Joseph Simitian
- Democratic
Author
(1) The Public Employees' Retirement Law (PERL) creates the Public Employees' Retirement System (PERS) , which provides a defined benefit to its members based on age at retirement, service credit, and final compensation. PERL defines "final compensation" for purposes of calculating a member's retirement allowance. The State Teachers' Retirement Law (STRL) and the retirement laws for county employees and city employees also provide for a defined benefit based on age at retirement, service credit, and final compensation. This bill would provide that any change in salary, compensation, or remuneration principally for the purpose of enhancing a member's benefits would not be included in the calculation of a member's final compensation for purposes of determining that member's defined benefit. The bill would generally require the board of each state and local public retirement system to establish, by regulation, accountability provisions that would include an ongoing audit process to ensure that a change in a member's salary, compensation, or remuneration is not made principally for the purpose of enhancing a member's retirement benefits. This bill would revise the definition of "creditable compensation" and would limit the calculation of a member's final compensation to an amount not to exceed the average increase in compensation received within the final compensation period and the 2 preceding years by employees in the same or a related group as that member. This bill would also provide that a person who retires on or after January 1, 2012, may not perform services for any employer covered by a state or local retirement system until that person has been separated from service for a period of at least 180 days. This bill would provide for the implementation of these required changes under the laws that govern PERS and STRL. (2) The Defined Benefit Supplement Program under STRL provides supplemental retirement, disability, final, and termination benefits, payable either in a lump-sum payment or as an annuity, to members receiving benefits under the Defined Benefit Program of the State Teachers' Retirement Plan. This bill would provide that member and employer contributions credited to the Defined Benefit Supplemental Program would include remuneration earnable within a 5-year period in excess of 125% of that member's compensation earnable in the year prior to that 5-year period. This bill would provide, in the case of a member who retires on or after January 1, 2012, and who elects to receive his or her retirement benefit under the Defined Benefit Supplemental Program as a lump-sum payment, that the lump-sum payment would not be payable until 180 days have elapsed following the effective date of the member's retirement. (3) This bill includes Legislative findings expressing the public purpose that would be served by the enactment of this bill. This bill would, except as otherwise specified, provide that its provisions would become operative on July 1, 2011. This bill would further provide that it would only become operative if AB 1987 of the 2009–10 Regular Session is also enacted and takes effect on or before January 1, 2011.
Died on file.
In Senate. To unfinished business. (Veto)
Vetoed by Governor.
Enrolled. To Governor at 11:30 a.m.
Senate concurs in Assembly amendments. (Ayes 37. Noes 0. Page 5069.) To enrollment.
In Senate.
Read third time. Passed. (Ayes 78. Noes 0. Page 6867.) To Senate.
Read third time. Amended. (Page 6371.) To third reading.
Read second time. To third reading.
(August 16 amended measure version corrected August 18.)
Read second time. Amended. To second reading.
From committee: Do pass as amended. (Ayes 12. Noes 0.)
(Heard in committee August 12.)
Set, first hearing. Referred to APPR. suspense file.
(Heard in committee on June 23.)
From committee: Do pass, but first be re-referred to Com. on APPR. (Ayes 6. Noes 0.) Re-referred to Com. on APPR.
To Com. on P.E.,R. & S.S.
Read third time. Passed. (Ayes 35. Noes 0. Page 3701.) To Assembly.
In Assembly. Read first time. Held at Desk.
Read second time. To third reading.
From committee: Do pass. (Ayes 10. Noes 0. Page 3675.)
(Suspense - for vote only.)
Set for hearing May 27.
Placed on APPR suspense file.
From committee with author's amendments. Read second time. Amended. Re-referred to Com. on APPR.
Set for hearing May 10.
Hearing postponed by committee.
Set for hearing April 26.
From committee: Do pass, but first be re-referred to Com. on APPR. (Ayes 6. Noes 0. Page 3164.) Re-referred to Com. on APPR.
From committee with author's amendments. Read second time. Amended. Re-referred to Com. on P.E. & R.
Set for hearing April 12.
To Com. on P.E. & R.
From print. May be acted upon on or after March 23.
Introduced. Read first time. To Com. on RLS. for assignment. To print.
| Bill Text Versions | Format |
|---|---|
| SB1425 | HTML |
| 02/19/10 - Introduced | |
| 04/05/10 - Amended Senate | |
| 05/04/10 - Amended Senate | |
| 08/16/10 - Amended Assembly | |
| 08/19/10 - Amended Assembly | |
| 09/02/10 - Enrolled |
| Document | Format |
|---|---|
| No related documents. |
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