FROM: Barbara Hannah, Chief Counsel
SUBJECT: SBCERA By-Laws
RECOMMENDATION:
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Approve and adopt proposed amendments to the SBCERA By-Laws
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BACKGROUND:
The Board last approved amendments to the SBCERA By-Laws on June 3, 2021.
The proposed amendments refine and clarify the requirements for employee membership eligibility and participating employer obligations. These amendments will enhance compliance with federal tax laws and ensure the integrity of SBCERA membership criteria.
Proposed Amendments
1. Article III. Section (1) - Required Reporting of Employees
In accordance with Government Code section 31526, SBCERA's By-Laws permits SBCERA to require an SBCERA Participating Employer to submit employee/member information (personally identifiable information, including reported contributions) to SBCERA in a form prescribed by SBCERA. This employer requirement to provide the necessary information is already included in the current By-Laws.
The proposed amendment removes the requirement to submit a membership enrollment affidavit and instead focuses on ensuring that an SBCERA Participating Employer furnishes this information to SBCERA. The amendment aligns with the SBCERA's Employer Reporting Initiative, which aims to standardize the data reporting to ensure that employee/member information received from the employer is complete, timely, and accurate.
2. Article III. Section (2)(b) - Included in SBCERA Membership - Regular Members
The proposed amendment is necessary to ensure that SBCERA membership is limited to employees/members who meet the legal and IRS regulatory requirements for participation. By clearly defining the eligibility criteria, the amendment helps prevent unauthorized enrollments, ensures compliance with SBCERA governing laws, and protects SBCERA tax-qualified status. The proposed amendment specifies that for an employee to qualify for SBCERA membership, they must:
* Hold a regular position with an SBCERA partic...
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