Public Employees' Retirement System: contracting agencies.

The Public Employees' Retirement Law permits any public agency, as defined, to enter into a contract to participate in the Public Employees' Retirement System, as specified. That law also authorizes the Board of Administration of the Public Employees' Retirement System to establish a deferred compensation program for California public employees. The Public Employees' Medical and Hospital Care Act authorizes the Board of Administration of the Public Employees' Retirement System to contract with carriers for health benefit plans and major medical plans for employees and annuitants, as defined. Participation in the system and these benefit programs is funded by employer and employee contributions. This bill would require contributions made by a contracting agency under the provisions described above to be paid through an electronic funds transfer, as defined, that is prescribed by the Board of Administration of the Public Employees' Retirement System, as specified. The bill would authorize a contracting agency that is unable, for good cause, to comply with that requirement to apply to the board for a waiver. The Public Employees' Retirement Law authorizes the Board of Administration of the Public Employees' Retirement System to charge interest, at a rate approximating the average rate received on moneys then being invested, on the amount of any payment due and unpaid by a contracting agency until payment is received. This bill would instead authorize the board to charge interest at the actuarial interest rate on those amounts due and unpaid by a contracting agency.