Article 2.6 - Alternative Plan for Counties of the 13th Class

California Government Code — §§ 31511-31511.11

Sections (4)

Added by Stats. 1985, Ch. 1480, Sec. 1.

(a)The retirement plan created by this article shall be known as Retirement Plan 3.
(b)This article shall be applicable in the retirement system of any county of the 13th class as described by Sections 28020 and 28034, if the board of supervisors executes a memorandum of understanding agreement with employee representatives and adopts, by majority vote, a resolution providing that the article shall be applicable.
(c)The purpose of this article is to provide a noncontributory retirement plan for general

members as an alternative to the provisions and benefits otherwise contained in this chapter.

(d)The retirement benefits of (1) all general members employed after the date this article is made operative and (2) existing general members who transfer to the plan herein created, shall be governed by this article.
(e)In the event of a conflict, this article shall supersede and prevail over other provisions or application of provisions otherwise contained in this chapter.
(f)Except as otherwise provided below, the provisions contained in this chapter shall apply:
(1)Article 10 (commencing with Section 31720) shall not apply.
(2)Article 16.5 (commencing with Section 31870) shall not

apply.

(g)Article 15 (commencing with Section 31830) shall only be applicable for service retirement. Those provisions of Article 15 (commencing with Section 31830) dealing with disability retirement and the requirement relating to the deposit of accumulated member contributions shall not apply.
(h)Except as otherwise provided, any member who upon retirement receives a retirement pension calculated in accordance with sections or provisions added to this article subsequent to the effective date of this article shall have his or her pension calculated under each such section or provision only for the period of time that those sections or provisions were in effect, unless otherwise mutually agreed between the employer and its employee representatives.
(i)Unless specifically otherwise provided therein, no amendment to

this article enacted subsequent to the effective date of this article shall apply to any county or to the employees of any county unless and until mutually agreed to by the employer and employee representatives and adopted by majority resolution of the board of supervisors.

Added by Stats. 1985, Ch. 1480, Sec. 1.

Unless the context otherwise requires, the definitions contained in this section govern the construction of this article.

(a)“Board” means the board of retirement.
(b)“Employer” means the county or district or agency whose employees are members of the retirement system of the county.
(c)“Federal system” means the Old Age and Survivors Insurance provisions of the Social Security Act.
(d)“Member” or

“general member” means an employee hired on a permanent basis, as defined by the employer, except an employee eligible for safety membership.

(e)“Primary insurance amount” means the monthly retirement benefit payable under the federal system at the normal retirement age.
(f)“Service” means the period of employment of a member and the time in which a member or former member (1) is totally disabled, and (2) is receiving disability benefits or is eligible to receive disability benefits either during or after any elimination or qualifying period, under a long-term disability plan provided by the employer.

Except as otherwise herein provided, a member shall not be credited with service for any period of time in which the member is absent from work without pay.

Unless otherwise provided, service

shall not include military service or public service other than service with the employer.

(g)“Final compensation” means the average annual compensation earnable by a member during any three years elected by a member at or before the time he or she files an application for retirement, or, if he or she fails to elect, during the three years immediately preceding his or her retirement. If a member has less than three years of service, his or her final compensation shall be determined by dividing his or her total compensation by the number of months of service credited to him or her and multiplying by 12.

The board of supervisors of any county subject to this article shall establish a defined contribution retirement plan authorized by Section 401 of the United States Code or a similar plan authorized by the United States Code.

Added by Stats. 1985, Ch. 1480, Sec. 1.

(a)The board of retirement shall establish a position whose qualifications shall include experience in administration and communication of defined benefit plans and defined contribution plans and whose duties shall include management of the plan or plans adopted pursuant to this article and reporting to the county treasurer and the director of personnel.
(b)The board of retirement shall establish and implement a comprehensive communication program to educate employees regarding the benefits available under this article and Social Security.

Added by Stats. 1985, Ch. 1480, Sec. 1.

(a)The board of supervisors of any county subject to this article shall establish a defined contribution retirement plan authorized by Section 401 of the Internal Revenue Code of 1954 or a similar plan authorized by the Internal Revenue Code of 1954.
(b)Any full-time employee of the county who is hired by the county on or after the operative date of this article in that county and has completed 6 months of credited full-time service with the county or any member who elects to transfer to the retirement plan created by this article shall participate in the plan.
(c)The county shall partially or fully match the contributions of the employee on the basis mutually agreed to by the board of supervisors and the employee representatives.
(d)The right of the employee to benefits derived from employee contributions vests upon the commencement of the participation by the employee in the plan.
(e)The right of the employee to benefits derived from matching employer contributions vests 100 percent after five years of full-time service with the county.
(f)Upon termination of the employment of an employee whose benefits derived from employer contributions are not vested, benefits derived from the contributions of the employee shall be refunded to the employee and the matching contributions of the employer shall be credited

to reduce future employer contributions or to pay expenses of the plan.

(g)The defined contribution plan shall accept rollover contributions from other plans to the extent authorized by federal law.
(h)The plan shall be administered in accordance with subdivision (k) of Section 401 of the United States Code.