school district for deposit in the district general fund by the amount owed. The Controller shall then pay to the system the amount owed for deposit in the Teachers Retirement Fund.(c) Determination of an amount that has been overpaid shall be provided in writing by the system to the party responsible for the overpayment pursuant to subdivision (a). The system shall identify the error, document the source of the error, and specify the total amount overpaid due to the error.(d) This section shall not apply to a recovery made under Section 24015, 24016, or 24017 or to a benefit or allowance reduction required pursuant to Section 24010, 24109, 24114, 24201.5, 24214, or 24214.5.(e) Except as explicitly provided by its provisions, this section shall not be interpreted to limit the systems authority to correct benefits.SEC. 10.SEC. 9. Section 26122 of the Education Code is amended to read:26122. (a) Employer means a school district, community college district, or county office of education that has elected to provide the benefits of this part to persons employed to perform creditable service. Employer shall not include the state.(b) The board shall have final authority for determining an employer for purposes of this part.SEC. 10. Section 7522.02 of the Government Code is amended to read:7522.02. (a) (1) Notwithstanding any other law, except as provided in this article, on and after January 1, 2013, this article shall apply to all state and local public retirement systems and to their participating employers, including the Public Employees Retirement System, the State Teachers Retirement System, the Legislators Retirement System, the Judges Retirement System, the Judges Retirement System II, county and district retirement systems created pursuant to the County Employees Retirement Law of 1937 (Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3), independent public retirement systems, and to individual retirement plans offered by public employers. However, this article shall be subject to the Internal Revenue Code and Section 17 of Article XVI of the California Constitution. The administration of the requirements of this article shall comply with applicable provisions of the Internal Revenue Code and the Revenue and Taxation Code.(2) Notwithstanding paragraph (1), this article shall not apply to the entities described in Section 9 of Article IX of, and Sections 4 and 5 of Article XI of, the California Constitution, except to the extent that these entities continue to be participating employers in any retirement system governed by state statute. Accordingly, any retirement plan approved before January 1, 2013, by the voters of any entity excluded from coverage by this section shall not be affected by this article.(3) (A) Notwithstanding paragraph (1), this article shall not apply to a public employee whose interests are protected under Section 5333(b) of Title 49 of the United States Code until a federal district court rules that the United States Secretary of Labor, or their designee, erred in determining that the application of this article precludes certification under that section, or until January 1, 2016, whichever is sooner.(B) If a federal district court upholds the determination of the United States Secretary of Labor, or their designee, that application of this article precludes them from providing a certification under Section 5333(b) of Title 49 of the United States Code, this article shall not apply to a public employee specified in subparagraph (A).(4) Notwithstanding paragraph (1), this article shall not apply to a multiemployer plan authorized by Section 302(c)(5) of the federal Taft-Hartley Act (29 U.S.C. Sec. 186(c)(5)) if the public employer began participation in that plan prior to January 1, 2013, and the plan is regulated by the federal Employee Retirement Income Security Act of 1974 (29 U.S.C. Sec. 1001 et seq.).(b) The benefit plan required by this article shall apply to public employees who are new members as defined in Section 7522.04.(c) (1) Individuals who were employed by any public employer before January 1, 2013, and who became employed by a subsequent public employer for the first time on or after January 1, 2013, shall be subject to the retirement plan that would have been available to employees of the subsequent employer who were first employed by the subsequent employer on or before December 31, 2012, if the individual was subject to concurrent membership for which creditable service was performed in the previous six months or reciprocity established under any of the following provisions:(A) Article 5 (commencing with Section 20350) of Chapter 3 of Part 3 of Division 5 of Title 2.(B) Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3.(C) Any agreement between public retirement systems to provide reciprocity to members of the systems.(D) Section 22115.2 of the Education Code.(2) An individual who was employed before January 1, 2013, and who, without a separation from employment, changed employment positions and became subject to a different defined benefit plan in a different public retirement system offered by their employer shall be subject to that defined benefit plan as it would have been available to employees who were first employed on or before December 31, 2012.(d) If a public employer, before January 1, 2013, offers a defined benefit pension plan that provides a defined benefit formula with a lower benefit factor at normal retirement age and results in a lower normal cost than the defined benefit formula required by this article, that employer may continue to offer that defined benefit formula instead of the defined benefit formula required by this article, and shall not be subject to the requirements of Section 7522.10 for pensionable compensation subject to that formula. However, if the employer adopts a new defined benefit formula on or after January 1, 2013, that formula must conform to the requirements of this article or must be determined and certified by the retirement systems chief actuary and the retirement board to have no greater risk and no greater cost to the employer than the defined benefit formula required by this article and must be approved by the Legislature. New members of the defined benefit plan may only participate in the lower cost defined benefit formula that was in place before January 1, 2013, or a defined benefit formula that conforms to the requirements of this article or is approved by the Legislature as provided in this subdivision.(e) If a public employer, before January 1, 2013, offers a retirement benefit plan that consists solely of a defined contribution plan, that employer may continue to offer that plan instead of the defined benefit pension plan required by this article. However, if the employer adopts a new defined benefit pension plan or defined benefit formula on or after January 1, 2013, that plan or formula must conform to the requirements of this article or must be determined and certified by the retirement systems chief actuary and the systems board to have no greater risk and no greater cost to the employer than the defined benefit formula required by this article and must be approved by the Legislature. New members of the employers plan may only participate in the defined contribution plan that was in place before January 1, 2013, or a defined contribution plan or defined benefit formula that conforms to the requirements of this article. This subdivision shall not be construed to prohibit an employer from offering a defined contribution plan on or after January 1, 2013, either with or without a defined benefit plan, whether or not the employer offered a defined contribution plan prior to that date.(f) (1) If, on or after January 1, 2013, the Cities of Brea and Fullerton form a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Article 1 (commencing with Section 6500) of Chapter 5), that joint powers authority may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of a common power, to which the employee is associated, by the joint powers authority to any employee of the City of Brea, the City of Fullerton, or a city described in paragraph (2) who is not a new member and subsequently is employed by the joint powers authority within 180 days of the city providing for the exercise of a common power, to which the employee was associated, by the joint powers authority.(2) On or before January 1, 2017, a city in Orange County that is contiguous to the City of Brea or the City of Fullerton may join the joint powers authority described in paragraph (1) but not more than three cities shall be permitted to join.(3) The formation of a joint powers authority on or after January 1, 2013, shall not act in a manner as to exempt a new employee or a new member, as defined by Section 7522.04, from the requirements of this article. New members may only participate in a defined benefit plan or formula that conforms to the requirements of this article.(g) (1) If, on or after January 1, 2013, the Belmont Fire Protection District, the Estero Municipal Improvement District, and the City of San Mateo form a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Article 1 (commencing with Section 6500) of Chapter 5), that joint powers authority may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of a common power, to which the employee is associated, by the joint powers authority to any employee of the Belmont Fire Protection District, the Estero Municipal Improvement District, and the City of San Mateo who is not a new member and subsequently is employed by the joint powers authority within 180 days of the agency providing for the exercise of a common power, to which the employee was associated, by the joint powers authority.(2) The formation of a joint powers authority on or after January 1, 2013, shall not act in a manner as to exempt a new employee or a new member, as defined by Section 7522.04, from the requirements of this article. New members may only participate in a defined benefit plan or formula that conforms to the requirements of this article.(3)On and after January 1, 2024, a county and a trial court that separate their joint contract into individual contracts pursuant to Section 20471.2 may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of the option to separate, provided that the employee subsequently does not otherwise meet the definition of a new employee.(h) The Judges Retirement System and the Judges Retirement System II shall not be required to adopt the defined benefit formula required by Section 7522.20 or 7522.25 or the compensation limitations defined in Section 7522.10.(i) This article shall not be construed to provide membership in any public retirement system for an individual who would not otherwise be eligible for membership under that systems applicable rules or laws.(j) On and after January 1, 2013, each public retirement system shall modify its plan or plans to comply with the requirements of this article and may adopt regulations or resolutions for this purpose.(k) On and after January 1, 2024, a county and a trial court that separate their joint contract into individual contracts pursuant to Section 20471.2 may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of the option to separate, provided that the employee subsequently does not otherwise meet the definition of a new employee.SEC. 11. Section 20034 of the Government Code is amended to read:20034. The highest annual average compensation during any consecutive 12- or 36-month period of employment as a member of any retirement system maintained by the university shall be considered compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, by a member of this system for purposes of computing final compensation for the member providing the member retires concurrently under both systems.SEC. 12. Section 20069 of the Government Code is amended to read:20069. (a) State service means service rendered as an employee or officer (employed, appointed, or elected) of the state, the California Institute for Regenerative Medicine and the officers and employees of its governing body, the university, a school employer, or a contracting agency, for compensation, and only while receiving compensation from that employer therefor, except as provided in Article 4 (commencing with Section 20990) of Chapter 11.(b) State service, solely for purposes of qualification for benefits and retirement allowances under this system, shall also include service rendered as an officer or employee of a county if the salary for the service constitutes compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, by a member of this system under Section 20638.(c) State service, except for purposes of qualification for health or dental benefits, shall also include compensated service rendered by an officer, warrant officer, or a person of the enlisted ranks of the California National Guard who has elected to become a member pursuant to Section 20326 and who has not canceled their membership pursuant to Section 20327.SEC. 13. Section 20638 of the Government Code is amended to read:20638. The highest annual average compensation during any consecutive 12- or 36-month period of employment as a member of a county retirement system shall be considered compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, by a member of this system for purposes of computing final compensation for the member provided:(a) (1) Entry into employment in which the person became a member in one system occurred on or after October 1, 1957, and within 90 days of discontinuance of employment as a member of the other system.(2) This subdivision shall not deny the benefit of this section to any person retiring after October 1, 1963, who entered membership prior to October 1, 1957, if the person entered the employment in which they became a member within 90 days of termination of employment in which they were a member of the other system, and they became a member within seven months of entry into employment, or, if an employee of a district as defined in Section 31468, became a member at the time the district was included in a county retirement system.(b) The member retires concurrently under both systems and is credited with the period of service under the county system at the time of retirement.SEC. 14. Section 20639 of the Government Code is amended to read:20639. The compensation earnable during any period of service as a member of the Judges Retirement System, the Judges Retirement System II, the Legislators Retirement System, or the Defined Benefit Program of the State Teachers Retirement Plan shall be considered compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, as a member of this system for purposes of computing final compensation for the member, if the member retires concurrently under both systems.A member shall be deemed to have retired concurrently under this system and under the Defined Benefit Program of the State Teachers Retirement Plan, if the member is enrolled as a disabled member under the Defined Benefit Program of the State Teachers Retirement Plan and for retirement under this system on the same effective date.SEC. 15. Section 31462.05 of the Government Code is amended to read:31462.05. (a) For a member who is subject to the California Public Employees Pension Reform Act of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of Division 7 of Title 1) for all or any portion of their membership in the county retirement system, final compensation as defined in Section 7522.32 shall apply. The computation for any absence shall be based on the pensionable compensation of the position held by the member at the beginning of the absence.(b) If a member has less than three years of service, that members final compensation shall be determined by dividing the total pensionable compensation by the number of months of service credited to the member and multiplying by 12.SEC. 16. Section 31470.14 of the Government Code is amended to read:31470.14. (a) Local prosecutors, local public defenders, and local public defender investigators are eligible.(b) Except as provided in subdivision (c) and notwithstanding Sections 31639.7 and 31639.75, past service as a general member shall be converted to safety service if the past service was rendered in a position that has subsequently been reclassified as a safety position pursuant to this section before January 1, 2013. On or after January 1, 2013, any enhancement to safety service shall be subject to Section 7522.44. For local prosecutors, as described in paragraph (2) of subdivision (a) of Section 31469.2, service in the office of a district attorney and a local child support agency shall be considered service for the district attorney for purposes of this section.(c) Notwithstanding any other provision of this chapter, within 90 days after this section becomes operative in the county, or on the first day of the calendar month following entrance into service, whichever is later, a local prosecutor, local public defender, or local public defender investigator may file a written election not to become a local safety member pursuant to this section.(d) Notwithstanding any other provision of this chapter, local prosecutors, local public defenders, and local public defender investigators shall be subject to the benefit formula contained in Section 31664 or 31664.2, or any other benefit formula applicable to safety members that does not provide benefits greater than those benefits provided under Section 31664.2, as designated in the resolution described in subdivision (e). A local prosecutor, local public defender, or local public defender investigator shall not be deemed to be a county peace officer, as defined in Section 31469.1, for any purpose under this chapter.(e) This section shall not be operative in a county unless and until the board of supervisors, by resolution adopted by majority vote, makes this section operative in the county. A resolution to make this section operative in the county shall include all local prosecutors, local public defenders, and local public defender investigators described in Section 31469.2.(f) A provision in a memorandum of understanding that an employer is not obligated to meet and confer regarding wages, hours, or conditions of employment during the term of the memorandum shall not be construed to preclude meetings regarding the provisions of this section between an employer and local prosecutors, local public defenders, and local public defender investigators prior to the expiration of the term of the memorandum of understanding.(g) This section does not apply to any person described in Section 31469.2 who dies prior to the date this section becomes applicable in the county.SEC. 17. Section 31680.9 of the Government Code is amended to read:31680.9. (a) A person who has been retired under the retirement system, for service or for disability, may not be employed in any capacity thereafter by the county or a district of the retirement system unless the person has first been reinstated from retirement pursuant to this chapter, or unless the employment, without reinstatement, is authorized by this article or the Public Employees Pension Reform Act of 2013. A retired person whose employment without reinstatement is authorized by this article or the Public Employees Pension Reform Act shall acquire no service credit or retirement rights under this part with respect to the employment.(b) Any retired member employed in violation of Section 31680.2, 31680.3, 31680.6, or 7522.56 shall do all of the following:(1) Reimburse the retirement system for any retirement allowance received during the period or periods of employment that are in violation of law. The retirement allowance that was paid in violation of law shall be considered an overpayment subject to collection by the retirement system.(2) Only if reinstated, pay to the retirement system an amount of money equal to the employee contributions that would otherwise have been paid during the period or periods of unlawful employment, plus interest thereon.(3) Contribute toward reimbursement of the retirement system for reasonable administrative expenses incurred in responding to this situation, to the extent the member is determined by the retirement system administrator to be at fault.(c) Any public employer that employs a retired member in violation of Section 31680.2, 31680.3, 31680.6, or 7522.56 shall do both of the following:(1) Only if the retired member is reinstated, pay to the retirement system an amount of money equal to employer contributions that would otherwise have been paid for the period or periods of time that the member is employed in violation of this article, plus interest thereon.(2) Contribute toward reimbursement of the retirement system for reasonable administrative expenses incurred in responding to this situation, to the extent the employer is determined by the administrator of the retirement system to be at fault.(d) If an employer fails to report, in a format determined by the system for the administrative recordkeeping purposes of the system, a retired member employed in any capacity, without reinstatement, within 30 days of the effective date of hire, the board may assess the employer a fee of two hundred dollars ($200) per retired member per month until the information is reported.(e) If an employer fails to report the pay rate and number of hours worked of a retired member employed in any capacity, without reinstatement, at periods determined by the system, the board may assess the employer a fee of two hundred dollars ($200) per retired member per month until the information is reported.(f) An employer shall not pass on to an employee any fees assessed pursuant to subdivisions (d) and (e).(g) The employer shall provide written notice to the employee, by an appropriate mechanism, including by first-class mail or email, before the employee is within 10 business days or 80 hours of the period of time included in Section 31680.2, 31680.3, 31680.6, or 7522.56. | |
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| 3 | + | Amended IN Senate April 10, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 853Introduced by Committee on Labor, Public Employment and Retirement (Senators Smallwood-Cuevas (Chair), Cortese, Durazo, and Laird) Laird, and Strickland)March 04, 2025An act to amend Sections 22104.8, 22131, 22146.5, 22713, 22954, 22955, 22955.1, 24502, 24616.2, and 26122 of the Education Code, and to amend Sections 7522.02, 20034, 20069, 20638, 20639, 31462.05, 31470.14, and 31680.9 of the Government Code, relating to public retirement systems. LEGISLATIVE COUNSEL'S DIGESTSB 853, as amended, Committee on Labor, Public Employment and Retirement. Public employees retirement.(1) Existing law, 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, creditable service, and age at retirement, subject to certain variations. STRS is administered by the Teachers Retirement Board. Existing law requires employers and employees to make contributions to the system based on the members creditable compensation. Existing law defines terms for the purposes of STRS. Existing law defines employer or employing agency to mean the state or any agency or political subdivision thereof, including a joint powers authority, as specified. Existing law also defines membership under the Teachers Retirement Law to mean membership in the Defined Benefit Program, except as specified.This bill would provide that the board has final authority for determining an employer or employing agency for purposes of the Teachers Retirement Law and related provisions governing teachers health care benefits. The bill would also provide that the board has final authority for determining membership in STRS, as specified.Existing law authorizes the governing board of a school district or community college district to establish regulations, subject to specified requirements, to permit an employee who is a member of the Defined Benefit Plan to reduce their workload from full time to part time and have retirement benefits calculated as if the employee was employed full time. Existing law requires the agreement to reduce a members workload to be terminated if one of specified actions is taken, including if the member performs less than 1/2 of the days or hours the employer requires for full time in that position.This bill would revise that provision to instead require the agreement to be terminated if the member earns less than 1/2 of the annualized pay rate, as defined.Existing law makes a continuous annual appropriation from the General Fund to the Controller for transfer to the Supplemental Benefit Maintenance Account in the Teachers Retirement Fund, as specified. Existing law requires that transfers made to that account occur on October 15 and April 15 of each fiscal year with each payment to be 50% of the annual appropriation. This bill would provide that if either date falls on a weekend or holiday, the funds will be transferred the next business day.Existing law also makes certain continuous annual appropriations from the General Fund to the Controller for transfer to the Teachers Retirement Fund, as specified. Existing law requires the total amounts to be divided into 4 equal payments made on July 1, October 1, December 15, and April 15 of each fiscal year, or the following business day after.This bill would delete the above-described reference to on the following business day after and would instead specify that if any of these dates fall on a weekend or holiday, the funds shall be transferred the next business day. Existing law authorizes the Teachers Retirement Board, in exercising its rights under the Teachers Retirement Law, to commence or prosecute actions, file liens, intervene in court proceedings, and take related legal actions.This bill would provide that the superior court of any county within California where venue would be proper or the Superior Court of the County of Sacramento shall have jurisdiction of, and is the appropriate venue for, any suit, action, or legal proceedings relating to the subrogation rights of STRS under the Teachers Retirement Law. Existing law establishes procedures governing the recovery of amounts that have been overpaid due to an error by STRS and requires recovery with interest, as specified. Existing law requires a specified amount to be made as a continuous appropriation from the General Fund to the Controller each July 1, for transfer to the Teachers Retirement Fund.This bill would provide that if July 1 falls on a weekend or holiday, those funds shall be transferred the next business day. (2) Existing law, the State Teachers Retirement System Cash Balance Plan, prescribes retirement, disability, and death benefits for part-time educational employees and provides for the administration and operation of the plan. Existing law defines employer for purposes of those provisions to mean a school district, community college district, or county office of education that has elected to provide the benefits of that law to persons employed to perform creditable service. This bill would provide that the Teachers Retirement Board has final authority for determining an employer for purposes of that law. (3) Existing law, the Public Employees Retirement Law (PERL), creates the Public Employees Retirement System (PERS) for the purpose of providing pension benefits to state employees and employees of contracting agencies and prescribes the rights and duties of members of the system and their beneficiaries. Existing law vests management and control of PERS in its board of administration. PERS provides a defined benefit to members of the program, based on final compensation, credited service, and age at retirement, subject to certain variations. Existing law, the California Public Employees Pension Reform Act of 2013 (PEPRA), on and after January 1, 2013, requires a public retirement system, as defined, to modify its plan or plans to comply with PEPRA, as specified. Among other things, PEPRA prohibits a public employer from offering a defined benefit pension plan exceeding specified retirement formulas and requires new members of public retirement systems to contribute at least a specified amount of the normal cost, as defined. PEPRA defines pensionable compensation for a new member of any public retirement system to mean the normal monthly rate of pay or base pay of the member paid in cash to similarly situated members of the same group or class of employment for services rendered on a full-time basis, as specified.Under PERL, the highest annual average compensation during any consecutive 12- or 36-month period of employment as a member of a retirement system maintained by the University of California is considered compensation earnable by a member of PERS for purposes of computing final compensation for the member providing that member retires concurrently under both systems. This bill would instead specify that the highest annual average compensation in the above-described circumstances shall be considered compensation earnable or pensionable compensation pursuant to PEPRA, whichever is applicable. PERL defines state service solely for purposes of qualification for benefits and retirement allowances under PERS to also include service rendered as an officer or employee of a county if the salary for the service constitutes compensation earnable by a member of PERS, as prescribed.This bill would instead provide that state service in the above-described circumstances shall be considered compensation earnable or pensionable compensation pursuant to PEPRA, whichever is applicable.PERL also provides that the highest annual compensation during any 12- or 36-month period of employment as a member of a county retirement system is considered compensation earnable by a member of PERS for purposes of computing final compensation, as prescribed.This bill would instead specify that the highest annual average compensation in the above-described circumstances shall be considered compensation earnable or pensionable compensation pursuant to PEPRA, whichever is applicable. Under PERL, the compensation during any period of service as a member of the Judges Retirement System, the Judges Retirement System II, the Legislators Retirement System, or the Defined Benefit Program of the State Teachers Retirement Plan is considered compensation earnable as a member of PERS for purposes of computing final compensation for the member, if that member retires concurrently under both systems.This bill would instead specify that the compensation during any period of service, as described above, is considered compensation earnable or pensionable compensation under PEPRA, whichever is applicable, for purposes of computing final compensation. (4) Existing law, the County Employees Retirement Law of 1937 (CERL), authorizes counties to establish retirement systems pursuant to its provisions in order to provide pension benefits to county, city, and district employees and their beneficiaries. Under existing law, CERL provides for a defined retirement benefit based upon credited service, final compensation, and age at retirement subject to specified formulas relating to membership classification.Existing law provides that, for a member who is subject to PEPRA, a specified definition of final compensation contained in that law applies for all or any portion of their membership in the county retirement system. Existing law provides that when determining final compensation for a member who does not have 3 consecutive years of earned pensionable compensation due to an absence, the compensation for any absence is based on the pensionable compensation of the position held by the member immediately prior to the absence.This bill would delete that latter provision. The bill would revise the above provision concerning PEPRA to specify that the compensation for any absence is based on the pensionable compensation of the position held by the member at the beginning of the absence.Existing law provides that local prosecutors, local public defenders, and local public defender investigators are eligible to participate in CERL, as specified. Under existing law, past service as a general member is required to be converted to safety service if the past service was rendered in a position that has subsequently been reclassified as a safety position pursuant to that provision.This bill would revise that provision to specify that it applies to service before January 1, 2013. The bill would specify that on and after January 1, 2013, any enhancement to safety service is subject to a provision of PEPRA governing the retirement formulas and benefits of all public employees.Existing law prohibits a person who has been retired under CERL from being employed in any capacity thereafter by a county or district of the retirement system unless the person has first been reinstated from retirement or is authorized under CERL or PEPRA. Existing law provides that if an employer fails to enroll, solely for the administrative recordkeeping purposes of the system, a retired member employed in any capacity, without reinstatement, within 30 days of the effective date of hire, the board may assess the employer a fee of $200 per retired member per month until the retired member is enrolled in those administrative aspects of the system.This bill would instead provide that if an employer fails to report the above-described information, in a format determined by the system, and within the above-described timeframe, the board may assess that $200 fee until the information is reported. Existing law also authorizes the board to assess the employer a fee of $200 per retired member per month if an employer fails to report the pay rate and number of hours worked by a retired member, without reinstatement, within 30 days following the last day of the pay period in which the retired member worked. This bill would delete the 30-day period described above and instead would replace it with at periods determined by the system.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO | |
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| 5 | - | Amended IN Senate April 21, 2025 Amended IN Senate April 10, 2025 | |
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| 7 | - | Amended IN Senate April 21, 2025 | |
| 8 | 5 | Amended IN Senate April 10, 2025 | |
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| 7 | + | Amended IN Senate April 10, 2025 | |
| 11 | 8 | ||
| 12 | 9 | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION | |
| 13 | 10 | ||
| 14 | 11 | Senate Bill | |
| 15 | 12 | ||
| 16 | 13 | No. 853 | |
| 17 | 14 | ||
| 18 | - | Introduced by Committee on Labor, Public Employment and Retirement (Senators Smallwood-Cuevas (Chair), Cortese, Durazo, Laird, and Strickland)March 04, 2025 | |
| 15 | + | Introduced by Committee on Labor, Public Employment and Retirement (Senators Smallwood-Cuevas (Chair), Cortese, Durazo, and Laird) Laird, and Strickland)March 04, 2025 | |
| 19 | 16 | ||
| 20 | - | Introduced by Committee on Labor, Public Employment and Retirement (Senators Smallwood-Cuevas (Chair), Cortese, Durazo, Laird, and Strickland) | |
| 17 | + | Introduced by Committee on Labor, Public Employment and Retirement (Senators Smallwood-Cuevas (Chair), Cortese, Durazo, and Laird) Laird, and Strickland) | |
| 21 | 18 | March 04, 2025 | |
| 22 | 19 | ||
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| 25 | - | An act to amend Sections 22104.8, 22131, 22146.5, 22713, 22954, 22955, 22955.1, 24616.2, and 26122 of the Education Code, and to amend Sections 7522.02, 20034, 20069, 20638, 20639, 31462.05, 31470.14, and 31680.9 of the Government Code, relating to public retirement systems. | |
| 20 | + | An act to amend Sections 22104.8, 22131, 22146.5, 22713, 22954, 22955, 22955.1, 24502, 24616.2, and 26122 of the Education Code, and to amend Sections 7522.02, 20034, 20069, 20638, 20639, 31462.05, 31470.14, and 31680.9 of the Government Code, relating to public retirement systems. | |
| 26 | 21 | ||
| 27 | 22 | LEGISLATIVE COUNSEL'S DIGEST | |
| 28 | 23 | ||
| 29 | 24 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 30 | 25 | ||
| 31 | 26 | SB 853, as amended, Committee on Labor, Public Employment and Retirement. Public employees retirement. | |
| 32 | 27 | ||
| 33 | - | (1) Existing law, 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, creditable service, and age at retirement, subject to certain variations. STRS is administered by the Teachers Retirement Board. Existing law requires employers and employees to make contributions to the system based on the members creditable compensation. Existing law defines terms for the purposes of STRS. Existing law defines employer or employing agency to mean the state or any agency or political subdivision thereof, including a joint powers authority, as specified. Existing law also defines membership under the Teachers Retirement Law to mean membership in the Defined Benefit Program, except as specified.This bill would provide that the board has final authority for determining an employer or employing agency for purposes of the Teachers Retirement Law and related provisions governing teachers health care benefits. The bill would also provide that the board has final authority for determining membership in STRS, as specified.Existing law authorizes the governing board of a school district or community college district to establish regulations, subject to specified requirements, to permit an employee who is a member of the Defined Benefit Plan to reduce their workload from full time to part time and have retirement benefits calculated as if the employee was employed full time. Existing law requires the agreement to reduce a members workload to be terminated if one of specified actions is taken, including if the member performs less than 1/2 of the days or hours the employer requires for full time in that position.This bill would revise that provision to instead require the agreement to be terminated if the member earns less than 1/2 of the annualized pay rate, as defined.Existing law makes a continuous annual appropriation from the General Fund to the Controller for transfer to the Supplemental Benefit Maintenance Account in the Teachers Retirement Fund, as specified. Existing law requires that transfers made to that account occur on October 15 and April 15 of each fiscal year with each payment to be 50% of the annual appropriation. This bill would provide that if either date falls on a weekend or holiday, the funds will be transferred the next business day.Existing law also makes certain continuous annual appropriations from the General Fund to the Controller for transfer to the Teachers Retirement Fund, as specified. Existing law requires the total amounts to be divided into 4 equal payments made on July 1, October 1, December 15, and April 15 of each fiscal year, or the following business day after.This bill would delete the above-described reference to on the following business day after and would instead specify that if any of these dates fall on a weekend or holiday, the funds shall be transferred the next business day. Existing law establishes procedures governing the recovery of amounts that have been overpaid due to an error by STRS and requires recovery with interest, as specified. Existing law requires a specified amount to be made as a continuous appropriation from the General Fund to the Controller each July 1, for transfer to the Teachers Retirement Fund.This bill would provide that if July 1 falls on a weekend or holiday, those funds shall be transferred the next business day. (2) Existing law, the State Teachers Retirement System Cash Balance Plan, prescribes retirement, disability, and death benefits for part-time educational employees and provides for the administration and operation of the plan. Existing law defines employer for purposes of those provisions to mean a school district, community college district, or county office of education that has elected to provide the benefits of that law to persons employed to perform creditable service. This bill would provide that the Teachers Retirement Board has final authority for determining an employer for purposes of that law. (3) Existing law, the Public Employees Retirement Law (PERL), creates the Public Employees Retirement System (PERS) for the purpose of providing pension benefits to state employees and employees of contracting agencies and prescribes the rights and duties of members of the system and their beneficiaries. Existing law vests management and control of PERS in its board of administration. PERS provides a defined benefit to members of the program, based on final compensation, credited service, and age at retirement, subject to certain variations. Existing law, the California Public Employees Pension Reform Act of 2013 (PEPRA), on and after January 1, 2013, requires a public retirement system, as defined, to modify its plan or plans to comply with PEPRA, as specified. Among other things, PEPRA prohibits a public employer from offering a defined benefit pension plan exceeding specified retirement formulas and requires new members of public retirement systems to contribute at least a specified amount of the normal cost, as defined. PEPRA defines pensionable compensation for a new member of any public retirement system to mean the normal monthly rate of pay or base pay of the member paid in cash to similarly situated members of the same group or class of employment for services rendered on a full-time basis, as specified.Under PERL, the highest annual average compensation during any consecutive 12- or 36-month period of employment as a member of a retirement system maintained by the University of California is considered compensation earnable by a member of PERS for purposes of computing final compensation for the member providing that member retires concurrently under both systems. This bill would instead specify that the highest annual average compensation in the above-described circumstances shall be considered compensation earnable or pensionable compensation pursuant to PEPRA, whichever is applicable. PERL defines state service solely for purposes of qualification for benefits and retirement allowances under PERS to also include service rendered as an officer or employee of a county if the salary for the service constitutes compensation earnable by a member of PERS, as prescribed.This bill would instead provide that state service in the above-described circumstances shall be considered compensation earnable or pensionable compensation pursuant to PEPRA, whichever is applicable.PERL also provides that the highest annual compensation during any 12- or 36-month period of employment as a member of a county retirement system is considered compensation earnable by a member of PERS for purposes of computing final compensation, as prescribed.This bill would instead specify that the highest annual average compensation in the above-described circumstances shall be considered compensation earnable or pensionable compensation pursuant to PEPRA, whichever is applicable. Under PERL, the compensation | |
| 28 | + | (1) Existing law, 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, creditable service, and age at retirement, subject to certain variations. STRS is administered by the Teachers Retirement Board. Existing law requires employers and employees to make contributions to the system based on the members creditable compensation. Existing law defines terms for the purposes of STRS. Existing law defines employer or employing agency to mean the state or any agency or political subdivision thereof, including a joint powers authority, as specified. Existing law also defines membership under the Teachers Retirement Law to mean membership in the Defined Benefit Program, except as specified.This bill would provide that the board has final authority for determining an employer or employing agency for purposes of the Teachers Retirement Law and related provisions governing teachers health care benefits. The bill would also provide that the board has final authority for determining membership in STRS, as specified.Existing law authorizes the governing board of a school district or community college district to establish regulations, subject to specified requirements, to permit an employee who is a member of the Defined Benefit Plan to reduce their workload from full time to part time and have retirement benefits calculated as if the employee was employed full time. Existing law requires the agreement to reduce a members workload to be terminated if one of specified actions is taken, including if the member performs less than 1/2 of the days or hours the employer requires for full time in that position.This bill would revise that provision to instead require the agreement to be terminated if the member earns less than 1/2 of the annualized pay rate, as defined.Existing law makes a continuous annual appropriation from the General Fund to the Controller for transfer to the Supplemental Benefit Maintenance Account in the Teachers Retirement Fund, as specified. Existing law requires that transfers made to that account occur on October 15 and April 15 of each fiscal year with each payment to be 50% of the annual appropriation. This bill would provide that if either date falls on a weekend or holiday, the funds will be transferred the next business day.Existing law also makes certain continuous annual appropriations from the General Fund to the Controller for transfer to the Teachers Retirement Fund, as specified. Existing law requires the total amounts to be divided into 4 equal payments made on July 1, October 1, December 15, and April 15 of each fiscal year, or the following business day after.This bill would delete the above-described reference to on the following business day after and would instead specify that if any of these dates fall on a weekend or holiday, the funds shall be transferred the next business day. Existing law authorizes the Teachers Retirement Board, in exercising its rights under the Teachers Retirement Law, to commence or prosecute actions, file liens, intervene in court proceedings, and take related legal actions.This bill would provide that the superior court of any county within California where venue would be proper or the Superior Court of the County of Sacramento shall have jurisdiction of, and is the appropriate venue for, any suit, action, or legal proceedings relating to the subrogation rights of STRS under the Teachers Retirement Law. Existing law establishes procedures governing the recovery of amounts that have been overpaid due to an error by STRS and requires recovery with interest, as specified. Existing law requires a specified amount to be made as a continuous appropriation from the General Fund to the Controller each July 1, for transfer to the Teachers Retirement Fund.This bill would provide that if July 1 falls on a weekend or holiday, those funds shall be transferred the next business day. (2) Existing law, the State Teachers Retirement System Cash Balance Plan, prescribes retirement, disability, and death benefits for part-time educational employees and provides for the administration and operation of the plan. Existing law defines employer for purposes of those provisions to mean a school district, community college district, or county office of education that has elected to provide the benefits of that law to persons employed to perform creditable service. This bill would provide that the Teachers Retirement Board has final authority for determining an employer for purposes of that law. (3) Existing law, the Public Employees Retirement Law (PERL), creates the Public Employees Retirement System (PERS) for the purpose of providing pension benefits to state employees and employees of contracting agencies and prescribes the rights and duties of members of the system and their beneficiaries. Existing law vests management and control of PERS in its board of administration. PERS provides a defined benefit to members of the program, based on final compensation, credited service, and age at retirement, subject to certain variations. Existing law, the California Public Employees Pension Reform Act of 2013 (PEPRA), on and after January 1, 2013, requires a public retirement system, as defined, to modify its plan or plans to comply with PEPRA, as specified. Among other things, PEPRA prohibits a public employer from offering a defined benefit pension plan exceeding specified retirement formulas and requires new members of public retirement systems to contribute at least a specified amount of the normal cost, as defined. PEPRA defines pensionable compensation for a new member of any public retirement system to mean the normal monthly rate of pay or base pay of the member paid in cash to similarly situated members of the same group or class of employment for services rendered on a full-time basis, as specified.Under PERL, the highest annual average compensation during any consecutive 12- or 36-month period of employment as a member of a retirement system maintained by the University of California is considered compensation earnable by a member of PERS for purposes of computing final compensation for the member providing that member retires concurrently under both systems. This bill would instead specify that the highest annual average compensation in the above-described circumstances shall be considered compensation earnable or pensionable compensation pursuant to PEPRA, whichever is applicable. PERL defines state service solely for purposes of qualification for benefits and retirement allowances under PERS to also include service rendered as an officer or employee of a county if the salary for the service constitutes compensation earnable by a member of PERS, as prescribed.This bill would instead provide that state service in the above-described circumstances shall be considered compensation earnable or pensionable compensation pursuant to PEPRA, whichever is applicable.PERL also provides that the highest annual compensation during any 12- or 36-month period of employment as a member of a county retirement system is considered compensation earnable by a member of PERS for purposes of computing final compensation, as prescribed.This bill would instead specify that the highest annual average compensation in the above-described circumstances shall be considered compensation earnable or pensionable compensation pursuant to PEPRA, whichever is applicable. Under PERL, the compensation during any period of service as a member of the Judges Retirement System, the Judges Retirement System II, the Legislators Retirement System, or the Defined Benefit Program of the State Teachers Retirement Plan is considered compensation earnable as a member of PERS for purposes of computing final compensation for the member, if that member retires concurrently under both systems.This bill would instead specify that the compensation during any period of service, as described above, is considered compensation earnable or pensionable compensation under PEPRA, whichever is applicable, for purposes of computing final compensation. (4) Existing law, the County Employees Retirement Law of 1937 (CERL), authorizes counties to establish retirement systems pursuant to its provisions in order to provide pension benefits to county, city, and district employees and their beneficiaries. Under existing law, CERL provides for a defined retirement benefit based upon credited service, final compensation, and age at retirement subject to specified formulas relating to membership classification.Existing law provides that, for a member who is subject to PEPRA, a specified definition of final compensation contained in that law applies for all or any portion of their membership in the county retirement system. Existing law provides that when determining final compensation for a member who does not have 3 consecutive years of earned pensionable compensation due to an absence, the compensation for any absence is based on the pensionable compensation of the position held by the member immediately prior to the absence.This bill would delete that latter provision. The bill would revise the above provision concerning PEPRA to specify that the compensation for any absence is based on the pensionable compensation of the position held by the member at the beginning of the absence.Existing law provides that local prosecutors, local public defenders, and local public defender investigators are eligible to participate in CERL, as specified. Under existing law, past service as a general member is required to be converted to safety service if the past service was rendered in a position that has subsequently been reclassified as a safety position pursuant to that provision.This bill would revise that provision to specify that it applies to service before January 1, 2013. The bill would specify that on and after January 1, 2013, any enhancement to safety service is subject to a provision of PEPRA governing the retirement formulas and benefits of all public employees.Existing law prohibits a person who has been retired under CERL from being employed in any capacity thereafter by a county or district of the retirement system unless the person has first been reinstated from retirement or is authorized under CERL or PEPRA. Existing law provides that if an employer fails to enroll, solely for the administrative recordkeeping purposes of the system, a retired member employed in any capacity, without reinstatement, within 30 days of the effective date of hire, the board may assess the employer a fee of $200 per retired member per month until the retired member is enrolled in those administrative aspects of the system.This bill would instead provide that if an employer fails to report the above-described information, in a format determined by the system, and within the above-described timeframe, the board may assess that $200 fee until the information is reported. Existing law also authorizes the board to assess the employer a fee of $200 per retired member per month if an employer fails to report the pay rate and number of hours worked by a retired member, without reinstatement, within 30 days following the last day of the pay period in which the retired member worked. This bill would delete the 30-day period described above and instead would replace it with at periods determined by the system. | |
| 34 | 29 | ||
| 35 | 30 | (1) Existing law, 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, creditable service, and age at retirement, subject to certain variations. STRS is administered by the Teachers Retirement Board. Existing law requires employers and employees to make contributions to the system based on the members creditable compensation. Existing law defines terms for the purposes of STRS. | |
| 36 | 31 | ||
| 37 | 32 | Existing law defines employer or employing agency to mean the state or any agency or political subdivision thereof, including a joint powers authority, as specified. Existing law also defines membership under the Teachers Retirement Law to mean membership in the Defined Benefit Program, except as specified. | |
| 38 | 33 | ||
| 39 | 34 | This bill would provide that the board has final authority for determining an employer or employing agency for purposes of the Teachers Retirement Law and related provisions governing teachers health care benefits. The bill would also provide that the board has final authority for determining membership in STRS, as specified. | |
| 40 | 35 | ||
| 41 | 36 | Existing law authorizes the governing board of a school district or community college district to establish regulations, subject to specified requirements, to permit an employee who is a member of the Defined Benefit Plan to reduce their workload from full time to part time and have retirement benefits calculated as if the employee was employed full time. Existing law requires the agreement to reduce a members workload to be terminated if one of specified actions is taken, including if the member performs less than 1/2 of the days or hours the employer requires for full time in that position. | |
| 42 | 37 | ||
| 43 | 38 | This bill would revise that provision to instead require the agreement to be terminated if the member earns less than 1/2 of the annualized pay rate, as defined. | |
| 44 | 39 | ||
| 45 | 40 | Existing law makes a continuous annual appropriation from the General Fund to the Controller for transfer to the Supplemental Benefit Maintenance Account in the Teachers Retirement Fund, as specified. Existing law requires that transfers made to that account occur on October 15 and April 15 of each fiscal year with each payment to be 50% of the annual appropriation. | |
| 46 | 41 | ||
| 47 | 42 | This bill would provide that if either date falls on a weekend or holiday, the funds will be transferred the next business day. | |
| 48 | 43 | ||
| 49 | 44 | Existing law also makes certain continuous annual appropriations from the General Fund to the Controller for transfer to the Teachers Retirement Fund, as specified. Existing law requires the total amounts to be divided into 4 equal payments made on July 1, October 1, December 15, and April 15 of each fiscal year, or the following business day after. | |
| 50 | 45 | ||
| 51 | 46 | This bill would delete the above-described reference to on the following business day after and would instead specify that if any of these dates fall on a weekend or holiday, the funds shall be transferred the next business day. | |
| 47 | + | ||
| 48 | + | Existing law authorizes the Teachers Retirement Board, in exercising its rights under the Teachers Retirement Law, to commence or prosecute actions, file liens, intervene in court proceedings, and take related legal actions. | |
| 49 | + | ||
| 50 | + | ||
| 51 | + | ||
| 52 | + | This bill would provide that the superior court of any county within California where venue would be proper or the Superior Court of the County of Sacramento shall have jurisdiction of, and is the appropriate venue for, any suit, action, or legal proceedings relating to the subrogation rights of STRS under the Teachers Retirement Law. | |
| 53 | + | ||
| 54 | + | ||
| 52 | 55 | ||
| 53 | 56 | Existing law establishes procedures governing the recovery of amounts that have been overpaid due to an error by STRS and requires recovery with interest, as specified. Existing law requires a specified amount to be made as a continuous appropriation from the General Fund to the Controller each July 1, for transfer to the Teachers Retirement Fund. | |
| 54 | 57 | ||
| 55 | 58 | This bill would provide that if July 1 falls on a weekend or holiday, those funds shall be transferred the next business day. | |
| 56 | 59 | ||
| 57 | 60 | (2) Existing law, the State Teachers Retirement System Cash Balance Plan, prescribes retirement, disability, and death benefits for part-time educational employees and provides for the administration and operation of the plan. Existing law defines employer for purposes of those provisions to mean a school district, community college district, or county office of education that has elected to provide the benefits of that law to persons employed to perform creditable service. | |
| 58 | 61 | ||
| 59 | 62 | This bill would provide that the Teachers Retirement Board has final authority for determining an employer for purposes of that law. | |
| 60 | 63 | ||
| 61 | 64 | (3) Existing law, the Public Employees Retirement Law (PERL), creates the Public Employees Retirement System (PERS) for the purpose of providing pension benefits to state employees and employees of contracting agencies and prescribes the rights and duties of members of the system and their beneficiaries. Existing law vests management and control of PERS in its board of administration. PERS provides a defined benefit to members of the program, based on final compensation, credited service, and age at retirement, subject to certain variations. | |
| 62 | 65 | ||
| 63 | 66 | Existing law, the California Public Employees Pension Reform Act of 2013 (PEPRA), on and after January 1, 2013, requires a public retirement system, as defined, to modify its plan or plans to comply with PEPRA, as specified. Among other things, PEPRA prohibits a public employer from offering a defined benefit pension plan exceeding specified retirement formulas and requires new members of public retirement systems to contribute at least a specified amount of the normal cost, as defined. PEPRA defines pensionable compensation for a new member of any public retirement system to mean the normal monthly rate of pay or base pay of the member paid in cash to similarly situated members of the same group or class of employment for services rendered on a full-time basis, as specified. | |
| 64 | 67 | ||
| 65 | 68 | Under PERL, the highest annual average compensation during any consecutive 12- or 36-month period of employment as a member of a retirement system maintained by the University of California is considered compensation earnable by a member of PERS for purposes of computing final compensation for the member providing that member retires concurrently under both systems. | |
| 66 | 69 | ||
| 67 | 70 | This bill would instead specify that the highest annual average compensation in the above-described circumstances shall be considered compensation earnable or pensionable compensation pursuant to PEPRA, whichever is applicable. | |
| 68 | 71 | ||
| 69 | 72 | PERL defines state service solely for purposes of qualification for benefits and retirement allowances under PERS to also include service rendered as an officer or employee of a county if the salary for the service constitutes compensation earnable by a member of PERS, as prescribed. | |
| 70 | 73 | ||
| 71 | 74 | This bill would instead provide that state service in the above-described circumstances shall be considered compensation earnable or pensionable compensation pursuant to PEPRA, whichever is applicable. | |
| 72 | 75 | ||
| 73 | 76 | PERL also provides that the highest annual compensation during any 12- or 36-month period of employment as a member of a county retirement system is considered compensation earnable by a member of PERS for purposes of computing final compensation, as prescribed. | |
| 74 | 77 | ||
| 75 | 78 | This bill would instead specify that the highest annual average compensation in the above-described circumstances shall be considered compensation earnable or pensionable compensation pursuant to PEPRA, whichever is applicable. | |
| 76 | 79 | ||
| 77 | - | Under PERL, the compensation | |
| 80 | + | Under PERL, the compensation during any period of service as a member of the Judges Retirement System, the Judges Retirement System II, the Legislators Retirement System, or the Defined Benefit Program of the State Teachers Retirement Plan is considered compensation earnable as a member of PERS for purposes of computing final compensation for the member, if that member retires concurrently under both systems. | |
| 78 | 81 | ||
| 79 | 82 | This bill would instead specify that the compensation during any period of service, as described above, is considered compensation earnable or pensionable compensation under PEPRA, whichever is applicable, for purposes of computing final compensation. | |
| 80 | 83 | ||
| 81 | 84 | (4) Existing law, the County Employees Retirement Law of 1937 (CERL), authorizes counties to establish retirement systems pursuant to its provisions in order to provide pension benefits to county, city, and district employees and their beneficiaries. Under existing law, CERL provides for a defined retirement benefit based upon credited service, final compensation, and age at retirement subject to specified formulas relating to membership classification. | |
| 82 | 85 | ||
| 83 | 86 | Existing law provides that, for a member who is subject to PEPRA, a specified definition of final compensation contained in that law applies for all or any portion of their membership in the county retirement system. Existing law provides that when determining final compensation for a member who does not have 3 consecutive years of earned pensionable compensation due to an absence, the compensation for any absence is based on the pensionable compensation of the position held by the member immediately prior to the absence. | |
| 84 | 87 | ||
| 85 | 88 | This bill would delete that latter provision. The bill would revise the above provision concerning PEPRA to specify that the compensation for any absence is based on the pensionable compensation of the position held by the member at the beginning of the absence. | |
| 86 | 89 | ||
| 87 | 90 | Existing law provides that local prosecutors, local public defenders, and local public defender investigators are eligible to participate in CERL, as specified. Under existing law, past service as a general member is required to be converted to safety service if the past service was rendered in a position that has subsequently been reclassified as a safety position pursuant to that provision. | |
| 88 | 91 | ||
| 89 | 92 | This bill would revise that provision to specify that it applies to service before January 1, 2013. The bill would specify that on and after January 1, 2013, any enhancement to safety service is subject to a provision of PEPRA governing the retirement formulas and benefits of all public employees. | |
| 90 | 93 | ||
| 91 | 94 | Existing law prohibits a person who has been retired under CERL from being employed in any capacity thereafter by a county or district of the retirement system unless the person has first been reinstated from retirement or is authorized under CERL or PEPRA. Existing law provides that if an employer fails to enroll, solely for the administrative recordkeeping purposes of the system, a retired member employed in any capacity, without reinstatement, within 30 days of the effective date of hire, the board may assess the employer a fee of $200 per retired member per month until the retired member is enrolled in those administrative aspects of the system. | |
| 92 | 95 | ||
| 93 | 96 | This bill would instead provide that if an employer fails to report the above-described information, in a format determined by the system, and within the above-described timeframe, the board may assess that $200 fee until the information is reported. | |
| 94 | 97 | ||
| 95 | 98 | Existing law also authorizes the board to assess the employer a fee of $200 per retired member per month if an employer fails to report the pay rate and number of hours worked by a retired member, without reinstatement, within 30 days following the last day of the pay period in which the retired member worked. | |
| 96 | 99 | ||
| 97 | 100 | This bill would delete the 30-day period described above and instead would replace it with at periods determined by the system. | |
| 98 | 101 | ||
| 99 | 102 | ## Digest Key | |
| 100 | 103 | ||
| 101 | 104 | ## Bill Text | |
| 102 | 105 | ||
| 103 | - | The people of the State of California do enact as follows:SECTION 1. Section 22104.8 of the Education Code, as added by Section 2 of Chapter 690 of the Statutes of 2024, is amended to read:22104.8. (a) Annualized pay rate means the salary, as described in Section 22119.3, a person could earn during a school term in each position subject to membership if creditable service were performed for that position on a full-time basis.(b) The annualized pay rate shall be determined pursuant to the publicly available pay schedule by using either of the following methods:(1) Explicitly itemized as a single amount, either separately or within a table.(2) Derived from an explicit hourly or daily rate multiplied by the total hours or days required in order to be employed in the position subject to membership on a full-time basis pursuant to Section 22138.5. If the total hours or days required to be employed on a full-time basis is not established, the number of hours or days shall be the minimum standard described in Section 22138.5.(c) If no annualized pay rate exists pursuant to subdivision (b) for a position subject to membership, all compensation earned in that position shall be deemed supplemental pay pursuant to paragraph (2) of subdivision (a) of Section 22119.3.(d) This definition of annualized pay rate is consistent with subdivision (e) of Section 22115.(e) (1) The board shall determine a date based on when the system has the capacity to implement the changes made by the act that added this subdivision. The date determined by the board shall be posted on the internet website of the system no later than July 1, 2027.(2) This section shall become operative on the date determined by the board pursuant to paragraph (1).SEC. 2. Section 22131 of the Education Code is amended to read:22131. (a) (1) Employer or employing agency means the state or any agency or political subdivision thereof, including, but not limited to, a joint powers authority, for which creditable service subject to coverage by the plan is performed.(2) In the case of a joint powers authority, all of the following criteria shall be met:(A) The joint powers authority shall be formed pursuant to the Joint Exercise of Powers Act (Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code).(B) All entities included in the joint powers authority shall be entities at which creditable service subject to coverage by the plan is performed.(C) The joint powers authority shall report through a single county office of education, with that county superintendent having responsibility for activities specified under this part, including but not limited to, reporting and remitting contributions.(b) This section shall be administered in compliance with the requirements defining a governmental plan set forth in Section 414(d) of the Internal Revenue Code of 1986 (26 U.S.C. Sec. 414(d)).(c) The board shall have final authority for determining an employer or employing agency for purposes of this part and Part 13.5 (commencing with Section 25900).SEC. 3. Section 22146.5 of the Education Code is amended to read:22146.5. Membership means membership in the Defined Benefit Program, except as otherwise specifically provided in this part. The board shall have final authority for determining membership in the system, considering the conditions under which persons may be admitted to and receive benefits from the system.SEC. 4. Section 22713 of the Education Code is amended to read:22713. (a) Notwithstanding any other provision of this chapter, if the governing board of a school district or a community college district, or a county superintendent of schools establishes regulations pursuant to Sections 44922 and 87483, an employer may enter into a written agreement with an employee who is a member of the Defined Benefit Program to reduce their workload in a position from full time to part time, receive the service credit the member would have received if the member had been employed in that position on a full-time basis and have their retirement allowance, as well as other benefits that the member is entitled to under this part, based, in part, on the final compensation the member would have been entitled to if the member had been employed on a full-time basis. The option to reduce the members workload shall be exercised at the request of the member if all of the following conditions are met:(1) The member is employed by either of the following:(A) A school district or county office of education as a prekindergarten through grade 12 certificated employee who does not hold a position with a salary above the maximum salary of a school principal for that employer.(B) A community college district.(2) The member has a minimum of 10 years of credited service in the Defined Benefit Program prior to the start of the school term of the first school year of the agreement to reduce the members workload.(3) The member shall have been employed on a full-time basis to perform creditable service under the Defined Benefit Program each year of the five school years immediately preceding the first school year in which the members workload is reduced, without having a break in service. For the purposes of this paragraph:(A) Employer-approved leaves of absence, and unpaid absences from the performance of creditable service for personal reasons from full-time employment do not constitute a break in service.(B) Creditable service that was performed for a school year in which a member reduced their workload pursuant to this section shall be treated as full time, provided that the agreement to reduce the members workload was not terminated during that year pursuant to subdivision (e).(C) The period of time during which a member is retired for service shall constitute a break in service.(4) The member is 55 years of age or older prior to the start of the school term of the first school year of the agreement for which the members workload is reduced.(b) The employer, in conjunction with the system, shall certify the members eligibility for participation in the reduced workload program in accordance with subdivision (a). The employers certification shall be submitted in a format prescribed by the system and shall be received in the systems headquarters office prior to the start of the school term of the first school year of the agreement for which the members workload is reduced.(c) The agreement to reduce the members workload shall be in effect prior to the start of the school term of the first school year of the agreement for which the members workload is reduced, and shall include the following requirements:(1) The total amount of time in which a member reduces their workload pursuant to this section shall not exceed 10 school years.(2) The reduced workload shall be equal to at least one-half of the time the employer requires for full-time employment in that position in accordance with Section 22138.5.(3) The member shall be paid creditable compensation that is the pro rata share of the creditable compensation the member would have been paid for that position had the member not reduced their workload.(4) For each school year the members workload is reduced pursuant to this section, the member shall make contributions to the Teachers Retirement Fund in the amount that the member would have contributed if the member had performed creditable service for that position on a full-time basis and if that service was subject to coverage under the Defined Benefit Program.(5) For each school year the members workload is reduced pursuant to this section, the employer shall contribute to the Teachers Retirement Fund at a rate adopted by the board as a plan amendment with respect to the Defined Benefit Program an amount based upon the creditable compensation that would have been paid to the member if the member had performed creditable service for that position on a full-time basis and if that service was subject to coverage under the Defined Benefit Program.(d) The employer shall maintain the necessary records to separately identify each member who participates in the reduced workload program pursuant to this section.(e) The agreement to reduce a members workload shall be terminated if one of the following actions is taken:(1) The members employment is terminated prior to the end of the school term.(2) The member earns less than one-half of the annualized pay rate as defined in Section 22104.8.(3) The member and the employer mutually agree that the member will perform creditable service without making contributions in accordance with paragraphs (4) and (5) of subdivision (c).(f) Upon termination of the agreement for any of the reasons described in subdivision (e):(1) The employer shall notify the system that the agreement to reduce a members workload has been terminated within 30 days of the agreement being terminated.(2) The members service credit and contributions for that school year in which the agreement is terminated shall be computed in accordance with Section 22701 and Chapters 15 and 16.(3) That school year in which the agreement is terminated shall not be included in the total amount of time in which a member is allowed to reduce their workload pursuant to paragraph (1) of subdivision (c).(4) Any subsequent agreement to reduce a members workload shall meet all of the conditions set forth in this section.SEC. 5. Section 22954 of the Education Code is amended to read:22954. (a) Notwithstanding Section 13340 of the Government Code, a continuous appropriation is hereby annually made from the General Fund to the Controller, pursuant to this section, for transfer to the Supplemental Benefit Maintenance Account in the Teachers Retirement Fund.(b) Except as reduced pursuant to subdivision (c), the total amount of the appropriation for each year shall be equal to 2.5 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based for purposes of funding the supplemental payments authorized by Section 24415, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5.(c) Beginning with the 200809 fiscal year, the appropriation in subdivision (b) shall be reduced in accordance with the following schedule:200809 ........................ $66,386,000200910 ........................ $70,000,000201011 ........................ $71,000,000201112 and each fiscal year thereafter ........................ $72,000,000(d) Transfers made to the Supplemental Benefit Maintenance Account, pursuant to subdivision (a), shall be made on October 15 and April 15 of each fiscal year with each payment to be 50 percent of the annual appropriation. If either date falls on a weekend or holiday, the funds shall be transferred the next business day.(e) Notwithstanding subdivision (d), for the 201011 fiscal year only, the transfer that would have been made pursuant to subdivision (d) on October 15, 2010, shall be made on November 15, 2010, and the transfer that would have been made pursuant to subdivision (d) on April 15, 2011, shall be made on March 14, 2011.(f) The board may deduct from the annual appropriation made pursuant to this section an amount necessary for the administrative expenses of Section 24415.(g) It is the intent of the Legislature in enacting this section to establish the supplemental payments pursuant to Section 24415 as vested benefits pursuant to a contractually enforceable promise to make annual contributions from the General Fund to the Supplemental Benefit Maintenance Account in the Teachers Retirement Fund in order to provide a continuous annual source of revenue for the purposes of making the supplemental payments under Section 24415.SEC. 6. Section 22955 of the Education Code is amended to read:22955. (a) Notwithstanding Section 13340 of the Government Code, commencing July 1, 2003, a continuous appropriation is hereby annually made from the General Fund to the Controller, pursuant to this section, for transfer to the Teachers Retirement Fund. The total amount of the appropriation for each year shall be equal to 2.017 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5, and shall be divided into four equal payments. The payments shall be made on July 1, October 1, December 15, and April 15 of each fiscal year. If any of these dates fall on a weekend or holiday, the funds shall be transferred the next business day.(b) Notwithstanding Section 13340 of the Government Code, commencing October 1, 2003, a continuous appropriation, in addition to the appropriation made by subdivision (a), is hereby annually made from the General Fund to the Controller for transfer to the Teachers Retirement Fund. The total amount of the appropriation for each year shall be equal to 0.524 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5, and shall be divided into four equal quarterly payments. The percentage shall be adjusted to reflect the contribution required to fund the normal cost deficit or the unfunded obligation as determined by the board based upon a recommendation from its actuary. If a rate increase is required, the adjustment may be for no more than 0.25 percent per year and in no case may the transfer made pursuant to this subdivision exceed 1.505 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based. At any time when there is neither an unfunded obligation nor a normal cost deficit, the percentage shall be reduced to zero. The funds transferred pursuant to this subdivision shall first be applied to eliminating on or before June 30, 2027, the unfunded actuarial liability of the fund identified in the actuarial valuation as of June 30, 1997.(c) For the purposes of this section, the term normal cost deficit means the difference between the normal cost rate as determined in the actuarial valuation required by Section 22311 and the total of the member contribution rate required under Section 22901 and the employer contribution rate required under Section 22950, and shall exclude (1) the portion for unused sick leave service credit granted pursuant to Section 22717, and (2) the cost of benefit increases that occur after July 1, 1990. The contribution rates prescribed in Section 22901 and Section 22950 on July 1, 1990, shall be utilized to make the calculations. The normal cost deficit shall then be multiplied by the total of the creditable compensation upon which member contributions under this part are based to determine the dollar amount of the normal cost deficit for the year.(d) Pursuant to Section 22001 and case law, members are entitled to a financially sound retirement system. It is the intent of the Legislature that this section shall provide the retirement fund stable and full funding over the long term.(e) This section continues in effect but in a somewhat different form, fully performs, and does not in any way unreasonably impair, the contractual obligations determined by the court in California Teachers Association v. Cory, 155 Cal.App.3d 494.(f) Subdivision (b) shall not be construed to be applicable to any unfunded liability resulting from any benefit increase or change in contribution rate under this part that occurs after July 1, 1990.(g) The provisions of this section shall be construed and implemented to be in conformity with the judicial intent expressed by the court in California Teachers Association v. Cory, 155 Cal.App.3d 494.(h) Subdivisions (a) through (g), inclusive, shall be inoperative on and after July 1, 2014, and shall become operative beginning the earlier of July 1, 2046, or July 1 of the first fiscal year after a 30-day notice has been sent to the Joint Legislative Budget Committee and the Controller in compliance with subdivision (d) of Section 22957.SEC. 7. Section 22955.1 of the Education Code is amended to read:22955.1. (a) Notwithstanding Section 13340 of the Government Code, commencing July 1, 2003, a continuous appropriation is hereby annually made from the General Fund to the Controller, pursuant to this section, for transfer to the Teachers Retirement Fund. The total amount of the appropriation for each year shall be equal to 2.017 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5, and shall be divided into four equal payments. The payments shall be made on July 1, October 1, December 15, and April 15 of each fiscal year. If any of these dates fall on a weekend or holiday, the funds shall be transferred the next business day.(b) (1) Commencing July 1, 2014, the amount of the appropriation required under subdivision (a) shall increase by the following percentages of the creditable compensation upon which that appropriation is based:(A) On July 1, 2014, by 1.437 percent.(B) On July 1, 2015, by 2.874 percent.(C) On July 1, 2016, by 4.311 percent.(2) Except as provided in paragraph (3), for the 201718 fiscal year and each fiscal year thereafter, the board shall increase or decrease the percentage specified in this subdivision from the percentage paid during the prior fiscal year to reflect the contribution required to eliminate the remaining unfunded actuarial obligation, as determined by the board based upon a recommendation from its actuary. If a rate increase is required, the adjustment may be for no more than 0.50 percent per year of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based. At any time when there is not an unfunded actuarial obligation as determined by the board, the percentage specified in this subdivision shall be reduced to zero.(3) For the 202021 fiscal year, the percentage specified in this subdivision shall be the percentage set by the board pursuant to paragraph (2) for the 201920 fiscal year, and the board shall not increase or decrease the percentage specified in this paragraph for the 202021 fiscal year. This paragraph does not prevent payments towards the unfunded actuarial obligation from being made from other sources of funding, including, but not limited to, other sources in the General Fund.(c) Pursuant to Section 22001 and case law, members are entitled to a financially sound retirement system. It is the intent of the Legislature that this section shall provide the retirement fund stable and full funding over the long term.(d) This section continues in effect but in a somewhat different form, fully performs, and does not in any way unreasonably impair, the contractual obligations determined by the court in California Teachers Association v. Cory (1984) 155 Cal.App.3d 494.(e) Subdivision (b) shall not be construed to be applicable to any unfunded actuarial obligation resulting from any benefit increase or change in contribution rate under this part that occurs after July 1, 1990, except that state contributions made pursuant to subdivision (b) shall be allocated to reduce the unfunded actuarial obligation resulting from the benefits and contribution rates in effect as of July 1, 1990.(f) The provisions of this section shall be construed and implemented to be in conformity with the judicial intent expressed by the court in California Teachers Association v. Cory (1984) 155 Cal.App.3d 494.(g) (1) Except as described in paragraph (2), this section shall become inoperative on July 1, 2046, and as of January 1, 2047, is repealed.(2) Notwithstanding paragraph (1), on July 1 of the first fiscal year after a 30-day notice has been sent to the Joint Legislative Budget Committee and the Controller in compliance with subdivision (d) of Section 22957, this section shall become inoperative and, as of the following January 1, is repealed.SEC. 8. Section 24616.2 of the Education Code is amended to read:24616.2. (a) Except as limited pursuant to Section 22008:(1) All amounts that have been overpaid due to inaccurate information, untimely submission, nonsubmission of information, or on the basis of fraud or intentional misrepresentation by, or on behalf of, a recipient of a benefit, annuity, or refund shall be recovered, as applicable, from the member, participant, former member, former participant, or beneficiary. This paragraph excludes amounts overpaid pursuant to paragraph (2), (3), or (4).(2) All amounts that have been overpaid due to inaccurate information, untimely submission, or nonsubmission of information by an employer that reports directly to the system shall be recovered, as applicable, from that employer.(3) All amounts that have been overpaid due to inaccurate information, untimely submission, or nonsubmission of information by a county superintendent of schools that reports directly to the system on behalf of an employer shall be recovered, as applicable, from that county superintendent of schools. If the overpayment resulted from an error of an employer, the county superintendent of schools may recover the amounts required from that employer pursuant to Section 23012.(A) If the county superintendent of schools provided notice to, and received consent from, an employer to submit that employers monthly report, inclusive of any modifications by the county superintendent of schools on behalf of the employer, an overpayment due to inaccurate information shall be considered an error of that employer.(B) If the untimely submission or nonsubmission of information was the result of the employers untimely submission or nonsubmission of information, the overpayment shall be considered an error of the employer.(4) (A) All amounts that have been overpaid due to an error by the system shall be recovered, with interest as specified in subparagraph (B), as follows:(i) Commencing July 1, 2024, 85 percent of this amount resulting from benefit adjustments that take place within the fiscal year ending in the immediately preceding calendar year, the specific amount of which shall be determined by the board, shall be made as a continuous appropriation from the General Fund to the Controller each July 1 for transfer to the Teachers Retirement Fund. If July 1 falls on a weekend or holiday, the funds shall be transferred the next business day.(ii) Commencing July 1, 2024, 15 percent of this amount resulting from benefit adjustments that take place within the fiscal year ending in the immediately preceding calendar year, the specific amount of which shall be determined by the board, shall be recovered from all employers that report directly to the system in amounts proportionate to their share of contributions for that fiscal year, including the contributions of those employers for whom a county superintendent of schools reports. A county superintendent of schools that reports directly to the system on behalf of employers may recover amounts proportionate to each employers share of contributions for that fiscal year from those employers pursuant to Section 23012.(B) The amount to be recovered in accordance with subparagraph (A) shall be calculated to include regular interest from the date of the overpayment to the date of recovery.(b) (1) An employer shall remit any amount required to be paid to the system pursuant to this section within 30 days of the date of the invoice. If the system does not receive payment within 30 days, the amount owed to the system shall be recalculated to include regular interest from the initial due date.(2) If a payment pursuant to paragraph (1) is not received within 30 days of the date of invoice, the Controller shall, upon the order of the board, reduce subsequent payments from the State School Fund to the county for deposit in the county school service fund by the amount owed or, upon the request of a county superintendent of schools to the county auditor, the Controller shall reduce payments to a school district for deposit in the district general fund by the amount owed. The Controller shall then pay to the system the amount owed for deposit in the Teachers Retirement Fund.(c) Determination of an amount that has been overpaid shall be provided in writing by the system to the party responsible for the overpayment pursuant to subdivision (a). The system shall identify the error, document the source of the error, and specify the total amount overpaid due to the error.(d) This section shall not apply to a recovery made under Section 24015, 24016, or 24017 or to a benefit or allowance reduction required pursuant to Section 24010, 24109, 24114, 24201.5, 24214, or 24214.5.(e) Except as explicitly provided by its provisions, this section shall not be interpreted to limit the systems authority to correct benefits.SEC. 9. Section 26122 of the Education Code is amended to read:26122. (a) Employer means a school district, community college district, or county office of education that has elected to provide the benefits of this part to persons employed to perform creditable service. Employer shall not include the state.(b) The board shall have final authority for determining an employer for purposes of this part.SEC. 10. Section 7522.02 of the Government Code is amended to read:7522.02. (a) (1) Notwithstanding any other law, except as provided in this article, on and after January 1, 2013, this article shall apply to all state and local public retirement systems and to their participating employers, including the Public Employees Retirement System, the State Teachers Retirement System, the Legislators Retirement System, the Judges Retirement System, the Judges Retirement System II, county and district retirement systems created pursuant to the County Employees Retirement Law of 1937 (Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3), independent public retirement systems, and to individual retirement plans offered by public employers. However, this article shall be subject to the Internal Revenue Code and Section 17 of Article XVI of the California Constitution. The administration of the requirements of this article shall comply with applicable provisions of the Internal Revenue Code and the Revenue and Taxation Code.(2) Notwithstanding paragraph (1), this article shall not apply to the entities described in Section 9 of Article IX of, and Sections 4 and 5 of Article XI of, the California Constitution, except to the extent that these entities continue to be participating employers in any retirement system governed by state statute. Accordingly, any retirement plan approved before January 1, 2013, by the voters of any entity excluded from coverage by this section shall not be affected by this article.(3) (A) Notwithstanding paragraph (1), this article shall not apply to a public employee whose interests are protected under Section 5333(b) of Title 49 of the United States Code until a federal district court rules that the United States Secretary of Labor, or their designee, erred in determining that the application of this article precludes certification under that section, or until January 1, 2016, whichever is sooner.(B) If a federal district court upholds the determination of the United States Secretary of Labor, or their designee, that application of this article precludes them from providing a certification under Section 5333(b) of Title 49 of the United States Code, this article shall not apply to a public employee specified in subparagraph (A).(4) Notwithstanding paragraph (1), this article shall not apply to a multiemployer plan authorized by Section 302(c)(5) of the federal Taft-Hartley Act (29 U.S.C. Sec. 186(c)(5)) if the public employer began participation in that plan prior to January 1, 2013, and the plan is regulated by the federal Employee Retirement Income Security Act of 1974 (29 U.S.C. Sec. 1001 et seq.).(b) The benefit plan required by this article shall apply to public employees who are new members as defined in Section 7522.04.(c) (1) Individuals who were employed by any public employer before January 1, 2013, and who became employed by a subsequent public employer for the first time on or after January 1, 2013, shall be subject to the retirement plan that would have been available to employees of the subsequent employer who were first employed by the subsequent employer on or before December 31, 2012, if the individual was subject to concurrent membership for which creditable service was performed in the previous six months or reciprocity established under any of the following provisions:(A) Article 5 (commencing with Section 20350) of Chapter 3 of Part 3 of Division 5 of Title 2.(B) Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3.(C) Any agreement between public retirement systems to provide reciprocity to members of the systems.(D) Section 22115.2 of the Education Code.(2) An individual who was employed before January 1, 2013, and who, without a separation from employment, changed employment positions and became subject to a different defined benefit plan in a different public retirement system offered by their employer shall be subject to that defined benefit plan as it would have been available to employees who were first employed on or before December 31, 2012.(d) If a public employer, before January 1, 2013, offers a defined benefit pension plan that provides a defined benefit formula with a lower benefit factor at normal retirement age and results in a lower normal cost than the defined benefit formula required by this article, that employer may continue to offer that defined benefit formula instead of the defined benefit formula required by this article, and shall not be subject to the requirements of Section 7522.10 for pensionable compensation subject to that formula. However, if the employer adopts a new defined benefit formula on or after January 1, 2013, that formula must conform to the requirements of this article or must be determined and certified by the retirement systems chief actuary and the retirement board to have no greater risk and no greater cost to the employer than the defined benefit formula required by this article and must be approved by the Legislature. New members of the defined benefit plan may only participate in the lower cost defined benefit formula that was in place before January 1, 2013, or a defined benefit formula that conforms to the requirements of this article or is approved by the Legislature as provided in this subdivision.(e) If a public employer, before January 1, 2013, offers a retirement benefit plan that consists solely of a defined contribution plan, that employer may continue to offer that plan instead of the defined benefit pension plan required by this article. However, if the employer adopts a new defined benefit pension plan or defined benefit formula on or after January 1, 2013, that plan or formula must conform to the requirements of this article or must be determined and certified by the retirement systems chief actuary and the systems board to have no greater risk and no greater cost to the employer than the defined benefit formula required by this article and must be approved by the Legislature. New members of the employers plan may only participate in the defined contribution plan that was in place before January 1, 2013, or a defined contribution plan or defined benefit formula that conforms to the requirements of this article. This subdivision shall not be construed to prohibit an employer from offering a defined contribution plan on or after January 1, 2013, either with or without a defined benefit plan, whether or not the employer offered a defined contribution plan prior to that date.(f) (1) If, on or after January 1, 2013, the Cities of Brea and Fullerton form a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Article 1 (commencing with Section 6500) of Chapter 5), that joint powers authority may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of a common power, to which the employee is associated, by the joint powers authority to any employee of the City of Brea, the City of Fullerton, or a city described in paragraph (2) who is not a new member and subsequently is employed by the joint powers authority within 180 days of the city providing for the exercise of a common power, to which the employee was associated, by the joint powers authority.(2) On or before January 1, 2017, a city in Orange County that is contiguous to the City of Brea or the City of Fullerton may join the joint powers authority described in paragraph (1) but not more than three cities shall be permitted to join.(3) The formation of a joint powers authority on or after January 1, 2013, shall not act in a manner as to exempt a new employee or a new member, as defined by Section 7522.04, from the requirements of this article. New members may only participate in a defined benefit plan or formula that conforms to the requirements of this article.(g) (1) If, on or after January 1, 2013, the Belmont Fire Protection District, the Estero Municipal Improvement District, and the City of San Mateo form a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Article 1 (commencing with Section 6500) of Chapter 5), that joint powers authority may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of a common power, to which the employee is associated, by the joint powers authority to any employee of the Belmont Fire Protection District, the Estero Municipal Improvement District, and the City of San Mateo who is not a new member and subsequently is employed by the joint powers authority within 180 days of the agency providing for the exercise of a common power, to which the employee was associated, by the joint powers authority.(2) The formation of a joint powers authority on or after January 1, 2013, shall not act in a manner as to exempt a new employee or a new member, as defined by Section 7522.04, from the requirements of this article. New members may only participate in a defined benefit plan or formula that conforms to the requirements of this article.(h) The Judges Retirement System and the Judges Retirement System II shall not be required to adopt the defined benefit formula required by Section 7522.20 or 7522.25 or the compensation limitations defined in Section 7522.10.(i) This article shall not be construed to provide membership in any public retirement system for an individual who would not otherwise be eligible for membership under that systems applicable rules or laws.(j) On and after January 1, 2013, each public retirement system shall modify its plan or plans to comply with the requirements of this article and may adopt regulations or resolutions for this purpose.(k) On and after January 1, 2024, a county and a trial court that separate their joint contract into individual contracts pursuant to Section 20471.2 may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of the option to separate, provided that the employee subsequently does not otherwise meet the definition of a new employee.SEC. 11. Section 20034 of the Government Code is amended to read:20034. The highest annual average compensation during any consecutive 12- or 36-month period of employment as a member of any retirement system maintained by the university shall be considered compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, by a member of this system for purposes of computing final compensation for the member providing the member retires concurrently under both systems.SEC. 12. Section 20069 of the Government Code is amended to read:20069. (a) State service means service rendered as an employee or officer (employed, appointed, or elected) of the state, the California Institute for Regenerative Medicine and the officers and employees of its governing body, the university, a school employer, or a contracting agency, for compensation, and only while receiving compensation from that employer therefor, except as provided in Article 4 (commencing with Section 20990) of Chapter 11.(b) State service, solely for purposes of qualification for benefits and retirement allowances under this system, shall also include service rendered as an officer or employee of a county if the salary for the service constitutes compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, by a member of this system under Section 20638.(c) State service, except for purposes of qualification for health or dental benefits, shall also include compensated service rendered by an officer, warrant officer, or a person of the enlisted ranks of the California National Guard who has elected to become a member pursuant to Section 20326 and who has not canceled their membership pursuant to Section 20327.SEC. 13. Section 20638 of the Government Code is amended to read:20638. The highest annual average compensation during any consecutive 12- or 36-month period of employment as a member of a county retirement system shall be considered compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, by a member of this system for purposes of computing final compensation for the member provided:(a) (1) Entry into employment in which the person became a member in one system occurred on or after October 1, 1957, and within 90 days of discontinuance of employment as a member of the other system.(2) This subdivision shall not deny the benefit of this section to any person retiring after October 1, 1963, who entered membership prior to October 1, 1957, if the person entered the employment in which they became a member within 90 days of termination of employment in which they were a member of the other system, and they became a member within seven months of entry into employment, or, if an employee of a district as defined in Section 31468, became a member at the time the district was included in a county retirement system.(b) The member retires concurrently under both systems and is credited with the period of service under the county system at the time of retirement.SEC. 14. Section 20639 of the Government Code is amended to read:20639. The compensation earnable during any period of service as a member of the Judges Retirement System, the Judges Retirement System II, the Legislators Retirement System, or the Defined Benefit Program of the State Teachers Retirement Plan shall be considered compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, as a member of this system for purposes of computing final compensation for the member, if the member retires concurrently under both systems.A member shall be deemed to have retired concurrently under this system and under the Defined Benefit Program of the State Teachers Retirement Plan, if the member is enrolled as a disabled member under the Defined Benefit Program of the State Teachers Retirement Plan and for retirement under this system on the same effective date.SEC. 15. Section 31462.05 of the Government Code is amended to read:31462.05. (a) For a member who is subject to the California Public Employees Pension Reform Act of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of Division 7 of Title 1) for all or any portion of their membership in the county retirement system, final compensation as defined in Section 7522.32 shall apply. The computation for any absence shall be based on the pensionable compensation of the position held by the member at the beginning of the absence.(b) If a member has less than three years of service, that members final compensation shall be determined by dividing the total pensionable compensation by the number of months of service credited to the member and multiplying by 12.SEC. 16. Section 31470.14 of the Government Code is amended to read:31470.14. (a) Local prosecutors, local public defenders, and local public defender investigators are eligible.(b) Except as provided in subdivision (c) and notwithstanding Sections 31639.7 and 31639.75, past service as a general member shall be converted to safety service if the past service was rendered in a position that has subsequently been reclassified as a safety position pursuant to this section before January 1, 2013. On or after January 1, 2013, any enhancement to safety service shall be subject to Section 7522.44. For local prosecutors, as described in paragraph (2) of subdivision (a) of Section 31469.2, service in the office of a district attorney and a local child support agency shall be considered service for the district attorney for purposes of this section.(c) Notwithstanding any other provision of this chapter, within 90 days after this section becomes operative in the county, or on the first day of the calendar month following entrance into service, whichever is later, a local prosecutor, local public defender, or local public defender investigator may file a written election not to become a local safety member pursuant to this section.(d) Notwithstanding any other provision of this chapter, local prosecutors, local public defenders, and local public defender investigators shall be subject to the benefit formula contained in Section 31664 or 31664.2, or any other benefit formula applicable to safety members that does not provide benefits greater than those benefits provided under Section 31664.2, as designated in the resolution described in subdivision (e). A local prosecutor, local public defender, or local public defender investigator shall not be deemed to be a county peace officer, as defined in Section 31469.1, for any purpose under this chapter.(e) This section shall not be operative in a county unless and until the board of supervisors, by resolution adopted by majority vote, makes this section operative in the county. A resolution to make this section operative in the county shall include all local prosecutors, local public defenders, and local public defender investigators described in Section 31469.2.(f) A provision in a memorandum of understanding that an employer is not obligated to meet and confer regarding wages, hours, or conditions of employment during the term of the memorandum shall not be construed to preclude meetings regarding the provisions of this section between an employer and local prosecutors, local public defenders, and local public defender investigators prior to the expiration of the term of the memorandum of understanding.(g) This section does not apply to any person described in Section 31469.2 who dies prior to the date this section becomes applicable in the county.SEC. 17. Section 31680.9 of the Government Code is amended to read:31680.9. (a) A person who has been retired under the retirement system, for service or for disability, may not be employed in any capacity thereafter by the county or a district of the retirement system unless the person has first been reinstated from retirement pursuant to this chapter, or unless the employment, without reinstatement, is authorized by this article or the Public Employees Pension Reform Act of 2013. A retired person whose employment without reinstatement is authorized by this article or the Public Employees Pension Reform Act shall acquire no service credit or retirement rights under this part with respect to the employment.(b) Any retired member employed in violation of Section 31680.2, 31680.3, 31680.6, or 7522.56 shall do all of the following:(1) Reimburse the retirement system for any retirement allowance received during the period or periods of employment that are in violation of law. The retirement allowance that was paid in violation of law shall be considered an overpayment subject to collection by the retirement system.(2) Only if reinstated, pay to the retirement system an amount of money equal to the employee contributions that would otherwise have been paid during the period or periods of unlawful employment, plus interest thereon.(3) Contribute toward reimbursement of the retirement system for reasonable administrative expenses incurred in responding to this situation, to the extent the member is determined by the retirement system administrator to be at fault.(c) Any public employer that employs a retired member in violation of Section 31680.2, 31680.3, 31680.6, or 7522.56 shall do both of the following:(1) Only if the retired member is reinstated, pay to the retirement system an amount of money equal to employer contributions that would otherwise have been paid for the period or periods of time that the member is employed in violation of this article, plus interest thereon.(2) Contribute toward reimbursement of the retirement system for reasonable administrative expenses incurred in responding to this situation, to the extent the employer is determined by the administrator of the retirement system to be at fault.(d) If an employer fails to report, in a format determined by the system for the administrative recordkeeping purposes of the system, a retired member employed in any capacity, without reinstatement, within 30 days of the effective date of hire, the board may assess the employer a fee of two hundred dollars ($200) per retired member per month until the information is reported.(e) If an employer fails to report the pay rate and number of hours worked of a retired member employed in any capacity, without reinstatement, at periods determined by the system, the board may assess the employer a fee of two hundred dollars ($200) per retired member per month until the information is reported.(f) An employer shall not pass on to an employee any fees assessed pursuant to subdivisions (d) and (e).(g) The employer shall provide written notice to the employee, by an appropriate mechanism, including by first-class mail or email, before the employee is within 10 business days or 80 hours of the period of time included in Section 31680.2, 31680.3, 31680.6, or 7522.56. | |
| 106 | + | The people of the State of California do enact as follows:SECTION 1. Section 22104.8 of the Education Code, as added by Section 2 of Chapter 690 of the Statutes of 2024, is amended to read:22104.8. (a) Annualized pay rate means the salary, as described in Section 22119.3, a person could earn during a school term in each position subject to membership if creditable service were performed for that position on a full-time basis.(b) The annualized pay rate shall be determined pursuant to the publicly available pay schedule by using either of the following methods:(1) Explicitly itemized as a single amount, either separately or within a table.(2) Derived from an explicit hourly or daily rate multiplied by the total hours or days required in order to be employed in the position subject to membership on a full-time basis pursuant to Section 22138.5. If the total hours or days required to be employed on a full-time basis is not established, the number of hours or days shall be the minimum standard described in Section 22138.5.(c) If no annualized pay rate exists pursuant to subdivision (b) for a position subject to membership, all compensation earned in that position shall be deemed supplemental pay pursuant to paragraph (2) of subdivision (a) of Section 22119.3.(d) This definition of annualized pay rate is consistent with subdivision (e) of Section 22115.(e) (1) The board shall determine a date based on when the system has the capacity to implement the changes made by the act that added this subdivision. The date determined by the board shall be posted on the internet website of the system no later than July 1, 2027.(2) This section shall become operative on the date determined by the board pursuant to paragraph (1).SEC. 2. Section 22131 of the Education Code is amended to read:22131. (a) (1) Employer or employing agency means the state or any agency or political subdivision thereof, including, but not limited to, a joint powers authority, for which creditable service subject to coverage by the plan is performed.(2) In the case of a joint powers authority, all of the following criteria shall be met:(A) The joint powers authority shall be formed pursuant to the Joint Exercise of Powers Act (Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code).(B) All entities included in the joint powers authority shall be entities at which creditable service subject to coverage by the plan is performed.(C) The joint powers authority shall report through a single county office of education, with that county superintendent having responsibility for activities specified under this part, including but not limited to, reporting and remitting contributions.(b) This section shall be administered in compliance with the requirements defining a governmental plan set forth in Section 414(d) of the Internal Revenue Code of 1986 (26 U.S.C. Sec. 414(d)).(c) The board shall have final authority for determining an employer or employing agency for purposes of this part and Part 13.5 (commencing with Section 25900).SEC. 3. Section 22146.5 of the Education Code is amended to read:22146.5. Membership means membership in the Defined Benefit Program, except as otherwise specifically provided in this part. The board shall have final authority for determining membership in the system, considering the conditions under which persons may be admitted to and receive benefits from the system.SEC. 4. Section 22713 of the Education Code is amended to read:22713. (a) Notwithstanding any other provision of this chapter, if the governing board of a school district or a community college district, or a county superintendent of schools establishes regulations pursuant to Sections 44922 and 87483, an employer may enter into a written agreement with an employee who is a member of the Defined Benefit Program to reduce their workload in a position from full time to part time, receive the service credit the member would have received if the member had been employed in that position on a full-time basis and have their retirement allowance, as well as other benefits that the member is entitled to under this part, based, in part, on the final compensation the member would have been entitled to if the member had been employed on a full-time basis. The option to reduce the members workload shall be exercised at the request of the member if all of the following conditions are met:(1) The member is employed by either of the following:(A) A school district or county office of education as a prekindergarten through grade 12 certificated employee who does not hold a position with a salary above the maximum salary of a school principal for that employer.(B) A community college district.(2) The member has a minimum of 10 years of credited service in the Defined Benefit Program prior to the start of the school term of the first school year of the agreement to reduce the members workload.(3) The member shall have been employed on a full-time basis to perform creditable service under the Defined Benefit Program each year of the five school years immediately preceding the first school year in which the members workload is reduced, without having a break in service. For the purposes of this paragraph:(A) Employer-approved leaves of absence, and unpaid absences from the performance of creditable service for personal reasons from full-time employment do not constitute a break in service.(B) Creditable service that was performed for a school year in which a member reduced their workload pursuant to this section shall be treated as full time, provided that the agreement to reduce the members workload was not terminated during that year pursuant to subdivision (e).(C) The period of time during which a member is retired for service shall constitute a break in service.(4) The member is 55 years of age or older prior to the start of the school term of the first school year of the agreement for which the members workload is reduced.(b) The employer, in conjunction with the system, shall certify the members eligibility for participation in the reduced workload program in accordance with subdivision (a). The employers certification shall be submitted in a format prescribed by the system and shall be received in the systems headquarters office prior to the start of the school term of the first school year of the agreement for which the members workload is reduced.(c) The agreement to reduce the members workload shall be in effect prior to the start of the school term of the first school year of the agreement for which the members workload is reduced, and shall include the following requirements:(1) The total amount of time in which a member reduces their workload pursuant to this section shall not exceed 10 school years.(2) The reduced workload shall be equal to at least one-half of the time the employer requires for full-time employment in that position in accordance with Section 22138.5.(3) The member shall be paid creditable compensation that is the pro rata share of the creditable compensation the member would have been paid for that position had the member not reduced their workload.(4) For each school year the members workload is reduced pursuant to this section, the member shall make contributions to the Teachers Retirement Fund in the amount that the member would have contributed if the member had performed creditable service for that position on a full-time basis and if that service was subject to coverage under the Defined Benefit Program.(5) For each school year the members workload is reduced pursuant to this section, the employer shall contribute to the Teachers Retirement Fund at a rate adopted by the board as a plan amendment with respect to the Defined Benefit Program an amount based upon the creditable compensation that would have been paid to the member if the member had performed creditable service for that position on a full-time basis and if that service was subject to coverage under the Defined Benefit Program.(d) The employer shall maintain the necessary records to separately identify each member who participates in the reduced workload program pursuant to this section.(e) The agreement to reduce a members workload shall be terminated if one of the following actions is taken:(1) The members employment is terminated prior to the end of the school term.(2) The member earns less than one-half of the annualized pay rate as defined in Section 22104.8.(3) The member and the employer mutually agree that the member will perform creditable service without making contributions in accordance with paragraphs (4) and (5) of subdivision (c).(f) Upon termination of the agreement for any of the reasons described in subdivision (e):(1) The employer shall notify the system that the agreement to reduce a members workload has been terminated within 30 days of the agreement being terminated.(2) The members service credit and contributions for that school year in which the agreement is terminated shall be computed in accordance with Section 22701 and Chapters 15 and 16.(3) That school year in which the agreement is terminated shall not be included in the total amount of time in which a member is allowed to reduce their workload pursuant to paragraph (1) of subdivision (c).(4) Any subsequent agreement to reduce a members workload shall meet all of the conditions set forth in this section.SEC. 5. Section 22954 of the Education Code is amended to read:22954. (a) Notwithstanding Section 13340 of the Government Code, a continuous appropriation is hereby annually made from the General Fund to the Controller, pursuant to this section, for transfer to the Supplemental Benefit Maintenance Account in the Teachers Retirement Fund.(b) Except as reduced pursuant to subdivision (c), the total amount of the appropriation for each year shall be equal to 2.5 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based for purposes of funding the supplemental payments authorized by Section 24415, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5.(c) Beginning with the 200809 fiscal year, the appropriation in subdivision (b) shall be reduced in accordance with the following schedule:200809 ........................ $66,386,000200910 ........................ $70,000,000201011 ........................ $71,000,000201112 and each fiscal year thereafter ........................ $72,000,000(d) Transfers made to the Supplemental Benefit Maintenance Account, pursuant to subdivision (a), shall be made on October 15 and April 15 of each fiscal year with each payment to be 50 percent of the annual appropriation. If either date falls on a weekend or holiday, the funds shall be transferred the next business day.(e) Notwithstanding subdivision (d), for the 201011 fiscal year only, the transfer that would have been made pursuant to subdivision (d) on October 15, 2010, shall be made on November 15, 2010, and the transfer that would have been made pursuant to subdivision (d) on April 15, 2011, shall be made on March 14, 2011.(f) The board may deduct from the annual appropriation made pursuant to this section an amount necessary for the administrative expenses of Section 24415.(g) It is the intent of the Legislature in enacting this section to establish the supplemental payments pursuant to Section 24415 as vested benefits pursuant to a contractually enforceable promise to make annual contributions from the General Fund to the Supplemental Benefit Maintenance Account in the Teachers Retirement Fund in order to provide a continuous annual source of revenue for the purposes of making the supplemental payments under Section 24415.SEC. 6. Section 22955 of the Education Code is amended to read:22955. (a) Notwithstanding Section 13340 of the Government Code, commencing July 1, 2003, a continuous appropriation is hereby annually made from the General Fund to the Controller, pursuant to this section, for transfer to the Teachers Retirement Fund. The total amount of the appropriation for each year shall be equal to 2.017 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5, and shall be divided into four equal payments. The payments shall be made on July 1, October 1, December 15, and April 15 of each fiscal year. If any of these dates fall on a weekend or holiday, the funds shall be transferred the next business day.(b) Notwithstanding Section 13340 of the Government Code, commencing October 1, 2003, a continuous appropriation, in addition to the appropriation made by subdivision (a), is hereby annually made from the General Fund to the Controller for transfer to the Teachers Retirement Fund. The total amount of the appropriation for each year shall be equal to 0.524 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5, and shall be divided into four equal quarterly payments. The percentage shall be adjusted to reflect the contribution required to fund the normal cost deficit or the unfunded obligation as determined by the board based upon a recommendation from its actuary. If a rate increase is required, the adjustment may be for no more than 0.25 percent per year and in no case may the transfer made pursuant to this subdivision exceed 1.505 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based. At any time when there is neither an unfunded obligation nor a normal cost deficit, the percentage shall be reduced to zero. The funds transferred pursuant to this subdivision shall first be applied to eliminating on or before June 30, 2027, the unfunded actuarial liability of the fund identified in the actuarial valuation as of June 30, 1997.(c) For the purposes of this section, the term normal cost deficit means the difference between the normal cost rate as determined in the actuarial valuation required by Section 22311 and the total of the member contribution rate required under Section 22901 and the employer contribution rate required under Section 22950, and shall exclude (1) the portion for unused sick leave service credit granted pursuant to Section 22717, and (2) the cost of benefit increases that occur after July 1, 1990. The contribution rates prescribed in Section 22901 and Section 22950 on July 1, 1990, shall be utilized to make the calculations. The normal cost deficit shall then be multiplied by the total of the creditable compensation upon which member contributions under this part are based to determine the dollar amount of the normal cost deficit for the year.(d) Pursuant to Section 22001 and case law, members are entitled to a financially sound retirement system. It is the intent of the Legislature that this section shall provide the retirement fund stable and full funding over the long term.(e) This section continues in effect but in a somewhat different form, fully performs, and does not in any way unreasonably impair, the contractual obligations determined by the court in California Teachers Association v. Cory, 155 Cal.App.3d 494.(f) Subdivision (b) shall not be construed to be applicable to any unfunded liability resulting from any benefit increase or change in contribution rate under this part that occurs after July 1, 1990.(g) The provisions of this section shall be construed and implemented to be in conformity with the judicial intent expressed by the court in California Teachers Association v. Cory, 155 Cal.App.3d 494.(h) Subdivisions (a) through (g), inclusive, shall be inoperative on and after July 1, 2014, and shall become operative beginning the earlier of July 1, 2046, or July 1 of the first fiscal year after a 30-day notice has been sent to the Joint Legislative Budget Committee and the Controller in compliance with subdivision (d) of Section 22957.SEC. 7. Section 22955.1 of the Education Code is amended to read:22955.1. (a) Notwithstanding Section 13340 of the Government Code, commencing July 1, 2003, a continuous appropriation is hereby annually made from the General Fund to the Controller, pursuant to this section, for transfer to the Teachers Retirement Fund. The total amount of the appropriation for each year shall be equal to 2.017 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5, and shall be divided into four equal payments. The payments shall be made on July 1, October 1, December 15, and April 15 of each fiscal year. If any of these dates fall on a weekend or holiday, the funds shall be transferred the next business day.(b) (1) Commencing July 1, 2014, the amount of the appropriation required under subdivision (a) shall increase by the following percentages of the creditable compensation upon which that appropriation is based:(A) On July 1, 2014, by 1.437 percent.(B) On July 1, 2015, by 2.874 percent.(C) On July 1, 2016, by 4.311 percent.(2) Except as provided in paragraph (3), for the 201718 fiscal year and each fiscal year thereafter, the board shall increase or decrease the percentage specified in this subdivision from the percentage paid during the prior fiscal year to reflect the contribution required to eliminate the remaining unfunded actuarial obligation, as determined by the board based upon a recommendation from its actuary. If a rate increase is required, the adjustment may be for no more than 0.50 percent per year of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based. At any time when there is not an unfunded actuarial obligation as determined by the board, the percentage specified in this subdivision shall be reduced to zero.(3) For the 202021 fiscal year, the percentage specified in this subdivision shall be the percentage set by the board pursuant to paragraph (2) for the 201920 fiscal year, and the board shall not increase or decrease the percentage specified in this paragraph for the 202021 fiscal year. This paragraph does not prevent payments towards the unfunded actuarial obligation from being made from other sources of funding, including, but not limited to, other sources in the General Fund.(c) Pursuant to Section 22001 and case law, members are entitled to a financially sound retirement system. It is the intent of the Legislature that this section shall provide the retirement fund stable and full funding over the long term.(d) This section continues in effect but in a somewhat different form, fully performs, and does not in any way unreasonably impair, the contractual obligations determined by the court in California Teachers Association v. Cory (1984) 155 Cal.App.3d 494.(e) Subdivision (b) shall not be construed to be applicable to any unfunded actuarial obligation resulting from any benefit increase or change in contribution rate under this part that occurs after July 1, 1990, except that state contributions made pursuant to subdivision (b) shall be allocated to reduce the unfunded actuarial obligation resulting from the benefits and contribution rates in effect as of July 1, 1990.(f) The provisions of this section shall be construed and implemented to be in conformity with the judicial intent expressed by the court in California Teachers Association v. Cory (1984) 155 Cal.App.3d 494.(g) (1) Except as described in paragraph (2), this section shall become inoperative on July 1, 2046, and as of January 1, 2047, is repealed.(2) Notwithstanding paragraph (1), on July 1 of the first fiscal year after a 30-day notice has been sent to the Joint Legislative Budget Committee and the Controller in compliance with subdivision (d) of Section 22957, this section shall become inoperative and, as of the following January 1, is repealed.SEC. 8.Section 24502 of the Education Code is amended to read:24502.In the exercise of its rights under this part, the board or the agent under contract may commence or prosecute actions, file liens, intervene in court proceedings, join parties to the action and consolidate actions all in the same manner and to the same extent provided in Chapter 5 (commencing with Section 3850) of Part 1 of Division 4 of the Labor Code except that recovery shall not be made from benefits payable under this part because of the injury or death. The superior court of any county within California where venue would be proper or the Superior Court of the County of Sacramento shall have jurisdiction of, and shall be the appropriate venue for, any suit, action, or legal proceedings relating to the subrogation rights of STRS under this part.SEC. 9.SEC. 8. Section 24616.2 of the Education Code is amended to read:24616.2. (a) Except as limited pursuant to Section 22008:(1) All amounts that have been overpaid due to inaccurate information, untimely submission, nonsubmission of information, or on the basis of fraud or intentional misrepresentation by, or on behalf of, a recipient of a benefit, annuity, or refund shall be recovered, as applicable, from the member, participant, former member, former participant, or beneficiary. This paragraph excludes amounts overpaid pursuant to paragraph (2), (3), or (4).(2) All amounts that have been overpaid due to inaccurate information, untimely submission, or nonsubmission of information by an employer that reports directly to the system shall be recovered, as applicable, from that employer.(3) All amounts that have been overpaid due to inaccurate information, untimely submission, or nonsubmission of information by a county superintendent of schools that reports directly to the system on behalf of an employer shall be recovered, as applicable, from that county superintendent of schools. If the overpayment resulted from an error of an employer, the county superintendent of schools may recover the amounts required from that employer pursuant to Section 23012.(A) If the county superintendent of schools provided notice to, and received consent from, an employer to submit that employers monthly report, inclusive of any modifications by the county superintendent of schools on behalf of the employer, an overpayment due to inaccurate information shall be considered an error of that employer.(B) If the untimely submission or nonsubmission of information was the result of the employers untimely submission or nonsubmission of information, the overpayment shall be considered an error of the employer.(4) (A) All amounts that have been overpaid due to an error by the system shall be recovered, with interest as specified in subparagraph (B), as follows:(i) Commencing July 1, 2024, 85 percent of this amount resulting from benefit adjustments that take place within the fiscal year ending in the immediately preceding calendar year, the specific amount of which shall be determined by the board, shall be made as a continuous appropriation from the General Fund to the Controller each July 1 for transfer to the Teachers Retirement Fund. If July 1 falls on a weekend or holiday, the funds shall be transferred the next business day.(ii) Commencing July 1, 2024, 15 percent of this amount resulting from benefit adjustments that take place within the fiscal year ending in the immediately preceding calendar year, the specific amount of which shall be determined by the board, shall be recovered from all employers that report directly to the system in amounts proportionate to their share of contributions for that fiscal year, including the contributions of those employers for whom a county superintendent of schools reports. A county superintendent of schools that reports directly to the system on behalf of employers may recover amounts proportionate to each employers share of contributions for that fiscal year from those employers pursuant to Section 23012.(B) The amount to be recovered in accordance with subparagraph (A) shall be calculated to include regular interest from the date of the overpayment to the date of recovery.(b) (1) An employer shall remit any amount required to be paid to the system pursuant to this section within 30 days of the date of the invoice. If the system does not receive payment within 30 days, the amount owed to the system shall be recalculated to include regular interest from the initial due date.(2) If a payment pursuant to paragraph (1) is not received within 30 days of the date of invoice, the Controller shall, upon the order of the board, reduce subsequent payments from the State School Fund to the county for deposit in the county school service fund by the amount owed or, upon the request of a county superintendent of schools to the county auditor, the Controller shall reduce payments to a school district for deposit in the district general fund by the amount owed. The Controller shall then pay to the system the amount owed for deposit in the Teachers Retirement Fund.(c) Determination of an amount that has been overpaid shall be provided in writing by the system to the party responsible for the overpayment pursuant to subdivision (a). The system shall identify the error, document the source of the error, and specify the total amount overpaid due to the error.(d) This section shall not apply to a recovery made under Section 24015, 24016, or 24017 or to a benefit or allowance reduction required pursuant to Section 24010, 24109, 24114, 24201.5, 24214, or 24214.5.(e) Except as explicitly provided by its provisions, this section shall not be interpreted to limit the systems authority to correct benefits.SEC. 10.SEC. 9. Section 26122 of the Education Code is amended to read:26122. (a) Employer means a school district, community college district, or county office of education that has elected to provide the benefits of this part to persons employed to perform creditable service. Employer shall not include the state.(b) The board shall have final authority for determining an employer for purposes of this part.SEC. 10. Section 7522.02 of the Government Code is amended to read:7522.02. (a) (1) Notwithstanding any other law, except as provided in this article, on and after January 1, 2013, this article shall apply to all state and local public retirement systems and to their participating employers, including the Public Employees Retirement System, the State Teachers Retirement System, the Legislators Retirement System, the Judges Retirement System, the Judges Retirement System II, county and district retirement systems created pursuant to the County Employees Retirement Law of 1937 (Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3), independent public retirement systems, and to individual retirement plans offered by public employers. However, this article shall be subject to the Internal Revenue Code and Section 17 of Article XVI of the California Constitution. The administration of the requirements of this article shall comply with applicable provisions of the Internal Revenue Code and the Revenue and Taxation Code.(2) Notwithstanding paragraph (1), this article shall not apply to the entities described in Section 9 of Article IX of, and Sections 4 and 5 of Article XI of, the California Constitution, except to the extent that these entities continue to be participating employers in any retirement system governed by state statute. Accordingly, any retirement plan approved before January 1, 2013, by the voters of any entity excluded from coverage by this section shall not be affected by this article.(3) (A) Notwithstanding paragraph (1), this article shall not apply to a public employee whose interests are protected under Section 5333(b) of Title 49 of the United States Code until a federal district court rules that the United States Secretary of Labor, or their designee, erred in determining that the application of this article precludes certification under that section, or until January 1, 2016, whichever is sooner.(B) If a federal district court upholds the determination of the United States Secretary of Labor, or their designee, that application of this article precludes them from providing a certification under Section 5333(b) of Title 49 of the United States Code, this article shall not apply to a public employee specified in subparagraph (A).(4) Notwithstanding paragraph (1), this article shall not apply to a multiemployer plan authorized by Section 302(c)(5) of the federal Taft-Hartley Act (29 U.S.C. Sec. 186(c)(5)) if the public employer began participation in that plan prior to January 1, 2013, and the plan is regulated by the federal Employee Retirement Income Security Act of 1974 (29 U.S.C. Sec. 1001 et seq.).(b) The benefit plan required by this article shall apply to public employees who are new members as defined in Section 7522.04.(c) (1) Individuals who were employed by any public employer before January 1, 2013, and who became employed by a subsequent public employer for the first time on or after January 1, 2013, shall be subject to the retirement plan that would have been available to employees of the subsequent employer who were first employed by the subsequent employer on or before December 31, 2012, if the individual was subject to concurrent membership for which creditable service was performed in the previous six months or reciprocity established under any of the following provisions:(A) Article 5 (commencing with Section 20350) of Chapter 3 of Part 3 of Division 5 of Title 2.(B) Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3.(C) Any agreement between public retirement systems to provide reciprocity to members of the systems.(D) Section 22115.2 of the Education Code.(2) An individual who was employed before January 1, 2013, and who, without a separation from employment, changed employment positions and became subject to a different defined benefit plan in a different public retirement system offered by their employer shall be subject to that defined benefit plan as it would have been available to employees who were first employed on or before December 31, 2012.(d) If a public employer, before January 1, 2013, offers a defined benefit pension plan that provides a defined benefit formula with a lower benefit factor at normal retirement age and results in a lower normal cost than the defined benefit formula required by this article, that employer may continue to offer that defined benefit formula instead of the defined benefit formula required by this article, and shall not be subject to the requirements of Section 7522.10 for pensionable compensation subject to that formula. However, if the employer adopts a new defined benefit formula on or after January 1, 2013, that formula must conform to the requirements of this article or must be determined and certified by the retirement systems chief actuary and the retirement board to have no greater risk and no greater cost to the employer than the defined benefit formula required by this article and must be approved by the Legislature. New members of the defined benefit plan may only participate in the lower cost defined benefit formula that was in place before January 1, 2013, or a defined benefit formula that conforms to the requirements of this article or is approved by the Legislature as provided in this subdivision.(e) If a public employer, before January 1, 2013, offers a retirement benefit plan that consists solely of a defined contribution plan, that employer may continue to offer that plan instead of the defined benefit pension plan required by this article. However, if the employer adopts a new defined benefit pension plan or defined benefit formula on or after January 1, 2013, that plan or formula must conform to the requirements of this article or must be determined and certified by the retirement systems chief actuary and the systems board to have no greater risk and no greater cost to the employer than the defined benefit formula required by this article and must be approved by the Legislature. New members of the employers plan may only participate in the defined contribution plan that was in place before January 1, 2013, or a defined contribution plan or defined benefit formula that conforms to the requirements of this article. This subdivision shall not be construed to prohibit an employer from offering a defined contribution plan on or after January 1, 2013, either with or without a defined benefit plan, whether or not the employer offered a defined contribution plan prior to that date.(f) (1) If, on or after January 1, 2013, the Cities of Brea and Fullerton form a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Article 1 (commencing with Section 6500) of Chapter 5), that joint powers authority may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of a common power, to which the employee is associated, by the joint powers authority to any employee of the City of Brea, the City of Fullerton, or a city described in paragraph (2) who is not a new member and subsequently is employed by the joint powers authority within 180 days of the city providing for the exercise of a common power, to which the employee was associated, by the joint powers authority.(2) On or before January 1, 2017, a city in Orange County that is contiguous to the City of Brea or the City of Fullerton may join the joint powers authority described in paragraph (1) but not more than three cities shall be permitted to join.(3) The formation of a joint powers authority on or after January 1, 2013, shall not act in a manner as to exempt a new employee or a new member, as defined by Section 7522.04, from the requirements of this article. New members may only participate in a defined benefit plan or formula that conforms to the requirements of this article.(g) (1) If, on or after January 1, 2013, the Belmont Fire Protection District, the Estero Municipal Improvement District, and the City of San Mateo form a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Article 1 (commencing with Section 6500) of Chapter 5), that joint powers authority may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of a common power, to which the employee is associated, by the joint powers authority to any employee of the Belmont Fire Protection District, the Estero Municipal Improvement District, and the City of San Mateo who is not a new member and subsequently is employed by the joint powers authority within 180 days of the agency providing for the exercise of a common power, to which the employee was associated, by the joint powers authority.(2) The formation of a joint powers authority on or after January 1, 2013, shall not act in a manner as to exempt a new employee or a new member, as defined by Section 7522.04, from the requirements of this article. New members may only participate in a defined benefit plan or formula that conforms to the requirements of this article.(3)On and after January 1, 2024, a county and a trial court that separate their joint contract into individual contracts pursuant to Section 20471.2 may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of the option to separate, provided that the employee subsequently does not otherwise meet the definition of a new employee.(h) The Judges Retirement System and the Judges Retirement System II shall not be required to adopt the defined benefit formula required by Section 7522.20 or 7522.25 or the compensation limitations defined in Section 7522.10.(i) This article shall not be construed to provide membership in any public retirement system for an individual who would not otherwise be eligible for membership under that systems applicable rules or laws.(j) On and after January 1, 2013, each public retirement system shall modify its plan or plans to comply with the requirements of this article and may adopt regulations or resolutions for this purpose.(k) On and after January 1, 2024, a county and a trial court that separate their joint contract into individual contracts pursuant to Section 20471.2 may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of the option to separate, provided that the employee subsequently does not otherwise meet the definition of a new employee.SEC. 11. Section 20034 of the Government Code is amended to read:20034. The highest annual average compensation during any consecutive 12- or 36-month period of employment as a member of any retirement system maintained by the university shall be considered compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, by a member of this system for purposes of computing final compensation for the member providing the member retires concurrently under both systems.SEC. 12. Section 20069 of the Government Code is amended to read:20069. (a) State service means service rendered as an employee or officer (employed, appointed, or elected) of the state, the California Institute for Regenerative Medicine and the officers and employees of its governing body, the university, a school employer, or a contracting agency, for compensation, and only while receiving compensation from that employer therefor, except as provided in Article 4 (commencing with Section 20990) of Chapter 11.(b) State service, solely for purposes of qualification for benefits and retirement allowances under this system, shall also include service rendered as an officer or employee of a county if the salary for the service constitutes compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, by a member of this system under Section 20638.(c) State service, except for purposes of qualification for health or dental benefits, shall also include compensated service rendered by an officer, warrant officer, or a person of the enlisted ranks of the California National Guard who has elected to become a member pursuant to Section 20326 and who has not canceled their membership pursuant to Section 20327.SEC. 13. Section 20638 of the Government Code is amended to read:20638. The highest annual average compensation during any consecutive 12- or 36-month period of employment as a member of a county retirement system shall be considered compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, by a member of this system for purposes of computing final compensation for the member provided:(a) (1) Entry into employment in which the person became a member in one system occurred on or after October 1, 1957, and within 90 days of discontinuance of employment as a member of the other system.(2) This subdivision shall not deny the benefit of this section to any person retiring after October 1, 1963, who entered membership prior to October 1, 1957, if the person entered the employment in which they became a member within 90 days of termination of employment in which they were a member of the other system, and they became a member within seven months of entry into employment, or, if an employee of a district as defined in Section 31468, became a member at the time the district was included in a county retirement system.(b) The member retires concurrently under both systems and is credited with the period of service under the county system at the time of retirement.SEC. 14. Section 20639 of the Government Code is amended to read:20639. The compensation earnable during any period of service as a member of the Judges Retirement System, the Judges Retirement System II, the Legislators Retirement System, or the Defined Benefit Program of the State Teachers Retirement Plan shall be considered compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, as a member of this system for purposes of computing final compensation for the member, if the member retires concurrently under both systems.A member shall be deemed to have retired concurrently under this system and under the Defined Benefit Program of the State Teachers Retirement Plan, if the member is enrolled as a disabled member under the Defined Benefit Program of the State Teachers Retirement Plan and for retirement under this system on the same effective date.SEC. 15. Section 31462.05 of the Government Code is amended to read:31462.05. (a) For a member who is subject to the California Public Employees Pension Reform Act of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of Division 7 of Title 1) for all or any portion of their membership in the county retirement system, final compensation as defined in Section 7522.32 shall apply. The computation for any absence shall be based on the pensionable compensation of the position held by the member at the beginning of the absence.(b) If a member has less than three years of service, that members final compensation shall be determined by dividing the total pensionable compensation by the number of months of service credited to the member and multiplying by 12.SEC. 16. Section 31470.14 of the Government Code is amended to read:31470.14. (a) Local prosecutors, local public defenders, and local public defender investigators are eligible.(b) Except as provided in subdivision (c) and notwithstanding Sections 31639.7 and 31639.75, past service as a general member shall be converted to safety service if the past service was rendered in a position that has subsequently been reclassified as a safety position pursuant to this section before January 1, 2013. On or after January 1, 2013, any enhancement to safety service shall be subject to Section 7522.44. For local prosecutors, as described in paragraph (2) of subdivision (a) of Section 31469.2, service in the office of a district attorney and a local child support agency shall be considered service for the district attorney for purposes of this section.(c) Notwithstanding any other provision of this chapter, within 90 days after this section becomes operative in the county, or on the first day of the calendar month following entrance into service, whichever is later, a local prosecutor, local public defender, or local public defender investigator may file a written election not to become a local safety member pursuant to this section.(d) Notwithstanding any other provision of this chapter, local prosecutors, local public defenders, and local public defender investigators shall be subject to the benefit formula contained in Section 31664 or 31664.2, or any other benefit formula applicable to safety members that does not provide benefits greater than those benefits provided under Section 31664.2, as designated in the resolution described in subdivision (e). A local prosecutor, local public defender, or local public defender investigator shall not be deemed to be a county peace officer, as defined in Section 31469.1, for any purpose under this chapter.(e) This section shall not be operative in a county unless and until the board of supervisors, by resolution adopted by majority vote, makes this section operative in the county. A resolution to make this section operative in the county shall include all local prosecutors, local public defenders, and local public defender investigators described in Section 31469.2.(f) A provision in a memorandum of understanding that an employer is not obligated to meet and confer regarding wages, hours, or conditions of employment during the term of the memorandum shall not be construed to preclude meetings regarding the provisions of this section between an employer and local prosecutors, local public defenders, and local public defender investigators prior to the expiration of the term of the memorandum of understanding.(g) This section does not apply to any person described in Section 31469.2 who dies prior to the date this section becomes applicable in the county.SEC. 17. Section 31680.9 of the Government Code is amended to read:31680.9. (a) A person who has been retired under the retirement system, for service or for disability, may not be employed in any capacity thereafter by the county or a district of the retirement system unless the person has first been reinstated from retirement pursuant to this chapter, or unless the employment, without reinstatement, is authorized by this article or the Public Employees Pension Reform Act of 2013. A retired person whose employment without reinstatement is authorized by this article or the Public Employees Pension Reform Act shall acquire no service credit or retirement rights under this part with respect to the employment.(b) Any retired member employed in violation of Section 31680.2, 31680.3, 31680.6, or 7522.56 shall do all of the following:(1) Reimburse the retirement system for any retirement allowance received during the period or periods of employment that are in violation of law. The retirement allowance that was paid in violation of law shall be considered an overpayment subject to collection by the retirement system.(2) Only if reinstated, pay to the retirement system an amount of money equal to the employee contributions that would otherwise have been paid during the period or periods of unlawful employment, plus interest thereon.(3) Contribute toward reimbursement of the retirement system for reasonable administrative expenses incurred in responding to this situation, to the extent the member is determined by the retirement system administrator to be at fault.(c) Any public employer that employs a retired member in violation of Section 31680.2, 31680.3, 31680.6, or 7522.56 shall do both of the following:(1) Only if the retired member is reinstated, pay to the retirement system an amount of money equal to employer contributions that would otherwise have been paid for the period or periods of time that the member is employed in violation of this article, plus interest thereon.(2) Contribute toward reimbursement of the retirement system for reasonable administrative expenses incurred in responding to this situation, to the extent the employer is determined by the administrator of the retirement system to be at fault.(d) If an employer fails to report, in a format determined by the system for the administrative recordkeeping purposes of the system, a retired member employed in any capacity, without reinstatement, within 30 days of the effective date of hire, the board may assess the employer a fee of two hundred dollars ($200) per retired member per month until the information is reported.(e) If an employer fails to report the pay rate and number of hours worked of a retired member employed in any capacity, without reinstatement, at periods determined by the system, the board may assess the employer a fee of two hundred dollars ($200) per retired member per month until the information is reported.(f) An employer shall not pass on to an employee any fees assessed pursuant to subdivisions (d) and (e).(g) The employer shall provide written notice to the employee, by an appropriate mechanism, including by first-class mail or email, before the employee is within 10 business days or 80 hours of the period of time included in Section 31680.2, 31680.3, 31680.6, or 7522.56. | |
| 104 | 107 | ||
| 105 | 108 | The people of the State of California do enact as follows: | |
| 106 | 109 | ||
| 107 | 110 | ## The people of the State of California do enact as follows: | |
| 108 | 111 | ||
| 109 | 112 | SECTION 1. Section 22104.8 of the Education Code, as added by Section 2 of Chapter 690 of the Statutes of 2024, is amended to read:22104.8. (a) Annualized pay rate means the salary, as described in Section 22119.3, a person could earn during a school term in each position subject to membership if creditable service were performed for that position on a full-time basis.(b) The annualized pay rate shall be determined pursuant to the publicly available pay schedule by using either of the following methods:(1) Explicitly itemized as a single amount, either separately or within a table.(2) Derived from an explicit hourly or daily rate multiplied by the total hours or days required in order to be employed in the position subject to membership on a full-time basis pursuant to Section 22138.5. If the total hours or days required to be employed on a full-time basis is not established, the number of hours or days shall be the minimum standard described in Section 22138.5.(c) If no annualized pay rate exists pursuant to subdivision (b) for a position subject to membership, all compensation earned in that position shall be deemed supplemental pay pursuant to paragraph (2) of subdivision (a) of Section 22119.3.(d) This definition of annualized pay rate is consistent with subdivision (e) of Section 22115.(e) (1) The board shall determine a date based on when the system has the capacity to implement the changes made by the act that added this subdivision. The date determined by the board shall be posted on the internet website of the system no later than July 1, 2027.(2) This section shall become operative on the date determined by the board pursuant to paragraph (1). | |
| 110 | 113 | ||
| 111 | 114 | SECTION 1. Section 22104.8 of the Education Code, as added by Section 2 of Chapter 690 of the Statutes of 2024, is amended to read: | |
| 112 | 115 | ||
| 113 | 116 | ### SECTION 1. | |
| 114 | 117 | ||
| 115 | 118 | 22104.8. (a) Annualized pay rate means the salary, as described in Section 22119.3, a person could earn during a school term in each position subject to membership if creditable service were performed for that position on a full-time basis.(b) The annualized pay rate shall be determined pursuant to the publicly available pay schedule by using either of the following methods:(1) Explicitly itemized as a single amount, either separately or within a table.(2) Derived from an explicit hourly or daily rate multiplied by the total hours or days required in order to be employed in the position subject to membership on a full-time basis pursuant to Section 22138.5. If the total hours or days required to be employed on a full-time basis is not established, the number of hours or days shall be the minimum standard described in Section 22138.5.(c) If no annualized pay rate exists pursuant to subdivision (b) for a position subject to membership, all compensation earned in that position shall be deemed supplemental pay pursuant to paragraph (2) of subdivision (a) of Section 22119.3.(d) This definition of annualized pay rate is consistent with subdivision (e) of Section 22115.(e) (1) The board shall determine a date based on when the system has the capacity to implement the changes made by the act that added this subdivision. The date determined by the board shall be posted on the internet website of the system no later than July 1, 2027.(2) This section shall become operative on the date determined by the board pursuant to paragraph (1). | |
| 116 | 119 | ||
| 117 | 120 | 22104.8. (a) Annualized pay rate means the salary, as described in Section 22119.3, a person could earn during a school term in each position subject to membership if creditable service were performed for that position on a full-time basis.(b) The annualized pay rate shall be determined pursuant to the publicly available pay schedule by using either of the following methods:(1) Explicitly itemized as a single amount, either separately or within a table.(2) Derived from an explicit hourly or daily rate multiplied by the total hours or days required in order to be employed in the position subject to membership on a full-time basis pursuant to Section 22138.5. If the total hours or days required to be employed on a full-time basis is not established, the number of hours or days shall be the minimum standard described in Section 22138.5.(c) If no annualized pay rate exists pursuant to subdivision (b) for a position subject to membership, all compensation earned in that position shall be deemed supplemental pay pursuant to paragraph (2) of subdivision (a) of Section 22119.3.(d) This definition of annualized pay rate is consistent with subdivision (e) of Section 22115.(e) (1) The board shall determine a date based on when the system has the capacity to implement the changes made by the act that added this subdivision. The date determined by the board shall be posted on the internet website of the system no later than July 1, 2027.(2) This section shall become operative on the date determined by the board pursuant to paragraph (1). | |
| 118 | 121 | ||
| 119 | 122 | 22104.8. (a) Annualized pay rate means the salary, as described in Section 22119.3, a person could earn during a school term in each position subject to membership if creditable service were performed for that position on a full-time basis.(b) The annualized pay rate shall be determined pursuant to the publicly available pay schedule by using either of the following methods:(1) Explicitly itemized as a single amount, either separately or within a table.(2) Derived from an explicit hourly or daily rate multiplied by the total hours or days required in order to be employed in the position subject to membership on a full-time basis pursuant to Section 22138.5. If the total hours or days required to be employed on a full-time basis is not established, the number of hours or days shall be the minimum standard described in Section 22138.5.(c) If no annualized pay rate exists pursuant to subdivision (b) for a position subject to membership, all compensation earned in that position shall be deemed supplemental pay pursuant to paragraph (2) of subdivision (a) of Section 22119.3.(d) This definition of annualized pay rate is consistent with subdivision (e) of Section 22115.(e) (1) The board shall determine a date based on when the system has the capacity to implement the changes made by the act that added this subdivision. The date determined by the board shall be posted on the internet website of the system no later than July 1, 2027.(2) This section shall become operative on the date determined by the board pursuant to paragraph (1). | |
| 120 | 123 | ||
| 124 | + | ||
| 125 | + | ||
| 121 | 126 | 22104.8. (a) Annualized pay rate means the salary, as described in Section 22119.3, a person could earn during a school term in each position subject to membership if creditable service were performed for that position on a full-time basis. | |
| 122 | - | ||
| 123 | - | ###### 22104.8. | |
| 124 | 127 | ||
| 125 | 128 | (b) The annualized pay rate shall be determined pursuant to the publicly available pay schedule by using either of the following methods: | |
| 126 | 129 | ||
| 127 | 130 | (1) Explicitly itemized as a single amount, either separately or within a table. | |
| 128 | 131 | ||
| 129 | 132 | (2) Derived from an explicit hourly or daily rate multiplied by the total hours or days required in order to be employed in the position subject to membership on a full-time basis pursuant to Section 22138.5. If the total hours or days required to be employed on a full-time basis is not established, the number of hours or days shall be the minimum standard described in Section 22138.5. | |
| 130 | 133 | ||
| 131 | 134 | (c) If no annualized pay rate exists pursuant to subdivision (b) for a position subject to membership, all compensation earned in that position shall be deemed supplemental pay pursuant to paragraph (2) of subdivision (a) of Section 22119.3. | |
| 132 | 135 | ||
| 133 | 136 | (d) This definition of annualized pay rate is consistent with subdivision (e) of Section 22115. | |
| 134 | 137 | ||
| 135 | 138 | (e) (1) The board shall determine a date based on when the system has the capacity to implement the changes made by the act that added this subdivision. The date determined by the board shall be posted on the internet website of the system no later than July 1, 2027. | |
| 136 | 139 | ||
| 137 | 140 | (2) This section shall become operative on the date determined by the board pursuant to paragraph (1). | |
| 138 | 141 | ||
| 139 | 142 | SEC. 2. Section 22131 of the Education Code is amended to read:22131. (a) (1) Employer or employing agency means the state or any agency or political subdivision thereof, including, but not limited to, a joint powers authority, for which creditable service subject to coverage by the plan is performed.(2) In the case of a joint powers authority, all of the following criteria shall be met:(A) The joint powers authority shall be formed pursuant to the Joint Exercise of Powers Act (Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code).(B) All entities included in the joint powers authority shall be entities at which creditable service subject to coverage by the plan is performed.(C) The joint powers authority shall report through a single county office of education, with that county superintendent having responsibility for activities specified under this part, including but not limited to, reporting and remitting contributions.(b) This section shall be administered in compliance with the requirements defining a governmental plan set forth in Section 414(d) of the Internal Revenue Code of 1986 (26 U.S.C. Sec. 414(d)).(c) The board shall have final authority for determining an employer or employing agency for purposes of this part and Part 13.5 (commencing with Section 25900). | |
| 140 | 143 | ||
| 141 | 144 | SEC. 2. Section 22131 of the Education Code is amended to read: | |
| 142 | 145 | ||
| 143 | 146 | ### SEC. 2. | |
| 144 | 147 | ||
| 145 | 148 | 22131. (a) (1) Employer or employing agency means the state or any agency or political subdivision thereof, including, but not limited to, a joint powers authority, for which creditable service subject to coverage by the plan is performed.(2) In the case of a joint powers authority, all of the following criteria shall be met:(A) The joint powers authority shall be formed pursuant to the Joint Exercise of Powers Act (Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code).(B) All entities included in the joint powers authority shall be entities at which creditable service subject to coverage by the plan is performed.(C) The joint powers authority shall report through a single county office of education, with that county superintendent having responsibility for activities specified under this part, including but not limited to, reporting and remitting contributions.(b) This section shall be administered in compliance with the requirements defining a governmental plan set forth in Section 414(d) of the Internal Revenue Code of 1986 (26 U.S.C. Sec. 414(d)).(c) The board shall have final authority for determining an employer or employing agency for purposes of this part and Part 13.5 (commencing with Section 25900). | |
| 146 | 149 | ||
| 147 | 150 | 22131. (a) (1) Employer or employing agency means the state or any agency or political subdivision thereof, including, but not limited to, a joint powers authority, for which creditable service subject to coverage by the plan is performed.(2) In the case of a joint powers authority, all of the following criteria shall be met:(A) The joint powers authority shall be formed pursuant to the Joint Exercise of Powers Act (Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code).(B) All entities included in the joint powers authority shall be entities at which creditable service subject to coverage by the plan is performed.(C) The joint powers authority shall report through a single county office of education, with that county superintendent having responsibility for activities specified under this part, including but not limited to, reporting and remitting contributions.(b) This section shall be administered in compliance with the requirements defining a governmental plan set forth in Section 414(d) of the Internal Revenue Code of 1986 (26 U.S.C. Sec. 414(d)).(c) The board shall have final authority for determining an employer or employing agency for purposes of this part and Part 13.5 (commencing with Section 25900). | |
| 148 | 151 | ||
| 149 | 152 | 22131. (a) (1) Employer or employing agency means the state or any agency or political subdivision thereof, including, but not limited to, a joint powers authority, for which creditable service subject to coverage by the plan is performed.(2) In the case of a joint powers authority, all of the following criteria shall be met:(A) The joint powers authority shall be formed pursuant to the Joint Exercise of Powers Act (Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code).(B) All entities included in the joint powers authority shall be entities at which creditable service subject to coverage by the plan is performed.(C) The joint powers authority shall report through a single county office of education, with that county superintendent having responsibility for activities specified under this part, including but not limited to, reporting and remitting contributions.(b) This section shall be administered in compliance with the requirements defining a governmental plan set forth in Section 414(d) of the Internal Revenue Code of 1986 (26 U.S.C. Sec. 414(d)).(c) The board shall have final authority for determining an employer or employing agency for purposes of this part and Part 13.5 (commencing with Section 25900). | |
| 150 | 153 | ||
| 154 | + | ||
| 155 | + | ||
| 151 | 156 | 22131. (a) (1) Employer or employing agency means the state or any agency or political subdivision thereof, including, but not limited to, a joint powers authority, for which creditable service subject to coverage by the plan is performed. | |
| 152 | - | ||
| 153 | - | ###### 22131. | |
| 154 | 157 | ||
| 155 | 158 | (2) In the case of a joint powers authority, all of the following criteria shall be met: | |
| 156 | 159 | ||
| 157 | 160 | (A) The joint powers authority shall be formed pursuant to the Joint Exercise of Powers Act (Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code). | |
| 158 | 161 | ||
| 159 | 162 | (B) All entities included in the joint powers authority shall be entities at which creditable service subject to coverage by the plan is performed. | |
| 160 | 163 | ||
| 161 | 164 | (C) The joint powers authority shall report through a single county office of education, with that county superintendent having responsibility for activities specified under this part, including but not limited to, reporting and remitting contributions. | |
| 162 | 165 | ||
| 163 | 166 | (b) This section shall be administered in compliance with the requirements defining a governmental plan set forth in Section 414(d) of the Internal Revenue Code of 1986 (26 U.S.C. Sec. 414(d)). | |
| 164 | 167 | ||
| 165 | 168 | (c) The board shall have final authority for determining an employer or employing agency for purposes of this part and Part 13.5 (commencing with Section 25900). | |
| 166 | 169 | ||
| 167 | 170 | SEC. 3. Section 22146.5 of the Education Code is amended to read:22146.5. Membership means membership in the Defined Benefit Program, except as otherwise specifically provided in this part. The board shall have final authority for determining membership in the system, considering the conditions under which persons may be admitted to and receive benefits from the system. | |
| 168 | 171 | ||
| 169 | 172 | SEC. 3. Section 22146.5 of the Education Code is amended to read: | |
| 170 | 173 | ||
| 171 | 174 | ### SEC. 3. | |
| 172 | 175 | ||
| 173 | 176 | 22146.5. Membership means membership in the Defined Benefit Program, except as otherwise specifically provided in this part. The board shall have final authority for determining membership in the system, considering the conditions under which persons may be admitted to and receive benefits from the system. | |
| 174 | 177 | ||
| 175 | 178 | 22146.5. Membership means membership in the Defined Benefit Program, except as otherwise specifically provided in this part. The board shall have final authority for determining membership in the system, considering the conditions under which persons may be admitted to and receive benefits from the system. | |
| 176 | 179 | ||
| 177 | 180 | 22146.5. Membership means membership in the Defined Benefit Program, except as otherwise specifically provided in this part. The board shall have final authority for determining membership in the system, considering the conditions under which persons may be admitted to and receive benefits from the system. | |
| 178 | 181 | ||
| 182 | + | ||
| 183 | + | ||
| 179 | 184 | 22146.5. Membership means membership in the Defined Benefit Program, except as otherwise specifically provided in this part. The board shall have final authority for determining membership in the system, considering the conditions under which persons may be admitted to and receive benefits from the system. | |
| 180 | - | ||
| 181 | - | ###### 22146.5. | |
| 182 | 185 | ||
| 183 | 186 | SEC. 4. Section 22713 of the Education Code is amended to read:22713. (a) Notwithstanding any other provision of this chapter, if the governing board of a school district or a community college district, or a county superintendent of schools establishes regulations pursuant to Sections 44922 and 87483, an employer may enter into a written agreement with an employee who is a member of the Defined Benefit Program to reduce their workload in a position from full time to part time, receive the service credit the member would have received if the member had been employed in that position on a full-time basis and have their retirement allowance, as well as other benefits that the member is entitled to under this part, based, in part, on the final compensation the member would have been entitled to if the member had been employed on a full-time basis. The option to reduce the members workload shall be exercised at the request of the member if all of the following conditions are met:(1) The member is employed by either of the following:(A) A school district or county office of education as a prekindergarten through grade 12 certificated employee who does not hold a position with a salary above the maximum salary of a school principal for that employer.(B) A community college district.(2) The member has a minimum of 10 years of credited service in the Defined Benefit Program prior to the start of the school term of the first school year of the agreement to reduce the members workload.(3) The member shall have been employed on a full-time basis to perform creditable service under the Defined Benefit Program each year of the five school years immediately preceding the first school year in which the members workload is reduced, without having a break in service. For the purposes of this paragraph:(A) Employer-approved leaves of absence, and unpaid absences from the performance of creditable service for personal reasons from full-time employment do not constitute a break in service.(B) Creditable service that was performed for a school year in which a member reduced their workload pursuant to this section shall be treated as full time, provided that the agreement to reduce the members workload was not terminated during that year pursuant to subdivision (e).(C) The period of time during which a member is retired for service shall constitute a break in service.(4) The member is 55 years of age or older prior to the start of the school term of the first school year of the agreement for which the members workload is reduced.(b) The employer, in conjunction with the system, shall certify the members eligibility for participation in the reduced workload program in accordance with subdivision (a). The employers certification shall be submitted in a format prescribed by the system and shall be received in the systems headquarters office prior to the start of the school term of the first school year of the agreement for which the members workload is reduced.(c) The agreement to reduce the members workload shall be in effect prior to the start of the school term of the first school year of the agreement for which the members workload is reduced, and shall include the following requirements:(1) The total amount of time in which a member reduces their workload pursuant to this section shall not exceed 10 school years.(2) The reduced workload shall be equal to at least one-half of the time the employer requires for full-time employment in that position in accordance with Section 22138.5.(3) The member shall be paid creditable compensation that is the pro rata share of the creditable compensation the member would have been paid for that position had the member not reduced their workload.(4) For each school year the members workload is reduced pursuant to this section, the member shall make contributions to the Teachers Retirement Fund in the amount that the member would have contributed if the member had performed creditable service for that position on a full-time basis and if that service was subject to coverage under the Defined Benefit Program.(5) For each school year the members workload is reduced pursuant to this section, the employer shall contribute to the Teachers Retirement Fund at a rate adopted by the board as a plan amendment with respect to the Defined Benefit Program an amount based upon the creditable compensation that would have been paid to the member if the member had performed creditable service for that position on a full-time basis and if that service was subject to coverage under the Defined Benefit Program.(d) The employer shall maintain the necessary records to separately identify each member who participates in the reduced workload program pursuant to this section.(e) The agreement to reduce a members workload shall be terminated if one of the following actions is taken:(1) The members employment is terminated prior to the end of the school term.(2) The member earns less than one-half of the annualized pay rate as defined in Section 22104.8.(3) The member and the employer mutually agree that the member will perform creditable service without making contributions in accordance with paragraphs (4) and (5) of subdivision (c).(f) Upon termination of the agreement for any of the reasons described in subdivision (e):(1) The employer shall notify the system that the agreement to reduce a members workload has been terminated within 30 days of the agreement being terminated.(2) The members service credit and contributions for that school year in which the agreement is terminated shall be computed in accordance with Section 22701 and Chapters 15 and 16.(3) That school year in which the agreement is terminated shall not be included in the total amount of time in which a member is allowed to reduce their workload pursuant to paragraph (1) of subdivision (c).(4) Any subsequent agreement to reduce a members workload shall meet all of the conditions set forth in this section. | |
| 184 | 187 | ||
| 185 | 188 | SEC. 4. Section 22713 of the Education Code is amended to read: | |
| 186 | 189 | ||
| 187 | 190 | ### SEC. 4. | |
| 188 | 191 | ||
| 189 | 192 | 22713. (a) Notwithstanding any other provision of this chapter, if the governing board of a school district or a community college district, or a county superintendent of schools establishes regulations pursuant to Sections 44922 and 87483, an employer may enter into a written agreement with an employee who is a member of the Defined Benefit Program to reduce their workload in a position from full time to part time, receive the service credit the member would have received if the member had been employed in that position on a full-time basis and have their retirement allowance, as well as other benefits that the member is entitled to under this part, based, in part, on the final compensation the member would have been entitled to if the member had been employed on a full-time basis. The option to reduce the members workload shall be exercised at the request of the member if all of the following conditions are met:(1) The member is employed by either of the following:(A) A school district or county office of education as a prekindergarten through grade 12 certificated employee who does not hold a position with a salary above the maximum salary of a school principal for that employer.(B) A community college district.(2) The member has a minimum of 10 years of credited service in the Defined Benefit Program prior to the start of the school term of the first school year of the agreement to reduce the members workload.(3) The member shall have been employed on a full-time basis to perform creditable service under the Defined Benefit Program each year of the five school years immediately preceding the first school year in which the members workload is reduced, without having a break in service. For the purposes of this paragraph:(A) Employer-approved leaves of absence, and unpaid absences from the performance of creditable service for personal reasons from full-time employment do not constitute a break in service.(B) Creditable service that was performed for a school year in which a member reduced their workload pursuant to this section shall be treated as full time, provided that the agreement to reduce the members workload was not terminated during that year pursuant to subdivision (e).(C) The period of time during which a member is retired for service shall constitute a break in service.(4) The member is 55 years of age or older prior to the start of the school term of the first school year of the agreement for which the members workload is reduced.(b) The employer, in conjunction with the system, shall certify the members eligibility for participation in the reduced workload program in accordance with subdivision (a). The employers certification shall be submitted in a format prescribed by the system and shall be received in the systems headquarters office prior to the start of the school term of the first school year of the agreement for which the members workload is reduced.(c) The agreement to reduce the members workload shall be in effect prior to the start of the school term of the first school year of the agreement for which the members workload is reduced, and shall include the following requirements:(1) The total amount of time in which a member reduces their workload pursuant to this section shall not exceed 10 school years.(2) The reduced workload shall be equal to at least one-half of the time the employer requires for full-time employment in that position in accordance with Section 22138.5.(3) The member shall be paid creditable compensation that is the pro rata share of the creditable compensation the member would have been paid for that position had the member not reduced their workload.(4) For each school year the members workload is reduced pursuant to this section, the member shall make contributions to the Teachers Retirement Fund in the amount that the member would have contributed if the member had performed creditable service for that position on a full-time basis and if that service was subject to coverage under the Defined Benefit Program.(5) For each school year the members workload is reduced pursuant to this section, the employer shall contribute to the Teachers Retirement Fund at a rate adopted by the board as a plan amendment with respect to the Defined Benefit Program an amount based upon the creditable compensation that would have been paid to the member if the member had performed creditable service for that position on a full-time basis and if that service was subject to coverage under the Defined Benefit Program.(d) The employer shall maintain the necessary records to separately identify each member who participates in the reduced workload program pursuant to this section.(e) The agreement to reduce a members workload shall be terminated if one of the following actions is taken:(1) The members employment is terminated prior to the end of the school term.(2) The member earns less than one-half of the annualized pay rate as defined in Section 22104.8.(3) The member and the employer mutually agree that the member will perform creditable service without making contributions in accordance with paragraphs (4) and (5) of subdivision (c).(f) Upon termination of the agreement for any of the reasons described in subdivision (e):(1) The employer shall notify the system that the agreement to reduce a members workload has been terminated within 30 days of the agreement being terminated.(2) The members service credit and contributions for that school year in which the agreement is terminated shall be computed in accordance with Section 22701 and Chapters 15 and 16.(3) That school year in which the agreement is terminated shall not be included in the total amount of time in which a member is allowed to reduce their workload pursuant to paragraph (1) of subdivision (c).(4) Any subsequent agreement to reduce a members workload shall meet all of the conditions set forth in this section. | |
| 190 | 193 | ||
| 191 | 194 | 22713. (a) Notwithstanding any other provision of this chapter, if the governing board of a school district or a community college district, or a county superintendent of schools establishes regulations pursuant to Sections 44922 and 87483, an employer may enter into a written agreement with an employee who is a member of the Defined Benefit Program to reduce their workload in a position from full time to part time, receive the service credit the member would have received if the member had been employed in that position on a full-time basis and have their retirement allowance, as well as other benefits that the member is entitled to under this part, based, in part, on the final compensation the member would have been entitled to if the member had been employed on a full-time basis. The option to reduce the members workload shall be exercised at the request of the member if all of the following conditions are met:(1) The member is employed by either of the following:(A) A school district or county office of education as a prekindergarten through grade 12 certificated employee who does not hold a position with a salary above the maximum salary of a school principal for that employer.(B) A community college district.(2) The member has a minimum of 10 years of credited service in the Defined Benefit Program prior to the start of the school term of the first school year of the agreement to reduce the members workload.(3) The member shall have been employed on a full-time basis to perform creditable service under the Defined Benefit Program each year of the five school years immediately preceding the first school year in which the members workload is reduced, without having a break in service. For the purposes of this paragraph:(A) Employer-approved leaves of absence, and unpaid absences from the performance of creditable service for personal reasons from full-time employment do not constitute a break in service.(B) Creditable service that was performed for a school year in which a member reduced their workload pursuant to this section shall be treated as full time, provided that the agreement to reduce the members workload was not terminated during that year pursuant to subdivision (e).(C) The period of time during which a member is retired for service shall constitute a break in service.(4) The member is 55 years of age or older prior to the start of the school term of the first school year of the agreement for which the members workload is reduced.(b) The employer, in conjunction with the system, shall certify the members eligibility for participation in the reduced workload program in accordance with subdivision (a). The employers certification shall be submitted in a format prescribed by the system and shall be received in the systems headquarters office prior to the start of the school term of the first school year of the agreement for which the members workload is reduced.(c) The agreement to reduce the members workload shall be in effect prior to the start of the school term of the first school year of the agreement for which the members workload is reduced, and shall include the following requirements:(1) The total amount of time in which a member reduces their workload pursuant to this section shall not exceed 10 school years.(2) The reduced workload shall be equal to at least one-half of the time the employer requires for full-time employment in that position in accordance with Section 22138.5.(3) The member shall be paid creditable compensation that is the pro rata share of the creditable compensation the member would have been paid for that position had the member not reduced their workload.(4) For each school year the members workload is reduced pursuant to this section, the member shall make contributions to the Teachers Retirement Fund in the amount that the member would have contributed if the member had performed creditable service for that position on a full-time basis and if that service was subject to coverage under the Defined Benefit Program.(5) For each school year the members workload is reduced pursuant to this section, the employer shall contribute to the Teachers Retirement Fund at a rate adopted by the board as a plan amendment with respect to the Defined Benefit Program an amount based upon the creditable compensation that would have been paid to the member if the member had performed creditable service for that position on a full-time basis and if that service was subject to coverage under the Defined Benefit Program.(d) The employer shall maintain the necessary records to separately identify each member who participates in the reduced workload program pursuant to this section.(e) The agreement to reduce a members workload shall be terminated if one of the following actions is taken:(1) The members employment is terminated prior to the end of the school term.(2) The member earns less than one-half of the annualized pay rate as defined in Section 22104.8.(3) The member and the employer mutually agree that the member will perform creditable service without making contributions in accordance with paragraphs (4) and (5) of subdivision (c).(f) Upon termination of the agreement for any of the reasons described in subdivision (e):(1) The employer shall notify the system that the agreement to reduce a members workload has been terminated within 30 days of the agreement being terminated.(2) The members service credit and contributions for that school year in which the agreement is terminated shall be computed in accordance with Section 22701 and Chapters 15 and 16.(3) That school year in which the agreement is terminated shall not be included in the total amount of time in which a member is allowed to reduce their workload pursuant to paragraph (1) of subdivision (c).(4) Any subsequent agreement to reduce a members workload shall meet all of the conditions set forth in this section. | |
| 192 | 195 | ||
| 193 | 196 | 22713. (a) Notwithstanding any other provision of this chapter, if the governing board of a school district or a community college district, or a county superintendent of schools establishes regulations pursuant to Sections 44922 and 87483, an employer may enter into a written agreement with an employee who is a member of the Defined Benefit Program to reduce their workload in a position from full time to part time, receive the service credit the member would have received if the member had been employed in that position on a full-time basis and have their retirement allowance, as well as other benefits that the member is entitled to under this part, based, in part, on the final compensation the member would have been entitled to if the member had been employed on a full-time basis. The option to reduce the members workload shall be exercised at the request of the member if all of the following conditions are met:(1) The member is employed by either of the following:(A) A school district or county office of education as a prekindergarten through grade 12 certificated employee who does not hold a position with a salary above the maximum salary of a school principal for that employer.(B) A community college district.(2) The member has a minimum of 10 years of credited service in the Defined Benefit Program prior to the start of the school term of the first school year of the agreement to reduce the members workload.(3) The member shall have been employed on a full-time basis to perform creditable service under the Defined Benefit Program each year of the five school years immediately preceding the first school year in which the members workload is reduced, without having a break in service. For the purposes of this paragraph:(A) Employer-approved leaves of absence, and unpaid absences from the performance of creditable service for personal reasons from full-time employment do not constitute a break in service.(B) Creditable service that was performed for a school year in which a member reduced their workload pursuant to this section shall be treated as full time, provided that the agreement to reduce the members workload was not terminated during that year pursuant to subdivision (e).(C) The period of time during which a member is retired for service shall constitute a break in service.(4) The member is 55 years of age or older prior to the start of the school term of the first school year of the agreement for which the members workload is reduced.(b) The employer, in conjunction with the system, shall certify the members eligibility for participation in the reduced workload program in accordance with subdivision (a). The employers certification shall be submitted in a format prescribed by the system and shall be received in the systems headquarters office prior to the start of the school term of the first school year of the agreement for which the members workload is reduced.(c) The agreement to reduce the members workload shall be in effect prior to the start of the school term of the first school year of the agreement for which the members workload is reduced, and shall include the following requirements:(1) The total amount of time in which a member reduces their workload pursuant to this section shall not exceed 10 school years.(2) The reduced workload shall be equal to at least one-half of the time the employer requires for full-time employment in that position in accordance with Section 22138.5.(3) The member shall be paid creditable compensation that is the pro rata share of the creditable compensation the member would have been paid for that position had the member not reduced their workload.(4) For each school year the members workload is reduced pursuant to this section, the member shall make contributions to the Teachers Retirement Fund in the amount that the member would have contributed if the member had performed creditable service for that position on a full-time basis and if that service was subject to coverage under the Defined Benefit Program.(5) For each school year the members workload is reduced pursuant to this section, the employer shall contribute to the Teachers Retirement Fund at a rate adopted by the board as a plan amendment with respect to the Defined Benefit Program an amount based upon the creditable compensation that would have been paid to the member if the member had performed creditable service for that position on a full-time basis and if that service was subject to coverage under the Defined Benefit Program.(d) The employer shall maintain the necessary records to separately identify each member who participates in the reduced workload program pursuant to this section.(e) The agreement to reduce a members workload shall be terminated if one of the following actions is taken:(1) The members employment is terminated prior to the end of the school term.(2) The member earns less than one-half of the annualized pay rate as defined in Section 22104.8.(3) The member and the employer mutually agree that the member will perform creditable service without making contributions in accordance with paragraphs (4) and (5) of subdivision (c).(f) Upon termination of the agreement for any of the reasons described in subdivision (e):(1) The employer shall notify the system that the agreement to reduce a members workload has been terminated within 30 days of the agreement being terminated.(2) The members service credit and contributions for that school year in which the agreement is terminated shall be computed in accordance with Section 22701 and Chapters 15 and 16.(3) That school year in which the agreement is terminated shall not be included in the total amount of time in which a member is allowed to reduce their workload pursuant to paragraph (1) of subdivision (c).(4) Any subsequent agreement to reduce a members workload shall meet all of the conditions set forth in this section. | |
| 194 | 197 | ||
| 198 | + | ||
| 199 | + | ||
| 195 | 200 | 22713. (a) Notwithstanding any other provision of this chapter, if the governing board of a school district or a community college district, or a county superintendent of schools establishes regulations pursuant to Sections 44922 and 87483, an employer may enter into a written agreement with an employee who is a member of the Defined Benefit Program to reduce their workload in a position from full time to part time, receive the service credit the member would have received if the member had been employed in that position on a full-time basis and have their retirement allowance, as well as other benefits that the member is entitled to under this part, based, in part, on the final compensation the member would have been entitled to if the member had been employed on a full-time basis. The option to reduce the members workload shall be exercised at the request of the member if all of the following conditions are met: | |
| 196 | - | ||
| 197 | - | ###### 22713. | |
| 198 | 201 | ||
| 199 | 202 | (1) The member is employed by either of the following: | |
| 200 | 203 | ||
| 201 | 204 | (A) A school district or county office of education as a prekindergarten through grade 12 certificated employee who does not hold a position with a salary above the maximum salary of a school principal for that employer. | |
| 202 | 205 | ||
| 203 | 206 | (B) A community college district. | |
| 204 | 207 | ||
| 205 | 208 | (2) The member has a minimum of 10 years of credited service in the Defined Benefit Program prior to the start of the school term of the first school year of the agreement to reduce the members workload. | |
| 206 | 209 | ||
| 207 | 210 | (3) The member shall have been employed on a full-time basis to perform creditable service under the Defined Benefit Program each year of the five school years immediately preceding the first school year in which the members workload is reduced, without having a break in service. For the purposes of this paragraph: | |
| 208 | 211 | ||
| 209 | 212 | (A) Employer-approved leaves of absence, and unpaid absences from the performance of creditable service for personal reasons from full-time employment do not constitute a break in service. | |
| 210 | 213 | ||
| 211 | 214 | (B) Creditable service that was performed for a school year in which a member reduced their workload pursuant to this section shall be treated as full time, provided that the agreement to reduce the members workload was not terminated during that year pursuant to subdivision (e). | |
| 212 | 215 | ||
| 213 | 216 | (C) The period of time during which a member is retired for service shall constitute a break in service. | |
| 214 | 217 | ||
| 215 | 218 | (4) The member is 55 years of age or older prior to the start of the school term of the first school year of the agreement for which the members workload is reduced. | |
| 216 | 219 | ||
| 217 | 220 | (b) The employer, in conjunction with the system, shall certify the members eligibility for participation in the reduced workload program in accordance with subdivision (a). The employers certification shall be submitted in a format prescribed by the system and shall be received in the systems headquarters office prior to the start of the school term of the first school year of the agreement for which the members workload is reduced. | |
| 218 | 221 | ||
| 219 | 222 | (c) The agreement to reduce the members workload shall be in effect prior to the start of the school term of the first school year of the agreement for which the members workload is reduced, and shall include the following requirements: | |
| 220 | 223 | ||
| 221 | 224 | (1) The total amount of time in which a member reduces their workload pursuant to this section shall not exceed 10 school years. | |
| 222 | 225 | ||
| 223 | 226 | (2) The reduced workload shall be equal to at least one-half of the time the employer requires for full-time employment in that position in accordance with Section 22138.5. | |
| 224 | 227 | ||
| 225 | 228 | (3) The member shall be paid creditable compensation that is the pro rata share of the creditable compensation the member would have been paid for that position had the member not reduced their workload. | |
| 226 | 229 | ||
| 227 | 230 | (4) For each school year the members workload is reduced pursuant to this section, the member shall make contributions to the Teachers Retirement Fund in the amount that the member would have contributed if the member had performed creditable service for that position on a full-time basis and if that service was subject to coverage under the Defined Benefit Program. | |
| 228 | 231 | ||
| 229 | 232 | (5) For each school year the members workload is reduced pursuant to this section, the employer shall contribute to the Teachers Retirement Fund at a rate adopted by the board as a plan amendment with respect to the Defined Benefit Program an amount based upon the creditable compensation that would have been paid to the member if the member had performed creditable service for that position on a full-time basis and if that service was subject to coverage under the Defined Benefit Program. | |
| 230 | 233 | ||
| 231 | 234 | (d) The employer shall maintain the necessary records to separately identify each member who participates in the reduced workload program pursuant to this section. | |
| 232 | 235 | ||
| 233 | 236 | (e) The agreement to reduce a members workload shall be terminated if one of the following actions is taken: | |
| 234 | 237 | ||
| 235 | 238 | (1) The members employment is terminated prior to the end of the school term. | |
| 236 | 239 | ||
| 237 | 240 | (2) The member earns less than one-half of the annualized pay rate as defined in Section 22104.8. | |
| 238 | 241 | ||
| 239 | 242 | (3) The member and the employer mutually agree that the member will perform creditable service without making contributions in accordance with paragraphs (4) and (5) of subdivision (c). | |
| 240 | 243 | ||
| 241 | 244 | (f) Upon termination of the agreement for any of the reasons described in subdivision (e): | |
| 242 | 245 | ||
| 243 | 246 | (1) The employer shall notify the system that the agreement to reduce a members workload has been terminated within 30 days of the agreement being terminated. | |
| 244 | 247 | ||
| 245 | 248 | (2) The members service credit and contributions for that school year in which the agreement is terminated shall be computed in accordance with Section 22701 and Chapters 15 and 16. | |
| 246 | 249 | ||
| 247 | 250 | (3) That school year in which the agreement is terminated shall not be included in the total amount of time in which a member is allowed to reduce their workload pursuant to paragraph (1) of subdivision (c). | |
| 248 | 251 | ||
| 249 | 252 | (4) Any subsequent agreement to reduce a members workload shall meet all of the conditions set forth in this section. | |
| 250 | 253 | ||
| 251 | 254 | SEC. 5. Section 22954 of the Education Code is amended to read:22954. (a) Notwithstanding Section 13340 of the Government Code, a continuous appropriation is hereby annually made from the General Fund to the Controller, pursuant to this section, for transfer to the Supplemental Benefit Maintenance Account in the Teachers Retirement Fund.(b) Except as reduced pursuant to subdivision (c), the total amount of the appropriation for each year shall be equal to 2.5 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based for purposes of funding the supplemental payments authorized by Section 24415, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5.(c) Beginning with the 200809 fiscal year, the appropriation in subdivision (b) shall be reduced in accordance with the following schedule:200809 ........................ $66,386,000200910 ........................ $70,000,000201011 ........................ $71,000,000201112 and each fiscal year thereafter ........................ $72,000,000(d) Transfers made to the Supplemental Benefit Maintenance Account, pursuant to subdivision (a), shall be made on October 15 and April 15 of each fiscal year with each payment to be 50 percent of the annual appropriation. If either date falls on a weekend or holiday, the funds shall be transferred the next business day.(e) Notwithstanding subdivision (d), for the 201011 fiscal year only, the transfer that would have been made pursuant to subdivision (d) on October 15, 2010, shall be made on November 15, 2010, and the transfer that would have been made pursuant to subdivision (d) on April 15, 2011, shall be made on March 14, 2011.(f) The board may deduct from the annual appropriation made pursuant to this section an amount necessary for the administrative expenses of Section 24415.(g) It is the intent of the Legislature in enacting this section to establish the supplemental payments pursuant to Section 24415 as vested benefits pursuant to a contractually enforceable promise to make annual contributions from the General Fund to the Supplemental Benefit Maintenance Account in the Teachers Retirement Fund in order to provide a continuous annual source of revenue for the purposes of making the supplemental payments under Section 24415. | |
| 252 | 255 | ||
| 253 | 256 | SEC. 5. Section 22954 of the Education Code is amended to read: | |
| 254 | 257 | ||
| 255 | 258 | ### SEC. 5. | |
| 256 | 259 | ||
| 257 | 260 | 22954. (a) Notwithstanding Section 13340 of the Government Code, a continuous appropriation is hereby annually made from the General Fund to the Controller, pursuant to this section, for transfer to the Supplemental Benefit Maintenance Account in the Teachers Retirement Fund.(b) Except as reduced pursuant to subdivision (c), the total amount of the appropriation for each year shall be equal to 2.5 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based for purposes of funding the supplemental payments authorized by Section 24415, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5.(c) Beginning with the 200809 fiscal year, the appropriation in subdivision (b) shall be reduced in accordance with the following schedule:200809 ........................ $66,386,000200910 ........................ $70,000,000201011 ........................ $71,000,000201112 and each fiscal year thereafter ........................ $72,000,000(d) Transfers made to the Supplemental Benefit Maintenance Account, pursuant to subdivision (a), shall be made on October 15 and April 15 of each fiscal year with each payment to be 50 percent of the annual appropriation. If either date falls on a weekend or holiday, the funds shall be transferred the next business day.(e) Notwithstanding subdivision (d), for the 201011 fiscal year only, the transfer that would have been made pursuant to subdivision (d) on October 15, 2010, shall be made on November 15, 2010, and the transfer that would have been made pursuant to subdivision (d) on April 15, 2011, shall be made on March 14, 2011.(f) The board may deduct from the annual appropriation made pursuant to this section an amount necessary for the administrative expenses of Section 24415.(g) It is the intent of the Legislature in enacting this section to establish the supplemental payments pursuant to Section 24415 as vested benefits pursuant to a contractually enforceable promise to make annual contributions from the General Fund to the Supplemental Benefit Maintenance Account in the Teachers Retirement Fund in order to provide a continuous annual source of revenue for the purposes of making the supplemental payments under Section 24415. | |
| 258 | 261 | ||
| 259 | 262 | 22954. (a) Notwithstanding Section 13340 of the Government Code, a continuous appropriation is hereby annually made from the General Fund to the Controller, pursuant to this section, for transfer to the Supplemental Benefit Maintenance Account in the Teachers Retirement Fund.(b) Except as reduced pursuant to subdivision (c), the total amount of the appropriation for each year shall be equal to 2.5 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based for purposes of funding the supplemental payments authorized by Section 24415, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5.(c) Beginning with the 200809 fiscal year, the appropriation in subdivision (b) shall be reduced in accordance with the following schedule:200809 ........................ $66,386,000200910 ........................ $70,000,000201011 ........................ $71,000,000201112 and each fiscal year thereafter ........................ $72,000,000(d) Transfers made to the Supplemental Benefit Maintenance Account, pursuant to subdivision (a), shall be made on October 15 and April 15 of each fiscal year with each payment to be 50 percent of the annual appropriation. If either date falls on a weekend or holiday, the funds shall be transferred the next business day.(e) Notwithstanding subdivision (d), for the 201011 fiscal year only, the transfer that would have been made pursuant to subdivision (d) on October 15, 2010, shall be made on November 15, 2010, and the transfer that would have been made pursuant to subdivision (d) on April 15, 2011, shall be made on March 14, 2011.(f) The board may deduct from the annual appropriation made pursuant to this section an amount necessary for the administrative expenses of Section 24415.(g) It is the intent of the Legislature in enacting this section to establish the supplemental payments pursuant to Section 24415 as vested benefits pursuant to a contractually enforceable promise to make annual contributions from the General Fund to the Supplemental Benefit Maintenance Account in the Teachers Retirement Fund in order to provide a continuous annual source of revenue for the purposes of making the supplemental payments under Section 24415. | |
| 260 | 263 | ||
| 261 | 264 | 22954. (a) Notwithstanding Section 13340 of the Government Code, a continuous appropriation is hereby annually made from the General Fund to the Controller, pursuant to this section, for transfer to the Supplemental Benefit Maintenance Account in the Teachers Retirement Fund.(b) Except as reduced pursuant to subdivision (c), the total amount of the appropriation for each year shall be equal to 2.5 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based for purposes of funding the supplemental payments authorized by Section 24415, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5.(c) Beginning with the 200809 fiscal year, the appropriation in subdivision (b) shall be reduced in accordance with the following schedule:200809 ........................ $66,386,000200910 ........................ $70,000,000201011 ........................ $71,000,000201112 and each fiscal year thereafter ........................ $72,000,000(d) Transfers made to the Supplemental Benefit Maintenance Account, pursuant to subdivision (a), shall be made on October 15 and April 15 of each fiscal year with each payment to be 50 percent of the annual appropriation. If either date falls on a weekend or holiday, the funds shall be transferred the next business day.(e) Notwithstanding subdivision (d), for the 201011 fiscal year only, the transfer that would have been made pursuant to subdivision (d) on October 15, 2010, shall be made on November 15, 2010, and the transfer that would have been made pursuant to subdivision (d) on April 15, 2011, shall be made on March 14, 2011.(f) The board may deduct from the annual appropriation made pursuant to this section an amount necessary for the administrative expenses of Section 24415.(g) It is the intent of the Legislature in enacting this section to establish the supplemental payments pursuant to Section 24415 as vested benefits pursuant to a contractually enforceable promise to make annual contributions from the General Fund to the Supplemental Benefit Maintenance Account in the Teachers Retirement Fund in order to provide a continuous annual source of revenue for the purposes of making the supplemental payments under Section 24415. | |
| 262 | 265 | ||
| 266 | + | ||
| 267 | + | ||
| 263 | 268 | 22954. (a) Notwithstanding Section 13340 of the Government Code, a continuous appropriation is hereby annually made from the General Fund to the Controller, pursuant to this section, for transfer to the Supplemental Benefit Maintenance Account in the Teachers Retirement Fund. | |
| 264 | - | ||
| 265 | - | ###### 22954. | |
| 266 | 269 | ||
| 267 | 270 | (b) Except as reduced pursuant to subdivision (c), the total amount of the appropriation for each year shall be equal to 2.5 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based for purposes of funding the supplemental payments authorized by Section 24415, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5. | |
| 268 | 271 | ||
| 269 | 272 | (c) Beginning with the 200809 fiscal year, the appropriation in subdivision (b) shall be reduced in accordance with the following schedule: | |
| 270 | 273 | ||
| 271 | 274 | 200809 ........................ $66,386,000 | |
| 272 | 275 | 200910 ........................ $70,000,000 | |
| 273 | 276 | 201011 ........................ $71,000,000 | |
| 274 | 277 | 201112 and each fiscal year thereafter ........................ $72,000,000 | |
| 275 | - | ||
| 276 | - | ||
| 277 | 278 | ||
| 278 | 279 | (d) Transfers made to the Supplemental Benefit Maintenance Account, pursuant to subdivision (a), shall be made on October 15 and April 15 of each fiscal year with each payment to be 50 percent of the annual appropriation. If either date falls on a weekend or holiday, the funds shall be transferred the next business day. | |
| 279 | 280 | ||
| 280 | 281 | (e) Notwithstanding subdivision (d), for the 201011 fiscal year only, the transfer that would have been made pursuant to subdivision (d) on October 15, 2010, shall be made on November 15, 2010, and the transfer that would have been made pursuant to subdivision (d) on April 15, 2011, shall be made on March 14, 2011. | |
| 281 | 282 | ||
| 282 | 283 | (f) The board may deduct from the annual appropriation made pursuant to this section an amount necessary for the administrative expenses of Section 24415. | |
| 283 | 284 | ||
| 284 | 285 | (g) It is the intent of the Legislature in enacting this section to establish the supplemental payments pursuant to Section 24415 as vested benefits pursuant to a contractually enforceable promise to make annual contributions from the General Fund to the Supplemental Benefit Maintenance Account in the Teachers Retirement Fund in order to provide a continuous annual source of revenue for the purposes of making the supplemental payments under Section 24415. | |
| 285 | 286 | ||
| 286 | 287 | SEC. 6. Section 22955 of the Education Code is amended to read:22955. (a) Notwithstanding Section 13340 of the Government Code, commencing July 1, 2003, a continuous appropriation is hereby annually made from the General Fund to the Controller, pursuant to this section, for transfer to the Teachers Retirement Fund. The total amount of the appropriation for each year shall be equal to 2.017 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5, and shall be divided into four equal payments. The payments shall be made on July 1, October 1, December 15, and April 15 of each fiscal year. If any of these dates fall on a weekend or holiday, the funds shall be transferred the next business day.(b) Notwithstanding Section 13340 of the Government Code, commencing October 1, 2003, a continuous appropriation, in addition to the appropriation made by subdivision (a), is hereby annually made from the General Fund to the Controller for transfer to the Teachers Retirement Fund. The total amount of the appropriation for each year shall be equal to 0.524 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5, and shall be divided into four equal quarterly payments. The percentage shall be adjusted to reflect the contribution required to fund the normal cost deficit or the unfunded obligation as determined by the board based upon a recommendation from its actuary. If a rate increase is required, the adjustment may be for no more than 0.25 percent per year and in no case may the transfer made pursuant to this subdivision exceed 1.505 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based. At any time when there is neither an unfunded obligation nor a normal cost deficit, the percentage shall be reduced to zero. The funds transferred pursuant to this subdivision shall first be applied to eliminating on or before June 30, 2027, the unfunded actuarial liability of the fund identified in the actuarial valuation as of June 30, 1997.(c) For the purposes of this section, the term normal cost deficit means the difference between the normal cost rate as determined in the actuarial valuation required by Section 22311 and the total of the member contribution rate required under Section 22901 and the employer contribution rate required under Section 22950, and shall exclude (1) the portion for unused sick leave service credit granted pursuant to Section 22717, and (2) the cost of benefit increases that occur after July 1, 1990. The contribution rates prescribed in Section 22901 and Section 22950 on July 1, 1990, shall be utilized to make the calculations. The normal cost deficit shall then be multiplied by the total of the creditable compensation upon which member contributions under this part are based to determine the dollar amount of the normal cost deficit for the year.(d) Pursuant to Section 22001 and case law, members are entitled to a financially sound retirement system. It is the intent of the Legislature that this section shall provide the retirement fund stable and full funding over the long term.(e) This section continues in effect but in a somewhat different form, fully performs, and does not in any way unreasonably impair, the contractual obligations determined by the court in California Teachers Association v. Cory, 155 Cal.App.3d 494.(f) Subdivision (b) shall not be construed to be applicable to any unfunded liability resulting from any benefit increase or change in contribution rate under this part that occurs after July 1, 1990.(g) The provisions of this section shall be construed and implemented to be in conformity with the judicial intent expressed by the court in California Teachers Association v. Cory, 155 Cal.App.3d 494.(h) Subdivisions (a) through (g), inclusive, shall be inoperative on and after July 1, 2014, and shall become operative beginning the earlier of July 1, 2046, or July 1 of the first fiscal year after a 30-day notice has been sent to the Joint Legislative Budget Committee and the Controller in compliance with subdivision (d) of Section 22957. | |
| 287 | 288 | ||
| 288 | 289 | SEC. 6. Section 22955 of the Education Code is amended to read: | |
| 289 | 290 | ||
| 290 | 291 | ### SEC. 6. | |
| 291 | 292 | ||
| 292 | 293 | 22955. (a) Notwithstanding Section 13340 of the Government Code, commencing July 1, 2003, a continuous appropriation is hereby annually made from the General Fund to the Controller, pursuant to this section, for transfer to the Teachers Retirement Fund. The total amount of the appropriation for each year shall be equal to 2.017 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5, and shall be divided into four equal payments. The payments shall be made on July 1, October 1, December 15, and April 15 of each fiscal year. If any of these dates fall on a weekend or holiday, the funds shall be transferred the next business day.(b) Notwithstanding Section 13340 of the Government Code, commencing October 1, 2003, a continuous appropriation, in addition to the appropriation made by subdivision (a), is hereby annually made from the General Fund to the Controller for transfer to the Teachers Retirement Fund. The total amount of the appropriation for each year shall be equal to 0.524 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5, and shall be divided into four equal quarterly payments. The percentage shall be adjusted to reflect the contribution required to fund the normal cost deficit or the unfunded obligation as determined by the board based upon a recommendation from its actuary. If a rate increase is required, the adjustment may be for no more than 0.25 percent per year and in no case may the transfer made pursuant to this subdivision exceed 1.505 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based. At any time when there is neither an unfunded obligation nor a normal cost deficit, the percentage shall be reduced to zero. The funds transferred pursuant to this subdivision shall first be applied to eliminating on or before June 30, 2027, the unfunded actuarial liability of the fund identified in the actuarial valuation as of June 30, 1997.(c) For the purposes of this section, the term normal cost deficit means the difference between the normal cost rate as determined in the actuarial valuation required by Section 22311 and the total of the member contribution rate required under Section 22901 and the employer contribution rate required under Section 22950, and shall exclude (1) the portion for unused sick leave service credit granted pursuant to Section 22717, and (2) the cost of benefit increases that occur after July 1, 1990. The contribution rates prescribed in Section 22901 and Section 22950 on July 1, 1990, shall be utilized to make the calculations. The normal cost deficit shall then be multiplied by the total of the creditable compensation upon which member contributions under this part are based to determine the dollar amount of the normal cost deficit for the year.(d) Pursuant to Section 22001 and case law, members are entitled to a financially sound retirement system. It is the intent of the Legislature that this section shall provide the retirement fund stable and full funding over the long term.(e) This section continues in effect but in a somewhat different form, fully performs, and does not in any way unreasonably impair, the contractual obligations determined by the court in California Teachers Association v. Cory, 155 Cal.App.3d 494.(f) Subdivision (b) shall not be construed to be applicable to any unfunded liability resulting from any benefit increase or change in contribution rate under this part that occurs after July 1, 1990.(g) The provisions of this section shall be construed and implemented to be in conformity with the judicial intent expressed by the court in California Teachers Association v. Cory, 155 Cal.App.3d 494.(h) Subdivisions (a) through (g), inclusive, shall be inoperative on and after July 1, 2014, and shall become operative beginning the earlier of July 1, 2046, or July 1 of the first fiscal year after a 30-day notice has been sent to the Joint Legislative Budget Committee and the Controller in compliance with subdivision (d) of Section 22957. | |
| 293 | 294 | ||
| 294 | 295 | 22955. (a) Notwithstanding Section 13340 of the Government Code, commencing July 1, 2003, a continuous appropriation is hereby annually made from the General Fund to the Controller, pursuant to this section, for transfer to the Teachers Retirement Fund. The total amount of the appropriation for each year shall be equal to 2.017 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5, and shall be divided into four equal payments. The payments shall be made on July 1, October 1, December 15, and April 15 of each fiscal year. If any of these dates fall on a weekend or holiday, the funds shall be transferred the next business day.(b) Notwithstanding Section 13340 of the Government Code, commencing October 1, 2003, a continuous appropriation, in addition to the appropriation made by subdivision (a), is hereby annually made from the General Fund to the Controller for transfer to the Teachers Retirement Fund. The total amount of the appropriation for each year shall be equal to 0.524 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5, and shall be divided into four equal quarterly payments. The percentage shall be adjusted to reflect the contribution required to fund the normal cost deficit or the unfunded obligation as determined by the board based upon a recommendation from its actuary. If a rate increase is required, the adjustment may be for no more than 0.25 percent per year and in no case may the transfer made pursuant to this subdivision exceed 1.505 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based. At any time when there is neither an unfunded obligation nor a normal cost deficit, the percentage shall be reduced to zero. The funds transferred pursuant to this subdivision shall first be applied to eliminating on or before June 30, 2027, the unfunded actuarial liability of the fund identified in the actuarial valuation as of June 30, 1997.(c) For the purposes of this section, the term normal cost deficit means the difference between the normal cost rate as determined in the actuarial valuation required by Section 22311 and the total of the member contribution rate required under Section 22901 and the employer contribution rate required under Section 22950, and shall exclude (1) the portion for unused sick leave service credit granted pursuant to Section 22717, and (2) the cost of benefit increases that occur after July 1, 1990. The contribution rates prescribed in Section 22901 and Section 22950 on July 1, 1990, shall be utilized to make the calculations. The normal cost deficit shall then be multiplied by the total of the creditable compensation upon which member contributions under this part are based to determine the dollar amount of the normal cost deficit for the year.(d) Pursuant to Section 22001 and case law, members are entitled to a financially sound retirement system. It is the intent of the Legislature that this section shall provide the retirement fund stable and full funding over the long term.(e) This section continues in effect but in a somewhat different form, fully performs, and does not in any way unreasonably impair, the contractual obligations determined by the court in California Teachers Association v. Cory, 155 Cal.App.3d 494.(f) Subdivision (b) shall not be construed to be applicable to any unfunded liability resulting from any benefit increase or change in contribution rate under this part that occurs after July 1, 1990.(g) The provisions of this section shall be construed and implemented to be in conformity with the judicial intent expressed by the court in California Teachers Association v. Cory, 155 Cal.App.3d 494.(h) Subdivisions (a) through (g), inclusive, shall be inoperative on and after July 1, 2014, and shall become operative beginning the earlier of July 1, 2046, or July 1 of the first fiscal year after a 30-day notice has been sent to the Joint Legislative Budget Committee and the Controller in compliance with subdivision (d) of Section 22957. | |
| 295 | 296 | ||
| 296 | 297 | 22955. (a) Notwithstanding Section 13340 of the Government Code, commencing July 1, 2003, a continuous appropriation is hereby annually made from the General Fund to the Controller, pursuant to this section, for transfer to the Teachers Retirement Fund. The total amount of the appropriation for each year shall be equal to 2.017 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5, and shall be divided into four equal payments. The payments shall be made on July 1, October 1, December 15, and April 15 of each fiscal year. If any of these dates fall on a weekend or holiday, the funds shall be transferred the next business day.(b) Notwithstanding Section 13340 of the Government Code, commencing October 1, 2003, a continuous appropriation, in addition to the appropriation made by subdivision (a), is hereby annually made from the General Fund to the Controller for transfer to the Teachers Retirement Fund. The total amount of the appropriation for each year shall be equal to 0.524 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5, and shall be divided into four equal quarterly payments. The percentage shall be adjusted to reflect the contribution required to fund the normal cost deficit or the unfunded obligation as determined by the board based upon a recommendation from its actuary. If a rate increase is required, the adjustment may be for no more than 0.25 percent per year and in no case may the transfer made pursuant to this subdivision exceed 1.505 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based. At any time when there is neither an unfunded obligation nor a normal cost deficit, the percentage shall be reduced to zero. The funds transferred pursuant to this subdivision shall first be applied to eliminating on or before June 30, 2027, the unfunded actuarial liability of the fund identified in the actuarial valuation as of June 30, 1997.(c) For the purposes of this section, the term normal cost deficit means the difference between the normal cost rate as determined in the actuarial valuation required by Section 22311 and the total of the member contribution rate required under Section 22901 and the employer contribution rate required under Section 22950, and shall exclude (1) the portion for unused sick leave service credit granted pursuant to Section 22717, and (2) the cost of benefit increases that occur after July 1, 1990. The contribution rates prescribed in Section 22901 and Section 22950 on July 1, 1990, shall be utilized to make the calculations. The normal cost deficit shall then be multiplied by the total of the creditable compensation upon which member contributions under this part are based to determine the dollar amount of the normal cost deficit for the year.(d) Pursuant to Section 22001 and case law, members are entitled to a financially sound retirement system. It is the intent of the Legislature that this section shall provide the retirement fund stable and full funding over the long term.(e) This section continues in effect but in a somewhat different form, fully performs, and does not in any way unreasonably impair, the contractual obligations determined by the court in California Teachers Association v. Cory, 155 Cal.App.3d 494.(f) Subdivision (b) shall not be construed to be applicable to any unfunded liability resulting from any benefit increase or change in contribution rate under this part that occurs after July 1, 1990.(g) The provisions of this section shall be construed and implemented to be in conformity with the judicial intent expressed by the court in California Teachers Association v. Cory, 155 Cal.App.3d 494.(h) Subdivisions (a) through (g), inclusive, shall be inoperative on and after July 1, 2014, and shall become operative beginning the earlier of July 1, 2046, or July 1 of the first fiscal year after a 30-day notice has been sent to the Joint Legislative Budget Committee and the Controller in compliance with subdivision (d) of Section 22957. | |
| 297 | 298 | ||
| 299 | + | ||
| 300 | + | ||
| 298 | 301 | 22955. (a) Notwithstanding Section 13340 of the Government Code, commencing July 1, 2003, a continuous appropriation is hereby annually made from the General Fund to the Controller, pursuant to this section, for transfer to the Teachers Retirement Fund. The total amount of the appropriation for each year shall be equal to 2.017 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5, and shall be divided into four equal payments. The payments shall be made on July 1, October 1, December 15, and April 15 of each fiscal year. If any of these dates fall on a weekend or holiday, the funds shall be transferred the next business day. | |
| 299 | - | ||
| 300 | - | ###### 22955. | |
| 301 | 302 | ||
| 302 | 303 | (b) Notwithstanding Section 13340 of the Government Code, commencing October 1, 2003, a continuous appropriation, in addition to the appropriation made by subdivision (a), is hereby annually made from the General Fund to the Controller for transfer to the Teachers Retirement Fund. The total amount of the appropriation for each year shall be equal to 0.524 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5, and shall be divided into four equal quarterly payments. The percentage shall be adjusted to reflect the contribution required to fund the normal cost deficit or the unfunded obligation as determined by the board based upon a recommendation from its actuary. If a rate increase is required, the adjustment may be for no more than 0.25 percent per year and in no case may the transfer made pursuant to this subdivision exceed 1.505 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based. At any time when there is neither an unfunded obligation nor a normal cost deficit, the percentage shall be reduced to zero. The funds transferred pursuant to this subdivision shall first be applied to eliminating on or before June 30, 2027, the unfunded actuarial liability of the fund identified in the actuarial valuation as of June 30, 1997. | |
| 303 | 304 | ||
| 304 | 305 | (c) For the purposes of this section, the term normal cost deficit means the difference between the normal cost rate as determined in the actuarial valuation required by Section 22311 and the total of the member contribution rate required under Section 22901 and the employer contribution rate required under Section 22950, and shall exclude (1) the portion for unused sick leave service credit granted pursuant to Section 22717, and (2) the cost of benefit increases that occur after July 1, 1990. The contribution rates prescribed in Section 22901 and Section 22950 on July 1, 1990, shall be utilized to make the calculations. The normal cost deficit shall then be multiplied by the total of the creditable compensation upon which member contributions under this part are based to determine the dollar amount of the normal cost deficit for the year. | |
| 305 | 306 | ||
| 306 | 307 | (d) Pursuant to Section 22001 and case law, members are entitled to a financially sound retirement system. It is the intent of the Legislature that this section shall provide the retirement fund stable and full funding over the long term. | |
| 307 | 308 | ||
| 308 | 309 | (e) This section continues in effect but in a somewhat different form, fully performs, and does not in any way unreasonably impair, the contractual obligations determined by the court in California Teachers Association v. Cory, 155 Cal.App.3d 494. | |
| 309 | 310 | ||
| 310 | 311 | (f) Subdivision (b) shall not be construed to be applicable to any unfunded liability resulting from any benefit increase or change in contribution rate under this part that occurs after July 1, 1990. | |
| 311 | 312 | ||
| 312 | 313 | (g) The provisions of this section shall be construed and implemented to be in conformity with the judicial intent expressed by the court in California Teachers Association v. Cory, 155 Cal.App.3d 494. | |
| 313 | 314 | ||
| 314 | 315 | (h) Subdivisions (a) through (g), inclusive, shall be inoperative on and after July 1, 2014, and shall become operative beginning the earlier of July 1, 2046, or July 1 of the first fiscal year after a 30-day notice has been sent to the Joint Legislative Budget Committee and the Controller in compliance with subdivision (d) of Section 22957. | |
| 315 | 316 | ||
| 316 | 317 | SEC. 7. Section 22955.1 of the Education Code is amended to read:22955.1. (a) Notwithstanding Section 13340 of the Government Code, commencing July 1, 2003, a continuous appropriation is hereby annually made from the General Fund to the Controller, pursuant to this section, for transfer to the Teachers Retirement Fund. The total amount of the appropriation for each year shall be equal to 2.017 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5, and shall be divided into four equal payments. The payments shall be made on July 1, October 1, December 15, and April 15 of each fiscal year. If any of these dates fall on a weekend or holiday, the funds shall be transferred the next business day.(b) (1) Commencing July 1, 2014, the amount of the appropriation required under subdivision (a) shall increase by the following percentages of the creditable compensation upon which that appropriation is based:(A) On July 1, 2014, by 1.437 percent.(B) On July 1, 2015, by 2.874 percent.(C) On July 1, 2016, by 4.311 percent.(2) Except as provided in paragraph (3), for the 201718 fiscal year and each fiscal year thereafter, the board shall increase or decrease the percentage specified in this subdivision from the percentage paid during the prior fiscal year to reflect the contribution required to eliminate the remaining unfunded actuarial obligation, as determined by the board based upon a recommendation from its actuary. If a rate increase is required, the adjustment may be for no more than 0.50 percent per year of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based. At any time when there is not an unfunded actuarial obligation as determined by the board, the percentage specified in this subdivision shall be reduced to zero.(3) For the 202021 fiscal year, the percentage specified in this subdivision shall be the percentage set by the board pursuant to paragraph (2) for the 201920 fiscal year, and the board shall not increase or decrease the percentage specified in this paragraph for the 202021 fiscal year. This paragraph does not prevent payments towards the unfunded actuarial obligation from being made from other sources of funding, including, but not limited to, other sources in the General Fund.(c) Pursuant to Section 22001 and case law, members are entitled to a financially sound retirement system. It is the intent of the Legislature that this section shall provide the retirement fund stable and full funding over the long term.(d) This section continues in effect but in a somewhat different form, fully performs, and does not in any way unreasonably impair, the contractual obligations determined by the court in California Teachers Association v. Cory (1984) 155 Cal.App.3d 494.(e) Subdivision (b) shall not be construed to be applicable to any unfunded actuarial obligation resulting from any benefit increase or change in contribution rate under this part that occurs after July 1, 1990, except that state contributions made pursuant to subdivision (b) shall be allocated to reduce the unfunded actuarial obligation resulting from the benefits and contribution rates in effect as of July 1, 1990.(f) The provisions of this section shall be construed and implemented to be in conformity with the judicial intent expressed by the court in California Teachers Association v. Cory (1984) 155 Cal.App.3d 494.(g) (1) Except as described in paragraph (2), this section shall become inoperative on July 1, 2046, and as of January 1, 2047, is repealed.(2) Notwithstanding paragraph (1), on July 1 of the first fiscal year after a 30-day notice has been sent to the Joint Legislative Budget Committee and the Controller in compliance with subdivision (d) of Section 22957, this section shall become inoperative and, as of the following January 1, is repealed. | |
| 317 | 318 | ||
| 318 | 319 | SEC. 7. Section 22955.1 of the Education Code is amended to read: | |
| 319 | 320 | ||
| 320 | 321 | ### SEC. 7. | |
| 321 | 322 | ||
| 322 | 323 | 22955.1. (a) Notwithstanding Section 13340 of the Government Code, commencing July 1, 2003, a continuous appropriation is hereby annually made from the General Fund to the Controller, pursuant to this section, for transfer to the Teachers Retirement Fund. The total amount of the appropriation for each year shall be equal to 2.017 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5, and shall be divided into four equal payments. The payments shall be made on July 1, October 1, December 15, and April 15 of each fiscal year. If any of these dates fall on a weekend or holiday, the funds shall be transferred the next business day.(b) (1) Commencing July 1, 2014, the amount of the appropriation required under subdivision (a) shall increase by the following percentages of the creditable compensation upon which that appropriation is based:(A) On July 1, 2014, by 1.437 percent.(B) On July 1, 2015, by 2.874 percent.(C) On July 1, 2016, by 4.311 percent.(2) Except as provided in paragraph (3), for the 201718 fiscal year and each fiscal year thereafter, the board shall increase or decrease the percentage specified in this subdivision from the percentage paid during the prior fiscal year to reflect the contribution required to eliminate the remaining unfunded actuarial obligation, as determined by the board based upon a recommendation from its actuary. If a rate increase is required, the adjustment may be for no more than 0.50 percent per year of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based. At any time when there is not an unfunded actuarial obligation as determined by the board, the percentage specified in this subdivision shall be reduced to zero.(3) For the 202021 fiscal year, the percentage specified in this subdivision shall be the percentage set by the board pursuant to paragraph (2) for the 201920 fiscal year, and the board shall not increase or decrease the percentage specified in this paragraph for the 202021 fiscal year. This paragraph does not prevent payments towards the unfunded actuarial obligation from being made from other sources of funding, including, but not limited to, other sources in the General Fund.(c) Pursuant to Section 22001 and case law, members are entitled to a financially sound retirement system. It is the intent of the Legislature that this section shall provide the retirement fund stable and full funding over the long term.(d) This section continues in effect but in a somewhat different form, fully performs, and does not in any way unreasonably impair, the contractual obligations determined by the court in California Teachers Association v. Cory (1984) 155 Cal.App.3d 494.(e) Subdivision (b) shall not be construed to be applicable to any unfunded actuarial obligation resulting from any benefit increase or change in contribution rate under this part that occurs after July 1, 1990, except that state contributions made pursuant to subdivision (b) shall be allocated to reduce the unfunded actuarial obligation resulting from the benefits and contribution rates in effect as of July 1, 1990.(f) The provisions of this section shall be construed and implemented to be in conformity with the judicial intent expressed by the court in California Teachers Association v. Cory (1984) 155 Cal.App.3d 494.(g) (1) Except as described in paragraph (2), this section shall become inoperative on July 1, 2046, and as of January 1, 2047, is repealed.(2) Notwithstanding paragraph (1), on July 1 of the first fiscal year after a 30-day notice has been sent to the Joint Legislative Budget Committee and the Controller in compliance with subdivision (d) of Section 22957, this section shall become inoperative and, as of the following January 1, is repealed. | |
| 323 | 324 | ||
| 324 | 325 | 22955.1. (a) Notwithstanding Section 13340 of the Government Code, commencing July 1, 2003, a continuous appropriation is hereby annually made from the General Fund to the Controller, pursuant to this section, for transfer to the Teachers Retirement Fund. The total amount of the appropriation for each year shall be equal to 2.017 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5, and shall be divided into four equal payments. The payments shall be made on July 1, October 1, December 15, and April 15 of each fiscal year. If any of these dates fall on a weekend or holiday, the funds shall be transferred the next business day.(b) (1) Commencing July 1, 2014, the amount of the appropriation required under subdivision (a) shall increase by the following percentages of the creditable compensation upon which that appropriation is based:(A) On July 1, 2014, by 1.437 percent.(B) On July 1, 2015, by 2.874 percent.(C) On July 1, 2016, by 4.311 percent.(2) Except as provided in paragraph (3), for the 201718 fiscal year and each fiscal year thereafter, the board shall increase or decrease the percentage specified in this subdivision from the percentage paid during the prior fiscal year to reflect the contribution required to eliminate the remaining unfunded actuarial obligation, as determined by the board based upon a recommendation from its actuary. If a rate increase is required, the adjustment may be for no more than 0.50 percent per year of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based. At any time when there is not an unfunded actuarial obligation as determined by the board, the percentage specified in this subdivision shall be reduced to zero.(3) For the 202021 fiscal year, the percentage specified in this subdivision shall be the percentage set by the board pursuant to paragraph (2) for the 201920 fiscal year, and the board shall not increase or decrease the percentage specified in this paragraph for the 202021 fiscal year. This paragraph does not prevent payments towards the unfunded actuarial obligation from being made from other sources of funding, including, but not limited to, other sources in the General Fund.(c) Pursuant to Section 22001 and case law, members are entitled to a financially sound retirement system. It is the intent of the Legislature that this section shall provide the retirement fund stable and full funding over the long term.(d) This section continues in effect but in a somewhat different form, fully performs, and does not in any way unreasonably impair, the contractual obligations determined by the court in California Teachers Association v. Cory (1984) 155 Cal.App.3d 494.(e) Subdivision (b) shall not be construed to be applicable to any unfunded actuarial obligation resulting from any benefit increase or change in contribution rate under this part that occurs after July 1, 1990, except that state contributions made pursuant to subdivision (b) shall be allocated to reduce the unfunded actuarial obligation resulting from the benefits and contribution rates in effect as of July 1, 1990.(f) The provisions of this section shall be construed and implemented to be in conformity with the judicial intent expressed by the court in California Teachers Association v. Cory (1984) 155 Cal.App.3d 494.(g) (1) Except as described in paragraph (2), this section shall become inoperative on July 1, 2046, and as of January 1, 2047, is repealed.(2) Notwithstanding paragraph (1), on July 1 of the first fiscal year after a 30-day notice has been sent to the Joint Legislative Budget Committee and the Controller in compliance with subdivision (d) of Section 22957, this section shall become inoperative and, as of the following January 1, is repealed. | |
| 325 | 326 | ||
| 326 | 327 | 22955.1. (a) Notwithstanding Section 13340 of the Government Code, commencing July 1, 2003, a continuous appropriation is hereby annually made from the General Fund to the Controller, pursuant to this section, for transfer to the Teachers Retirement Fund. The total amount of the appropriation for each year shall be equal to 2.017 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5, and shall be divided into four equal payments. The payments shall be made on July 1, October 1, December 15, and April 15 of each fiscal year. If any of these dates fall on a weekend or holiday, the funds shall be transferred the next business day.(b) (1) Commencing July 1, 2014, the amount of the appropriation required under subdivision (a) shall increase by the following percentages of the creditable compensation upon which that appropriation is based:(A) On July 1, 2014, by 1.437 percent.(B) On July 1, 2015, by 2.874 percent.(C) On July 1, 2016, by 4.311 percent.(2) Except as provided in paragraph (3), for the 201718 fiscal year and each fiscal year thereafter, the board shall increase or decrease the percentage specified in this subdivision from the percentage paid during the prior fiscal year to reflect the contribution required to eliminate the remaining unfunded actuarial obligation, as determined by the board based upon a recommendation from its actuary. If a rate increase is required, the adjustment may be for no more than 0.50 percent per year of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based. At any time when there is not an unfunded actuarial obligation as determined by the board, the percentage specified in this subdivision shall be reduced to zero.(3) For the 202021 fiscal year, the percentage specified in this subdivision shall be the percentage set by the board pursuant to paragraph (2) for the 201920 fiscal year, and the board shall not increase or decrease the percentage specified in this paragraph for the 202021 fiscal year. This paragraph does not prevent payments towards the unfunded actuarial obligation from being made from other sources of funding, including, but not limited to, other sources in the General Fund.(c) Pursuant to Section 22001 and case law, members are entitled to a financially sound retirement system. It is the intent of the Legislature that this section shall provide the retirement fund stable and full funding over the long term.(d) This section continues in effect but in a somewhat different form, fully performs, and does not in any way unreasonably impair, the contractual obligations determined by the court in California Teachers Association v. Cory (1984) 155 Cal.App.3d 494.(e) Subdivision (b) shall not be construed to be applicable to any unfunded actuarial obligation resulting from any benefit increase or change in contribution rate under this part that occurs after July 1, 1990, except that state contributions made pursuant to subdivision (b) shall be allocated to reduce the unfunded actuarial obligation resulting from the benefits and contribution rates in effect as of July 1, 1990.(f) The provisions of this section shall be construed and implemented to be in conformity with the judicial intent expressed by the court in California Teachers Association v. Cory (1984) 155 Cal.App.3d 494.(g) (1) Except as described in paragraph (2), this section shall become inoperative on July 1, 2046, and as of January 1, 2047, is repealed.(2) Notwithstanding paragraph (1), on July 1 of the first fiscal year after a 30-day notice has been sent to the Joint Legislative Budget Committee and the Controller in compliance with subdivision (d) of Section 22957, this section shall become inoperative and, as of the following January 1, is repealed. | |
| 327 | 328 | ||
| 329 | + | ||
| 330 | + | ||
| 328 | 331 | 22955.1. (a) Notwithstanding Section 13340 of the Government Code, commencing July 1, 2003, a continuous appropriation is hereby annually made from the General Fund to the Controller, pursuant to this section, for transfer to the Teachers Retirement Fund. The total amount of the appropriation for each year shall be equal to 2.017 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5, and shall be divided into four equal payments. The payments shall be made on July 1, October 1, December 15, and April 15 of each fiscal year. If any of these dates fall on a weekend or holiday, the funds shall be transferred the next business day. | |
| 329 | - | ||
| 330 | - | ###### 22955.1. | |
| 331 | 332 | ||
| 332 | 333 | (b) (1) Commencing July 1, 2014, the amount of the appropriation required under subdivision (a) shall increase by the following percentages of the creditable compensation upon which that appropriation is based: | |
| 333 | 334 | ||
| 334 | 335 | (A) On July 1, 2014, by 1.437 percent. | |
| 335 | 336 | ||
| 336 | 337 | (B) On July 1, 2015, by 2.874 percent. | |
| 337 | 338 | ||
| 338 | 339 | (C) On July 1, 2016, by 4.311 percent. | |
| 339 | 340 | ||
| 340 | 341 | (2) Except as provided in paragraph (3), for the 201718 fiscal year and each fiscal year thereafter, the board shall increase or decrease the percentage specified in this subdivision from the percentage paid during the prior fiscal year to reflect the contribution required to eliminate the remaining unfunded actuarial obligation, as determined by the board based upon a recommendation from its actuary. If a rate increase is required, the adjustment may be for no more than 0.50 percent per year of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members contributions are based. At any time when there is not an unfunded actuarial obligation as determined by the board, the percentage specified in this subdivision shall be reduced to zero. | |
| 341 | 342 | ||
| 342 | 343 | (3) For the 202021 fiscal year, the percentage specified in this subdivision shall be the percentage set by the board pursuant to paragraph (2) for the 201920 fiscal year, and the board shall not increase or decrease the percentage specified in this paragraph for the 202021 fiscal year. This paragraph does not prevent payments towards the unfunded actuarial obligation from being made from other sources of funding, including, but not limited to, other sources in the General Fund. | |
| 343 | 344 | ||
| 344 | 345 | (c) Pursuant to Section 22001 and case law, members are entitled to a financially sound retirement system. It is the intent of the Legislature that this section shall provide the retirement fund stable and full funding over the long term. | |
| 345 | 346 | ||
| 346 | 347 | (d) This section continues in effect but in a somewhat different form, fully performs, and does not in any way unreasonably impair, the contractual obligations determined by the court in California Teachers Association v. Cory (1984) 155 Cal.App.3d 494. | |
| 347 | 348 | ||
| 348 | 349 | (e) Subdivision (b) shall not be construed to be applicable to any unfunded actuarial obligation resulting from any benefit increase or change in contribution rate under this part that occurs after July 1, 1990, except that state contributions made pursuant to subdivision (b) shall be allocated to reduce the unfunded actuarial obligation resulting from the benefits and contribution rates in effect as of July 1, 1990. | |
| 349 | 350 | ||
| 350 | 351 | (f) The provisions of this section shall be construed and implemented to be in conformity with the judicial intent expressed by the court in California Teachers Association v. Cory (1984) 155 Cal.App.3d 494. | |
| 351 | 352 | ||
| 352 | 353 | (g) (1) Except as described in paragraph (2), this section shall become inoperative on July 1, 2046, and as of January 1, 2047, is repealed. | |
| 353 | 354 | ||
| 354 | 355 | (2) Notwithstanding paragraph (1), on July 1 of the first fiscal year after a 30-day notice has been sent to the Joint Legislative Budget Committee and the Controller in compliance with subdivision (d) of Section 22957, this section shall become inoperative and, as of the following January 1, is repealed. | |
| 355 | 356 | ||
| 356 | - | SEC. 8. Section 24616.2 of the Education Code is amended to read:24616.2. (a) Except as limited pursuant to Section 22008:(1) All amounts that have been overpaid due to inaccurate information, untimely submission, nonsubmission of information, or on the basis of fraud or intentional misrepresentation by, or on behalf of, a recipient of a benefit, annuity, or refund shall be recovered, as applicable, from the member, participant, former member, former participant, or beneficiary. This paragraph excludes amounts overpaid pursuant to paragraph (2), (3), or (4).(2) All amounts that have been overpaid due to inaccurate information, untimely submission, or nonsubmission of information by an employer that reports directly to the system shall be recovered, as applicable, from that employer.(3) All amounts that have been overpaid due to inaccurate information, untimely submission, or nonsubmission of information by a county superintendent of schools that reports directly to the system on behalf of an employer shall be recovered, as applicable, from that county superintendent of schools. If the overpayment resulted from an error of an employer, the county superintendent of schools may recover the amounts required from that employer pursuant to Section 23012.(A) If the county superintendent of schools provided notice to, and received consent from, an employer to submit that employers monthly report, inclusive of any modifications by the county superintendent of schools on behalf of the employer, an overpayment due to inaccurate information shall be considered an error of that employer.(B) If the untimely submission or nonsubmission of information was the result of the employers untimely submission or nonsubmission of information, the overpayment shall be considered an error of the employer.(4) (A) All amounts that have been overpaid due to an error by the system shall be recovered, with interest as specified in subparagraph (B), as follows:(i) Commencing July 1, 2024, 85 percent of this amount resulting from benefit adjustments that take place within the fiscal year ending in the immediately preceding calendar year, the specific amount of which shall be determined by the board, shall be made as a continuous appropriation from the General Fund to the Controller each July 1 for transfer to the Teachers Retirement Fund. If July 1 falls on a weekend or holiday, the funds shall be transferred the next business day.(ii) Commencing July 1, 2024, 15 percent of this amount resulting from benefit adjustments that take place within the fiscal year ending in the immediately preceding calendar year, the specific amount of which shall be determined by the board, shall be recovered from all employers that report directly to the system in amounts proportionate to their share of contributions for that fiscal year, including the contributions of those employers for whom a county superintendent of schools reports. A county superintendent of schools that reports directly to the system on behalf of employers may recover amounts proportionate to each employers share of contributions for that fiscal year from those employers pursuant to Section 23012.(B) The amount to be recovered in accordance with subparagraph (A) shall be calculated to include regular interest from the date of the overpayment to the date of recovery.(b) (1) An employer shall remit any amount required to be paid to the system pursuant to this section within 30 days of the date of the invoice. If the system does not receive payment within 30 days, the amount owed to the system shall be recalculated to include regular interest from the initial due date.(2) If a payment pursuant to paragraph (1) is not received within 30 days of the date of invoice, the Controller shall, upon the order of the board, reduce subsequent payments from the State School Fund to the county for deposit in the county school service fund by the amount owed or, upon the request of a county superintendent of schools to the county auditor, the Controller shall reduce payments to a school district for deposit in the district general fund by the amount owed. The Controller shall then pay to the system the amount owed for deposit in the Teachers Retirement Fund.(c) Determination of an amount that has been overpaid shall be provided in writing by the system to the party responsible for the overpayment pursuant to subdivision (a). The system shall identify the error, document the source of the error, and specify the total amount overpaid due to the error.(d) This section shall not apply to a recovery made under Section 24015, 24016, or 24017 or to a benefit or allowance reduction required pursuant to Section 24010, 24109, 24114, 24201.5, 24214, or 24214.5.(e) Except as explicitly provided by its provisions, this section shall not be interpreted to limit the systems authority to correct benefits. | |
| 357 | 357 | ||
| 358 | - | SEC. 8. Section 24616.2 of the Education Code is amended to read: | |
| 359 | 358 | ||
| 360 | - | ### SEC. 8. | |
| 359 | + | ||
| 360 | + | ||
| 361 | + | In the exercise of its rights under this part, the board or the agent under contract may commence or prosecute actions, file liens, intervene in court proceedings, join parties to the action and consolidate actions all in the same manner and to the same extent provided in Chapter 5 (commencing with Section 3850) of Part 1 of Division 4 of the Labor Code except that recovery shall not be made from benefits payable under this part because of the injury or death. The superior court of any county within California where venue would be proper or the Superior Court of the County of Sacramento shall have jurisdiction of, and shall be the appropriate venue for, any suit, action, or legal proceedings relating to the subrogation rights of STRS under this part. | |
| 362 | + | ||
| 363 | + | ||
| 364 | + | ||
| 365 | + | SEC. 9.SEC. 8. Section 24616.2 of the Education Code is amended to read:24616.2. (a) Except as limited pursuant to Section 22008:(1) All amounts that have been overpaid due to inaccurate information, untimely submission, nonsubmission of information, or on the basis of fraud or intentional misrepresentation by, or on behalf of, a recipient of a benefit, annuity, or refund shall be recovered, as applicable, from the member, participant, former member, former participant, or beneficiary. This paragraph excludes amounts overpaid pursuant to paragraph (2), (3), or (4).(2) All amounts that have been overpaid due to inaccurate information, untimely submission, or nonsubmission of information by an employer that reports directly to the system shall be recovered, as applicable, from that employer.(3) All amounts that have been overpaid due to inaccurate information, untimely submission, or nonsubmission of information by a county superintendent of schools that reports directly to the system on behalf of an employer shall be recovered, as applicable, from that county superintendent of schools. If the overpayment resulted from an error of an employer, the county superintendent of schools may recover the amounts required from that employer pursuant to Section 23012.(A) If the county superintendent of schools provided notice to, and received consent from, an employer to submit that employers monthly report, inclusive of any modifications by the county superintendent of schools on behalf of the employer, an overpayment due to inaccurate information shall be considered an error of that employer.(B) If the untimely submission or nonsubmission of information was the result of the employers untimely submission or nonsubmission of information, the overpayment shall be considered an error of the employer.(4) (A) All amounts that have been overpaid due to an error by the system shall be recovered, with interest as specified in subparagraph (B), as follows:(i) Commencing July 1, 2024, 85 percent of this amount resulting from benefit adjustments that take place within the fiscal year ending in the immediately preceding calendar year, the specific amount of which shall be determined by the board, shall be made as a continuous appropriation from the General Fund to the Controller each July 1 for transfer to the Teachers Retirement Fund. If July 1 falls on a weekend or holiday, the funds shall be transferred the next business day.(ii) Commencing July 1, 2024, 15 percent of this amount resulting from benefit adjustments that take place within the fiscal year ending in the immediately preceding calendar year, the specific amount of which shall be determined by the board, shall be recovered from all employers that report directly to the system in amounts proportionate to their share of contributions for that fiscal year, including the contributions of those employers for whom a county superintendent of schools reports. A county superintendent of schools that reports directly to the system on behalf of employers may recover amounts proportionate to each employers share of contributions for that fiscal year from those employers pursuant to Section 23012.(B) The amount to be recovered in accordance with subparagraph (A) shall be calculated to include regular interest from the date of the overpayment to the date of recovery.(b) (1) An employer shall remit any amount required to be paid to the system pursuant to this section within 30 days of the date of the invoice. If the system does not receive payment within 30 days, the amount owed to the system shall be recalculated to include regular interest from the initial due date.(2) If a payment pursuant to paragraph (1) is not received within 30 days of the date of invoice, the Controller shall, upon the order of the board, reduce subsequent payments from the State School Fund to the county for deposit in the county school service fund by the amount owed or, upon the request of a county superintendent of schools to the county auditor, the Controller shall reduce payments to a school district for deposit in the district general fund by the amount owed. The Controller shall then pay to the system the amount owed for deposit in the Teachers Retirement Fund.(c) Determination of an amount that has been overpaid shall be provided in writing by the system to the party responsible for the overpayment pursuant to subdivision (a). The system shall identify the error, document the source of the error, and specify the total amount overpaid due to the error.(d) This section shall not apply to a recovery made under Section 24015, 24016, or 24017 or to a benefit or allowance reduction required pursuant to Section 24010, 24109, 24114, 24201.5, 24214, or 24214.5.(e) Except as explicitly provided by its provisions, this section shall not be interpreted to limit the systems authority to correct benefits. | |
| 366 | + | ||
| 367 | + | SEC. 9.SEC. 8. Section 24616.2 of the Education Code is amended to read: | |
| 368 | + | ||
| 369 | + | ### SEC. 9.SEC. 8. | |
| 361 | 370 | ||
| 362 | 371 | 24616.2. (a) Except as limited pursuant to Section 22008:(1) All amounts that have been overpaid due to inaccurate information, untimely submission, nonsubmission of information, or on the basis of fraud or intentional misrepresentation by, or on behalf of, a recipient of a benefit, annuity, or refund shall be recovered, as applicable, from the member, participant, former member, former participant, or beneficiary. This paragraph excludes amounts overpaid pursuant to paragraph (2), (3), or (4).(2) All amounts that have been overpaid due to inaccurate information, untimely submission, or nonsubmission of information by an employer that reports directly to the system shall be recovered, as applicable, from that employer.(3) All amounts that have been overpaid due to inaccurate information, untimely submission, or nonsubmission of information by a county superintendent of schools that reports directly to the system on behalf of an employer shall be recovered, as applicable, from that county superintendent of schools. If the overpayment resulted from an error of an employer, the county superintendent of schools may recover the amounts required from that employer pursuant to Section 23012.(A) If the county superintendent of schools provided notice to, and received consent from, an employer to submit that employers monthly report, inclusive of any modifications by the county superintendent of schools on behalf of the employer, an overpayment due to inaccurate information shall be considered an error of that employer.(B) If the untimely submission or nonsubmission of information was the result of the employers untimely submission or nonsubmission of information, the overpayment shall be considered an error of the employer.(4) (A) All amounts that have been overpaid due to an error by the system shall be recovered, with interest as specified in subparagraph (B), as follows:(i) Commencing July 1, 2024, 85 percent of this amount resulting from benefit adjustments that take place within the fiscal year ending in the immediately preceding calendar year, the specific amount of which shall be determined by the board, shall be made as a continuous appropriation from the General Fund to the Controller each July 1 for transfer to the Teachers Retirement Fund. If July 1 falls on a weekend or holiday, the funds shall be transferred the next business day.(ii) Commencing July 1, 2024, 15 percent of this amount resulting from benefit adjustments that take place within the fiscal year ending in the immediately preceding calendar year, the specific amount of which shall be determined by the board, shall be recovered from all employers that report directly to the system in amounts proportionate to their share of contributions for that fiscal year, including the contributions of those employers for whom a county superintendent of schools reports. A county superintendent of schools that reports directly to the system on behalf of employers may recover amounts proportionate to each employers share of contributions for that fiscal year from those employers pursuant to Section 23012.(B) The amount to be recovered in accordance with subparagraph (A) shall be calculated to include regular interest from the date of the overpayment to the date of recovery.(b) (1) An employer shall remit any amount required to be paid to the system pursuant to this section within 30 days of the date of the invoice. If the system does not receive payment within 30 days, the amount owed to the system shall be recalculated to include regular interest from the initial due date.(2) If a payment pursuant to paragraph (1) is not received within 30 days of the date of invoice, the Controller shall, upon the order of the board, reduce subsequent payments from the State School Fund to the county for deposit in the county school service fund by the amount owed or, upon the request of a county superintendent of schools to the county auditor, the Controller shall reduce payments to a school district for deposit in the district general fund by the amount owed. The Controller shall then pay to the system the amount owed for deposit in the Teachers Retirement Fund.(c) Determination of an amount that has been overpaid shall be provided in writing by the system to the party responsible for the overpayment pursuant to subdivision (a). The system shall identify the error, document the source of the error, and specify the total amount overpaid due to the error.(d) This section shall not apply to a recovery made under Section 24015, 24016, or 24017 or to a benefit or allowance reduction required pursuant to Section 24010, 24109, 24114, 24201.5, 24214, or 24214.5.(e) Except as explicitly provided by its provisions, this section shall not be interpreted to limit the systems authority to correct benefits. | |
| 363 | 372 | ||
| 364 | 373 | 24616.2. (a) Except as limited pursuant to Section 22008:(1) All amounts that have been overpaid due to inaccurate information, untimely submission, nonsubmission of information, or on the basis of fraud or intentional misrepresentation by, or on behalf of, a recipient of a benefit, annuity, or refund shall be recovered, as applicable, from the member, participant, former member, former participant, or beneficiary. This paragraph excludes amounts overpaid pursuant to paragraph (2), (3), or (4).(2) All amounts that have been overpaid due to inaccurate information, untimely submission, or nonsubmission of information by an employer that reports directly to the system shall be recovered, as applicable, from that employer.(3) All amounts that have been overpaid due to inaccurate information, untimely submission, or nonsubmission of information by a county superintendent of schools that reports directly to the system on behalf of an employer shall be recovered, as applicable, from that county superintendent of schools. If the overpayment resulted from an error of an employer, the county superintendent of schools may recover the amounts required from that employer pursuant to Section 23012.(A) If the county superintendent of schools provided notice to, and received consent from, an employer to submit that employers monthly report, inclusive of any modifications by the county superintendent of schools on behalf of the employer, an overpayment due to inaccurate information shall be considered an error of that employer.(B) If the untimely submission or nonsubmission of information was the result of the employers untimely submission or nonsubmission of information, the overpayment shall be considered an error of the employer.(4) (A) All amounts that have been overpaid due to an error by the system shall be recovered, with interest as specified in subparagraph (B), as follows:(i) Commencing July 1, 2024, 85 percent of this amount resulting from benefit adjustments that take place within the fiscal year ending in the immediately preceding calendar year, the specific amount of which shall be determined by the board, shall be made as a continuous appropriation from the General Fund to the Controller each July 1 for transfer to the Teachers Retirement Fund. If July 1 falls on a weekend or holiday, the funds shall be transferred the next business day.(ii) Commencing July 1, 2024, 15 percent of this amount resulting from benefit adjustments that take place within the fiscal year ending in the immediately preceding calendar year, the specific amount of which shall be determined by the board, shall be recovered from all employers that report directly to the system in amounts proportionate to their share of contributions for that fiscal year, including the contributions of those employers for whom a county superintendent of schools reports. A county superintendent of schools that reports directly to the system on behalf of employers may recover amounts proportionate to each employers share of contributions for that fiscal year from those employers pursuant to Section 23012.(B) The amount to be recovered in accordance with subparagraph (A) shall be calculated to include regular interest from the date of the overpayment to the date of recovery.(b) (1) An employer shall remit any amount required to be paid to the system pursuant to this section within 30 days of the date of the invoice. If the system does not receive payment within 30 days, the amount owed to the system shall be recalculated to include regular interest from the initial due date.(2) If a payment pursuant to paragraph (1) is not received within 30 days of the date of invoice, the Controller shall, upon the order of the board, reduce subsequent payments from the State School Fund to the county for deposit in the county school service fund by the amount owed or, upon the request of a county superintendent of schools to the county auditor, the Controller shall reduce payments to a school district for deposit in the district general fund by the amount owed. The Controller shall then pay to the system the amount owed for deposit in the Teachers Retirement Fund.(c) Determination of an amount that has been overpaid shall be provided in writing by the system to the party responsible for the overpayment pursuant to subdivision (a). The system shall identify the error, document the source of the error, and specify the total amount overpaid due to the error.(d) This section shall not apply to a recovery made under Section 24015, 24016, or 24017 or to a benefit or allowance reduction required pursuant to Section 24010, 24109, 24114, 24201.5, 24214, or 24214.5.(e) Except as explicitly provided by its provisions, this section shall not be interpreted to limit the systems authority to correct benefits. | |
| 365 | 374 | ||
| 366 | 375 | 24616.2. (a) Except as limited pursuant to Section 22008:(1) All amounts that have been overpaid due to inaccurate information, untimely submission, nonsubmission of information, or on the basis of fraud or intentional misrepresentation by, or on behalf of, a recipient of a benefit, annuity, or refund shall be recovered, as applicable, from the member, participant, former member, former participant, or beneficiary. This paragraph excludes amounts overpaid pursuant to paragraph (2), (3), or (4).(2) All amounts that have been overpaid due to inaccurate information, untimely submission, or nonsubmission of information by an employer that reports directly to the system shall be recovered, as applicable, from that employer.(3) All amounts that have been overpaid due to inaccurate information, untimely submission, or nonsubmission of information by a county superintendent of schools that reports directly to the system on behalf of an employer shall be recovered, as applicable, from that county superintendent of schools. If the overpayment resulted from an error of an employer, the county superintendent of schools may recover the amounts required from that employer pursuant to Section 23012.(A) If the county superintendent of schools provided notice to, and received consent from, an employer to submit that employers monthly report, inclusive of any modifications by the county superintendent of schools on behalf of the employer, an overpayment due to inaccurate information shall be considered an error of that employer.(B) If the untimely submission or nonsubmission of information was the result of the employers untimely submission or nonsubmission of information, the overpayment shall be considered an error of the employer.(4) (A) All amounts that have been overpaid due to an error by the system shall be recovered, with interest as specified in subparagraph (B), as follows:(i) Commencing July 1, 2024, 85 percent of this amount resulting from benefit adjustments that take place within the fiscal year ending in the immediately preceding calendar year, the specific amount of which shall be determined by the board, shall be made as a continuous appropriation from the General Fund to the Controller each July 1 for transfer to the Teachers Retirement Fund. If July 1 falls on a weekend or holiday, the funds shall be transferred the next business day.(ii) Commencing July 1, 2024, 15 percent of this amount resulting from benefit adjustments that take place within the fiscal year ending in the immediately preceding calendar year, the specific amount of which shall be determined by the board, shall be recovered from all employers that report directly to the system in amounts proportionate to their share of contributions for that fiscal year, including the contributions of those employers for whom a county superintendent of schools reports. A county superintendent of schools that reports directly to the system on behalf of employers may recover amounts proportionate to each employers share of contributions for that fiscal year from those employers pursuant to Section 23012.(B) The amount to be recovered in accordance with subparagraph (A) shall be calculated to include regular interest from the date of the overpayment to the date of recovery.(b) (1) An employer shall remit any amount required to be paid to the system pursuant to this section within 30 days of the date of the invoice. If the system does not receive payment within 30 days, the amount owed to the system shall be recalculated to include regular interest from the initial due date.(2) If a payment pursuant to paragraph (1) is not received within 30 days of the date of invoice, the Controller shall, upon the order of the board, reduce subsequent payments from the State School Fund to the county for deposit in the county school service fund by the amount owed or, upon the request of a county superintendent of schools to the county auditor, the Controller shall reduce payments to a school district for deposit in the district general fund by the amount owed. The Controller shall then pay to the system the amount owed for deposit in the Teachers Retirement Fund.(c) Determination of an amount that has been overpaid shall be provided in writing by the system to the party responsible for the overpayment pursuant to subdivision (a). The system shall identify the error, document the source of the error, and specify the total amount overpaid due to the error.(d) This section shall not apply to a recovery made under Section 24015, 24016, or 24017 or to a benefit or allowance reduction required pursuant to Section 24010, 24109, 24114, 24201.5, 24214, or 24214.5.(e) Except as explicitly provided by its provisions, this section shall not be interpreted to limit the systems authority to correct benefits. | |
| 367 | 376 | ||
| 377 | + | ||
| 378 | + | ||
| 368 | 379 | 24616.2. (a) Except as limited pursuant to Section 22008: | |
| 369 | - | ||
| 370 | - | ###### 24616.2. | |
| 371 | 380 | ||
| 372 | 381 | (1) All amounts that have been overpaid due to inaccurate information, untimely submission, nonsubmission of information, or on the basis of fraud or intentional misrepresentation by, or on behalf of, a recipient of a benefit, annuity, or refund shall be recovered, as applicable, from the member, participant, former member, former participant, or beneficiary. This paragraph excludes amounts overpaid pursuant to paragraph (2), (3), or (4). | |
| 373 | 382 | ||
| 374 | 383 | (2) All amounts that have been overpaid due to inaccurate information, untimely submission, or nonsubmission of information by an employer that reports directly to the system shall be recovered, as applicable, from that employer. | |
| 375 | 384 | ||
| 376 | 385 | (3) All amounts that have been overpaid due to inaccurate information, untimely submission, or nonsubmission of information by a county superintendent of schools that reports directly to the system on behalf of an employer shall be recovered, as applicable, from that county superintendent of schools. If the overpayment resulted from an error of an employer, the county superintendent of schools may recover the amounts required from that employer pursuant to Section 23012. | |
| 377 | 386 | ||
| 378 | 387 | (A) If the county superintendent of schools provided notice to, and received consent from, an employer to submit that employers monthly report, inclusive of any modifications by the county superintendent of schools on behalf of the employer, an overpayment due to inaccurate information shall be considered an error of that employer. | |
| 379 | 388 | ||
| 380 | 389 | (B) If the untimely submission or nonsubmission of information was the result of the employers untimely submission or nonsubmission of information, the overpayment shall be considered an error of the employer. | |
| 381 | 390 | ||
| 382 | 391 | (4) (A) All amounts that have been overpaid due to an error by the system shall be recovered, with interest as specified in subparagraph (B), as follows: | |
| 383 | 392 | ||
| 384 | 393 | (i) Commencing July 1, 2024, 85 percent of this amount resulting from benefit adjustments that take place within the fiscal year ending in the immediately preceding calendar year, the specific amount of which shall be determined by the board, shall be made as a continuous appropriation from the General Fund to the Controller each July 1 for transfer to the Teachers Retirement Fund. If July 1 falls on a weekend or holiday, the funds shall be transferred the next business day. | |
| 385 | 394 | ||
| 386 | 395 | (ii) Commencing July 1, 2024, 15 percent of this amount resulting from benefit adjustments that take place within the fiscal year ending in the immediately preceding calendar year, the specific amount of which shall be determined by the board, shall be recovered from all employers that report directly to the system in amounts proportionate to their share of contributions for that fiscal year, including the contributions of those employers for whom a county superintendent of schools reports. A county superintendent of schools that reports directly to the system on behalf of employers may recover amounts proportionate to each employers share of contributions for that fiscal year from those employers pursuant to Section 23012. | |
| 387 | 396 | ||
| 388 | 397 | (B) The amount to be recovered in accordance with subparagraph (A) shall be calculated to include regular interest from the date of the overpayment to the date of recovery. | |
| 389 | 398 | ||
| 390 | 399 | (b) (1) An employer shall remit any amount required to be paid to the system pursuant to this section within 30 days of the date of the invoice. If the system does not receive payment within 30 days, the amount owed to the system shall be recalculated to include regular interest from the initial due date. | |
| 391 | 400 | ||
| 392 | 401 | (2) If a payment pursuant to paragraph (1) is not received within 30 days of the date of invoice, the Controller shall, upon the order of the board, reduce subsequent payments from the State School Fund to the county for deposit in the county school service fund by the amount owed or, upon the request of a county superintendent of schools to the county auditor, the Controller shall reduce payments to a school district for deposit in the district general fund by the amount owed. The Controller shall then pay to the system the amount owed for deposit in the Teachers Retirement Fund. | |
| 393 | 402 | ||
| 394 | 403 | (c) Determination of an amount that has been overpaid shall be provided in writing by the system to the party responsible for the overpayment pursuant to subdivision (a). The system shall identify the error, document the source of the error, and specify the total amount overpaid due to the error. | |
| 395 | 404 | ||
| 396 | 405 | (d) This section shall not apply to a recovery made under Section 24015, 24016, or 24017 or to a benefit or allowance reduction required pursuant to Section 24010, 24109, 24114, 24201.5, 24214, or 24214.5. | |
| 397 | 406 | ||
| 398 | 407 | (e) Except as explicitly provided by its provisions, this section shall not be interpreted to limit the systems authority to correct benefits. | |
| 399 | 408 | ||
| 400 | - | SEC. 9. Section 26122 of the Education Code is amended to read:26122. (a) Employer means a school district, community college district, or county office of education that has elected to provide the benefits of this part to persons employed to perform creditable service. Employer shall not include the state.(b) The board shall have final authority for determining an employer for purposes of this part. | |
| 409 | + | SEC. 10.SEC. 9. Section 26122 of the Education Code is amended to read:26122. (a) Employer means a school district, community college district, or county office of education that has elected to provide the benefits of this part to persons employed to perform creditable service. Employer shall not include the state.(b) The board shall have final authority for determining an employer for purposes of this part. | |
| 401 | 410 | ||
| 402 | - | SEC. 9. Section 26122 of the Education Code is amended to read: | |
| 411 | + | SEC. 10.SEC. 9. Section 26122 of the Education Code is amended to read: | |
| 403 | 412 | ||
| 404 | - | ### SEC. 9. | |
| 413 | + | ### SEC. 10.SEC. 9. | |
| 405 | 414 | ||
| 406 | 415 | 26122. (a) Employer means a school district, community college district, or county office of education that has elected to provide the benefits of this part to persons employed to perform creditable service. Employer shall not include the state.(b) The board shall have final authority for determining an employer for purposes of this part. | |
| 407 | 416 | ||
| 408 | 417 | 26122. (a) Employer means a school district, community college district, or county office of education that has elected to provide the benefits of this part to persons employed to perform creditable service. Employer shall not include the state.(b) The board shall have final authority for determining an employer for purposes of this part. | |
| 409 | 418 | ||
| 410 | 419 | 26122. (a) Employer means a school district, community college district, or county office of education that has elected to provide the benefits of this part to persons employed to perform creditable service. Employer shall not include the state.(b) The board shall have final authority for determining an employer for purposes of this part. | |
| 411 | 420 | ||
| 421 | + | ||
| 422 | + | ||
| 412 | 423 | 26122. (a) Employer means a school district, community college district, or county office of education that has elected to provide the benefits of this part to persons employed to perform creditable service. Employer shall not include the state. | |
| 413 | - | ||
| 414 | - | ###### 26122. | |
| 415 | 424 | ||
| 416 | 425 | (b) The board shall have final authority for determining an employer for purposes of this part. | |
| 417 | 426 | ||
| 418 | - | SEC. 10. Section 7522.02 of the Government Code is amended to read:7522.02. (a) (1) Notwithstanding any other law, except as provided in this article, on and after January 1, 2013, this article shall apply to all state and local public retirement systems and to their participating employers, including the Public Employees Retirement System, the State Teachers Retirement System, the Legislators Retirement System, the Judges Retirement System, the Judges Retirement System II, county and district retirement systems created pursuant to the County Employees Retirement Law of 1937 (Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3), independent public retirement systems, and to individual retirement plans offered by public employers. However, this article shall be subject to the Internal Revenue Code and Section 17 of Article XVI of the California Constitution. The administration of the requirements of this article shall comply with applicable provisions of the Internal Revenue Code and the Revenue and Taxation Code.(2) Notwithstanding paragraph (1), this article shall not apply to the entities described in Section 9 of Article IX of, and Sections 4 and 5 of Article XI of, the California Constitution, except to the extent that these entities continue to be participating employers in any retirement system governed by state statute. Accordingly, any retirement plan approved before January 1, 2013, by the voters of any entity excluded from coverage by this section shall not be affected by this article.(3) (A) Notwithstanding paragraph (1), this article shall not apply to a public employee whose interests are protected under Section 5333(b) of Title 49 of the United States Code until a federal district court rules that the United States Secretary of Labor, or their designee, erred in determining that the application of this article precludes certification under that section, or until January 1, 2016, whichever is sooner.(B) If a federal district court upholds the determination of the United States Secretary of Labor, or their designee, that application of this article precludes them from providing a certification under Section 5333(b) of Title 49 of the United States Code, this article shall not apply to a public employee specified in subparagraph (A).(4) Notwithstanding paragraph (1), this article shall not apply to a multiemployer plan authorized by Section 302(c)(5) of the federal Taft-Hartley Act (29 U.S.C. Sec. 186(c)(5)) if the public employer began participation in that plan prior to January 1, 2013, and the plan is regulated by the federal Employee Retirement Income Security Act of 1974 (29 U.S.C. Sec. 1001 et seq.).(b) The benefit plan required by this article shall apply to public employees who are new members as defined in Section 7522.04.(c) (1) Individuals who were employed by any public employer before January 1, 2013, and who became employed by a subsequent public employer for the first time on or after January 1, 2013, shall be subject to the retirement plan that would have been available to employees of the subsequent employer who were first employed by the subsequent employer on or before December 31, 2012, if the individual was subject to concurrent membership for which creditable service was performed in the previous six months or reciprocity established under any of the following provisions:(A) Article 5 (commencing with Section 20350) of Chapter 3 of Part 3 of Division 5 of Title 2.(B) Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3.(C) Any agreement between public retirement systems to provide reciprocity to members of the systems.(D) Section 22115.2 of the Education Code.(2) An individual who was employed before January 1, 2013, and who, without a separation from employment, changed employment positions and became subject to a different defined benefit plan in a different public retirement system offered by their employer shall be subject to that defined benefit plan as it would have been available to employees who were first employed on or before December 31, 2012.(d) If a public employer, before January 1, 2013, offers a defined benefit pension plan that provides a defined benefit formula with a lower benefit factor at normal retirement age and results in a lower normal cost than the defined benefit formula required by this article, that employer may continue to offer that defined benefit formula instead of the defined benefit formula required by this article, and shall not be subject to the requirements of Section 7522.10 for pensionable compensation subject to that formula. However, if the employer adopts a new defined benefit formula on or after January 1, 2013, that formula must conform to the requirements of this article or must be determined and certified by the retirement systems chief actuary and the retirement board to have no greater risk and no greater cost to the employer than the defined benefit formula required by this article and must be approved by the Legislature. New members of the defined benefit plan may only participate in the lower cost defined benefit formula that was in place before January 1, 2013, or a defined benefit formula that conforms to the requirements of this article or is approved by the Legislature as provided in this subdivision.(e) If a public employer, before January 1, 2013, offers a retirement benefit plan that consists solely of a defined contribution plan, that employer may continue to offer that plan instead of the defined benefit pension plan required by this article. However, if the employer adopts a new defined benefit pension plan or defined benefit formula on or after January 1, 2013, that plan or formula must conform to the requirements of this article or must be determined and certified by the retirement systems chief actuary and the systems board to have no greater risk and no greater cost to the employer than the defined benefit formula required by this article and must be approved by the Legislature. New members of the employers plan may only participate in the defined contribution plan that was in place before January 1, 2013, or a defined contribution plan or defined benefit formula that conforms to the requirements of this article. This subdivision shall not be construed to prohibit an employer from offering a defined contribution plan on or after January 1, 2013, either with or without a defined benefit plan, whether or not the employer offered a defined contribution plan prior to that date.(f) (1) If, on or after January 1, 2013, the Cities of Brea and Fullerton form a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Article 1 (commencing with Section 6500) of Chapter 5), that joint powers authority may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of a common power, to which the employee is associated, by the joint powers authority to any employee of the City of Brea, the City of Fullerton, or a city described in paragraph (2) who is not a new member and subsequently is employed by the joint powers authority within 180 days of the city providing for the exercise of a common power, to which the employee was associated, by the joint powers authority.(2) On or before January 1, 2017, a city in Orange County that is contiguous to the City of Brea or the City of Fullerton may join the joint powers authority described in paragraph (1) but not more than three cities shall be permitted to join.(3) The formation of a joint powers authority on or after January 1, 2013, shall not act in a manner as to exempt a new employee or a new member, as defined by Section 7522.04, from the requirements of this article. New members may only participate in a defined benefit plan or formula that conforms to the requirements of this article.(g) (1) If, on or after January 1, 2013, the Belmont Fire Protection District, the Estero Municipal Improvement District, and the City of San Mateo form a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Article 1 (commencing with Section 6500) of Chapter 5), that joint powers authority may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of a common power, to which the employee is associated, by the joint powers authority to any employee of the Belmont Fire Protection District, the Estero Municipal Improvement District, and the City of San Mateo who is not a new member and subsequently is employed by the joint powers authority within 180 days of the agency providing for the exercise of a common power, to which the employee was associated, by the joint powers authority.(2) The formation of a joint powers authority on or after January 1, 2013, shall not act in a manner as to exempt a new employee or a new member, as defined by Section 7522.04, from the requirements of this article. New members may only participate in a defined benefit plan or formula that conforms to the requirements of this article.(h) The Judges Retirement System and the Judges Retirement System II shall not be required to adopt the defined benefit formula required by Section 7522.20 or 7522.25 or the compensation limitations defined in Section 7522.10.(i) This article shall not be construed to provide membership in any public retirement system for an individual who would not otherwise be eligible for membership under that systems applicable rules or laws.(j) On and after January 1, 2013, each public retirement system shall modify its plan or plans to comply with the requirements of this article and may adopt regulations or resolutions for this purpose.(k) On and after January 1, 2024, a county and a trial court that separate their joint contract into individual contracts pursuant to Section 20471.2 may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of the option to separate, provided that the employee subsequently does not otherwise meet the definition of a new employee. | |
| 427 | + | SEC. 10. Section 7522.02 of the Government Code is amended to read:7522.02. (a) (1) Notwithstanding any other law, except as provided in this article, on and after January 1, 2013, this article shall apply to all state and local public retirement systems and to their participating employers, including the Public Employees Retirement System, the State Teachers Retirement System, the Legislators Retirement System, the Judges Retirement System, the Judges Retirement System II, county and district retirement systems created pursuant to the County Employees Retirement Law of 1937 (Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3), independent public retirement systems, and to individual retirement plans offered by public employers. However, this article shall be subject to the Internal Revenue Code and Section 17 of Article XVI of the California Constitution. The administration of the requirements of this article shall comply with applicable provisions of the Internal Revenue Code and the Revenue and Taxation Code.(2) Notwithstanding paragraph (1), this article shall not apply to the entities described in Section 9 of Article IX of, and Sections 4 and 5 of Article XI of, the California Constitution, except to the extent that these entities continue to be participating employers in any retirement system governed by state statute. Accordingly, any retirement plan approved before January 1, 2013, by the voters of any entity excluded from coverage by this section shall not be affected by this article.(3) (A) Notwithstanding paragraph (1), this article shall not apply to a public employee whose interests are protected under Section 5333(b) of Title 49 of the United States Code until a federal district court rules that the United States Secretary of Labor, or their designee, erred in determining that the application of this article precludes certification under that section, or until January 1, 2016, whichever is sooner.(B) If a federal district court upholds the determination of the United States Secretary of Labor, or their designee, that application of this article precludes them from providing a certification under Section 5333(b) of Title 49 of the United States Code, this article shall not apply to a public employee specified in subparagraph (A).(4) Notwithstanding paragraph (1), this article shall not apply to a multiemployer plan authorized by Section 302(c)(5) of the federal Taft-Hartley Act (29 U.S.C. Sec. 186(c)(5)) if the public employer began participation in that plan prior to January 1, 2013, and the plan is regulated by the federal Employee Retirement Income Security Act of 1974 (29 U.S.C. Sec. 1001 et seq.).(b) The benefit plan required by this article shall apply to public employees who are new members as defined in Section 7522.04.(c) (1) Individuals who were employed by any public employer before January 1, 2013, and who became employed by a subsequent public employer for the first time on or after January 1, 2013, shall be subject to the retirement plan that would have been available to employees of the subsequent employer who were first employed by the subsequent employer on or before December 31, 2012, if the individual was subject to concurrent membership for which creditable service was performed in the previous six months or reciprocity established under any of the following provisions:(A) Article 5 (commencing with Section 20350) of Chapter 3 of Part 3 of Division 5 of Title 2.(B) Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3.(C) Any agreement between public retirement systems to provide reciprocity to members of the systems.(D) Section 22115.2 of the Education Code.(2) An individual who was employed before January 1, 2013, and who, without a separation from employment, changed employment positions and became subject to a different defined benefit plan in a different public retirement system offered by their employer shall be subject to that defined benefit plan as it would have been available to employees who were first employed on or before December 31, 2012.(d) If a public employer, before January 1, 2013, offers a defined benefit pension plan that provides a defined benefit formula with a lower benefit factor at normal retirement age and results in a lower normal cost than the defined benefit formula required by this article, that employer may continue to offer that defined benefit formula instead of the defined benefit formula required by this article, and shall not be subject to the requirements of Section 7522.10 for pensionable compensation subject to that formula. However, if the employer adopts a new defined benefit formula on or after January 1, 2013, that formula must conform to the requirements of this article or must be determined and certified by the retirement systems chief actuary and the retirement board to have no greater risk and no greater cost to the employer than the defined benefit formula required by this article and must be approved by the Legislature. New members of the defined benefit plan may only participate in the lower cost defined benefit formula that was in place before January 1, 2013, or a defined benefit formula that conforms to the requirements of this article or is approved by the Legislature as provided in this subdivision.(e) If a public employer, before January 1, 2013, offers a retirement benefit plan that consists solely of a defined contribution plan, that employer may continue to offer that plan instead of the defined benefit pension plan required by this article. However, if the employer adopts a new defined benefit pension plan or defined benefit formula on or after January 1, 2013, that plan or formula must conform to the requirements of this article or must be determined and certified by the retirement systems chief actuary and the systems board to have no greater risk and no greater cost to the employer than the defined benefit formula required by this article and must be approved by the Legislature. New members of the employers plan may only participate in the defined contribution plan that was in place before January 1, 2013, or a defined contribution plan or defined benefit formula that conforms to the requirements of this article. This subdivision shall not be construed to prohibit an employer from offering a defined contribution plan on or after January 1, 2013, either with or without a defined benefit plan, whether or not the employer offered a defined contribution plan prior to that date.(f) (1) If, on or after January 1, 2013, the Cities of Brea and Fullerton form a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Article 1 (commencing with Section 6500) of Chapter 5), that joint powers authority may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of a common power, to which the employee is associated, by the joint powers authority to any employee of the City of Brea, the City of Fullerton, or a city described in paragraph (2) who is not a new member and subsequently is employed by the joint powers authority within 180 days of the city providing for the exercise of a common power, to which the employee was associated, by the joint powers authority.(2) On or before January 1, 2017, a city in Orange County that is contiguous to the City of Brea or the City of Fullerton may join the joint powers authority described in paragraph (1) but not more than three cities shall be permitted to join.(3) The formation of a joint powers authority on or after January 1, 2013, shall not act in a manner as to exempt a new employee or a new member, as defined by Section 7522.04, from the requirements of this article. New members may only participate in a defined benefit plan or formula that conforms to the requirements of this article.(g) (1) If, on or after January 1, 2013, the Belmont Fire Protection District, the Estero Municipal Improvement District, and the City of San Mateo form a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Article 1 (commencing with Section 6500) of Chapter 5), that joint powers authority may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of a common power, to which the employee is associated, by the joint powers authority to any employee of the Belmont Fire Protection District, the Estero Municipal Improvement District, and the City of San Mateo who is not a new member and subsequently is employed by the joint powers authority within 180 days of the agency providing for the exercise of a common power, to which the employee was associated, by the joint powers authority.(2) The formation of a joint powers authority on or after January 1, 2013, shall not act in a manner as to exempt a new employee or a new member, as defined by Section 7522.04, from the requirements of this article. New members may only participate in a defined benefit plan or formula that conforms to the requirements of this article.(3)On and after January 1, 2024, a county and a trial court that separate their joint contract into individual contracts pursuant to Section 20471.2 may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of the option to separate, provided that the employee subsequently does not otherwise meet the definition of a new employee.(h) The Judges Retirement System and the Judges Retirement System II shall not be required to adopt the defined benefit formula required by Section 7522.20 or 7522.25 or the compensation limitations defined in Section 7522.10.(i) This article shall not be construed to provide membership in any public retirement system for an individual who would not otherwise be eligible for membership under that systems applicable rules or laws.(j) On and after January 1, 2013, each public retirement system shall modify its plan or plans to comply with the requirements of this article and may adopt regulations or resolutions for this purpose.(k) On and after January 1, 2024, a county and a trial court that separate their joint contract into individual contracts pursuant to Section 20471.2 may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of the option to separate, provided that the employee subsequently does not otherwise meet the definition of a new employee. | |
| 419 | 428 | ||
| 420 | 429 | SEC. 10. Section 7522.02 of the Government Code is amended to read: | |
| 421 | 430 | ||
| 422 | 431 | ### SEC. 10. | |
| 423 | 432 | ||
| 424 | - | 7522.02. (a) (1) Notwithstanding any other law, except as provided in this article, on and after January 1, 2013, this article shall apply to all state and local public retirement systems and to their participating employers, including the Public Employees Retirement System, the State Teachers Retirement System, the Legislators Retirement System, the Judges Retirement System, the Judges Retirement System II, county and district retirement systems created pursuant to the County Employees Retirement Law of 1937 (Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3), independent public retirement systems, and to individual retirement plans offered by public employers. However, this article shall be subject to the Internal Revenue Code and Section 17 of Article XVI of the California Constitution. The administration of the requirements of this article shall comply with applicable provisions of the Internal Revenue Code and the Revenue and Taxation Code.(2) Notwithstanding paragraph (1), this article shall not apply to the entities described in Section 9 of Article IX of, and Sections 4 and 5 of Article XI of, the California Constitution, except to the extent that these entities continue to be participating employers in any retirement system governed by state statute. Accordingly, any retirement plan approved before January 1, 2013, by the voters of any entity excluded from coverage by this section shall not be affected by this article.(3) (A) Notwithstanding paragraph (1), this article shall not apply to a public employee whose interests are protected under Section 5333(b) of Title 49 of the United States Code until a federal district court rules that the United States Secretary of Labor, or their designee, erred in determining that the application of this article precludes certification under that section, or until January 1, 2016, whichever is sooner.(B) If a federal district court upholds the determination of the United States Secretary of Labor, or their designee, that application of this article precludes them from providing a certification under Section 5333(b) of Title 49 of the United States Code, this article shall not apply to a public employee specified in subparagraph (A).(4) Notwithstanding paragraph (1), this article shall not apply to a multiemployer plan authorized by Section 302(c)(5) of the federal Taft-Hartley Act (29 U.S.C. Sec. 186(c)(5)) if the public employer began participation in that plan prior to January 1, 2013, and the plan is regulated by the federal Employee Retirement Income Security Act of 1974 (29 U.S.C. Sec. 1001 et seq.).(b) The benefit plan required by this article shall apply to public employees who are new members as defined in Section 7522.04.(c) (1) Individuals who were employed by any public employer before January 1, 2013, and who became employed by a subsequent public employer for the first time on or after January 1, 2013, shall be subject to the retirement plan that would have been available to employees of the subsequent employer who were first employed by the subsequent employer on or before December 31, 2012, if the individual was subject to concurrent membership for which creditable service was performed in the previous six months or reciprocity established under any of the following provisions:(A) Article 5 (commencing with Section 20350) of Chapter 3 of Part 3 of Division 5 of Title 2.(B) Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3.(C) Any agreement between public retirement systems to provide reciprocity to members of the systems.(D) Section 22115.2 of the Education Code.(2) An individual who was employed before January 1, 2013, and who, without a separation from employment, changed employment positions and became subject to a different defined benefit plan in a different public retirement system offered by their employer shall be subject to that defined benefit plan as it would have been available to employees who were first employed on or before December 31, 2012.(d) If a public employer, before January 1, 2013, offers a defined benefit pension plan that provides a defined benefit formula with a lower benefit factor at normal retirement age and results in a lower normal cost than the defined benefit formula required by this article, that employer may continue to offer that defined benefit formula instead of the defined benefit formula required by this article, and shall not be subject to the requirements of Section 7522.10 for pensionable compensation subject to that formula. However, if the employer adopts a new defined benefit formula on or after January 1, 2013, that formula must conform to the requirements of this article or must be determined and certified by the retirement systems chief actuary and the retirement board to have no greater risk and no greater cost to the employer than the defined benefit formula required by this article and must be approved by the Legislature. New members of the defined benefit plan may only participate in the lower cost defined benefit formula that was in place before January 1, 2013, or a defined benefit formula that conforms to the requirements of this article or is approved by the Legislature as provided in this subdivision.(e) If a public employer, before January 1, 2013, offers a retirement benefit plan that consists solely of a defined contribution plan, that employer may continue to offer that plan instead of the defined benefit pension plan required by this article. However, if the employer adopts a new defined benefit pension plan or defined benefit formula on or after January 1, 2013, that plan or formula must conform to the requirements of this article or must be determined and certified by the retirement systems chief actuary and the systems board to have no greater risk and no greater cost to the employer than the defined benefit formula required by this article and must be approved by the Legislature. New members of the employers plan may only participate in the defined contribution plan that was in place before January 1, 2013, or a defined contribution plan or defined benefit formula that conforms to the requirements of this article. This subdivision shall not be construed to prohibit an employer from offering a defined contribution plan on or after January 1, 2013, either with or without a defined benefit plan, whether or not the employer offered a defined contribution plan prior to that date.(f) (1) If, on or after January 1, 2013, the Cities of Brea and Fullerton form a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Article 1 (commencing with Section 6500) of Chapter 5), that joint powers authority may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of a common power, to which the employee is associated, by the joint powers authority to any employee of the City of Brea, the City of Fullerton, or a city described in paragraph (2) who is not a new member and subsequently is employed by the joint powers authority within 180 days of the city providing for the exercise of a common power, to which the employee was associated, by the joint powers authority.(2) On or before January 1, 2017, a city in Orange County that is contiguous to the City of Brea or the City of Fullerton may join the joint powers authority described in paragraph (1) but not more than three cities shall be permitted to join.(3) The formation of a joint powers authority on or after January 1, 2013, shall not act in a manner as to exempt a new employee or a new member, as defined by Section 7522.04, from the requirements of this article. New members may only participate in a defined benefit plan or formula that conforms to the requirements of this article.(g) (1) If, on or after January 1, 2013, the Belmont Fire Protection District, the Estero Municipal Improvement District, and the City of San Mateo form a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Article 1 (commencing with Section 6500) of Chapter 5), that joint powers authority may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of a common power, to which the employee is associated, by the joint powers authority to any employee of the Belmont Fire Protection District, the Estero Municipal Improvement District, and the City of San Mateo who is not a new member and subsequently is employed by the joint powers authority within 180 days of the agency providing for the exercise of a common power, to which the employee was associated, by the joint powers authority.(2) The formation of a joint powers authority on or after January 1, 2013, shall not act in a manner as to exempt a new employee or a new member, as defined by Section 7522.04, from the requirements of this article. New members may only participate in a defined benefit plan or formula that conforms to the requirements of this article.(h) The Judges Retirement System and the Judges Retirement System II shall not be required to adopt the defined benefit formula required by Section 7522.20 or 7522.25 or the compensation limitations defined in Section 7522.10.(i) This article shall not be construed to provide membership in any public retirement system for an individual who would not otherwise be eligible for membership under that systems applicable rules or laws.(j) On and after January 1, 2013, each public retirement system shall modify its plan or plans to comply with the requirements of this article and may adopt regulations or resolutions for this purpose.(k) On and after January 1, 2024, a county and a trial court that separate their joint contract into individual contracts pursuant to Section 20471.2 may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of the option to separate, provided that the employee subsequently does not otherwise meet the definition of a new employee. | |
| 433 | + | 7522.02. (a) (1) Notwithstanding any other law, except as provided in this article, on and after January 1, 2013, this article shall apply to all state and local public retirement systems and to their participating employers, including the Public Employees Retirement System, the State Teachers Retirement System, the Legislators Retirement System, the Judges Retirement System, the Judges Retirement System II, county and district retirement systems created pursuant to the County Employees Retirement Law of 1937 (Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3), independent public retirement systems, and to individual retirement plans offered by public employers. However, this article shall be subject to the Internal Revenue Code and Section 17 of Article XVI of the California Constitution. The administration of the requirements of this article shall comply with applicable provisions of the Internal Revenue Code and the Revenue and Taxation Code.(2) Notwithstanding paragraph (1), this article shall not apply to the entities described in Section 9 of Article IX of, and Sections 4 and 5 of Article XI of, the California Constitution, except to the extent that these entities continue to be participating employers in any retirement system governed by state statute. Accordingly, any retirement plan approved before January 1, 2013, by the voters of any entity excluded from coverage by this section shall not be affected by this article.(3) (A) Notwithstanding paragraph (1), this article shall not apply to a public employee whose interests are protected under Section 5333(b) of Title 49 of the United States Code until a federal district court rules that the United States Secretary of Labor, or their designee, erred in determining that the application of this article precludes certification under that section, or until January 1, 2016, whichever is sooner.(B) If a federal district court upholds the determination of the United States Secretary of Labor, or their designee, that application of this article precludes them from providing a certification under Section 5333(b) of Title 49 of the United States Code, this article shall not apply to a public employee specified in subparagraph (A).(4) Notwithstanding paragraph (1), this article shall not apply to a multiemployer plan authorized by Section 302(c)(5) of the federal Taft-Hartley Act (29 U.S.C. Sec. 186(c)(5)) if the public employer began participation in that plan prior to January 1, 2013, and the plan is regulated by the federal Employee Retirement Income Security Act of 1974 (29 U.S.C. Sec. 1001 et seq.).(b) The benefit plan required by this article shall apply to public employees who are new members as defined in Section 7522.04.(c) (1) Individuals who were employed by any public employer before January 1, 2013, and who became employed by a subsequent public employer for the first time on or after January 1, 2013, shall be subject to the retirement plan that would have been available to employees of the subsequent employer who were first employed by the subsequent employer on or before December 31, 2012, if the individual was subject to concurrent membership for which creditable service was performed in the previous six months or reciprocity established under any of the following provisions:(A) Article 5 (commencing with Section 20350) of Chapter 3 of Part 3 of Division 5 of Title 2.(B) Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3.(C) Any agreement between public retirement systems to provide reciprocity to members of the systems.(D) Section 22115.2 of the Education Code.(2) An individual who was employed before January 1, 2013, and who, without a separation from employment, changed employment positions and became subject to a different defined benefit plan in a different public retirement system offered by their employer shall be subject to that defined benefit plan as it would have been available to employees who were first employed on or before December 31, 2012.(d) If a public employer, before January 1, 2013, offers a defined benefit pension plan that provides a defined benefit formula with a lower benefit factor at normal retirement age and results in a lower normal cost than the defined benefit formula required by this article, that employer may continue to offer that defined benefit formula instead of the defined benefit formula required by this article, and shall not be subject to the requirements of Section 7522.10 for pensionable compensation subject to that formula. However, if the employer adopts a new defined benefit formula on or after January 1, 2013, that formula must conform to the requirements of this article or must be determined and certified by the retirement systems chief actuary and the retirement board to have no greater risk and no greater cost to the employer than the defined benefit formula required by this article and must be approved by the Legislature. New members of the defined benefit plan may only participate in the lower cost defined benefit formula that was in place before January 1, 2013, or a defined benefit formula that conforms to the requirements of this article or is approved by the Legislature as provided in this subdivision.(e) If a public employer, before January 1, 2013, offers a retirement benefit plan that consists solely of a defined contribution plan, that employer may continue to offer that plan instead of the defined benefit pension plan required by this article. However, if the employer adopts a new defined benefit pension plan or defined benefit formula on or after January 1, 2013, that plan or formula must conform to the requirements of this article or must be determined and certified by the retirement systems chief actuary and the systems board to have no greater risk and no greater cost to the employer than the defined benefit formula required by this article and must be approved by the Legislature. New members of the employers plan may only participate in the defined contribution plan that was in place before January 1, 2013, or a defined contribution plan or defined benefit formula that conforms to the requirements of this article. This subdivision shall not be construed to prohibit an employer from offering a defined contribution plan on or after January 1, 2013, either with or without a defined benefit plan, whether or not the employer offered a defined contribution plan prior to that date.(f) (1) If, on or after January 1, 2013, the Cities of Brea and Fullerton form a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Article 1 (commencing with Section 6500) of Chapter 5), that joint powers authority may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of a common power, to which the employee is associated, by the joint powers authority to any employee of the City of Brea, the City of Fullerton, or a city described in paragraph (2) who is not a new member and subsequently is employed by the joint powers authority within 180 days of the city providing for the exercise of a common power, to which the employee was associated, by the joint powers authority.(2) On or before January 1, 2017, a city in Orange County that is contiguous to the City of Brea or the City of Fullerton may join the joint powers authority described in paragraph (1) but not more than three cities shall be permitted to join.(3) The formation of a joint powers authority on or after January 1, 2013, shall not act in a manner as to exempt a new employee or a new member, as defined by Section 7522.04, from the requirements of this article. New members may only participate in a defined benefit plan or formula that conforms to the requirements of this article.(g) (1) If, on or after January 1, 2013, the Belmont Fire Protection District, the Estero Municipal Improvement District, and the City of San Mateo form a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Article 1 (commencing with Section 6500) of Chapter 5), that joint powers authority may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of a common power, to which the employee is associated, by the joint powers authority to any employee of the Belmont Fire Protection District, the Estero Municipal Improvement District, and the City of San Mateo who is not a new member and subsequently is employed by the joint powers authority within 180 days of the agency providing for the exercise of a common power, to which the employee was associated, by the joint powers authority.(2) The formation of a joint powers authority on or after January 1, 2013, shall not act in a manner as to exempt a new employee or a new member, as defined by Section 7522.04, from the requirements of this article. New members may only participate in a defined benefit plan or formula that conforms to the requirements of this article.(3)On and after January 1, 2024, a county and a trial court that separate their joint contract into individual contracts pursuant to Section 20471.2 may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of the option to separate, provided that the employee subsequently does not otherwise meet the definition of a new employee.(h) The Judges Retirement System and the Judges Retirement System II shall not be required to adopt the defined benefit formula required by Section 7522.20 or 7522.25 or the compensation limitations defined in Section 7522.10.(i) This article shall not be construed to provide membership in any public retirement system for an individual who would not otherwise be eligible for membership under that systems applicable rules or laws.(j) On and after January 1, 2013, each public retirement system shall modify its plan or plans to comply with the requirements of this article and may adopt regulations or resolutions for this purpose.(k) On and after January 1, 2024, a county and a trial court that separate their joint contract into individual contracts pursuant to Section 20471.2 may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of the option to separate, provided that the employee subsequently does not otherwise meet the definition of a new employee. | |
| 425 | 434 | ||
| 426 | - | 7522.02. (a) (1) Notwithstanding any other law, except as provided in this article, on and after January 1, 2013, this article shall apply to all state and local public retirement systems and to their participating employers, including the Public Employees Retirement System, the State Teachers Retirement System, the Legislators Retirement System, the Judges Retirement System, the Judges Retirement System II, county and district retirement systems created pursuant to the County Employees Retirement Law of 1937 (Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3), independent public retirement systems, and to individual retirement plans offered by public employers. However, this article shall be subject to the Internal Revenue Code and Section 17 of Article XVI of the California Constitution. The administration of the requirements of this article shall comply with applicable provisions of the Internal Revenue Code and the Revenue and Taxation Code.(2) Notwithstanding paragraph (1), this article shall not apply to the entities described in Section 9 of Article IX of, and Sections 4 and 5 of Article XI of, the California Constitution, except to the extent that these entities continue to be participating employers in any retirement system governed by state statute. Accordingly, any retirement plan approved before January 1, 2013, by the voters of any entity excluded from coverage by this section shall not be affected by this article.(3) (A) Notwithstanding paragraph (1), this article shall not apply to a public employee whose interests are protected under Section 5333(b) of Title 49 of the United States Code until a federal district court rules that the United States Secretary of Labor, or their designee, erred in determining that the application of this article precludes certification under that section, or until January 1, 2016, whichever is sooner.(B) If a federal district court upholds the determination of the United States Secretary of Labor, or their designee, that application of this article precludes them from providing a certification under Section 5333(b) of Title 49 of the United States Code, this article shall not apply to a public employee specified in subparagraph (A).(4) Notwithstanding paragraph (1), this article shall not apply to a multiemployer plan authorized by Section 302(c)(5) of the federal Taft-Hartley Act (29 U.S.C. Sec. 186(c)(5)) if the public employer began participation in that plan prior to January 1, 2013, and the plan is regulated by the federal Employee Retirement Income Security Act of 1974 (29 U.S.C. Sec. 1001 et seq.).(b) The benefit plan required by this article shall apply to public employees who are new members as defined in Section 7522.04.(c) (1) Individuals who were employed by any public employer before January 1, 2013, and who became employed by a subsequent public employer for the first time on or after January 1, 2013, shall be subject to the retirement plan that would have been available to employees of the subsequent employer who were first employed by the subsequent employer on or before December 31, 2012, if the individual was subject to concurrent membership for which creditable service was performed in the previous six months or reciprocity established under any of the following provisions:(A) Article 5 (commencing with Section 20350) of Chapter 3 of Part 3 of Division 5 of Title 2.(B) Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3.(C) Any agreement between public retirement systems to provide reciprocity to members of the systems.(D) Section 22115.2 of the Education Code.(2) An individual who was employed before January 1, 2013, and who, without a separation from employment, changed employment positions and became subject to a different defined benefit plan in a different public retirement system offered by their employer shall be subject to that defined benefit plan as it would have been available to employees who were first employed on or before December 31, 2012.(d) If a public employer, before January 1, 2013, offers a defined benefit pension plan that provides a defined benefit formula with a lower benefit factor at normal retirement age and results in a lower normal cost than the defined benefit formula required by this article, that employer may continue to offer that defined benefit formula instead of the defined benefit formula required by this article, and shall not be subject to the requirements of Section 7522.10 for pensionable compensation subject to that formula. However, if the employer adopts a new defined benefit formula on or after January 1, 2013, that formula must conform to the requirements of this article or must be determined and certified by the retirement systems chief actuary and the retirement board to have no greater risk and no greater cost to the employer than the defined benefit formula required by this article and must be approved by the Legislature. New members of the defined benefit plan may only participate in the lower cost defined benefit formula that was in place before January 1, 2013, or a defined benefit formula that conforms to the requirements of this article or is approved by the Legislature as provided in this subdivision.(e) If a public employer, before January 1, 2013, offers a retirement benefit plan that consists solely of a defined contribution plan, that employer may continue to offer that plan instead of the defined benefit pension plan required by this article. However, if the employer adopts a new defined benefit pension plan or defined benefit formula on or after January 1, 2013, that plan or formula must conform to the requirements of this article or must be determined and certified by the retirement systems chief actuary and the systems board to have no greater risk and no greater cost to the employer than the defined benefit formula required by this article and must be approved by the Legislature. New members of the employers plan may only participate in the defined contribution plan that was in place before January 1, 2013, or a defined contribution plan or defined benefit formula that conforms to the requirements of this article. This subdivision shall not be construed to prohibit an employer from offering a defined contribution plan on or after January 1, 2013, either with or without a defined benefit plan, whether or not the employer offered a defined contribution plan prior to that date.(f) (1) If, on or after January 1, 2013, the Cities of Brea and Fullerton form a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Article 1 (commencing with Section 6500) of Chapter 5), that joint powers authority may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of a common power, to which the employee is associated, by the joint powers authority to any employee of the City of Brea, the City of Fullerton, or a city described in paragraph (2) who is not a new member and subsequently is employed by the joint powers authority within 180 days of the city providing for the exercise of a common power, to which the employee was associated, by the joint powers authority.(2) On or before January 1, 2017, a city in Orange County that is contiguous to the City of Brea or the City of Fullerton may join the joint powers authority described in paragraph (1) but not more than three cities shall be permitted to join.(3) The formation of a joint powers authority on or after January 1, 2013, shall not act in a manner as to exempt a new employee or a new member, as defined by Section 7522.04, from the requirements of this article. New members may only participate in a defined benefit plan or formula that conforms to the requirements of this article.(g) (1) If, on or after January 1, 2013, the Belmont Fire Protection District, the Estero Municipal Improvement District, and the City of San Mateo form a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Article 1 (commencing with Section 6500) of Chapter 5), that joint powers authority may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of a common power, to which the employee is associated, by the joint powers authority to any employee of the Belmont Fire Protection District, the Estero Municipal Improvement District, and the City of San Mateo who is not a new member and subsequently is employed by the joint powers authority within 180 days of the agency providing for the exercise of a common power, to which the employee was associated, by the joint powers authority.(2) The formation of a joint powers authority on or after January 1, 2013, shall not act in a manner as to exempt a new employee or a new member, as defined by Section 7522.04, from the requirements of this article. New members may only participate in a defined benefit plan or formula that conforms to the requirements of this article.(h) The Judges Retirement System and the Judges Retirement System II shall not be required to adopt the defined benefit formula required by Section 7522.20 or 7522.25 or the compensation limitations defined in Section 7522.10.(i) This article shall not be construed to provide membership in any public retirement system for an individual who would not otherwise be eligible for membership under that systems applicable rules or laws.(j) On and after January 1, 2013, each public retirement system shall modify its plan or plans to comply with the requirements of this article and may adopt regulations or resolutions for this purpose.(k) On and after January 1, 2024, a county and a trial court that separate their joint contract into individual contracts pursuant to Section 20471.2 may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of the option to separate, provided that the employee subsequently does not otherwise meet the definition of a new employee. | |
| 435 | + | 7522.02. (a) (1) Notwithstanding any other law, except as provided in this article, on and after January 1, 2013, this article shall apply to all state and local public retirement systems and to their participating employers, including the Public Employees Retirement System, the State Teachers Retirement System, the Legislators Retirement System, the Judges Retirement System, the Judges Retirement System II, county and district retirement systems created pursuant to the County Employees Retirement Law of 1937 (Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3), independent public retirement systems, and to individual retirement plans offered by public employers. However, this article shall be subject to the Internal Revenue Code and Section 17 of Article XVI of the California Constitution. The administration of the requirements of this article shall comply with applicable provisions of the Internal Revenue Code and the Revenue and Taxation Code.(2) Notwithstanding paragraph (1), this article shall not apply to the entities described in Section 9 of Article IX of, and Sections 4 and 5 of Article XI of, the California Constitution, except to the extent that these entities continue to be participating employers in any retirement system governed by state statute. Accordingly, any retirement plan approved before January 1, 2013, by the voters of any entity excluded from coverage by this section shall not be affected by this article.(3) (A) Notwithstanding paragraph (1), this article shall not apply to a public employee whose interests are protected under Section 5333(b) of Title 49 of the United States Code until a federal district court rules that the United States Secretary of Labor, or their designee, erred in determining that the application of this article precludes certification under that section, or until January 1, 2016, whichever is sooner.(B) If a federal district court upholds the determination of the United States Secretary of Labor, or their designee, that application of this article precludes them from providing a certification under Section 5333(b) of Title 49 of the United States Code, this article shall not apply to a public employee specified in subparagraph (A).(4) Notwithstanding paragraph (1), this article shall not apply to a multiemployer plan authorized by Section 302(c)(5) of the federal Taft-Hartley Act (29 U.S.C. Sec. 186(c)(5)) if the public employer began participation in that plan prior to January 1, 2013, and the plan is regulated by the federal Employee Retirement Income Security Act of 1974 (29 U.S.C. Sec. 1001 et seq.).(b) The benefit plan required by this article shall apply to public employees who are new members as defined in Section 7522.04.(c) (1) Individuals who were employed by any public employer before January 1, 2013, and who became employed by a subsequent public employer for the first time on or after January 1, 2013, shall be subject to the retirement plan that would have been available to employees of the subsequent employer who were first employed by the subsequent employer on or before December 31, 2012, if the individual was subject to concurrent membership for which creditable service was performed in the previous six months or reciprocity established under any of the following provisions:(A) Article 5 (commencing with Section 20350) of Chapter 3 of Part 3 of Division 5 of Title 2.(B) Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3.(C) Any agreement between public retirement systems to provide reciprocity to members of the systems.(D) Section 22115.2 of the Education Code.(2) An individual who was employed before January 1, 2013, and who, without a separation from employment, changed employment positions and became subject to a different defined benefit plan in a different public retirement system offered by their employer shall be subject to that defined benefit plan as it would have been available to employees who were first employed on or before December 31, 2012.(d) If a public employer, before January 1, 2013, offers a defined benefit pension plan that provides a defined benefit formula with a lower benefit factor at normal retirement age and results in a lower normal cost than the defined benefit formula required by this article, that employer may continue to offer that defined benefit formula instead of the defined benefit formula required by this article, and shall not be subject to the requirements of Section 7522.10 for pensionable compensation subject to that formula. However, if the employer adopts a new defined benefit formula on or after January 1, 2013, that formula must conform to the requirements of this article or must be determined and certified by the retirement systems chief actuary and the retirement board to have no greater risk and no greater cost to the employer than the defined benefit formula required by this article and must be approved by the Legislature. New members of the defined benefit plan may only participate in the lower cost defined benefit formula that was in place before January 1, 2013, or a defined benefit formula that conforms to the requirements of this article or is approved by the Legislature as provided in this subdivision.(e) If a public employer, before January 1, 2013, offers a retirement benefit plan that consists solely of a defined contribution plan, that employer may continue to offer that plan instead of the defined benefit pension plan required by this article. However, if the employer adopts a new defined benefit pension plan or defined benefit formula on or after January 1, 2013, that plan or formula must conform to the requirements of this article or must be determined and certified by the retirement systems chief actuary and the systems board to have no greater risk and no greater cost to the employer than the defined benefit formula required by this article and must be approved by the Legislature. New members of the employers plan may only participate in the defined contribution plan that was in place before January 1, 2013, or a defined contribution plan or defined benefit formula that conforms to the requirements of this article. This subdivision shall not be construed to prohibit an employer from offering a defined contribution plan on or after January 1, 2013, either with or without a defined benefit plan, whether or not the employer offered a defined contribution plan prior to that date.(f) (1) If, on or after January 1, 2013, the Cities of Brea and Fullerton form a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Article 1 (commencing with Section 6500) of Chapter 5), that joint powers authority may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of a common power, to which the employee is associated, by the joint powers authority to any employee of the City of Brea, the City of Fullerton, or a city described in paragraph (2) who is not a new member and subsequently is employed by the joint powers authority within 180 days of the city providing for the exercise of a common power, to which the employee was associated, by the joint powers authority.(2) On or before January 1, 2017, a city in Orange County that is contiguous to the City of Brea or the City of Fullerton may join the joint powers authority described in paragraph (1) but not more than three cities shall be permitted to join.(3) The formation of a joint powers authority on or after January 1, 2013, shall not act in a manner as to exempt a new employee or a new member, as defined by Section 7522.04, from the requirements of this article. New members may only participate in a defined benefit plan or formula that conforms to the requirements of this article.(g) (1) If, on or after January 1, 2013, the Belmont Fire Protection District, the Estero Municipal Improvement District, and the City of San Mateo form a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Article 1 (commencing with Section 6500) of Chapter 5), that joint powers authority may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of a common power, to which the employee is associated, by the joint powers authority to any employee of the Belmont Fire Protection District, the Estero Municipal Improvement District, and the City of San Mateo who is not a new member and subsequently is employed by the joint powers authority within 180 days of the agency providing for the exercise of a common power, to which the employee was associated, by the joint powers authority.(2) The formation of a joint powers authority on or after January 1, 2013, shall not act in a manner as to exempt a new employee or a new member, as defined by Section 7522.04, from the requirements of this article. New members may only participate in a defined benefit plan or formula that conforms to the requirements of this article.(3)On and after January 1, 2024, a county and a trial court that separate their joint contract into individual contracts pursuant to Section 20471.2 may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of the option to separate, provided that the employee subsequently does not otherwise meet the definition of a new employee.(h) The Judges Retirement System and the Judges Retirement System II shall not be required to adopt the defined benefit formula required by Section 7522.20 or 7522.25 or the compensation limitations defined in Section 7522.10.(i) This article shall not be construed to provide membership in any public retirement system for an individual who would not otherwise be eligible for membership under that systems applicable rules or laws.(j) On and after January 1, 2013, each public retirement system shall modify its plan or plans to comply with the requirements of this article and may adopt regulations or resolutions for this purpose.(k) On and after January 1, 2024, a county and a trial court that separate their joint contract into individual contracts pursuant to Section 20471.2 may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of the option to separate, provided that the employee subsequently does not otherwise meet the definition of a new employee. | |
| 427 | 436 | ||
| 428 | - | 7522.02. (a) (1) Notwithstanding any other law, except as provided in this article, on and after January 1, 2013, this article shall apply to all state and local public retirement systems and to their participating employers, including the Public Employees Retirement System, the State Teachers Retirement System, the Legislators Retirement System, the Judges Retirement System, the Judges Retirement System II, county and district retirement systems created pursuant to the County Employees Retirement Law of 1937 (Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3), independent public retirement systems, and to individual retirement plans offered by public employers. However, this article shall be subject to the Internal Revenue Code and Section 17 of Article XVI of the California Constitution. The administration of the requirements of this article shall comply with applicable provisions of the Internal Revenue Code and the Revenue and Taxation Code.(2) Notwithstanding paragraph (1), this article shall not apply to the entities described in Section 9 of Article IX of, and Sections 4 and 5 of Article XI of, the California Constitution, except to the extent that these entities continue to be participating employers in any retirement system governed by state statute. Accordingly, any retirement plan approved before January 1, 2013, by the voters of any entity excluded from coverage by this section shall not be affected by this article.(3) (A) Notwithstanding paragraph (1), this article shall not apply to a public employee whose interests are protected under Section 5333(b) of Title 49 of the United States Code until a federal district court rules that the United States Secretary of Labor, or their designee, erred in determining that the application of this article precludes certification under that section, or until January 1, 2016, whichever is sooner.(B) If a federal district court upholds the determination of the United States Secretary of Labor, or their designee, that application of this article precludes them from providing a certification under Section 5333(b) of Title 49 of the United States Code, this article shall not apply to a public employee specified in subparagraph (A).(4) Notwithstanding paragraph (1), this article shall not apply to a multiemployer plan authorized by Section 302(c)(5) of the federal Taft-Hartley Act (29 U.S.C. Sec. 186(c)(5)) if the public employer began participation in that plan prior to January 1, 2013, and the plan is regulated by the federal Employee Retirement Income Security Act of 1974 (29 U.S.C. Sec. 1001 et seq.).(b) The benefit plan required by this article shall apply to public employees who are new members as defined in Section 7522.04.(c) (1) Individuals who were employed by any public employer before January 1, 2013, and who became employed by a subsequent public employer for the first time on or after January 1, 2013, shall be subject to the retirement plan that would have been available to employees of the subsequent employer who were first employed by the subsequent employer on or before December 31, 2012, if the individual was subject to concurrent membership for which creditable service was performed in the previous six months or reciprocity established under any of the following provisions:(A) Article 5 (commencing with Section 20350) of Chapter 3 of Part 3 of Division 5 of Title 2.(B) Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3.(C) Any agreement between public retirement systems to provide reciprocity to members of the systems.(D) Section 22115.2 of the Education Code.(2) An individual who was employed before January 1, 2013, and who, without a separation from employment, changed employment positions and became subject to a different defined benefit plan in a different public retirement system offered by their employer shall be subject to that defined benefit plan as it would have been available to employees who were first employed on or before December 31, 2012.(d) If a public employer, before January 1, 2013, offers a defined benefit pension plan that provides a defined benefit formula with a lower benefit factor at normal retirement age and results in a lower normal cost than the defined benefit formula required by this article, that employer may continue to offer that defined benefit formula instead of the defined benefit formula required by this article, and shall not be subject to the requirements of Section 7522.10 for pensionable compensation subject to that formula. However, if the employer adopts a new defined benefit formula on or after January 1, 2013, that formula must conform to the requirements of this article or must be determined and certified by the retirement systems chief actuary and the retirement board to have no greater risk and no greater cost to the employer than the defined benefit formula required by this article and must be approved by the Legislature. New members of the defined benefit plan may only participate in the lower cost defined benefit formula that was in place before January 1, 2013, or a defined benefit formula that conforms to the requirements of this article or is approved by the Legislature as provided in this subdivision.(e) If a public employer, before January 1, 2013, offers a retirement benefit plan that consists solely of a defined contribution plan, that employer may continue to offer that plan instead of the defined benefit pension plan required by this article. However, if the employer adopts a new defined benefit pension plan or defined benefit formula on or after January 1, 2013, that plan or formula must conform to the requirements of this article or must be determined and certified by the retirement systems chief actuary and the systems board to have no greater risk and no greater cost to the employer than the defined benefit formula required by this article and must be approved by the Legislature. New members of the employers plan may only participate in the defined contribution plan that was in place before January 1, 2013, or a defined contribution plan or defined benefit formula that conforms to the requirements of this article. This subdivision shall not be construed to prohibit an employer from offering a defined contribution plan on or after January 1, 2013, either with or without a defined benefit plan, whether or not the employer offered a defined contribution plan prior to that date.(f) (1) If, on or after January 1, 2013, the Cities of Brea and Fullerton form a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Article 1 (commencing with Section 6500) of Chapter 5), that joint powers authority may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of a common power, to which the employee is associated, by the joint powers authority to any employee of the City of Brea, the City of Fullerton, or a city described in paragraph (2) who is not a new member and subsequently is employed by the joint powers authority within 180 days of the city providing for the exercise of a common power, to which the employee was associated, by the joint powers authority.(2) On or before January 1, 2017, a city in Orange County that is contiguous to the City of Brea or the City of Fullerton may join the joint powers authority described in paragraph (1) but not more than three cities shall be permitted to join.(3) The formation of a joint powers authority on or after January 1, 2013, shall not act in a manner as to exempt a new employee or a new member, as defined by Section 7522.04, from the requirements of this article. New members may only participate in a defined benefit plan or formula that conforms to the requirements of this article.(g) (1) If, on or after January 1, 2013, the Belmont Fire Protection District, the Estero Municipal Improvement District, and the City of San Mateo form a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Article 1 (commencing with Section 6500) of Chapter 5), that joint powers authority may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of a common power, to which the employee is associated, by the joint powers authority to any employee of the Belmont Fire Protection District, the Estero Municipal Improvement District, and the City of San Mateo who is not a new member and subsequently is employed by the joint powers authority within 180 days of the agency providing for the exercise of a common power, to which the employee was associated, by the joint powers authority.(2) The formation of a joint powers authority on or after January 1, 2013, shall not act in a manner as to exempt a new employee or a new member, as defined by Section 7522.04, from the requirements of this article. New members may only participate in a defined benefit plan or formula that conforms to the requirements of this article.(h) The Judges Retirement System and the Judges Retirement System II shall not be required to adopt the defined benefit formula required by Section 7522.20 or 7522.25 or the compensation limitations defined in Section 7522.10.(i) This article shall not be construed to provide membership in any public retirement system for an individual who would not otherwise be eligible for membership under that systems applicable rules or laws.(j) On and after January 1, 2013, each public retirement system shall modify its plan or plans to comply with the requirements of this article and may adopt regulations or resolutions for this purpose.(k) On and after January 1, 2024, a county and a trial court that separate their joint contract into individual contracts pursuant to Section 20471.2 may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of the option to separate, provided that the employee subsequently does not otherwise meet the definition of a new employee. | |
| 437 | + | 7522.02. (a) (1) Notwithstanding any other law, except as provided in this article, on and after January 1, 2013, this article shall apply to all state and local public retirement systems and to their participating employers, including the Public Employees Retirement System, the State Teachers Retirement System, the Legislators Retirement System, the Judges Retirement System, the Judges Retirement System II, county and district retirement systems created pursuant to the County Employees Retirement Law of 1937 (Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3), independent public retirement systems, and to individual retirement plans offered by public employers. However, this article shall be subject to the Internal Revenue Code and Section 17 of Article XVI of the California Constitution. The administration of the requirements of this article shall comply with applicable provisions of the Internal Revenue Code and the Revenue and Taxation Code.(2) Notwithstanding paragraph (1), this article shall not apply to the entities described in Section 9 of Article IX of, and Sections 4 and 5 of Article XI of, the California Constitution, except to the extent that these entities continue to be participating employers in any retirement system governed by state statute. Accordingly, any retirement plan approved before January 1, 2013, by the voters of any entity excluded from coverage by this section shall not be affected by this article.(3) (A) Notwithstanding paragraph (1), this article shall not apply to a public employee whose interests are protected under Section 5333(b) of Title 49 of the United States Code until a federal district court rules that the United States Secretary of Labor, or their designee, erred in determining that the application of this article precludes certification under that section, or until January 1, 2016, whichever is sooner.(B) If a federal district court upholds the determination of the United States Secretary of Labor, or their designee, that application of this article precludes them from providing a certification under Section 5333(b) of Title 49 of the United States Code, this article shall not apply to a public employee specified in subparagraph (A).(4) Notwithstanding paragraph (1), this article shall not apply to a multiemployer plan authorized by Section 302(c)(5) of the federal Taft-Hartley Act (29 U.S.C. Sec. 186(c)(5)) if the public employer began participation in that plan prior to January 1, 2013, and the plan is regulated by the federal Employee Retirement Income Security Act of 1974 (29 U.S.C. Sec. 1001 et seq.).(b) The benefit plan required by this article shall apply to public employees who are new members as defined in Section 7522.04.(c) (1) Individuals who were employed by any public employer before January 1, 2013, and who became employed by a subsequent public employer for the first time on or after January 1, 2013, shall be subject to the retirement plan that would have been available to employees of the subsequent employer who were first employed by the subsequent employer on or before December 31, 2012, if the individual was subject to concurrent membership for which creditable service was performed in the previous six months or reciprocity established under any of the following provisions:(A) Article 5 (commencing with Section 20350) of Chapter 3 of Part 3 of Division 5 of Title 2.(B) Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3.(C) Any agreement between public retirement systems to provide reciprocity to members of the systems.(D) Section 22115.2 of the Education Code.(2) An individual who was employed before January 1, 2013, and who, without a separation from employment, changed employment positions and became subject to a different defined benefit plan in a different public retirement system offered by their employer shall be subject to that defined benefit plan as it would have been available to employees who were first employed on or before December 31, 2012.(d) If a public employer, before January 1, 2013, offers a defined benefit pension plan that provides a defined benefit formula with a lower benefit factor at normal retirement age and results in a lower normal cost than the defined benefit formula required by this article, that employer may continue to offer that defined benefit formula instead of the defined benefit formula required by this article, and shall not be subject to the requirements of Section 7522.10 for pensionable compensation subject to that formula. However, if the employer adopts a new defined benefit formula on or after January 1, 2013, that formula must conform to the requirements of this article or must be determined and certified by the retirement systems chief actuary and the retirement board to have no greater risk and no greater cost to the employer than the defined benefit formula required by this article and must be approved by the Legislature. New members of the defined benefit plan may only participate in the lower cost defined benefit formula that was in place before January 1, 2013, or a defined benefit formula that conforms to the requirements of this article or is approved by the Legislature as provided in this subdivision.(e) If a public employer, before January 1, 2013, offers a retirement benefit plan that consists solely of a defined contribution plan, that employer may continue to offer that plan instead of the defined benefit pension plan required by this article. However, if the employer adopts a new defined benefit pension plan or defined benefit formula on or after January 1, 2013, that plan or formula must conform to the requirements of this article or must be determined and certified by the retirement systems chief actuary and the systems board to have no greater risk and no greater cost to the employer than the defined benefit formula required by this article and must be approved by the Legislature. New members of the employers plan may only participate in the defined contribution plan that was in place before January 1, 2013, or a defined contribution plan or defined benefit formula that conforms to the requirements of this article. This subdivision shall not be construed to prohibit an employer from offering a defined contribution plan on or after January 1, 2013, either with or without a defined benefit plan, whether or not the employer offered a defined contribution plan prior to that date.(f) (1) If, on or after January 1, 2013, the Cities of Brea and Fullerton form a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Article 1 (commencing with Section 6500) of Chapter 5), that joint powers authority may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of a common power, to which the employee is associated, by the joint powers authority to any employee of the City of Brea, the City of Fullerton, or a city described in paragraph (2) who is not a new member and subsequently is employed by the joint powers authority within 180 days of the city providing for the exercise of a common power, to which the employee was associated, by the joint powers authority.(2) On or before January 1, 2017, a city in Orange County that is contiguous to the City of Brea or the City of Fullerton may join the joint powers authority described in paragraph (1) but not more than three cities shall be permitted to join.(3) The formation of a joint powers authority on or after January 1, 2013, shall not act in a manner as to exempt a new employee or a new member, as defined by Section 7522.04, from the requirements of this article. New members may only participate in a defined benefit plan or formula that conforms to the requirements of this article.(g) (1) If, on or after January 1, 2013, the Belmont Fire Protection District, the Estero Municipal Improvement District, and the City of San Mateo form a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Article 1 (commencing with Section 6500) of Chapter 5), that joint powers authority may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of a common power, to which the employee is associated, by the joint powers authority to any employee of the Belmont Fire Protection District, the Estero Municipal Improvement District, and the City of San Mateo who is not a new member and subsequently is employed by the joint powers authority within 180 days of the agency providing for the exercise of a common power, to which the employee was associated, by the joint powers authority.(2) The formation of a joint powers authority on or after January 1, 2013, shall not act in a manner as to exempt a new employee or a new member, as defined by Section 7522.04, from the requirements of this article. New members may only participate in a defined benefit plan or formula that conforms to the requirements of this article.(3)On and after January 1, 2024, a county and a trial court that separate their joint contract into individual contracts pursuant to Section 20471.2 may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of the option to separate, provided that the employee subsequently does not otherwise meet the definition of a new employee.(h) The Judges Retirement System and the Judges Retirement System II shall not be required to adopt the defined benefit formula required by Section 7522.20 or 7522.25 or the compensation limitations defined in Section 7522.10.(i) This article shall not be construed to provide membership in any public retirement system for an individual who would not otherwise be eligible for membership under that systems applicable rules or laws.(j) On and after January 1, 2013, each public retirement system shall modify its plan or plans to comply with the requirements of this article and may adopt regulations or resolutions for this purpose.(k) On and after January 1, 2024, a county and a trial court that separate their joint contract into individual contracts pursuant to Section 20471.2 may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of the option to separate, provided that the employee subsequently does not otherwise meet the definition of a new employee. | |
| 438 | + | ||
| 439 | + | ||
| 429 | 440 | ||
| 430 | 441 | 7522.02. (a) (1) Notwithstanding any other law, except as provided in this article, on and after January 1, 2013, this article shall apply to all state and local public retirement systems and to their participating employers, including the Public Employees Retirement System, the State Teachers Retirement System, the Legislators Retirement System, the Judges Retirement System, the Judges Retirement System II, county and district retirement systems created pursuant to the County Employees Retirement Law of 1937 (Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3), independent public retirement systems, and to individual retirement plans offered by public employers. However, this article shall be subject to the Internal Revenue Code and Section 17 of Article XVI of the California Constitution. The administration of the requirements of this article shall comply with applicable provisions of the Internal Revenue Code and the Revenue and Taxation Code. | |
| 431 | - | ||
| 432 | - | ###### 7522.02. | |
| 433 | 442 | ||
| 434 | 443 | (2) Notwithstanding paragraph (1), this article shall not apply to the entities described in Section 9 of Article IX of, and Sections 4 and 5 of Article XI of, the California Constitution, except to the extent that these entities continue to be participating employers in any retirement system governed by state statute. Accordingly, any retirement plan approved before January 1, 2013, by the voters of any entity excluded from coverage by this section shall not be affected by this article. | |
| 435 | 444 | ||
| 436 | 445 | (3) (A) Notwithstanding paragraph (1), this article shall not apply to a public employee whose interests are protected under Section 5333(b) of Title 49 of the United States Code until a federal district court rules that the United States Secretary of Labor, or their designee, erred in determining that the application of this article precludes certification under that section, or until January 1, 2016, whichever is sooner. | |
| 437 | 446 | ||
| 438 | 447 | (B) If a federal district court upholds the determination of the United States Secretary of Labor, or their designee, that application of this article precludes them from providing a certification under Section 5333(b) of Title 49 of the United States Code, this article shall not apply to a public employee specified in subparagraph (A). | |
| 439 | 448 | ||
| 440 | 449 | (4) Notwithstanding paragraph (1), this article shall not apply to a multiemployer plan authorized by Section 302(c)(5) of the federal Taft-Hartley Act (29 U.S.C. Sec. 186(c)(5)) if the public employer began participation in that plan prior to January 1, 2013, and the plan is regulated by the federal Employee Retirement Income Security Act of 1974 (29 U.S.C. Sec. 1001 et seq.). | |
| 441 | 450 | ||
| 442 | 451 | (b) The benefit plan required by this article shall apply to public employees who are new members as defined in Section 7522.04. | |
| 443 | 452 | ||
| 444 | 453 | (c) (1) Individuals who were employed by any public employer before January 1, 2013, and who became employed by a subsequent public employer for the first time on or after January 1, 2013, shall be subject to the retirement plan that would have been available to employees of the subsequent employer who were first employed by the subsequent employer on or before December 31, 2012, if the individual was subject to concurrent membership for which creditable service was performed in the previous six months or reciprocity established under any of the following provisions: | |
| 445 | 454 | ||
| 446 | 455 | (A) Article 5 (commencing with Section 20350) of Chapter 3 of Part 3 of Division 5 of Title 2. | |
| 447 | 456 | ||
| 448 | 457 | (B) Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3. | |
| 449 | 458 | ||
| 450 | 459 | (C) Any agreement between public retirement systems to provide reciprocity to members of the systems. | |
| 451 | 460 | ||
| 452 | 461 | (D) Section 22115.2 of the Education Code. | |
| 453 | 462 | ||
| 454 | 463 | (2) An individual who was employed before January 1, 2013, and who, without a separation from employment, changed employment positions and became subject to a different defined benefit plan in a different public retirement system offered by their employer shall be subject to that defined benefit plan as it would have been available to employees who were first employed on or before December 31, 2012. | |
| 455 | 464 | ||
| 456 | 465 | (d) If a public employer, before January 1, 2013, offers a defined benefit pension plan that provides a defined benefit formula with a lower benefit factor at normal retirement age and results in a lower normal cost than the defined benefit formula required by this article, that employer may continue to offer that defined benefit formula instead of the defined benefit formula required by this article, and shall not be subject to the requirements of Section 7522.10 for pensionable compensation subject to that formula. However, if the employer adopts a new defined benefit formula on or after January 1, 2013, that formula must conform to the requirements of this article or must be determined and certified by the retirement systems chief actuary and the retirement board to have no greater risk and no greater cost to the employer than the defined benefit formula required by this article and must be approved by the Legislature. New members of the defined benefit plan may only participate in the lower cost defined benefit formula that was in place before January 1, 2013, or a defined benefit formula that conforms to the requirements of this article or is approved by the Legislature as provided in this subdivision. | |
| 457 | 466 | ||
| 458 | 467 | (e) If a public employer, before January 1, 2013, offers a retirement benefit plan that consists solely of a defined contribution plan, that employer may continue to offer that plan instead of the defined benefit pension plan required by this article. However, if the employer adopts a new defined benefit pension plan or defined benefit formula on or after January 1, 2013, that plan or formula must conform to the requirements of this article or must be determined and certified by the retirement systems chief actuary and the systems board to have no greater risk and no greater cost to the employer than the defined benefit formula required by this article and must be approved by the Legislature. New members of the employers plan may only participate in the defined contribution plan that was in place before January 1, 2013, or a defined contribution plan or defined benefit formula that conforms to the requirements of this article. This subdivision shall not be construed to prohibit an employer from offering a defined contribution plan on or after January 1, 2013, either with or without a defined benefit plan, whether or not the employer offered a defined contribution plan prior to that date. | |
| 459 | 468 | ||
| 460 | 469 | (f) (1) If, on or after January 1, 2013, the Cities of Brea and Fullerton form a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Article 1 (commencing with Section 6500) of Chapter 5), that joint powers authority may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of a common power, to which the employee is associated, by the joint powers authority to any employee of the City of Brea, the City of Fullerton, or a city described in paragraph (2) who is not a new member and subsequently is employed by the joint powers authority within 180 days of the city providing for the exercise of a common power, to which the employee was associated, by the joint powers authority. | |
| 461 | 470 | ||
| 462 | 471 | (2) On or before January 1, 2017, a city in Orange County that is contiguous to the City of Brea or the City of Fullerton may join the joint powers authority described in paragraph (1) but not more than three cities shall be permitted to join. | |
| 463 | 472 | ||
| 464 | 473 | (3) The formation of a joint powers authority on or after January 1, 2013, shall not act in a manner as to exempt a new employee or a new member, as defined by Section 7522.04, from the requirements of this article. New members may only participate in a defined benefit plan or formula that conforms to the requirements of this article. | |
| 465 | 474 | ||
| 466 | 475 | (g) (1) If, on or after January 1, 2013, the Belmont Fire Protection District, the Estero Municipal Improvement District, and the City of San Mateo form a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Article 1 (commencing with Section 6500) of Chapter 5), that joint powers authority may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of a common power, to which the employee is associated, by the joint powers authority to any employee of the Belmont Fire Protection District, the Estero Municipal Improvement District, and the City of San Mateo who is not a new member and subsequently is employed by the joint powers authority within 180 days of the agency providing for the exercise of a common power, to which the employee was associated, by the joint powers authority. | |
| 467 | 476 | ||
| 468 | 477 | (2) The formation of a joint powers authority on or after January 1, 2013, shall not act in a manner as to exempt a new employee or a new member, as defined by Section 7522.04, from the requirements of this article. New members may only participate in a defined benefit plan or formula that conforms to the requirements of this article. | |
| 469 | 478 | ||
| 479 | + | (3)On and after January 1, 2024, a county and a trial court that separate their joint contract into individual contracts pursuant to Section 20471.2 may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of the option to separate, provided that the employee subsequently does not otherwise meet the definition of a new employee. | |
| 480 | + | ||
| 481 | + | ||
| 482 | + | ||
| 470 | 483 | (h) The Judges Retirement System and the Judges Retirement System II shall not be required to adopt the defined benefit formula required by Section 7522.20 or 7522.25 or the compensation limitations defined in Section 7522.10. | |
| 471 | 484 | ||
| 472 | 485 | (i) This article shall not be construed to provide membership in any public retirement system for an individual who would not otherwise be eligible for membership under that systems applicable rules or laws. | |
| 473 | 486 | ||
| 474 | 487 | (j) On and after January 1, 2013, each public retirement system shall modify its plan or plans to comply with the requirements of this article and may adopt regulations or resolutions for this purpose. | |
| 475 | 488 | ||
| 476 | 489 | (k) On and after January 1, 2024, a county and a trial court that separate their joint contract into individual contracts pursuant to Section 20471.2 may provide employees the defined benefit plan or formula that those employees received from their respective employers prior to the exercise of the option to separate, provided that the employee subsequently does not otherwise meet the definition of a new employee. | |
| 477 | 490 | ||
| 478 | 491 | SEC. 11. Section 20034 of the Government Code is amended to read:20034. The highest annual average compensation during any consecutive 12- or 36-month period of employment as a member of any retirement system maintained by the university shall be considered compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, by a member of this system for purposes of computing final compensation for the member providing the member retires concurrently under both systems. | |
| 479 | 492 | ||
| 480 | 493 | SEC. 11. Section 20034 of the Government Code is amended to read: | |
| 481 | 494 | ||
| 482 | 495 | ### SEC. 11. | |
| 483 | 496 | ||
| 484 | 497 | 20034. The highest annual average compensation during any consecutive 12- or 36-month period of employment as a member of any retirement system maintained by the university shall be considered compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, by a member of this system for purposes of computing final compensation for the member providing the member retires concurrently under both systems. | |
| 485 | 498 | ||
| 486 | 499 | 20034. The highest annual average compensation during any consecutive 12- or 36-month period of employment as a member of any retirement system maintained by the university shall be considered compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, by a member of this system for purposes of computing final compensation for the member providing the member retires concurrently under both systems. | |
| 487 | 500 | ||
| 488 | 501 | 20034. The highest annual average compensation during any consecutive 12- or 36-month period of employment as a member of any retirement system maintained by the university shall be considered compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, by a member of this system for purposes of computing final compensation for the member providing the member retires concurrently under both systems. | |
| 489 | 502 | ||
| 503 | + | ||
| 504 | + | ||
| 490 | 505 | 20034. The highest annual average compensation during any consecutive 12- or 36-month period of employment as a member of any retirement system maintained by the university shall be considered compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, by a member of this system for purposes of computing final compensation for the member providing the member retires concurrently under both systems. | |
| 491 | - | ||
| 492 | - | ###### 20034. | |
| 493 | 506 | ||
| 494 | 507 | SEC. 12. Section 20069 of the Government Code is amended to read:20069. (a) State service means service rendered as an employee or officer (employed, appointed, or elected) of the state, the California Institute for Regenerative Medicine and the officers and employees of its governing body, the university, a school employer, or a contracting agency, for compensation, and only while receiving compensation from that employer therefor, except as provided in Article 4 (commencing with Section 20990) of Chapter 11.(b) State service, solely for purposes of qualification for benefits and retirement allowances under this system, shall also include service rendered as an officer or employee of a county if the salary for the service constitutes compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, by a member of this system under Section 20638.(c) State service, except for purposes of qualification for health or dental benefits, shall also include compensated service rendered by an officer, warrant officer, or a person of the enlisted ranks of the California National Guard who has elected to become a member pursuant to Section 20326 and who has not canceled their membership pursuant to Section 20327. | |
| 495 | 508 | ||
| 496 | 509 | SEC. 12. Section 20069 of the Government Code is amended to read: | |
| 497 | 510 | ||
| 498 | 511 | ### SEC. 12. | |
| 499 | 512 | ||
| 500 | 513 | 20069. (a) State service means service rendered as an employee or officer (employed, appointed, or elected) of the state, the California Institute for Regenerative Medicine and the officers and employees of its governing body, the university, a school employer, or a contracting agency, for compensation, and only while receiving compensation from that employer therefor, except as provided in Article 4 (commencing with Section 20990) of Chapter 11.(b) State service, solely for purposes of qualification for benefits and retirement allowances under this system, shall also include service rendered as an officer or employee of a county if the salary for the service constitutes compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, by a member of this system under Section 20638.(c) State service, except for purposes of qualification for health or dental benefits, shall also include compensated service rendered by an officer, warrant officer, or a person of the enlisted ranks of the California National Guard who has elected to become a member pursuant to Section 20326 and who has not canceled their membership pursuant to Section 20327. | |
| 501 | 514 | ||
| 502 | 515 | 20069. (a) State service means service rendered as an employee or officer (employed, appointed, or elected) of the state, the California Institute for Regenerative Medicine and the officers and employees of its governing body, the university, a school employer, or a contracting agency, for compensation, and only while receiving compensation from that employer therefor, except as provided in Article 4 (commencing with Section 20990) of Chapter 11.(b) State service, solely for purposes of qualification for benefits and retirement allowances under this system, shall also include service rendered as an officer or employee of a county if the salary for the service constitutes compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, by a member of this system under Section 20638.(c) State service, except for purposes of qualification for health or dental benefits, shall also include compensated service rendered by an officer, warrant officer, or a person of the enlisted ranks of the California National Guard who has elected to become a member pursuant to Section 20326 and who has not canceled their membership pursuant to Section 20327. | |
| 503 | 516 | ||
| 504 | 517 | 20069. (a) State service means service rendered as an employee or officer (employed, appointed, or elected) of the state, the California Institute for Regenerative Medicine and the officers and employees of its governing body, the university, a school employer, or a contracting agency, for compensation, and only while receiving compensation from that employer therefor, except as provided in Article 4 (commencing with Section 20990) of Chapter 11.(b) State service, solely for purposes of qualification for benefits and retirement allowances under this system, shall also include service rendered as an officer or employee of a county if the salary for the service constitutes compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, by a member of this system under Section 20638.(c) State service, except for purposes of qualification for health or dental benefits, shall also include compensated service rendered by an officer, warrant officer, or a person of the enlisted ranks of the California National Guard who has elected to become a member pursuant to Section 20326 and who has not canceled their membership pursuant to Section 20327. | |
| 505 | 518 | ||
| 519 | + | ||
| 520 | + | ||
| 506 | 521 | 20069. (a) State service means service rendered as an employee or officer (employed, appointed, or elected) of the state, the California Institute for Regenerative Medicine and the officers and employees of its governing body, the university, a school employer, or a contracting agency, for compensation, and only while receiving compensation from that employer therefor, except as provided in Article 4 (commencing with Section 20990) of Chapter 11. | |
| 507 | - | ||
| 508 | - | ###### 20069. | |
| 509 | 522 | ||
| 510 | 523 | (b) State service, solely for purposes of qualification for benefits and retirement allowances under this system, shall also include service rendered as an officer or employee of a county if the salary for the service constitutes compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, by a member of this system under Section 20638. | |
| 511 | 524 | ||
| 512 | 525 | (c) State service, except for purposes of qualification for health or dental benefits, shall also include compensated service rendered by an officer, warrant officer, or a person of the enlisted ranks of the California National Guard who has elected to become a member pursuant to Section 20326 and who has not canceled their membership pursuant to Section 20327. | |
| 513 | 526 | ||
| 514 | 527 | SEC. 13. Section 20638 of the Government Code is amended to read:20638. The highest annual average compensation during any consecutive 12- or 36-month period of employment as a member of a county retirement system shall be considered compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, by a member of this system for purposes of computing final compensation for the member provided:(a) (1) Entry into employment in which the person became a member in one system occurred on or after October 1, 1957, and within 90 days of discontinuance of employment as a member of the other system.(2) This subdivision shall not deny the benefit of this section to any person retiring after October 1, 1963, who entered membership prior to October 1, 1957, if the person entered the employment in which they became a member within 90 days of termination of employment in which they were a member of the other system, and they became a member within seven months of entry into employment, or, if an employee of a district as defined in Section 31468, became a member at the time the district was included in a county retirement system.(b) The member retires concurrently under both systems and is credited with the period of service under the county system at the time of retirement. | |
| 515 | 528 | ||
| 516 | 529 | SEC. 13. Section 20638 of the Government Code is amended to read: | |
| 517 | 530 | ||
| 518 | 531 | ### SEC. 13. | |
| 519 | 532 | ||
| 520 | 533 | 20638. The highest annual average compensation during any consecutive 12- or 36-month period of employment as a member of a county retirement system shall be considered compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, by a member of this system for purposes of computing final compensation for the member provided:(a) (1) Entry into employment in which the person became a member in one system occurred on or after October 1, 1957, and within 90 days of discontinuance of employment as a member of the other system.(2) This subdivision shall not deny the benefit of this section to any person retiring after October 1, 1963, who entered membership prior to October 1, 1957, if the person entered the employment in which they became a member within 90 days of termination of employment in which they were a member of the other system, and they became a member within seven months of entry into employment, or, if an employee of a district as defined in Section 31468, became a member at the time the district was included in a county retirement system.(b) The member retires concurrently under both systems and is credited with the period of service under the county system at the time of retirement. | |
| 521 | 534 | ||
| 522 | 535 | 20638. The highest annual average compensation during any consecutive 12- or 36-month period of employment as a member of a county retirement system shall be considered compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, by a member of this system for purposes of computing final compensation for the member provided:(a) (1) Entry into employment in which the person became a member in one system occurred on or after October 1, 1957, and within 90 days of discontinuance of employment as a member of the other system.(2) This subdivision shall not deny the benefit of this section to any person retiring after October 1, 1963, who entered membership prior to October 1, 1957, if the person entered the employment in which they became a member within 90 days of termination of employment in which they were a member of the other system, and they became a member within seven months of entry into employment, or, if an employee of a district as defined in Section 31468, became a member at the time the district was included in a county retirement system.(b) The member retires concurrently under both systems and is credited with the period of service under the county system at the time of retirement. | |
| 523 | 536 | ||
| 524 | 537 | 20638. The highest annual average compensation during any consecutive 12- or 36-month period of employment as a member of a county retirement system shall be considered compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, by a member of this system for purposes of computing final compensation for the member provided:(a) (1) Entry into employment in which the person became a member in one system occurred on or after October 1, 1957, and within 90 days of discontinuance of employment as a member of the other system.(2) This subdivision shall not deny the benefit of this section to any person retiring after October 1, 1963, who entered membership prior to October 1, 1957, if the person entered the employment in which they became a member within 90 days of termination of employment in which they were a member of the other system, and they became a member within seven months of entry into employment, or, if an employee of a district as defined in Section 31468, became a member at the time the district was included in a county retirement system.(b) The member retires concurrently under both systems and is credited with the period of service under the county system at the time of retirement. | |
| 525 | 538 | ||
| 539 | + | ||
| 540 | + | ||
| 526 | 541 | 20638. The highest annual average compensation during any consecutive 12- or 36-month period of employment as a member of a county retirement system shall be considered compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, by a member of this system for purposes of computing final compensation for the member provided: | |
| 527 | - | ||
| 528 | - | ###### 20638. | |
| 529 | 542 | ||
| 530 | 543 | (a) (1) Entry into employment in which the person became a member in one system occurred on or after October 1, 1957, and within 90 days of discontinuance of employment as a member of the other system. | |
| 531 | 544 | ||
| 532 | 545 | (2) This subdivision shall not deny the benefit of this section to any person retiring after October 1, 1963, who entered membership prior to October 1, 1957, if the person entered the employment in which they became a member within 90 days of termination of employment in which they were a member of the other system, and they became a member within seven months of entry into employment, or, if an employee of a district as defined in Section 31468, became a member at the time the district was included in a county retirement system. | |
| 533 | 546 | ||
| 534 | 547 | (b) The member retires concurrently under both systems and is credited with the period of service under the county system at the time of retirement. | |
| 535 | 548 | ||
| 536 | 549 | SEC. 14. Section 20639 of the Government Code is amended to read:20639. The compensation earnable during any period of service as a member of the Judges Retirement System, the Judges Retirement System II, the Legislators Retirement System, or the Defined Benefit Program of the State Teachers Retirement Plan shall be considered compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, as a member of this system for purposes of computing final compensation for the member, if the member retires concurrently under both systems.A member shall be deemed to have retired concurrently under this system and under the Defined Benefit Program of the State Teachers Retirement Plan, if the member is enrolled as a disabled member under the Defined Benefit Program of the State Teachers Retirement Plan and for retirement under this system on the same effective date. | |
| 537 | 550 | ||
| 538 | 551 | SEC. 14. Section 20639 of the Government Code is amended to read: | |
| 539 | 552 | ||
| 540 | 553 | ### SEC. 14. | |
| 541 | 554 | ||
| 542 | 555 | 20639. The compensation earnable during any period of service as a member of the Judges Retirement System, the Judges Retirement System II, the Legislators Retirement System, or the Defined Benefit Program of the State Teachers Retirement Plan shall be considered compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, as a member of this system for purposes of computing final compensation for the member, if the member retires concurrently under both systems.A member shall be deemed to have retired concurrently under this system and under the Defined Benefit Program of the State Teachers Retirement Plan, if the member is enrolled as a disabled member under the Defined Benefit Program of the State Teachers Retirement Plan and for retirement under this system on the same effective date. | |
| 543 | 556 | ||
| 544 | 557 | 20639. The compensation earnable during any period of service as a member of the Judges Retirement System, the Judges Retirement System II, the Legislators Retirement System, or the Defined Benefit Program of the State Teachers Retirement Plan shall be considered compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, as a member of this system for purposes of computing final compensation for the member, if the member retires concurrently under both systems.A member shall be deemed to have retired concurrently under this system and under the Defined Benefit Program of the State Teachers Retirement Plan, if the member is enrolled as a disabled member under the Defined Benefit Program of the State Teachers Retirement Plan and for retirement under this system on the same effective date. | |
| 545 | 558 | ||
| 546 | 559 | 20639. The compensation earnable during any period of service as a member of the Judges Retirement System, the Judges Retirement System II, the Legislators Retirement System, or the Defined Benefit Program of the State Teachers Retirement Plan shall be considered compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, as a member of this system for purposes of computing final compensation for the member, if the member retires concurrently under both systems.A member shall be deemed to have retired concurrently under this system and under the Defined Benefit Program of the State Teachers Retirement Plan, if the member is enrolled as a disabled member under the Defined Benefit Program of the State Teachers Retirement Plan and for retirement under this system on the same effective date. | |
| 547 | 560 | ||
| 561 | + | ||
| 562 | + | ||
| 548 | 563 | 20639. The compensation earnable during any period of service as a member of the Judges Retirement System, the Judges Retirement System II, the Legislators Retirement System, or the Defined Benefit Program of the State Teachers Retirement Plan shall be considered compensation earnable or pensionable compensation pursuant to Section 7522.34, whichever is applicable, as a member of this system for purposes of computing final compensation for the member, if the member retires concurrently under both systems. | |
| 549 | - | ||
| 550 | - | ###### 20639. | |
| 551 | 564 | ||
| 552 | 565 | A member shall be deemed to have retired concurrently under this system and under the Defined Benefit Program of the State Teachers Retirement Plan, if the member is enrolled as a disabled member under the Defined Benefit Program of the State Teachers Retirement Plan and for retirement under this system on the same effective date. | |
| 553 | 566 | ||
| 554 | 567 | SEC. 15. Section 31462.05 of the Government Code is amended to read:31462.05. (a) For a member who is subject to the California Public Employees Pension Reform Act of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of Division 7 of Title 1) for all or any portion of their membership in the county retirement system, final compensation as defined in Section 7522.32 shall apply. The computation for any absence shall be based on the pensionable compensation of the position held by the member at the beginning of the absence.(b) If a member has less than three years of service, that members final compensation shall be determined by dividing the total pensionable compensation by the number of months of service credited to the member and multiplying by 12. | |
| 555 | 568 | ||
| 556 | 569 | SEC. 15. Section 31462.05 of the Government Code is amended to read: | |
| 557 | 570 | ||
| 558 | 571 | ### SEC. 15. | |
| 559 | 572 | ||
| 560 | 573 | 31462.05. (a) For a member who is subject to the California Public Employees Pension Reform Act of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of Division 7 of Title 1) for all or any portion of their membership in the county retirement system, final compensation as defined in Section 7522.32 shall apply. The computation for any absence shall be based on the pensionable compensation of the position held by the member at the beginning of the absence.(b) If a member has less than three years of service, that members final compensation shall be determined by dividing the total pensionable compensation by the number of months of service credited to the member and multiplying by 12. | |
| 561 | 574 | ||
| 562 | 575 | 31462.05. (a) For a member who is subject to the California Public Employees Pension Reform Act of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of Division 7 of Title 1) for all or any portion of their membership in the county retirement system, final compensation as defined in Section 7522.32 shall apply. The computation for any absence shall be based on the pensionable compensation of the position held by the member at the beginning of the absence.(b) If a member has less than three years of service, that members final compensation shall be determined by dividing the total pensionable compensation by the number of months of service credited to the member and multiplying by 12. | |
| 563 | 576 | ||
| 564 | 577 | 31462.05. (a) For a member who is subject to the California Public Employees Pension Reform Act of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of Division 7 of Title 1) for all or any portion of their membership in the county retirement system, final compensation as defined in Section 7522.32 shall apply. The computation for any absence shall be based on the pensionable compensation of the position held by the member at the beginning of the absence.(b) If a member has less than three years of service, that members final compensation shall be determined by dividing the total pensionable compensation by the number of months of service credited to the member and multiplying by 12. | |
| 565 | 578 | ||
| 579 | + | ||
| 580 | + | ||
| 566 | 581 | 31462.05. (a) For a member who is subject to the California Public Employees Pension Reform Act of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of Division 7 of Title 1) for all or any portion of their membership in the county retirement system, final compensation as defined in Section 7522.32 shall apply. The computation for any absence shall be based on the pensionable compensation of the position held by the member at the beginning of the absence. | |
| 567 | - | ||
| 568 | - | ###### 31462.05. | |
| 569 | 582 | ||
| 570 | 583 | (b) If a member has less than three years of service, that members final compensation shall be determined by dividing the total pensionable compensation by the number of months of service credited to the member and multiplying by 12. | |
| 571 | 584 | ||
| 572 | 585 | SEC. 16. Section 31470.14 of the Government Code is amended to read:31470.14. (a) Local prosecutors, local public defenders, and local public defender investigators are eligible.(b) Except as provided in subdivision (c) and notwithstanding Sections 31639.7 and 31639.75, past service as a general member shall be converted to safety service if the past service was rendered in a position that has subsequently been reclassified as a safety position pursuant to this section before January 1, 2013. On or after January 1, 2013, any enhancement to safety service shall be subject to Section 7522.44. For local prosecutors, as described in paragraph (2) of subdivision (a) of Section 31469.2, service in the office of a district attorney and a local child support agency shall be considered service for the district attorney for purposes of this section.(c) Notwithstanding any other provision of this chapter, within 90 days after this section becomes operative in the county, or on the first day of the calendar month following entrance into service, whichever is later, a local prosecutor, local public defender, or local public defender investigator may file a written election not to become a local safety member pursuant to this section.(d) Notwithstanding any other provision of this chapter, local prosecutors, local public defenders, and local public defender investigators shall be subject to the benefit formula contained in Section 31664 or 31664.2, or any other benefit formula applicable to safety members that does not provide benefits greater than those benefits provided under Section 31664.2, as designated in the resolution described in subdivision (e). A local prosecutor, local public defender, or local public defender investigator shall not be deemed to be a county peace officer, as defined in Section 31469.1, for any purpose under this chapter.(e) This section shall not be operative in a county unless and until the board of supervisors, by resolution adopted by majority vote, makes this section operative in the county. A resolution to make this section operative in the county shall include all local prosecutors, local public defenders, and local public defender investigators described in Section 31469.2.(f) A provision in a memorandum of understanding that an employer is not obligated to meet and confer regarding wages, hours, or conditions of employment during the term of the memorandum shall not be construed to preclude meetings regarding the provisions of this section between an employer and local prosecutors, local public defenders, and local public defender investigators prior to the expiration of the term of the memorandum of understanding.(g) This section does not apply to any person described in Section 31469.2 who dies prior to the date this section becomes applicable in the county. | |
| 573 | 586 | ||
| 574 | 587 | SEC. 16. Section 31470.14 of the Government Code is amended to read: | |
| 575 | 588 | ||
| 576 | 589 | ### SEC. 16. | |
| 577 | 590 | ||
| 578 | 591 | 31470.14. (a) Local prosecutors, local public defenders, and local public defender investigators are eligible.(b) Except as provided in subdivision (c) and notwithstanding Sections 31639.7 and 31639.75, past service as a general member shall be converted to safety service if the past service was rendered in a position that has subsequently been reclassified as a safety position pursuant to this section before January 1, 2013. On or after January 1, 2013, any enhancement to safety service shall be subject to Section 7522.44. For local prosecutors, as described in paragraph (2) of subdivision (a) of Section 31469.2, service in the office of a district attorney and a local child support agency shall be considered service for the district attorney for purposes of this section.(c) Notwithstanding any other provision of this chapter, within 90 days after this section becomes operative in the county, or on the first day of the calendar month following entrance into service, whichever is later, a local prosecutor, local public defender, or local public defender investigator may file a written election not to become a local safety member pursuant to this section.(d) Notwithstanding any other provision of this chapter, local prosecutors, local public defenders, and local public defender investigators shall be subject to the benefit formula contained in Section 31664 or 31664.2, or any other benefit formula applicable to safety members that does not provide benefits greater than those benefits provided under Section 31664.2, as designated in the resolution described in subdivision (e). A local prosecutor, local public defender, or local public defender investigator shall not be deemed to be a county peace officer, as defined in Section 31469.1, for any purpose under this chapter.(e) This section shall not be operative in a county unless and until the board of supervisors, by resolution adopted by majority vote, makes this section operative in the county. A resolution to make this section operative in the county shall include all local prosecutors, local public defenders, and local public defender investigators described in Section 31469.2.(f) A provision in a memorandum of understanding that an employer is not obligated to meet and confer regarding wages, hours, or conditions of employment during the term of the memorandum shall not be construed to preclude meetings regarding the provisions of this section between an employer and local prosecutors, local public defenders, and local public defender investigators prior to the expiration of the term of the memorandum of understanding.(g) This section does not apply to any person described in Section 31469.2 who dies prior to the date this section becomes applicable in the county. | |
| 579 | 592 | ||
| 580 | 593 | 31470.14. (a) Local prosecutors, local public defenders, and local public defender investigators are eligible.(b) Except as provided in subdivision (c) and notwithstanding Sections 31639.7 and 31639.75, past service as a general member shall be converted to safety service if the past service was rendered in a position that has subsequently been reclassified as a safety position pursuant to this section before January 1, 2013. On or after January 1, 2013, any enhancement to safety service shall be subject to Section 7522.44. For local prosecutors, as described in paragraph (2) of subdivision (a) of Section 31469.2, service in the office of a district attorney and a local child support agency shall be considered service for the district attorney for purposes of this section.(c) Notwithstanding any other provision of this chapter, within 90 days after this section becomes operative in the county, or on the first day of the calendar month following entrance into service, whichever is later, a local prosecutor, local public defender, or local public defender investigator may file a written election not to become a local safety member pursuant to this section.(d) Notwithstanding any other provision of this chapter, local prosecutors, local public defenders, and local public defender investigators shall be subject to the benefit formula contained in Section 31664 or 31664.2, or any other benefit formula applicable to safety members that does not provide benefits greater than those benefits provided under Section 31664.2, as designated in the resolution described in subdivision (e). A local prosecutor, local public defender, or local public defender investigator shall not be deemed to be a county peace officer, as defined in Section 31469.1, for any purpose under this chapter.(e) This section shall not be operative in a county unless and until the board of supervisors, by resolution adopted by majority vote, makes this section operative in the county. A resolution to make this section operative in the county shall include all local prosecutors, local public defenders, and local public defender investigators described in Section 31469.2.(f) A provision in a memorandum of understanding that an employer is not obligated to meet and confer regarding wages, hours, or conditions of employment during the term of the memorandum shall not be construed to preclude meetings regarding the provisions of this section between an employer and local prosecutors, local public defenders, and local public defender investigators prior to the expiration of the term of the memorandum of understanding.(g) This section does not apply to any person described in Section 31469.2 who dies prior to the date this section becomes applicable in the county. | |
| 581 | 594 | ||
| 582 | 595 | 31470.14. (a) Local prosecutors, local public defenders, and local public defender investigators are eligible.(b) Except as provided in subdivision (c) and notwithstanding Sections 31639.7 and 31639.75, past service as a general member shall be converted to safety service if the past service was rendered in a position that has subsequently been reclassified as a safety position pursuant to this section before January 1, 2013. On or after January 1, 2013, any enhancement to safety service shall be subject to Section 7522.44. For local prosecutors, as described in paragraph (2) of subdivision (a) of Section 31469.2, service in the office of a district attorney and a local child support agency shall be considered service for the district attorney for purposes of this section.(c) Notwithstanding any other provision of this chapter, within 90 days after this section becomes operative in the county, or on the first day of the calendar month following entrance into service, whichever is later, a local prosecutor, local public defender, or local public defender investigator may file a written election not to become a local safety member pursuant to this section.(d) Notwithstanding any other provision of this chapter, local prosecutors, local public defenders, and local public defender investigators shall be subject to the benefit formula contained in Section 31664 or 31664.2, or any other benefit formula applicable to safety members that does not provide benefits greater than those benefits provided under Section 31664.2, as designated in the resolution described in subdivision (e). A local prosecutor, local public defender, or local public defender investigator shall not be deemed to be a county peace officer, as defined in Section 31469.1, for any purpose under this chapter.(e) This section shall not be operative in a county unless and until the board of supervisors, by resolution adopted by majority vote, makes this section operative in the county. A resolution to make this section operative in the county shall include all local prosecutors, local public defenders, and local public defender investigators described in Section 31469.2.(f) A provision in a memorandum of understanding that an employer is not obligated to meet and confer regarding wages, hours, or conditions of employment during the term of the memorandum shall not be construed to preclude meetings regarding the provisions of this section between an employer and local prosecutors, local public defenders, and local public defender investigators prior to the expiration of the term of the memorandum of understanding.(g) This section does not apply to any person described in Section 31469.2 who dies prior to the date this section becomes applicable in the county. | |
| 583 | 596 | ||
| 597 | + | ||
| 598 | + | ||
| 584 | 599 | 31470.14. (a) Local prosecutors, local public defenders, and local public defender investigators are eligible. | |
| 585 | - | ||
| 586 | - | ###### 31470.14. | |
| 587 | 600 | ||
| 588 | 601 | (b) Except as provided in subdivision (c) and notwithstanding Sections 31639.7 and 31639.75, past service as a general member shall be converted to safety service if the past service was rendered in a position that has subsequently been reclassified as a safety position pursuant to this section before January 1, 2013. On or after January 1, 2013, any enhancement to safety service shall be subject to Section 7522.44. For local prosecutors, as described in paragraph (2) of subdivision (a) of Section 31469.2, service in the office of a district attorney and a local child support agency shall be considered service for the district attorney for purposes of this section. | |
| 589 | 602 | ||
| 590 | 603 | (c) Notwithstanding any other provision of this chapter, within 90 days after this section becomes operative in the county, or on the first day of the calendar month following entrance into service, whichever is later, a local prosecutor, local public defender, or local public defender investigator may file a written election not to become a local safety member pursuant to this section. | |
| 591 | 604 | ||
| 592 | 605 | (d) Notwithstanding any other provision of this chapter, local prosecutors, local public defenders, and local public defender investigators shall be subject to the benefit formula contained in Section 31664 or 31664.2, or any other benefit formula applicable to safety members that does not provide benefits greater than those benefits provided under Section 31664.2, as designated in the resolution described in subdivision (e). A local prosecutor, local public defender, or local public defender investigator shall not be deemed to be a county peace officer, as defined in Section 31469.1, for any purpose under this chapter. | |
| 593 | 606 | ||
| 594 | 607 | (e) This section shall not be operative in a county unless and until the board of supervisors, by resolution adopted by majority vote, makes this section operative in the county. A resolution to make this section operative in the county shall include all local prosecutors, local public defenders, and local public defender investigators described in Section 31469.2. | |
| 595 | 608 | ||
| 596 | 609 | (f) A provision in a memorandum of understanding that an employer is not obligated to meet and confer regarding wages, hours, or conditions of employment during the term of the memorandum shall not be construed to preclude meetings regarding the provisions of this section between an employer and local prosecutors, local public defenders, and local public defender investigators prior to the expiration of the term of the memorandum of understanding. | |
| 597 | 610 | ||
| 598 | 611 | (g) This section does not apply to any person described in Section 31469.2 who dies prior to the date this section becomes applicable in the county. | |
| 599 | 612 | ||
| 600 | 613 | SEC. 17. Section 31680.9 of the Government Code is amended to read:31680.9. (a) A person who has been retired under the retirement system, for service or for disability, may not be employed in any capacity thereafter by the county or a district of the retirement system unless the person has first been reinstated from retirement pursuant to this chapter, or unless the employment, without reinstatement, is authorized by this article or the Public Employees Pension Reform Act of 2013. A retired person whose employment without reinstatement is authorized by this article or the Public Employees Pension Reform Act shall acquire no service credit or retirement rights under this part with respect to the employment.(b) Any retired member employed in violation of Section 31680.2, 31680.3, 31680.6, or 7522.56 shall do all of the following:(1) Reimburse the retirement system for any retirement allowance received during the period or periods of employment that are in violation of law. The retirement allowance that was paid in violation of law shall be considered an overpayment subject to collection by the retirement system.(2) Only if reinstated, pay to the retirement system an amount of money equal to the employee contributions that would otherwise have been paid during the period or periods of unlawful employment, plus interest thereon.(3) Contribute toward reimbursement of the retirement system for reasonable administrative expenses incurred in responding to this situation, to the extent the member is determined by the retirement system administrator to be at fault.(c) Any public employer that employs a retired member in violation of Section 31680.2, 31680.3, 31680.6, or 7522.56 shall do both of the following:(1) Only if the retired member is reinstated, pay to the retirement system an amount of money equal to employer contributions that would otherwise have been paid for the period or periods of time that the member is employed in violation of this article, plus interest thereon.(2) Contribute toward reimbursement of the retirement system for reasonable administrative expenses incurred in responding to this situation, to the extent the employer is determined by the administrator of the retirement system to be at fault.(d) If an employer fails to report, in a format determined by the system for the administrative recordkeeping purposes of the system, a retired member employed in any capacity, without reinstatement, within 30 days of the effective date of hire, the board may assess the employer a fee of two hundred dollars ($200) per retired member per month until the information is reported.(e) If an employer fails to report the pay rate and number of hours worked of a retired member employed in any capacity, without reinstatement, at periods determined by the system, the board may assess the employer a fee of two hundred dollars ($200) per retired member per month until the information is reported.(f) An employer shall not pass on to an employee any fees assessed pursuant to subdivisions (d) and (e).(g) The employer shall provide written notice to the employee, by an appropriate mechanism, including by first-class mail or email, before the employee is within 10 business days or 80 hours of the period of time included in Section 31680.2, 31680.3, 31680.6, or 7522.56. | |
| 601 | 614 | ||
| 602 | 615 | SEC. 17. Section 31680.9 of the Government Code is amended to read: | |
| 603 | 616 | ||
| 604 | 617 | ### SEC. 17. | |
| 605 | 618 | ||
| 606 | 619 | 31680.9. (a) A person who has been retired under the retirement system, for service or for disability, may not be employed in any capacity thereafter by the county or a district of the retirement system unless the person has first been reinstated from retirement pursuant to this chapter, or unless the employment, without reinstatement, is authorized by this article or the Public Employees Pension Reform Act of 2013. A retired person whose employment without reinstatement is authorized by this article or the Public Employees Pension Reform Act shall acquire no service credit or retirement rights under this part with respect to the employment.(b) Any retired member employed in violation of Section 31680.2, 31680.3, 31680.6, or 7522.56 shall do all of the following:(1) Reimburse the retirement system for any retirement allowance received during the period or periods of employment that are in violation of law. The retirement allowance that was paid in violation of law shall be considered an overpayment subject to collection by the retirement system.(2) Only if reinstated, pay to the retirement system an amount of money equal to the employee contributions that would otherwise have been paid during the period or periods of unlawful employment, plus interest thereon.(3) Contribute toward reimbursement of the retirement system for reasonable administrative expenses incurred in responding to this situation, to the extent the member is determined by the retirement system administrator to be at fault.(c) Any public employer that employs a retired member in violation of Section 31680.2, 31680.3, 31680.6, or 7522.56 shall do both of the following:(1) Only if the retired member is reinstated, pay to the retirement system an amount of money equal to employer contributions that would otherwise have been paid for the period or periods of time that the member is employed in violation of this article, plus interest thereon.(2) Contribute toward reimbursement of the retirement system for reasonable administrative expenses incurred in responding to this situation, to the extent the employer is determined by the administrator of the retirement system to be at fault.(d) If an employer fails to report, in a format determined by the system for the administrative recordkeeping purposes of the system, a retired member employed in any capacity, without reinstatement, within 30 days of the effective date of hire, the board may assess the employer a fee of two hundred dollars ($200) per retired member per month until the information is reported.(e) If an employer fails to report the pay rate and number of hours worked of a retired member employed in any capacity, without reinstatement, at periods determined by the system, the board may assess the employer a fee of two hundred dollars ($200) per retired member per month until the information is reported.(f) An employer shall not pass on to an employee any fees assessed pursuant to subdivisions (d) and (e).(g) The employer shall provide written notice to the employee, by an appropriate mechanism, including by first-class mail or email, before the employee is within 10 business days or 80 hours of the period of time included in Section 31680.2, 31680.3, 31680.6, or 7522.56. | |
| 607 | 620 | ||
| 608 | 621 | 31680.9. (a) A person who has been retired under the retirement system, for service or for disability, may not be employed in any capacity thereafter by the county or a district of the retirement system unless the person has first been reinstated from retirement pursuant to this chapter, or unless the employment, without reinstatement, is authorized by this article or the Public Employees Pension Reform Act of 2013. A retired person whose employment without reinstatement is authorized by this article or the Public Employees Pension Reform Act shall acquire no service credit or retirement rights under this part with respect to the employment.(b) Any retired member employed in violation of Section 31680.2, 31680.3, 31680.6, or 7522.56 shall do all of the following:(1) Reimburse the retirement system for any retirement allowance received during the period or periods of employment that are in violation of law. The retirement allowance that was paid in violation of law shall be considered an overpayment subject to collection by the retirement system.(2) Only if reinstated, pay to the retirement system an amount of money equal to the employee contributions that would otherwise have been paid during the period or periods of unlawful employment, plus interest thereon.(3) Contribute toward reimbursement of the retirement system for reasonable administrative expenses incurred in responding to this situation, to the extent the member is determined by the retirement system administrator to be at fault.(c) Any public employer that employs a retired member in violation of Section 31680.2, 31680.3, 31680.6, or 7522.56 shall do both of the following:(1) Only if the retired member is reinstated, pay to the retirement system an amount of money equal to employer contributions that would otherwise have been paid for the period or periods of time that the member is employed in violation of this article, plus interest thereon.(2) Contribute toward reimbursement of the retirement system for reasonable administrative expenses incurred in responding to this situation, to the extent the employer is determined by the administrator of the retirement system to be at fault.(d) If an employer fails to report, in a format determined by the system for the administrative recordkeeping purposes of the system, a retired member employed in any capacity, without reinstatement, within 30 days of the effective date of hire, the board may assess the employer a fee of two hundred dollars ($200) per retired member per month until the information is reported.(e) If an employer fails to report the pay rate and number of hours worked of a retired member employed in any capacity, without reinstatement, at periods determined by the system, the board may assess the employer a fee of two hundred dollars ($200) per retired member per month until the information is reported.(f) An employer shall not pass on to an employee any fees assessed pursuant to subdivisions (d) and (e).(g) The employer shall provide written notice to the employee, by an appropriate mechanism, including by first-class mail or email, before the employee is within 10 business days or 80 hours of the period of time included in Section 31680.2, 31680.3, 31680.6, or 7522.56. | |
| 609 | 622 | ||
| 610 | 623 | 31680.9. (a) A person who has been retired under the retirement system, for service or for disability, may not be employed in any capacity thereafter by the county or a district of the retirement system unless the person has first been reinstated from retirement pursuant to this chapter, or unless the employment, without reinstatement, is authorized by this article or the Public Employees Pension Reform Act of 2013. A retired person whose employment without reinstatement is authorized by this article or the Public Employees Pension Reform Act shall acquire no service credit or retirement rights under this part with respect to the employment.(b) Any retired member employed in violation of Section 31680.2, 31680.3, 31680.6, or 7522.56 shall do all of the following:(1) Reimburse the retirement system for any retirement allowance received during the period or periods of employment that are in violation of law. The retirement allowance that was paid in violation of law shall be considered an overpayment subject to collection by the retirement system.(2) Only if reinstated, pay to the retirement system an amount of money equal to the employee contributions that would otherwise have been paid during the period or periods of unlawful employment, plus interest thereon.(3) Contribute toward reimbursement of the retirement system for reasonable administrative expenses incurred in responding to this situation, to the extent the member is determined by the retirement system administrator to be at fault.(c) Any public employer that employs a retired member in violation of Section 31680.2, 31680.3, 31680.6, or 7522.56 shall do both of the following:(1) Only if the retired member is reinstated, pay to the retirement system an amount of money equal to employer contributions that would otherwise have been paid for the period or periods of time that the member is employed in violation of this article, plus interest thereon.(2) Contribute toward reimbursement of the retirement system for reasonable administrative expenses incurred in responding to this situation, to the extent the employer is determined by the administrator of the retirement system to be at fault.(d) If an employer fails to report, in a format determined by the system for the administrative recordkeeping purposes of the system, a retired member employed in any capacity, without reinstatement, within 30 days of the effective date of hire, the board may assess the employer a fee of two hundred dollars ($200) per retired member per month until the information is reported.(e) If an employer fails to report the pay rate and number of hours worked of a retired member employed in any capacity, without reinstatement, at periods determined by the system, the board may assess the employer a fee of two hundred dollars ($200) per retired member per month until the information is reported.(f) An employer shall not pass on to an employee any fees assessed pursuant to subdivisions (d) and (e).(g) The employer shall provide written notice to the employee, by an appropriate mechanism, including by first-class mail or email, before the employee is within 10 business days or 80 hours of the period of time included in Section 31680.2, 31680.3, 31680.6, or 7522.56. | |
| 611 | 624 | ||
| 625 | + | ||
| 626 | + | ||
| 612 | 627 | 31680.9. (a) A person who has been retired under the retirement system, for service or for disability, may not be employed in any capacity thereafter by the county or a district of the retirement system unless the person has first been reinstated from retirement pursuant to this chapter, or unless the employment, without reinstatement, is authorized by this article or the Public Employees Pension Reform Act of 2013. A retired person whose employment without reinstatement is authorized by this article or the Public Employees Pension Reform Act shall acquire no service credit or retirement rights under this part with respect to the employment. | |
| 613 | - | ||
| 614 | - | ###### 31680.9. | |
| 615 | 628 | ||
| 616 | 629 | (b) Any retired member employed in violation of Section 31680.2, 31680.3, 31680.6, or 7522.56 shall do all of the following: | |
| 617 | 630 | ||
| 618 | 631 | (1) Reimburse the retirement system for any retirement allowance received during the period or periods of employment that are in violation of law. The retirement allowance that was paid in violation of law shall be considered an overpayment subject to collection by the retirement system. | |
| 619 | 632 | ||
| 620 | 633 | (2) Only if reinstated, pay to the retirement system an amount of money equal to the employee contributions that would otherwise have been paid during the period or periods of unlawful employment, plus interest thereon. | |
| 621 | 634 | ||
| 622 | 635 | (3) Contribute toward reimbursement of the retirement system for reasonable administrative expenses incurred in responding to this situation, to the extent the member is determined by the retirement system administrator to be at fault. | |
| 623 | 636 | ||
| 624 | 637 | (c) Any public employer that employs a retired member in violation of Section 31680.2, 31680.3, 31680.6, or 7522.56 shall do both of the following: | |
| 625 | 638 | ||
| 626 | 639 | (1) Only if the retired member is reinstated, pay to the retirement system an amount of money equal to employer contributions that would otherwise have been paid for the period or periods of time that the member is employed in violation of this article, plus interest thereon. | |
| 627 | 640 | ||
| 628 | 641 | (2) Contribute toward reimbursement of the retirement system for reasonable administrative expenses incurred in responding to this situation, to the extent the employer is determined by the administrator of the retirement system to be at fault. | |
| 629 | 642 | ||
| 630 | 643 | (d) If an employer fails to report, in a format determined by the system for the administrative recordkeeping purposes of the system, a retired member employed in any capacity, without reinstatement, within 30 days of the effective date of hire, the board may assess the employer a fee of two hundred dollars ($200) per retired member per month until the information is reported. | |
| 631 | 644 | ||
| 632 | 645 | (e) If an employer fails to report the pay rate and number of hours worked of a retired member employed in any capacity, without reinstatement, at periods determined by the system, the board may assess the employer a fee of two hundred dollars ($200) per retired member per month until the information is reported. | |
| 633 | 646 | ||
| 634 | 647 | (f) An employer shall not pass on to an employee any fees assessed pursuant to subdivisions (d) and (e). | |
| 635 | 648 | ||
| 636 | 649 | (g) The employer shall provide written notice to the employee, by an appropriate mechanism, including by first-class mail or email, before the employee is within 10 business days or 80 hours of the period of time included in Section 31680.2, 31680.3, 31680.6, or 7522.56. |