County employees retirement: administrative costs.

The County Employees Retirement Law of 1937 requires a board of retirement, or a board of retirement and the board of investment, with appointed members to annually adopt a budget covering the entire expense of administration of the retirement system and prohibits the expense incurred in any year from exceeding 18100 of 1% of the total assets of the retirement system. Existing law provides that expenditures for legal services or costs of litigation are not considered to be a cost of administration of the retirement system. Existing law prohibits expenses incurred in any year for expenditures for computer software and hardware and computer technology consulting services, in support of these products, from exceeding the greater of the sum of 18100 of 1% of the total assets of the retirement system plus $1,000,000 or 23100 of 1% of the total assets of the retirement system. This bill would prohibit expenses for the costs of administration of the retirement system incurred in any year from exceeding the greater of 21100 of 1% of the accrued actuarial liability of the retirement system or $2,000,000, as adjusted annually by a specified annual cost-of-living adjustment. This bill would eliminate the exclusion of expenditures for legal services and costs of litigation from the costs of administration of the retirement system and would, instead, exclude from those costs of administration expenditures for computer software and hardware and computer technology consulting services in support of these products.