FROM: Amy McInerny, Chief Financial Officer
SUBJECT: Update to Benefits Policy No. 009 (Retiree Payroll Deductions and the Assignment of Benefits)
RECOMMENDATION:
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Approve updates to Benefits Policy No. 009 (Retiree Payroll Deductions and the Assignment of Benefits).
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BACKGROUND:
Benefits Policy No. 009 (Retiree Payroll Deductions and the Assignment of Benefits) was last approved by the Board on September 5, 2013. This policy provides a list of approved payroll deductions that may be taken from retiree benefit payments.
California Government Code Section 31452 provides for a list of permitted deductions that a retirement system can allow for the following purposes:
(1) Paying premiums on any policy or certificate of group life insurance or group disability insurance issued by an admitted insurer.
(2) Paying premiums for a prepaid group medical or hospital service plan.
(3) Paying premiums for a vision care program or dental plan, approved by the board, for the benefit of the retired member or his or her dependents.
(4) Paying premiums on national service life insurance or United States government converted insurance.
(5) Payment for the purchase of shares in or the payment of money to any regularly chartered credit union.
(6) Payment to a charitable organization or a federally chartered veterans' organization that is approved by the board.
(7) Payments to a recognized retiree organization.
(8) Payment for the purchase of United States savings bonds.
(9) The payment of personal income taxes to the government of the United States or the State of California.
(10) Payment for any retiree benefit programs through the recognized retiree organization. The board may require that this payment be to a single party designated by the recognized retiree organization, either to itself or to a third-party administrator.
SBCERA has several legacy approved deductions which do not fall within those permitted by California Government Code Section 314...
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