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SB-1166 Public Employees’ Retirement System: contracting agency: contributions.(2017-2018)



Current Version: 06/18/18 - Amended Assembly        


SB1166:v96#DOCUMENT

Amended  IN  Assembly  June 18, 2018
Amended  IN  Senate  May 24, 2018
Amended  IN  Senate  March 22, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 1166


Introduced by Senator Pan

February 14, 2018


An act to add Section 20831.3 to the Government Code, relating to public employees’ retirement.


LEGISLATIVE COUNSEL'S DIGEST


SB 1166, as amended, Pan. Public Employees’ Retirement System: contracting agency: contributions.
Existing law, the Public Employees’ Retirement Law (PERL), establishes the Public Employees’ Retirement System (PERS), which provides a defined benefit to members of the system, based on final compensation, credited service, and age at retirement, subject to certain variations, and is administered by its board of administration. PERL authorizes a public agency to contract to make its employees members of PERS and prescribes a process for this. PERL prohibits participating employers from failing or refusing to pay their contributions on time. PERL authorizes the board to charge interest on agency contributions due and unpaid.
This bill would require a contracting agency that fails to make its required employer contributions on time time, and that fails to cure the delinquency within 7 days, to notify members and retired members who are current or past employees of that agency, or their beneficiaries, of the agency’s delinquency by mail within 30 days of the payment having become delinquent. The bill would require the board to provide contact information in a specified format to contracting agencies for the purpose of providing notice to members and retired members who are current or past employees of that agency, or to their beneficiaries, and would prescribe a process in this regard. The bill would immunize contracting agencies for failure to provide notice if the contact information is incomplete or incorrect.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 20831.3 is added to the Government Code, to read:

20831.3.
 (a) A contracting agency that fails to make the employer’s contribution required by this chapter within the applicable time limitations shall notify a member or retired member who is a current or past employee of that agency, or a beneficiary thereof, of the agency’s delinquency by mail, to the member’s or retired member’s, or beneficiary’s latest address, within 30 days of the payment having become delinquent. delinquent, subject to the process described in subdivision (b).
(b) (1) Within seven days of the If a contracting agency fails to bring its account current on or before seven days of becoming delinquent, the board shall provide the contracting agency with contact information data in its possession for the purpose of providing members, retired members, and beneficiaries the notice required by subdivision (a). The contact information data shall be provided to the contracting agency in an open format that is platform independent, machine readable, retrievable, downloadable, indexable, and electronically searchable by commonly used Internet search applications.
(2) Within 14 days of receipt of the contact information data described in paragraph (1), the contracting agency shall provide written notice to members and retired members, or to their beneficiaries, of the delinquency, its cause, and how and when the delinquency is proposed to be satisfied.
(3) The contracting agency shall not be liable for failure to provide the notice required pursuant to this section to a member, retired member, or beneficiary if the contact information received for that member, retired member, or beneficiary is incomplete or incorrect.