County employees' retirement.

Under existing law, counties and districts may provide retirement benefits to their employees pursuant to the County Employees Retirement Law of 1937 (CERL) . CERL provides that death benefits and survivors' allowance are payable to the survivors of a deceased member, as specified. CERL also specifies the minimum ages and years of service that are required in order to become eligible for retirement. Existing federal law regulates the provision of pension benefits and a retirement system providing pension benefits must meet prescribed requirements to maintain its tax qualified status. Federal law requires, in this regard, that a plan provide that, in the case of a participant who dies while performing qualified military service, as defined, the survivors of the participant are entitled to any additional benefits provided under the plan had the participant resumed and then terminated employment on account of death. This bill would specify that a retirement system established pursuant to CERL shall act in accordance with the requirements of federal law described above. The bill would also require that service for vesting purposes be credited to a member who dies while performing qualified military service for the period of his or her qualified military service. These provisions would apply to deaths that occur on or after January 1, 2007. CERL provides that the management of a retirement system created pursuant to its provisions is vested in a board of retirement. CERL requires that the board of retirement adjust the payment of benefits payable pursuant to the law's provisions, including cost-of-living adjustments, as necessary, in order to maximize the benefits available to members who are subject to specified limits of the Internal Revenue Code. This bill would prohibit the amount payable to a CERL retirement system member in a limitation year from exceeding the Internal Revenue Code limit as of the annuity starting date and as the limit may be increased in future years, as specified. The bill would specify that cost-of-living adjustments made to Internal Revenue Code limits continue to apply after a member's severance from employment or annuity starting date.