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Article 2.6. Alternative Plan For Counties Of The 13th Class of California Government Code >> Division 4. >> Title 3. >> Part 3. >> Chapter 3. >> Article 2.6.
(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.
(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.
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.
(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.
(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.
(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.
(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.
(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.
(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:
(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:
(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.
(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.
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.
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.
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.
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.
(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.
(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.
(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.
(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.
(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.
(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.
