BILL NUMBER: SB 752	ENROLLED
	BILL TEXT

	PASSED THE SENATE  SEPTEMBER 8, 2009
	PASSED THE ASSEMBLY  SEPTEMBER 1, 2009
	AMENDED IN ASSEMBLY  AUGUST 24, 2009
	AMENDED IN ASSEMBLY  JULY 23, 2009
	AMENDED IN ASSEMBLY  JULY 15, 2009
	AMENDED IN ASSEMBLY  JULY 13, 2009
	AMENDED IN SENATE  MAY 28, 2009

INTRODUCED BY   Senator Correa
   (Coauthors: Assembly Members Silva and Solorio)

                        FEBRUARY 27, 2009

   An act to add Section 31678.31 to the Government Code, relating to
county employees' retirement, and declaring the urgency thereof, to
take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 752, Correa.  County employees' retirement: Orange County.
   (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.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 31678.31 is added to the Government Code, to
read:
   31678.31.  (a) Notwithstanding any other provision of this
chapter, the board of supervisors or the governing body of a district
within the county may, by resolution adopted by majority vote, do
the following:
   (1) Require an employee hired after approval of the resolution, to
elect in writing, either the pension calculation stated in Section
31676.19 or the pension calculation stated in Section 31676.01. The
election shall be made within 45 calendar days of beginning
employment with the county or the district. If an employee does not
elect the pension calculation stated in Section 31676.19 within 45
days of beginning employment, the employee shall be deemed to have
elected the pension calculation stated in Section 31676.01. An
employee shall not be permitted to rescind his or her election unless
the board of supervisors or the governing body of a district,
through the adoption of a subsequent ordinance or resolution by
majority vote, makes a provision permitting the employee to rescind
the election applicable to the county or district.
   (2) Require a current employee of the county or district covered
by the pension calculation stated in Section 31676.19, hired before
approval of the resolution, within 180 calendar days of approval of
the resolution to make, at the employee's option, a one-time written
election to terminate the application of the pension calculation
stated in Section 31676.19 for future service and elect instead the
pension calculation stated in Section 31676.01 for future service.
This election shall be signed by the employee. Prior to signing an
election, a current employee who chooses to terminate the pension
calculation stated in Section 31676.19 and elects instead the pension
calculation stated in Section 31676.01, shall be provided by the
county or district governing body with a written explanation of the
effect and impact of the termination. A current employee who chooses
to terminate the pension calculation stated in Section 31676.19 shall
be required to sign an affidavit stating that the employee has been
fully informed regarding the effect of the termination and
understands that the termination is irrevocable. The affidavit shall
also state that the employee has chosen termination of his or her own
free will and was not coerced into termination by the employer or
any other person. An employee shall not be permitted to rescind his
or her election unless the board of supervisors or the governing body
of a district, through the adoption of a subsequent ordinance or
resolution by majority vote, makes a provision permitting the
employee to rescind the election applicable to the county or
district.
   (3) Require a current employee of the county or district, hired
before approval of the resolution, but not covered by the pension
calculation stated in Section 31676.19, who after approval of the
resolution becomes eligible for the pension calculation stated in
Section 31676.19, to make a one-time written election between the
pension calculation stated in Section 31676.19 for future service and
the pension calculation stated in Section 31676.01 for future
service. The election shall be made within 45 calendar days of
becoming eligible for the pension calculation stated in Section
31676.19. The election shall be signed by the employee. Prior to
signing the election, an employee who does not elect the pension
calculation stated in Section 31676.19 and elects instead the pension
calculation stated in Section 31676.01 shall be provided by the
county or the district governing body with a written explanation of
the effect and impact of the election. An employee who does not
choose the pension calculation stated in Section 31676.19 shall be
required to sign an affidavit stating that the employee has been
fully informed regarding the effect of the election and understands
that the election is irrevocable. The affidavit shall also state that
the employee has chosen the election of his or her own free will and
was not coerced into the election by the employer or any other
person. An employee shall not be permitted to rescind his or her
election unless the board of supervisors or the governing body of a
district, through the adoption of a subsequent ordinance or
resolution by majority vote, makes a provision permitting the
employee to rescind the election applicable to the county or
district. Failure to make an election within 45 calendar days shall
be considered cause for termination of employment until the employee
described in this paragraph has made the required election.
   (b) The retirement allowance for service rendered prior to the
effective date of the election under paragraph (2) or (3) of
subdivision (a) for an employee covered by any other pension
calculation shall be calculated under the employee's prior pension
calculation. Any employee who has made an election shall not be
eligible for retirement unless the employee meets the minimum
requirements of the provision or provisions pursuant to the election
applicable at the date of retirement.
   (c) (1) An election for the pension calculation stated in Section
31676.01 by any employee hired before approval of the resolution
shall include the signature of the designated beneficiary of the
employee's pension acknowledging the election, or shall include a
written declaration of one or more of the following as may be
applicable:
   (A) The beneficiary has no identifiable community property
interest in the benefit.
   (B) The employee does not know, and has taken all reasonable steps
to determine, the whereabouts of the beneficiary.
   (C) The beneficiary has been advised of the election and has
refused to sign the written acknowledgment.
   (D) The beneficiary is incapable of executing the acknowledgment
because of an incapacitating mental or physical condition.
   (2) The purpose of this subdivision is to notify the beneficiary,
including the employee's spouse or domestic partner, of an election
made by the employee that may affect the entitlement of the
beneficiary. In addition to the foregoing, if the designated
beneficiary of an employee's pension is a spouse or domestic partner
of the employee, the election shall also evidence agreement to the
election by the spouse or domestic partner.
   (3) A person who knowingly provides false information in the
written declaration submitted pursuant to paragraph (1) shall be
subject to a civil penalty of not less than one thousand dollars
($1,000) and not more than twenty-five thousand dollars ($25,000), in
addition to any civil remedies available to the board. An action to
impose a civil penalty pursuant to this paragraph may be brought by
any public prosecutor in the name of the people of the state.
   (d) In the event the employee elects the pension calculation
stated in Section 31676.01, the employee shall be eligible to receive
a contribution from the county or district based on the employee's
contribution to a defined contribution program.
   (e) In addition to employees represented by bargaining units, any
other employees not represented by a bargaining unit, as well as
supervisors, managers, and executives, may be subject to subdivision
(a) pursuant to the resolution described in subdivision (a).
   (f) This section shall apply only to members who retire on or
after the effective date of the resolution described in subdivision
(a).
   (g) This section shall not apply to safety members.
   (h) A resolution adopted by the board of supervisors under
subdivision (a) shall not apply to the employees of any district
within the county. The governing body of a district may elect, by
resolution adopted by majority vote, to make this section applicable
to the employees of the district irrespective of whether the board of
supervisors has made that election applicable to employees in the
county.
   (i) A resolution adopted pursuant to this section may require any
member that elects or is deemed to have elected the pension
calculation stated in Section 31676.01 to pay additional member
contributions beyond those member contributions required under
Section 31621. These additional contributions shall not result in an
additional benefit to the member. However, the additional
contributions paid by a member pursuant to the authority granted by
this subdivision shall become part of the accumulated contributions
of the member for the following purposes only:
   (1) Funding the annuity portion of the member's retirement
allowance.
   (2) Withdrawal of contributions by the member upon the member's
withdrawal from, and termination of membership in, the retirement
system.
   (j) Any person employed subsequent to the effective date of a
resolution adopted under subdivision (a) who would otherwise qualify
as a member shall not become a member until he or she certifies his
or her election, or otherwise as described above has been deemed to
have elected, to be covered by the pension calculation stated in
Section 31676.01 or the pension calculation stated in Section
31676.19. Once the election is made or is deemed to have been made,
the employee will become a member retroactive to the date of hire.
Any employee who subsequently otherwise becomes eligible for the
pension calculation stated in Section 31676.19 subsequent to the
effective date of a resolution adopted under subdivision (a) shall
continue to be covered by any immediately preceding retirement plan
to which he or she was entitled from the county or district until he
or she certifies his or her election to be covered by the pension
calculation stated in Section 31676.01 or the pension calculation
stated in Section 31676.19.
   (k) In the event that the final day to make an election or perform
an act described in this section falls on a weekend or on a county
or district holiday, a subsequent election or act shall be timely if
made or performed on the immediately following regular business day
of the county or district.
   (l) This section shall apply only in Orange County.
  SEC. 2.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order that the terms of a memorandum of understanding between
the Orange County Employees Association and Orange County regarding
the implementation of a new, optional tier of retirement benefits for
new and incumbent employees take effect as soon as possible, it is
necessary that this act take effect immediately.