SB 939: Public employees’ retirement: service credit: payments.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

(1)The Public Employees’ Retirement Law (PERL) creates the Public Employees’ Retirement System (PERS), which provides a defined benefit to members of the system based on final compensation, credited service, and age at retirement, subject to certain variations. PERL vests management and control of PERS in the Board of Administration.

Under that law, members may make certain elections, including elections to purchase service credit for various types of public service, upon payment of additional contributions. Existing law permits a member who retires before paying off the entire amount for service credit to pay the balance due by deductions from their retirement allowance equal to those authorized as payroll deductions, as specified. Under existing law, upon the death of that member, a survivor of the member, who is eligible for a monthly allowance, may elect to continue those deductions from the survivor’s allowance. Existing law authorizes the member, survivor, or beneficiary, as an alternative, on or after January 1, 2020, to elect to receive an allowance that is reduced by the actuarial equivalent of any balance remaining unpaid by the member.

This bill would limit that alternative option to elections made on or after January 1, 2020, with an initial effective date prior to January 1, 2028.

(2)Existing law provides that all elections taking effect on or after January 1, 2020, including elections for normal contributions, arrears contributions, absences, or public service become due and payable at the time of the member’s retirement or preretirement death.

This bill would require, for all elections with an effective date on or after January 1, 2028, except as specified, the member’s payment to be received by the system no later than 90 days after the member’s retirement effective date, or the survivor or beneficiary’s payment to be received by the system no later than 90 days after the date the notification of balance due is mailed. For any balance not paid, the service credit included in the election would be reduced or eliminated, as specified.

This bill would also require all contributions or service credit adjustments required by law or agreement with an effective date on or after January 1, 2028, to become due and payable at the time of retirement or preretirement death. The bill would require the member, survivor, or beneficiary to have their allowance reduced by the actuarial equivalent of any balance remaining unpaid by the member.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. August 17, 2026Chaptered by Secretary of State. Chapter 110, Statutes of 2026.
2. August 17, 2026Approved by the Governor.
3. August 11, 2026Enrolled and presented to the Governor at 3 p.m.
4. August 6, 2026In Senate. Ordered to engrossing and enrolling.
5. August 6, 2026Read third time. Passed. (Ayes 74. Noes 1. Page 6078.) Ordered to the Senate.
6. June 25, 2026Read second time. Ordered to third reading.
7. June 24, 2026From committee: Do pass. (Ayes 15. Noes 0.) (June 24).
8. June 10, 2026From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (June 10). Re-referred to Com. on APPR.
9. May 11, 2026Referred to Com. on P. E. & R.
10. April 23, 2026In Assembly. Read first time. Held at Desk.
11. April 23, 2026Read third time. Passed. (Ayes 37. Noes 0. Page 4034.) Ordered to the Assembly.
12. April 21, 2026Read second time. Ordered to consent calendar.