CHAPTER 2. Administration of System

Chapter 2 added by Stats. 1995, Ch. 379, Sec. 2.

§§ 20090–20260 · 97 sections

1. ARTICLE 1. The Board of Administration §§ 20090–20100 · 14 sections

   • § 20090 The Board of Administration of the Public Employees’ Retirement System is continued in existence. It consists of: (a) One member of the State Personnel Board,…
   • § 20090.1 (a) Notwithstanding any other provision of law to the contrary, the member of the board who is an elected official of a contracting agency appointed by the…
   • § 20091 The members of the board appointed by the Governor pursuant to subdivision (e) of Section 20090, the public member appointed jointly by the Senate Committee on…
   • § 20092 Each employing agency that employs an elected member of the board shall be reimbursed by the retirement fund in an amount equal to the salary and benefits paid…
   • § 20093 The members of the board shall serve without compensation, but shall be reimbursed for actual and necessary expenses incurred through service on the board.
   • § 20094 The counsel to the board shall notify each new member of the board upon his or her assumption of office and each member of the board annually that he or she is…
   • § 20095 The term of office of members of the board is four years expiring on January 15 in the order fixed by law. The board shall hold special elections to fill…
   • § 20096 The board shall cause ballots to be distributed to each active and retired member of the system in advance of each election, and shall provide for the return…
   • § 20096.3 If an incumbent member of the board, holding a board seat described in subdivision (g) of Section 20090, does not deliver his or her completed nomination…
   • § 20096.5 Candidates for board seats described in subdivision (g) of Section 20090, including incumbent board members running for reelection, shall file campaign…
   • § 20097 The board shall maintain its office in the City of Sacramento. A quorum of the board is seven members. The board shall elect a president from its membership.
   • § 20098 (a) The board shall appoint and, notwithstanding Sections 19825, 19826, 19829, and 19832, shall fix the compensation of an executive officer, a general…
   • § 20099 The board may appoint a committee of one or more of its members to perform any act within the power of the board itself to perform. The board may also delegate…
   • § 20100 The board shall adopt a policy for providing education to board members. The policy, at a minimum, shall do the following: (a) Identify appropriate topics for…
2. ARTICLE 2. Powers and Duties of the Board §§ 20120–20140 · 20 sections

   • § 20120 The management and control of this system is vested in the board.
   • § 20121 The board may make such rules as it deems proper.
   • § 20122 Each member and each person retired is subject to this part and the rules adopted by the board.
   • § 20123 Subject to this part and its rules, the board shall determine and may modify benefits for service and disability.
   • § 20124 The board shall adjust the payment of benefits payable pursuant to this part, as necessary, in order to maximize the benefits available to members who are…
   • § 20125 The board shall determine who are employees and is the sole judge of the conditions under which persons may be admitted to and continue to receive benefits…
   • § 20126 Refusal by this system to admit liability pursuant to any provision of this part shall not be considered arbitrary or capricious action or conduct within the…
   • § 20127 The board may require a member to provide evidence of his or her entitlement to benefits under the federal system.
   • § 20128 Notwithstanding any other provision of law, the board may require a member or beneficiary to provide information it deems necessary to determine this system’s…
   • § 20129 The board shall secure and pay reasonable compensation for medical service and advice necessary to discharge its duties respecting matters involving disability…
   • § 20130 The board may enter into an agreement with the State Compensation Insurance Fund under which the latter shall represent this system, as its agent, or the…
   • § 20131 The board shall keep in convenient form data necessary for the actuarial valuation of this system.
   • § 20132 (a) Upon the basis of any investigation, valuation, or determination, or all of these, the board shall adopt mortality, service and other tables and annual and…
   • § 20133 As of June 30, 1991, and thereafter at the end of periods not to exceed four years, the actuary shall make an actuarial investigation into the mortality,…
   • § 20134 The board may, in its discretion, hold a hearing for the purpose of determining any question presented to it involving any right, benefit, or obligation of a…
   • § 20135 To the extent possible, the board shall resolve conflicts between retirement systems applicable to state hospital employees transferred to county or local…
   • § 20136 (a) Commencing March 1, 2023, and annually thereafter, the board shall submit a report to the Legislature on the status of achieving appropriate objectives and…
   • § 20138 (a) Notwithstanding any other provisions of law, the board shall provide by rule for conducting education, including, but not limited to, structured…
   • § 20139 The board shall have the power to administer funds in the California Secure Choice Retirement Savings Trust pursuant to a contract with the California Secure…
   • § 20140 (a) The board shall require fingerprint images and related information from any employee or prospective employee while a conditional offer is still pending…
3. ARTICLE 3. Fiduciary Duties §§ 20150–20153 · 5 sections

   • § 20150 A board member or employee of the board shall not, directly or indirectly: (a) Have any interest in the making of any investment, or in the gains or profits…
   • § 20151 The board and its officers and employees shall discharge their duties with respect to this system solely in the interest of the participants and beneficiaries:…
   • § 20152 Notwithstanding Section 13340, there is hereby continuously appropriated, without regard to fiscal years, from the retirement fund to the board, the amount…
   • § 20152.5 No matter involving any vendor or contractor in their individual or any other capacity shall be considered during a closed session on any transaction involving…
   • § 20153 (a) During the process leading to an award of any contract by the system, no member of the board or its staff shall knowingly communicate concerning any matter…
4. ARTICLE 4. Correction of Errors and Omissions §§ 20160–20164.5 · 5 sections

   • § 20160 (a) Subject to subdivisions (c) and (d), the board may, in its discretion and upon any terms it deems just, correct the errors or omissions of any active or…
   • § 20161 Notwithstanding any other provision of this part or of Section 12438 or 16302.1 to the contrary, the following shall apply: (a) When there has been a payment…
   • § 20163 (a) If more or less than the correct amount of contribution required of members, the state, or any contracting agency, is paid, proper adjustment shall be made…
   • § 20164 (a) The obligations of this system to its members continue throughout their respective memberships, and the obligations of this system to and in respect to…
   • § 20164.5 (a) For purposes of this section, “disallowed compensation” means compensation reported for a member by the state, school employer, or a contracting agency…
5. ARTICLE 5. The Retirement Fund §§ 20170–20178 · 9 sections

   • § 20170 The Public Employees’ Retirement Fund in the State Treasury is continued in existence. The Public Employees’ Retirement Fund is a trust fund created, and…
   • § 20171 The board has the exclusive control of the administration and investment of the retirement fund.
   • § 20172 Notwithstanding any other provision of law, the board may retain a bank or trust company to serve as custodian for safekeeping, delivery, securities valuation,…
   • § 20173 Costs of administration of this system shall be paid from funds appropriated for interest income from the retirement fund.
   • § 20174 Interest earned on any cash deposit in a bank by the Treasurer and income on other assets constituting a part of the fund shall be credited to the fund as…
   • § 20175 Notwithstanding any other provision of law, funds in the reserve against deficiencies shall not be used to pay any employers’ contribution required by this…
   • § 20176 Notwithstanding any other provision of law, no funds in the retirement fund shall be expended for any purpose other than the cost of administration of this…
   • § 20177 The board shall deposit monthly in the State Treasury to the credit of the retirement fund all amounts received by it under this part.
   • § 20178 (a) The board shall credit all contributions of members in the retirement fund with interest at an interest crediting rate of 6 percent compounded at each June…
6. ARTICLE 6. Investments §§ 20190–20210 · 20 sections

   • § 20190 The board has exclusive control of the investment of the retirement fund. Except as otherwise restricted by the California Constitution and by law, the board…
   • § 20191 The board may itself make any investment authorized by law or sell any security, obligation, or real property in which moneys in the retirement fund are…
   • § 20191.5 (a) All investment transaction decisions made during a closed session pursuant to paragraph (16) of subdivision (c) of Section 11126 shall be by rollcall vote…
   • § 20192 In addition to the other investments authorized by this article, the board may invest in real estate and leases thereof and improvements thereon for business…
   • § 20193 The board may invest the money in the retirement fund in real property or improvements thereon or to be constructed thereon when the real property or…
   • § 20194.5 In addition to the other investments authorized by this article, the board may invest in Property Assessed Clean Energy (PACE) bonds, as defined in Section…
   • § 20195 (a) The board may select, purchase, or acquire in the name of the system, the fee or any lesser interest in real property, improved or unimproved, and may…
   • § 20196 The board may contract with the Department of General Services or any other state department for assistance and supervision in the acquisition of real property…
   • § 20197 All buildings and improvements constructed by the board under this article may contain space in excess of the immediate requirements of the board that, until…
   • § 20198 Any building or improvement constructed by the board under this article shall be subject to the supervision of the board in accordance with rules and…
   • § 20199 The board shall establish a building account for the transfer of money that is continuously appropriated for that purpose from the retirement fund for the cost…
   • § 20200 (a) Notwithstanding any other provision of law, the board may establish a program utilizing the retirement fund to assist system members, through financing, to…
   • § 20201 (a) It is the intent of the Legislature that the provisions of this section be available to assist members in obtaining homes throughout the United States. The…
   • § 20202 The board may, subject to and consistent with its fiduciary duty, establish a program utilizing the retirement fund to assist currently employed members and…
   • § 20203 Notwithstanding any other law, the board may enter into security loan agreements with respect to securities in which the board is authorized by law to invest…
   • § 20206 The board shall employ investment counsel on its staff or on a consulting basis or trust companies or trust departments of bands to render service in…
   • § 20207 (a) The Legislature finds and declares that changing economic conditions and increasing complexity in the investment market make it necessary and desirable…
   • § 20208 Upon a finding by the board that necessary investment expertise is not available within existing civil service classifications, and with the approval of the…
   • § 20209 The board shall, pursuant to the state civil service statutes, either contract with, or establish and fill a full-time position for, a person who is…
   • § 20210 Notwithstanding any other provision of law, the board shall, by contract, retain not less than two separate individual investment advisers. There is hereby…
7. ARTICLE 7. Records and Reports §§ 20220–20236 · 17 sections

   • § 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…
   • § 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…
   • § 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…
   • § 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…
   • § 20222.5 (a) The board may, during the course of an audit, require each state employer, school employer, including each school district represented by a school…
   • § 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…
   • § 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…
   • § 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…
   • § 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…
   • § 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…
   • § 20229 (a) The board, notwithstanding Section 10231.5, shall provide the Legislature, the Governor, and the Chair of the California Actuarial Advisory Panel,…
   • § 20230 (a) Data filed with the board by or on behalf of any member, retired member, beneficiary, or annuitant is confidential, and an individual record shall not be…
   • § 20231 Notwithstanding any other provision of law, the Employment Development Department shall disclose to the board information in its possession relating to the…
   • § 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…
   • § 20235 (a) The board shall submit a review of this system’s assets to the Legislature on a semiannual basis. The report shall also be made available to all…
   • § 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…
8. ARTICLE 8. Subrogation §§ 20250–20255 · 6 sections

   • § 20250 The provisions of this article shall be deemed to create a right of subrogation only to amounts paid as disability retirement allowances and special death…
   • § 20251 As used in this article, “state fund” means the State Compensation Insurance Fund.
   • § 20252 If benefits are payable under this part because of an injury to or the death of a member and the injury or death is the proximate consequence of the act of a…
   • § 20253 The board may contract with the state fund or the Attorney General for the recovery on behalf of this system of any amounts that the board might recover from…
   • § 20254 Any amount recovered by way of subrogation by the employer, workers’ compensation insurer or this system shall be applied first to the amounts that the…
   • § 20255 Actions brought by the board under this article shall be commenced within three years after the liability of this system to pay benefits is fixed. Liability of…
9. ARTICLE 9. Validation of Prior Acts § 20260 · 1 section

   • § 20260 All computations, payments, and other acts heretofore made or done by the board or its officers and employees are hereby ratified, confirmed, and validated.