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SB-1433 County employees’ retirement: Deferred Retirement Option Program.(2017-2018)

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Date Published: 04/02/2018 02:00 PM
SB1433:v98#DOCUMENT

Corrected  April 03, 2018
Amended  IN  Senate  April 02, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill
No. 1433


Introduced by Senator Moorlach

February 16, 2018


An act to amend Section 7522.15 31770 of the Government Code, relating to public county employees’ retirement.


LEGISLATIVE COUNSEL'S DIGEST


SB 1433, as amended, Moorlach. The California Public Employees’ Pension Reform Act of 2013. County employees’ retirement: Deferred Retirement Option Program.
The County Employees Retirement Law of 1937 (CERL) authorizes counties to establish retirement systems pursuant to its provisions for the purpose of providing pension and death benefits to county and district employees. Existing law creates the Deferred Retirement Option Program within CERL to provide eligible members who elect to participate in the program access to a lump sum or monthly payments for a specified period in addition to a monthly retirement allowance.
This bill, on and after January 1, 2019, would prohibit a county or district from allowing a member to participate in a Deferred Retirement Option Program who was not participating in the program on or before December 31, 2018. The bill would also prohibit a county or district from establishing a new or additional Deferred Retirement Option Program.

Existing law, the California Public Employees’ Pension Reform Act of 2013, among other things, establishes new retirement formulas for employees first employed on or after January 1, 2013, that a public employer or retirement system offering a defined benefit pension plan is prohibited from exceeding, subject to certain exceptions.

This bill would make nonsubstantive changes in these provisions.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 Section 31770 of the Government Code is amended to read:

31770.
 (a) This article shall be known and may be cited as the “Deferred Retirement Option Program.”
(b) On and after January 1, 2019, a county or district shall not do either of the following:
(1) Allow a member to participate in a Deferred Retirement Option Program who was not participating in the program on or before December 31, 2018.
(2) Establish a new or additional Deferred Retirement Option Program.

SECTION 1.Section 7522.15 of the Government Code is amended to read:
7522.15.

Except as provided in subdivisions (d) and (e) of Section 7522.02, a public employer or public retirement system that offers a defined benefit plan shall offer only the defined benefit formulas established pursuant to Sections 7522.20 and 7522.25 to new members.

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CORRECTIONS:
Text—Page 2.
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