Bill Text: CA AB1639 | 2011-2012 | Regular Session | Introduced

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Bill Title: Retirement: public employees.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-04-26 - From committee: That the measure be retained in committee, and that the subject matter be referred to the Committee on Rules for assignment to the proper committee for study. (Ayes 4. Noes 2.) (April 26). [AB1639 Detail]

Download: California-2011-AB1639-Introduced.html

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BILL NUMBER: AB 1639	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Hill

                        FEBRUARY 13, 2012

   An act to add Section 7503.5 to the Government Code, relating to
retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1639, as introduced, Hill. Retirement: public employees.
   Existing law establishes the Public Employees' Retirement System
and the State Teachers' Retirement System for the purpose of
providing pension benefits to their members. Existing law also
establishes the Judges' Retirement System II, which provides pension
benefits to elected judges and the Legislators' Retirement System,
which provides pension benefits to elective officers of the state
other than judges and to legislative statutory officers. The County
Employees Retirement Law of 1937 authorizes counties to establish
retirement systems pursuant to its provisions in order to provide
pension benefits to county, city, and district employees.
   This bill would specify that, in addition to any other benefit
limitations prescribed by law, for the purposes of determining a
retirement benefit paid to a person who first becomes a member of a
public retirement system on or after January 1, 2013, to the extent
that the benefits payable under the system are subject to the
compensation limits prescribed by a specified provision of the
Internal Revenue Code, the maximum salary, compensation, or payrate
taken into account under the plan for any year shall not exceed the
amount permitted to be taken into account under that provision of
federal law. The bill would also prohibit a public employer from
making contributions to any qualified public retirement plan based on
any portion of compensation that exceeds the amount specified in
that federal provision.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 7503.5 is added to the Government Code, to
read:
   7503.5.  (a) In addition to any other benefit limitations
prescribed by law, for the purposes of determining a retirement
benefit paid to a person who first becomes a member of a public
retirement system on or after January 1, 2013, to the extent the
benefits payable under the system are subject to the compensation
limits prescribed by Section 401(a)(17) of Title 26 of the United
States Code, the maximum salary, compensation, or payrate taken into
account under the plan for any year shall not exceed the amount
permitted to be taken into account under Section 401(a)(17) of Title
26 of the United States Code, or its successor.
   (b) A public employer shall not make employer contributions to any
qualified public retirement plan or plans on behalf of an employee
who first becomes a member of the retirement system on or after
January 1, 2013, based on that portion of the amount of total
compensation that exceeds the amount specified in Section 401(a)(17)
of Title 26 of the United States Code, or its successor.