(a)
(1)
Notwithstanding subdivision (b) of Section 31557, as of a date to be agreed upon by the county and the Sacramento Area Sewer District that is no earlier than the effective date of a resolution of the Board of Retirement of the Sacramento County Employees’ Retirement System consenting to membership of the successor entity’s employees, all employees of the county allocated exclusively to the successor entity shall be deemed to be employees of the
successor entity and all duties and obligations of the employment relationship shall be assumed by the successor entity. The status of each employee deemed to have become an employee of the successor entity pursuant to this section, with respect to membership in the retirement system, shall, in all respects, be as if the employee had remained a member of the retirement system without any break in service or change of employer.
(2)
The successor entity shall be deemed to be a “district” as defined in this chapter, and shall, in all respects, assume all of the rights, obligations, and status previously occupied by the county, with regard to the county sanitation plan, as a participating district in the retirement system, including, but not limited, to all of the following:
(A)
The payment of employer contributions.
(B)
The payment of unfunded actuarial liability, including unfunded actuarial liability accrued as a result of all service rendered before separation from county employment as determined by the Sacramento County Employees’ Retirement System.
(C)
The withholding of employee contributions.
(D)
The reporting of compensation earnable and pensionable compensation.
(E)
Record retention and audit compliance.
(F)
The enrollment of eligible employees in membership.
(G)
Compliance with restrictions on the employment of retired persons.
(H)
The pickup of employee contributions pursuant to Section 414(h)(2) of the Internal
Revenue Code and any agreement or resolution implementing that section.
(3)
The successor entity shall assume all rights, duties, obligations, and liabilities related to the county sanitation plan with respect to all legacy benefit formulae provided to county employees and shall be eligible to continue all available benefits, including all default and optional benefit provisions provided to county employees and in effect at the time of the transfer of rights, duties, and obligations to the successor entity, without interruption, effective as of a date to be agreed upon by the county and the successor entity.
(b)
The successor entity shall assume the prior obligations of the county
sanitation plan for the payment of unfunded actuarial liability, which shall continue to be included in contribution rates calculated and approved pursuant to this chapter, including, but not limited to, Sections 31453, 31453.5, 31454, 31454.7, 31581, 31585, and 31586, as if no change in the participating employer had occurred.
(c)
The successor entity shall succeed to the rights, duties, and obligations of the county sanitation plan with respect to the following:
(1)
The replacement benefits program pursuant to Chapter 3.9 (commencing with Section 31899). The rights of each retirement system member to participate in the replacement benefits program, as those rights exist at the time of the transfer of rights, duties, and obligations to the successor entity, whether the member is actively employed, deferred, or retired, shall continue as if there had been no change in the status
of the employer. The transfer of rights, duties, and responsibilities, and documentation thereof as may be required by the Internal Revenue Code, shall not be deemed to be the creation of a new replacement benefit program, and the continuation of employees’ rights pursuant to the operation of this section shall not be deemed the offering of a new plan to any employee, for purposes of Section 7522.43 and subdivision (c) of Section 31899.
(2)
All benefit provisions, including optional benefits, within the County Employees Retirement Law of 1937 or the Public Employees’ Pension Reform Act of 2013, as those rights exist at the time of the transfer of rights, duties, and obligations to the successor entity, whether the member is actively employed, deferred, withdrawn and redeposits, or retired, shall continue as if there had been no change in the status of the employer.
(d)
(1)
The successor entity will continue to receive the benefits for excess contributions, including proceeds of pension obligation bonds, that the county paid to the Sacramento County Employees’ Retirement System before the date that the successor entity assumes all rights, duties,
obligations, and liabilities related to the county sanitation plan through the Sacramento County Employees’ Retirement System, as if no change in the participating employer had occurred.
(2)
Debt payment obligations and any previous agreements related to the pension obligation bonds between the county and the Sacramento Area Sewer District shall be transferred to the successor entity to be resolved by the successor entity, independent of the Sacramento County Employees’ Retirement System.
