SB 294: Public employment: military service: credit.
- Session Year: 2015-2016
- House: Senate
- Latest Version Date: 2016-09-27
The Public Employees Retirement Law (PERL) creates the Public Employees Retirement System (PERS) for the purpose of providing pension and other benefits to public employees, which are funded by employee and employer contributions and investment returns. PERS provides defined benefits to its members based on their final compensation, credited service, and age at retirement, subject to certain variations. Existing law provides a member with an absence due to military service or service with the uniformed services with the right to receive credit for service for the period of that absence and requires the members employer to contribute both the employee and employer contributions for that period if specified conditions are met.
This bill would require the Board of Administration of the Public Employees Retirement System to provide a separate and unique form to be used by a member to receive credit for his or her military service and would require the form to clearly state that the member has no obligation to pay for any portion of the employer contribution if eligibility is determined pursuant to certain provisions, as specified. The bill would require employers to both provide the member with that form and inform the member of his or her rights to receive that credit with employer-paid contributions within 30 days of the members return to state service and until April 1, 2017, would further require state appointing authorities to provide letters or electronic communications to all employees informing them of those rights.
Existing law authorizes a member to elect at any time prior to retirement, in accordance with regulations of the Board of Administration of the Public Employees Retirement System, to receive credit for public service, in addition to his or her current and prior service credit.
This bill would require an employer to inform a new employee at the time of hire of his or her rights to purchase service credit for certain active service, prior to the persons first employment with that employer or entrance into the retirement system, in the Armed Forces of the United States or in the Merchant Marine of the United States, as specified.
The Public Employees Retirement Law (PERL) creates the Public Employees Retirement System (PERS) for the purpose of providing pension and other benefits to public employees, which are funded by employee and employer contributions and investment returns. PERS provides defined benefits to its members based on their final compensation, credited service, and age at retirement, subject to certain variations. Existing law provides a member with an absence due to military service or service with the uniformed services with the right to receive credit for service for the period of that absence and requires the members employer to contribute both the employee and employer contributions for that period if specified conditions are met.
This bill would require the Board of Administration of the Public Employees Retirement System to provide a separate and unique form to be used by a member to receive credit for his or her military service and would require the form to clearly state that the member has no obligation to pay for any portion of the employer contribution if eligibility is determined pursuant to certain provisions, as specified. The bill would require employers to both provide the member with that form and inform the member of his or her rights to receive that credit with employer-paid contributions within 30 days of the members return to state service and until April 1, 2017, would further require state appointing authorities to provide letters or electronic communications to all employees informing them of those rights.
Existing law authorizes a member to elect at any time prior to retirement, in accordance with regulations of the Board of Administration of the Public Employees Retirement System, to receive credit for public service, in addition to his or her current and prior service credit.
This bill would require an employer to inform a new employee at the time of hire of his or her rights to purchase service credit for certain active service, prior to the persons first employment with that employer or entrance into the retirement system, in the Armed Forces of the United States or in the Merchant Marine of the United States, as specified.
The State Civil Service Act requires the reinstatement of a permanent, probationary, or exempt employee who returns from active duty military service to his or her former position, as specified. Under existing law, reinstatement to an employees former exempt position reestablishes the employees tenure and civil service reinstatement rights, if any, as they existed immediately prior to his or her military leave. Existing law requires an employer to contribute an amount equal to the contributions that would have been made by the employer and the employee during the employees absence if that absence is due to military service or service with the uniformed services, except as specified.
The Public Employees Retirement Law (PERL) creates the Public Employees Retirement System (PERS) for the purpose of providing pension and other benefits to public employees, which are funded by employee and employer contributions and investment returns. PERS provides defined benefits to its members based on their final compensation, credited service, and age at retirement, subject to certain variations. Existing law provides a member with an absence due to military service or service with the uniformed services with the right to receive credit for service for the period of that absence and requires the members employer to contribute both the employee and employer contributions for that period if specified conditions are met.
This bill would require the Board of Administration of the Public Employees Retirement System to adopt provide a separate and unique form to be used by a member to receive credit for his or her military service, service with employer-paid employee and employer contributions, as specified. The bill would require employers to inform the member of his or her rights to receive that credit with employer-paid contributions within 30 days of the members return to state service by utilizing that form. The bill would additionally require an employer, on or before form and until April 1, 2017, would further require state appointing authorities to provide a letter letters or electronic communication communications to all employees informing them of their right to receive credit for military or uniform service pursuant to these provisions. those rights.
Existing law authorizes a member to elect at any time prior to retirement, in accordance with regulations of the Board of Administration of the Public Employees Retirement System, to receive credit for public service, in addition to his or her current and prior service credit.
This bill would require an employer to inform a new employee at the time of hire of his or her rights to purchase service credit as a result of that persons for certain active service, prior to entering the persons first employment with that employer or entrance into the retirement system, in the Armed Forces of the United States or the active service in the Merchant Marine of the United States prior to 1950, States, as specified.
The State Civil Service Act requires the reinstatement of a permanent, probationary, or exempt employee who returns from active duty military service to his or her former position, as specified. Under existing law, reinstatement to an employees former exempt position reestablishes the employees tenure and civil service reinstatement rights, if any, as they existed immediately prior to his or her military leave. Existing law requires an employer to contribute an amount equal to the contributions that would have been made by the employer and the employee during the employees absence if that absence is due to military service or service with the uniformed services, except as specified.
This bill would require the Board of Administration of the Public Employees Retirement System to adopt a separate and unique form to be used by a member to receive credit for his or her military service, as specified. The bill would require employers to inform the member of his or her rights within 30 days of the members return to state service by utilizing that form. The bill would additionally require an employer, on or before April 1, 2017, to provide a letter or electronic communication to all employees informing them of their right to receive credit for military or uniform service pursuant to these provisions.
Existing law authorizes a member to elect at any time prior to retirement, in accordance with regulations of the Board of Administration of the Public Employees Retirement System, to receive credit for public service, in addition to his or her current and prior service credit.
This bill would require an employer to inform a new employee at the time of hire of his or her rights to purchase service credit as a result of that persons active service, prior to entering the retirement system, in the Armed Forces of the United States or the active service in the Merchant Marine of the United States prior to 1950, as specified.
Existing law establishes the State Teachers Retirement System in order to provide a financially sound plan for the retirement, with adequate retirement allowances, of teachers in the public schools of this state, teachers in schools supported by this state, and other persons employed in connection with the schools. Existing law finds and declares that it is necessary and desirable that the system obtain the best possible investment expertise.
This bill would make a technical, nonsubstantive change to that provision.
Existing law establishes the State Teachers Retirement System in order to provide a financially sound plan for the retirement, with adequate retirement allowances, of teachers in the public schools of this state, teachers in schools supported by this state, and other persons employed in connection with the schools. Existing law finds and declares that it is necessary and desirable that the system obtain the best possible investment expertise.
This bill would make a technical, nonsubstantive change to that provision.
(a)Except as provided in Section 19781, a permanent, probationary, or exempt employee who begins active duty within 90 calendar days from the effective date of his or her long-term military leave or within 10 calendar days from the effective date of his or her short-term or emergency military leave and who returns to state service within six months after termination of military service under his or her long-term military leave or within 10 days after termination of military service under his or her short-term or emergency military leave shall be reinstated to his or her former position. Reinstatement to an employees former exempt position under this section or Section 19783 shall reestablish the employees tenure and civil service reinstatement rights, if any, as they existed immediately prior to his or her military leave pursuant to this section or resignation pursuant to Section 19783. For the purpose of this section any period of rehabilitation afforded by the United States or the state following active duty shall be considered as military service and termination of the state military emergency by the Governor shall be considered termination of military service.
(b)Within 30 days of the employees return to state service, the appointing authority shall inform the employee of his or her rights pursuant to Section 20997, and provide the member with the form provided pursuant to subdivision (f) of that section.
(c)Prior to April 1, 2017, every appointing authority shall provide a letter or electronic communication to all employees informing them of the rights provided by Section 20997.
SEC. 2.Section 20997 of the Government Code is amended to read:20997.(a)Notwithstanding any other provision of this part, for each member other than a National Guard member absent without compensation due to military service pursuant to Section 20990, the employer shall contribute an amount equal to the contributions that would have been made by the employer and the employee during the absence. The employers contribution pursuant to this section shall be based upon the members compensation earnable and the contribution rates in effect at the commencement of the absence, if any of the following apply:
(1)The member returns to state service within six months after receiving a discharge from military service other than dishonorable.
(2)The member returns to state service within six months after completion of any period of rehabilitation offered by the United States government, except that for purposes of this section, rehabilitation solely for education purposes shall not be considered.
(3)The member is granted a leave of absence from the state employer as of the same date the member was reinstated to that employment from military service, provided that the member returns to state service at the conclusion of the leave.
(4)The member is placed on a state civil service reemployment list within six months after receiving a discharge from military service other than dishonorable and returns to state service upon receipt of an offer of reemployment.
(5)The member retires from this system for service or disability during the course of an absence from state service for military service.
(6)The member dies during the course of an absence from state service for military service.
(b)Any member on leave from state service for military service who elects to continue contributing to this system shall be entitled to a refund of those contributions upon request.
(c)Any member who withdrew contributions during or in contemplation of his or her military service is entitled to the benefits of this section irrespective of whether the contributions are redeposited. The rate for future contributions for the member shall be based upon the members age at the time the member commenced a leave of absence from state service for service in the military.
(d)The employers contribution pursuant to this section may be made either in lump sum, or it may be included in its monthly contribution as adjusted by inclusion of the amount due in the employer rate at the valuation most near in time to the event causing the employers liability for those contributions. The employers contributions pursuant to this section shall be used solely for the purpose of paying retirement and death benefits and shall not be paid to the member whose contributions are refunded to him or her pursuant to Section 20735.
(e)Within 30 days of the members return to state service, the employer shall inform the member of his or her rights pursuant to this section, and provide the employee with the form provided pursuant to subdivision (f).
(f)The board shall provide a separate and unique form to be used by the member to receive credit for his or her military service. The form shall clearly state that the member has no obligation to pay for any portion of the employer contribution if eligibility is determined pursuant to this section.
SEC. 3.Section 21024 of the Government Code is amended to read:21024.(a)Public service with respect to a local member, other than a school member, also means active service with the Armed Forces or the Merchant Marine of the United States, including time during any period of rehabilitation afforded by the United States government other than a period of rehabilitation for purely educational purposes, and for six months thereafter prior to the members first employment by the employer under this section in which he or she was a member.
(b)Any member electing to receive credit for that public service shall make the contributions as specified in Sections 21050 and 21052. However, any eligible member who requests costing of service credit between January 1, 2001, and December 31, 2003, may, instead of making those contributions, make the payment calculated under this article as it read on December 31, 2000, which payment shall be made in the manner described in Section 21050.
(c)The public service under this section shall not include military service (1) in any period for which credit is otherwise given under this article or Article 4 (commencing with Section 20990) or (2) to the extent that total credit under this section would exceed four years.
(d)Notwithstanding Section 21034, a member may select which of two or more periods of service entitles him or her to receive public service under this section.
(e)This section shall apply to a member only if he or she elects to receive credit while he or she is in state service in the employment of one employer on or after the date of the employers election to be subject to this section.
(f)This section shall not apply to any contracting agency nor to the employees of any contracting agency until the agency elects to be subject to this section by amendment to its contract made in the manner prescribed for approval of contracts or in the case of contracts made after this section takes effect, by express provision in the contract making the contracting agency subject to this section. The amendments to this section made during the second year of the 19992000 Regular Session shall apply to contracts subject to this section on January 1, 2001.
(g)An employer shall inform a new employee at the time of hire of his or her rights to purchase service credit under this section.
SEC. 4.Section 21029 of the Government Code is amended to read:21029.(a)Public service with respect to a state member or a school member or with respect to a retired former state employee or a retired former school employee, who retired on or after December 31, 1981, also means active service, prior to entering this system as a state member or as a school member, of not less than one year in the Armed Forces of the United States, or, active service, prior to entering this system as a state or school member, of not less than one year in the Merchant Marine of the United States prior to January 1, 1950. Public service credit shall not be granted if the service described above terminated with a discharge under dishonorable conditions. The public service credit to be granted for that service shall be on the basis of one year of credit for each year of credited state service, but shall not exceed a total of four years of public service credit regardless of the number of years of either that service or subsequent state service. A state member or a school member or a retired former state employee or a retired former school employee electing to receive a credit for that public service shall have been credited with at least one year of state service on the date of election or the date of retirement.
(b)An election by a state member or a school member with respect to public service under this section may be made only while the member is in state, university, or school employment, and a retired former employee shall have retired immediately following service as a state member or as a school member. The retirement allowance of a retired former state employee or a retired former school employee, who elects to receive public service credit pursuant to this section shall be increased only with respect to the allowance payable on and after the date of election. For the purposes of this section, a member as described in subdivision (d) of Section 20776, shall also mean a former state employee or a former school employee, who retired on or after December 31, 1981.
(c)A member or retired former employee who elects to become subject to this section shall make the contributions as specified in Sections 21050 and 21052.
(d)The board has no duty to locate or notify any eligible former member who is currently retired or to provide the name or address of any such retired person, agency, or entity for the purpose of notifying those persons.
(e)An employer shall inform a new employee at the time of hire of his or her rights to purchase service credit under this section.
(a)Except as provided in Section 19781, a permanent, probationary, or exempt employee who begins active duty within 90 calendar days from the effective date of his or her long-term military leave or within 10 calendar days from the effective date of his or her short-term or emergency military leave and who returns to state service within six months after termination of military service under his or her long-term military leave or within 10 days after termination of military service under his or her short-term or emergency military leave shall be reinstated to his or her former position. Reinstatement to an employees former exempt position under this section or Section 19783 shall reestablish the employees tenure and civil service reinstatement rights, if any, as they existed immediately prior to his or her military leave pursuant to this section or resignation pursuant to Section 19783. For the purpose of this section any period of rehabilitation afforded by the United States or the state following active duty shall be considered as military service and termination of the state military emergency by the Governor shall be considered termination of military service.
(b)Within 30 days of the employees return to state service, the appointing authority shall inform the employee of his or her rights pursuant to Section 20997, and provide the member with the form provided pursuant to subdivision (f) of that section.
(c)Prior to April 1, 2017, every appointing authority shall provide a letter or electronic communication to all employees informing them of the rights provided by Section 20997.
SEC. 2.Section 20997 of the Government Code is amended to read:20997.(a)Notwithstanding any other provision of this part, for each member other than a National Guard member absent without compensation due to military service pursuant to Section 20990, the employer shall contribute an amount equal to the contributions that would have been made by the employer and the employee during the absence. The employers contribution pursuant to this section shall be based upon the members compensation earnable and the contribution rates in effect at the commencement of the absence, if any of the following apply:
(1)The member returns to state service within six months after receiving a discharge from military service other than dishonorable.
(2)The member returns to state service within six months after completion of any period of rehabilitation offered by the United States government, except that for purposes of this section, rehabilitation solely for education purposes shall not be considered.
(3)The member is granted a leave of absence from the state employer as of the same date the member was reinstated to that employment from military service, provided that the member returns to state service at the conclusion of the leave.
(4)The member is placed on a state civil service reemployment list within six months after receiving a discharge from military service other than dishonorable and returns to state service upon receipt of an offer of reemployment.
(5)The member retires from this system for service or disability during the course of an absence from state service for military service.
(6)The member dies during the course of an absence from state service for military service.
(b)Any member on leave from state service for military service who elects to continue contributing to this system shall be entitled to a refund of those contributions upon request.
(c)Any member who withdrew contributions during or in contemplation of his or her military service is entitled to the benefits of this section irrespective of whether the contributions are redeposited. The rate for future contributions for the member shall be based upon the members age at the time the member commenced a leave of absence from state service for service in the military.
(d)The employers contribution pursuant to this section may be made either in lump sum, or it may be included in its monthly contribution as adjusted by inclusion of the amount due in the employer rate at the valuation most near in time to the event causing the employers liability for those contributions. The employers contributions pursuant to this section shall be used solely for the purpose of paying retirement and death benefits and shall not be paid to the member whose contributions are refunded to him or her pursuant to Section 20735.
(e)Within 30 days of the members return to state service, the employer shall inform the member of his or her rights pursuant to this section, and provide the employee with the form provided pursuant to subdivision (f).
(f)The board shall provide a separate and unique form to be used by the member to receive credit for his or her military service. The form shall clearly state that the member has no obligation to pay for any portion of the employer contribution if eligibility is determined pursuant to this section.
SEC. 3.Section 21024 of the Government Code is amended to read:21024.(a)Public service with respect to a local member, other than a school member, also means active service with the Armed Forces or the Merchant Marine of the United States, including time during any period of rehabilitation afforded by the United States government other than a period of rehabilitation for purely educational purposes, and for six months thereafter prior to the members first employment by the employer under this section in which he or she was a member.
(b)Any member electing to receive credit for that public service shall make the contributions as specified in Sections 21050 and 21052. However, any eligible member who requests costing of service credit between January 1, 2001, and December 31, 2003, may, instead of making those contributions, make the payment calculated under this article as it read on December 31, 2000, which payment shall be made in the manner described in Section 21050.
(c)The public service under this section shall not include military service (1) in any period for which credit is otherwise given under this article or Article 4 (commencing with Section 20990) or (2) to the extent that total credit under this section would exceed four years.
(d)Notwithstanding Section 21034, a member may select which of two or more periods of service entitles him or her to receive public service under this section.
(e)This section shall apply to a member only if he or she elects to receive credit while he or she is in state service in the employment of one employer on or after the date of the employers election to be subject to this section.
(f)This section shall not apply to any contracting agency nor to the employees of any contracting agency until the agency elects to be subject to this section by amendment to its contract made in the manner prescribed for approval of contracts or in the case of contracts made after this section takes effect, by express provision in the contract making the contracting agency subject to this section. The amendments to this section made during the second year of the 19992000 Regular Session shall apply to contracts subject to this section on January 1, 2001.
(g)An employer shall inform a new employee at the time of hire of his or her rights to purchase service credit under this section.
SEC. 4.Section 21029 of the Government Code is amended to read:21029.(a)Public service with respect to a state member or a school member or with respect to a retired former state employee or a retired former school employee, who retired on or after December 31, 1981, also means active service, prior to entering this system as a state member or as a school member, of not less than one year in the Armed Forces of the United States, or, active service, prior to entering this system as a state or school member, of not less than one year in the Merchant Marine of the United States prior to January 1, 1950. Public service credit shall not be granted if the service described above terminated with a discharge under dishonorable conditions. The public service credit to be granted for that service shall be on the basis of one year of credit for each year of credited state service, but shall not exceed a total of four years of public service credit regardless of the number of years of either that service or subsequent state service. A state member or a school member or a retired former state employee or a retired former school employee electing to receive a credit for that public service shall have been credited with at least one year of state service on the date of election or the date of retirement.
(b)An election by a state member or a school member with respect to public service under this section may be made only while the member is in state, university, or school employment, and a retired former employee shall have retired immediately following service as a state member or as a school member. The retirement allowance of a retired former state employee or a retired former school employee, who elects to receive public service credit pursuant to this section shall be increased only with respect to the allowance payable on and after the date of election. For the purposes of this section, a member as described in subdivision (d) of Section 20776, shall also mean a former state employee or a former school employee, who retired on or after December 31, 1981.
(c)A member or retired former employee who elects to become subject to this section shall make the contributions as specified in Sections 21050 and 21052.
(d)The board has no duty to locate or notify any eligible former member who is currently retired or to provide the name or address of any such retired person, agency, or entity for the purpose of notifying those persons.
(e)An employer shall inform a new employee at the time of hire of his or her rights to purchase service credit under this section.
(a)Except as provided in Section 19781, a permanent, probationary, or exempt employee who begins active duty within 90 calendar days from the effective date of his or her long-term military leave or within 10 calendar days from the effective date of his or her short-term or emergency military leave and who returns to state service within six months after termination of military service under his or her long-term military leave or within 10 days after termination of military service under his or her short-term or emergency military leave shall be reinstated to his or her former position. Reinstatement to an employees former exempt position under this section or Section 19783 shall reestablish the employees tenure and civil service reinstatement rights, if any, as they existed immediately prior to his or her military leave pursuant to this section or resignation pursuant to Section 19783. For the purpose of this section any period of rehabilitation afforded by the United States or the state following active duty shall be considered as military service and termination of the state military emergency by the Governor shall be considered termination of military service.
(b)Within 30 days of the employees return to state service, the appointing authority shall inform the employee of his or her rights pursuant to Section 20997, and provide the member with the form authorized provided pursuant to subdivision (f) of that section.
(c)Prior to April 1, 2017, every appointing authority shall provide a letter or electronic communication to all employees informing them of the rights provided by Section 20997.
SEC. 2.Section 20997 of the Government Code is amended to read:20997.(a)Notwithstanding any other provision of this part, for each member other than a National Guard member absent without compensation due to military service pursuant to Section 20990, the employer shall contribute an amount equal to the contributions that would have been made by the employer and the employee during the absence. The employers contribution pursuant to this section shall be based upon the members compensation earnable and the contribution rates in effect at the commencement of the absence, if any of the following apply:
(1)The member returns to state service within six months after receiving a discharge from military service other than dishonorable.
(2)The member returns to state service within six months after completion of any period of rehabilitation offered by the United States government, except that for purposes of this section, rehabilitation solely for education purposes shall not be considered.
(3)The member is granted a leave of absence from the state employer as of the same date the member was reinstated to that employment from military service, provided that the member returns to state service at the conclusion of the leave.
(4)The member is placed on a state civil service reemployment list within six months after receiving a discharge from military service other than dishonorable and returns to state service upon receipt of an offer of reemployment.
(5)The member retires from this system for service or disability during the course of an absence from state service for military service.
(6)The member dies during the course of an absence from state service for military service.
(b)Any member on leave from state service for military service who elects to continue contributing to this system shall be entitled to a refund of those contributions upon request.
(c)Any member who withdrew contributions during or in contemplation of his or her military service is entitled to the benefits of this section irrespective of whether the contributions are redeposited. The rate for future contributions for the member shall be based upon the members age at the time the member commenced a leave of absence from state service for service in the military.
(d)The employers contribution pursuant to this section may be made either in lump sum, or it may be included in its monthly contribution as adjusted by inclusion of the amount due in the employer rate at the valuation most near in time to the event causing the employers liability for those contributions. The employers contributions pursuant to this section shall be used solely for the purpose of paying retirement and death benefits and shall not be paid to the member whose contributions are refunded to him or her pursuant to Section 20735.
(e)Within 30 days of the members return to state service, the employer shall inform the member of his or her rights pursuant to this section, and provide the employee with the form authorized provided pursuant to subdivision (f).
(f)The board shall authorize provide a separate and unique form to be used by the member to receive credit for his or her military service as provided by this section. The form shall not pertain to any other type of service credit purchase and service. The form shall clearly state that the member has no obligation to pay for any portion of the employer contribution required by this section. if eligibility is determined pursuant to this section.
SEC. 3.Section 21024 of the Government Code is amended to read:21024.(a)Public service with respect to a local member, other than a school member, also means active service with the Armed Forces or the Merchant Marine of the United States, including time during any period of rehabilitation afforded by the United States government other than a period of rehabilitation for purely educational purposes, and for six months thereafter prior to the members first employment by the employer under this section in which he or she was a member.
(b)Any member electing to receive credit for that public service shall make the contributions as specified in Sections 21050 and 21052. However, any eligible member who requests costing of service credit between January 1, 2001, and December 31, 2003, may, instead of making those contributions, make the payment calculated under this article as it read on December 31, 2000, which payment shall be made in the manner described in Section 21050.
(c)The public service under this section shall not include military service (1) in any period for which credit is otherwise given under this article or Article 4 (commencing with Section 20990) or (2) to the extent that total credit under this section would exceed four years.
(d)Notwithstanding Section 21034, a member may select which of two or more periods of service entitles him or her to receive public service under this section.
(e)This section shall apply to a member only if he or she elects to receive credit while he or she is in state service in the employment of one employer on or after the date of the employers election to be subject to this section.
(f)This section shall not apply to any contracting agency nor to the employees of any contracting agency until the agency elects to be subject to this section by amendment to its contract made in the manner prescribed for approval of contracts or in the case of contracts made after this section takes effect, by express provision in the contract making the contracting agency subject to this section. The amendments to this section made during the second year of the 19992000 Regular Session shall apply to contracts subject to this section on January 1, 2001.
(g)An employer shall inform a new employee at the time of hire of his or her rights to purchase service credit under this section.
SEC. 3.SEC. 4.Section 21029 of the Government Code is amended to read:21029.(a)Public service with respect to a state member or a school member or with respect to a retired former state employee or a retired former school employee, who retired on or after December 31, 1981, also means active service, prior to entering this system as a state member or as a school member, of not less than one year in the Armed Forces of the United States, or, active service, prior to entering this system as a state or school member, of not less than one year in the Merchant Marine of the United States prior to January 1, 1950. Public service credit shall not be granted if the service described above terminated with a discharge under dishonorable conditions. The public service credit to be granted for that service shall be on the basis of one year of credit for each year of credited state service, but shall not exceed a total of four years of public service credit regardless of the number of years of either that service or subsequent state service. A state member or a school member or a retired former state employee or a retired former school employee electing to receive a credit for that public service shall have been credited with at least one year of state service on the date of election or the date of retirement.
(b)An election by a state member or a school member with respect to public service under this section may be made only while the member is in state, university, or school employment, and a retired former employee shall have retired immediately following service as a state member or as a school member. The retirement allowance of a retired former state employee or a retired former school employee, who elects to receive public service credit pursuant to this section shall be increased only with respect to the allowance payable on and after the date of election. For the purposes of this section, a member as described in subdivision (d) of Section 20776, shall also mean a former state employee or a former school employee, who retired on or after December 31, 1981.
(c)A member or retired former employee who elects to become subject to this section shall make the contributions as specified in Sections 21050 and 21052.
(d)The board has no duty to locate or notify any eligible former member who is currently retired or to provide the name or address of any such retired person, agency, or entity for the purpose of notifying those persons.
(e)An employer shall inform a new employee at the time of hire of his or her rights to purchase service credit under this section.
(a)Except as provided in Section 19781, a permanent, probationary, or exempt employee who begins active duty within 90 calendar days from the effective date of his or her long-term military leave or within 10 calendar days from the effective date of his or her short-term or emergency military leave and who returns to state service within six months after termination of military service under his or her long-term military leave or within 10 days after termination of military service under his or her short-term or emergency military leave shall be reinstated to his or her former position. Reinstatement to an employees former exempt position under this section or Section 19783 shall reestablish the employees tenure and civil service reinstatement rights, if any, as they existed immediately prior to his or her military leave pursuant to this section or resignation pursuant to Section 19783. For the purpose of this section any period of rehabilitation afforded by the United States or the state following active duty shall be considered as military service and termination of the state military emergency by the Governor shall be considered termination of military service.
(b)Within 30 days of the employees return to state service, the appointing authority shall inform the employee of his or her rights pursuant to Section 20997, and provide the member with the form authorized pursuant to subdivision (f) of that section.
(c)Prior to April 1, 2017, every appointing authority shall provide a letter or electronic communication to all employees informing them of the rights provided by Section 20997.
SEC. 2.Section 20997 of the Government Code is amended to read:20997.(a)Notwithstanding any other provision of this part, for each member other than a National Guard member absent without compensation due to military service pursuant to Section 20990, the employer shall contribute an amount equal to the contributions that would have been made by the employer and the employee during the absence. The employers contribution pursuant to this section shall be based upon the members compensation earnable and the contribution rates in effect at the commencement of the absence, if any of the following apply:
(1)The member returns to state service within six months after receiving a discharge from military service other than dishonorable.
(2)The member returns to state service within six months after completion of any period of rehabilitation offered by the United States government, except that for purposes of this section, rehabilitation solely for education purposes shall not be considered.
(3)The member is granted a leave of absence from the state employer as of the same date the member was reinstated to that employment from military service, provided that the member returns to state service at the conclusion of the leave.
(4)The member is placed on a state civil service reemployment list within six months after receiving a discharge from military service other than dishonorable and returns to state service upon receipt of an offer of reemployment.
(5)The member retires from this system for service or disability during the course of an absence from state service for military service.
(6)The member dies during the course of an absence from state service for military service.
(b)Any member on leave from state service for military service who elects to continue contributing to this system shall be entitled to a refund of those contributions upon request.
(c)Any member who withdrew contributions during or in contemplation of his or her military service is entitled to the benefits of this section irrespective of whether the contributions are redeposited. The rate for future contributions for the member shall be based upon the members age at the time the member commenced a leave of absence from state service for service in the military.
(d)The employers contribution pursuant to this section may be made either in lump sum, or it may be included in its monthly contribution as adjusted by inclusion of the amount due in the employer rate at the valuation most near in time to the event causing the employers liability for those contributions. The employers contributions pursuant to this section shall be used solely for the purpose of paying retirement and death benefits and shall not be paid to the member whose contributions are refunded to him or her pursuant to Section 20735.
(e)Within 30 days of the members return to state service, the employer shall inform the member of his or her rights pursuant to this section, and provide the employee with the form authorized pursuant to subdivision (f).
(f)The board shall authorize a separate and unique form to be used by the member to receive credit for his or her military service as provided by this section. The form shall not pertain to any other type of service credit purchase and shall clearly state that the member has no obligation to pay for any portion of the employer contribution required by this section.
SEC. 3.Section 21029 of the Government Code is amended to read:21029.(a)Public service with respect to a state member or a school member or with respect to a retired former state employee or a retired former school employee, who retired on or after December 31, 1981, also means active service, prior to entering this system as a state member or as a school member, of not less than one year in the Armed Forces of the United States, or, active service, prior to entering this system as a state or school member, of not less than one year in the Merchant Marine of the United States prior to January 1, 1950. Public service credit shall not be granted if the service described above terminated with a discharge under dishonorable conditions. The public service credit to be granted for that service shall be on the basis of one year of credit for each year of credited state service, but shall not exceed a total of four years of public service credit regardless of the number of years of either that service or subsequent state service. A state member or a school member or a retired former state employee or a retired former school employee electing to receive a credit for that public service shall have been credited with at least one year of state service on the date of election or the date of retirement.
(b)An election by a state member or a school member with respect to public service under this section may be made only while the member is in state, university, or school employment, and a retired former employee shall have retired immediately following service as a state member or as a school member. The retirement allowance of a retired former state employee or a retired former school employee, who elects to receive public service credit pursuant to this section shall be increased only with respect to the allowance payable on and after the date of election. For the purposes of this section, a member as described in subdivision (d) of Section 20776, shall also mean a former state employee or a former school employee, who retired on or after December 31, 1981.
(c)A member or retired former employee who elects to become subject to this section shall make the contributions as specified in Sections 21050 and 21052.
(d)The board has no duty to locate or notify any eligible former member who is currently retired or to provide the name or address of any such retired person, agency, or entity for the purpose of notifying those persons.
(e)An employer shall inform a new employee at the time of hire of his or her rights to purchase service credit under this section.
SECTION 1.Section 22350 of the Education Code is amended to read:22350.The Legislature finds and declares that the changing economic conditions and increasing complexity in the investment market make it necessary and desirable that the system obtain the best possible investment expertise.
TextPage 4.The Legislature finds and declares that the changing economic conditions and increasing complexity in the investment market make it necessary and desirable that the system obtain the best possible investment expertise.
|
Date
|
Status
|
|---|---|
| Apr 28, 2016 | Referred to Com. on P.E., R., & S.S. |
| Aug 24, 2016 | Enrolled and presented to the Governor at 5 p.m. |
| Aug 18, 2016 | Assembly amendments concurred in. (Ayes 36. Noes 0.) Ordered to engrossing and enrolling. |
| Aug 18, 2016 | Assembly amendments concurred in. (Ayes 36. Noes 0. Page 5140.) Ordered to engrossing and enrolling. |
| Aug 16, 2016 | Ordered to special consent calendar. |
| Aug 11, 2016 | Read third time. Passed. (Ayes 78. Noes 0. Page 5777.) Ordered to the Senate. |
| Aug 11, 2016 | Read third time. Passed. Ordered to the Senate. |
| Aug 11, 2016 | In Senate. Concurrence in Assembly amendments pending. |
| Aug 4, 2016 | Read second time. Ordered to consent calendar. |
| Aug 3, 2016 | From committee: Do pass. Ordered to consent calendar. (Ayes 20. Noes 0.) (August 3). |
| Aug 1, 2016 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR. |
| Jun 29, 2016 | June 29 set for first hearing. Placed on APPR. suspense file. |
| Jun 29, 2016 | June 29 set for first hearing canceled at the request of author. |
| Jun 22, 2016 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 6. Noes 0.) (June 22). Re-referred to Com. on APPR. |
| Feb 23, 2015 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
| Jan 26, 2016 | In Assembly. Read first time. Held at Desk. |
| Jan 25, 2016 | Read third time. Passed. (Ayes 38. Noes 0. Page 2943.) Ordered to the Assembly. |
| Jan 20, 2016 | Read second time. Ordered to third reading. |
| Jan 19, 2016 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8. |
| Jan 16, 2016 | Set for hearing January 19. |
| Jan 15, 2016 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 3. Noes 0. Page 2908.) (January 14). Re-referred to Com. on APPR. |
| Jan 8, 2016 | Set for hearing January 14. |
| Jan 6, 2016 | Re-referred to Com. on P.E. & R. |
| Jan 4, 2016 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. |
| Jan 4, 2016 | (Corrected January 6) |
| Mar 5, 2015 | Referred to Com. on RLS. |
| Feb 24, 2015 | From printer. May be acted upon on or after March 26. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 18, 2016 | Special Consent SB294 Pan | Senate Floor |
Passed |
|
| Aug 11, 2016 | SB 294 Pan Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| Aug 3, 2016 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jun 22, 2016 | Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | Assembly Standing Committee on Public Employees, Retirement, and Social Security |
Passed |
|
| Jan 25, 2016 | Senate 3rd Reading SB294 Pan | Senate Floor |
Passed |
|
| Jan 14, 2016 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Public Employment and Retirement |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| CAL FIRE, Local 2881 | ** Support | Jan 25, 2016 |
| California Association Of Highway Patrolmen | ** Support | Jan 25, 2016 |
| California Correctional Peace Officers Association | ** Support | Jan 25, 2016 |
| California Professional Firefighters | ** Support | Jan 25, 2016 |
| Organization Of Smud Employees | ** Support | Jan 25, 2016 |
| Peace Officers Research Association Of California | ** Support | Jan 25, 2016 |
| San Diego County Court Employees Association | ** Support | Jan 25, 2016 |
| San Luis Obispo County Employees Association | ** Support | Jan 25, 2016 |
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
UNFINISHED BUSINESS
Bill No: SB 294
:
SENATE PUBLIC EMP. & RET. COMMITTEE: 3-0, 1/14/16
AYES: Pan, Beall, Hall
NO VOTE RECORDED: Morrell, Moorlach
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SENATE FLOOR: 38-0, 1/25/16
AYES: Allen, Anderson, Beall, Berryhill, Block, Cannella, De León, Fuller, Gaines, Galgiani, Glazer, Hall, Hancock, Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson, Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning, Moorlach, Morrell, Nguyen, Nielsen, Pan, Pavley, Roth, Runner, Vidak, Wieckowski, Wolk
NO VOTE RECORDED: Bates, Stone
ASSEMBLY FLOOR: 78-0, 8/11/16 (Consent) - See last page for vote
California Association of Highway Patrolmen
Peace Officers Research Association of California
DIGEST: This bill requires employers that participate in the California Public Employees’ Retirement System (CalPERS) to inform employees of the rights of returning veteran employees to receive CalPERS credit for their periods of active service and requires employers to provide veterans with the forms necessary to claim the service credit. This bill requires CalPERS to create a unique form that clearly states this is an employer-paid benefit and requires employers to also inform new employees who are veterans of their rights to purchase CalPERS service credit for their military service performed prior to CalPERS membership.
Assembly Amendments clarify that the returning veteran has no obligation to pay any portion of the employer contribution so long as eligibility has been determined by CalPERS, and clarified that all CalPERS employers must inform veterans of their rights to purchase military service performed prior to being hired, as allowable by the retirement system.
ANALYSIS:
Existing law:
- Requires that a public employee in the CalPERS retirement system who takes a leave of absence to perform active military duty is entitled to certain rights upon return to public employment, including the right to receive salary adjustments, retirement contributions, and applicable service credit in the retirement system as if the individual had been working in his or her job during the period of active military duty, as specified.
2) Requires the returning veteran, in order to receive the retirement service credit, to file an application form with CalPERS.
- Requires a CalPERS employer to pay the entire cost of the applicable service credit for a returning veteran employee, as specified, once the employee has filed the appropriate form and been deemed eligible by CalPERS.
- Requires, in order to be eligible for the employer-paid service credit, that the employee meet certain criteria, including returning to their public employment within six months of being honorably discharged from military service or completing a period of rehabilitation offered by the United States Government, as specified.
- Allows a veteran who performed active military duty prior to membership in CalPERS, or who took a leave of absence to perform military service but does not otherwise meet the requirements for the employer-paid service credit, to purchase that military service in the retirement system as additional service credit, as specified. This type of service credit purchase is paid for entirely by the employee with no cost to the employer.
This bill:
- Requires CalPERS to create a separate and unique form for returning public employee veterans that clearly states that the veteran has no obligation to pay any portion of the employer cost for applicable service credit during the eligible period of military duty so long as eligibility is confirmed by CalPERS upon reviewing the employee’s service credit request.
- Requires CalPERS employers to inform returning veterans of their rights to receive service credit in CalPERS for their periods of military service and requires employers to provide veterans with the appropriate CalPERS form to receive the service credit.
- Requires the state employer, on or before March 31, 2017, to inform all state employees in a letter or electronic transmission of the rights of returning veteran employees to receive service credit in CalPERS for their military service at no cost to the returning veterans.
- Requires all CalPERS employers, upon hiring a veteran, to inform the veteran of his or her right to purchase service credit in CalPERS for his or her military duty prior to employment and membership in CalPERS.
Background
According to the author:
Existing law provides that a CalPERS member who goes on active military service is entitled to return to his or her job following discharge from that active service. In addition, the returning veteran is entitled to receive an employer contribution to CalPERS for credit in CalPERS during the time of the active military service as if the member had remained in his or her CalPERS-covered employment during that time. This benefit is paid for entirely by the employer and costs nothing to the returning veteran.
However, in order to receive this benefit, the veteran must complete a service credit purchase form for CalPERS, and this requirement has resulted in several problems. First, some veterans do not realize that they are entitled to the benefit, or they think the benefit is automatic. If the employer or another individual does not inform the returning veteran of the benefit and how to receive it, he or she may not be aware that an action is required on the veteran’s part to receive the benefit.
Second, the form CalPERS uses for this benefit is confusing. It is currently combined with another option to allow public employees to purchase military service credit for military service preformed prior to being a public employee. This type of service credit is costly and some veterans become confused and forgo applying for the service credit they are entitled to at no charge because they mistakenly believe it to be too expensive. Some veterans go years without applying for this no-cost benefit, or may never apply.
Without an application, CalPERS cannot credit service and does not have a record of the applicable military service. Veterans and their survivors, in some cases, may be losing valuable benefits.
Related/Prior Legislation
SB 221 (Jackson, Chapter 794, Statutes of 2015) allowed a state employee who is a disabled military veteran, in his or her first year of employment, to receive up to 96 hours of additional sick leave for the purpose of undergoing medical treatment for his or her military service-connected disability.
AB 372 (Eggman, Chapter 75, Statutes of 2013) required that whenever any veteran, widow or widower of a veteran, or spouse of a 100% disabled veteran achieves a passing score on an entrance examination for state employment, he or she will be placed in the top rank of the resulting hiring eligibility list.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to Assembly Appropriations Committee, this bill will have a “negligible fiscal impact.”
SUPPORT: (Verified 8/17/16)
CAL FIRE, Local 2881 (co-source)
California Association of Highway Patrolmen (co-source)
Peace Officers Research Association of California (co-source)
American Legion, Department of California
AMVETS, Department of California
California Association of County Veterans Service Officers
California Correctional Peace Officers Association
California Federation of Teachers
California Professional Firefighters
California State Commanders Veterans Council
Los Angeles Professional Peace Officers Association
Military Officers Association of America, California Council of Chapters
Organization of SMUD Employees
San Diego County Court Employees Association
San Luis Obispo County Employees Association
Veteran of Foreign Wars, Department of California
OPPOSITION: (Verified 8/11/16)
None received
ARGUMENTS IN SUPPORT:
As stated by the sponsors:
Current law allows for public employees who have taken a leave of absence for active military duty to return to their previous jobs and receive any salary increases and /or promotions they would have received while on duty. In addition, they are also entitled to fully employer–paid contributions to CalPERS for applicable service credit. In order to receive this benefit, proper paperwork must be filed with CalPERS. Unfortunately, most public employees are ill-informed or misinformed on their rights and do not apply for the benefit.
According to the California Professional Firefighters:
Firefighters in California proudly serve their communities every day. Many serve their country as reservists or, prior to becoming a firefighter, were enlisted as active duty members in various branches of the military. SB 294 helps to ensure that veterans who return to their public service jobs after taking leave to perform active military service can in fact receive the service credit that they are entitled to in the Public Employees’ Retirement System (CalPERS). Further, this bill requires the state and school employers that hire veterans to inform them of their rights to purchase service credit in CalPERS for their periods of military service prior to employment.
ASSEMBLY FLOOR: 78-0, 8/11/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon
NO VOTE RECORDED: Roger Hernández, Low
8/17/16 13:23:53
**** END ****
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
UNFINISHED BUSINESS
Bill No: SB 294
:
SENATE PUBLIC EMP. & RET. COMMITTEE: 3-0, 1/14/16
AYES: Pan, Beall, Hall
NO VOTE RECORDED: Morrell, Moorlach
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SENATE FLOOR: 38-0, 1/25/16
AYES: Allen, Anderson, Beall, Berryhill, Block, Cannella, De León, Fuller, Gaines, Galgiani, Glazer, Hall, Hancock, Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson, Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning, Moorlach, Morrell, Nguyen, Nielsen, Pan, Pavley, Roth, Runner, Vidak, Wieckowski, Wolk
NO VOTE RECORDED: Bates, Stone
ASSEMBLY FLOOR: 78-0, 8/11/16 (Consent) - See last page for vote
California Association of Highway Patrolmen
Peace Officers Research Association of California
DIGEST: This bill requires employers that participate in the California Public Employees’ Retirement System (CalPERS) to inform employees of the rights of returning veteran employees to receive CalPERS credit for their periods of active service and requires employers to provide veterans with the forms necessary to claim the service credit. This bill requires CalPERS to create a unique form that clearly states this is an employer-paid benefit and requires employers to also inform new employees who are veterans of their rights to purchase CalPERS service credit for their military service performed prior to CalPERS membership.
Assembly Amendments clarify that the returning veteran has no obligation to pay any portion of the employer contribution so long as eligibility has been determined by CalPERS, and clarified that all CalPERS employers must inform veterans of their rights to purchase military service performed prior to being hired, as allowable by the retirement system.
ANALYSIS:
Existing law:
- Requires that a public employee in the CalPERS retirement system who takes a leave of absence to perform active military duty is entitled to certain rights upon return to public employment, including the right to receive salary adjustments, retirement contributions, and applicable service credit in the retirement system as if the individual had been working in his or her job during the period of active military duty, as specified.
2) Requires the returning veteran, in order to receive the retirement service credit, to file an application form with CalPERS.
- Requires a CalPERS employer to pay the entire cost of the applicable service credit for a returning veteran employee, as specified, once the employee has filed the appropriate form and been deemed eligible by CalPERS.
- Requires, in order to be eligible for the employer-paid service credit, that the employee meet certain criteria, including returning to their public employment within six months of being honorably discharged from military service or completing a period of rehabilitation offered by the United States Government, as specified.
- Allows a veteran who performed active military duty prior to membership in CalPERS, or who took a leave of absence to perform military service but does not otherwise meet the requirements for the employer-paid service credit, to purchase that military service in the retirement system as additional service credit, as specified. This type of service credit purchase is paid for entirely by the employee with no cost to the employer.
This bill:
- Requires CalPERS to create a separate and unique form for returning public employee veterans that clearly states that the veteran has no obligation to pay any portion of the employer cost for applicable service credit during the eligible period of military duty so long as eligibility is confirmed by CalPERS upon reviewing the employee’s service credit request.
- Requires CalPERS employers to inform returning veterans of their rights to receive service credit in CalPERS for their periods of military service and requires employers to provide veterans with the appropriate CalPERS form to receive the service credit.
- Requires the state employer, on or before March 31, 2017, to inform all state employees in a letter or electronic transmission of the rights of returning veteran employees to receive service credit in CalPERS for their military service at no cost to the returning veterans.
- Requires all CalPERS employers, upon hiring a veteran, to inform the veteran of his or her right to purchase service credit in CalPERS for his or her military duty prior to employment and membership in CalPERS.
Background
According to the author:
Existing law provides that a CalPERS member who goes on active military service is entitled to return to his or her job following discharge from that active service. In addition, the returning veteran is entitled to receive an employer contribution to CalPERS for credit in CalPERS during the time of the active military service as if the member had remained in his or her CalPERS-covered employment during that time. This benefit is paid for entirely by the employer and costs nothing to the returning veteran.
However, in order to receive this benefit, the veteran must complete a service credit purchase form for CalPERS, and this requirement has resulted in several problems. First, some veterans do not realize that they are entitled to the benefit, or they think the benefit is automatic. If the employer or another individual does not inform the returning veteran of the benefit and how to receive it, he or she may not be aware that an action is required on the veteran’s part to receive the benefit.
Second, the form CalPERS uses for this benefit is confusing. It is currently combined with another option to allow public employees to purchase military service credit for military service preformed prior to being a public employee. This type of service credit is costly and some veterans become confused and forgo applying for the service credit they are entitled to at no charge because they mistakenly believe it to be too expensive. Some veterans go years without applying for this no-cost benefit, or may never apply.
Without an application, CalPERS cannot credit service and does not have a record of the applicable military service. Veterans and their survivors, in some cases, may be losing valuable benefits.
Related/Prior Legislation
SB 221 (Jackson, Chapter 794, Statutes of 2015) allowed a state employee who is a disabled military veteran, in his or her first year of employment, to receive up to 96 hours of additional sick leave for the purpose of undergoing medical treatment for his or her military service-connected disability.
AB 372 (Eggman, Chapter 75, Statutes of 2013) required that whenever any veteran, widow or widower of a veteran, or spouse of a 100% disabled veteran achieves a passing score on an entrance examination for state employment, he or she will be placed in the top rank of the resulting hiring eligibility list.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to Assembly Appropriations Committee, this bill will have a “negligible fiscal impact.”
SUPPORT: (Verified 8/11/16)
CAL FIRE, Local 2881 (co-source)
California Association of Highway Patrolmen (co-source)
Peace Officers Research Association of California (co-source)
American Legion, Department of California
AMVETS, Department of California
California Association of County Veterans Service Officers
California Correctional Peace Officers Association
California Federation of Teachers
California Professional Firefighters
California State Commanders Veterans Council
Military Officers Association of America, California Council of Chapters
Organization of SMUD Employees
San Diego County Court Employees Association
San Luis Obispo County Employees Association
Veteran of Foreign Wars, Department of California
OPPOSITION: (Verified 8/11/16)
None received
ARGUMENTS IN SUPPORT:
As stated by the sponsors:
Current law allows for public employees who have taken a leave of absence for active military duty to return to their previous jobs and receive any salary increases and /or promotions they would have received while on duty. In addition, they are also entitled to fully employer–paid contributions to CalPERS for applicable service credit. In order to receive this benefit, proper paperwork must be filed with CalPERS. Unfortunately, most public employees are ill-informed or misinformed on their rights and do not apply for the benefit.
According to the California Professional Firefighters:
Firefighters in California proudly serve their communities every day. Many serve their country as reservists or, prior to becoming a firefighter, were enlisted as active duty members in various branches of the military. SB 294 helps to ensure that veterans who return to their public service jobs after taking leave to perform active military service can in fact receive the service credit that they are entitled to in the Public Employees’ Retirement System (CalPERS). Further, this bill requires the state and school employers that hire veterans to inform them of their rights to purchase service credit in CalPERS for their periods of military service prior to employment.
ASSEMBLY FLOOR: 78-0, 8/11/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon
NO VOTE RECORDED: Roger Hernández, Low
8/12/16 13:23:53
**** END ****
Date of Hearing: August 3, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
SBPCA Bill Id:SB 294
Author:(Pan) – As Amended Ver:August 1, 2016
Policy Committee: | Public Employees, Retirement/Soc Sec | Vote: | 6 - 0 |
|
| ||
|
|
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill requires employers that participate in the California Public Employees’ Retirement System (CalPERS) to inform employees of the rights of returning veteran employees to receive CalPERS credit for their periods of active service and requires employers to provide veterans with the forms necessary to claim the service credit.
FISCAL EFFECT:
Negligible fiscal impact.
COMMENTS:
- Background and Purpose. Under existing law, a public employee in the CalPERS retirement system who takes a leave of absence to perform active military duty is entitled to receive salary adjustments, retirement contributions, and applicable service credit in the retirement system as if that employee had been working in his or her job during the period of active military duty.
According to the author, returning veterans have run into a number of obstacles to receiving their owed service credit and employer contributions. Some veterans assume the benefit is automatic, and the CalPERS form that veterans must fill out is seen as confusing. Because of these limitations, some returning veterans do not receive the retirement benefit that they are owed. Supporters of SB 294 contend that this bill will help ensure that all veterans are aware of their benefit and the process to claim the CalPERS credit.
- August 1, 2016 Amendments. SB 294 was amended on August 1, 2016 to include technical amendments suggested by CalPERS. Those amendments expanding a provision in SB 294 that requires an employer to inform a new state or school employee of his or her rights to purchase service credit to apply also to non-school local members.
Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081
SENATE COMMITTEE ON
PUBLIC EMPLOYMENT AND RETIREMENT
Dr. Richard Pan, Chair
2015 - 2016 Regular
Bill No: SB 294 Hearing Date: 1/14/16
Author: | Pan | ||
Version: | 1/04/16 As amended | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Pamela Schneider | ||
Subject: Public employment: military service: return to state service
SOURCE: California Association of Highway Patrol
CAL FIRE, Local 2881
Peace Officers Research Association of California
DIGEST: This bill requires that CalPERS employers inform returning veterans of their rights to receive CalPERS credit for their periods of active military service, and requires employers to provide veterans with the forms necessary to claim the service credit. CalPERS must create a service credit form that clearly states this is an employer-paid benefit.
Employers must also inform new employees who are veterans of their rights to purchase CalPERS service credit for their military service performed prior to CalPERS membership.
ANALYSIS:
Existing law:
- Requires that a public employee in the CalPERS retirement system who takes a leave of absence to perform active military duty is entitled to certain rights upon return to public employment, including the right to receive salary adjustments, retirement contributions, and applicable service credit in the retirement system as if the individual had been working in his or her job during the period of active military duty, as specified.
- Requires the returning veteran, in order to receive the retirement service credit, to file an application form with CalPERS.
- Requires a CalPERS employer to pay the entire cost of the applicable service credit for a returning veteran employee, as specified, once the employee has filed the appropriate form.
- Allows a veteran who performed active military duty prior to membership in CalPERS to purchase that military service in the retirement system as additional service credit, as specified. This type of service credit purchase is paid for entirely by the employee with no cost to the employer.
This bill:
- Requires CalPERS to create a separate and unique form for returning public employee veterans that clearly states that the veteran has no obligation to pay any portion of the employer cost of applicable service credit during the eligible period of military duty.
- Requires CalPERS employers to inform returning veterans of their rights to receive service credit in CalPERS for their periods of military service and requires employers to provide veterans with the appropriate CalPERS form to receive the service credit.
- Requires the state employer, on or before March 31, 2017, to inform all state employees in a letter or electronic transmission of the rights of returning veteran employees to receive service credit in CalPERS for their military service at no cost to the returning veterans.
- Requires all CalPERS employers, upon hiring a veteran, to inform the veteran of his or her right to purchase service credit in CalPERS for his or her military duty prior to employment and membership in CalPERS.
Background
According to the author:
Existing law provides that a CalPERS member who goes on active military service is entitled to return to his or her job following discharge from that active service. In addition, the returning veteran is entitled to receive an employer contribution to CalPERS for credit in CalPERS during the time of the active military service as if the member had remained in his or her CalPERS-covered employment during that time. This benefit is paid for entirely by the employer and costs nothing to the returning veteran.
However, in order to receive this benefit, the veteran must complete a service credit purchase form for CalPERS, and this requirement has resulted in several problems. First, some veterans do not realize that they are entitled to the benefit, or they think the benefit is automatic. If the employer or another individual does not inform the returning veteran of the benefit and how to receive it, he or she may not be aware that an action is required on the veteran’s part to receive the benefit.
Second, the form CalPERS uses for this benefit is confusing. It is currently combined with another option to allow public employees to purchase military service credit for military service preformed prior to being a public employee. This type of service credit is costly and some veterans become confused and forgo applying for the service credit they are entitled to at no charge because they mistakenly believe it to be too expensive. Some veterans go years without applying for this no-cost benefit, or may never apply.
Without an application, CalPERS cannot credit service and does not have a record of the applicable military service. Veterans and their survivors, in some cases, may be losing valuable benefits.
Prior/Related Legislation
SB 221 (Jackson, Chapter 794, Statutes of 2015) allows a state employee who is a disabled military veteran, in his or her first year of employment, to receive up to 96 hours of additional sick leave for the purpose of undergoing medical treatment for his or her military service-connected disability.
AB 372 (Eggman, Chapter 75, Statutes of 2013) requires that whenever any veteran, widow or widower of a veteran, or spouse of a 100% disabled veteran achieves a passing score on an entrance examination for state employment, he or she will be placed in the top rank of the resulting hiring eligibility list.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
SUPPORT:
CAL FIRE, Local 2881 (co-source)
California Association of Highway Patrolmen (co-source)
Peace Officers Research Association of California (co-source)
California Correctional Peace Officers Association
California Professional Firefighters
Organization of SMUD Employees
San Diego County Court Employees Association
San Luis Obispo County Employees Association
OPPOSITION:
None received
ARGUMENTS IN SUPPORT:
As stated by sponsors:
Current law allows for public employees who have taken a leave of absence for active military duty to return to their previous jobs and receive any salary increases and /or promotions they would have received while on duty. In addition, they are also entitled to fully employer–paid contributions to CalPERS for applicable service credit. In order to receive this benefit, proper paperwork must be filed with CalPERS. Unfortunately, most public employees are ill-informed or misinformed on their rights and do not apply for the benefit.
According to the California Professional Firefighters:
Firefighters in California proudly serve their communities every day. Many serve their country as reservists or, prior to becoming a firefighter, were enlisted as active duty members in various branches of the military. SB 294 helps to ensure that veterans who return to their public service jobs after taking leave to perform active military service can in fact receive the service credit that they are entitled to in the Public Employees’ Retirement System (CalPERS). Further, this bill requires the state and school employers that hire veterans to inform them of their rights to purchase service credit in CalPERS for their period of military service prior to employment.
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
THIRD READING
Bill No: SB 294
:
SENATE PUBLIC EMP. & RET. COMMITTEE: 3-0, 1/14/16
AYES: Pan, Beall, Hall
NO VOTE RECORDED: Morrell, Moorlach
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
California Association of Highway Patrolmen
Peace Officers Research Association of California
DIGEST: This bill requires that CalPERS employers inform returning veterans of their rights to receive CalPERS credit for their periods of active military service, and requires employers to provide veterans with the forms necessary to claim the service credit. Requires CalPERS to create a service credit form that clearly states this is an employer-paid benefit. Requires employers to also inform new employees who are veterans of their rights to purchase CalPERS service credit for their military service performed prior to CalPERS membership.
ANALYSIS:
Existing law:
- Requires that a public employee in the CalPERS retirement system who takes a leave of absence to perform active military duty is entitled to certain rights upon return to public employment, including the right to receive salary adjustments, retirement contributions, and applicable service credit in the retirement system as if the individual had been working in his or her job during the period of active military duty, as specified.
- Requires the returning veteran, in order to receive the retirement service credit, to file an application form with CalPERS.
- Requires a CalPERS employer to pay the entire cost of the applicable service credit for a returning veteran employee, as specified, once the employee has filed the appropriate form.
- Allows a veteran who performed active military duty prior to membership in CalPERS to purchase that military service in the retirement system as additional service credit, as specified. This type of service credit purchase is paid for entirely by the employee with no cost to the employer.
This bill:
- Requires CalPERS to create a separate and unique form for returning public employee veterans that clearly states that the veteran has no obligation to pay any portion of the employer cost of applicable service credit during the eligible period of military duty.
- Requires CalPERS employers to inform returning veterans of their rights to receive service credit in CalPERS for their periods of military service and requires employers to provide veterans with the appropriate CalPERS form to receive the service credit.
- Requires the state employer, on or before March 31, 2017, to inform all state employees in a letter or electronic transmission of the rights of returning veteran employees to receive service credit in CalPERS for their military service at no cost to the returning veterans.
- Requires all CalPERS employers, upon hiring a veteran, to inform the veteran of his or her right to purchase service credit in CalPERS for his or her military duty prior to employment and membership in CalPERS.
Background
According to the author:
Existing law provides that a CalPERS member who goes on active military service is entitled to return to his or her job following discharge from that active service. In addition, the returning veteran is entitled to receive an employer contribution to CalPERS for credit in CalPERS during the time of the active military service as if the member had remained in his or her CalPERS-covered employment during that time. This benefit is paid for entirely by the employer and costs nothing to the returning veteran.
However, in order to receive this benefit, the veteran must complete a service credit purchase form for CalPERS, and this requirement has resulted in several problems. First, some veterans do not realize that they are entitled to the benefit, or they think the benefit is automatic. If the employer or another individual does not inform the returning veteran of the benefit and how to receive it, he or she may not be aware that an action is required on the veteran’s part to receive the benefit.
Second, the form CalPERS uses for this benefit is confusing. It is currently combined with another option to allow public employees to purchase military service credit for military service preformed prior to being a public employee. This type of service credit is costly and some veterans become confused and forgo applying for the service credit they are entitled to at no charge because they mistakenly believe it to be too expensive. Some veterans go years without applying for this no-cost benefit, or may never apply.
Without an application, CalPERS cannot credit service and does not have a record of the applicable military service. Veterans and their survivors, in some cases, may be losing valuable benefits.
Related/Prior Legislation
SB 221 (Jackson, Chapter 794, Statutes of 2015) allows a state employee who is a disabled military veteran, in his or her first year of employment, to receive up to 96 hours of additional sick leave for the purpose of undergoing medical treatment for his or her military service-connected disability.
AB 372 (Eggman, Chapter 75, Statutes of 2013) requires that whenever any veteran, widow or widower of a veteran, or spouse of a 100% disabled veteran achieves a passing score on an entrance examination for state employment, he or she will be placed in the top rank of the resulting hiring eligibility list.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
CAL FIRE, Local 2881 (co-source)
California Association of Highway Patrolmen (co-source)
Peace Officers Research Association of California (co-source)
California Correctional Peace Officers Association
California Professional Firefighters
Organization of SMUD Employees
San Diego County Court Employees Association
San Luis Obispo County Employees Association
OPPOSITION: (Verified 1/19/16)
None received
ARGUMENTS IN SUPPORT:
As stated by sponsors:
Current law allows for public employees who have taken a leave of absence for active military duty to return to their previous jobs and receive any salary increases and /or promotions they would have received while on duty. In addition, they are also entitled to fully employer–paid contributions to CalPERS for applicable service credit. In order to receive this benefit, proper paperwork must be filed with CalPERS. Unfortunately, most public employees are ill-informed or misinformed on their rights and do not apply for the benefit.
According to the California Professional Firefighters:
Firefighters in California proudly serve their communities every day. Many serve their country as reservists or, prior to becoming a firefighter, were enlisted as active duty members in various branches of the military. SB 294 helps to ensure that veterans who return to their public service jobs after taking leave to perform active military service can in fact receive the service credit that they are entitled to in the Public Employees’ Retirement System (CalPERS). Further, this bill requires the state and school employers that hire veterans to inform them of their rights to purchase service credit in CalPERS for their period of military service prior to employment.
1/20/16 15:40:00
**** END ****
Discussed in Hearing
2MIN
Senate Floor
2MIN
Senate Standing Committee on Public Employment and Retirement
Bill Co-Author(s):