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AB-1293 Judges’ Retirement System II: federal law limits: adjustments.(2021-2022)

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Date Published: 04/13/2021 09:00 PM
AB1293:v96#DOCUMENT

Revised  April 16, 2021
Amended  IN  Assembly  April 13, 2021
Amended  IN  Assembly  April 07, 2021
Amended  IN  Assembly  March 18, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1293


Introduced by Assembly Member Cooley
(Coauthor: Assembly Member Cooper)

February 19, 2021


An act to add Section 75572.5 to the Government Code, relating to retirement.


LEGISLATIVE COUNSEL'S DIGEST


AB 1293, as amended, Cooley. Judges’ Retirement System II: federal law limits: adjustments.
Existing law establishes the Judges’ Retirement System II, which the Board of Administration of the Public Employees’ Retirement System administers. Existing law authorizes a judge who is a member of the system and retires after meeting specified conditions to receive pension benefits.
Existing federal law limits the amount a defined benefit plan may pay a participant annually, and requires that this limitation be adjusted annually by regulation to account for increases in the cost of living.
This bill would prohibit the amount payable to a member under the Judges’ Retirement System II, including specified adjustments, from exceeding the limits established by federal law, and would incorporate specified provisions of federal law by reference. The bill would also require the retirement allowance of a member or monetary credits available to a member to be increased to reflect adjustments contained in federal law, in accordance with specified limits.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 75572.5 is added to the Government Code, to read:

75572.5.
 (a) The adjustments under Section 415(d) of the Internal Revenue Code to the limits described in Section 415(b) of the Internal Revenue Code, as prescribed by the regulations of the Department of the Treasury of the United States, are hereby incorporated by reference and shall continue to apply after a member’s severance from their employment or annuity starting date. The amount payable to a member in any limitation year shall not exceed the limit applicable under Section 415(b) of the Internal Revenue Code, as increased in subsequent years pursuant to Section 415(d) of the Internal Revenue Code and the associated regulations.
(b) Notwithstanding any other law, and except as provided in subdivision (a), the retirement allowance of a member, or the monetary credits available to a member, shall be increased to reflect adjustments to the limits contained in Section 415 of Title 26 of the United States Code as provided in Section 415(d) of that code, provided that the member’s allowance or credits determined without regard to Section 415 equal or exceed the applicable limit as indexed. Nothing in this section is intended to, nor shall be construed to, entitle a retired member to an adjustment to their allowance or credits in excess of that provided pursuant to this chapter.
(c) Nothing in this section shall change the formula used to calculate benefits under this chapter.

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REVISIONS:
Heading—Line 2.
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