Bill Text: CA SB1220 | 2013-2014 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: State teachers' retirement.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2014-09-28 - Chaptered by Secretary of State. Chapter 755, Statutes of 2014. [SB1220 Detail]
Download: California-2013-SB1220-Introduced.html
Bill Title: State teachers' retirement.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2014-09-28 - Chaptered by Secretary of State. Chapter 755, Statutes of 2014. [SB1220 Detail]
Download: California-2013-SB1220-Introduced.html
BILL NUMBER: SB 1220 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Torres
FEBRUARY 20, 2014
An act to amend Sections 22109.5, 22119.5, 22119.3, 22121, 22131,
22134, 22134.5, 22135, 22136, 22516, 22655, 22662, 22663, 22664,
22801, 22826, 22828, 22905, 23104, 24001, 24101, 24105, 24107,
24201.5, 24203.5, 24203.6, 24204, 24205, 24210, 24211, 24212, 24213,
24214.5, 24300, 24300.1, 24307, 24309, 24402, 24412, 24415, 24600,
25015, 26113, 26803, 27201, and 33050 of, to amend and renumber
Sections 22106.2, 24300.2, 24300.5, 24300.6, 24301, 24302, 24303,
24304, 24305, 24305.5, 24306, 24306.5, 24306.7, 24308, 24311, 24312,
24312.1, and 24313 of, to amend, renumber, and add Section 22106.1
of, to amend and repeal Section 22119.5 of, to amend, renumber, and
repeal Section 24305.3 of, and to add Section 24348 to, the Education
Code, and to amend Section 1 of Chapter 559 of the Statutes of 2013,
relating to state teachers' retirement.
LEGISLATIVE COUNSEL'S DIGEST
SB 1220, as introduced, Torres. State teachers' retirement.
Existing law, the Teachers' Retirement Law, establishes the State
Teachers' Retirement System (STRS) and creates the Defined Benefit
Program of the State Teachers' Retirement Plan, which provides a
defined benefit to members of the program, based on final
compensation, credited service, and age at retirement, subject to
certain variations. STRS is administered by the Teachers' Retirement
Board. Existing law establishes the Supplemental Benefit Maintenance
Account, among other provisions, for the purpose of restoring the
purchasing power of allowances. Existing law establishes the Defined
Benefit Supplement Program to provide additional benefits to members
of the Defined Benefit Program. Existing law establishes the Cash
Balance Benefit Program, administered by the Teachers' Retirement
Board, as a separate benefit program within the State Teachers'
Retirement Plan in order to provide a retirement plan for persons
employed to perform creditable service for less than 50% of full-time
service. Existing law permits a member of STRS to purchase service
credit in certain instances and permits a person who has withdrawn
membership in STRS to become a member again upon redeposit of
contributions plus interest, as specified. Existing law permits a
member of STRS to select among various options for the payment of
benefits after the retired member dies, provides certain presumptions
in this regard, and permits a member to revise a beneficiary
designation pursuant to specific requirements and limitations. The
Public Employees' Pension Reform Act of 2013 (PEPRA) requires a
public retirement system, as defined, to modify its plan or plans to
comply with the act and, among other things, sets limits on the
amount of compensation that may be used to calculate benefits.
This bill would amend the Teachers' Retirement Law to provide a
definition of base allowance for the purpose of determining specified
supplemental benefits and revise the definition of a break in
service to account for certain times not recognized as part of the
school year. The bill would revise the definition of credited service
to account for members whose contributions have been reduced because
of PEPRA and would revise the definition of final compensation to
account for the calculation of service based on months rather than
years. The bill would make conforming changes in how member
contributions are credited to reflect reductions applied when
payments are determined to have been paid to enhance a member's
benefits. The bill would make various technical changes regarding
disability allowances, disability retirements, and service
retirements following disability retirements. The bill would revise
and reorganize provisions relating a member's right to elect among
various options to provide an actuarially modified retirement
allowance payable during the life of the member and the member's
chosen beneficiary or beneficiaries, particularly with regard to the
election of a new beneficiary after the member's retirement when the
previous beneficiary has predeceased the member. The bill would grant
a member who had retired and elected a specified option and
designated his or her same-sex spouse as the option beneficiary the
right to elect to change his or her option subject to specified
requirements. The bill would make numerous technical and conforming
changes.
Existing law permits a governing board of a school district or a
county board of education to request the State Board of Education
waive provisions of the Education Code, but excepts from that
authorization specified provisions, including provisions of the
Teachers' Retirement Law relating to STRS.
This bill would also except from this authorization provisions of
the Teachers' Retirement Law relating to the health care benefits
program and the cash benefit program.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 22106.1 of the Education Code is amended and
renumbered to read:
22106.1. 22106.2. "Base days" means
the number of days of creditable service required to earn one year
of service credit.
SEC. 2. Section 22106.1 is added to the Education Code, to read:
22106.1. For the purposes of determining supplemental benefits
pursuant to Sections 24412 and 24415, "base allowance" means a member'
s monthly allowance under the Defined Benefit Program prior to all
allowance increases by this part and after modification for an
option, if applicable.
SEC. 3. Section 22106.2 of the Education Code is amended and
renumbered to read:
22106.2. 22106.3. "Base hours"
means the number of hours of creditable service required to earn one
year of service credit.
SEC. 4. Section 22109.5 of the Education Code is amended to read:
22109.5. "Break in service," for purposes of determining a member'
s final compensation, means:
(a) With respect to service of a member employed as a full-time
employee and service performed by a member employed as a part-time
employee, any period of time covering a pay period during which a
member is on an unpaid leave of absence or a pay period in which a
member has not performed any creditable service.
(b) For a member who has been employed in a substitute position:
(1) And has a change in assignment during a school year to a
full-time or part-time position, a break in service is determined on
the same basis as for the full-time or part-time employment during
the same school year.
(2) For less than 50 percent of their teaching career for which
service is credited, a break in service is determined on the same
basis as full-time employment.
(3) For more than 50 percent of their teaching career for which
service is credited, a break in service is any period of time within
a school year for which compensation is not paid and service is not
credited.
(c) If a member commenced performing service at the beginning of a
school term, July and August the months not
recognized as part of the school year
term are not a break in service; however, if the member
commenced performing service after the school term begins
began, or did not complete the school term , the
previous July and August months not
recognized as part of the school term are a break in service.
The school term shall be no less than the days or hours
specified as full time in Section 22138.5.
(d) Earnable salaries for a full pay period, but not beyond the
effective date of retirement, shall be used in determining final
compensation when the member performed service within that pay
period.
SEC. 5. Section 22119.3 of the Education Code is amended to read:
22119.3. (a) "Creditable compensation" for members who are
subject to the California Public Employees' Pension Reform Act of
2013 means remuneration that is paid each pay period in which
creditable service is performed for that position. Creditable
compensation shall be paid in cash by an employer to all persons in
the same class of employees in accordance with a publicly available
written contractual agreement, including, but not limited to, a
salary schedule or employment agreement. Creditable compensation
shall include:
(1) Remuneration that is paid for the use of sick leave, vacation,
and other employer-approved leave, except as provided in paragraph
(4) of subdivision (b).
(2) Member contributions that are picked up by an employer
pursuant to Section 22903 or 22904.
(3) Amounts that are deducted from a member's remuneration,
including, but not limited to, deductions for participation in a
deferred compensation plan; deductions to purchase an annuity
contract, tax-deferred retirement plan, or insurance program; and
contributions to a plan that meets the requirements of Section 125,
401(a), 401(k), 403(b), 457(b), or 457(f) of Title 26 of the United
States Code.
(4) Notwithstanding paragraphs (6) and (8) of subdivision (c) of
Section 7522.34 of the Government Code, remuneration that is paid for
creditable service that exceeds one year in a school year.
(b) "Creditable compensation" does not mean and shall not include:
(1) Remuneration that is not paid in cash or is not paid to all
persons who are in the same class of employees.
(2) Remuneration that is paid for service that is not creditable
service pursuant to Section 22119.5.
(3) Remuneration that is not paid each pay period in which
creditable service is performed for that position.
(4) Remuneration that is paid in exchange for the relinquishment
of unused accumulated leave.
(5) Payments, including, but not limited to, those for
participation in a deferred compensation plan; to purchase an annuity
contract, tax-deferred retirement plan, or insurance program; and
for contributions to a plan that meets the requirements of Section
125, 401(a), 401(k), 403(b), 457(b), or 457(f) of Title 26 of the
United States Code when the cost is covered by an employer.
(6) Fringe benefits provided by an employer.
(7) Expenses paid or reimbursed by an employer.
(8) Severance pay, including lump-sum and installment payments, or
money paid in excess of salary or wages to a member as compensatory
damages or as a compromise settlement.
(9) Creditable compensation determined by the system to have been
paid to enhance a member's benefit.
(10) Compensation paid to the member in lieu of benefits provided
to the member by the employer or paid directly by the employer to a
third party other than the system for the benefit of the member.
(11) Any one-time or ad hoc payments made to a member.
(12) Any employer-provided allowance, reimbursement, or payment,
including, but not limited to, one made for housing, vehicle, or
uniform.
(13) Any bonus paid in addition to compensation described in
subdivision (a).
(14) Any other payments the board determines not to be "creditable
compensation."
(c) (1) Except for purposes of calculating credited service in the
Defined Benefit Program and for reporting compensation earnable on
or after January 1, 2013, creditable compensation in any fiscal year
shall not exceed:
(A) One hundred twenty percent of the "contribution and benefit
base," as determined under Section 430(b) of the Social Security Act
(42 U.S.C. Sec. 430(b)), on January 1, 2013, for a member whose
service is not included in the federal system.
(B) One hundred percent of the "contribution and benefit base," as
determined under Section 430(b) of the Social Security Act (42
U.S.C. Sec. 430(b)), on January 1, 2013, for a member whose service
is included in the federal system pursuant to any changes in state or
federal law enacted on or after January 1, 2013.
(2) The system shall adjust the limit in paragraph (1) based on
the annual changes to the Consumer Price Index for All Urban
Consumers: U.S. City Average, calculated by dividing the
Consumer Price Index for All Urban Consumers: U.S. City
Average for the month of February in the fiscal year preceding the
adjustment by the Consumer Price Index for All Urban Consumers:
U.S. City Average for the month of February of the previous
year rounded to the nearest thousandth. Notwithstanding paragraph (1)
of subdivision (d) of Section 7522.10 of the Government Code, the
adjustment shall be effective annually on July 1, beginning July 1,
2014.
(3) The Legislature reserves the right to modify the requirements
of this subdivision with regard to all members subject to this
subdivision, except that the Legislature may not modify these
provisions in a manner that would result in a decrease in benefits
accrued prior to the effective date of the modification.
(4) This subdivision shall apply to compensation paid during the
2013-14 fiscal year and each fiscal year thereafter.
(d) An employer or individual who knowingly or willfully reports
compensation in a manner inconsistent with subdivision (a) or (b) may
be subject to prosecution for fraud, theft, or embezzlement in
accordance with the Penal Code. The system may establish procedures
to ensure that compensation reported by an employer is in compliance
with this section.
(e) For purposes of this section, remuneration shall be considered
paid if distributed to any person in the same class of employees who
meets the qualifications or requirements specified in a publicly
available written contractual agreement, including, but not limited
to, a collective bargaining agreement or an employment agreement, as
a condition of receiving the remuneration.
(f) This definition of "creditable compensation" reflects sound
principles that support the integrity of the retirement fund. Those
principles include, but are not limited to, consistent treatment of
compensation throughout a member's career, consistent treatment of
compensation among an entire class of employees, consistent treatment
of compensation for the position, preventing adverse selection, and
excluding from creditable compensation remuneration that is paid to
enhance a member's benefits. The system shall determine the
appropriate crediting of contributions according to these principles,
to the extent not otherwise specified pursuant to this part. A
presumption by the system that creditable compensation was paid to
enhance the member's benefits may be rebutted by the member or by the
employer on behalf of the member. Upon receipt of sufficient
evidence to the contrary, a presumption by the system that creditable
compensation was paid to enhance the member's benefits may be
reversed.
SEC. 6. Section 22119.5 of the Education Code, as amended by
Section 1 of Chapter 375 of the Statutes of 2002, is amended to read:
22119.5. (a) "Creditable service" means any of the following
activities performed for an employer in a position requiring a
credential, certificate, or permit pursuant to this code ,
or under the appropriate minimum standards adopted by the Board of
Governors of the California Community Colleges , or under
the provisions of an approved charter for the operation of a charter
school for which the employer charter school
is eligible to receive state apportionment , or
pursuant to a contract between a community college district and the
United States Department of Defense to provide vocational training:
(1) The work of teachers, instructors, district interns, and
academic employees employed in the instructional program for pupils,
including special programs such as adult education, regional
occupation programs, child care centers, and prekindergarten programs
pursuant to Section 22161.
(2) Education or vocational counseling, guidance, and placement
services.
(3) The work of directors, coordinators, and assistant
administrators who plan courses of study to be used in California
public schools, or research connected with the evaluation or
efficiency of the instructional program.
(4) The selection, collection, preparation, classification,
demonstration, or evaluation of instructional materials of any course
of study for use in the development of the instructional program in
California public schools, or other services related to school
curriculum.
(5) The examination, selection, in-service training, or assignment
of teachers, principals or other similar personnel involved in the
instructional program.
(6) School activities related to, and an outgrowth of, the
instructional and guidance program of the school when performed in
addition to other activities described in this section.
(7) The work of nurses, physicians, speech therapists,
psychologists, audiometrists, audiologists, and other school health
professionals.
(8) Services as a school librarian.
(9) The work of employees who are responsible for the supervision
of persons or administration of the duties described in this section.
(b) "Creditable service" also means the work of superintendents of
California public schools.
(c) The board shall have final authority for determining
creditable service to cover any activities not already specified.
SEC. 7. Section 22119.5 of the Education Code, as added by Section
1 of Chapter 394 of the Statutes of 1995, is repealed.
22119.5. (a) "Creditable service" means any of the following
activities performed for an employer in a position requiring a
credential, certificate, or permit pursuant to this code or under the
appropriate minimum standards adopted by the Board of Governors of
the California Community Colleges or under the provisions of an
approved charter for the operation of a charter school for which the
employer is eligible to receive state apportionment:
(1) The work of teachers, instructors, district interns, and
academic employees employed in the instructional program for pupils,
including special programs such as adult education, regional
occupation programs, child care centers, and prekindergarten programs
pursuant to Section 22161.
(2) Education or vocational counseling, guidance, and placement
services.
(3) The work of directors, coordinators, and assistant
administrators who plan courses of study to be used in California
public schools, or research connected with the evaluation or
efficiency of the instructional program.
(4) The selection, collection, preparation, classification,
demonstration, or evaluation of instructional materials of any course
of study for use in the development of the instructional program in
California public schools, or other services related to school
curriculum.
(5) The examination, selection, in-service training, or assignment
of teachers, principals, or other similar personnel involved in the
instructional program.
(6) School activities related to, and an outgrowth of, the
instructional and guidance program of the school when performed in
addition to other activities described in this section within the
hours considered normal on a full-time basis for full-time employees
of the employer.
(7) The work of nurses, physicians, speech therapists,
psychologists, audiometrists, audiologists, and other supervised
employees in the school health program.
(8) Services as a school librarian.
(9) The work of county and district superintendents and other
employees who are responsible for the supervision of persons or
administration of the duties described in this section.
(b) The board shall have final authority for determining
creditable service to cover any activities not specified.
SEC. 8. Section 22121 of the Education Code is amended to read:
22121. (a) "Credited service" means service for which the
required contributions have been paid.
(b) "Credited service" for members who are subject to the
California Public Employees' Pension Reform Act of 2013 means service
for which required contributions have been paid and service for
which required contributions would have been paid in absence of the
limit established by subdivision (c) of Section 22119.3.
(b)
(c) "Credited service" for the limited purpose of
determining eligibility for benefits pursuant to Section 22134.5,
24203.5, or 24203.6 also includes up to two-tenths of one year of
service granted pursuant to Section 22717.
SEC. 9. Section 22131 of the Education Code is amended to read:
22131. "Employer" or "employing agency" means the state or any
agency or political subdivision thereof for which creditable service
subject to coverage by the plan is performed. In the case of a
joint powers authority, all entities included in the authority shall
be entities at which creditable service subject to coverage by the
plan is performed and each entity shall report through the same
county office of education.
SEC. 10. Section 22134 of the Education Code is amended to read:
22134. (a) "Final compensation" means the highest average annual
compensation earnable , as defined by Section 22115, by a
member during any period of three consecutive school years
36 consecutive months while an active member of
the Defined Benefit Program or time during which he or she was not a
member but for which the member has received credit under the Defined
Benefit Program, except time that was so credited for service
performed outside this state prior to July 1, 1944.
(b) For purposes of this section, periods of service separated by
breaks in service may be aggregated to constitute a period of
three consecutive years , if the periods of service are
consecutive except for the breaks.
(c) The determination of final compensation of a member who
has concurrent membership in any other retirement system
pursuant to Section 22115.2 is eligible for concurrent
retirement as defined in Section 22115.5 shall take into
consideration the compensation earnable while a member of any other
system, provided that both of the following exist:
(1) Service under any other system was not performed during the
same pay period with service under the Defined Benefit Program.
(2) Retirement under the Defined Benefit Program is concurrent
with the member's retirement under any other system pursuant to
Section 22115.5 .
(d) The compensation earnable for the first position in which
California service was credited shall be used when additional
compensation earnable is required to accumulate three
consecutive years for the purpose of determining final
compensation under Section 23805.
(e) If a member has received service credit for part-time service
performed prior to July 1, 1956, the member's final compensation
shall be adjusted for that service in excess of one year by the ratio
that part-time service bears to full-time service.
(f) The board may specify a different final compensation with
respect to disability allowances, disability retirement allowances,
family allowances, and children's portions of survivor benefit
allowances payable on and after January 1, 1978. The compensation
earnable for periods of part-time service shall be adjusted by the
ratio that part-time service bears to full-time service.
(g) The amendment of former Section 22127 made by Chapter 782 of
the Statutes of 1982 does not constitute a change in, but is
declaratory of, the existing law.
SEC. 11. Section 22134.5 of the Education Code is amended to read:
22134.5. (a) Notwithstanding Section 22134, "final compensation"
means the highest average annual compensation earnable , as
defined in Section 22115, by a member during any period of 12
consecutive months while an active member of the Defined Benefit
Program or time during which he or she was not a member but for which
the member has received credit under the Defined Benefit Program,
except time that was so credited for service performed outside this
state prior to July 1, 1944.
(b) For purposes of this section, periods of service separated by
breaks in service may be aggregated to constitute a period
of 12 consecutive months , if the periods of service are
consecutive except for the breaks.
(c) The determination of final compensation of a member who
has concurrent membership in any other retirement system
pursuant to Section 22115.2 is eligible for
concurrent retirement as defined in Section 22115.5 shall take
into consideration the compensation earnable while a member of any
other system, provided that both of the following exist:
(1) Service under any other system was not performed during the
same pay period with service under the Defined Benefit Program.
(2) Retirement under the Defined Benefit Program is concurrent
with the member's retirement under any other system pursuant to
Section 22115.5 .
(d) If a member has received service credit for part-time service
performed prior to July 1, 1956, the member's final compensation
shall be adjusted for that service in excess of one year by the ratio
that part-time service bears to full-time service.
(e) The board may specify a different final compensation with
respect to disability allowances, disability retirement allowances,
family allowances, and children's portions of survivor benefit
allowances payable on and after January 1, 1978. The compensation
earnable for periods of part-time service shall be adjusted by the
ratio that part-time service bears to full-time service.
(f) This section shall apply to the following:
(1) A member who has 25 or more years of credited service,
excluding service credited pursuant to the following:
(A) Section 22714.
(B) Section 22715.
(C) Section 22717, except as provided in subdivision (b) of
Section 22121.
(D) Section 22826.
(2) A nonmember spouse, if the member had 25 or more years of
credited service, as calculated in paragraph (1), on the date the
parties separated, as established in the judgment or court order
pursuant to Section 22652.
(3) This section shall not apply to a member subject to the
California Public Employees' Pension Reform Act of 2013.
SEC. 12. Section 22135 of the Education Code is amended to read:
22135. (a) Notwithstanding subdivisions
subdivision (a) and (b) of Section 22134,
"final compensation" means the highest average annual compensation
earnable , as defined by Section 22115, by an active
member who is a classroom teacher not subject to the California
Public Employees' Pension Reform Act of 2013 and who retires, becomes
disabled, or dies, after June 30, 1990, during any period of 12
consecutive months during his or her membership in
while an active member of the plan's
Defined Benefit Program.
(b) Section 22134, except subdivision (a) of that section, shall
apply to classroom teachers who retire after June 30, 1990, and any
statutory reference to Section 22134 or "final compensation" with
respect to a classroom teacher who retires, becomes disabled, or
dies, after June 30, 1990, shall be deemed to be a reference to this
section.
(c) As used in this section, "classroom teacher" means any of the
following:
(1) All teachers and substitute teachers in positions requiring
certification qualifications who spend, during the last 10 years of
their employment with the same employer which immediately precedes
their retirement, 60 percent or more of their contract time each year
providing direct instruction. For the purpose of determining
continuity of employment within the meaning of this subdivision, an
authorized leave of absence for sabbatical or illness or other
collectively bargained or employer-approved leaves shall not
constitute a break in service.
(2) Other certificated personnel who spend, during the last 10
years of their employment with the same employer that immediately
precedes their retirement, 60 percent or more of their contract time
each year providing direct services to pupils, including, but not
limited to, librarians, counselors, nurses, speech therapists,
resource specialists, audiologists, audiometrists, hygienists,
optometrists, psychologists, driver safety instructors, and personnel
on special assignment to perform school attendance and adjustment
services.
(d) As used in this section, "classroom teacher" does not include
any of the following:
(1) Certificated employees whose job descriptions require an
administrative credential.
(2) Certificated employees whose job descriptions include
responsibility for supervision of certificated staff.
(3) Certificated employees who serve as advisers, coordinators,
consultants, or developers or planners of curricula, instructional
materials, or programs, who spend, during the last 10 years of their
employment with the same employer that immediately precedes their
retirement, less than 60 percent of their contract time in direct
instruction.
(4) Certificated employees whose job descriptions require
provision of direct instruction or services, but who are functioning
in nonteaching assignments.
(5) Classified employees.
(e) This section shall apply only to teachers employed by an
employer that has, pursuant to Chapter 10.7 (commencing with Section
3540) of Division 4 of Title 1 of the Government Code, entered into,
extended, renewed, or amended a written agreement with an exclusive
representative, prior to January 1, 2014, that makes this section
applicable to all of its classroom teachers, as defined in
subdivision (c).
(f) The written agreement shall include a mechanism to pay for all
increases in allowances provided for by this section through
employer contributions or employee contributions or both, which shall
be collected and retained by the employer in a trust fund to be used
solely and exclusively to pay the system for all increases in
allowances provided by this section and related administrative costs;
and a mechanism for disposition of the employee's contributions if
employment is terminated before retirement, and for the establishment
of a trust fund board. The trust fund board shall administer the
trust fund and shall be composed of an equal number of members
representing classroom teachers chosen by the bargaining agent and
the employer. If the employer agrees to pay the total cost of
increases in allowances, the establishment of a trust fund and a
trust fund board shall be optional to the employer. The employer,
within 30 days of receiving an invoice from the system, shall
reimburse the retirement fund the amount determined by the Teachers'
Retirement Board to be the actuarial equivalent of the difference
between the allowance the member or beneficiary receives pursuant to
this section and the allowance the member or beneficiary would have
received if the member's final compensation had been computed under
Section 22134 and the proportionate share of the cost to the plan's
Defined Benefit Program, as determined by the Teachers' Retirement
Board, of administering this section. The payment shall include the
cost of all increases in allowances provided for by this section for
all years of service credited to the member as of the benefit
effective date. Interest shall be charged at the regular interest
rate for any payment not received within 30 days of receipt of the
invoice. Payments not received within 30 days after receipt of the
invoice may be collected pursuant to Section 23007.
(g) Upon the execution
of the agreement, the employer shall notify all certificated
employees of the agreement and any certificated employee of the
employer, who is a member of the Public Employees' Retirement System
pursuant to Section 22508, that he or she may, within 60 days
following the date of notification, elect to terminate his or her
membership in the Public Employees' Retirement System and become a
member of this plan's Defined Benefit Program. However, only service
credited under the Defined Benefit Program subsequent to the date of
that election shall be subject to this section.
(h) An employer that agrees to become subject to this section,
shall, on a form and within the timeframes prescribed by the system,
certify the applicability of this section to a member pursuant to the
criteria set forth in this section when a retirement, disability, or
family allowance becomes payable.
(i) For a nonmember spouse, final compensation shall be determined
pursuant to paragraph (5) of subdivision (c) of Section 22664. The
employer, within 30 days of receiving an invoice from the system,
shall reimburse the retirement fund pursuant to subdivision (f).
Interest shall be charged at the regular interest rate for payments
not received within the prescribed timeframe. Payments not received
within 30 days of invoicing may be collected pursuant to Section
23007.
SEC. 13. Section 22136 of the Education Code is amended to read:
22136. (a) "Final compensation" with respect to a member whose
salary while an active member was reduced because of a reduction in
school funds means the highest average annual compensation earnable
, as defined by Section 22115, by the member during any
three years 36 months while employed to
perform creditable service subject to coverage by the Defined
Benefit Program if the member elects to be subject to this section
, as certified by the employer .
(b) For the purposes of this section, a year shall be
considered to be a period of 12 consecutive months
periods of service separated by breaks in service or periods in which
a member's salary was reduced may be aggregated, if the periods of
service are consecutive except for the breaks or periods of the
salary reduction .
SEC. 14. Section 22516 of the Education Code is amended to read:
22516. (a) Nothing in this chapter shall be construed or applied
to exclude from membership in the Defined Benefit Program any person
employed to perform creditable service at a level that requires
mandatory membership in the program for which he or she has the right
to elect membership in the program or another retirement system and
who elects membership in the other retirement system, or who is
employed to perform creditable service at a level that does not
require mandatory membership in the Defined Benefit Program.
(b) Service performed after becoming a member of another
retirement system shall not be credited to the member under this
part, nor shall contributions or benefits under this part be based
upon that service or the compensation received by the member during
that period of service, except as provided in the definition of
"final compensation" contained in Section 22134 or 22134.5
.
SEC. 15. Section 22655 of the Education Code is amended to read:
22655. (a) Upon the legal separation or dissolution of marriage
of a retired member, the court may include in the judgment or court
order a determination of the community property rights of the parties
in the retired member's retirement allowance and, if applicable,
retirement benefit under this part consistent with this section. Upon
election under subparagraph (B) of paragraph (3) of subdivision (a)
of Section 2610 of the Family Code, the court order awarding the
nonmember spouse a community property share in the retirement
allowance or retirement benefit, or both, of a retired member shall
be consistent with this section.
(b) If the court does not award the entire retirement allowance or
retirement benefit under this part to the retired member and the
retired member is receiving a retirement allowance that has not been
modified pursuant to Section 24300 or 24300.1, a single life annuity
pursuant to Section 25011 or 25018, or a member only annuity
described in paragraph (1) of subdivision (a) of Sections 25011.1 and
25018.1, the court shall require only that the system pay the
nonmember spouse, by separate warrant, his or her community property
share of the retired member's retirement allowance or retirement
benefit, or both, under this part.
(c) If the court does not award the entire retirement allowance or
retirement benefit under this part to the retired member and the
retired member is receiving an allowance that has been actuarially
modified pursuant to Section 24300 or 24300.1, or a joint and
survivor annuity pursuant to Section 25011, 25011.1, 25018, or
25018.1, the court shall order only one of the following:
(1) The retired member shall maintain the retirement allowance or
joint and survivor annuity, or both, under this part without change.
(2) The retired member shall cancel the option that modified the
retirement allowance under this part pursuant to Section
24305 24322 and elect a new joint and survivor
option or designate a new beneficiary or both, and the system shall
pay the nonmember spouse, by separate warrant, his or her community
property share of the retirement allowance payable to the retired
member, the option beneficiary, or both.
(3) The retired member shall cancel the joint and survivor annuity
under which the retirement benefit is being paid pursuant to Section
24305.3, 24324, and elect a new joint
and survivor annuity or designate a new annuity beneficiary or both,
based on the actuarial equivalent of the member's canceled annuity,
and the system shall pay the nonmember spouse, by separate warrant,
his or her community property share of the retirement benefit payable
to the retired member, the annuity beneficiary, or both.
(4) The retired member shall take the action specified in both
paragraphs (2) and (3).
(5) The retired member shall cancel the option that modified the
retirement allowance under this part pursuant to Section
24305 24322 and elect an unmodified retirement
allowance and the system shall pay the nonmember spouse, by separate
warrant, his or her community property share of the retired member's
retirement allowance under this part.
(6) The retired member shall cancel, pursuant to Section
24305.3, 24324, the joint and survivor annuity
under which the retirement benefit is being paid, and elect a single
life annuity, and the system shall pay the nonmember spouse, by
separate warrant, his or her community property share of the
retirement benefit payable to the retired member.
(7) The retired member shall take the action specified in both
paragraphs (5) and (6).
(d) If the option beneficiary or annuity beneficiary or both under
this part, other than the nonmember spouse, predeceases the retired
member, the court shall order the retired member to designate a new
option beneficiary pursuant to Section 24306,
24323, or a new annuity beneficiary pursuant to Section
24305.3 24324 and shall order the
system to pay the nonmember spouse, by separate warrant, his or her
share of the community property interest in the retirement allowance
or retirement benefit payable to the retired member or the new option
beneficiary or annuity beneficiary or each of them.
(e) The right of the nonmember spouse to receive his or her
community property share of the retired member's retirement allowance
or retirement benefit or both under this section shall terminate
upon the death of the nonmember spouse. However, the nonmember spouse
may designate a beneficiary under the Defined Benefit Program and a
payee under the Defined Benefit Supplement Program to receive his or
her community property share of the retired member's accumulated
retirement contributions and accumulated Defined Benefit Supplement
account balance under this part in the event that there are remaining
accumulated retirement contributions and a balance of credits in the
member's Defined Benefit Supplement account to be paid upon the
death of the nonmember spouse.
SEC. 16. Section 22662 of the Education Code is amended to read:
22662. The nonmember spouse who is awarded a separate account
under the Defined Benefit Program may redeposit accumulated
retirement contributions previously refunded to the member in
accordance with the determination of the court pursuant to Section
22652.
(a) The nonmember spouse may redeposit under the Defined Benefit
Program only those accumulated retirement contributions that were
previously refunded to the member and in which the court has
determined the nonmember spouse has a community property interest.
(b) The nonmember spouse shall inform the system in writing of his
or her intent to redeposit within 180 days after the judgment or
court order that specifies the redeposit rights of the nonmember
spouse is entered. Except as provided in subdivision (g), the
nonmember spouse's election to redeposit shall be made on a form
provided by the system within 30 days after the system mails an
election form and the billing.
(c) If the nonmember spouse elects to redeposit under the Defined
Benefit Program, he or she shall repay all or a portion of the member'
s refunded accumulated retirement contributions that were awarded to
the nonmember spouse and shall pay regular interest from the date of
the refund to the date payment of the redeposit is completed.
(d) All payments shall be received by the system before the
effective date of the nonmember spouse's retirement under this part.
If any payment due because of the election is not received at the
system's headquarters office, as established pursuant to
Section 22375, office within 120 days of its due
date, the election shall be canceled and any payments made under the
election shall be returned to the nonmember spouse.
(e) The right of the nonmember spouse to redeposit shall be
subject to Section 23203.
(f) The member shall not have a right to redeposit the share of
the nonmember spouse in the previously refunded accumulated
retirement contributions under this part whether or not the nonmember
spouse elects to redeposit. However, any accumulated retirement
contributions previously refunded under this part and not explicitly
awarded to the nonmember spouse under this part by the judgment or
court order shall be deemed the exclusive property of the member.
(g) The measurement of time within which the election to redeposit
described in subdivision (b) shall be made is subject to Section
22337.
SEC. 17. Section 22663 of the Education Code is amended to read:
22663. The nonmember spouse who is awarded a separate account
under this part has the right to purchase additional service credit
in accordance with the determination of the court pursuant to Section
22652.
(a) The nonmember spouse may purchase only the service credit that
the court, pursuant to Section 22652, has determined to be the
community property interest of the nonmember spouse.
(b) The nonmember spouse shall inform the system in writing of his
or her intent to purchase additional service credit within 180 days
after the date the judgment or court order addressing the right of
the nonmember spouse to purchase additional service credit is
entered. Except as provided in subdivision (f), the nonmember spouse
shall elect to purchase additional service credit on a form provided
by the system within 30 days after the system mails an election form
and billing.
(c) If the nonmember spouse elects to purchase additional service
credit, he or she shall pay, prior to retirement under this part, all
contributions with respect to the additional service at the
contribution rate for additional service credit in effect at the time
of election and regular interest from July 1 of the year following
the year upon which contributions are based.
(1) (A) The nonmember spouse shall purchase additional service
credit by paying the required contributions and interest in one lump
sum, or in not more than 120 monthly installments, provided that no
installment, except the final installment, is less than twenty-five
dollars ($25). Regular interest shall be charged on the monthly,
unpaid balance if the nonmember spouse pays in installments.
(B) If any payment due, because of the election, is not received
at the system's headquarters office, as established pursuant
to Section 22375, office within 120 days of its
due date, the election shall be canceled and any payments made under
the election shall be returned to the nonmember spouse.
(2) The contributions shall be based on the member's compensation
earnable in the most recent school year during which the member was
employed, preceding the date of separation established by the court
pursuant to Section 22652.
(3) All payments of contributions and interest shall be received
by the system before the effective date of the retirement of the
nonmember spouse.
(d) The nonmember spouse does not have a right to purchase
additional service credit under this part after the effective date of
a refund of the accumulated retirement contributions in the separate
account of the nonmember spouse.
(e) The member does not have a right to purchase the community
property interest of the nonmember spouse of additional service
credit under this part whether or not the nonmember spouse elects to
purchase the additional service credit. However, any additional
service credit eligible for purchase that is not explicitly awarded
to the nonmember spouse by the judgment or court order shall be
deemed the exclusive property of the member.
(f) The measurement of time within which the election to purchase
additional service credit described in subdivision (b) shall be made
is subject to Section 22337.
SEC. 18. Section 22664 of the Education Code is amended to read:
22664. The nonmember spouse who is awarded a separate account
shall have the right to a service retirement allowance and, if
applicable, a retirement benefit under this part.
(a) The nonmember spouse shall be eligible to retire for service
under this part if the following conditions are satisfied:
(1) The member had at least five years of credited service during
the period of marriage, at least one year of which had been performed
subsequent to the most recent refund to the member of accumulated
retirement contributions. The credited service may include service
credited to the account of the member as of the date of the
dissolution or legal separation, previously refunded service,
out-of-state service, and permissive service credit that the member
is eligible to purchase at the time of the dissolution or legal
separation.
(2) The nonmember spouse has at least 21/2 years of credited
service in his or her separate account.
(3) The nonmember spouse has attained 55 years of age or more.
(b) A service retirement allowance of a nonmember spouse under
this part shall become effective upon a date designated by the
nonmember spouse, provided:
(1) The requirements of subdivision (a) are satisfied.
(2) The nonmember spouse has filed an application for service
retirement on a properly executed form provided by the system, that
is executed no earlier than six months before the effective date of
the retirement allowance.
(3) The effective date is no earlier than the first day of the
month that the application is received at the system's headquarters
office as described in Section 22375, and the
effective date is after the date the judgment or court order pursuant
to Section 22652 was entered.
(c) (1) Upon service retirement at normal retirement age under
this part, the nonmember spouse shall receive a retirement allowance
that shall consist of an annual allowance payable in monthly
installments equal to 2 percent of final compensation for each year
of credited service.
(2) If the nonmember spouse's retirement is effective at less than
normal retirement age and between early retirement age under this
part and normal retirement age, the retirement allowance shall be
reduced by one-half of 1 percent for each full month, or fraction of
a month, that will elapse until the nonmember spouse would have
reached normal retirement age.
(3) If the nonmember spouse's service retirement is effective at
an age greater than normal retirement age and is effective on or
after January 1, 1999, the percentage of final compensation for each
year of credited service shall be determined pursuant to the
following table:
Age at Retirement Percentage
60 1/4 ..................... 2.033
60 1/2 ..................... 2.067
60 3/4 ..................... 2.10
61 ......................... 2.133
61 1/4 ..................... 2.167
61 1/2 ..................... 2.20
61 3/4 ..................... 2.233
62 ......................... 2.267
62 1/4 ..................... 2.30
62 1/2 ..................... 2.333
62 3/4 ..................... 2.367
63 and over ................ 2.40
(4) In computing the retirement allowance of the nonmember spouse,
the age of the nonmember spouse on the last day of the month that
the retirement allowance begins to accrue shall be used.
(5) Final compensation, for purposes of calculating the service
retirement allowance of the nonmember spouse under this subdivision,
shall be calculated according to the definition of final compensation
in Section 22134, 22134.5, 22135, or 22136, whichever is applicable,
and shall be based on the member's compensation earnable up to the
date the parties separated, as established in the judgment or court
order pursuant to Section 22652. The nonmember spouse shall not be
entitled to use any other calculation of final compensation.
(d) Upon service retirement under this part, the nonmember spouse
shall receive a retirement benefit based on an amount equal to the
balance of credits in the nonmember spouse's Defined Benefit
Supplement account on the date the retirement benefit becomes
payable.
(1) A retirement benefit shall be a lump-sum payment, or an
annuity payable in monthly installments, or a combination of both a
lump-sum payment and an annuity, as elected by the nonmember spouse
on the application for a retirement benefit. A retirement benefit
paid as an annuity under this chapter shall be subject to Sections
22660, 25011, and 25011.1.
(2) Upon distribution of the entire retirement benefit in a
lump-sum payment, no other benefit shall be payable to the nonmember
spouse or the nonmember spouse's beneficiary under the Defined
Benefit Supplement Program.
(e) If the member is or was receiving a disability allowance under
this part with an effective date before or on the date the parties
separated as established in the judgment or court order pursuant to
Section 22652, or at any time applies for and receives a disability
allowance with an effective date that is before or coincides with the
date the parties separated as established in the judgment or court
order pursuant to Section 22652, the nonmember spouse shall not be
eligible to retire until after the disability allowance of the member
terminates. If the member who is or was receiving a disability
allowance returns to employment to perform creditable service subject
to coverage under the Defined Benefit Program or has his or her
allowance terminated under Section 24015, the nonmember spouse may
not be paid a retirement allowance until at least six months after
termination of the disability allowance and the return of the member
to employment to perform creditable service subject to coverage under
the Defined Benefit Program, or the termination of the disability
allowance and the employment or self-employment of the member in any
capacity, notwithstanding Section 22132. If at the end of the
six-month period, the member has not had a recurrence of the original
disability or has not had his or her earnings fall below the amounts
described in Section 24015, the nonmember spouse may be paid a
retirement allowance if all other eligibility requirements are met.
(1) The retirement allowance of the nonmember spouse under this
subdivision shall be calculated as follows: the disability allowance
the member was receiving, exclusive of the portion for dependent
children, shall be divided between the share of the member and the
share of the nonmember spouse. The share of the nonmember spouse
shall be the amount obtained by multiplying the disability allowance,
exclusive of the portion for dependent children, by the years of
service credited to the separate account of the nonmember spouse,
including service projected to the date of separation, and dividing
by the projected service of the member. The nonmember spouse's
retirement allowance shall be the lesser of the share of the
nonmember spouse under this subdivision or the retirement allowance
under subdivision (c).
(2) The share of the member shall be the total disability
allowance reduced by the share of the nonmember spouse. The share of
the member shall be considered the disability allowance of the member
for purposes of Section 24213.
(f) The nonmember spouse who receives a retirement allowance is
not a retired member under this part. However, the allowance of the
nonmember spouse shall be increased by application of the improvement
factor and shall be eligible for the application of supplemental
increases and other benefit maintenance provisions under this part,
including, but not limited to, Sections 24412 and 24415 based on the
same criteria used for the application of these benefit maintenance
increases to the service retirement allowances of members.
(g) Paragraphs (1) through (3), inclusive, of subdivision (c)
shall not apply to a nonmember spouse of a member subject to the
California Public Employees' Pension Reform Act of 2013. For a person
who is a nonmember spouse of a member subject to the California
Public Employees' Pension Reform Act of 2013 and is awarded a
separate account, the retirement allowance shall equal the percentage
of final compensation for each year of credited service that is
equal to the percentage specified in Section 24202.6 based on the age
of the nonmember spouse on the effective date of the allowance.
SEC. 19. Section 22801 of the Education Code is amended to read:
22801. (a) A member who requests to purchase additional service
credit as provided in this chapter and Chapter 14.2 (commencing with
Section 22820) shall pay, prior to retirement, all contributions with
respect to that service at the contribution rate for additional
service credit, adopted by the board as a plan amendment, in effect
on the date of the request to purchase additional service credit. If
the system is unable to inform the member or beneficiary of the
amount required to purchase additional service credit prior to the
effective date of the applicable allowance, the member or beneficiary
may make the required payment within 30 working days after the date
of mailing of the statement of contributions and interest required or
the effective date of the appropriate allowance, whichever is later,
except as provided in subdivision (i). The payment shall be paid in
full before a member or beneficiary receives any adjustment in the
appropriate allowance due because of that payment. Contributions
shall be made in a lump sum, or in not more than 120 monthly
installments, not to exceed ten years. No installment, except the
final installment, shall be less than twenty-five dollars ($25).
(b) If the member is employed to perform creditable service
subject to coverage by the Defined Benefit Program on the date of the
request to purchase additional service credit, the contributions
shall be based upon the compensation earnable in the current school
year or either of the two immediately preceding school years,
whichever is highest.
(c) If the member is not employed to perform creditable service
subject to coverage by the Defined Benefit Program on the date of the
request to purchase additional service credit, the contributions
shall be based upon the compensation earnable in the last school year
of credited service or either of the two immediately preceding
school years, whichever is highest, and additional regular interest
shall be added to the contributions from July 1 of the subsequent
year in which the member last performed creditable service subject to
coverage by the Defined Benefit Program to 20 days after the date of
the request.
(d) The employer may pay the amount required as employer
contributions for additional service credited under paragraphs (7),
(8), (9), and (10) of subdivision (a) of Section 22803.
(e) The Public Employees' Retirement System shall transfer the
actuarial present value of the assets of a person who makes an
election pursuant to paragraph (11) of subdivision (a) of Section
22803.
(f) Regular interest shall be charged on the monthly unpaid
balance if the member pays in installments. Regular interest may not
be charged or be payable for the period of a delay caused by the
system's inability or failure to determine and inform the member or
beneficiary of the amount of contributions and interest that is
payable. The period of delay shall commence on the 20th day following
the day on which the member or beneficiary who wishes to make
payment evidences in writing to the system that he or she is ready,
willing, and able to make payment to the system. The period of delay
shall cease on the first day of the month following the mailing of
notification of contributions and interest payable.
(g) If the payment described in subdivision (a) is not received at
the system's headquarters office, as described in Section
22375, office within 120 days of the due date,
the election pursuant to this section shall be canceled. The member
shall receive credit for additional service based on the payments
that were made or the member may request a return of his or her
payments.
(h) If the election to purchase additional service credit is
canceled as described in subdivision (g), the member may, prior to
the effective date of his or her retirement, elect to purchase
additional service credit pursuant to this section.
(i) The measurement of time within which the purchase of
additional service credit described in subdivision (a) shall be made
is subject to Section 22337.
SEC. 20. Section 22826 of the Education Code is amended to read:
22826. (a) A member, other than a retired member, may request to
purchase up to five years of nonqualified service credit provided
the member is vested in the Defined Benefit Program as provided in
Section 22156.
(b) A member who requests to purchase nonqualified service credit
as provided in this chapter shall contribute to the retirement fund
the actuarial cost of the service, including interest as appropriate,
as determined by the board based on the most recent valuation of the
plan with respect to the Defined Benefit Program in effect on the
date of the request, in accordance with subdivisions (a), (f), (g),
and (h) of Section 22801.
(c) This section shall apply only to an application to purchase
nonqualified service credit on a properly executed form provided by
the system and received at the system's headquarters office,
as established pursuant to Section 22375, office
prior to January 1, 2013, that is subsequently approved by the
system.
SEC. 21. Section 22828 of the Education Code is amended to read:
22828. A request to purchase out-of-state service credit pursuant
to Section 22827 must be received, as provided in Section
22375, received no later than June 30, 2009.
SEC. 22. Section 22905 of the Education Code is amended to read:
22905. (a) Member contributions pursuant to Section 22901,
employer contributions pursuant to Section 22903 or 22904, and member
contributions made by an employer pursuant to Section 22909 shall be
credited to the member's individual account under the Defined
Benefit Program or the Defined Benefit Supplement Program, whichever
is applicable pursuant to the provisions of this part.
(b) Except as provided in subdivision (f), member and employer
contributions, exclusive of contributions pursuant to Section 22951,
on a member's compensation under the following circumstances shall be
credited to the member's Defined Benefit Supplement account:
(1) Compensation for creditable service that exceeds one year in a
school year.
(2) Compensation that is consistent with subdivision (b)
of Section 22119.2 determined by the system to have
been paid to enhance a member's benefits pursuant to subdivision (b)
of Section 22119.2 or to not reflect sound principle s
that support the integrity of the retirement fund pursuant to
subdivision (f) of Section 22119.2 .
(3) Compensation that is paid for a limited number of times as
specified by law, a collective bargaining agreement, or an employment
agreement.
(c) A member may not make voluntary pretax or posttax
contributions under the Defined Benefit Supplement Program, except as
provided in subdivision (d), nor may a member redeposit amounts
previously distributed based on the balance in the member's Defined
Benefit Supplement account.
(d) Member and employer contributions pursuant to paragraph (1) of
subdivision (b) under the Defined Benefit Supplement Program shall
be credited to the accounts of members as of July 1 each year
following a determination by the system under the provisions of this
part that those contributions should be credited to the Defined
Benefit Supplement Program. Any other contributions under the Defined
Benefit Supplement Program pursuant to paragraph (2) or (3) of
subdivision (b), shall be credited to the individual account of the
member upon receipt by the system. Contributions to a member's
Defined Benefit Supplement account shall be identified separately
from the member's contributions credited under the Defined Benefit
Program.
(e) The provisions of this section shall become operative on July
1, 2002, if the revenue limit cost-of-living adjustment computed by
the Superintendent of Public Instruction for the 2001-02 fiscal year
is equal to or greater than 3.5 percent. Otherwise this section shall
become operative on July 1, 2003.
(f) Paragraphs (2) and (3) of subdivision (b) shall not apply to a
member subject to the California Public Employees' Pension Reform
Act of 2013.
SEC. 23. Section 23104 of the Education Code is amended to read:
23104. (a) Deposit in the United States mail of an initial
warrant drawn as directed by the member as a refund of contributions
upon termination of employment, and addressed to the address directed
by the member, constitutes a return of the member's accumulated
retirement contributions under this part.
(b) Except as provided in subdivision (e), if the member has
elected on a form provided by the system to transfer all or a
specified portion of the accumulated retirement contributions that
are eligible for direct trustee-to-trustee transfer to the trustee of
a qualified plan under Section 402 of the Internal Revenue Code of
1986 (26 U.S.C. Sec. 402), deposit in the United States mail of a
notice that the requested transfer has been made constitutes a return
of the member's accumulated retirement contributions under this
part.
(c) Except as provided in subdivision (e), for refunds not
involving direct trustee-to-trustee transfers, if the member returns
the total gross distribution amount to the system's headquarters
office, as established pursuant to Section 22375,
office within 30 days from the mailing date, the refund
shall be canceled and the person shall be restored as a member of the
Defined Benefit Program with all the rights and privileges under
this part restored.
(d) Except as provided in subdivision (e), for refunds involving
direct trustee-to-trustee transfers, if the member returns the
warrant drawn to the trustee of the qualified plan or the trustee
returns the amount of the qualified refund and, if applicable, any
additional amounts necessary to equal, but in no event to exceed, the
total gross distribution amount to the system's headquarters
office, as established pursuant to Section 22375,
office within 30 days from the mailing date, the refund
shall be canceled and the person shall be restored as a member of the
Defined Benefit Program with all the rights and privileges under
this part restored.
(e) The mode of notice described in subdivision (b) and the
measurement of time within which the return of total gross
distribution amounts described in subdivisions (c) and (d) shall be
made are subject to Section 22337.
SEC. 24. Section 24001 of the Education Code is amended to read:
24001. (a) (1) A member may apply for a disability allowance
under the Defined Benefit Program, upon written application for
disability allowance to the board on a properly executed form
provided by the system, if the member has five or more years of
credited service and if all of the following requirements are met:
(A) At least four years were credited for actual performance of
service subject to coverage under the Defined Benefit Program. Credit
received because of workers' compensation payments shall be counted
toward the four-year requirement in accordance with Section 22710.
(B) The last five years of credited service were performed in this
state.
(C) Except as described in subdivision (d) of Section 24201.5,
the member is not currently receiving a service retirement
allowance and at least one year was credited for service
performed subsequent to the date on which the member terminated
the a service retirement allowance
under Section 24208.
(D) At least one year was credited for service performed
subsequent to the most recent refund of accumulated retirement
contributions.
(E) The member has neither attained normal retirement age, nor
possesses sufficient unused sick leave days to receive creditable
compensation on account of sick leave to normal retirement age.
(F) The member is not applying for a disability allowance because
of a physical or mental condition known to exist at the time the most
recent membership in the Defined Benefit Program commenced and
remains substantially unchanged at the time of application.
(2) A member who becomes disabled prior to normal retirement age,
who has sick leave which will extend beyond normal retirement age,
and who has a dependent child, may be awarded a disability allowance
with an effective date after normal retirement age if the application
is filed prior to attaining normal retirement age.
(b) Nothing in subdivision (a) shall affect the right of a member
to a disability allowance under this part if the reason that the
member is credited with less than four years of actual service
performed subject to coverage under the Defined Benefit Program is
due to an on-the-job injury or a disease that occurred while the
member was employed and the four-year requirement can be satisfied by
credit obtained under Chapter 14 (commencing with Section 22800) or
Chapter 14.5 (commencing with Section 22850) in addition to any
credit received from workers' compensation payments.
(c) Nothing in subdivision (a) shall affect the right of a member
under this part who has less than five years of credited service to a
disability allowance if the following conditions are met:
(1) The member has at least one year of credited service performed
in this state.
(2) The disability is the direct result of an unlawful act of
bodily injury that was perpetrated on his or her person by another
human being while the member was performing his or her official
duties in a position subject to coverage under the Defined Benefit
Program.
(3) The member provides documentation of the unlawful act in the
form of an official police report or official employer incident
report.
(d) A member who is eligible to apply for a disability allowance
pursuant to this section may also apply for a service retirement
pending a determination of his or her application for disability as
described in Section 24201.5.
SEC. 25. Section 24101 of the Education Code is amended to read:
24101. (a) A member may apply for a disability retirement under
this part, upon written application for disability retirement to the
board on a properly executed form provided by the system, if the
member has five or more years of credited service and if all of the
following requirements are met:
(1) At least four years were credited for actual service performed
subject to coverage under the Defined Benefit Program. Credit
received because of workers' compensation payments shall be counted
toward the four-year requirement in accordance with Section 22710.
(2) The last five years of credited service were performed in this
state.
(3) Except as described in subdivision (d) of Section 24201.5,
the member is not currently receiving a service retirement allowance
and at least one year of credited service was earned
subsequent to the date on which the member terminated the
a service retirement allowance under Section
24208.
(4) At least one year of credited service was earned subsequent to
the date on which the member's disability retirement was terminated.
(5) At least one year of credited service was earned subsequent to
the most recent refund of accumulated retirement contributions.
(6) The member is not applying for a disability retirement because
of a physical or mental condition known to exist at the time the
most recent membership in the Defined Benefit Program commenced and
that remains substantially unchanged at the time of application.
(b) Nothing in subdivision (a) shall affect the right of a member
to a disability retirement if the reason that the member has
performed less than four years of actual service is due to an
on-the-job injury or a disease while in employment subject to
coverage by the Defined Benefit Program and the four-year requirement
can be satisfied by credit obtained under Chapter 14 (commencing
with Section 22800) or Chapter 14.5 (commencing with Section 22850)
in addition to any credit received from workers' compensation
payments.
(c) Nothing in subdivision (a) shall affect the right of a member
under this part who has less than five years of credited service to a
disability retirement allowance if the following conditions are met:
(1) The member has at least one year of credited service performed
in this state.
(2) The disability is a direct result of an unlawful act of bodily
injury that was perpetrated on his or her person by another human
being while the member was performing his or her official duties in a
position subject to coverage under the Defined Benefit Program.
(3) The member provides documentation of the unlawful act in the
form of an official police report or official employer incident
report.
(d) A member who is eligible to apply for a disability retirement
pursuant to this section may also apply for a service retirement
pending a determination of his or her application for disability as
described in Section 24201.5.
SEC. 26. Section 24105 of the Education Code is amended to read:
24105. (a) A disability retirement allowance under this part
shall become effective upon any date designated by the member,
provided that all of the following conditions are met:
(1) An application for disability retirement is filed on a
properly executed form prescribed by the system.
(2) The effective date is later than the last day of creditable
service for which compensation is payable to the member.
(3) The effective date is no earlier than either the first day of
the month in which the application is received at the system's
headquarters office or the date upon and continuously after which the
member is determined to the satisfaction of the board to have been
mentally incompetent.
(4) The application for disability retirement contains an election
of either an unmodified allowance or an allowance modified under an
option as provided in Section 24301 24332
.
(b) If the member is employed to perform creditable service
subject to coverage under the Defined Benefit Program at the time the
disability retirement is approved, the member shall notify the
system in writing, within 90 days, of the last day on which the
member will perform service. If the member does not respond within 90
days, or if the last day on which service will be performed is more
than 90 days after the date the system notifies the member of the
approval of disability retirement, the member's application for
disability retirement shall be rejected and a disability retirement
allowance shall not be payable to the member.
SEC. 27. Section 24107 of the Education Code is amended to read:
24107. A member retired for disability under this part may elect
an option pursuant to Section 24301 24332
to modify the disability retirement allowance payable pursuant
to subdivision (a) of Section 24106.
SEC. 28. Section 24201.5 of the Education Code is amended to read:
24201.5. (a) A member who is eligible and applies for a
disability allowance or retirement pursuant to Section 24001 or 24101
may apply to receive a service retirement allowance pending the
determination of his or her application for disability, subject to
all of the following:
(1) The member is eligible to retire for service under Section
24201 or 24203.
(2) The member submits the application on a form provided by the
system, subject to all of the following:
(A) The application is executed no earlier than the date the
application for disability benefits is executed and no earlier than
six months before the effective date of the retirement allowance.
(B) The effective date is no earlier than the first day of the
month in which the application for disability benefits is received at
the system's headquarters office, unless the application for
disability benefits is denied or canceled and the member has
indicated an earlier service retirement date on the application to
use if denied or canceled. If the application for disability benefits
is denied or canceled, the service retirement date of a member
retiring who submits an application for
retirement pursuant to this section on or after January 1,
2014, shall be no earlier than January 1, 2014.
(C) The effective date is later than the last day of creditable
service for which compensation is payable to the member.
(D) The effective date is no earlier than one year following the
date on which a retirement allowance was terminated pursuant to
Section 24208, unless the application for disability benefits is
denied or canceled and the member has indicated an earlier service
retirement date on the application to use if denied or canceled. If
the application for disability benefits is denied or canceled, the
service retirement date is no earlier than one day after the date on
which a retirement allowance was terminated pursuant to Section
24208, provided that the retirement allowance is terminated on or
after January 1, 2014.
(E) The effective date is no earlier than one year following the
date on which a retirement allowance was terminated pursuant to
subdivision (a) of Section 24117.
(3) The effective date of the service retirement allowance can be
no earlier than the date upon and continuously after which the member
is determined to the satisfaction of the board to have been mentally
incompetent.
(4) A member who applies for service retirement under this section
is not eligible to receive a lump-sum payment and an actuarially
reduced monthly allowance pursuant to Section 24221.
(5) A member who applies for service retirement under this section
is not eligible to receive an allowance calculated pursuant to
Section 24205.
(6) (A) Except as described in subparagraph (B), a member who
applies for service retirement under this section shall not receive
service credit for each day of accumulated and unused leave of
absence for illness or injury or for education pursuant to Section
22717 or 22717.5.
(B) If the application for disability is denied or canceled, the
member's service retirement allowance shall be adjusted to the
effective date of the service retirement to include service credited
pursuant to Section 22717 or 22717.5.
(7) If the application for disability is denied or canceled, a
member who applies for a service retirement allowance under this
section is subject to all of the following:
(A) Unless otherwise provided in this part, a member who, on his
or her application for service retirement, elects an option pursuant
to Section 24300.1 or 24307 may not change or revoke that option.
(B) If the member receives a modified service retirement allowance
based on the election of an option pursuant to Section 24300.1 or
24307, that modified service retirement allowance shall continue in
effect and unchanged.
(C) If the member did not elect an option pursuant to Section
24300.1 or 24307 and receives an unmodified service retirement
allowance, that unmodified service retirement allowance shall
continue in effect and unchanged.
(b) A member who applies for service retirement under this section
may change or cancel his or her service retirement application
pursuant to Section 24204, or may terminate his or her service
retirement allowance pursuant to Section 24208.
(c) A member may not cancel his or her application for disability
prior to a determination of that application unless he or she submits
a written request to the system's headquarters office. If a member
elects to cancel his or her service retirement application or elects
to terminate his or her service retirement allowance as described in
subdivision (b), that election shall not cancel the application for
disability.
(d) (1) Subparagraph (C) of paragraph (1) of subdivision (a) of
Section 24001 and paragraph (3) of subdivision (a) of Section 24101
shall not apply to a member who cancels an application for service
retirement pursuant to Section 24204 or who terminates a service
retirement allowance pursuant to Section 24208, if all of the
following apply:
(A) The member earned at least one year of credited service
subsequent to the most recent terminated service retirement
allowance.
(B) The member's application for disability under this section is
pending determination by the board.
(2) If the member's application for disability under this section
is denied or canceled, subparagraph (C) of paragraph (1) of
subdivision (a) of Section 24001 and paragraph (3) of subdivision (a)
of Section 24101 shall apply if the member submits a new application
for disability.
(e) (1) If the board approves the application for disability, and
notwithstanding subdivision (f) of Section 24204, the board shall
cancel the member's application for service retirement and shall
authorize payment of a disability allowance or disability retirement.
(2) If the board approves the application for disability and the
member has received service retirement allowance payments under this
part, the effective date for the disability allowance or disability
retirement shall be the same as the effective date of the service
retirement allowance.
(f) If a member who applies for service retirement under this
section dies prior to a determination by the board on the application
for disability, the member shall be considered retired for service
at the time of death, and any subsequent benefits shall be paid
accordingly.
(g) If a member who applies for service retirement under this
section dies after the board has approved the member's application
for disability, the member shall be considered a disabled member, or
retired for disability, at the time of death, and any subsequent
benefits shall be paid accordingly, even if the member died prior to
receiving notification of the approval of his or her application for
disability.
(h) If the member changes or cancels his or her service retirement
application or terminates his or her service retirement allowance as
described in subdivision (b), the system shall make appropriate
adjustments to the applicable service retirement allowance,
disability allowance, or disability retirement allowance, retroactive
to the effective date of the disability allowance or disability
retirement allowance. Subdivision (a) of Section 24617 shall not
apply.
(i) The system may recover a service retirement allowance
overpayment made to a member by deducting that overpayment from any
subsequent disability benefit payable to the member.
(j) Nothing in this section shall be construed to allow a member
or beneficiary to receive more than one type of retirement or
disability allowance for the same period of time.
SEC. 29. Section 24203.5 of the Education Code is amended to read:
24203.5. (a) The percentage of final compensation used to compute
the allowance pursuant to Section 24202.5, 24203, or
24205 , 24209, 24209.3, 24210, 24211, 24212, or 24213
of a member retiring on or after January 1, 1999, who has 30 or
more years of credited service, shall be increased by two-tenths of
1 percentage point, provided that the sum of the percentage of final
compensation used to compute the allowance, including any adjustments
for retiring before the normal retirement age, and the additional
percentage provided by this section does not exceed 2.40 percent.
(b) For purposes of establishing eligibility for the increased
allowance pursuant to this section only, credited service shall
exclude service credited pursuant to the following:
(1) Section 22714.
(2) Section 22715.
(3) Section 22717, except as provided in subdivision (b) of
Section 22121.
(4) Section 22717.5.
(c) For purposes of establishing eligibility for the increased
allowance pursuant to this section only, credited service shall
include credited service that a court has ordered be awarded to a
nonmember spouse pursuant to Section 22652. A nonmember spouse shall
also be eligible for the increased allowance pursuant to this section
if the member had 30 or more years of credited service on the date
the parties separated, as established in the judgment or court order
pursuant to Section 22652.
(d) Nonqualified service credit for which contributions pursuant
to Section 22826 were made in a lump sum on or after January 1, 2000,
or for which the first installment was made on or after January 1,
2000, may not be included in determining the eligibility for an
increased allowance pursuant to this section.
SEC. 30. Section 24203.6 of the Education Code is amended to read:
24203.6. (a) In addition to the amount otherwise payable pursuant
to Sections Section 24202.5, 24203,
24203.5, 24205, 24209, 24209.3, 24210, 24211, and
24212, or 24213, a member shall receive an increase in the
monthly allowance, prior to any modification pursuant to Sections
24300, 24300.1, and 24309, in the amount identified in subdivision
(b), if the member meets all of the following criteria:
(1) The member retires for service on or after January 1, 2001.
(2) Prior to January 1, 2011, the member has 30 or more years of
credited service, including any credited service that a court has
ordered be awarded to a nonmember spouse pursuant to Section 22652,
but excluding service credited pursuant to the following:
(A) Section 22714.
(B) Section 22715.
(C) Section 22717, except as provided in subdivision (b) of
Section 22121.
(D) Section 22717.5.
(E) Section 22826.
(3) The member is receiving an allowance subject to Section
24203.5.
(b) The amount of the increase in the monthly allowance shall be
based on the member's years of credited service at the time of
retirement as follows:
30 years of credited service ........ $200
31 years of credited service ........ $300
32 or more years of credited service $400
.....................................
(c) This section also applies to a nonmember spouse, if all of the
following conditions are satisfied:
(1) The member is eligible for the allowance increase pursuant to
subdivisions (a) and (b) upon his or her retirement for service.
(2) On the date the parties separated, as established in the
judgment or court order pursuant to Section 22652, the member had at
least 30 years of credited service, excluding service credited
pursuant to the following:
(A) Section 22714.
(B) Section 22715.
(C) Section 22717, except as provided in subdivision (b) of
Section 22121.
(D) Section 22717.5.
(E) Section 22826.
(3) The service credit of the member was divided into separate
accounts in the name of the member and the nonmember spouse by a
court pursuant to Section 22652. The amount identified in the
schedule in subdivision (b) and payable pursuant to this section,
that is based on the service credited during the marriage, shall be
divided and paid to the member and the nonmember spouse
proportionately according to the respective percentages of the member'
s service credit that were allocated to the member
and the nonmember spouse in the court's
order.
(d) The allowance increase provided under this section is not
subject to Sections 24415 and 24417, but is subject to Section 22140.
SEC. 31. Section 24204 of the Education Code is amended to read:
24204. (a) A service retirement allowance under this part shall
become effective upon any date designated by the member, provided all
of the following conditions are met:
(1) An application for service retirement allowance is filed on a
form provided by the system, which is executed no earlier than six
months before the effective date of retirement allowance.
(2) The effective date is later than the last day of creditable
service for which compensation is payable to the member.
(3) The effective date is no earlier than one day after the date
on which the retirement allowance was terminated under Section 24208.
(4) The effective date is no earlier than one year following the
date on which the retirement allowance was terminated under
subdivision (a) of Section 24117.
(5) The effective date is no earlier than the date upon and
continuously after which the member is determined to the satisfaction
of the board to have been mentally incompetent.
(6) The effective date is no earlier than the date upon which the
member completes payment of a service credit purchase pursuant to
Section 22801, 22820, or 22826, or payment of a redeposit of
contributions pursuant to Section 23200, except as provided in
Section 22801 or 22829.
(b) A member who files an application for service retirement may
change or cancel his or her retirement application, as long as the
form provided by the system is received in the system's headquarters
office no later than 30 days from the date the member's initial
benefit payment for the member's most recent retirement under the
Defined Benefit Program is paid by the system. If a member cancels
his or her retirement application, the member shall return the total
gross distribution amount of all payments for the canceled retirement
benefit to the system's headquarters office no later than 45 days
from the date of the member's initial benefit payment and shall be
liable for any adverse tax consequences that may result from these
actions.
(c) The retirement date of a member retiring
who files an application for retirement pursuant to Section
24201 on or after January 1, 2012, shall be no earlier than
January 1, 2012.
(d) Nothing in this section shall be construed to allow a member
to receive more than one type of retirement or disability allowance
for the same period of time by virtue of his or her own membership.
SEC. 32. Section 24205 of the Education Code is amended to read:
24205. A member retiring prior to 60 years of age, and who has
attained 55 years of age, may elect to receive one-half of the
service retirement allowance for normal retirement age for a limited
time and then revert to the full retirement allowance for normal
retirement age.
(a) The retirement allowance shall be based on service credit and
final compensation as of the date of retirement for service and shall
be calculated with the factor for normal retirement age.
(b) If the member elects a joint and survivor option under Section
24300 or 24300.1, the actuarial reduction shall be based on the
member's and beneficiary's ages as of the effective date of the early
retirement. If the member elected a preretirement option under
Section 24307, the actuarial reduction shall be based on the member's
and beneficiary's ages as determined by the provisions of that
section.
(c) One-half of the retirement allowance as of 60 years of age
shall be paid for a period of time equal to twice the elapsed time
between the effective date of retirement and the date of the retired
member's 60th birthday.
(d) The full retirement allowance as calculated under subdivision
(a) or (b) shall begin to accrue as of the first of the month
following the reduction period as specified in subdivision (c). The
full retirement allowance shall not begin to accrue prior to this
time under any circumstances, including, but not limited to, divorce
or death of the named beneficiary.
(e) The annual improvement factor provided for in Sections 22140
and 22141 shall be based upon the retirement allowance as calculated
under subdivision (a) or (b). The improvement factor shall begin to
accrue on September 1 following the retired member's 60th birthday.
These increases shall be accumulated and shall become payable when
the full retirement allowance for normal retirement age first becomes
payable.
(f) Any ad hoc benefit increase with an effective date prior to
the retired member's 60th birthday shall not affect an allowance
payable under this section. Only those ad hoc improvements with
effective dates on or after the retired member's 60th birthday shall
be accrued and accumulated and shall first become payable when the
full retirement allowance for normal retirement age becomes payable.
(g) The cancellation of an option election in accordance with
Section 24305 24322 shall not cancel
the election under this section. Upon cancellation of the joint and
survivor option, one-half of the retired member's retirement
allowance as calculated under subdivision (a) shall become payable
for the balance of the reduction period specified in subdivision (c).
(h) If a retired member who has elected a joint and survivor
option dies during the period when the reduced allowance is payable,
the beneficiary shall receive one-half of the allowance payable to
the beneficiary until the date when the retired member would have
received the full retirement allowance for normal retirement age. At
that time, the beneficiary's allowance shall be increased to the full
amount payable to the beneficiary plus the appropriate annual
improvement factor increases and ad hoc increases.
(i) This section shall not apply to a member who retires for
service pursuant to Section 24201.5, 24209, 24209.3, 24210, 24211, or
24212.
(j) This section shall not apply to a member subject to the
California Public Employees' Pension Reform Act of 2013.
SEC. 33. Section 24210 of the Education Code is amended to read:
24210. Upon retirement for service following a prior disability
retirement granted pursuant to Chapter 26 (commencing with Section
24100) that was terminated, the member shall receive a service
retirement allowance calculated pursuant to Section 24202, 24202.5,
24202.6, 24203, 24203.5, 24203.6, or 24206 and equal to
the sum of both of the following:
(a) An amount based on service credit accrued prior to the
effective date of the disability retirement, the member's age as of
the effective date of the service retirement, and indexed final
compensation to the effective date of the service retirement.
(b) An amount based on the service credit accrued after
termination of the disability retirement, the member's age as of the
effective date of service retirement, and final compensation.
SEC. 34. Section 24211 of the Education Code is amended to read:
24211. When a member who has been granted a disability allowance
under this part after June 30, 1972, returns to employment subject to
coverage under the Defined Benefit Program and performs:
(a) Less than three years of creditable service after termination
of the disability allowance, the member shall receive a retirement
allowance which is the sum of the allowance calculated on service
credit accrued after the termination date of the disability
allowance, excluding service credited pursuant to Sections 22717
and 22717.5 or Chapter 14 (commencing with Section 22800) or Chapter
14.2 (commencing with Section 22820) or Chapter 19 (commencing with
Section 23200), the age of the member on the last day of the
month in which the retirement allowance begins to accrue, and final
compensation using compensation earnable or projected final
compensation, or a combination of both, plus the greater of either of
the following:
(1) A service retirement allowance calculated on service credit
accrued as of the effective date of the disability allowance,
excluding service credited pursuant to Sections 22717 and 22717.5 or
Chapter 14 (commencing with Section 22800) or Chapter 14.2
(commencing with Section 22820) or Chapter 19 (commencing with
Section 23200), the age of the member on the last day of the
month in which the retirement allowance begins to accrue, and
projected final compensation excluding service credited
pursuant to Sections 22717 and 22717.5 or Chapter 14 (commencing with
Section 22800) or Chapter 14.2 (commencing with Section 22820) or
Chapter 19 (commencing with Section 23200), to the
termination date of the disability allowance.
(2) The disability allowance the member was eligible to receive
immediately prior to termination of that allowance, excluding
children's portions.
(b) Three or more years of creditable service after termination of
the disability allowance, the member shall receive a retirement
allowance that is the greater of the following:
(1) A service retirement allowance calculated on all actual and
projected service excluding service credited pursuant to Sections
22717 and 22717.5 or Chapter 14 (commencing with Section 22800) or
Chapter 14.2 (commencing with Section 22820) or Chapter 19
(commencing with Section 23200), the age of the member on the last
day of the month in which the retirement allowance begins to accrue,
and final compensation using compensation earnable, or projected
final compensation, or a combination of both.
(2) The disability allowance the member was receiving immediately
prior to termination of that allowance, excluding children's
portions.
(c) The allowance shall be increased by an amount based on any
service credited pursuant to Sections 22714, 22715, 22717, and
22717.5 or Chapter 14 (commencing with Section 22800) or Chapter 14.2
(commencing with Section 22820) or Chapter 19 (commencing with
Section 23200), and final compensation using compensation earnable,
or projected final compensation, or a combination of both.
(d) If the total amount of credited service, other than projected
service or service that accrued pursuant to Sections 22714, 22715,
22717, 22717.5, and 22826, is equal to or greater than 30 years, the
amounts identified in subdivisions (a) and (b) shall be calculated
pursuant to Sections 24203.5 and 24203.6.
(e) For purposes of this section, final compensation shall not be
based on a determination of compensation earnable as described in
subdivision (e) of Section 22115.
(f) Upon retirement, the member may elect to modify the service
retirement allowance payable in accordance with any option provided
under this part.
SEC. 35. Section 24212 of the Education Code is amended to read:
24212. (a) If a disability allowance granted under this part
after June 30, 1972, is terminated for reasons other than those
specified in Section 24213 and the member does not return to
employment subject to coverage under the Defined Benefit Program, the
member's service retirement allowance, when payable, shall be based
on projected service, excluding service credited pursuant to Sections
22717 and 22717.5 or Chapter 14 (commencing with Section 22800) or
Chapter 14.2 (commencing with Section 22820) , or Chapter 19
(commencing with Section 23200) , projected final compensation,
and the age of the member on the last day of the month in which the
retirement allowance begins to accrue. The allowance payable under
this section, excluding annuities payable from accumulated annuity
deposit contributions, shall not be greater than the terminated
disability allowance excluding children's portions.
(b) The allowance shall be increased by an amount based on any
service credited pursuant to Sections 22714, 22715, 22717, and
22717.5 or Chapter 14 (commencing with Section 22800) or Chapter 14.2
(commencing with Section 22820) or Chapter 19 (commencing with
Section 23200) and final compensation using compensation earnable, or
projected final compensation, or a combination of both.
(c) If the total amount of credited service, other than projected
service or service that accrued pursuant to Sections 22714, 22715,
22717, 22717.5, and 22826, is equal to or greater than 30 years, the
amounts identified in subdivisions (a) and (b) shall be calculated
pursuant to Sections 24203.5 and 24203.6.
(d) Upon retirement, the member may elect to modify the service
retirement allowance payable in accordance with any option provided
under this part.
SEC. 36. Section 24213 of the Education Code is amended to read:
24213. (a) When a member who has been granted a disability
allowance under this part after June 30, 1972, attains normal
retirement age, or at a later date when there is no dependent child,
the disability allowance shall be terminated and the member shall be
eligible for service retirement. The retirement allowance shall be
calculated on the projected final compensation and projected service
to normal retirement age, excluding service credited pursuant to
Section Sections 22717 or
and 22717.5, or Chapter 14 (commencing with
Section 22800) or Chapter 14.2 (commencing with Section 22820) ,
or Chapter 19 (commencing with Section 23200), and the
age of the member on the last day of the month in which the
retirement allowance begins to accrue . The allowance payable
under this section, excluding annuities payable from accumulated
annuity deposit contributions, shall not be greater than the
terminated disability allowance. The allowance shall be increased by
an amount based on any service credited pursuant to Section 22714,
22715, 22717, or 22717.5, or Chapter 14 (commencing with Section
22800), Chapter 14.2 (commencing with Section 22820), or Chapter 19
(commencing with Section 23200) and projected final compensation to
normal retirement age , excluding children's portions
.
(b) Upon retirement, the member may elect to modify the service
retirement allowance payable in accordance with any option provided
under this part.
SEC. 37. Section 24214.5 of the Education Code is amended to read:
24214.5. (a) (1) Notwithstanding subdivision (f) of Section
24214, the postretirement compensation limitation that shall apply to
the compensation paid in cash to the retired member for performance
of retired member activities, excluding reimbursements paid by an
employer for expenses incurred by the member,
member in which payment of the expenses by the member is
substantiated, shall be zero dollars ($0) during the first 180
calendar days after the most recent retirement of a member retired
for service under this part.
(2) For written agreements pertaining to the performance of
retired member activities entered into, extended, renewed, or amended
on or after January 1, 2014, the limitation in paragraph (1) shall
also apply to payments, including, but not limited to, those for
participation in a deferred compensation plan; to purchase an annuity
contract, tax-deferred retirement plan, or insurance program; and
for contributions to a plan that meets the requirements of Section
125, 401(a), 401(k), 403(b), 457(b), or 457(f) of Title 26 of the
United States Code when the cost is covered by an employer.
(b) If the retired member has attained normal retirement age at
the time the compensation is earned, subdivision (a) shall not apply
and Section 24214 shall apply if the appointment has been approved by
the governing body of the employer in a public meeting, as reflected
in a resolution adopted by the governing body of the employer prior
to the performance of retired member activities, expressing its
intent to seek an exemption from the limitation specified in
subdivision (a). Approval of the appointment may not be placed on a
consent calendar. Notwithstanding any other provision of Article 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code or any state or federal law incorporated by
subdivision (k) of Section 6254 of the Government Code, the
resolution shall be subject to disclosure by the entity adopting the
resolution and the system. The resolution shall include the following
specific information and findings:
(1) The nature of the employment.
(2) A finding that the appointment is necessary to fill a
critically needed position before 180 calendar days have passed.
(3) A finding that the member is not ineligible for application of
this subdivision pursuant to subdivision (d).
(4) A finding that the termination of employment of the retired
member with the employer is not the basis for the need to acquire the
services of the member.
(c) Subdivision (b) shall not apply to a retired member whose
termination of employment with the employer is the basis for the need
to acquire the services of the member.
(d) Subdivision (b) shall not apply if the retired member received
additional service credit pursuant to Section 22714 or 22715 or
received from any public employer any financial inducement to retire.
For purposes of this section, "financial inducement to retire"
includes, but is not limited to, any form of compensation or other
payment that is paid directly or indirectly by a public employer to
the member, even if not in cash, either before or after retirement,
if the participant retires for service on or before a specific date
or specific range of dates established by a public employer on or
before the date the inducement is offered. The system shall liberally
interpret this subdivision to further the Legislature's intent to
make subdivision (b) inapplicable to members if the member received a
financial incentive from any public employer to retire or otherwise
terminate employment with a public employer.
(e) The Superintendent, the county superintendent of schools, or
the chief executive officer of a community college shall submit all
documentation required by the system to substantiate the eligibility
of the retired member for application of subdivision (b), including,
but not limited to, the resolution adopted pursuant to that
subdivision.
(f) The documentation required by this section shall be received
by the system prior to the retired member's performance of retired
member activities.
(g) Within 30 calendar days after the receipt of all documentation
required by the system pursuant to this section, the system shall
inform the entity seeking application of the exemption specified in
subdivision (b), and the retired member whether the compensation paid
to the member will be subject to the limitation specified in
subdivision (a).
(h) If a member retired for service under this part earns
compensation for performing retired member activities in excess of
the limitation specified in subdivision (a), the member's retirement
allowance shall be reduced by the amount of the excess compensation.
The amount of the reduction may be equal to the monthly allowance
payable but may not exceed the amount of the allowance payable during
the first 180 calendar days, after a member retired for service
under this part.
(i) The amendments to this section enacted during the first year
of the 2013-14 Regular Session shall apply to compensation paid on or
after January 1, 2014.
SEC. 38. Section 24300 of the Education Code is amended to read:
24300. (a) A member may, prior to the effective date of
the member's upon application for retirement,
elect an option pursuant to this part that would provide an
actuarially modified retirement allowance payable throughout the life
of the member and the member's option beneficiary or beneficiaries,
as follows:
(1) Option 2. The modified retirement allowance shall be paid to
the retired member. Upon the retired member's death, an allowance
equal to the modified amount that the retired member was receiving
shall be paid to the option beneficiary.
(2) Option 3. The modified retirement allowance shall be paid to
the retired member. Upon the retired member's death, an allowance
equal to one-half of the modified amount that the retired member was
receiving shall be paid to the option beneficiary.
(3) Option 4. The modified retirement allowance shall be paid to
the retired member as long as both the retired member and the option
beneficiary are living. Upon the death of either the retired member
or the option beneficiary, an allowance equal to two-thirds of the
modified amount that the retired member was receiving shall be paid
to the surviving retired member or the surviving option beneficiary.
(4) Option 5. The modified retirement allowance shall be paid to
the retired member as long as both the retired member and the option
beneficiary are living. Upon the death of either the retired member
or the option beneficiary, an allowance equal to one-half of the
modified amount that the retired member was receiving shall be paid
to the surviving retired member or surviving option beneficiary.
(5) Option 6. The modified retirement allowance shall be paid to
the retired member and upon the retired member's death, an allowance
equal to the modified amount that the retired member was receiving
shall be paid to the option beneficiary. However, if the
option beneficiary predeceases the retired member, the retirement
allowance without modification for the option shall be payable to the
retired member. If the option beneficiary predeceases the retired
member, the retired member may designate a new option beneficiary.
The effective date of the new designation shall be six months
following the date notification is received by the board, so long as
both the retired member and the designated option beneficiary are
then living. Notification shall be on a properly executed form for
the new designation. The designation of the new option beneficiary
under this subdivision is subject to an actuarial modification of the
unmodified retirement allowance and shall not result in any
additional liability to the fund. The new option beneficiary shall
not be an existing option beneficiary.
(6) Option 7. The modified retirement allowance shall be paid to
the retired member and upon the retired member's death, an allowance
equal to one-half of the modified amount the retired member was
receiving shall be paid to the option beneficiary. However,
if the option beneficiary predeceases the retired member, the
retirement allowance without modification for the option shall be
payable to the retired member. If the option beneficiary predeceases
the retired member, the retired member may designate a new option
beneficiary. The effective date of the new designation shall be six
months following the date notification is received by the board,
provided both the retired member and the designated option
beneficiary are then living. Notification shall be on a properly
executed form for the new designation. The designation of the new
option beneficiary under this subdivision is subject to an actuarial
modification of the unmodified retirement allowance and shall not
result in any additional liability to the fund. The new option
beneficiary shall not be an existing option beneficiary.
(7) Option 8. (A) Any member, prior to the effective
date of the member's retirement, A member may
designate multiple option beneficiaries. The member who has
designated more than one option beneficiary shall elect an option
that the member is authorized to elect subject to subdivision (e) for
each beneficiary designated that would provide an actuarially
modified retirement allowance payable throughout the lives of the
member and the member's option beneficiaries upon the member's
death .
(B) The modified retirement allowance shall be paid to the retired
member as long as the retired member and at least one of the option
beneficiaries are living. Upon the retired member's death, an
allowance shall be paid to each surviving option beneficiary in
accordance with the option elected respective to that beneficiary.
However, if one or more of the option beneficiaries
predeceases the retired member, the retired member's allowance shall
be adjusted in accordance with the option elected for the deceased
beneficiary. The member shall determine the percentage of
the unmodified allowance that will be modified by the election of
Option 2, Option 3, Option 4, Option 5, Option 6, or Option 7 within
this option, the aggregate of which shall equal 100 percent of the
member's unmodified allowance. The election of this option is subject
to approval by the board.
(C) A member who is a party to an action for legal separation or
dissolution of marriage and who is required by court order to
designate a spouse or former spouse as an option beneficiary may
designate his or her spouse or former spouse as a sole option
beneficiary under subparagraphs (A) and (B). The member shall specify
the option elected for the spouse or former spouse and the
percentage of his or her unmodified allowance to be modified by the
option, consistent with the court order. The percentage of the member'
s unmodified allowance that is not modified by the option shall
remain an unmodified allowance payable to the member. The aggregate
of the percentages specified for the option beneficiary and the
member's remaining unmodified allowance, if any, shall equal 100
percent.
(b) For purposes of this section, the member shall designate an
option beneficiary on a form prescribed by the system, which
shall be duly executed and filed with the system at the time of the
member's retirement properly executed retirement
application. Except as otherwise provided by this chapter,
the option shall become effective on the member's benefit effective
date .
(c) A member may revoke or change an election of an option at any
time prior to the effective date of the member's retirement under
this part. A revocation or change of an option may not be made in
derogation of a spouse's or former spouse's community property rights
as specified in a court order.
(d) On or before July 1, 2004, the board shall evaluate the
existing options and annuities provided pursuant to this section,
Chapter 38 (commencing with Section 25000) of this part, and Part 14
(commencing with Section
26000) and adopt, as a plan amendment, any appropriate changes to the
options and annuities based on the needs of members, participants,
and their beneficiaries, including, but not limited to, providing
economic security for beneficiaries and reducing complexity in the
election of options and annuities by members and participants. The
changes to the options and annuities may have no net actuarial impact
on the retirement fund, and the board may establish any eligibility
criteria it deems necessary to prevent an adverse actuarial impact to
the fund. The board shall designate the effective date of the plan
amendment, which shall be at least 18 months after the amendment is
adopted by the board, and notwithstanding any other provision of this
section, the options and annuities available to members and
participants eligible to retire pursuant to this part and Part 14
(commencing with Section 26000), after the effective date of the plan
amendment made pursuant to this subdivision, shall reflect the
changes adopted as a plan amendment pursuant to this subdivision.
(e) Any member or participant who retired and elected an option or
a joint and survivor annuity, or who filed a preretirement election
of an option prior to the effective date of the plan amendment made
pursuant to subdivision (d), may elect to change to a different
option or joint and survivor annuity, as modified by the board as a
plan amendment pursuant to subdivision (d), if the member or
participant meets all the criteria established by the board to
prevent a change in an option or joint and survivor annuity from
having an adverse actuarial impact on the retirement fund, including,
but not limited to, the effective date of a new designation or
limitations on any changes if a member or participant, as the case
may be, or beneficiary, or both, is currently not living or afflicted
with a known terminal illness. The member or participant shall
designate the change during the six-month period that begins with the
effective date of the plan amendment, on a form prescribed by the
system. Any member changing an option election pursuant to this
subdivision is not subject to the allowance reduction prescribed in
Section 24309 or 24310 as a result of the election. If a member or
participant elects to change his or her option or joint and survivor
annuity under this subdivision, the member or participant shall
retain the same option beneficiary or beneficiaries as named in the
prior designation.
(f) The Legislature reserves the right to modify this section
prior to the effective date of the plan amendment made pursuant to
subdivision (d) to prevent any actuarial impact to the fund.
(g) Except as described in subdivision (d) of Section
24300.1, on On or after January 1, 2007, a
member may not make a new election for an option or joint and
survivor annuity described in subdivision (a).
(h) Any member with a retirement effective on or after January 1,
2007, shall elect an option from the options described in Section
24300.1. Any member making a new option election under the provisions
of Section 24300.6, 24305.5, or 24306 24320,
24321, 24322, or 24323 shall elect an option from the options
described in Section 24300.1 if the effective date of the new option
election is on or after January 1, 2007.
SEC. 39. Section 24300.1 of the Education Code is amended to read:
24300.1. (a) A member may, upon application for retirement, elect
an option pursuant to this part that would provide an actuarially
modified retirement allowance payable throughout the life of the
member and the member's option beneficiary or beneficiaries, as
follows:
(1) One hundred percent beneficiary option. The modified
retirement allowance shall be paid to the member and upon the
retired member's death, 100 percent of the modified allowance
shall continue to be paid to the option beneficiary.
(2) Seventy-five percent beneficiary option. The modified
retirement allowance shall be paid to the member and upon the
retired member's death, 75 percent of the modified allowance
shall continue to be paid to the option beneficiary. Pursuant to
Section 401(a)(9) of the Internal Revenue Code, unless the option
beneficiary is the member's spouse or former spouse who has been
awarded a community property interest in the benefits of the member
under this part, the member may not designate an option beneficiary
under this option who is more than exactly 19 years younger than the
member.
(3) Fifty percent beneficiary option. The modified retirement
allowance shall be paid to the retired member and upon the
death of the member members' death ,
50 percent of the modified allowance shall continue to be paid to the
option beneficiary.
(4) Compound option. The member may designate multiple option
beneficiaries or one or multiple option beneficiaries with a
designated percentage to remain unmodified. The member shall elect an
option as described in paragraph (1), (2), or (3) for each
designated option beneficiary that would provide an actuarially
modified retirement allowance payable throughout the lives of the
retired member and the member's option beneficiary or
beneficiaries upon the member's death .
(A) The modified retirement allowance shall be paid to the member
as long as the member and at least one option beneficiary is living.
Upon the member's death, an allowance shall be paid to each surviving
option beneficiary in accordance with the option elected respective
to that option beneficiary. If an option beneficiary
predeceases the member, the member's allowance shall be adjusted in
accordance with the option elected for the deceased option
beneficiary.
(B) The member shall specify the percent of the unmodified
allowance that will be modified by the election of each option
described in paragraph (1), (2), or (3) of this subdivision. The
percent of the unmodified allowance that is not modified by an
option, if any, shall be payable to the member. The sum of the
percentages specified for the option beneficiary or beneficiaries and
the member's remaining unmodified allowance, if any, shall equal 100
percent.
(C) The member's election of the compound option is subject to all
of the following:
(i) Pursuant to Section 401(a)(9) of the Internal Revenue Code,
unless the option beneficiary is the member's spouse or former spouse
who has been awarded a community property interest in the member's
benefits under this part, the member may not designate an option
beneficiary under the 100 percent beneficiary option within this
compound option who is more than exactly 10 years younger than the
member.
(ii) Pursuant to Section 401(a)(9) of the Internal Revenue Code,
unless the option beneficiary is the member's spouse or former spouse
who has been awarded a community property interest in the member's
benefits under this part, the member may not designate an option
beneficiary under the 75 percent beneficiary option within this
compound option who is more than exactly 19 years younger than the
member.
(b) For purposes of this section, the member shall designate an
option beneficiary on a properly executed retirement application.
Except as otherwise provided by this chapter, the option shall become
effective on the member's retirement benefit
effective date.
(c) A member may revoke or change an election of an option no
later than 30 days from the date the member's initial benefit payment
for the member's most recent retirement under the Defined Benefit
Program is paid by the system. A revocation of an option may not be
made in derogation of a spouse's or a former spouse's community
property rights as specified in a court order.
(d) If an option beneficiary designated pursuant to paragraphs (1)
to (3), inclusive, of subdivision (a) predeceases the member, the
retirement allowance shall be paid to the member without modification
for the option. If the option beneficiary predeceases the member,
the member may designate a new option beneficiary. The effective date
of the new designation shall be six months following the date of
notification is received by the board, provided both the member and
the designated option beneficiary are then living. Notification shall
be on a properly executed form provided by the system. The
designation of the new option beneficiary pursuant to this
subdivision is subject to an actuarial modification of the unmodified
retirement allowance and may not result in additional liability to
the fund. The new option beneficiary cannot be an existing option
beneficiary.
(e)
(d) Notwithstanding Section 297 or 299.2 of the Family
Code, a spouse described in paragraphs (2) and (4) of subdivision (a)
does not include the domestic partner of the member, pursuant to
Section 7 of Title 1 of the United States Code.
(f)
(e) If there is a determination of community property
rights as described in Chapter 12 (commencing with Section 22650) of
this part on or before December 31, 2006, the member may elect the
option that is required by the judgment or court order. Nothing in
this part shall permit the member to change the option to the
detriment of the community property interest of the nonmember spouse.
(g)
(f) The board may evaluate the existing options and
annuities provided pursuant to this section, Chapter 38 (commencing
with Section 25000) of this part, and Part 14 (commencing with
Section 26000) and adopt, as a plan amendment, any appropriate
changes to the options and annuities based on the needs of the
members, participants, and their beneficiaries, including, but not
limited to, providing economic security for beneficiaries and
reducing the complexity of the options and annuities. The changes to
the options and annuities may have no net actuarial impact on the
retirement fund and the board may establish any eligibility criteria
the board deems necessary to prevent an adverse actuarial impact to
the fund. The board shall designate the effective date of the plan
amendment, which shall be at least 18 months after the amendment is
adopted by the board, and notwithstanding any other provision of this
section, the options and annuities available to members and
participants eligible to retire pursuant to this part and Part 14
(commencing with Section 26000), after the effective date of the plan
amendment made pursuant to this subdivision, shall reflect the
changes adopted as a plan amendment to this subdivision.
SEC. 40. Section 24300.2 of the Education Code is amended and
renumbered to read:
24300.2. 24345. (a) A member who
retired and elected an option pursuant to Section 24300 may elect to
change options, subject to all of the following:
(1) A member who elected Option 2 may elect to change to the
100-percent beneficiary option described in paragraph (1) or the
75-percent beneficiary option described in paragraph (2) of
subdivision (a) of Section 24300.1.
(2) A member who elected Option 3, Option 4, or Option 5 may elect
to change to the 75-percent beneficiary option described in
paragraph (2) or the 50-percent beneficiary option described in
paragraph (3) of subdivision (a) of Section 24300.1.
(3) A member who elected Option 6 or Option 7 may elect to change
to the 75-percent beneficiary option described in paragraph (2) of
subdivision (a) of Section 24300.1.
(4) A member who elected Option 8 may elect to have any designated
percentage of his or her unmodified allowance changed in accordance
with paragraph (1), (2), or (3).
(5) The election by a member under this section is made on or
after January 1, 2007, and prior to July 1, 2007.
(6) The member designates the same beneficiary that was designated
under the prior option elected by the member, if the option and
beneficiary designation were effective on or before December 31,
2006.
(7) The member and the option beneficiary are not afflicted with a
known terminal illness and the member declares, under penalty of
perjury under the laws of this state, that to the best of his or her
knowledge, he or she and the option beneficiary are not afflicted
with a known terminal illness.
(8) The option beneficiary has not predeceased the member as of
the effective date of the change in the option by the member.
(b) The change in the option by the member shall be effective on
the date the election is signed, provided that the election is on a
properly executed form provided by the system and that election is
received at the system's headquarters office within 30 days after the
date the election is signed.
(c) After receipt of a member's election document, the system
shall mail an acknowledgment notice to the member that sets forth the
new option elected by the member.
(d) If the member and the option beneficiary are alive and not
afflicted with a known terminal illness, a member may cancel the
election to change options and elect to receive the benefit according
to the preexisting option election. After cancellation, the member
may elect to make a one-time change from the preexisting option to
any other option provided by and subject to the restrictions of
paragraph (1), (2), (3), or (4) of subdivision (a). The cancellation
or the cancellation and one-time change shall be made on a properly
executed form provided by the system and shall be received at the
system's headquarters office no later than 30 calendar days following
the date of mailing of the acknowledgment notice. If the member
elects to make the one-time change provided by this subdivision, the
change shall be effective as of the member's signature date on the
initial election to change.
(e) If the system is unable to mail an acknowledgment notice to
the member on or before June 1, 2007, or prior to the end of the
election period, provided that the member and the option beneficiary
are alive and not afflicted with a known terminal illness, the system
shall allow a member to cancel the election to change options and
elect to receive the benefit according to the preexisting option
election. After cancellation, the member may elect to make a one-time
change from the preexisting option to any other option provided by
and subject to the restrictions of paragraph (1), (2), (3), or (4) of
subdivision (a). The cancellation or the cancellation and one-time
change may be made after the end of the election period if it is made
on a properly executed form provided by the system and is received
at the system's headquarters office no later than 30 days following
the date of the acknowledgment notice. If the member elects to make
the one-time change provided by this subdivision, the change shall be
effective as of the member's signature date on the initial election
to change.
(f) If the member elects to change his or her option as described
in subdivision (a), the retirement allowance of the member shall be
modified in a manner determined by the board to prevent any
additional liability to the plan.
(g) The member shall not change options in derogation of a spouse'
s or former spouse's community property rights as specified in a
court order.
SEC. 41. Section 24300.5 of the Education Code is amended and
renumbered to read:
24300.5. 24345. An option
beneficiary who is receiving an allowance pursuant to the option
elected by the member may designate a beneficiary to receive any
allowance that has accrued and is unpaid, and any remaining balance
of the retired member's accumulated retirement contributions payable
pursuant to Section 23881, upon the death of the option beneficiary.
SEC. 42. Section 24300.6 of the Education Code is amended and
renumbered to read:
24300.6. 24321. (a) Any retired
member who was unmarried and not in a registered domestic partnership
on the benefit effective date of retirement
who did not elect an option pursuant to Section 24300
or , 24300.1, or 24307, and
who thereafter marries or registers in a domestic partnership, may,
after the effective date of the member's retirement under this part,
elect an option described in paragraph (1), (2), or (3) of
subdivision (a) of Section 24300.1, naming his or her new spouse or
registered domestic partner as the option beneficiary, subject to all
of the following:
(1) The retired member shall have been married or registered in a
domestic partnership for at least one year prior to making the
election of the option.
(2) The retired member shall notify the board, in writing on a
properly executed form provided by the system, of the election of the
option and the designation of the member's new spouse or registered
domestic partner as the option beneficiary. That notice shall include
a certified copy of the marriage certificate or the certificate of
registration of domestic partnership.
(3) The election of an option under this section is subject to
approval by the board. A retired member may not elect a joint and
survivor option that would result in any additional liability to the
retirement fund. A retired member may not elect the compound option
described in paragraph (4) of subdivision (a) of Section 24300.1.
(4) The election shall be effective six months after the date the
notification is received by the board, provided that both the retired
member and the retired member's designated spouse or registered
domestic partner are then living. If the effective date of the new
option election is on or after January 1, 2007, at the time of the
new election the retired member shall elect an option from the
options described in paragraph (1), (2),
or (3) of subdivision (a) of Section 24300.1. If, before
the new election becomes effective, the member terminates his or her
benefit pursuant to Section 24208 or the retired member or the new
option beneficiary dies, the new election is void and the unmodified
election remains in effect.
(b) The election of the option and designation of the option
beneficiary under this section shall result in an actuarial
modification of the member's retirement allowance that shall be
payable through the life of the member and the member's new spouse or
registered domestic partner. Modification of the member's retirement
allowance pursuant to this section shall be based on the ages of the
retired member and the retired member's new spouse or registered
domestic partner as of the effective date of the election.
SEC. 43. Section 24301 of the Education Code is amended and
renumbered to read:
24301. 24332. (a) A member upon
application for a disability retirement pursuant to Chapter 26
(commencing with Section 24100), may elect, as provided in Section
24300 or 24300.1 to receive an actuarially modified disability
retirement allowance.
(b) For purposes of this section, the member shall either elect to
receive an unmodified allowance or designate an option beneficiary
on a properly executed form prescribed by the system, either of which
shall be filed with the system on or before the last day of the
month in which the member's disability retirement is approved by the
system. The option shall become effective on the effective date of
the disability retirement allowance. The modification of the
disability retirement allowance under the option elected shall be
based on the ages of the retired member and the designated option
beneficiary as of the effective date of the disability retirement.
The modification shall be applicable only to the disability
retirement allowance payable pursuant to subdivision (a) of Section
24106.
(c) Except as provided in Sections 24300, 24300.1,
24300.6, 24305, 24305.5, and 24306, 24320,
24321, 24322, and 24323, a member may revoke or change an
election of an option no later than 30 days from the date of the
member's initial disability retirement benefit payment.
(d) If a member dies prior to electing an unmodified allowance or
an option, the death benefits shall be payable under Chapter 23
(commencing with Section 23850), regardless of whether the disability
retirement application is or would have been approved.
SEC. 44. Section 24302 of the Education Code is amended and
renumbered to read:
24302. 24311. Upon termination of a
service retirement allowance pursuant to Section 24208, any option
elected pursuant to Section 24300 or 24300.1 and in effect at the
time of reinstatement shall be considered to be a preretirement
election of an option elected as of the effective date of
that the most recent retirement and shall be
subject to the same provisions as an option elected under Section
24307.
SEC. 45. Section 24303 of the Education Code is amended and
renumbered to read:
24303. 24312. Termination of the
service retirement allowance pursuant to Section 24208 shall not
cancel an option elected under the provisions of Section
24300, 24300.1, or 24307. The option elected shall
remain in effect, unchanged, and shall be reapplied to the allowance
payable upon the subsequent service retirement. The
effective date of the option shall be considered the
effective date of the terminated service retirement allowance as
described in Section 24302 remain the
original election date pursuant to Section 24307 .
SEC. 46. Section 24304 of the Education Code is amended and
renumbered to read:
24304. 24333. Upon termination of a
disability retirement allowance pursuant to Section 24117, any
option elected at the time of retirement pursuant to Section
24301 24332 shall be void as of the effective
date of the reinstatement. The preretirement election of option
subsequent to termination of the allowance pursuant to Section 24117
shall be subject to the following:
(a) A member may not make a preretirement election of option
pursuant to Section 24307 prior to becoming qualified to make
application for service retirement under Section 24201 or Section
24203.
(b) A member who was receiving an unmodified disability retirement
allowance prior to termination of the allowance may not make a
preretirement election of option earlier than six months following
the date on which the disability retirement allowance was terminated
pursuant to Section 24117.
(c) A member who has elected an option pursuant to Section
24301 24332 , and is otherwise eligible
to make a preretirement election of an option, may make the election
anytime during the six months following the date on which the
disability retirement allowance was terminated pursuant to Section
24117. The member shall elect the same option and designate the same
option beneficiary as designated under Section 24301
24332 when making the election during the
six-month period following the date the disability retirement
allowance was terminated.
SEC. 47. Section 24305 of the Education Code is amended and
renumbered to read:
24305. 24322. (a) An option elected
under Section 24300 or , 24300.1
, or 24307 may be canceled by a retired member if the option
beneficiary is the retired member's spouse or former spouse and a
final decree of dissolution of marriage or a judgment of nullity has
been entered or an order of separate maintenance has been made on or
after January 1, 1978, by a court of competent jurisdiction. A
retired member may cancel the option before or after issuance of the
first retirement allowance payment.
(b) The retired member shall notify the board in writing of
cancellation of the option. Notification shall not be earlier than
the effective date of the decree, judgment, or order and shall
include a certified copy of the final decree of dissolution, or
judgment of nullity, or an order of separate maintenance, and any
property settlement agreement.
(c) Upon notification to the board, the retired member may
elect elect: (1) to receive the
unmodified retirement allowance from the date of receipt of the
notification; or (2) a new joint and survivor option under Section
24300.1 and may designate one or multiple new option beneficiaries.
Modification of the retirement allowance because of the newly elected
option or newly designated beneficiary or beneficiaries shall be
based on the ages of the retired member and the new option
beneficiary or beneficiaries as of the effective date of the new
option. The election of a new joint and survivor option or the
designation of a new option beneficiary or beneficiaries shall be
consistent with the final decree of dissolution, judgment of nullity,
order of separate maintenance, or property settlement agreement, and
shall not result in any additional liability to the Teachers'
Retirement Fund. The effective date of the change shall be the date
notification is received by the board.
SEC. 48. Section 24305.3 of the Education Code, as amended by
Section 39 of Chapter 655 of the Statutes of 2006, is amended and
renumbered to read:
24305.3. 24324. (a) A member who is
receiving a joint and survivor annuity under the Defined Benefit
Supplement Program may change the annuity or the annuity beneficiary
elected pursuant to Section 25011, 25011.1, 25018, or 25018.1,
provided all of the following conditions are met:
(1) The annuity beneficiary is the member's spouse or former
spouse.
(2) A final decree of dissolution of marriage is granted, or a
judgment of nullity is entered, or an order of separate maintenance
is made by a court of competent jurisdiction with respect to the
member and the spouse or former spouse on or after the beginning of
the initial plan year designated by the board pursuant to Section
22156.05.
(3) The change is consistent with the final decree of dissolution,
judgment of nullity, or order of separate maintenance.
(b) A member may change the annuity pursuant to subdivision (a)
before or after the first annuity payment is issued.
(c) The member shall notify the system in writing of the change in
the annuity. The notification shall not be earlier than the
effective date of the final decree of dissolution, judgment of
nullity, or order of separate maintenance and shall include a
certified copy of the final decree of dissolution, judgment of
nullity, or order of separate maintenance, and any property
settlement agreement.
(d) A change in the annuity or annuity beneficiary or both shall
become effective on the date the notification of change is received
by the system. The annuity amount payable to the member upon the
change elected by the member shall be determined as of the effective
date of the change and shall be the actuarial equivalent of the lump
sum that would otherwise be
payable to the member as of the date of the change. If the member
elects a joint and survivor annuity, the amount payable under the
annuity shall be modified consistent with the annuity elected by the
member.
SEC. 49. Section 24305.3 of the Education Code, as added by
Section 56 of Chapter 74 of the Statutes of 2000, is repealed.
24305.3. (a) A member who is receiving a joint and survivor
annuity under the Defined Benefit Supplement Program may change the
annuity or the annuity beneficiary elected pursuant to Section 25011
or 25018 provided all of the following conditions are met:
(1) The annuity beneficiary is the member's spouse or former
spouse.
(2) A final decree of dissolution of marriage is granted, or a
judgment of nullity is entered, or an order of separate maintenance
is made by a court of competent jurisdiction with respect to the
member and the spouse or former spouse on or after the beginning of
the initial plan year designated by the board pursuant to Section
22156.05.
(3) The change is consistent with the final decree of dissolution,
judgment of nullity, or order of separate maintenance.
(b) A member may change the annuity pursuant to subdivision (a)
before or after the first annuity payment is issued.
(c) The member shall notify the system in writing of the change in
the annuity. The notification shall not be earlier than the
effective date of the final decree of dissolution, judgment of
nullity, or order of separate maintenance and shall include a
certified copy of the final decree of dissolution, judgment of
nullity, or order of separate maintenance, and any property
settlement agreement.
(d) A change in the annuity or annuity beneficiary or both shall
become effective on the date the notification of change is received
by the system. The annuity amount payable to the member upon the
change elected by the member shall be determined as of the effective
date of the change and shall be the actuarial equivalent of the
lump-sum that would otherwise be payable to the member as of the date
of the change. If the member elects a joint and survivor annuity,
the amount payable under the annuity shall be modified consistent
with the annuity elected by the member.
SEC. 50. Section 24305.5 of the Education Code is amended and
renumbered to read:
24305.5. 24320. (a) An option
elected under Section 24300 or 24300.1 may be canceled by a retired
member if the option beneficiary is not the retired member's spouse
or former spouse. A retired member may cancel the option before or
after issuance of the first retirement allowance payment and shall
designate his or her spouse as the new option beneficiary and the
same or a different joint and survivor option described in Section
24300.1.
(b) The retired member shall notify the board, in writing on a
properly executed form provided by the system, of the designation of
the new option beneficiary. Notification shall include a certified
copy of the marriage certificate and a properly executed form for the
change.
(c) The effective date of the new election shall be six months
following the date notification is received by the board, provided
both the retired member and the new designated option beneficiary are
then living. If the effective date of the new option election is on
or after January 1, 2007, at the time of the new election the retired
member shall elect an option from the options described in Section
24300.1. If, before the new election becomes
effective, the member terminates his or her benefit pursuant to
Section 24208 or the retired member or the new option beneficiary
dies, the new election is void and the previous election
remains in effect.
(d) The election of the option and designation of the option
beneficiaries under this section and Section 24300.1 shall be subject
to an actuarial modification of the retirement allowance. In no
event may a retired member elect a joint and survivor option that
would result in any additional liability to the fund. A retired
member may not elect the compound option described in paragraph (4)
of subdivision (a) of Section 24300.1. Modification of the retirement
allowance because of the new option beneficiary and the new option
shall be based on the ages of the retired member and the new option
beneficiary as of the effective date of the new election.
SEC. 51. Section 24306 of the Education Code is amended and
renumbered to read:
24306. 24323. (a) (1)
If an option beneficiary designated in
the election of an Option 2, 2 or
Option 3, Option 4, or Option 5 3 as
described in Section 24300 predeceases the retired member, the
retired member may elect a new joint and survivor option described in
paragraphs (1) to (4), inclusive, paragraph
(1), (2), (3), or (4) of subdivision (a) of Section 24300.1 and
designate one or multiple new option beneficiaries.
(b) If an option beneficiary designated in the election of an
Option 4 or Option 5 as described in Section 24300 predeceases the
retired member, a retirement allowance adjusted for the specified
option shall be payable to the retired member and shall commence to
accrue to the retired member as of the day following the date of the
death of the option beneficiary. The retired member may elect a new
joint and survivor option described in paragraph (1), (2), (3), or
(4) of subdivision (a) of Section 24300.1 and designate one or
multiple new option beneficiaries.
(2)
(c) If an option beneficiary designated in the election
of Option 2, 2 or Option 3,
Option 4, or Option 5 3 within Option 8 as
described in Section 24300 , predeceases the retired
member, the retired member may elect a new joint and
survivor option described in paragraph (1), (2), or (3) of
subdivision (a) of Section 24300.1 and designate a new option
beneficiary for the portion of the retirement allowance that was
modified for the prior option beneficiary. The retired
member may not elect the compound option described in paragraph (4)
of subdivision (a) of Section 24300.1.
(3) The effective date of the change shall be six months following
the date notification is received by the board, provided both the
retired member and the designated option beneficiary are then living.
Notification shall include proof of death of the predeceased
beneficiary and a properly executed form provided by the system. If
the effective date of the new option election is on or after January
1, 2007, at the time of the new election the retired member shall
elect an option from the options described in Section 24300.1.
(4) The election of the new joint and survivor option under this
subdivision and Section 24300.1 is subject to an actuarial
modification of the retirement allowance. In no event may a retired
member elect a joint and survivor option that would result in any
additional liability to the fund.
(d) If an option beneficiary designated in the election of Option
4 or 5 within Option 8 as described in Section 24300 predeceases the
retired member, a retirement allowance adjusted for the specified
option for the portion of the benefit allocated to that beneficiary
shall be payable to the retired member and shall commence to accrue
to the retired member as of the day following the date of the death
of the option beneficiary. The retired member may elect a new joint
and survivor option described in paragraph (1), (2), or (3) of
subdivision (a) of Section 24300.1 for that portion of the retirement
allowance that was modified for the prior option beneficiary and
designate a new option beneficiary. The retired member may not elect
the compound option described in paragraph (4) of subdivision (a) of
Section 24300.1.
(b)
(e) If an option beneficiary designated in the election
of an Option 6 or Option 7 or in the election of Option 6 or Option
7 within Option 8, pursuant to Section 24300 predeceases the retired
member, that portion of the retirement allowance attributable to
Option 6 or Option 7 without modification for the option shall be
payable to the retired member upon notification to the board and
shall commence to accrue to the retired member as of the day
following the date of the death of the option beneficiary.
Notification to the board shall include proof of death of the
beneficiary. The retired member
may designate a new beneficiary for that portion of the retirement
allowance within the same option designated for the prior
beneficiary.
(c)
(f) If an option beneficiary designated in the election
of an option pursuant to paragraphs (1) to (3), inclusive,
paragraph (1), (2), (3), or (4)
of subdivision (a) of Section 24300.1 predeceases the member,
that portion of the retirement allowance attributable to the option
without modification for the option shall be payable to the member
upon notification to the board and shall commence to accrue to the
retired member as of the day following the date of the death of the
option beneficiary. Notification to the board shall include proof of
death of the beneficiary. The retired member may designate a new
beneficiary for that portion of the retirement allowance within the
same option designated for the prior beneficiary.
(g) The retired member shall submit proof of death of the prior
beneficiary before making a new beneficiary election under this
section. The effective date of any new election under this section
shall be six months following the date notification is received by
the board provided both the retired member and the newly designated
option beneficiary are living the date the new election is to become
effective. Notification shall be on a properly-executed form
prescribed by the system for the new designation.
(h) If, before the new election becomes effective, the member
reinstates pursuant to Section 24208 or the retired member or new
option beneficiary dies, the new election is void.
(i) If the retired member is eligible to elect a new option and
the effective date of the new option election is on or after January
1, 2007, at the time of the new election the retired member shall
elect an option from the options described in Section 24300.1.
(j) The election of the new joint and survivor option under this
section and Section 24300.1 is subject to an actuarial modification
of the retirement allowance. In no event may a retired member elect a
joint and survivor option that would result in any additional
liability to the fund.
(k) The new option beneficiary cannot be an existing option
beneficiary for that member designated under paragraph (7) of
subdivision (a) of Section 24300 or paragraph (4) of subdivision (a)
of Section 24300.1.
SEC. 52. Section 24306.5 of the Education Code is amended and
renumbered to read:
24306.5. 24341. (a) A member who
retired for service under Option 2 or Option 3 with an effective date
prior to January 1, 1991, may elect to change Option 2 to Option 6
or Option 3 to Option 7 under all of the following conditions:
(1) The election is made during the six-month period commencing
July 1, 1994, and ending December 31, 1994.
(2) The same beneficiary under Option 2 or Option 3 is named as
beneficiary under Option 6 or Option 7.
(3) The change in options is consistent with Sections 22453 and
24305 24322 .
(4) The option beneficiary is not afflicted with any known
terminal illness and the retired member shall state under penalty of
perjury that to the best of his or her knowledge the option
beneficiary is not afflicted with any known terminal illness.
(5) The option beneficiary has not predeceased the retired member
as of the effective date of the change in options.
(b) The change in options shall be effective on the date the
election is signed, provided that the election is received at the
system's headquarters office within 30 days after the date of the
signature.
(c) If an election to change options is made pursuant to this
section, the modified allowance shall be reduced in a manner
determined by the board to ensure that no additional liability shall
be incurred by the plan pursuant to this section.
SEC. 53. Section 24306.7 of the Education Code is amended and
renumbered to read:
24306.7. 24324. (a) Any member who
retired for service under Option 4 or Option 5 with an effective date
prior to January 1, 1991, may elect to change Option 4 to Option 6
or Option 5 to Option 7 if all of the following conditions are met:
(1) The election is made during the three-month period commencing
January 1, 1999, and ending March 31, 1999.
(2) The same beneficiary under Option 4 or Option 5 is named as
beneficiary under Option 6 or Option 7.
(3) The change in options is consistent with Sections 22453 and
24305 24322 .
(4) The option beneficiary is not afflicted with any known
terminal illness.
(5) The option beneficiary has not predeceased the retired member
as of the effective date of the change in option.
(6) The election to change the option under this section is
received at the system's headquarters office as described in
Section 22375 at least 30 days prior to the death of the
option beneficiary.
(b) Failure to satisfy all of the conditions in subdivision (a)
shall render the change of election invalid.
(c) The change in options under this section shall be effective on
the date the election is signed, provided all the conditions set
forth in subdivision (a) are satisfied and the election is received
at the system's headquarters office within 30 days after the date of
the signature.
(d) The election of a new joint and survivor option under this
section is subject to a further modification of the modified
retirement allowance. In no event may a retired member elect a joint
and survivor option that would result in any additional liability to
the fund.
SEC. 54. Section 24307 of the Education Code is amended to read:
24307. (a) A member who qualifies to apply for retirement under
Section 24201 or 24203 may make a preretirement election of an
option, as provided in Section 24300.1 without right of revocation or
change after the benefit effective date of
retirement , except as provided in this part. The
preretirement election of an option shall become effective as of the
date of the member's signature on a properly executed form prescribed
by the system, subject to the following requirements:
(1) The form includes the signature of the member's spouse or
registered domestic partner, if applicable, and the
signature is dated, and the date of the signature is within
30 days of the member's signature dated .
(2) The date the form is received at the system's headquarters
office is within 30 days of after the
date of the member's signature and within 30 days of the
date of the spouse or registered domestic partner's signature, if
applicable , if applicable, the
spouse's or registe red domestic partner's signature
.
(b) A member who makes a preretirement election of an Option 2,
Option 3, Option 4, Option 5, Option 6, or Option 7 pursuant to
Section 24300, or an election as described in paragraph (1), (2), or
(3) of Section 24300.1 may subsequently make a preretirement election
of the compound option described in paragraph (4) of subdivision (a)
of Section 24300.1. The member may retain the same option and the
same option beneficiary as named in the prior preretirement election
for a designated percentage within the compound option.
(c) Upon the member's death prior to the benefit
effective date of retirement , the beneficiary who
was designated under the option elected and who survives shall
receive an allowance calculated under the option, under the
assumption that the member retired for service pursuant to Chapter 27
(commencing with Section 24201) on the date of death. The payment of
the allowance to the option beneficiary shall be in lieu of the
family allowance provided in Section 23804, the payment provided in
paragraph (1) of subdivision (a) of Section 23802, the survivor
benefit allowance provided in Section 23854, and the payment provided
in subdivisions (a) and (b) of Section 23852, except that if the
beneficiary dies before all of the member's accumulated retirement
contributions are paid, the balance, if any, shall be paid to the
estate of the person last receiving or entitled to receive the
allowance. The accumulated annuity deposit contributions and the
death payment provided in Sections 23801 and 23851 shall be paid to
the beneficiary in a lump sum.
(d) If the member subsequently retires for service, and the
elected option has not been canceled pursuant to Section 24309, a
modified service retirement allowance computed under Section 24300 or
24300.1 and the option elected shall be paid.
(e) The amount of the service retirement allowance prior to
applying the option factor shall be calculated as of the earlier of
the member's age at death before retirement or age on the last day of
the month in which the member requested service retirement be
effective. The modification of the service retirement allowance by
the option elected shall be based on the ages of the member and the
beneficiary designated under the option, as of the date the election
was signed.
(f) A member who terminates the service retirement allowance
pursuant to Section 24208 shall not be eligible to file a
preretirement election of an option until one calendar year elapses
from the date the allowance is terminated. If the member retires
again within one calendar year of the termination of their benefit
pursuant to Section 24208, the retired member shall keep,
upon subsequent retirement, the option and beneficiary or the
unmodified election in place upon the date the termination of the
benefits became effective.
(1) If the member's option beneficiary or beneficiaries predecease
the member within one calendar year of the termination of benefits
and before the member has retired again, upon notification to the
system, the system shall remove the option and beneficiary from that
portion of the benefit with modification pursuant to Section 24307.5.
The member shall not elect a new option or beneficiary until one
calendar year from the termination effective date has elapsed.
(2) If a final decree of dissolution of marriage or a judgment of
nullity has been entered or an order of separate maintenance has been
made within one calendar year of the termination of benefits and the
member has not retired again, upon notification to the system, the
system shall remove or change the option election in accordance with
the court order with modification pursuant to Section 24307.5. Any
additional changes shall not be made until one calendar year from the
termination effective date has elapsed.
(g) The system shall inform members who are qualified to make a
preretirement election of an option, through the annual statements of
account, that the election of an option can be made.
SEC. 55. Section 24308 of the Education Code is amended and
renumbered to read:
24308. 24330. (a) The election of
an option as provided in Section 24307 shall preclude the payment of
a family allowance to any beneficiary under this part.
(b) The preretirement election of an option made by the member
pursuant to Section 24307 shall be voided by the board as of the
effective date of an approved disability retirement under this part.
Members receiving a disability retirement allowance pursuant to
Chapter 26 (commencing with Section 24100) may not file an election
of option as provided in Section 24307.
(c) The election of an option as provided in Section 24307 shall
preclude the payment of a survivor benefit allowance pursuant to
Chapter 23 (commencing with Section 23850) and shall preclude the
payment of the remaining balance of the member's accumulated
retirement contributions prior to the death of the option
beneficiary.
SEC. 56. Section 24309 of the Education Code is amended to read:
24309. (a) A member may change or cancel the election of an
option made pursuant to Section 24307. The change or cancellation
shall be on a properly executed form provided by the system and
received at the system's headquarters office within 30 days
of after the date of the member's signature and,
if applicable, the spouse's signature, and no later than 30 days
from the date the member's initial benefit payment for the member's
most recent retirement under the Defined Benefit Program is paid by
the system. The change or cancellation shall become effective as of
the date of the member's signature or the day prior to the member's
retirement benefit effective date,
whichever is earlier.
(1) Any change to an election of an option shall be made according
to Section 24307 and shall be considered a new preretirement
election of an option.
(2) Regardless of how the member elects to receive his or her
retirement allowance, a change made to an election of an option or a
cancellation of an option shall result in the reduction of that
allowance by an amount determined by the board to be the actuarial
equivalent of the coverage the member received as a result of the
preretirement election and that does not result in any adverse
funding to the plan.
(b) If the option beneficiary designated in the preretirement
election of an option pursuant to Section 24307 dies prior to the
member's retirement, the preretirement election shall be canceled as
of the day following the date of death and the member's subsequent
retirement allowance under this part shall be subject to the
allowance reduction prescribed in this section.
(c) If the option elected pursuant to Section 24307 is "Option 8"
as described in paragraph (7) of subdivision (a) of Section 24300 or
the compound option as described in paragraph (4) of subdivision (a)
of Section 24300.1, a member may cancel the designation of an option
beneficiary. If the member cancels the designation of the option
beneficiary or the option beneficiary predeceases the member prior to
the member's retirement, the member may elect to receive that
portion of the retirement allowance without modification for the
option or elect one or multiple new or existing option beneficiaries
as described in Section 24307. Any change or cancellation of the
designation of the option beneficiary under this subdivision shall
result in the allowance reduction prescribed in this section.
SEC. 57. Section 24311 of the Education Code is amended and
renumbered to read:
24311. 24340. (a) A member who has
a preretirement election of an option in effect on December 31, 1990,
may change his or her preretirement election of Option 2, Option 3,
Option 4, or Option 5 to either Option 6 or Option 7 without the
allowance reduction prescribed in Sections 24309 and 24310, provided
the change is made on or after January 1, 1991, and prior to the
earlier of January 1, 1992, or the member's retirement under this
part.
(b) If the member elects to change his or her option under this
section, then the member shall retain the same option beneficiary as
named in the prior preretirement election. The election to change the
preretirement election under this section shall be void if not
received in the system's headquarters office at least 30 days prior
to the death of the option beneficiary.
SEC. 58. Section 24312 of the Education Code is amended and
renumbered to read:
24312. 24344. (a) A member who has
a preretirement election of an option in effect on December 31, 1999,
may change his or her preretirement election of Option 2, Option 3,
Option 4, Option 5, Option 6, or Option 7 to Option 8 without the
allowance reduction prescribed in Sections 24309 and 24310, provided
the change is made on or after January 1, 2000, and prior to the
earlier of July 1, 2000, or the member's benefit effective
date of retirement .
(b) If the member elects to change his or her option under this
section then the member shall retain the same option and the same
option beneficiary as named in the prior preretirement election of an
option as one of the options under Option 8. The election to change
the preretirement election under this section shall be void if not
received in the system's headquarters office at least 30 days prior
to the death of the option beneficiary.
(c) This section shall become operative on January 1, 2000.
SEC. 59. Section 24312.1 of the Education Code is amended and
renumbered to read:
24312.1. 24346. (a) A member who
has a preretirement election of an option in effect on December 31,
2006, pursuant to paragraphs (1) to (6), inclusive, of subdivision
(a) of Section 24300 may change his or her preretirement election to
an option described in paragraph (1), (2), or (3) of subdivision (a)
of Section 24300.1 without the allowance reduction described in
Sections 24309 and 24310, provided the change is made on or after
January 1, 2007, and prior to July 1, 2007.
(b) A member who has a preretirement election of Option 8 as
described in Section 24300 in effect on December 31, 2006, and in
that Option 8 election has an option pursuant to paragraphs (1) to
(6), inclusive, of subdivision (a) of Section 24300, may change any
of the options under paragraphs (1) to (6), inclusive, of subdivision
(a) of Section 24300 to an option described in paragraph (1), (2),
or (3) of subdivision (a) of Section 24300.1 without the allowance
reduction described in Sections
24309 and 24310, if change is made on or after January 1, 2007,
and prior to July 1, 2007. A member may not change the portion of the
unmodified benefit that would be modified pursuant to that prior
option.
(c) The election to change the option by a member as described in
this section shall be subject to all of the following:
(1) The member may not change the option beneficiary that was
designated in the prior preretirement option election.
(2) The change in options under this section shall be effective on
the date the election is signed, provided that the election is on a
properly executed form provided by the system and received at the
system's headquarters office within 30 days of the date of the
signature.
(d) If the member elects to change options as described in this
section, the age of the member and the option beneficiary on the
effective date of the prior preretirement option election shall be
the age used to calculate the member's benefit at the time of
retirement.
SEC. 60. Section 24313 of the Education Code is amended and
renumbered to read:
24313. 24343. (a) Any member who
retired for service under Option 2 or Option 3 with an effective date
prior to January 1, 1991, whose option beneficiary had died prior to
January 1, 1995, shall receive, effective January 1, 1999, the
retirement allowance without modification for the option if all of
the following conditions are met:
(1) The retired member is living as of January 1, 1999.
(2) The retired member has not elected a new option beneficiary
under Section 24306 24323 .
(3) The retirement allowance without modification for the option
payable as of January 1, 1999, is greater than the amount payable
under the option, plus the amounts from annual benefit improvements,
ad hoc benefit increases and payments from the Supplemental Benefit
Maintenance Account.
(4) The retired member does not inform the system in writing, on a
form provided by the system, within 30 days of receipt of the
notification of the change to the retirement allowance without
modification for the option, of his or her election to continue to
receive the option allowance.
(b) Any member who retired for service under Option 4 or Option 5
with an effective date prior to January 1, 1991, whose option
beneficiary had died prior to January 1, 1999, shall receive
effective January 1, 1999, the retirement allowance without
modification for the option if all the following conditions are met:
(1) The retired member is living as of January 1, 1999.
(2) The retired member has not elected a new option beneficiary
under Section 24306 24323 .
(3) The retirement allowance without modification for the option
payable as of January 1, 1999, is greater than the amount payable
under the option, plus the amount from annual benefit improvements,
ad hoc benefit increases and payments from the Supplemental Benefit
Maintenance Account.
(4) The retired member does not inform the system in writing, on a
form provided by the system, within 30 days of receipt of the
notification of the change to the retirement allowance without
modification for the option, of his or her election to continue to
receive the option allowance.
(c) The change to the retirement allowance without modification
for the option, shall be consistent with Section 22453.
(d) A member retired for service who receives the retirement
allowance without modification for the option provided under this
section, shall not elect a new option beneficiary under Section
24306 24323 .
(e) The cost of this section shall be paid by the transfer for
that purpose of the one-time gain accrued to the State Teachers'
Retirement System from the difference between the contributions
received pursuant to Sections 22901 and 22950 in the 1997-98 fiscal
year minus the normal cost as displayed in the June 30, 1997,
actuarial valuation.
SEC. 61. Section 24348 is added to the Education Code, to read:
24348. (a) A member who has a preretirement option pursuant to
Section 24307 in effect on June 26, 2013, and designated his or her
same-sex spouse as option beneficiary may elect to change his or her
option subject to the following:
(1) A member who elected the 100 percent beneficiary option or the
50 percent beneficiary option may elect to change his or her option
to the 75 percent beneficiary option described in paragraph (2) of
subdivision (a) of Section 24300.1 provided the member's same-sex
spouse is more than exactly 19 years younger than the member.
(2) (A) A member who elected the compound option may elect to
change the option designated for his or her same-sex spouse within
the compound option to the 100 percent beneficiary option described
in paragraph (1) of subdivision (a) of Section 24300.1 provided the
member's same-sex spouse is more than exactly 10 years younger than
the member, or the 75 percent beneficiary option described in
paragraph (2) of subdivision (a) of Section 24300.1 provided the
member's same-sex spouse is more than exactly 19 years younger than
the member.
(B) If a member elects to change the option designated for his or
her same-sex spouse within the compound option, the member may also
elect to change the option designated to any other option beneficiary
or beneficiaries within the compound option to the 100 percent
beneficiary option, the 75 percent beneficiary option, or the 50
percent beneficiary option described in paragraph (1), (2), or (3) of
subdivision (a) of Section 24300.1.
(C) If a member elects to change the option designated for his or
her same-sex spouse within the compound option, the member may also
elect to change the percentage of his or her unmodified allowance
designated to the option beneficiary or beneficiaries. The percent of
the allowance that is not modified by an option, if any, shall be
payable to the member. The sum of all percentages specified for the
option beneficiary or beneficiaries and the member's remaining
unmodified allowance, if any, shall equal 100 percent.
(D) Any change made pursuant to this paragraph shall be subject to
the requirements and restrictions of the compound option described
in paragraph (4) of subdivision (a) of Section 24300.1 and shall not
be construed to allow a member to cancel his or her compound option.
(3) The option change made by the member pursuant to this section
is made on or after January 1, 2015, and prior to June 30, 2015.
(4) The member is in a same-sex marriage recognized by the United
States government, any state government, or any foreign government
and elected his or her same-sex spouse as his or her option
beneficiary prior to June 26, 2013.
(5) The member designates the same option beneficiary or
beneficiaries that were designated for the prior option elected by
the member.
(6) The option beneficiary or beneficiaries have not predeceased
the member as of the effective date of the option change made by the
member pursuant to this section.
(b) The option change made by a member pursuant to subdivision (a)
shall become effective as of the member's signature date on a
properly executed form provided by the system subject to the
following requirements:
(1) The form includes the signature of the member's same-sex
spouse and the signature is dated.
(2) The date the form is received at the system's headquarters
office is within 30 calendar days after the date of the member's
signature and within 30 calendar days after the date of the same-sex
spouse's signature.
(3) The date of the member's signature and the date of the
same-sex spouse's signature are on or after January 1, 2015, and
prior to June 30, 2015.
(c) A preretirement option change made pursuant to this section
will not result in the allowance reduction described in Sections
24309 and 24310.
(d) If a member elects to change options pursuant to this section,
the age of the member and the option beneficiary or beneficiaries on
the effective date of the prior preretirement option election shall
be the age used to calculate the member's benefit at the time of
retirement.
SEC. 62. Section 24402 of the Education Code is amended to read:
24402. (a) Service retirement allowances, disability allowances,
disability retirement allowances, family allowances, and survivor
benefit allowances payable pursuant to this part shall be increased
by application of the benefit improvement factor.
(b) Allowances payable to beneficiaries on account of options
elected under Section 24300, 24300.1, 24301, or 24307
24307, or 24332 shall be increased by
application of the improvement factor. This factor shall be
applicable on the same date when it would have been applied to the
allowance of the deceased person.
(c) The benefit improvement factor shall not be applied to an
annuity that is the actuarial equivalent of the accumulated annuity
deposit contributions standing to the credit of the member's account
on the effective date of a service or disability retirement.
SEC. 63. Section 24412 of the Education Code is amended to read:
24412. (a) The annual revenues deposited to the Teachers'
Retirement Fund pursuant to Section 6217.5 of the Public Resources
Code are continuously appropriated without regard to fiscal year for
the purposes of this section and shall be distributed annually in
quarterly supplemental payments commencing on September 1 of each
year to retired members, disabled members, and beneficiaries under
the Defined Benefit Program. The amount available for distribution in
any year shall be the income for that year from the sale or use of
school lands and lieu lands, as estimated by the State Lands
Commission prior to the beginning of the fiscal year, adjusted by the
difference between the estimated and actual income for the preceding
fiscal year. The board shall deduct from the revenues an amount
necessary for administrative expenses to implement this section.
(b) The net revenues to be distributed shall be allocated among
those retired members, disabled members, and beneficiaries, as
defined in subdivision (a) of Section 22107, whose allowances under
the Defined Benefit Program, after applying the annual improvement
factor as defined in Section 22140, if any, are below 80 percent of
the original purchasing power of the base
allowance . The purchasing power calculation for each
individual allowance shall be based on the change in the All Urban
California Consumer Price Index between June of the calendar year of
retirement and June of the fiscal year preceding the fiscal year of
the distribution. The allocation shall provide a pro rata share of
the amount needed to restore the allowance payable, after application
of the current year annual improvement factor to 80 percent of the
original purchasing power of the base
allowance .
(c) The allowance increase shall not be applicable to annuities
payable from the accumulated annuity deposit contributions or the
accumulated tax-sheltered annuity contributions.
(d) In any year that the net revenues from school lands and lieu
lands is greater than that needed to adjust the allowances of all
retired members, disabled members, and beneficiaries, as defined in
subdivision (a) of Section 22107, under the Defined Benefit Program
to 80 percent of the original purchasing power
of the base allowance , the net revenues in excess of that
needed for distribution shall be used by the board to reduce the
unfunded actuarial obligation of the fund, if any.
(e) The board shall inform each recipient of supplemental payments
under this section that the increases are not cumulative and are not
part of the base allowance.
SEC. 64. Section 24415 of the Education Code is amended to read:
24415. (a) The proceeds of the Supplemental Benefit Maintenance
Account shall be distributed annually in quarterly supplemental
payments commencing on September 1, 1990, to retired members,
disabled members, and beneficiaries, as defined in subdivision (a) of
Section 22107. The amount available for distribution in any fiscal
year shall not exceed the amount necessary to restore purchasing
power up to 85 percent of the purchasing power of the
initial monthly base allowance, after the
application of all allowance increases authorized by this part,
including those specified in Section 24412, and excluding those
provided pursuant to Sections 24410.5, 24410.6, and 24410.7.
(b) The net revenues to be distributed shall be allocated among
those retired members, disabled members, and beneficiaries, as
defined in subdivision (a) of Section 22107, whose allowances, after
sequentially applying the annual improvement factor as defined in
Sections 22140 and 22141, and the annual supplemental payment as
specified in Section 24412, have the lowest purchasing power
percentage. The purchasing power calculation for each individual
shall be based on the change in the All Urban California Consumer
Price Index between June of the calendar year of retirement and June
of the fiscal year preceding the fiscal year of distribution. In any
year in which the purchasing power of the allowances of all retired
members, disabled members, and beneficiaries, as defined in
subdivision (a) of Section 22107, equals not less than 85 percent and
additional funds remain from the allocation authorized by this
section, those funds shall remain in the Supplemental Benefit
Maintenance Account for allocation in future years.
(c) The allowance increase shall not be applicable to annuities
payable from the accumulated annuity deposit contributions or the
accumulated tax-sheltered annuity contributions.
(d) The increases provided by subdivision (b) are not cumulative,
not part of the base allowance, and will be payable only to the
extent that funds are available from the Supplemental Benefit
Maintenance Account. The board shall inform each recipient of the
contents of this subdivision.
(e) The adjustments authorized by this section are vested only up
to the amount payable as a result of the annual appropriation made
pursuant to Section 22954 and the adjustments made by the board
pursuant to Section 24415.5. The adjustments authorized by this
section shall not be included in the base allowance for purposes of
calculating the annual improvement defined by Sections 22140 and
22141.
(f) Notwithstanding subdivision (b), for purposes of restoring the
purchasing power of benefits provided pursuant to Section 24410.5
for members and beneficiaries receiving benefits pursuant to
subdivision (b), the purchasing power calculation shall be based on
85 percent of the change in the All Urban California Consumer Price
Index between January 2000 and June of the fiscal year preceding the
fiscal year of distribution, after the application of increases
authorized by Section 24412 that are made to the allowances provided
pursuant to Section 24410.5.
(g) Notwithstanding subdivision (b), for purposes of restoring the
purchasing power of benefits provided pursuant to Sections 24410.6
and 24410.7 for members and beneficiaries receiving benefits pursuant
to subdivision (b), the purchasing power calculation shall be based
on 85 percent of the change in the All Urban California Consumer
Price Index between January 2001 and June of the fiscal year
preceding the fiscal year of distribution, after the application of
increases authorized by Section 24412 that are made to the allowances
provided pursuant to Sections 24410.6 and 24410.7.
SEC. 65. Section 24600 of the Education Code is amended to read:
24600. (a) A retirement allowance under this part begins to
accrue on the effective date of the member's retirement and ceases on
the earlier of the day of the member's death or the day on which the
retirement allowance is terminated for a reason other than the
member's death.
(b) A retirement allowance payable to an option beneficiary under
this part begins to accrue on the day following the day of the
retired member's death and ceases on the day of the option
beneficiary's death.
(c) A disability allowance under this part begins to accrue on the
effective date of the member's disability allowance and ceases on
the earlier of the day of the member's death or the day on which the
disability allowance is terminated for a reason other than the member'
s death.
(d) A family allowance under this part begins to accrue on the day
following the day of the member's death and ceases on the day of the
event that terminates eligibility for the allowance.
(e) A survivor benefit allowance payable to a surviving spouse
under this part pursuant to Chapter 23 (commencing with Section
23850) begins to accrue on the day the member would have attained
normal retirement age or on the day following the day of the member's
death, as elected by the surviving spouse, and ceases on the day of
the surviving spouse's death.
(f) (1) Except as provided in paragraph (2), a child's portion of
an allowance under this part begins to accrue on the effective date
of that allowance and ceases on the earlier of either the termination
of the child's eligibility or the termination of the allowance.
(2) A child's portion of a disability retirement allowance under
Chapter 26 (commencing with Section 24100) ceases on the earlier of
either:
(A) The termination date of the child's eligibility.
(B) The termination of the allowance for reasons other than death.
(g) Supplemental payments issued under this part pursuant to
Sections 24412 and 24415 to retired members, disabled members, and
beneficiaries shall begin to accrue pursuant to Sections 24412 and
24415 and shall cease to accrue as of the termination dates specified
in subdivisions (a) to (f), inclusive, of this section.
(h) Notwithstanding any other provision of this part or other law,
distributions payable under the plan with respect to the Defined
Benefit Program and the Defined Benefit Supplement Program shall be
made in accordance with applicable provisions of the Internal Revenue
Code of 1986 and related regulations. The required beginning date of
benefit payments that represent the entire interest of the member in
the plan with respect to the Defined Benefit Program and the Defined
Benefit Supplement Program shall be either:
(1) In the case of a refund of contributions, as described in
Chapter 18 (commencing with Section 23100) of this part and
distribution of an amount equal to the balance of credits in a member'
s Defined Benefit Supplement account, as described in Chapter 38
(commencing with Section 25000) of this part, not later than April 1
of the calendar year following the later of (A) the calendar year in
which the member attains the age at which the Internal Revenue Code
of 1986 requires a distribution of benefits or (B) the calendar year
in which the member terminates employment within the meaning of
subdivision (i).
(2) In the case of a retirement allowance, as defined in Section
22166, not later than April 1 of the calendar year following the
later of (A) the calendar year in which the member attains the age at
which the Internal Revenue Code of 1986 requires a distribution of
benefits or (B) the calendar year in which the member terminates
employment within the meaning of subdivision (i), to continue over
the life of the member or the lives of the member and the member's
option beneficiary, or over the life expectancy of the member or the
life expectancy of the member and the member's option beneficiary.
(i) For purposes of subdivision (h), the phrase "terminates
employment" means the later of:
(1) The date the member ceases to perform creditable service
subject to coverage under this plan.
(2) The date the member ceases employment in a position subject to
coverage under another public retirement system in this state if the
compensation earnable while a member of the other system may be
considered in the determination of final compensation pursuant to
Section 22134, 22135, or 22136 22134 or
22134.5 .
SEC. 66. Section 25015 of the Education Code is amended to read:
25015. (a) If a member elects to receive a benefit payable under
the Defined Benefit Supplement Program as a joint and survivor
annuity, the designation of the beneficiary made pursuant to Section
24300 or 24300.1 shall apply to the benefit payable under this
chapter. The annuity beneficiary designation shall not be changed
after the date the benefit becomes payable to the member, except as
provided in Section 24305.3, 24324,
25011, 25011.1, 25018, or 25018.1, or Chapter 12 (commencing with
Section 22650).
(b) If the member designates one or multiple option beneficiaries
within Option 8 pursuant to Section 24300 or the compound option
described in paragraph (4) of subdivision (a) of Section
24300.1, the percentage of the unmodified allowance attributable to
each option beneficiary specified in that designation shall apply to
the joint and survivor annuity payable under this chapter. The member
shall elect one joint and survivor annuity type and this annuity
type shall be applied the same for each beneficiary and each
designated percentage of the member only annuity. If any percentage
of the allowance was designated to remain unmodified, the member only
annuity shall apply for the corresponding percentage of the annuity
provided under this chapter. The annuity amount payable to the member
during his or her lifetime shall be modified to be payable over the
combined lives of the member and the annuity beneficiary or
beneficiaries.
(c) If the member predeceases an annuity beneficiary, the annuity
beneficiary may designate, on a properly executed form provided by
the system, a payee to receive an amount that may be payable in a
lump sum pursuant to Section 25023 upon the death of the annuity
beneficiary.
SEC. 67. Section 26113 of the Education Code is amended to read:
26113. (a) "Creditable service" means any of the following
activities performed for an employer in a position requiring a
credential, certificate, or permit pursuant to this code or under the
appropriate minimum standards adopted by the Board of Governors of
the California Community Colleges or under the provisions of an
approved charter for the operation of a charter school for which the
employer charter school is eligible to
receive state apportionment or pursuant to a contract between a
community college district and the United States Department of
Defense to provide vocational training:
(1) The work of teachers, instructors, district interns and
academic employees employed in the instructional program for pupils,
including special programs such as adult education, regional
occupational programs, child care centers, and prekindergarten
programs pursuant to Section 22161.
(2) Education or vocational counseling, guidance, and placement
services.
(3) The work of directors, coordinators, and assistant
administrators who plan courses of study to be used in California
public schools, or research connected with the evaluation or
efficiency of the instructional program.
(4) The selection, collection, preparation, classification,
demonstration, or evaluation of instructional materials of any course
of study for use in the development of the instructional program in
California public schools, or other services related to school
curriculum.
(5) The examination, selection, in-service training, or assignment
of teachers, principals or other similar personnel involved in the
instructional program.
(6) School activities related to, and an outgrowth of, the
instructional and guidance program of the school when performed in
addition to other activities described in this section.
(7) The work of nurses, physicians, speech therapists,
psychologists, audiometrists, audiologists, and other school health
professionals.
(8) Services as a school librarian.
(9) The work of county and district superintendents and other
employees who are responsible for the supervision of persons or
administration of the duties described in this section.
(10) Trustee service as described in Section 26403.
(b) "Creditable service" also means the work of superintendents of
California public schools.
(c) The board shall have final authority for determining
creditable service to cover activities not already specified.
SEC. 68. Section 26803 of the Education Code is amended to read:
26803. (a) All creditable service subject to coverage by the Cash
Balance Benefit Program and all service with the participant's last
employer or employers that is creditable under the Defined Benefit
Program shall be terminated prior to the retirement date.
(b) All employers with which the participant is employed to
perform creditable service subject to coverage by the plan shall
certify on a form prescribed by the system that the participant's
employment has been terminated unless the employment was
terminated 12 months or more prior to the member's retirement date
.
SEC. 69. Section 27201 of the Education Code is amended to read:
27201. (a) All creditable service subject to coverage by the Cash
Balance Benefit Program and all service with the participants' last
employer or employers that is creditable service under the Defined
Benefit Program shall terminate prior to application for a
termination benefit under this part.
(b) All employers with which the participant is employed to
perform creditable service subject to coverage by the plan shall
certify on a form prescribed by the system that the participant's
employment has been terminated unless the employment was
terminated 12 months or more prior to the date the member signed the
termination application .
SEC. 70. Section 33050 of the Education Code is amended to read:
33050. (a) The governing board of a school district or a county
board of education, on a districtwide or countywide basis or on
behalf of one or more of its schools or programs, after a public
hearing on the matter, may request the State Board of Education to
waive all or part of any section of this code or any regulation
adopted by the State Board of Education that implements a provision
of this code that may be waived, except:
(1) Article 1 (commencing with Section 15700) and Article 2
(commencing with Section 15780) of Chapter 4 of Part 10.
(2) Chapter 6 (commencing with Section 16000) of Part 10.
(3) Chapter 12 (commencing with Section 17000), Chapter 12.5
(commencing with Section 17070.10), and Chapter 14 (commencing with
Section 17085) of Part 10.
(4) Part 13 (commencing with Section 22000) , Part 13.5
(commencing with Section 25900), and Part 14 (commencing with Section
26000) .
(5) Section 35735.1.
(6) Paragraph (8) of subdivision (a) of Section 37220.
(7) The following provisions of Part 10.5 (commencing with Section
17211):
(A) Chapter 1 (commencing with Section 17211).
(B) Article 1 (commencing with Section 17251) to Article 6
(commencing with Section 17365), inclusive, of Chapter 3.
(C) Sections 17416 to 17429, inclusive; Sections 17459 and 17462
and subdivision (a) of Section 17464; and Sections 17582 to 17592,
inclusive.
(8) The following provisions of Part 24 (commencing with Section
41000):
(A) Sections 41000 to 41360, inclusive.
(B) Sections 41420 to 41423, inclusive.
(C) Sections 41600 to 41866, inclusive.
(D) Sections 41920 to 42911, inclusive.
(9) Sections 44504 and 44505.
(10) Article 3 (commencing with Section 44930) of Chapter 4 of
Part 25 and regulations in Title 5 of the California Code of
Regulations adopted pursuant to Article 3 (commencing with Section
44930) of Chapter 4 of Part 25.
(11) Part 26 (commencing with Section 46000).
(12) Chapter 6 (commencing with Section 48900) and Chapter 6.5
(commencing with Section 49060) of Part 27.
(13) Section 51513.
(14) Chapter 6.10 (commencing with Section 52120) of Part 28,
relating to class size reduction.
(15) Section 52163.
(16) The identification and assessment criteria relating to any
categorical aid program, including Sections 52164.1 and 52164.6.
(17) Sections 52165, 52166, and 52178.
(18) Article 3 (commencing with Section 52850) of Chapter 12 of
Part 28.
(19) Section 56364.1, except that this restriction shall not
prohibit the State Board of Education from approving any waiver of
Section 56364 or Section 56364.2, as applicable, relating to full
inclusion.
(20) Article 4 (commencing with Section 60640) of Chapter 5 of
Part 33, relating to the STAR Program, and any other provisions of
Chapter 5 (commencing with Section 60600) of Part 33 that establish
requirements for the STAR Program.
(b) Any waiver of provisions related to the programs identified in
Section 52851 shall be granted only pursuant to Article 3
(commencing with Section 52850) of Chapter 12 of Part 28.
(c) The waiver of an advisory committee required by law shall be
granted only pursuant to Article 4 (commencing with Section 52870) of
Chapter 12 of Part 28.
(d) Any request for a waiver submitted by the governing board of a
school district or a county board of education pursuant to
subdivision (a) shall include a written statement as to both of the
following:
(1) Whether the exclusive representative of employees, if any, as
provided in Chapter 10.7 (commencing with Section 3540) of Division 4
of Title 1 of the Government Code, participated in the development
of the waiver.
(2) The exclusive representative's position regarding the waiver.
(e) Any request for a waiver submitted pursuant to subdivision (a)
relating to a regional occupational center or program established
pursuant to Article 1 (commencing with Section 52300) of Chapter 9 of
Part 28, that is operated by a joint powers entity established
pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of
Title 1 of the Government Code, shall be submitted as a joint waiver
request for each participating school district and shall meet both
of the following conditions:
(1) Each joint waiver request shall comply with all of the
requirements of this article.
(2) The submission of a joint waiver request shall be approved by
a unanimous vote of the governing board of the joint powers agency.
(f) The governing board of any school district requesting a waiver
under this section of any provision of Article 5 (commencing with
Section 39390) of Chapter 3 of Part 23 shall provide written notice
of any public hearing it conducted pursuant to subdivision (a), at
least 30 days prior to the hearing, to each public agency identified
under Section 39394.
SEC. 71. Section 1 of Chapter 559 of the Statutes of 2013 is
amended to read:
Section 1. The Legislature finds and declares that this act, as it
applies to the State Teachers' Retirement Plan, clarifies the
California Public Employees' Pension Reform Act of 2013, is
declaratory of existing law, and is intended to apply concurrently
with the initial operation of that act. The amendments made by this
act, excluding those amendments made in Sections 4, 12, 28, 29, 30,
and 36 , shall be deemed to be operative January 1, 2013,
unless otherwise stated.
SEC. 72. Any section of any other act enacted by the Legislature
during the 2014 calendar year that takes effect on or before January
1, 2015, and that amends, amends and renumbers, adds, repeals and
adds, or repeals a section that is amended, amended and renumbered,
added, repealed and added, or repealed by this act, shall prevail
over this act, whether that act is enacted prior to or subsequent to
the enactment of this act. The repeal, or repeal and addition, of any
article, chapter, part, title, or division of any code by this act
shall not become operative if any section of any other act that is
enacted by the Legislature during the 2014 calendar year and takes
effect on or before January 1, 2015, amends, amends and renumbers,
adds, repeals and adds, or repeals any section contained in that
article, chapter, part, title, or division.
