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)
The following bills were signed into law and became effective January 1, 2010.

SB 54 - Family law: out-of-state same-sex marriages
This statute will codify existing case law which provides that the out-of-state marriage of a same-sex couple performed prior to November 5, 2008, is valid in California. The statute will also change California law to grant the same rights, protections, benefits and responsibilities granted to and imposed upon spouses to same-sex persons who are validly married out-of-state on or after November 5, 2008, with the sole exception of the designation of “marriage.”

For the purposes of providing SDCERA survivor benefits, a same-sex person whose marriage was validly performed in another state on any date will be eligible for the same benefits as a spouse. SDCERA will continue to recognize domestic partnerships registered in the State of California.

AB 1584—Former board member/employee post-employment restrictions and placement agents
This law affects placement agents and former pension board members and personnel. It extends the investment product marketing prohibition applicable to ‘37 Act systems to board members or employees of any public retirement system. It also imposes a two-year ban on former pension board members and personnel on appearing before the board for the purpose of influencing board action. The law mandates that a placement agent disclose gifts and campaign contributions to board members during the 24-month period prior to an investment and during the time the placement agent is receiving compensation in connection with an investment. The retirement board is required to implement a disclosure policy regarding the services of and payments to placement agents in connection with investments through external managers by June 30, 2010, and is prohibited from doing business with an external manager who does not agree in writing to comply with the policy.

Other law changes

Proposition 8—Elimination of same-sex marriage
Proposition 8 was approved by voters in November 2008 and affects SDCERA’s survivor benefits. For the purposes of providing SDCERA survivor benefits, a same-sex marriage conducted in California on or before November 4, 2008, is a valid marriage. However, unless a court, the Attorney General or the Board of Retirement makes a decision to the contrary, an out-of-state marriage certificate first submitted to SDCERA on or after November 5, 2008, cannot be honored regardless of the date of marriage. SDCERA will continue to recognize domestic partnerships registered with the Secretary of State of California.

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.