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SB-671 County employees’ retirement: retirement funds: transfers.(2017-2018)

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Date Published: 02/17/2017 09:00 PM
SB671:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 671


Introduced by Senator Moorlach

February 17, 2017


An act to amend Section 31582 of the Government Code, relating to county employees’ retirement.


LEGISLATIVE COUNSEL'S DIGEST


SB 671, as introduced, Moorlach. County employees’ retirement: retirement funds: transfers.
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 and district employees. CERL requires a county auditor to certify to the retirement board, at the end of each month or pay period, the compensation earnable paid to members of the retirement association and to transfer the applicable percentage of county’s annual contribution to the retirement fund, as specified. CERL authorizes the board of supervisors to authorize the county auditor to make an advance payment of all or part of the county’s estimated annual contribution if the payment is made within 30 days after the county’s fiscal year begins. If the advance is a partial payment, CERL requires remaining contributions to be transferred at the end of each month or pay period and that the overall amount be adjusted at the end of the fiscal year, as specified.
This bill would apply the transfer timing and amount adjustment requirement, currently applicable to transfers for contributions remaining after partial advance payments, to all transfers to the retirement fund. The bill would remove the requirement that advance payments of a county’s estimated annual contribution be made within 30 days after the county’s fiscal year begins.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 Section 31582 of the Government Code is amended to read:

31582.
 (a) The county auditor shall certify to the board at the end of each month or at the end of each pay period the compensation earnable, as defined in Section 31461, paid to all safety members of the retirement association covered by Article 7.5 (commencing with Section 31662) and the compensation earnable, as defined in Section 31461, paid to all other members of the retirement association, and the auditor shall thereupon transfer from the appropriation to the retirement fund the percentage of this amount determined pursuant to Sections 31453, 31453.5, and 31454. Until that determination, the amount of the transfer shall be 23.77 percent of the compensation earnable, as defined in Section 31461, paid to all safety members covered by Article 7.5 (commencing with Section 31662) and 8.85 percent of the compensation earnable, as defined in Section 31461, paid to all other members.
(b) The board of supervisors may authorize the county auditor to make an advance payment of all or part of the county’s estimated annual contribution to the retirement fund, provided that the payment is made within 30 days after the commencement of the county’s fiscal year. If the advance is only a partial payment of the county’s estimated annual contribution, transfers from the appropriation fund.
(c) Transfers to the retirement fund shall be made at the end of each month or at the end of each pay period until the total amount estimated for the year is contributed. This amount shall be adjusted at the end of the fiscal year to reflect the actual contribution required for that year.

(c)

(d) (1) A district subject to Section 31585 may also authorize an advance payment of all or part of the district’s estimated annual contribution to the retirement fund, provided that the payment is made within 30 days after the commencement of the district’s fiscal year. If the advance is only a partial payment of the district’s estimated annual contribution, payments to the retirement fund shall be made at the end of each month or at the end of each pay period until the total amount estimated for the year is contributed. This amount shall be adjusted at the end of the fiscal year to reflect the actual contribution required for that year.
(2) This subdivision shall only apply to a district that is part of a retirement system in a county of the seventh class, as described in Section 28020.