County Employees Retirement Law of 1937 (CERL) - sdcera

(3) To be subject to the provisions of this article, including the backward DROP
options contained in Sections 31778 to 31778.2, inclusive, but excluding the forward DROP
provisions contained in Sections 31771 to 31776.5, inclusive, and excluding the actuarial
equivalent DROP provisions contained in Section 31777.
(c) With respect to a bargaining unit whose members are described in Section 31470.4,
the county or district may, in the implementing ordinance, be subject only to the provisions of
this article as provided in paragraph (3) of subdivision (b).
(d) The program shall become operative with respect to all safety members of the system
on the date specified in the implementing ordinance.
(e) The implementing ordinance shall specify a period of time, which shall be at least
four years and not more than 10 years from the date of implementation, after which an initial
review of the program shall be conducted pursuant to Section 31779.
(Added by Stats. 2003, Ch. 897 (S.B. 274), Sec. 1)
§31770.4. Actuarial analysis of cost neutrality
(a) The board shall, upon the request of, and before adoption of, the implementing
ordinance by the county board of supervisors or governing board of the district, cause an
actuarial analysis to be conducted to determine whether the program, as proposed to be
adopted, will be cost neutral. A proposed program shall be deemed to be cost neutral if, based
on the applicable actuarial assumptions, it will not have a significant negative financial impact
on the members, employer, or the retirement system, as specified in subdivision (b).
(b) The actuarial analysis shall take into account the impact of the proposed program on
specific measures, including, but not limited to, employer contributions, the system’s actuarial
accrued liability, and the present value of benefits. A proposed program will not be deemed to
be cost neutral if there is any anticipated increase in any of these measures attributable to the
implementation of the program or if there is a decrease in the present value of benefits of more
than 3 percent attributable to the implementation of the program.
(c) The actuarial analysis shall identify all cost elements expected to change due to the
implementation of the program and shall include the impact of those changes. These may
include, but are not limited to, cost elements such as benefit payments, expected retirement
age, and the likelihood of termination or disability by those near retirement age. The analysis
may not take into account items unrelated to the proposed programs, including the investment
return on fund assets or the life expectancy of currently retired members.
(d) As used in this section:
(1) “Actuarial accrued liability” means the portion of the present value of benefits
attributable to service before the valuation date.
(2) “Present value of benefits” means the value, as of the valuation date, of all benefits
expected to be paid to current members of the system.
(Added by Stats. 2003, Ch. 897 (S.B. 274), Sec. 1)
§31770.5. Implementing ordinance; establishment of eligibility requirements
(a) The implementing ordinance shall establish the eligibility requirements for
participation in the program, subject to this section and the collective bargaining agreement.
The ordinance shall specify the minimum age and the minimum and maximum, if any, years
of service credit required to be eligible to participate in the program, which minimum and
maximum, if any, may not be less than the minimum age and service credit requirements for
service retirement.
(b) Members shall be eligible to elect to participate in the program at any time after
the attainment of the minimum age and years of credited service in the system specified
in the implementing ordinance. Members who satisfy the eligibility requirements on the
Article 11.5, §31770.3. - §31770.5. 290