AB 2472 amends the Public Employees' Retirement Law to provide that when an employer is required to make contributions due to past incorrect contributions, employer contributions will be at the rate in effect when the compensation was earned. Previously, employers were required to make the contributions at the much higher current rates.
This legislation also repeals the requirement that CalPERS file a report with the Governor and the Legislature on all matters within its jurisdiction and provides that an election, revocation, or change of election must be made within 30 calendar days after making the first payment on account of any retirement allowance. Finally, if a member who is retired for service or disability under this system is appointed or elected to serve as a judge, he or she shall reinstate from retirement and again be a CalPERS member, except where a retired judge is assigned to serve in a court of record, in which case the judge shall not earn service credit or be entitled to any CalPERS benefit for that service.
The change to employer contribution computations will save employers significant amounts of money in situations where CalPERS finds, several years later, that a person who the agency believed was an independent contractor was actually a common law employee of the agency and was required to be enrolled in CalPERS.
(AB 2472 amends Sections 20340, 20533, 21074, 21075, 21453, 21499, 75070, 75079, 75552, and 75570 of, to add Section 75580.5 to, and to repeal Sections 20237 and 22849 of, the Government Code.)