Requires eligibility checklist and audit for enrollment in PERS of certain public employees who provide professional services; imposes fine on certifying officer or supervisor for ineligible enrollments.
Apart from imposing new certification obligations, A109 establishes an audit program mandated by the board of trustees of the PERS, set to commence within 60 days of the bill's enactment. This program will continuously review public employers to verify the eligibility of already enrolled public officers and employees, focusing particularly on those who were enrolled before the bill takes effect. This audit mechanism aims to ensure adherence to the new regulations and provides a framework for oversight in the enrollment process.
Assembly Bill A109 aims to enhance the integrity of enrollment processes within the Public Employees' Retirement System (PERS) by introducing stringent certification requirements for public officers and employees who provide professional services such as attorneys, engineers, accountants, auditors, physicians, and architects. The bill mandates that certifying officers complete a detailed certification at the time of enrollment, asserting the employee's status rather than that of an independent contractor. This is intended to prevent improper enrollments and safeguard the PERS from potential abuses.
The bill also imposes civil penalties on certifying officers or their supervisors who knowingly violate provisions related to enrollment. These penalties range from $1,000 for initial violations to $5,000 for repeated violations within ten years. Critics may argue that this could create undue pressure and fear among certifying officers, potentially affecting their decision-making process regarding employee statuses. Moreover, questions about the administrative burden of the new processes and audits have been raised, which might complicate existing workflows in public institutions.
This legislation aligns with recommendations from the Office of the State Comptroller aimed at preventing improper participation by professional service providers in the state pension system. By enforcing compliance through certifications and audits, A109 seeks to uphold the system's integrity and ensure that only appropriately qualified individuals benefit from the public retirement programs.