SB 681

  • California Senate Bill
  • 2017-2018 Regular Session
  • Introduced in Senate Feb 17, 2017
  • Senate
  • Assembly
  • Governor

Public employees' retirement: contracting agencies: termination.

Abstract

The Public Employees' Retirement Law 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. That law authorizes any public agency to make its employees members of PERS by contracting with the Board of Administration of PERS. Existing law provides for the termination of a contract, including requiring the board to enter, upon request, into a prescribed agreement with the terminating agency relating to the calculation of final compensation for employees and related necessary adjustments in the employer's contribution. This bill would require the Board of Administration of PERS to allow a contracting agency to terminate its contract with the system in a manner that does not result in excessive costs or penalties to the contracting agency, allows the contracting agency to withdraw its net assets paid into the system less payments made to its members and their beneficiaries, and ensures that the contracting agency remains responsible for its unfunded liabilities so that those liabilities are not shifted onto other PERS members or employers. Before a contracting agency would be eligible to terminate its contract, the bill would require a contract to have been in effect for at least 5 years and meet other notice and approval requirements. The bill also would require the agreement between the contracting agency and the board to contain provisions to protect the interests of the system, and would require a contracting agency, before terminating its contract, to determine how termination would affect the health care benefits of its members and also to determine the federal tax ramifications associated with its decision. The bill would contain related legislative findings.

Bill Sponsors (1)

Votes


Actions


Feb 01, 2018

Senate

Returned to Secretary of Senate pursuant to Joint Rule 56.

Jan 08, 2018

Senate

January 8 set for second hearing. Failed passage in committee. (Ayes 2. Noes 3. Page 4005.) Reconsideration granted.

Dec 21, 2017

Senate

Set for hearing January 8.

Apr 25, 2017

Senate

April 24 set for first hearing. Testimony taken. Further hearing to be set.

Apr 20, 2017

Senate

Set for hearing April 24 in P.E. & R. pending receipt.

Apr 19, 2017

Senate

Re-referred to Com. on P.E. & R.

  • Referral-Committee
Com. on P.E. & R.

Apr 17, 2017

Senate

From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.

  • Reading-2
  • Referral-Committee
  • Amendment-Passage
  • Committee-Passage
  • Reading-1
Com. on RLS.

Mar 09, 2017

Senate

Referred to Com. on RLS.

  • Referral-Committee
Com. on RLS.

Feb 21, 2017

Senate

From printer. May be acted upon on or after March 23.

Feb 17, 2017

Senate

Introduced. Read first time. To Com. on RLS. for assignment. To print.

Bill Text

Bill Text Versions Format
SB681 HTML
02/17/17 - Introduced PDF
04/17/17 - Amended Senate PDF

Related Documents

Document Format
No related documents.

Sources

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