2018 EDITION - LACERA

1 2018 EDITION RETIREMENT LAW BOOKThe 2018 EDITION of the Retirement Law Book contains the following: State of California County Classification (Government Code Section 28020) County Employees Retirement Law of 1937 (CERL) California Public Employees' Pension Reform Act of 2013 (PEPRA) Other Government Code Sections Applicable to CERL SystemsFor your convenience, each section includes a list of legislative updates, a table of contents, and an law book has been prepared by the Los Angeles County Employees Retirement Association ( LACERA ) for the State Association of County Retirement Systems (SACRS). Although every effort has been made to ensure that this law book is produced without error, LACERA makes no claims as to the accuracy or completeness of the information presented herein.

2 This publication was not prepared by persons licensed in California to practice law. It is not a substitute for the official publications of the laws presented herein or the advice of an attorney. Some provisions of the 1937 Act do not apply in every county; consult your county's retirement system for applicable Association of County Retirement Systems (SACRS)1415 L Street, Suite 1000 Sacramento, CA 95814 Phone: (916) 441-1850 Fax: (916) 441-6178 Email: Website: 2018 EDITION of the Retirement Law Book is available at OF CALIFORNIACOUNTY CLASSIFICATIONThe counties of the State of California are classified according to their population (Government Code Section 28020).

3 County members of the State Association of County Retirement Systems have the following classes:CLASSCOUNTY1stLos Angeles2ndOrange3rdSan Diego4thAlameda7thSan Bernardino8thSacramento9thContra Costa10thSan Mateo12thFresno13thVentura14thKern15thSa n Joaquin16thSanta Barbara18thMarin19thSonoma20thStanislaus 21stTulare25thMerced32ndImperial34thMend ocinoB2018 EDITION COUNTY EMPLOYEES RETIREMENT LAW OF 1937 GOVERNMENT CODE Title 3, division 4, Part 3, Chapter 3 and Excerpts from Sections 2018 EDITION of the County Employees Retirement Law of 1937 (CERL) contains all additions and amendments made by the legislature in 2017. Additions and amendments are identified by a vertical line along the outside margin on affected Added/Amended Bill Effective Date PageArticle 3 Retirement Amended AB 995 01/01/2018 112 Article 5 Financial Provisions31582 Amended SB 671 01/01/2018 133 Article 7 Service31653 Amended AB 1516 01/01/2018 179 Article 8 Retirement for Added SB 112 01/01/2018 2292018 EditionCounty Employees Retirement Law Legislative UpdatesLegislation enacted in 2017 added or amended the following sections of the County Employees Retirement Law of 1937.

4 These additions and amendments became effective January 1, EDITION TABLE OF CONTENTSPart 3 of division 4 of Title 3 Chapter 3. County Employees Retirement Law of 1937 Article Page 1. General. Secs..1 Alternative Plan for Counties of the 16th Class (Santa Barbara). Secs..46 Alternative Plan for Counties with Populations in Excess of Six Million (Los Angeles). Secs..53 Alternative Plan for Counties of the 10th Class (San Mateo). Secs..73 Alternative Plan for Counties of the 25th Class (Merced). Secs..78 Alternative Optional, Integrated, Noncontributory Plan for Counties of the 20th Class. Secs..84 2. Establishment of System.

5 Secs. 31500-31509 ..90 Additional Plan for Counties of the First Class (Los Angeles). Secs..92 Alternative Plan for Counties of the 13th Class (Ventura). Secs..95 General Limitations. Secs. 31515-31517 ..101 3. Retirement Board. Secs. 31520-31543 ..102 4. Membership. Secs. 31550-31567 ..122 5. Financial Provisions. Secs. 31580-31607 ..131 Alternative Financial Provisions. Secs..144 6. Members' Contributions. Secs..147 Safety Members' Contributions. Secs..156 7. Service. Secs..161 Retirement of Safety Members for Service. Secs..184 8. Retirement for Service. Secs. 31670-31683 ..194 Community Property. Secs..236 Group Insurance.

6 Secs. 31691-31693 ..240 Post-Employment Benefits. Secs..242 Extension of Safety Member Provisions. Secs..246 Long-Term Care Group Insurance. Secs..246 Vision Care. Secs..248 Postemployment Health Benefits: San Bernardino County Alternative Fund. Secs..249 Dental Care. Secs. 9. Deferred Retirement. Secs. 31700-31706 ..254 10. Disability Retirement. Secs..256i 11. Optional Retirement Allowances. Secs. 31760-31768 ..282 Deferred Retirement Option Program. Secs..292 12. Death Benefit. Secs. 31780-31792 ..303 13. Integration with Old Age and Survivors Insurance. Secs. 31800-31817 ..317 14. Subrogation. Secs. 31820-31823.

7 329 15. Reciprocal Benefits. Secs..330 Survivors' Allowances. Secs. 31841-31852 ..341 Survivors' Allowances. Secs..344 16. Alternate Survivors' Allowances. Secs. 31861-31869 ..347 Cost-of-Living Adjustment. Secs..348 Retrospective Cost-of-Living Adjustment. Secs..357 17. Integration with Federal Old Age, Survivors, and Disability Insurance. Secs. 31880-31894 ..359 Termination of Social Security in Counties with a Population Exceeding 6,000,000. Secs..361 18. Adjustment to Fit Other Allowances. Secs. 31895-31898 ..361 Chapter Internal Revenue Code County Compliance and Replacement Benefits Program Secs.

8 363ii2018 EditionCounty Employees Retirement LawINDEXAAct, 1937, adoption of provisions In general ..31500 31502 Actuarial assumptions .. equivalent ..31456, impact ..31516 Actuarial valuation ..31453, 31611 Additional contributions ..31465, 31627, , plan* ..31510 retirement credit (ARC) .. , , 31658 Adjustment to fit other allowances ..31895 31898 Administration of system Board may contract with third party .. of system, cost of County, payment by ..31580 Computer products and support services .. District, payment by .. Retirement fund, payment from .. , , board may appoint .. , , (see Sworn statements)Age of member Determination by board.

9 31531 Entry after deferred retirement .. , Estimate of ..31531 Normal retirement age .. , Sworn statement of member ..31526 Under reciprocal benefits ..31833 31834 Alameda County Application of Section 31835 .. Authority to provide different benefits for safety members .. Eligibility for retirement benefits .. Pension calculation for safety members .. Termination of certain additional benefits .. liquor, denial of pension because of use of ..31728 Allowance (see Calculation of retirement allowances)Allowance increases (see Increases of retirement allowances)Alternate member .. retired member .. , , plans* ..31486 , 31511 , existing rights not abrogated by.

10 31481 Annual budget (see Budget)Annual financial statement ..31597 31598 Annuity Amount of ..31674*Provisions of this plan are not referenced in the Certificates ..31526 Defined ..31457 Application for Disability retirement ..31721, 31722 Service retirement Elective officers .. General members .. , 31672, Safety members .. , , Additional because of use of fixed formula By county .. By district .. Additional to meet requirements of superseded system ..31507 Adjustment according to actuarial valuation ..31453, 31454 Application of ..31587 Auditor s transfer from.