SECTIONS 20220-20238 - California Statutes

GOVERNMENT CODE

SECTION 20220-20238

20220. The board shall, on the request of a board of retirement of
a county retirement system supply information and data necessary for
administration of that system as it is affected by membership in and
service credited under this system.

20221. Each state agency, school employer, and the chief
administrative officer of a contracting agency or any other person
who its governing body may designate shall furnish all of the
following:
(a) Immediate notice to the board, in the manner prescribed by the
system, of the change in status of any member resulting from
transfer, promotion, leave of absence, resignation, reinstatement,
dismissal, or death.
(b) Any additional information concerning any member that the
board may require in the administration of this system.
(c) The services of its officer and departments that the board may
request in connection with claims by members against this system.

20221.5. Every state agency, school employer, or contracting agency
shall, upon request from the board, provide information on its
employees who are not enrolled as members of the system to assist the
board to carry out the administration of the system.
(a) The information provided under this section shall be submitted
in the manner and under the conditions prescribed by the board.
(b) Nothing in this section shall be construed to supersede or
diminish an employer's responsibility to determine eligibility or to
enroll its qualifying employees in membership.
(c) Any information obtained under this section shall be treated
as confidential by the system, under the same terms and conditions
that apply to information that is confidential pursuant to Section
20230.

20222. The comptroller of the university, or any other official who
the university may designate, shall furnish monthly reports to the
board showing changes in the status of all members employed by the
university during the preceding month, and shall furnish any
additional information concerning any members that the board may
require in the administration of this system.

20222.5. (a) The board may, during the course of an audit, require
each state agency, school employer, including each school district
represented by a school employer, and contracting agency, to provide
information or make available for examination or copying at a
specified time and place, or both, books, papers, any data, or
records, including, but not limited to, personnel and payroll
records, as deemed necessary by the board to determine the
correctness of retirement benefits, reportable compensation,
enrollment in, and reinstatement to this system.
(b) The information obtained from an employer under this section
shall remain confidential pursuant to Section 20230.

20223. Each employee shall file with the board information
affecting his or her status as a member as the board may require.

20224. If it is impracticable for the board to determine from the
records the length of service, compensation, or age of any member, or
if any member refuses or fails to give the board a statement of his
or her state service, compensation, or age, the board may estimate
the length of service, compensation, or age.

20225. (a) In addition to other records and accounts, the board
shall keep records and accounts necessary to compute at any time:
(1) The total accumulated contributions of members.
(2) The total accumulated contributions of retired members and of
deceased members, to or on account of whom payments involving life
contingencies are paid, less the annuity payments made to the
members.
(3) The accumulated contributions of the state, school employers,
and of contracting agencies held for the benefit of members on
account of current service.
(4) All other accumulated contributions of the state, school
employers, and of contracting agencies, which shall include the
amounts available to meet the obligation of the state, school
employers, and of the contracting agencies, respectively, on account
of benefits that have been granted to, or on account of, retired and
deceased employees and on account of prior service of members.
(b) For the purposes of this section, all employers subject to
Chapter 9 (commencing with Section 20790) shall be deemed to be a
single account with respect to their local miscellaneous members, all
other employers not subject to Chapter 9 shall be deemed to be a
single account with respect to their local miscellaneous members, all
employers of local safety members shall be deemed to be a single
account with respect to those local safety members, and all employers
of school members shall be deemed to be a single account with
respect to those school members.
However, the purposes of this section shall be construed in
conformity with the individual employer contribution rates
established pursuant to Section 20815.

20226. The records and accounts required under Section 20225 shall
not include the contributions made by the state or contracting
agencies with respect to the survivor allowances provided for in
Article 3 (commencing with Section 21570) of Chapter 14. The board
shall keep additional records and accounts with respect to those
contributions as will show at any time the accumulated contributions
of the state and of contracting agencies held to meet the obligation
of the state and of the contracting agencies, respectively, on
account of survivor allowances.

20227. The actuary shall cause to be published, as of the date of
the investigation and valuation made pursuant to Section 20131, a
financial statement showing an actuarial valuation of the assets and
liabilities of this system and a statement as to the accumulated cash
and securities in the retirement fund as certified by the
Controller. The actuary may omit from the statement, which shall be
published as of July 1 of every other year, assets and liabilities
resulting from prior service, and shall include assets and
liabilities on account of current service in amounts equal only to
accumulated contributions held on account of that service.

20228. The board shall annually employ a certified public
accountant, who is not in public employment, to audit the financial
statements of this system. The costs of the audit shall be paid from
the income of the retirement fund. The audit shall be made annually.
The board shall file a copy of the audit report with the Governor,
the Secretary of the Senate, and the Chief Clerk of the Assembly.
The board, for purposes of Section 7504, may file internally
prepared financial statements with the Controller within six months
of the end of the fiscal year, and shall file independently audited
financial statements as soon as they are available.
The annual audits of the financial statements of the system shall
not be duplicated by the Department of Finance or the State Auditor.
This section does not affect the ability of the State Auditor or
the Department of Finance to conduct other types of audits of the
system as otherwise authorized by statute. This system shall be
exempt from a pro rata general administrative charge for auditing.

20229. (a) The board, notwithstanding Section 10231.5, any time it
adopts the contribution rates described in Chapter 8 (commencing with
Section 20671) and Chapter 9 (commencing with Section 20790), shall
provide the Legislature, the Governor, and the Treasurer with a
report that includes all of the following:
(1) (A) A description of the investment return assumption utilized
by the board when determining the contribution rates.
(B) A calculation of the contribution rates utilizing an
investment return assumption based on the lesser of 6 percent per
annum or one percentage point below the investment return assumption
utilized by the board.
(2) (A) A description of the amortization period for any unfunded
liabilities utilized by the board when determining the contribution
rates.
(B) A calculation of the contribution rates based on an
amortization period equal to the estimated average remaining service
periods of employees covered by the contributions.
(3) (A) A description of the discount rate utilized by the board
for reporting liabilities.
(B) A calculation of those liabilities based upon a discount rate
equal to the rate of the 10-year United States Treasury Note as of 30
days before the date of the report.
(4) The market value of the assets controlled by the board and an
explanation of how the actuarial value assigned to those assets
differs from the market value of those assets.
(b) The board, notwithstanding Section 10231.5, at any time it
forecasts the contribution rates described in Chapter 8 (commencing
with Section 20671) and Chapter 9 (commencing with Section 20790),
shall provide the Legislature with a revised calculation of the
forecasted contribution rates utilizing an investment rate assumption
based on the lesser of 6 percent or one percentage point below the
investment return assumption utilized by the board in the calculation
of the forecasted contribution rates.
(c) The Treasurer within 30 days of receipt of the report required
by subdivision (a) shall, during a publicly noticed floor session of
each house of the Legislature, do all of the following:
(1) Explain the role played by the investment return assumption
and amortization period in the calculation of the contribution rates.
(2) Describe the consequences for future state budgets should the
investment return assumption not be realized.
(3) Report whether the board's amortization period exceeds the
estimated average remaining service periods of employees covered by
the contributions.
(4) Express his or her opinion of the reasonableness of the board'
s selection of the investment return assumption and the amortization
period.
(d) The reports required by subdivisions (a) and (b) shall be
submitted in compliance with Section 9795.

20230. Data filed by any member or beneficiary with the board is
confidential, and no individual record shall be divulged by any
official or employee having access to it to any person other than the
member to whom the information relates or his or her authorized
representative, the contracting agency or school district by which he
or she is employed, any state department or agency, or the
university. The information shall be used by the board for the sole
purpose of carrying into effect the provisions of this part. Any
information that is requested for retirement purposes by any public
agency shall be treated as confidential by the agency.
The gross amount of any benefit or any refund of a PERS
contribution due to a member or beneficiary is not confidential and
may be released upon request to the board.
The board may seek reimbursement for reasonable administrative
expenses incurred when providing that information. Except as provided
by this section, no member's, beneficiary's or annuitant's address,
home telephone number, or other personal information shall be
released.
For purposes of this section, "authorized representative" includes
the spouse or beneficiary of a member when no contrary appointment
has been made and when, in the opinion of the board, the member is
prevented from appointing an authorized representative because of
mental or physical incapacity or death.

20231. Notwithstanding any other provision of law, the Employment
Development Department shall disclose to the board information in its
possession relating to the earnings of any person who is receiving a
disability retirement allowance from this system and has filed with
the board a release permitting the Employment Development Department
to furnish that information. The earnings information shall be
released to the board only upon written request from the board
specifying that the person is receiving a disability retirement
allowance from this system. The request may be made by the executive
officer of this system or by an employee of this system so authorized
and identified by name and title by the executive officer in
writing. The board shall notify recipients of disability retirement
allowances with prescribed limits based on earnings that earnings
information from the Employment Development Department's records will
be released upon request by the board. The board shall not release
any earnings information received from the Employment Development
Department to any person, agency, or other entity. This system shall
reimburse the Employment Development Department for all reasonable
administrative expenses incurred pursuant to this section. Any person
receiving a disability retirement allowance who declines to
authorize the release of earnings information as provided by this
section shall instead furnish the board with proof of earnings the
board may require, including, but not limited to, copies of the
person's federal and state income tax returns.

20232. As soon as practicable after the close of each fiscal year
the board shall file with the Governor and the Legislature a report
of its financial statements and investments for the fiscal year. The
report shall be submitted in printed or electronic form and shall
include, but not be limited to, each of the following:
(a) A copy of the annual audit performed pursuant to Section
20228.
(b) A review of the system's asset mix strategy, a market review
of the economic and financial environment in which investments were
made, and a summary of the system's general investment strategy.
(c) A description of the investments currently held by this system
at cost and market value. The description of investments shall
include, but not be limited to, the asset classes reported pursuant
to Section 20235. The report shall also include a list of all
investment holdings at the close of the fiscal year, including any
major divestitures taken during the fiscal year.
(d) The following information regarding the rate of return of this
system by asset type:
(1) Time-weighted market value rate of return on a five-year,
three-year, and one-year basis.
(2) Portfolio return comparisons by asset class that compare
investment returns with an alternative theoretical portfolio of
comparable funds, universes, and indexes.
(e) The use of outside investment advisers and managers, including
costs and fees.
(f) A description of the system's investments at cost and market
value held in the state.
(g) A review of the system's custodial relationship and daily cash
management, purchases, sales, turnover, private placements, soft
dollar purchases, and transaction costs such as commissions, dealer
spreads, and accommodations.

20233. The board shall report to the Governor and the Legislature,
not later than December 1 of each year, on the extent to which the
purpose of Section 21310 is being achieved under the provisions of
this article and Article 2 (commencing with Section 20120) and the
amount of supplementary increases in retirement allowances required
to meet the objective of preserving the purchasing power of benefits
provided by this system. The board shall also determine and report on
the increase in the state contribution rate required to provide the
supplementary increases for state members, other than school members.

20235. (a) The board shall submit a review of this system's assets
to the Legislature on a quarterly basis. The report shall also be
made available to all contracting agencies. The report shall do both
of the following:
(1) Discuss this system's portfolio and contain the following
information:
(A) Concentration, current holdings at cost and market value, of
equities.
(B) Concentration, current holdings at cost and market value, of
fixed income instruments.
(C) Current holdings at cost and market value of real estate
equities.
(D) Current holdings at cost and market value of mortgages.
(E) Options and forward commitments.
(F) Cash and cash equivalents.
(2) Disclose the following information on the rate of return of
the fund by type of asset:
(A) Time-weighted return on a five-year, three-year, two-year, and
one-year basis.
(B) Dollar-weighted return on a five-year, three-year, two-year,
and one-year basis.
(C) Summary of performance of an alternative theoretical portfolio
containing all investments and performance of comparable universes
and other indexes.
(b) Upon written request from a contracting agency that does not
participate in a risk pool, the board shall submit additional
quarterly reports to the contracting agency as described in this
subdivision. For the first quarter of the fiscal year, the report
shall be submitted within 120 days after the end of the quarter and
shall contain the agency's beginning balance for the fiscal year. For
the second and third quarters of the fiscal year, the report shall
be submitted to the contracting agency within 90 days after the end
of the quarter. For the fourth quarter of the fiscal year, the report
shall be submitted within 180 days after the end of the quarter and
shall contain the agency's balance as of the end of the fiscal year.
The report shall include, but need not be limited to, the following:
(1) All contributions made to the system by the contracting agency
and its employees. The contributions shall be reported as the
amounts paid and the amounts due from the contracting agency for both
employer contributions and employee contributions.
(2) All benefits paid by the system to members of the contracting
agency and their survivors and beneficiaries, including payments on
account of pension, death, and disability benefits, and withdrawals
of contributions. The benefits shall be reported as the total monthly
allowances paid to retirees, survivors, and beneficiaries; the
amount of total refunds paid; and the amount of any other lump sums
paid.
(3) An amount that represents any miscellaneous adjustments,
including transfers in and out.
(4) That quarter's portion of the agency's estimated share of the
system's administrative costs that shall be assessed at the end of
the fiscal year.
(5) The rate of return for the system during the quarter as
reported to the board by the investment committee.
(6) The estimated interest applied to the agency's account as
determined by the system. For purposes of this paragraph, the
"estimated interest applied" means the estimate of the annual net
earnings, as defined in Section 20052, and is subject to adjustment
at the end of the fiscal year based on the actual dollar-weighted
amount of investment return that shall be credited to the agency's
account for the fiscal year. The report for the fourth quarter of the
fiscal year shall also include the actual dollar-weighted amount of
investment return for the fiscal year that shall be credited to the
contracting agency's account.
(c) Upon written request from a contracting agency that
participates in a risk pool, the board shall submit to the
contracting agency quarterly reports that reflect the total
contributions made to the system by agencies in the risk pool, the
total benefits paid by the system with respect to the risk pool, the
total estimated share of administrative costs for the risk pool, and
the total estimated share of investment returns for the risk pool.
(d) A contracting agency requesting quarterly reports pursuant to
subdivision (b) or (c) shall pay a fee, in an amount determined by
the board, not to exceed one thousand five hundred dollars ($1,500)
quarterly per agency while the manual process of collecting the
information is in use.
(e) Any report received by a contracting agency pursuant to this
section shall be made available by the agency to any employee
organization that represents the agency's employees and that requests
a copy of the report.

20236. (a) The board shall provide the Legislature with an analysis
of the asset and liability implications of each bill that would
affect the investment strategy of this system, the funding of this
system, or the benefit structure of this system. The analysis shall
include an explanation of the methodology employed and the
assumptions used in its preparation. Neither fiscal committee of the
Legislature shall hear any such bill until the analysis has been
provided to the committee.
(b) There is hereby continuously appropriated, without regard to
fiscal years, from the retirement fund, an amount sufficient to pay
all costs arising from subdivision (a), but not to exceed fifty
thousand dollars ($50,000) in any one fiscal year.

20237. In addition to any other reports that it may be required to
make by law, the board shall annually file a separate report with the
Governor and each house of the Legislature on all matters under the
jurisdiction of the board.

20238. In addition to any other reports that it may be required to
make by law, the board shall annually file a separate report to the
Legislature and each appointing power and other appointing authority
on the number of new state retirees, by individual state employer,
that are processed in the immediately preceding fiscal year to the
service, disability, and industrial disability retirement rolls and
on the incurred cost of this system for state members for the
immediately preceding three fiscal years.
As used in this section, "incurred cost" means all paid and
expected future cost of an industrial disability retirement. There
shall be deducted from the gross incurred cost the amount of service
time accrued by an employee.