Added by Stats. 1947, Ch. 424.
This chapter may be cited as the County Employees Retirement Law of 1937.
Article 1 - General
California Government Code — §§ 31450-31485.22
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Sections (108)
Added by Stats. 1947, Ch. 424.
The purpose of this chapter is to recognize a public obligation to county and district employees who become incapacitated by age or long service in public employment and its accompanying physical disabilities by making provision for retirement compensation and death benefit as additional elements of compensation for future services and to provide a means by which public employees who become incapacitated may be replaced by more capable employees to the betterment of the public service without prejudice and without inflicting a hardship upon the employees removed.
Amended by Stats. 2013, Ch. 247, Sec. 1. (AB 1380) Effective January 1, 2014.
The right of a person to a pension, annuity, retirement allowance, return of contributions, the pension, annuity, or retirement allowance, any optional benefit, any other right accrued or accruing to any person under this chapter, the money in the fund created or continued under this chapter or the California Public Employees’ Pension Reform Act of 2013, and any property purchased for investment purposes pursuant to this chapter, are exempt from taxation, including any inheritance tax, whether state, county, municipal, or district. They are not subject to execution or any other process of court whatsoever except to the extent permitted by Section 31603 of this code and Section 704.110 of the Code of Civil Procedure, and are unassignable except as specifically provided
in this chapter.
Amended by Stats. 2013, Ch. 247, Sec. 2. (AB 1380) Effective January 1, 2014.
(a)The board may comply with and give effect to a revocable written authorization signed by a retired member or beneficiary of a retired member entitled to a retirement allowance or benefit under this chapter or the California Public Employees’ Pension Reform Act of 2013, authorizing the treasurer or other entity authorized by the board to deduct a specified amount from the retirement allowance or benefit payable to any retired member or beneficiary of a retired member for any of the following purposes:
(1)Paying premiums on any policy or certificate of group life insurance or group disability insurance issued by an admitted insurer.
(2)Paying premiums
for a prepaid group medical or hospital service plan.
(3)Paying premiums for a vision care program or dental plan, approved by the board, for the benefit of the retired member or his or her dependents.
(4)Paying premiums on national service life insurance or United States government converted insurance.
(5)Payment for the purchase of shares in or the payment of money to any regularly chartered credit union.
(6)Payment to a charitable organization or a federally chartered veterans’ organization that is approved by the board.
(7)Payments to a recognized retiree organization.
(8)Payment for the purchase of United States
savings bonds.
(9)The payment of personal income taxes to the government of the United States or the State of California.
(10)Payment for any retiree benefit programs available through the recognized retiree organization. The board may require that this payment be to a single party designated by the recognized retiree organization, either to itself or to a third-party administrator.
(b)Each month the order shall be drawn in favor of the insurer, institution, credit union, organization, or government named in the written authorization for an amount equal to the deductions authorized in subdivision (a) and made during the month.
(c)The board may charge a reasonable fee for the making of the deductions and
payments.
Amended by Stats. 2024, Ch. 108, Sec. 1. (AB 2474) Effective January 1, 2025.
(a)The board shall comply with and give effect to a revocable written authorization signed by a retired member or beneficiary of a retired member entitled to a retirement allowance or benefit under this chapter or the California Public Employees’ Pension Reform Act of 2013, authorizing the treasurer or other entity authorized by the board to deliver the monthly warrant, check, or electronic fund transfer, for the retirement allowance or benefit to any specified bank, savings and loan institution, or credit union to be credited to the account of the retired member or survivor of a deceased retired member. That delivery is full discharge of the liability of the board to pay a monthly retirement allowance
or benefit to the retired member or survivor of a deceased retired member.
(b)Any payments directly deposited by electronic fund transfer following the date of death of a person who was entitled to receive a retirement allowance or benefit under this chapter or the California Public Employees’ Pension Reform Act of 2013 shall be refunded to the retirement system.
(c)In order to obtain information from a financial institution following the death of a retired member or the beneficiary of a retired member, as provided in subdivision (o) of Section 7480, the board may certify in writing to the financial institution that the retired member or the beneficiary of a retired member has died and
that transfers to the account of the retired member or beneficiary of a retired member at the financial institution from the retirement system occurred after the date of death of the retired member or the beneficiary of a retired member.
(d)For purposes of this section, “account of the retired member or survivor of a deceased retired member,” may include an account held in a living trust or an income-only trust, also known as a Miller trust, that is controlled by the retired member or survivor of a deceased retired member or that is established for the retired member’s or the survivor of a deceased retired member’s benefit, in order to qualify for Medi-Cal, as established pursuant to Chapter 14 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code, or comparable
assistance.
Added by Stats. 2024, Ch. 108, Sec. 2. (AB 2474) Effective January 1, 2025. Repealed as of January 1, 2028, by its own provisions.
(a)(1) This section applies only to a retirement system in a county of the first class, as described in Sections 28020 and 28022.
(2)The board shall comply with and give effect to a revocable written authorization signed by a retired member or beneficiary of a retired member entitled to a retirement allowance or benefit under this chapter or the California Public Employees’ Pension Reform Act of 2013, authorizing the treasurer or other entity authorized by the board to deliver the monthly warrant, check, or electronic fund transfer, for the retirement allowance or benefit to any specified bank, savings and loan institution, credit union, or
prepaid account to be credited to the account of the retired member or survivor of a deceased retired member. That delivery is full discharge of the liability of the board to pay a monthly retirement allowance or benefit to the retired member or survivor of a deceased retired member.
(3)For purposes of this subdivision, a prepaid account shall have the same meaning as in Section 1339.1 of the Unemployment Insurance Code and shall meet the applicable requirements of that section to qualify under this subdivision.
(4)Prior to implementing the option to receive a retirement allowance or benefit by electronic fund transfer to a prepaid account pursuant to this
section, the board shall develop a procedure to provide a retired member or beneficiary who elects the option all of the following:
(A)Access to a monthly statement detailing the retirement allowance or benefit amount and any deductions thereof.
(B)A reasonable process for the retired member or beneficiary to report and contest any error of the retirement allowance or benefit amount.
(C)Contact information for a responsible system ombudsperson to assist the retired member or beneficiary in recovering any amounts deducted from the net retirement allowance or benefit amount once it has been deposited in the account, resulting from an error or by fraud.
(b)Any payments directly deposited by electronic fund transfer following
the date of death of a person who was entitled to receive a retirement allowance or benefit under this chapter or the California Public Employees’ Pension Reform Act of 2013 shall be refunded to the retirement system.
(c)In order to obtain information from a financial institution following the death of a retired member or the beneficiary of a retired member, as provided in subdivision (o) of Section 7480, the board may certify in writing to the financial institution that the retired member or the beneficiary of a retired member has died and that transfers to the account of the retired member or beneficiary of a retired member at the financial institution from the retirement system occurred after the date of death of the retired member or the beneficiary of a retired member.
(d)(1) No later than November 30, 2027, a retirement system of a county of the first class shall submit a report to the Assembly Committee on Public Employment and Retirement and the Senate Committee on Labor, Public Employment and Retirement that includes, but is not limited to, each of the following:
(A) A description of the history and need for a prepaid account to be offered as an option to the retirement system’s retired members or their beneficiaries.
(B) A summary of the board of retirement system’s processes and procedures to implement this section and Section 31590.2.
(C) The total number of all retired members of the retirement system.
(D) The total number of retired members of the retirement system who elected to have their retirement allowance under this chapter directly deposited into an account at a financial institution, as identified by the retired member.
(E) The total number of retired members of the retirement system who elected to have their retirement allowance provided by bank draft, such as a check.
(F) The total number of retired members of the retirement system who elected to have their retirement allowance deposited to a prepaid account, consistent with this section and Section 31590.2.
(G) Information detailing all costs to the retirement system with respect to implementing
and administering the option of a prepaid account, consistent with this section and Section 31590.2, respectively.
(H) To the extent feasible, a summary of comments, feedback, or experiences received from a retired member who elected to have their retirement allowance deposited to a prepaid account card, consistent with this section and Section 31590.2, and with respect to obtaining, using, or the replacement of, a prepaid account card for their retirement allowance.
(2)The report pursuant to paragraph (1) shall be submitted in compliance with Section 9795.
(e)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
Amended by Stats. 1995, Ch. 584, Sec. 3. Effective January 1, 1996.
Upon receipt of proof, satisfactory to the board, that a warrant or check drawn in payment of a retirement allowance or in payment of any other account due from the retirement system has been lost or destroyed, the treasurer or other entity authorized by the board upon request of the board of retirement shall as provided by Section 31590 issue a duplicate warrant or check bearing the same date as the original in payment of the same amount, without requiring a bond from the payee, and the treasurer or other entity authorized by the board shall pay the duplicate
in lieu of the original warrant or check and any losses incurred by reason of the issuance of duplicate warrants or checks shall be a charge against the account from which the payment is derived.
This section shall not be operative in any county until the time as the board of supervisors shall, by resolution, make this section applicable in the county.
Amended by Stats. 2022, Ch. 231, Sec. 8. (AB 1824) Effective January 1, 2023.
(a)Upon the death of any member after retirement, any retirement allowance earned but not yet paid to the member shall, notwithstanding any other provision of law, be paid to the member’s designated beneficiary.
(b)Upon the death of any person receiving a survivor’s allowance under this chapter, any allowance earned but not yet paid to the survivor shall, notwithstanding any other provision of law, be paid to the survivor’s designated beneficiary.
(c)For purposes of this section, “beneficiary” includes, but is not limited to, a corporation, a trust, or an estate.
Amended by Stats. 2005, Ch. 63, Sec. 1. Effective January 1, 2006.
(a)An actuarial valuation shall be made within one year after the date on which any system established under this chapter becomes effective, and thereafter at intervals not to exceed three years. The valuation shall be conducted under the supervision of an actuary and shall cover the mortality, service, and compensation experience of the members and beneficiaries, and shall evaluate the assets and liabilities of the retirement fund. Upon the basis of the investigation, valuation, and recommendation of the actuary, the board shall, at least 45
days prior to the beginning of the succeeding fiscal year, recommend to the board of supervisors the changes in the rates of interest, in the rates of contributions of members, and in county and district appropriations as are necessary. With respect to the rates of interest to be credited to members and to the county or district, the board may, in its sound discretion, recommend a rate that is higher or lower than the interest assumption rate established by the actuarial survey. No adjustment shall be included in the new rates for time prior to the effective date of the revision.
(b)(1) Upon the basis of the investigation, valuation, and recommendation of the actuary, the board shall, at least 45 days prior to the beginning of the succeeding fiscal year, recommend to the governing body of a district within the county system that is not governed by the board of supervisors the changes in the rates of contributions of
district members and in district appropriations as are necessary.
(2)This subdivision shall not be operative in any county until the board of supervisors, by resolution adopted by majority vote, makes the provision applicable in that county.
Amended by Stats. 1983, Ch. 886, Sec. 2.
Notwithstanding Section 31587, and in accordance with Section 31453 or 31510.1, the board may determine county or district contributions on the basis of a normal contribution rate which shall be computed as a level percentage of compensation which, when applied to the future compensation of the average new member entering the system, together with the required member contributions, will be sufficient to provide for the payment of all prospective benefits of such member. The portion of liability not provided by the normal contribution rate shall be amortized over a period not to exceed 30 years.
Added by Stats. 1992, Ch. 707, Sec. 3. Effective September 15, 1992.
Notwithstanding any other provision of this chapter, the board of retirement may, at the request of the board of supervisors, adopt a funding period of 30 years to amortize unfunded accrued actuarial obligations, as determined by their actuary or by an actuary employed by the board of investments, for benefits applicable to all membership categories for the purpose of determining employer contribution rates for counties and districts. The board of retirement shall approve a new amortization period based upon a request from the board of supervisors that demonstrates
a financial necessity. The board of retirement may deny a request when the request would subject the fund to an unsound financial risk.
A board of retirement may take an action pursuant to this section only once.
Amended by Stats. 2013, Ch. 247, Sec. 4. (AB 1380) Effective January 1, 2014.
(a)The board of supervisors shall, not later than 90 days after the beginning of the immediately succeeding fiscal year, adjust the rates of interest, the rates of contributions of members, and county and district appropriations in accordance with the recommendations of the board, but shall not fix them in amounts that reduce the individual benefits provided in this chapter or the California Public Employees’ Pension Reform Act of 2013.
(b)(1) The governing body of a district within the county system that is not governed by the board of supervisors shall, not later than 90 days after the beginning of the immediately succeeding fiscal year, adjust the rates of
contributions of district members and in district appropriations in accordance with the recommendations of the board, but shall not fix them in amounts that reduce the individual benefits provided in this chapter or the California Public Employees’ Pension Reform Act of 2013.
(2)This subdivision shall not be operative in any county until the board of supervisors, by resolution adopted by majority vote, makes the provision applicable in that county.
Amended by Stats. 2005, Ch. 63, Sec. 3. Effective January 1, 2006.
(a)The independent assumptions and calculations of an actuary contained in the actuarial valuation required by Section 31453 shall not be subject to the “meet and confer” provisions of the Meyers-Milias-Brown Act; however, it is recognized that those provisions require that the board or the board of supervisors meet and confer with representatives of recognized employee organizations prior to determining a course of action with respect to the recommendations contained in the actuarial valuation.
(b)(1) The independent assumptions and calculations of an actuary contained in the actuarial valuation required by Section 31453 shall not be subject to the “meet and confer” provisions of the Meyers-Milias-Brown Act; however, it is recognized that those provisions require that the governing body of a district within the county system that is not governed by the board of supervisors meet and confer with representatives of recognized employee organizations prior to determining a course of action with respect to the recommendations contained in the actuarial valuation.
(2)This subdivision shall not be operative in any county until the board of supervisors, by resolution adopted by majority vote, makes the provision applicable in that county.
(c)The intent of the Legislature, in enacting this section,
is to insure the solvency and actuarial soundness of the retirement systems governed by this chapter by preserving the independent nature of the actuarial evaluation process.
Amended by Stats. 1973, Ch. 55.
In any county subject to the provisions of Section 31676.1, 31676.11, 31676.12, or 31695.1 the board of supervisors may, by vote entered in the minutes of the board, make an additional appropriation sufficient to fund over a period of 30 years any deficit which may result to the system because of the adoption of Section 31676.1, 31676.11, 31676.12, or 31695.1 or by the adoption of Articles 6.8, 7.5 and 8.7. The board of supervisors may make such additional appropriation whether recommended by the board or not.
Added by Stats. 1957, Ch. 1387.
Whenever, in any county subject to the provisions of Section 31676.1 the board of supervisors makes any additional appropriations pursuant to Section 31454.5, the governing body of every district, including the board of supervisors where it is the governing body, also shall make an additional appropriation in the amount to which it has agreed, otherwise in the same proportion as the total pay roll deductions from the salaries of all members employed by such district for the latest pay roll period bear to the total pay roll deductions from the salaries of all members employed by the county for the same pay roll period.
Added by Stats. 2020, Ch. 275, Sec. 29. (AB 2101) Effective January 1, 2021.
The Legislature affirms the ruling of Mijares v. Orange County Employees’ Retirement System (2019) 32 Cal.App.5th 316, with respect to a board’s plenary authority to recommend adjustments to county and district contributions as necessary to ensure the appropriate funding of the system, and with respect to the mandate of Section 31454 that the county and districts adjust the rates of contributions of members and appropriations in accordance with the board’s recommendations. Under all circumstances, the county and districts shall each remain liable to the retirement system for their respective share of any unfunded actuarial liability of the system, as determined by the board.
Amended by Stats. 2013, Ch. 247, Sec. 5. (AB 1380) Effective January 1, 2014.
Unless the context otherwise requires, or unless superseded by any provision of the California Public Employees’ Pension Reform Act of 2013, the definitions and general provisions contained in this article govern the construction of this chapter.
Added by Stats. 2008, Ch. 369, Sec. 5. Effective January 1, 2009.
(a)It is unlawful for a person to do any of the following:
(1)Make, or cause to be made, any knowingly false material statement or material representation, to knowingly fail to disclose a material fact, or to otherwise provide false information with the intent to use it, or allow it to be used, to obtain, receive, continue, increase, deny, or reduce any benefit accrued or accruing to a person under this chapter.
(2)Present, or cause to be presented, any knowingly false material statement or material representation for the purpose of supporting or opposing an application for any benefit accrued or accruing to a person under this chapter.
(3)Knowingly accept or obtain payment from a retirement system with knowledge that the recipient is not entitled to the payment under the provisions of this chapter and with the intent to retain the payment for personal use or benefit.
(4)Knowingly aid, abet, solicit, or conspire with any person to do an act prohibited by this section.
(b)For purposes of this section, “statement” includes, but is not limited to, any oral or written application for benefits, report of family relationship, report of injury or physical or mental limitation, hospital records, test results,
physician reports, or other medical records, employment records, duty statements, reports of compensation, or any other evidence material to the determination of a person’s initial or continued eligibility for a benefit or the amount of a benefit accrued or accruing to a person under this chapter.
(c)A person who violates any provision of this section is punishable by imprisonment in a county jail not to exceed one year, or by a fine of not more than five thousand dollars ($5,000), or by both that imprisonment and fine.
(d)A person violating any provision of this section may be required by the court in a criminal action to make restitution to the retirement system, or to any other person determined by the court, for the amount of the benefit unlawfully obtained, unless the court finds that restitution, or a portion of it, is not in the interests of justice. Any restitution order
imposed pursuant to this section shall be satisfied before any criminal fine imposed under this section may be collected.
(e)The provisions provided by this section are cumulative and shall not be construed as restricting the application of any other law.
Added by Stats. 1947, Ch. 424.
“Actuarial equivalent” means a benefit of equal value when computed upon the basis of the mortality tables adopted by the board of supervisors and regular interest thereon.
Added by Stats. 1947, Ch. 424.
“Annuity” means payment for life derived from contributions made by a member.
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