Legislation California Session Laws US session laws and acts Chapter 793, AB 1683 – Public employee benefits.

Chapter 793, AB 1683 – Public employee benefits.

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CA AB 1683; Chapter 793

California Acts of the 2001 Legislative Session

AB 1683, Chapter 793

BILL NUMBER: AB 1683 CHAPTERED 10/13/01 CHAPTER 793 FILED WITH SECRETARY OF STATE OCTOBER 13, 2001 APPROVED BY GOVERNOR OCTOBER 12, 2001 PASSED THE ASSEMBLY SEPTEMBER 13, 2001 PASSED THE SENATE SEPTEMBER 10, 2001 AMENDED IN SENATE SEPTEMBER 6, 2001 AMENDED IN SENATE JULY 2, 2001 AMENDED IN ASSEMBLY MAY 14, 2001 INTRODUCED BY Committee on Public Employees, Retirement and Social Security (Havice (Chair), Canciamilla (Vice Chair), Briggs, Chan, Firebaugh, Pescetti, and Strom-Martin) FEBRUARY 28, 2001 An act to amend Sections 3562.2, 20057.1, 20070, 20356, 20433, 20434, 20434.5, 20481, 20515, 20580, 20588, 20686, 21024, 21027, 21054, 21259, 21298, 21317, 21318, 21319, 21322, 21325, 21326, 21327, 21328, 21547.7, 21751, 21757, 21758, 21761, 21764, 22819, 22821.1, 22857, and 31657 of, to add Sections 20890.1, 21461.5, and 22013.98 to, and to repeal Sections 20687.1, 21001, and 21002 of, the Government Code, relating to public employee benefits

LEGISLATIVE COUNSEL'S DIGEST AB 1683, Committee on Public Employees, Retirement and Social Security. Public employee benefits.

(1) The Public Employees' Retirement Law provides that certain benefits provisions shall be applicable to contracting agencies only if the agency's contract with the system, as originally executed or as amended, makes the provision applicable.

This bill would provide that some of those provisions shall be applicable to a contracting agency only if its contract so provided on or before December 31, 2001.

(2) Under existing law, when a local agency contracts with the Public Employees' Retirement System, members of the local agency's retirement system included in the contract become members of the Public Employees' Retirement System and payments being made to retirees, survivors, and beneficiaries of the local system on the effective date of the contract are continued and paid by the Public Employees' Retirement System at the existing rates, unless the contract or a subsequent amendment thereto otherwise provides, as specified.

This bill would revise that provision to provide that payments being made to retirees, survivors, and beneficiaries of the local system on the effective date of the contract be continued and paid, as specified, unless the contract or a subsequent amendment thereto otherwise provides as to persons retired under the local system, as specified.

(3) Existing law authorizes members of the Public Employees' Retirement System employed by a contracting agency to withdraw their contributions to the system upon the termination of the agency's contract with the system.

This bill would make that authorization applicable to those members only if they are not employed in a position subject to coverage by the system at the time of the election to withdraw.

(4) Existing law establishes the local sheriff and the local firefighter membership classifications within the Public Employees' Retirement System. Members subject to the local sheriff classification were formerly classified as county peace officers.

This bill would specify conditions for the conversion of county peace officer service to local sheriff service and would make technical changes with respect to the local firefighter classification.

(5) Under the Public Employees' Retirement Law, contracting agencies may authorize their members to elect to receive service credit for time during which the member served in the military, provided, among other things, that service was continuous, and time during which the member was on war relocation leave.

This bill would eliminate the requirement that the military service be continuous and would repeal the provision relating to war relocation leave.

(6) The Public Employees' Retirement Law provides that the monthly allowance paid to, among others, a local member who retired prior to January 1, 2000, may be increased, at the election of the contracting agency, according to a specified schedule.

This bill would provide that those increases shall be made notwithstanding the purchase power protection increase that is also provided under existing law for those retirees.

(7) Existing law authorizes a member of the Public Employees' Retirement System to elect, upon service retirement, to have the actuarial equivalent of his or her unmodified service retirement allowance paid as a temporary annuity and life income, as specified.

This bill would establish an alternative temporary annuity election that would be available to persons who first became members of the system on or after January 1, 2002.

(8) Existing law establishes a replacement benefits program for members of the Public Employees' Retirement System.

This bill would designate that program as a benefits replacement plan and would clarify that the plan is applicable to school employers and members of the system.

(9) The Public Employees' Retirement Law and Public Employees' Medical and Hospital Care Act prescribe retirement, death, and health benefits for specified public employees and their survivors.

This bill would make technical and clarifying changes to provisions of that law and act.

(10) Existing law prescribes procedures to transfer membership from the Public Employees' Retirement System to a county retirement system subject to the County Retirement Law of 1937 for certain public safety members who were employed by a contracting agency and who are subsequently employed by a county, fire authority, or district within any of 2 or 3 specified counties as a result of the transfer of firefighting or law enforcement functions, as specified.

This bill would clarify that those procedures are also applicable to those public safety members who were employed by the state and who are subsequently employed by a county, fire authority, or district within all 3 counties as a result of such a transfer. The bill would also make related technical changes.

(11) Under existing law, the Board of Administration of the Public Employee's Retirement System administers an agreement with the federal Department of Health and Human Services for the social security coverage of employees of the state and various public agencies that contract for coverage. The existing law excludes from that coverage agreement policemen and firemen, as defined.

This bill would expand the definition of "fireman" for those purposes to include certain employees of the City of Long Beach who perform life saving and peace keeping duties, as specified.

(12) Existing law, the Public Employees' Medical and Hospital Care Act, provides that an annuitant, as defined, who meets specified criteria and who was enrolled in a specified health benefits plan at the time of becoming an annuitant may continue his or her enrollment, as specified. The act also authorizes contracting agencies to allow eligible family members of a deceased employee of the contracting agency to enroll in a specified health benefits plan following the employee's death, as specified.

This bill would specify that this authorization is applicable to eligible family members who are not enrolled on the employee's date of death.

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1.
Section 3562.2 of the Government Code is amended to read

3562.2. Notwithstanding subdivision (r) of Section 3562, for purposes of the California State University only, "scope of representation" also means any retirement benefits available to a state member under Part 3 (commencing with Section 20000) of Title 2.

SECTION 2.
Section 20057.1 of the Government Code is amended to read

20057.1. To qualify as a "public agency" within the meaning of this part, any organization that qualifies under amendments to the definitions of "public agency" effective on or after January 1, 2002, shall also obtain a written advisory opinion from the United States Department of Labor stating that the organization is an agency or instrumentality of the state or a political subdivision thereof within the meaning of Sections 1001 et seq. of Title 29 of the United States Code.

SECTION 3.
Section 20070 of the Government Code is amended to read

20070. "1959 survivor allowance" means the allowance provided for in Sections 21571, 21572, 21573, 21574, 21574.5, and 21574.7.

SECTION 4.
Section 20356 of the Government Code is amended to read

20356. Whenever in this part the rights of a local member, because of membership in another retirement system, are conditioned upon employment within six months of termination of membership in this system or another retirement system, the period shall be one year rather than six months if the local member was an elective officer and becomes a member of another retirement system upon commencement of service in another elective office on and after January 1, 1977.

This section shall not apply unless the other employer in a reciprocal system elected a similar provision, nor shall it apply to any contracting agency nor to the employees of any contracting agency unless that agency elected to be subject to the provisions of this section in its contract with the board on or before December 31, 2001.

SECTION 5.
Section 20433 of the Government Code is amended to read:

20433. "Local firefighter" means any officer or employee of a fire department of a contracting agency, except one whose principal duties are those of a telephone operator, clerk, stenographer, machinist, mechanic, or otherwise and whose functions do not clearly fall within the scope of active firefighting, or active firefighting and prevention service, active firefighting and fire training, active firefighting and hazardous materials, active firefighting and fire or arson investigation, or active firefighting and emergency medical services, even though that employee is subject to occasional call, or is occasionally called upon, to perform duties within the scope of active firefighting, or active firefighting and...

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