AB 1309: Employment without reinstatement: failure to enroll or report: fee.

The Public Employees Retirement Law (PERL) creates the Public Employees Retirement System, which provides defined benefits to its members based on age at retirement, service credit, and final compensation. Existing law permits a retired person to serve without reinstatement from retirement or loss or interruption of benefits provided by the system if certain conditions are met. If a retired person is employed without reinstatement without meeting those conditions, PERL requires the retired person to reimburse the system for any retirement allowance received and requires both the retired person and the employer to make contributions due and, to the extent each is determined to be at fault, contribute toward reimbursement of the system for administrative expenses incurred. Existing law requires fees and other amounts received by the Board of Administration of the Public Employees Retirement System pursuant to PERL to be credited to the Public Employees Retirement Fund, a continuously appropriated fund.

This bill would authorize the board to assess an employer that fails to enroll, solely for the administrative recordkeeping purposes of the system, a retired member employed without reinstatement within 30 days after the effective date of hire, or that fails to report the pay rate and number of hours worked by the retired member within 30 days of the last day of the pay period in which the retired member worked, a $200 fee per month, as specified. The bill would prohibit an employer from passing those fees on to an employee. By authorizing increased deposits into a continuously appropriated fund, the bill would make an appropriation.