SB 1402 – Revises A Member’s Eligibility To Receive Credit For Specified Military Or Merchant Marine Service

Existing law authorizes a member of STRS to receive credible service for certain types of service outside the system, including military services and distinguishes in this regard between service performed before membership and after becoming a member. Existing law authorizes a member who is a state employee, or a retired member who retired immediately following service as a state employee, to receive credit for specified military or Merchant Marine service occurring prior to membership and prescribes requirements and limits in this connection.  Existing law requires the member contribute sufficient funds to cover the total cost of military service credit. Existing law limits the application of this authorization to receive pre-membership service credit to specified service in the Armed Forces of the United States or in the Merchant Marine of the United States prior to January 1, 1950.

SB 1402 amends the existing law by eliminating the provision that the service occurred prior to January 1, 1950. This provision does not apply to the following members receiving:

• Military retirement pay is based on 20 or more years of active duty with the Armed Forces of the United States, except for credit toward military retirement pay that is earned by a combination of active duty and nonactive duty with a reserve component of the Armed Forces of the United States and where the retirement pay is payable only upon the attainment of a specified age.
• Disability retirement pay is paid by one of the Armed Forces of the United States, except for a member who is receiving disability compensation from the Veterans Administration and is not receiving retirement pay from one of the Armed Forces of the United States.
• The member received or is eligible for credit for the same service or time in the Cash Benefits Program or in another public retirement system.

The bill also eliminates the requirement that the electing member is a state employee or a retired member who retired immediately following service as a state employee.

This bill makes the same revisions to PERS, except under PERS the authorization only applies to agencies contracting with PERS if the agency elects to amend its contract. SB 1402 requires that the contracting agencies provide members the option to receive the public service credit for specified service in the Armed Forces of the United States or in the Merchant Marine of the United States.

(SB 1402 amends Section 22806 of the Education Code, and amends Sections 21024, 21027, and 21029 of the Government Code.)