SB 216 makes changes affecting CalPERS
The California Public Employees’ Retirement System (CalPERS) is an agency that manages pension and health benefits for more than 1.6 million California public employees, retirees, and their families. In significant part, California Senate Bill 216 does the following:
- Repeals an obsolete statute that required CalPERS to give first priority to investing 25% of all funds available for new investment in a fiscal year to “investment securities and products related to specified real property located in the state.” This bill also eliminates corresponding obsolete reporting requirements.
- Clarifies that CalPERS may, during the course of an audit as authorized by existing law, require public employers to provide information deemed necessary by CalPERS to determine eligibility for retirement benefits.
- Changes, from quarterly to semi-annually, the period by which CalPERS must produce its asset and performance report and submit it to the Legislature. This bill also eliminates the requirement that the report include the “cost basis” for CalPERS’ holdings, requiring other specified information instead.
- Clarifies that a member who wishes to purchase service credit for uncompensated absence of an approved medical leave or parental leave must do so after returning to active public employment and prior to retirement.
Questions regarding SB 216 changes should be directed to your labor law counsel.
By Kerianne Steele | October 26, 2015