State Codes and Statutes

Statutes > California > Gov > 31511-31511.11

GOVERNMENT CODE
SECTION 31511-31511.11



31511.  (a) The retirement plan created by this article shall be
known as Retirement Plan 3.
   (b) This article shall be applicable in the retirement system of
any county of the 13th class as described by Sections 28020 and
28034, if the board of supervisors executes a memorandum of
understanding agreement with employee representatives and adopts, by
majority vote, a resolution providing that the article shall be
applicable.
   (c) The purpose of this article is to provide a noncontributory
retirement plan for general members as an alternative to the
provisions and benefits otherwise contained in this chapter.
   (d) The retirement benefits of (1) all general members employed
after the date this article is made operative and (2) existing
general members who transfer to the plan herein created, shall be
governed by this article.
   (e) In the event of a conflict, this article shall supersede and
prevail over other provisions or application of provisions otherwise
contained in this chapter.
   (f) Except as otherwise provided below, the provisions contained
in this chapter shall apply:
   (1) Article 10 (commencing with Section 31720) shall not apply.
   (2) Article 16.5 (commencing with Section 31870) shall not apply.
   (g) Article 15 (commencing with Section 31830) shall only be
applicable for service retirement. Those provisions of Article 15
(commencing with Section 31830) dealing with disability retirement
and the requirement relating to the deposit of accumulated member
contributions shall not apply.
   (h) Except as otherwise provided, any member who upon retirement
receives a retirement pension calculated in accordance with sections
or provisions added to this article subsequent to the effective date
of this article shall have his or her pension calculated under each
such section or provision only for the period of time that those
sections or provisions were in effect, unless otherwise mutually
agreed between the employer and its employee representatives.
   (i) Unless specifically otherwise provided therein, no amendment
to this article enacted subsequent to the effective date of this
article shall apply to any county or to the employees of any county
unless and until mutually agreed to by the employer and employee
representatives and adopted by majority resolution of the board of
supervisors.



31511.1.  Unless the context otherwise requires, the definitions
contained in this section govern the construction of this article.
   (a) "Board" means the board of retirement.
   (b) "Employer" means the county or district or agency whose
employees are members of the retirement system of the county.
   (c) "Federal system" means the Old Age and Survivors Insurance
provisions of the Social Security Act.
   (d) "Member" or "general member" means an employee hired on a
permanent basis, as defined by the employer, except an employee
eligible for safety membership.
   (e) "Primary insurance amount" means the monthly retirement
benefit payable under the federal system at the normal retirement
age.
   (f) "Service" means the period of employment of a member and the
time in which a member or former member (1) is totally disabled, and
(2) is receiving disability benefits or is eligible to receive
disability benefits either during or after any elimination or
qualifying period, under a long-term disability plan provided by the
employer.
   Except as otherwise herein provided, a member shall not be
credited with service for any period of time in which the member is
absent from work without pay.
   Unless otherwise provided, service shall not include military
service or public service other than service with the employer.
   (g) "Final compensation" means the average annual compensation
earnable by a member during any three years elected by a member at or
before the time he or she files an application for retirement, or,
if he or she fails to elect, during the three years immediately
preceding his or her retirement. If a member has less than three
years of service, his or her final compensation shall be determined
by dividing his or her total compensation by the number of months of
service credited to him or her and multiplying by 12.
   The board of supervisors of any county subject to this article
shall establish a defined contribution retirement plan authorized by
Section 401 of the United States Code or a similar plan authorized by
the United States Code.



31511.2.  (a) There shall be no general members' contributions under
the plan created by this article.
   (b) No refund shall be made to any member who elects to transfer
to the retirement plan created by this article of the member's
accumulated contributions. A member who elects to transfer to the
retirement plan established pursuant to this article shall receive:
service credit toward vesting under the other retirement plan; a
pension from the other retirement plan based upon his or her credited
service on the day prior to the operative date of the transfer to
the retirement plan established pursuant to this article; and a
pension from the retirement plan established pursuant to this article
based upon service credited on and after the operative date of the
transfer to the retirement plan established pursuant to this article.



31511.3.  (a) Absence from work or termination of employment while
an eligible employee or disability beneficiary, as defined by the
long-term disability plan provided by the employer, shall not be
considered as breaking the continuity of service.
   (b) For the purposes of subdivision (b) of Section 31511.4, an
unpaid leave of absence which has been approved by the employer,
shall not be considered an interruption of service. However, the
period of time of unpaid leave shall not be considered as service in
calculating the retirement benefits otherwise provided under this
article.



31511.4.  (a) Retirement of a member who has met the requirements
for age and service shall be made by the board, at which time the
member becomes a retired member.
   (b) Any member who has completed 10 years of service shall be
vested under the retirement plan created by this article.
   (c) Any vested member who has attained normal retirement age may
be retired upon filing with the board a written application on a form
provided by the board for normal retirement setting forth the
desired effective retirement date. For purposes of this article,
normal retirement date means the first day of the month coincident
with or next following the member's normal retirement age. For
purposes of this article, normal retirement age means:

  For Persons Born         Normal Retirement Age
  1937 or before           65
  1938                     65 and 2 months
  1939                     65 and 4 months
  1940                     65 and 6 months
  1941                     65 and 8 months
  1942                     65 and 10 months
  1943-1954                66
  1955                     66 and 2 months
  1956                     66 and 4 months
  1957                     66 and 6 months
  1958                     66 and 8 months
  1959                     66 and 10 months
  1960 and later           67.

   (d) Any vested member who has attained the age of 55 years may be
retired upon filing with the board a written application on a form
provided by the board for early retirement setting forth the desired
effective retirement date.
   (e) The normal retirement pension for a member who has attained
normal retirement age shall consist of an annual allowance payable in
monthly installments for the life of the retired member equal to:
2.333 percent of his or her final compensation multiplied by the
number of years of service to the preceding completed month to which
the member is entitled to be credited at retirement, but not to
exceed 30 years; reduced by 2.166 percent of the estimated primary
insurance amount, if any, multiplied by the number of years of
service to the preceding completed month to which the member is
entitled to be credited at retirement, but not to exceed 30 years,
multiplied by a fraction, the numerator of which is the number of
years of service with the employer subject to coverage under the
federal system, but not to exceed 30 years, and the denominator of
which is 30.
   (f) The early retirement pension shall consist of an annual
allowance payable in monthly installments for the life of the retired
member in an amount which is the actuarial equivalent of the normal
retirement pension to which the retired member would be entitled if
otherwise eligible for normal retirement, which shall be computed by
multiplying the normal retirement pension by the early retirement
adjustment factor set forth, based on the number of years and months
by which the member's early retirement date precedes the member's
normal retirement date, in the following tables:

               Early Retirement Adjustment Factors
          --------------------------------------------
                             Months
   Years      0        1        2        3        4
     0     1.0000   0.9944   0.9889   0.9833   0.9778
     1     0.9333   0.9278   0.9222   0.9167   0.9111
     2     0.8667   0.8611   0.8556   0.8500   0.8444
     3     0.8000   0.7944   0.7889   0.7833   0.7778
     4     0.7333   0.7278   0.7222   0.7167   0.7111
     5     0.6667   0.6639   0.6611   0.6583   0.6556
     6     0.6333   0.6306   0.6278   0.6250   0.6222
     7     0.6000   0.5972   0.5944   0.5917   0.5889
     8     0.5667   0.5639   0.5611   0.5583   0.5556
     9     0.5333   0.5306   0.5278   0.5250   0.5222
     10    0.5000   0.4972   0.4944   0.4917   0.4889
     11    0.4667   0.4639   0.4611   0.4583   0.4556
     12    0.4333   0.4306   0.4278   0.4250   0.4222


              Early Retirement Adjustment Factors
          -------------------------------------------
                             Months
   Years       5          6          7          8
     0      0.9722     0.9667     0.9611     0.9556
     1      0.9056     0.9000     0.8944     0.8889
     2      0.8389     0.8333     0.8278     0.8222
     3      0.7722     0.7667     0.7611     0.7556
     4      0.7056     0.7000     0.6944     0.6889
     5      0.6528     0.6500     0.6472     0.6444
     6      0.6194     0.6167     0.6139     0.6111
     7      0.5861     0.5833     0.5806     0.5778
     8      0.5528     0.5500     0.5472     0.5444
     9      0.5194     0.5167     0.5139     0.5111
     10     0.4861     0.4833     0.4806     0.4778
     11     0.4528     0.4500     0.4472     0.4444
     12     0.4194     0.4167     0.4139     0.4111


              Early Retirement Adjustment Factors
          -------------------------------------------
                             Months
   Years       9         10         11         12
     0      0.9500     0.9444     0.9389     0.9333
     1      0.8833     0.8778     0.8722     0.8667
     2      0.8167     0.8111     0.8056     0.8000
     3      0.7500     0.7444     0.7389     0.7333
     4      0.6833     0.6778     0.6722     0.6667
     5      0.6417     0.6389     0.6361     0.6333
     6      0.6083     0.6056     0.6028     0.6000
     7      0.5750     0.5722     0.5694     0.5667
     8      0.5417     0.5389     0.5361     0.5333
     9      0.5083     0.5056     0.5028     0.5000
     10     0.4750     0.4722     0.4694     0.4667
     11     0.4417     0.4389     0.4361     0.4333
     12     0.4083     0.4056     0.4028     0.4000

   (g) The board, upon the advice of the actuary, shall establish and
adjust, as required, the table of estimated primary insurance
amounts, which shall be utilized in computing the retirement benefit.
For purposes of this article, the primary insurance amount shall be
estimated based on the employee's age as of the date of retirement or
the date of termination of a vested member, whichever is applicable,
and the employee's earnings, provided that:
   (1) An employee's earnings prior to the first day of service with
the employer shall be assumed to have been zero, and
   (2) An employee's earnings during the period of service shall
include only those earnings paid by the employer, and
   (3) For those members who have not attained the normal retirement
age under the federal system as of the date of retirement (i) future
earnings in employment covered by the federal system shall be assumed
to continue at the rate of pay received by the employee from the
employer as of the date of retirement or the date of termination of a
vested member, whichever is applicable, and (ii) future wage bases,
as defined by the federal system, shall be assumed to continue at the
wage base in effect in the year of retirement or the year of
termination of a vested member, whichever is applicable, and (iii)
cost-of-living increases in the year of retirement and delayed
retirement credit provided under the federal system shall not be
included in the calculation of the estimated primary insurance
amount.
   (h) The employer shall certify the years of service to be credited
at retirement and the final compensation to be utilized in computing
the normal and early retirement pension.
   (i) Notwithstanding subdivision (e), any retired member receiving
a normal retirement pension may present evidence required by the
board of the retired member's actual primary insurance amount. For
purposes of this subdivision, the actual primary insurance amount
shall be the amount payable under the federal system on the retired
member's date of retirement without regard to delayed retirement
credit or any deductions on account of work or any reductions on
account of early retirement. Following receipt of that evidence, the
board shall adjust the retired member's pension from the date of
retirement to equal the amount of the pension to which he or she
would have been entitled on that date had the estimated primary
insurance amount equaled the actual primary insurance amount.
   (j) All part-time and intermittent employees of a county which
elects to be subject to this article shall not be eligible to
participate in the retirement plans provided by this article.



31511.5.  Notwithstanding any other provision of this chapter to the
contrary, no surviving spouse benefit shall be paid to a surviving
spouse of a member who at the time of death had not met the minimum
age and service credit requirements for service retirement.



31511.6.  General members may, within 180 days of the operative date
of this article, elect to transfer to the retirement plan created by
this article upon proper application executed by the member and
filed with the board. Furthermore, any general member who does not
elect to transfer during this 180-day period, may elect to transfer
within the 30 days prior to any annual anniversary of the operative
date of this article. Such a transfer is voluntary and shall be
irrevocable.



31511.7.  Until the completion of the next regularly scheduled
actuarial survey of the retirement system, the employer contribution
rate required to finance the plan created by this article shall be
established by the board, upon the recommendation of the actuary.




31511.8.  The board shall before April 1 of each year determine
whether there has been an increase or decrease in the cost of living
as provided in this section. Notwithstanding Section 31481 or any
other provision of this chapter (commencing with Section 31450),
every retirement allowance, optional death allowance, or annual death
allowance payable to or on account of any member of the plan created
by this article who retires at or beyond normal retirement age or
dies shall, as of April 1st of each year, be increased or decreased
by a percentage of the total allowance then being received found by
the board to approximate to the nearest one-half of 1 percent the
percentage of annual increase or decrease in the cost of living as of
January 1st of each year as shown by the then current Bureau of
Labor Statistics Consumer Price Index for All Urban Consumers for the
Los Angeles-Anaheim-Long Beach area, but such change shall not
exceed 5 percent per year; however, the amount of any cost-of-living
increase or decrease in any year which is not met by the maximum
annual change of 5 percent in allowances shall be accumulated to be
met by increases or decreases in allowances in future years; except
that no decrease shall reduce the allowance below the amount being
received by the member or his or her beneficiary on the effective
date of the allowance. No adjustment shall be made in the retirement
allowance of a member who retires prior to attaining normal
retirement age until the member attains normal retirement age.




31511.9.  (a) An employer which is subject to this article shall
provide disability benefits for its employees through a long-term
disability plan which shall be separate from and administered
separately from the retirement plans authorized by this article and
all other retirement plans.
   (b) The long-term disability plan shall consist of a separate
trust which shall be funded utilizing a level cost method and
employer contributions. No employee shall be required to make any
employee contribution to the long-term disability plan.
   (c) The board of supervisors shall contract for the resolution of
the issue of disability. The board of supervisors shall establish an
appeals board to which a member who is aggrieved by a decision of the
administrator may appeal.
   (d) Any member permanently incapacitated for the performance of
duty, regardless of age or years of service, shall receive disability
benefits as follows: (1) for not to exceed two years; (2) for any
time after the expiration of the two-year period specified in
subdivision (a) if, and only if the member is unable to perform the
duties of any occupation for which the member is qualified by reason
of training or experience.
   (e) The disability benefit shall be 50 percent of the final
compensation of the member reduced by any Social Security benefits,
workers' compensation benefits, and earnings from any employment
other than employment which is part of a rehabilitation program.




31511.10.  (a) The board of retirement shall establish a position
whose qualifications shall include experience in administration and
communication of defined benefit plans and defined contribution plans
and whose duties shall include management of the plan or plans
adopted pursuant to this article and reporting to the county
treasurer and the director of personnel.
   (b) The board of retirement shall establish and implement a
comprehensive communication program to educate employees regarding
the benefits available under this article and Social Security.




31511.11.  (a) The board of supervisors of any county subject to
this article shall establish a defined contribution retirement plan
authorized by Section 401 of the Internal Revenue Code of 1954 or a
similar plan authorized by the Internal Revenue Code of 1954.
   (b) Any full-time employee of the county who is hired by the
county on or after the operative date of this article in that county
and has completed 6 months of credited full-time service with the
county or any member who elects to transfer to the retirement plan
created by this article shall participate in the plan.
   (c) The county shall partially or fully match the contributions of
the employee on the basis mutually agreed to by the board of
supervisors and the employee representatives.
   (d) The right of the employee to benefits derived from employee
contributions vests upon the commencement of the participation by the
employee in the plan.
   (e) The right of the employee to benefits derived from matching
employer contributions vests 100 percent after five years of
full-time service with the county.
   (f) Upon termination of the employment of an employee whose
benefits derived from employer contributions are not vested, benefits
derived from the contributions of the employee shall be refunded to
the employee and the matching contributions of the employer shall be
credited to reduce future employer contributions or to pay expenses
of the plan.
   (g) The defined contribution plan shall accept rollover
contributions from other plans to the extent authorized by federal
law.
   (h) The plan shall be administered in accordance with subdivision
(k) of Section 401 of the United States Code.


State Codes and Statutes

Statutes > California > Gov > 31511-31511.11

GOVERNMENT CODE
SECTION 31511-31511.11



31511.  (a) The retirement plan created by this article shall be
known as Retirement Plan 3.
   (b) This article shall be applicable in the retirement system of
any county of the 13th class as described by Sections 28020 and
28034, if the board of supervisors executes a memorandum of
understanding agreement with employee representatives and adopts, by
majority vote, a resolution providing that the article shall be
applicable.
   (c) The purpose of this article is to provide a noncontributory
retirement plan for general members as an alternative to the
provisions and benefits otherwise contained in this chapter.
   (d) The retirement benefits of (1) all general members employed
after the date this article is made operative and (2) existing
general members who transfer to the plan herein created, shall be
governed by this article.
   (e) In the event of a conflict, this article shall supersede and
prevail over other provisions or application of provisions otherwise
contained in this chapter.
   (f) Except as otherwise provided below, the provisions contained
in this chapter shall apply:
   (1) Article 10 (commencing with Section 31720) shall not apply.
   (2) Article 16.5 (commencing with Section 31870) shall not apply.
   (g) Article 15 (commencing with Section 31830) shall only be
applicable for service retirement. Those provisions of Article 15
(commencing with Section 31830) dealing with disability retirement
and the requirement relating to the deposit of accumulated member
contributions shall not apply.
   (h) Except as otherwise provided, any member who upon retirement
receives a retirement pension calculated in accordance with sections
or provisions added to this article subsequent to the effective date
of this article shall have his or her pension calculated under each
such section or provision only for the period of time that those
sections or provisions were in effect, unless otherwise mutually
agreed between the employer and its employee representatives.
   (i) Unless specifically otherwise provided therein, no amendment
to this article enacted subsequent to the effective date of this
article shall apply to any county or to the employees of any county
unless and until mutually agreed to by the employer and employee
representatives and adopted by majority resolution of the board of
supervisors.



31511.1.  Unless the context otherwise requires, the definitions
contained in this section govern the construction of this article.
   (a) "Board" means the board of retirement.
   (b) "Employer" means the county or district or agency whose
employees are members of the retirement system of the county.
   (c) "Federal system" means the Old Age and Survivors Insurance
provisions of the Social Security Act.
   (d) "Member" or "general member" means an employee hired on a
permanent basis, as defined by the employer, except an employee
eligible for safety membership.
   (e) "Primary insurance amount" means the monthly retirement
benefit payable under the federal system at the normal retirement
age.
   (f) "Service" means the period of employment of a member and the
time in which a member or former member (1) is totally disabled, and
(2) is receiving disability benefits or is eligible to receive
disability benefits either during or after any elimination or
qualifying period, under a long-term disability plan provided by the
employer.
   Except as otherwise herein provided, a member shall not be
credited with service for any period of time in which the member is
absent from work without pay.
   Unless otherwise provided, service shall not include military
service or public service other than service with the employer.
   (g) "Final compensation" means the average annual compensation
earnable by a member during any three years elected by a member at or
before the time he or she files an application for retirement, or,
if he or she fails to elect, during the three years immediately
preceding his or her retirement. If a member has less than three
years of service, his or her final compensation shall be determined
by dividing his or her total compensation by the number of months of
service credited to him or her and multiplying by 12.
   The board of supervisors of any county subject to this article
shall establish a defined contribution retirement plan authorized by
Section 401 of the United States Code or a similar plan authorized by
the United States Code.



31511.2.  (a) There shall be no general members' contributions under
the plan created by this article.
   (b) No refund shall be made to any member who elects to transfer
to the retirement plan created by this article of the member's
accumulated contributions. A member who elects to transfer to the
retirement plan established pursuant to this article shall receive:
service credit toward vesting under the other retirement plan; a
pension from the other retirement plan based upon his or her credited
service on the day prior to the operative date of the transfer to
the retirement plan established pursuant to this article; and a
pension from the retirement plan established pursuant to this article
based upon service credited on and after the operative date of the
transfer to the retirement plan established pursuant to this article.



31511.3.  (a) Absence from work or termination of employment while
an eligible employee or disability beneficiary, as defined by the
long-term disability plan provided by the employer, shall not be
considered as breaking the continuity of service.
   (b) For the purposes of subdivision (b) of Section 31511.4, an
unpaid leave of absence which has been approved by the employer,
shall not be considered an interruption of service. However, the
period of time of unpaid leave shall not be considered as service in
calculating the retirement benefits otherwise provided under this
article.



31511.4.  (a) Retirement of a member who has met the requirements
for age and service shall be made by the board, at which time the
member becomes a retired member.
   (b) Any member who has completed 10 years of service shall be
vested under the retirement plan created by this article.
   (c) Any vested member who has attained normal retirement age may
be retired upon filing with the board a written application on a form
provided by the board for normal retirement setting forth the
desired effective retirement date. For purposes of this article,
normal retirement date means the first day of the month coincident
with or next following the member's normal retirement age. For
purposes of this article, normal retirement age means:

  For Persons Born         Normal Retirement Age
  1937 or before           65
  1938                     65 and 2 months
  1939                     65 and 4 months
  1940                     65 and 6 months
  1941                     65 and 8 months
  1942                     65 and 10 months
  1943-1954                66
  1955                     66 and 2 months
  1956                     66 and 4 months
  1957                     66 and 6 months
  1958                     66 and 8 months
  1959                     66 and 10 months
  1960 and later           67.

   (d) Any vested member who has attained the age of 55 years may be
retired upon filing with the board a written application on a form
provided by the board for early retirement setting forth the desired
effective retirement date.
   (e) The normal retirement pension for a member who has attained
normal retirement age shall consist of an annual allowance payable in
monthly installments for the life of the retired member equal to:
2.333 percent of his or her final compensation multiplied by the
number of years of service to the preceding completed month to which
the member is entitled to be credited at retirement, but not to
exceed 30 years; reduced by 2.166 percent of the estimated primary
insurance amount, if any, multiplied by the number of years of
service to the preceding completed month to which the member is
entitled to be credited at retirement, but not to exceed 30 years,
multiplied by a fraction, the numerator of which is the number of
years of service with the employer subject to coverage under the
federal system, but not to exceed 30 years, and the denominator of
which is 30.
   (f) The early retirement pension shall consist of an annual
allowance payable in monthly installments for the life of the retired
member in an amount which is the actuarial equivalent of the normal
retirement pension to which the retired member would be entitled if
otherwise eligible for normal retirement, which shall be computed by
multiplying the normal retirement pension by the early retirement
adjustment factor set forth, based on the number of years and months
by which the member's early retirement date precedes the member's
normal retirement date, in the following tables:

               Early Retirement Adjustment Factors
          --------------------------------------------
                             Months
   Years      0        1        2        3        4
     0     1.0000   0.9944   0.9889   0.9833   0.9778
     1     0.9333   0.9278   0.9222   0.9167   0.9111
     2     0.8667   0.8611   0.8556   0.8500   0.8444
     3     0.8000   0.7944   0.7889   0.7833   0.7778
     4     0.7333   0.7278   0.7222   0.7167   0.7111
     5     0.6667   0.6639   0.6611   0.6583   0.6556
     6     0.6333   0.6306   0.6278   0.6250   0.6222
     7     0.6000   0.5972   0.5944   0.5917   0.5889
     8     0.5667   0.5639   0.5611   0.5583   0.5556
     9     0.5333   0.5306   0.5278   0.5250   0.5222
     10    0.5000   0.4972   0.4944   0.4917   0.4889
     11    0.4667   0.4639   0.4611   0.4583   0.4556
     12    0.4333   0.4306   0.4278   0.4250   0.4222


              Early Retirement Adjustment Factors
          -------------------------------------------
                             Months
   Years       5          6          7          8
     0      0.9722     0.9667     0.9611     0.9556
     1      0.9056     0.9000     0.8944     0.8889
     2      0.8389     0.8333     0.8278     0.8222
     3      0.7722     0.7667     0.7611     0.7556
     4      0.7056     0.7000     0.6944     0.6889
     5      0.6528     0.6500     0.6472     0.6444
     6      0.6194     0.6167     0.6139     0.6111
     7      0.5861     0.5833     0.5806     0.5778
     8      0.5528     0.5500     0.5472     0.5444
     9      0.5194     0.5167     0.5139     0.5111
     10     0.4861     0.4833     0.4806     0.4778
     11     0.4528     0.4500     0.4472     0.4444
     12     0.4194     0.4167     0.4139     0.4111


              Early Retirement Adjustment Factors
          -------------------------------------------
                             Months
   Years       9         10         11         12
     0      0.9500     0.9444     0.9389     0.9333
     1      0.8833     0.8778     0.8722     0.8667
     2      0.8167     0.8111     0.8056     0.8000
     3      0.7500     0.7444     0.7389     0.7333
     4      0.6833     0.6778     0.6722     0.6667
     5      0.6417     0.6389     0.6361     0.6333
     6      0.6083     0.6056     0.6028     0.6000
     7      0.5750     0.5722     0.5694     0.5667
     8      0.5417     0.5389     0.5361     0.5333
     9      0.5083     0.5056     0.5028     0.5000
     10     0.4750     0.4722     0.4694     0.4667
     11     0.4417     0.4389     0.4361     0.4333
     12     0.4083     0.4056     0.4028     0.4000

   (g) The board, upon the advice of the actuary, shall establish and
adjust, as required, the table of estimated primary insurance
amounts, which shall be utilized in computing the retirement benefit.
For purposes of this article, the primary insurance amount shall be
estimated based on the employee's age as of the date of retirement or
the date of termination of a vested member, whichever is applicable,
and the employee's earnings, provided that:
   (1) An employee's earnings prior to the first day of service with
the employer shall be assumed to have been zero, and
   (2) An employee's earnings during the period of service shall
include only those earnings paid by the employer, and
   (3) For those members who have not attained the normal retirement
age under the federal system as of the date of retirement (i) future
earnings in employment covered by the federal system shall be assumed
to continue at the rate of pay received by the employee from the
employer as of the date of retirement or the date of termination of a
vested member, whichever is applicable, and (ii) future wage bases,
as defined by the federal system, shall be assumed to continue at the
wage base in effect in the year of retirement or the year of
termination of a vested member, whichever is applicable, and (iii)
cost-of-living increases in the year of retirement and delayed
retirement credit provided under the federal system shall not be
included in the calculation of the estimated primary insurance
amount.
   (h) The employer shall certify the years of service to be credited
at retirement and the final compensation to be utilized in computing
the normal and early retirement pension.
   (i) Notwithstanding subdivision (e), any retired member receiving
a normal retirement pension may present evidence required by the
board of the retired member's actual primary insurance amount. For
purposes of this subdivision, the actual primary insurance amount
shall be the amount payable under the federal system on the retired
member's date of retirement without regard to delayed retirement
credit or any deductions on account of work or any reductions on
account of early retirement. Following receipt of that evidence, the
board shall adjust the retired member's pension from the date of
retirement to equal the amount of the pension to which he or she
would have been entitled on that date had the estimated primary
insurance amount equaled the actual primary insurance amount.
   (j) All part-time and intermittent employees of a county which
elects to be subject to this article shall not be eligible to
participate in the retirement plans provided by this article.



31511.5.  Notwithstanding any other provision of this chapter to the
contrary, no surviving spouse benefit shall be paid to a surviving
spouse of a member who at the time of death had not met the minimum
age and service credit requirements for service retirement.



31511.6.  General members may, within 180 days of the operative date
of this article, elect to transfer to the retirement plan created by
this article upon proper application executed by the member and
filed with the board. Furthermore, any general member who does not
elect to transfer during this 180-day period, may elect to transfer
within the 30 days prior to any annual anniversary of the operative
date of this article. Such a transfer is voluntary and shall be
irrevocable.



31511.7.  Until the completion of the next regularly scheduled
actuarial survey of the retirement system, the employer contribution
rate required to finance the plan created by this article shall be
established by the board, upon the recommendation of the actuary.




31511.8.  The board shall before April 1 of each year determine
whether there has been an increase or decrease in the cost of living
as provided in this section. Notwithstanding Section 31481 or any
other provision of this chapter (commencing with Section 31450),
every retirement allowance, optional death allowance, or annual death
allowance payable to or on account of any member of the plan created
by this article who retires at or beyond normal retirement age or
dies shall, as of April 1st of each year, be increased or decreased
by a percentage of the total allowance then being received found by
the board to approximate to the nearest one-half of 1 percent the
percentage of annual increase or decrease in the cost of living as of
January 1st of each year as shown by the then current Bureau of
Labor Statistics Consumer Price Index for All Urban Consumers for the
Los Angeles-Anaheim-Long Beach area, but such change shall not
exceed 5 percent per year; however, the amount of any cost-of-living
increase or decrease in any year which is not met by the maximum
annual change of 5 percent in allowances shall be accumulated to be
met by increases or decreases in allowances in future years; except
that no decrease shall reduce the allowance below the amount being
received by the member or his or her beneficiary on the effective
date of the allowance. No adjustment shall be made in the retirement
allowance of a member who retires prior to attaining normal
retirement age until the member attains normal retirement age.




31511.9.  (a) An employer which is subject to this article shall
provide disability benefits for its employees through a long-term
disability plan which shall be separate from and administered
separately from the retirement plans authorized by this article and
all other retirement plans.
   (b) The long-term disability plan shall consist of a separate
trust which shall be funded utilizing a level cost method and
employer contributions. No employee shall be required to make any
employee contribution to the long-term disability plan.
   (c) The board of supervisors shall contract for the resolution of
the issue of disability. The board of supervisors shall establish an
appeals board to which a member who is aggrieved by a decision of the
administrator may appeal.
   (d) Any member permanently incapacitated for the performance of
duty, regardless of age or years of service, shall receive disability
benefits as follows: (1) for not to exceed two years; (2) for any
time after the expiration of the two-year period specified in
subdivision (a) if, and only if the member is unable to perform the
duties of any occupation for which the member is qualified by reason
of training or experience.
   (e) The disability benefit shall be 50 percent of the final
compensation of the member reduced by any Social Security benefits,
workers' compensation benefits, and earnings from any employment
other than employment which is part of a rehabilitation program.




31511.10.  (a) The board of retirement shall establish a position
whose qualifications shall include experience in administration and
communication of defined benefit plans and defined contribution plans
and whose duties shall include management of the plan or plans
adopted pursuant to this article and reporting to the county
treasurer and the director of personnel.
   (b) The board of retirement shall establish and implement a
comprehensive communication program to educate employees regarding
the benefits available under this article and Social Security.




31511.11.  (a) The board of supervisors of any county subject to
this article shall establish a defined contribution retirement plan
authorized by Section 401 of the Internal Revenue Code of 1954 or a
similar plan authorized by the Internal Revenue Code of 1954.
   (b) Any full-time employee of the county who is hired by the
county on or after the operative date of this article in that county
and has completed 6 months of credited full-time service with the
county or any member who elects to transfer to the retirement plan
created by this article shall participate in the plan.
   (c) The county shall partially or fully match the contributions of
the employee on the basis mutually agreed to by the board of
supervisors and the employee representatives.
   (d) The right of the employee to benefits derived from employee
contributions vests upon the commencement of the participation by the
employee in the plan.
   (e) The right of the employee to benefits derived from matching
employer contributions vests 100 percent after five years of
full-time service with the county.
   (f) Upon termination of the employment of an employee whose
benefits derived from employer contributions are not vested, benefits
derived from the contributions of the employee shall be refunded to
the employee and the matching contributions of the employer shall be
credited to reduce future employer contributions or to pay expenses
of the plan.
   (g) The defined contribution plan shall accept rollover
contributions from other plans to the extent authorized by federal
law.
   (h) The plan shall be administered in accordance with subdivision
(k) of Section 401 of the United States Code.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Gov > 31511-31511.11

GOVERNMENT CODE
SECTION 31511-31511.11



31511.  (a) The retirement plan created by this article shall be
known as Retirement Plan 3.
   (b) This article shall be applicable in the retirement system of
any county of the 13th class as described by Sections 28020 and
28034, if the board of supervisors executes a memorandum of
understanding agreement with employee representatives and adopts, by
majority vote, a resolution providing that the article shall be
applicable.
   (c) The purpose of this article is to provide a noncontributory
retirement plan for general members as an alternative to the
provisions and benefits otherwise contained in this chapter.
   (d) The retirement benefits of (1) all general members employed
after the date this article is made operative and (2) existing
general members who transfer to the plan herein created, shall be
governed by this article.
   (e) In the event of a conflict, this article shall supersede and
prevail over other provisions or application of provisions otherwise
contained in this chapter.
   (f) Except as otherwise provided below, the provisions contained
in this chapter shall apply:
   (1) Article 10 (commencing with Section 31720) shall not apply.
   (2) Article 16.5 (commencing with Section 31870) shall not apply.
   (g) Article 15 (commencing with Section 31830) shall only be
applicable for service retirement. Those provisions of Article 15
(commencing with Section 31830) dealing with disability retirement
and the requirement relating to the deposit of accumulated member
contributions shall not apply.
   (h) Except as otherwise provided, any member who upon retirement
receives a retirement pension calculated in accordance with sections
or provisions added to this article subsequent to the effective date
of this article shall have his or her pension calculated under each
such section or provision only for the period of time that those
sections or provisions were in effect, unless otherwise mutually
agreed between the employer and its employee representatives.
   (i) Unless specifically otherwise provided therein, no amendment
to this article enacted subsequent to the effective date of this
article shall apply to any county or to the employees of any county
unless and until mutually agreed to by the employer and employee
representatives and adopted by majority resolution of the board of
supervisors.



31511.1.  Unless the context otherwise requires, the definitions
contained in this section govern the construction of this article.
   (a) "Board" means the board of retirement.
   (b) "Employer" means the county or district or agency whose
employees are members of the retirement system of the county.
   (c) "Federal system" means the Old Age and Survivors Insurance
provisions of the Social Security Act.
   (d) "Member" or "general member" means an employee hired on a
permanent basis, as defined by the employer, except an employee
eligible for safety membership.
   (e) "Primary insurance amount" means the monthly retirement
benefit payable under the federal system at the normal retirement
age.
   (f) "Service" means the period of employment of a member and the
time in which a member or former member (1) is totally disabled, and
(2) is receiving disability benefits or is eligible to receive
disability benefits either during or after any elimination or
qualifying period, under a long-term disability plan provided by the
employer.
   Except as otherwise herein provided, a member shall not be
credited with service for any period of time in which the member is
absent from work without pay.
   Unless otherwise provided, service shall not include military
service or public service other than service with the employer.
   (g) "Final compensation" means the average annual compensation
earnable by a member during any three years elected by a member at or
before the time he or she files an application for retirement, or,
if he or she fails to elect, during the three years immediately
preceding his or her retirement. If a member has less than three
years of service, his or her final compensation shall be determined
by dividing his or her total compensation by the number of months of
service credited to him or her and multiplying by 12.
   The board of supervisors of any county subject to this article
shall establish a defined contribution retirement plan authorized by
Section 401 of the United States Code or a similar plan authorized by
the United States Code.



31511.2.  (a) There shall be no general members' contributions under
the plan created by this article.
   (b) No refund shall be made to any member who elects to transfer
to the retirement plan created by this article of the member's
accumulated contributions. A member who elects to transfer to the
retirement plan established pursuant to this article shall receive:
service credit toward vesting under the other retirement plan; a
pension from the other retirement plan based upon his or her credited
service on the day prior to the operative date of the transfer to
the retirement plan established pursuant to this article; and a
pension from the retirement plan established pursuant to this article
based upon service credited on and after the operative date of the
transfer to the retirement plan established pursuant to this article.



31511.3.  (a) Absence from work or termination of employment while
an eligible employee or disability beneficiary, as defined by the
long-term disability plan provided by the employer, shall not be
considered as breaking the continuity of service.
   (b) For the purposes of subdivision (b) of Section 31511.4, an
unpaid leave of absence which has been approved by the employer,
shall not be considered an interruption of service. However, the
period of time of unpaid leave shall not be considered as service in
calculating the retirement benefits otherwise provided under this
article.



31511.4.  (a) Retirement of a member who has met the requirements
for age and service shall be made by the board, at which time the
member becomes a retired member.
   (b) Any member who has completed 10 years of service shall be
vested under the retirement plan created by this article.
   (c) Any vested member who has attained normal retirement age may
be retired upon filing with the board a written application on a form
provided by the board for normal retirement setting forth the
desired effective retirement date. For purposes of this article,
normal retirement date means the first day of the month coincident
with or next following the member's normal retirement age. For
purposes of this article, normal retirement age means:

  For Persons Born         Normal Retirement Age
  1937 or before           65
  1938                     65 and 2 months
  1939                     65 and 4 months
  1940                     65 and 6 months
  1941                     65 and 8 months
  1942                     65 and 10 months
  1943-1954                66
  1955                     66 and 2 months
  1956                     66 and 4 months
  1957                     66 and 6 months
  1958                     66 and 8 months
  1959                     66 and 10 months
  1960 and later           67.

   (d) Any vested member who has attained the age of 55 years may be
retired upon filing with the board a written application on a form
provided by the board for early retirement setting forth the desired
effective retirement date.
   (e) The normal retirement pension for a member who has attained
normal retirement age shall consist of an annual allowance payable in
monthly installments for the life of the retired member equal to:
2.333 percent of his or her final compensation multiplied by the
number of years of service to the preceding completed month to which
the member is entitled to be credited at retirement, but not to
exceed 30 years; reduced by 2.166 percent of the estimated primary
insurance amount, if any, multiplied by the number of years of
service to the preceding completed month to which the member is
entitled to be credited at retirement, but not to exceed 30 years,
multiplied by a fraction, the numerator of which is the number of
years of service with the employer subject to coverage under the
federal system, but not to exceed 30 years, and the denominator of
which is 30.
   (f) The early retirement pension shall consist of an annual
allowance payable in monthly installments for the life of the retired
member in an amount which is the actuarial equivalent of the normal
retirement pension to which the retired member would be entitled if
otherwise eligible for normal retirement, which shall be computed by
multiplying the normal retirement pension by the early retirement
adjustment factor set forth, based on the number of years and months
by which the member's early retirement date precedes the member's
normal retirement date, in the following tables:

               Early Retirement Adjustment Factors
          --------------------------------------------
                             Months
   Years      0        1        2        3        4
     0     1.0000   0.9944   0.9889   0.9833   0.9778
     1     0.9333   0.9278   0.9222   0.9167   0.9111
     2     0.8667   0.8611   0.8556   0.8500   0.8444
     3     0.8000   0.7944   0.7889   0.7833   0.7778
     4     0.7333   0.7278   0.7222   0.7167   0.7111
     5     0.6667   0.6639   0.6611   0.6583   0.6556
     6     0.6333   0.6306   0.6278   0.6250   0.6222
     7     0.6000   0.5972   0.5944   0.5917   0.5889
     8     0.5667   0.5639   0.5611   0.5583   0.5556
     9     0.5333   0.5306   0.5278   0.5250   0.5222
     10    0.5000   0.4972   0.4944   0.4917   0.4889
     11    0.4667   0.4639   0.4611   0.4583   0.4556
     12    0.4333   0.4306   0.4278   0.4250   0.4222


              Early Retirement Adjustment Factors
          -------------------------------------------
                             Months
   Years       5          6          7          8
     0      0.9722     0.9667     0.9611     0.9556
     1      0.9056     0.9000     0.8944     0.8889
     2      0.8389     0.8333     0.8278     0.8222
     3      0.7722     0.7667     0.7611     0.7556
     4      0.7056     0.7000     0.6944     0.6889
     5      0.6528     0.6500     0.6472     0.6444
     6      0.6194     0.6167     0.6139     0.6111
     7      0.5861     0.5833     0.5806     0.5778
     8      0.5528     0.5500     0.5472     0.5444
     9      0.5194     0.5167     0.5139     0.5111
     10     0.4861     0.4833     0.4806     0.4778
     11     0.4528     0.4500     0.4472     0.4444
     12     0.4194     0.4167     0.4139     0.4111


              Early Retirement Adjustment Factors
          -------------------------------------------
                             Months
   Years       9         10         11         12
     0      0.9500     0.9444     0.9389     0.9333
     1      0.8833     0.8778     0.8722     0.8667
     2      0.8167     0.8111     0.8056     0.8000
     3      0.7500     0.7444     0.7389     0.7333
     4      0.6833     0.6778     0.6722     0.6667
     5      0.6417     0.6389     0.6361     0.6333
     6      0.6083     0.6056     0.6028     0.6000
     7      0.5750     0.5722     0.5694     0.5667
     8      0.5417     0.5389     0.5361     0.5333
     9      0.5083     0.5056     0.5028     0.5000
     10     0.4750     0.4722     0.4694     0.4667
     11     0.4417     0.4389     0.4361     0.4333
     12     0.4083     0.4056     0.4028     0.4000

   (g) The board, upon the advice of the actuary, shall establish and
adjust, as required, the table of estimated primary insurance
amounts, which shall be utilized in computing the retirement benefit.
For purposes of this article, the primary insurance amount shall be
estimated based on the employee's age as of the date of retirement or
the date of termination of a vested member, whichever is applicable,
and the employee's earnings, provided that:
   (1) An employee's earnings prior to the first day of service with
the employer shall be assumed to have been zero, and
   (2) An employee's earnings during the period of service shall
include only those earnings paid by the employer, and
   (3) For those members who have not attained the normal retirement
age under the federal system as of the date of retirement (i) future
earnings in employment covered by the federal system shall be assumed
to continue at the rate of pay received by the employee from the
employer as of the date of retirement or the date of termination of a
vested member, whichever is applicable, and (ii) future wage bases,
as defined by the federal system, shall be assumed to continue at the
wage base in effect in the year of retirement or the year of
termination of a vested member, whichever is applicable, and (iii)
cost-of-living increases in the year of retirement and delayed
retirement credit provided under the federal system shall not be
included in the calculation of the estimated primary insurance
amount.
   (h) The employer shall certify the years of service to be credited
at retirement and the final compensation to be utilized in computing
the normal and early retirement pension.
   (i) Notwithstanding subdivision (e), any retired member receiving
a normal retirement pension may present evidence required by the
board of the retired member's actual primary insurance amount. For
purposes of this subdivision, the actual primary insurance amount
shall be the amount payable under the federal system on the retired
member's date of retirement without regard to delayed retirement
credit or any deductions on account of work or any reductions on
account of early retirement. Following receipt of that evidence, the
board shall adjust the retired member's pension from the date of
retirement to equal the amount of the pension to which he or she
would have been entitled on that date had the estimated primary
insurance amount equaled the actual primary insurance amount.
   (j) All part-time and intermittent employees of a county which
elects to be subject to this article shall not be eligible to
participate in the retirement plans provided by this article.



31511.5.  Notwithstanding any other provision of this chapter to the
contrary, no surviving spouse benefit shall be paid to a surviving
spouse of a member who at the time of death had not met the minimum
age and service credit requirements for service retirement.



31511.6.  General members may, within 180 days of the operative date
of this article, elect to transfer to the retirement plan created by
this article upon proper application executed by the member and
filed with the board. Furthermore, any general member who does not
elect to transfer during this 180-day period, may elect to transfer
within the 30 days prior to any annual anniversary of the operative
date of this article. Such a transfer is voluntary and shall be
irrevocable.



31511.7.  Until the completion of the next regularly scheduled
actuarial survey of the retirement system, the employer contribution
rate required to finance the plan created by this article shall be
established by the board, upon the recommendation of the actuary.




31511.8.  The board shall before April 1 of each year determine
whether there has been an increase or decrease in the cost of living
as provided in this section. Notwithstanding Section 31481 or any
other provision of this chapter (commencing with Section 31450),
every retirement allowance, optional death allowance, or annual death
allowance payable to or on account of any member of the plan created
by this article who retires at or beyond normal retirement age or
dies shall, as of April 1st of each year, be increased or decreased
by a percentage of the total allowance then being received found by
the board to approximate to the nearest one-half of 1 percent the
percentage of annual increase or decrease in the cost of living as of
January 1st of each year as shown by the then current Bureau of
Labor Statistics Consumer Price Index for All Urban Consumers for the
Los Angeles-Anaheim-Long Beach area, but such change shall not
exceed 5 percent per year; however, the amount of any cost-of-living
increase or decrease in any year which is not met by the maximum
annual change of 5 percent in allowances shall be accumulated to be
met by increases or decreases in allowances in future years; except
that no decrease shall reduce the allowance below the amount being
received by the member or his or her beneficiary on the effective
date of the allowance. No adjustment shall be made in the retirement
allowance of a member who retires prior to attaining normal
retirement age until the member attains normal retirement age.




31511.9.  (a) An employer which is subject to this article shall
provide disability benefits for its employees through a long-term
disability plan which shall be separate from and administered
separately from the retirement plans authorized by this article and
all other retirement plans.
   (b) The long-term disability plan shall consist of a separate
trust which shall be funded utilizing a level cost method and
employer contributions. No employee shall be required to make any
employee contribution to the long-term disability plan.
   (c) The board of supervisors shall contract for the resolution of
the issue of disability. The board of supervisors shall establish an
appeals board to which a member who is aggrieved by a decision of the
administrator may appeal.
   (d) Any member permanently incapacitated for the performance of
duty, regardless of age or years of service, shall receive disability
benefits as follows: (1) for not to exceed two years; (2) for any
time after the expiration of the two-year period specified in
subdivision (a) if, and only if the member is unable to perform the
duties of any occupation for which the member is qualified by reason
of training or experience.
   (e) The disability benefit shall be 50 percent of the final
compensation of the member reduced by any Social Security benefits,
workers' compensation benefits, and earnings from any employment
other than employment which is part of a rehabilitation program.




31511.10.  (a) The board of retirement shall establish a position
whose qualifications shall include experience in administration and
communication of defined benefit plans and defined contribution plans
and whose duties shall include management of the plan or plans
adopted pursuant to this article and reporting to the county
treasurer and the director of personnel.
   (b) The board of retirement shall establish and implement a
comprehensive communication program to educate employees regarding
the benefits available under this article and Social Security.




31511.11.  (a) The board of supervisors of any county subject to
this article shall establish a defined contribution retirement plan
authorized by Section 401 of the Internal Revenue Code of 1954 or a
similar plan authorized by the Internal Revenue Code of 1954.
   (b) Any full-time employee of the county who is hired by the
county on or after the operative date of this article in that county
and has completed 6 months of credited full-time service with the
county or any member who elects to transfer to the retirement plan
created by this article shall participate in the plan.
   (c) The county shall partially or fully match the contributions of
the employee on the basis mutually agreed to by the board of
supervisors and the employee representatives.
   (d) The right of the employee to benefits derived from employee
contributions vests upon the commencement of the participation by the
employee in the plan.
   (e) The right of the employee to benefits derived from matching
employer contributions vests 100 percent after five years of
full-time service with the county.
   (f) Upon termination of the employment of an employee whose
benefits derived from employer contributions are not vested, benefits
derived from the contributions of the employee shall be refunded to
the employee and the matching contributions of the employer shall be
credited to reduce future employer contributions or to pay expenses
of the plan.
   (g) The defined contribution plan shall accept rollover
contributions from other plans to the extent authorized by federal
law.
   (h) The plan shall be administered in accordance with subdivision
(k) of Section 401 of the United States Code.