Public employee retirement benefits: prefunding.

Existing law creates the Public Employees' Retirement System, which provides defined retirement benefits to employees of the state and to employees of other public agencies contracting with the Board of Administration of the Public Employee's Retirement System for this purpose. The benefits provided by the system are funded by employer and employee contributions and investment returns. This bill would require the Board of Administration of the Public Employee's Retirement System to develop, establish, and administer the California Employers' Pension Prefunding Trust Program in order to encourage state and local public employers that provide a defined benefit pension plan to their employees to effectively manage their pension contributions.