AB 1821 Summary

• Consolidates assets and liabilities of contracting agencies subject to 1959 survivor allowance provisions into a single pooled account effective July 1, 2011, establishing a single employer contribution rate for all such agencies.

• Increases 1959 survivor allowance benefit amounts under Section 21573, effective July 1, 2011, providing survivors with $700-$840 monthly for spouses with children (compared to previous $360-$430) and $350 monthly for other beneficiaries.

• Eliminates provisions allowing contracting agencies to reduce contribution rates based on account surpluses or increase rates based on account deficits at the time of initial pooling.

• Authorizes waiver of the additional $2 monthly member contribution when the pooled account surplus exceeds 200% of total liabilities and the board determines reasonable actuarial amortization exists for benefits.

• Directs members of contracting agencies previously covered under Sections 21571 and 21572 to receive benefits under Section 21573 after June 30, 2011.