California Acts of the 2003 Legislative Session
AB 1585, Chapter 520
BILL NUMBER: AB 1585 CHAPTERED 09/25/03 CHAPTER 520 FILED WITH SECRETARY OF STATE SEPTEMBER 25, 2003 APPROVED BY GOVERNOR SEPTEMBER 24, 2003 PASSED THE ASSEMBLY AUGUST 28, 2003 PASSED THE SENATE AUGUST 25, 2003 AMENDED IN SENATE AUGUST 18, 2003 AMENDED IN SENATE JUNE 18, 2003 AMENDED IN ASSEMBLY APRIL 28, 2003 AMENDED IN ASSEMBLY MARCH 25, 2003 INTRODUCED BY Committee on Public Employees, Retirement and Social Security (Negrete McLeod (Chair), Levine (Vice Chair), Chan, Correa, Kehoe, Laird, and Nakanishi) FEBRUARY 21, 2003 An act to amend Sections 31452, 31510.2, 31529.9, 31597, 31597.1, 31899, 31899.1, and 31899.2 of, to amend the heading of Chapter 3.9 (commencing with Section 31899) of Part 3 of Division 4 of Title 3 of, to amend and renumber Sections 31899.7, 31899.8, 31899.9, and 31899.10 of, to amend, renumber, and add Section 31899.4 of, to add Section 31603 to, to repeal Section 31899.6 of, and to repeal and add Section 31899.5 of, the Government Code, relating to county employees' retirement systemsLEGISLATIVE COUNSEL'S DIGEST AB 1585, Committee on Public Employees, Retirement and Social Security. County employees' retirement systems.
(1) Existing law authorizes the board of retirement or, if applicable, the board of investments of a retirement system subject to the County Employees Retirement Law of 1937 to invest the funds of the retirement system for the benefit of the members of the system and in a manner consistent with their fiduciary duties.
This bill would authorize the board of retirement or, if applicable, the board of investments of one of those retirement systems to obtain a loan, secured by a portion of the assets of the retirement system, if the board finds that an emergency exists affecting the national banking system or financial markets that makes the loan necessary to pay benefits when due. The costs of the loan would be a charge against investment earnings of the retirement fund.
(2) The County Employees Retirement Law of 1937 also authorizes the board of retirement in specified counties to contract with county counsel or private attorneys or employ staff attorneys for legal services.
This bill would authorize the board of retirement in any county subject to the County Employees Retirement Law of 1937 to contract for or employ legal staff for legal services, if the board of retirement, by resolution, makes those provisions applicable to the county.
(3) The County Employees Retirement Law of 1937 requires the county treasurer to file a sworn statement of the financial condition and financial transactions of the county's retirement system with the county auditor and county board of supervisors within 4 months after the end of the calendar or fiscal year.
This bill would instead require that statement to be filed within 6 months after the end of the calendar or fiscal year.
(4) Existing law establishes a replacement benefits program for members of retirement systems subject to the County Employees Retirement Law of 1937, other than Los Angeles County, whose retirement benefits may exceed the pension payment limitations of Section 415 of the Internal Revenue Code. Existing law establishes a separate program, known as plan F, for members of the retirement system in Los Angeles County.
This bill would revise and recast those provisions relating to the replacement benefits program and would require each county and district subject to the County Employees Retirement Law of 1937, including Los Angeles County if it terminates plan F, to establish and administer a replacement benefits program, as specified. The bill would also authorize counties, pursuant to a contract with a district, to administer the district's program and authorize the retirement board to assist in the administration of the program to the extent permitted by federal law.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
31452. The right of a person to a pension, annuity, retirement allowance, return of contributions, the pension, annuity, or retirement allowance, any optional benefit, any other right accrued or accruing to any person under this chapter, the money in the fund created or continued under this chapter, and any property purchased for investment purposes pursuant to this chapter, are exempt from taxation, including any inheritance tax, whether state, county, municipal, or district. They are not subject to execution or any other process of court whatsoever except to the extent permitted by Section 31603 of this code and Section 704.110 of the Code of Civil Procedure, and are unassignable except as specifically provided in this chapter.
31510.2. (a) The board of supervisors of any county subject to this article shall establish two defined contribution retirement plans authorized by Section 401 of the Internal Revenue Code of 1986.
The terms of the plans shall be mutually agreed to by the employer and employee representatives of affected employees prior to adoption or amendment by the board of supervisors. The plans shall be known as General Plan F and Safety Plan F and are referred to collectively as plan F.
(b) Any general member described in subdivision (f) of Section 31510 shall participate in General Plan F, and any safety member described in subdivision (f) of Section 31510 shall participate in Safety Plan F, after commencement of his or her participation in the prior plan.
(c) The board, upon the advice of the...
