Status: Approved by Governor September 29, 2020. Effective: January 1, 2021.

Employers Contributions

AB 2101 bill amends the County Employees Retirement Law of 1937 (CERL) to include a statement of legislative affirmation of the ruling in Mijares v. OCERS, which upheld a retirement board’s plenary authority to recommend adjustments to county and district contributions necessary to ensure the appropriate funding of the retirement system.  The statement is found in Government Code Section 31454.7.

Service Purchase – Parental Leave

AB 2101 adds a new service purchase provision to CERL.  It allows a member who returns to active service following an uncompensated leave of absence on account of approved parental leave to receive service credit for the period upon payment of contributions and interest. The bill prohibits service credit to be received for such a period of absence from exceeding 12 consecutive months and would prescribe requirements for payments. 

This provision is operative in a county only if the county board of supervisors elects to make it so, and would apply to parental leave that begins after the election.  This new service purchase provision is found in Government Code Section 31646 subdivision (b).

Service Purchase – Military Leave

AB 2101 updated the CERL military leave service credit purchase for the period during which the member was out of county service. This bill requires that CERL comply with the federal Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA), as it may be amended. Any member who was absent from county or district employment for military service and is eligible for reemployment benefits pursuant to USERRA, may, as provided in USERRA, make contributions and receive service credit for the time absent.  (Government Code Section 31649.)

Board’s Power to Retire Members

The CERL requires boards of retirement to provide for the retirement of members who meet age and service requirements. AB 2101 authorizes the retirement board to delegate to the system administrator or other personnel to exercise the board’s power and perform its duty to retire members.  The bill requires that service retirements be reported to the board at its next public meeting after the retirement.  (Government Code Section 31670.)

60-Day Retirement Application Window 

The CERL requires that a retirement date may not be more than 60 days after the date of filing of the application for retirement.  AB 2101 amends the law to allow a shorter window, between the date the application is filed with the board and 60 days after the date of filing or a different number as approved by the board.  (Government Code Section 31672.)

Reinstatement From Retirement

AB 2101 requires that members who have retired under the CERL following an involuntary termination of employment who are subsequently reinstated to that employment pursuant to a final administrative or judicial proceeding be reinstated from retirement as if there were no intervening period of retirement.  The member must repay the retirement allowance and retirement contributions be made for any period for which salary is awarded in the amount that would have been contributed had the member’s employment not been terminated. The bill requires that the person receive service credit for the period for which salary is awarded. (Government Code Section 31680.10.)

Minimum Age Distribution

AB 2101 revises the age at which the retirement system is required to provide the above-described notice, as well as when the retirement system must start payment of an unmodified retirement allowance. The purpose of the bill is to conform state law to federal law regarding minimum age distribution.  Please see CCCERA’s federal tax compliance policy for further information.