AB 2101 – Amends County Employees’ Retirement Law To Allow Purchased Service Credit After Parental Leave And Military Leave And Require Service Reinstatement For Terminated Employees Who Win Reinstatement On Appeal for Public Agencies

CATEGORY: Client Update for Public Agencies, Fire Watch, Law Enforcement Briefing Room
CLIENT TYPE: Public Employers, Public Safety
DATE: Oct 26, 2020

AB 2101 is an omnibus clean-up bill relating to the Public Employees’ Retirement Law (PERL), the Teachers’ Retirement Law (TRL), and the 1937 Act County Employees’ Retirement Law (CERL).

While AB 2101 makes numerous technical and conforming changes to the PERL and CERL, it substantively amends the CERL in the following three areas:

Parental Leave Credit:  Adds a new provision to the CERL allowing members of a county retirement system who return to active service following a period of unpaid parental leave to purchase service credit for the duration of the absence upon payment of the contributions they would have made during that period, with interest.

Military Leave Credit:  Adds a similar provision allowing members of a county retirement system to purchase service credit for an unpaid leave of absence for military service, consistent with the employee’s rights under the federal Uniformed Services Employment and Reemployment Rights Act of 1994, and repeals an older inconsistent provision.

Impact of Reinstatement Following Involuntary Termination:  Adds a provision stating that a person who takes a service retirement following an involuntary termination, and who is later reinstated to the same position pursuant to an administrative or judicial appeal, is reinstated from retirement as if there were no intervening period of retirement. Such a person is required to repay any retirement allowance earned during the period of retirement and is required to pay pension contributions on any award of back pay. This change makes the CERL consistent with the rules on this issue under the PERL.

(AB 2101 amends Sections 22106.2, 22119.5, 22144.3, 22156.1, 22170.5, 22501, 22509, 22711, 22714, 22717, 22718, 24204, 25025, 26113, 26801, 26803, 26804, 26808, 26810, and 27204 of, adds Sections 23011 and 26303.7 to, and repeals Section 22151 of the Education Code. It also amends Sections 20230, 20731, 22772, 22960.95, 22970.85, 31465, 31627.1, 31627.2, 31631.5, 31641.45, 31646, 31662.2, 31670, 31672, 31672.1, 31672.2, 31672.3, 31706, 31760.1, 31760.2, 31765, 31765.1, 31776.3, 31781.1, 31781.2, 31785, 31785.1, 31786, 31786.1, 31787, 31787.5, 31855.3, and 75088.3 of, adds Sections 31454.7 and 31680.10 to, repeals Sections 31649.5, 31649.6, 31650, and 31651 of, and repeals and adds Section 31649 of the Government Code.)