SB 752

Bill Subjects

Abstract

(1) The County Employees Retirement Law of 1937 permits counties and districts, as defined, to provide retirement benefits to their employees pursuant to its provisions. The law permits the board of supervisors or the governing body of a district in Orange County, by resolution adopted by majority vote and pursuant to a memorandum of understanding, as specified, to make certain formulas for the calculation of benefits for general or safety members applicable to the employees of a bargaining unit comprised of general members, safety members, or employees of the Probation Services Unit and Probation Supervisory Management Unit, as specified, and requires the affected members, subject to certain conditions, to pay some or all of those additional contributions, as specified. This bill would permit, in Orange County, the board of supervisors, or the governing body of a district within the county, by resolution adopted by majority vote, to require an employee hired after approval of the resolution, to make a written election between 2 specified pension calculations within 45 days of beginning employment. The bill would require that an employee who fails to elect one of the pension calculations within 45 days of beginning employment be deemed to have elected the other. The bill would also permit the resolution, as described above, to require a current employee to make a similar written election regarding his or her own pension benefits for future service within 180 calendar days of approval of the resolution. The bill would require that a current employee who chooses to terminate a specified pension calculation be provided with a written explanation of the effect and impact of the termination and sign a specified affidavit. The bill would further permit the resolution to require a current employee of the county or district, hired before approval of the resolution, who subsequently becomes eligible for a specified pension calculation to make a one-time written election between the 2 pension calculations for future service within 45 days of becoming eligible. The bill would require that the employee who chooses to terminate a specified pension calculation be provided with a written explanation of the effect and impact of the termination and sign a specified affidavit. The bill would provide that failure to make an election within 45 calendar days shall be considered cause for termination of employment until the required election has been made. The bill would make these elections irrevocable, except as specified. The bill would require that a retirement allowance for service rendered prior to the effective date of the election be calculated under the employee's prior pension calculation and would provide that an employee who has made this election is not eligible for retirement unless the employee meets the minimum requirements of the provisions applicable at the date of retirement. The bill would require that specified pension elections include the signature of the employee's designated beneficiary or a specified written declaration. The bill would provide a civil penalty for a person who knowingly provides false information in the declaration, in an action to be brought at the option of a public prosecutor. The bill would require that an employee who elects the lesser of the 2 specified pension calculations be eligible to receive a contribution to a defined contribution program from the county or district based on the employee's contribution to a defined contribution program. The bill would permit the resolution to require a member who elects or is deemed to have elected the lesser of the 2 pension calculations to pay additional member contributions that would not result in an additional benefit to the member, as specified. The bill would permit the resolution to apply these provisions to unrepresented employees, as specified, and would provide that its provisions not be applicable to safety members of the retirement system. The bill would provide that an employee who fails to certify his or her election under specified circumstances would continue to be covered by his or her immediately preceding retirement plan, as specified. The bill would provide that the adoption of the resolution by the county would not extend to the employees of any district within the county, and would permit the governing body of a district to elect to make its provisions applicable to the employees of the district irrespective of whether the board of supervisors has made that election applicable to employees in the county. (2) This bill would declare that it is to take effect immediately as an urgency statute.