SECTIONS 19999.2-19999.21 - California Statutes

GOVERNMENT CODE

SECTION 19999.2-19999.21

19999.2. (a) The Legislature hereby finds and declares that this
chapter is intended to satisfy the requirements prescribed by the
Omnibus Budget Reconciliation Act of 1990 (OBRA). Section 3121(b)(7)
(F) of the Internal Revenue Code requires that state employees who
are not members of the Public Employees' Retirement System must be
covered by social security, or, in the alternative, be provided
benefits through a qualified pension or annuity program, effective
with compensated services rendered on or after July 2, 1991.
Therefore, the Legislature hereby authorizes the development of a
retirement program under the State's Deferred Compensation Plan, the
Savings Plan, or any other acceptable defined contribution plan in
which state employees can defer compensation at 7.5 percent of wages,
as the term "wages" is defined for social security purposes.
(b) "State employees," as used in subdivision (a), includes the
employees defined in Section 19815, as well as employees of the
California State University, who are not covered by social security
or by the Public Employees' Retirement System.
(c) This section shall not apply to employees of the California
State University unless and until the trustees authorize their
coverage in this retirement program.
(d) In the event that the retirement program authorized by this
section is inconsistent with federal laws or rules or becomes
unnecessary under the state or federal law, this section shall become
inoperative.

19999.21. The Department of Personnel Administration shall
administer the retirement program established by this chapter. The
department shall provide by rule for the regulation of the retirement
program and the method by which the benefit payments would be made
to eligible recipients. The department shall by rule establish the
level of employee deferrals to the plan, cessation of, or transfer of
membership to the Public Employees' Retirement System upon
qualification, continued participation in the plan, and other
provisions necessary for the implementation of this retirement
program. The department may assess each state agency a fee for the
costs associated with administration of this program.
The regulations shall not be subject to the review and approval of
the Office of Administrative Law, pursuant to Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2.
The regulations shall become effective immediately upon filing with
the Secretary of State.