SDCERA’s legislation section helps to keep you informed about recently proposed, chaptered, adopted and vetoed legislation that may have an impact on your retirement benefits. For the most current details on these or other bills, click the link to California’s legislative information web site.

Bills chaptered (signed into law)

AB 246—Retirement board members selling investment products
This law prohibits any current or future Board member or employee from selling or providing any investment product that would be considered an asset of the retirement fund to any '37 Act retirement system.

AB 775—Retiree reemployment
SDCERA retirees may work for the County of San Diego up to 120 working days or 960 hours, whichever is greater, in a fiscal year without interruption of their retirement benefits. This new law, which becomes effective January 1, 2008, prohibits these retirees from working for the County if they have received unemployment insurance payments within the last 12 months as a result of previous County employment. Beginning in 2008, retirees who work in violation of this law will be required to terminate County employment on the last day of the current pay period and will not be able to reemploy with the County for a period of 12 months.

AB 1288—Vision care
This new law establishes the County Retirement System Vision Care Program for purposes of providing vision care benefits to county and district retirees and their dependents, at retiree expense. The law permits the sponsor of the vision care program contract with a their-party administrator to provide vision care to the retired member, his or her survivors and his or her eligible dependents.

Federal legislation

Pension Protection Act—Health exclusion for Public Safety Officers
Beginning with the 2007 tax year, certain retired safety officers (as defined by the IRS) can elect to exclude up to $3,000 from income distributions made from SDCERA directly to an insurance provider to pay premiums for accident or health insurance, or long-term care insurance.

For more information, refer to the 1040 instruction booklet or IRS publication 575, which are both available at www.irs.gov/formspubs. SDCERA cannot give tax advice; members should discuss this new exclusion with a tax professional.