Military Service Purchases

Transcription

1 Military Service Purchases Legislative Proposal

2 Why are we here? I get frustrated every time I have to answer a question about military service purchases Amending the military service purchase statutes can make a positive impact on the CERL If the attorneys can agree on this, the legislation is more likely to be successful 2

3 The Issue Current statute (31649) makes little sense and is not USERRA compliant: It is an opt out provision: The member may file with the board his or her election that no further contributions be deducted It does not allow for partial buybacks Silent on interest and does not mention USERRA at all Do any systems actually use this statute? 3

4 and Nearly identical statutes that add to the confusion History: added with PEPRA due to uncertainty about whether PEPRA members would be able to purchase Not much of a question now Do we really need two statutes that accomplish the same thing? 4

5 31650 and implements opt out Explains how to implement the automatic contributions is unnecessary Explains how to manage current contributions Ok, maybe not unnecessary, but we can simplify things 5

6 Proposal 1 - Methodology Amend Basically rewrite the statute to comply with USERRA and loop in non-userra military leave Repeal the sections that are nonconforming and superfluous , , 31650,

7 Proposal 1 - Language Section is amended to read: (a) This chapter shall comply with the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) (38 U.S.C et. seq.) as amended from time to time. 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. 7

8 Proposal 1 - Language (b) Any member who does not qualify for reemployment benefits under subsection (a) and who returns to county or district employment within one year of being honorably discharged from the Armed Forces of the United States, shall receive credit for service for all or any part of his or her military service, if, before retirement from the county or district, he or she contributes what he or she would have paid to the fund based on his or her compensation earnable as defined by Section or pensionable compensation as defined in Section , whichever is applicable, at the time of the beginning of the absence together with regular interest thereon. 8

9 Proposal 1 - Language (c) A member shall not receive service credit for any time that is the basis for present or future military retirement pay. Highlights: 1. Subsection (a) specifically complies with USERRA 2. Subsection (b) tracks current and Subsection (b) allows for interest instead of escalator clause in USERRA 4. Subsection (c) makes clear that the member cannot double dip 9

10 Proposal 2 - Methodology Amend Keep in amended form service that does not qualify for USERRA benefits Repeal , and

11 Proposal 2 - Language This chapter shall comply with the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) (38 U.S.C et. seq.) as amended from time to time. 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 for the time absent. 11

12 Proposal 2 - Language Any member who does not qualify for reemployment benefits pursuant to Section and who resigned, or obtained a leave of absence, to enter and did enter the Armed Forces of the United States on a voluntary or involuntary basis and returned to county service with the same employer within one year after separation therefrom, from the Armed Forces under honorable conditions, shall receive credit for service and prior service for all or any part of his or her the member s military service, if, before retirement from the county, he or she the member contributes what he or she the member would have paid to the fund based on his or her the member s compensation earnable pursuant to Section or pensionable compensation as defined in Section , whichever is applicable, at the time he or she the member resigned or received the leave of absence, together with regular interest thereon, and if, when he or she the member contributes, the military service is not a basis for present or future military retirement pay. 12

13 Proposal 2 Highlights: Keeps some of the numbering intact, but is that important? Accomplishes the same as Proposal 1 USERRA compliance Interest instead of escalator Similar to current and without the repetition Avoids double dipping 4/27/17 13

14 Where do we go from here? Work on final language Can bring this to the Leg. Committee any time SCERA will run the proposal to SACRS Lobbyists will find a sponsor But before any of this happens, do we have support or at least no opposition? 14