Bill Text

Bill Information


Add To My Favorites | print page

SB-793 Public Employees’ Retirement System: partial disability retirement program.(1993-1994)

SHARE THIS: share this bill in Facebook share this bill in Twitter
SB793:v95#DOCUMENT

Senate Bill No. 793
CHAPTER 513

An act to amend Sections 20036, 21020.5, 21020.6, 21361, and 21405 of, and to add Sections 20022.15 and 21100.55 to, the Government Code, relating to the Public Employees’ Retirement System.

[ Filed with Secretary of State  September 27, 1993. Approved by Governor  September 26, 1993. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 793, Wright. Public Employees’ Retirement System: partial disability retirement program.
The Public Employees’ Retirement Law provides industrial disability retirement benefits without regard to age or service for certain state membership categories who are incapacitated for the performance of their present duties as a result of injury or disease arising out of and in the course of their employment. Certain new provisions are applicable only to state safety, state industrial, and state miscellaneous members employed in state bargaining units that have agreed in memorandums of understanding to be subject to them. Those provisions establish a new standard of being incapacitated for the performance of any employment with the state employer and require the disability to be of permanent or extended or uncertain duration, as determined by the Department of Personnel Administration. Those provisions require the retirement system to pay supplemental payments to those employees who are ineligible for industrial disability retirement under the new standard and accept alternative lower paying employment with the state and require the state employer to pay for those benefits in the same manner as all other state retirement benefits. Those members, who the Department of Personnel Administration determines are incapacitated under the new standard for the performance of duty in any state employment and retire for industrial disability, would receive a disability retirement allowance of 60% of their final compensation. That law also provides a monthly allowance to the eligible survivors of deceased members who had attained the minimum age for voluntary retirement prior to their death before retirement and provides an alternative death benefit for the eligible survivors of deceased members credited with 20 years or more of state service regardless of their age at the time of death before retirement.
This bill would change the name of the supplemental payment program to the partial disability retirement program, specify that the program applies only for illnesses or injuries that occur on or after January 1, 1993, and provide that the program payments are PERS benefits and are not to be considered “compensation” for PERS purposes.
This bill would authorize the Department of Personnel Administration to reinstate a person who was retired for industrial disability retirement, within 12 months after the retirement if it identifies an available position whose duties the person is able to perform, whereupon the person would be entitled to partial disability retirement payments.
This bill would make clarifying changes in the provisions relating to the alternative death benefit.
This bill would make other related, technical, and clarifying changes.

The people of the State of California do enact as follows:


SECTION 1.

 Section 20022.15 is added to the Government Code, to read:

20022.15.
 A partial disability retirement program is established by Section 21020.6 for state employees subject to Section 21020.5. The benefits paid under this program shall be paid pursuant to Sections 21020.5 and 21020.6 and shall not be considered compensation for purposes of Section 20022.

SEC. 2.

 Section 20036 of the Government Code is amended to read:

20036.
 “Benefit” means the retirement allowance, basic death benefit, limited death benefit, special death benefit, any monthly allowance for survivors of a member or retired person, the insurance benefit, the partial disability retirement program payment, or refund of accumulated contributions.

SEC. 3.

 Section 21020.5 of the Government Code is amended to read:

21020.5.
 (a)  Notwithstanding any other provision of law, a state member shall not be retired for industrial disability for an illness or injury that occurs on or after January 1, 1993, unless the member is incapacitated for the performance of duty in any employment with the state employer and the disability is of permanent or extended and uncertain duration, as determined by the Department of Personnel Administration. This section shall only apply to state safety, state industrial, and state miscellaneous members employed in any state bargaining units for which a memorandum of understanding has been agreed to by the state employer and the recognized employee organization to become subject to this section. The Director of the Department of Personnel Administration may adopt rules regarding job placement and other related activities necessary for the administration of this section and Section 21100.55.
(b)  A state member who, because of the enactment of this section is no longer eligible to retire for industrial disability and accepts alternate employment with the state in which the compensation is less than that received in the position held at the time of the illness or injury, shall, upon certification of the Department of Personnel Administration to the board, become entitled to benefits under the partial disability retirement program set forth in Section 21020.6.
(c)  The employee shall have the right of appeal to the Department of Personnel Administration regarding: (1) the requirement to participate or (2) the exclusion from participating in the program described in this section and Section 21020.6.
(d)  For all other disputes relative to this section and Section 21020.6, the employee shall seek administrative remedy from his or her appointing power through the departmental complaint process.
(e)  The appointing power of the affected employee shall reimburse the Department of Personnel Administration for any costs associated with the administration of this provision.

SEC. 4.

 Section 21020.6 of the Government Code is amended to read:

21020.6.
 (a)  Any state member who is subject to Section 21020.5 and does not qualify for industrial disability retirement under this part, or is reinstated from industrial disability retirement pursuant to Section 21100.55, and accepts another job in state service, shall be paid a partial disability retirement program benefit payment from this system in an amount, to be calculated by the Department of Personnel Administration and certified to the board, that, when added to the salary earned by the employee in the current state position, would be equal to the state salary earned by the member at the time of becoming unable to perform the duties of his or her previous position. This supplemental payment shall not result in the member being deemed to be retired.
(b)  The partial disability retirement program benefit payments made under this section shall be paid for by the state employer in the same manner as all other state retirement benefits are funded.

SEC. 5.

 Section 21100.55 is added to the Government Code, to read:

21100.55.
 Notwithstanding any other section in Article 3 (commencing with Section 21020) or in this article, the Department of Personnel Administration may reinstate a person who has retired for industrial disability pursuant to Section 21292.4, within 12 months after the effective date of retirement, if it has identified an available position with duties that the employee is able to perform. Upon reinstatement, the person shall become entitled to benefits under the partial disability retirement program pursuant to Section 21020.6.

SEC. 6.

 Section 21361 of the Government Code is amended to read:

21361.
 The basic death benefit is payable in all cases where the retirement system is liable under Section 21360 for either the basic or a special death benefit and the special death benefit is not payable.
The basic death benefit shall consist of:
(a)  The accumulated contributions of the member.
(b)  If the member is not an insured member, or is an insured member eligible for service retirement or the member is subject to benefits pursuant to Section 21365.55, an amount, provided from contributions by the state, or a contracting agency, equal to one-twelfth of the annual compensation earnable by the deceased during the 12 months immediately preceding his or her death, or the compensation earnable by the member at the time of becoming eligible for benefits pursuant to Section 21020.6 if higher, multiplied by the number of completed years of current service credited to the member, but not to exceed one-half of the compensation. If the member is an insured member who is ineligible for service retirement and is also credited with service as a local member only that service shall be used in computing the amount under this subdivision and that amount shall not be a part of the basic death benefit payable with respect to the insured member.
(c)  If the member is a state member, other than a school member, who dies after becoming eligible for retirement with more than five but less than six years credited service, an amount equal to 50 percent of the annual compensation earnable by the deceased member during the 12 months immediately preceding his or her death.
The basic death benefit for a member who dies under the circumstances described in paragraph (5) of subdivision (a) of Section 21360 shall not exceed an amount which when added to the death benefit paid for the member under the other system equals the maximum death benefit payable under that system, if the death is not the result of injury or disease arising out of and in the course of his or her employment under that system. However, the benefit shall be at least equal to his or her accumulated contributions. The basic death benefit for the member shall be the amount of his or her accumulated contributions if death is the result of disease or injury arising out of and in the course of employment under the other system.

SEC. 7.

 Section 21405 of the Government Code is amended to read:

21405.
 The insurance benefit shall be the sum of the following amounts:
(a)  Five thousand dollars ($5,000); and
(b)  An amount equal to 50 percent of the annual compensation earnable by the deceased member during the 12 months immediately preceding his or her death or the compensation earnable by the member at the time of becoming eligible for benefits pursuant to Section 21020.6 if higher, or if a member also has state service in an employment in which employees are ineligible to be insured members, a proportionate part of that amount in the ratio of eligible service to total service.
No amount shall be paid under this subdivision if the member is eligible for service retirement or the member is subject to benefits pursuant to Section 21365.55.
If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, the memorandum of understanding shall be controlling without further legislative action, except that if the provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.