BILL NUMBER: SB 349 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Negrete McLeod
FEBRUARY 15, 2011
An act to amend Sections 22404, 22851, 23100, 23101, 23103, 23104,
23801, 23802, 23851, 23852, 23854, 24001, 24002, 24003, 24102,
24103, 24204, 24205, 24214, 24214.5, 24216, 24216.5, 24216.6,
24300.1, 24309, 24600, and 26505 of, and to add Sections 22161.3,
22853.5, 26812, and 26813 to, the Education Code, relating to
teachers' retirement.
LEGISLATIVE COUNSEL'S DIGEST
SB 349, as introduced, Negrete McLeod. State Teachers' Retirement
Plan.
(1) Existing law permits the Teachers' Retirement Board, which
administers the State Teachers' Retirement System (STRS) and the
State Teachers' Retirement Plan, to establish an amount, not to
exceed $10, below which the system may dispense with the processing
of benefit payments or the collection of benefit overpayments.
This bill would extend this authority to other payments and
overpayments provided under the plan in addition to those related to
benefits.
(2) Existing law grants a member of STRS who returns to employment
after performing uniformed services, as defined, certain rights and
benefits, including treatment as if there was no break in the member'
s service to his or her employers for the period of the uniformed
services and having that period of uniformed service count towards
vesting and eligibility in the defined benefit program.
This bill would extend certain of these rights and benefits to a
member who dies during uniformed services, would require that
qualified military service, as defined, be counted for the purpose of
vesting and eligibility for membership if the member dies during
that service, and would prescribe how this service is to be
calculated. The bill would permit this service to apply to the
payment of certain death benefits to a beneficiary, and to survivor
benefits, under specified circumstances.
(3) Existing law requires, upon a termination of a member's
employment by any cause other than death, disability, or retirement,
that certain amounts be paid to the member, including his or her
accumulated retirement contributions and annuity deposits.
This bill would require that these payments be made upon
termination of employment generally and the member's election to be
paid. The bill would authorize a reduction in the payment of
accumulated retirement benefits by the amount of retirement or
disability benefits paid. The bill would also provide that specified
beneficiary designations would be invalidated upon a refund of
accumulated retirement contributions and would prescribe how the
refund request would be made or determined by the board.
(4) Existing law permits a member of STRS to apply for a
disability allowance if certain requirements are met, including that
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 reach normal retirement age.
This bill would make technical changes in these provisions.
(5) Existing law requires a member of STRS to provide medical
documentation to substantiate the impairment qualifying the member
for a disability allowance or retirement. Existing law permits the
system to order a medical examination of a member to determine
whether the member is incapacitated for performance of service and
prescribes procedures for this purpose.
This bill would also authorize the system to order also a review
of medical documentation in this regard. The bill would also make
technical changes these provisions.
(6) Existing law prescribes the conditions under which a STRS
service retirement allowance becomes effective and requires, in this
regard, that the effective date be no earlier than the first day of
the month in which the application is received at the system's
headquarters office.
This bill would delete the requirement described above.
(7) Existing law permits a member retiring prior to 60 years of
age, who has attained 55 years of age, to elect to receive ½ 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. Existing law excepts from this authorization members
retiring for service pending a disability.
This bill would also except from this authorization members
retiring for service following reinstatement, members who perform
creditable service for 2 or more years after reinstatement, and
members who retire after a prior disability retirement is terminated,
among others.
(8) Existing law permits a retired member of STRS to perform
specified activities as an employee of an employer in the system, as
an employee of a 3rd party, or as an independent contractor within
the California public school system, but prohibits the member from
making contributions to the retirement fund or accruing service
credit based on compensation earned from that service. Existing law
conditions this authorization on a variety of factors including
limitations on the rate of pay of the member and the total amount of
compensation.
This bill would also permit a retired member, pursuant to the
limitations described above, to perform the work of county and
district superintendents who are responsible for the supervision of
persons or administration of certain duties and to perform trustee
work for the Cash Balance Benefit Program.
(9) Existing law exempts certain members of STRS retired for
service who are appointed as a trustee or administrator of specific
programs, including those relating to underperforming schools, from
specified limitations on postretirement compensation. Existing law
conditions these exemptions on the submission of documentation
required by the system to substantiate the eligibility of the member
no later than June 30 of the school year for which the exemption is
to apply.
This bill would provide that this documentation be submitted no
later than 60 calendar days after the member commences performing
creditable service.
(10) Existing law exempts a retired member of STRS from certain
compensation limitations if various conditions are met, among them
that the member provide service in specified capacities, including
the Pre-Internship Teaching Program.
This bill would delete the Pre-Internship Teaching Program from
the permitted forms of service in this regard.
(11) Existing law permits a member of STRS, prior to the effective
date of his or her retirement, to elect an option that provides an
actuarially modified retirement allowance payable throughout the life
of the member and the member's option beneficiary or beneficiaries.
Existing law also prescribes how a member may change or cancel these
options.
This bill would revise when these designations, changes, or
cancellations must be submitted.
(12) Existing law provides that a child's portion of a STRS
retirement allowance 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.
This bill would prescribe when a child's portion of a disability
retirement allowance terminates.
(13) Existing law establishes the Cash Balance Benefit Program,
administered by the State Teachers' Retirement Board, as a separate
benefit program within the State Teachers' Retirement Plan.
This bill would permit a member retired for service under the Cash
Balance Benefit Program to perform specified activities as an
employee of an employer in the system, as an employee of a 3rd party,
or as an independent contractor within the California public school
system, but would prohibit the member from making contributions to
the retirement fund or accruing service credit based on compensation
earned from that service. The bill would condition this authorization
on a variety of factors including limitations on the rate of pay of
the member and the total amount of compensation, as well as on the
employer maintaining accurate records in this regard, among other
things.
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 22161.3 is added to the Education Code, to
read:
22161.3. Qualified military service is military service as
defined in subdivision (u) of Section 414 of Title 26 of the United
States Code.
SEC. 2. Section 22404 of the Education Code is amended to read:
22404. (a) Notwithstanding any other provision of this part or
Part 14 (commencing with Sec. 26000) to the contrary, the
board may establish by plan amendment a specified amount or amounts,
not to exceed ten dollars ($10), below which the system may dispense
with the processing of benefit or other payments or
collection of benefit or other overpayments that result
from adjustments made to the benefit or other amount paid
to a member, participant, or beneficiary.
(b) When the cumulative dollar amount associated with one or more
benefit or other adjustments equals or exceeds the amount
described in subdivision (a), that amount shall be paid to, or
collected from, the member, participant, or beneficiary. That
cumulative amount paid or collected shall not be credited with
interest.
SEC. 3. Section 22851 of the Education Code is amended to read:
22851. The right to pension benefits under this part of a member
who dies or who returns to employment with the same
employer which had employed the member immediately prior to the
eligible period of service in the uniformed services, and is subject
to Chapter 43 (commencing with Section 4301) of Title 38 of the
United States Code shall be determined under this section.
(a) (1) A reemployed or deceased member shall be
treated as not having incurred a break in service by reason of that
member's eligible period or periods of service in the uniformed
services.
(2) (A) Each eligible period of service
served by a member in the uniformed services shall, upon return to
employment, with the same employer which had employed the member
immediately prior to the eligible period of service in the uniformed
services, or upon death, be deemed to constitute service
with the employer or employers toward plan vesting and eligibility
for membership in the Defined Benefit Program.
(B) In cases of death during qualified military service, service
shall be calculated under Section 22853.5 and shall be used
exclusively for plan vesting and eligibility for membership purposes.
Service that is deemed to the member in this way shall not be used
for benefit calculations based on service credit balances.
(3) A member who returns to employment, with the same employer
which had employed the member immediately prior to the eligible
period of service in the uniformed services shall not be entitled to
any benefits under this part in respect of service in the uniformed
services to which the member would not otherwise have been entitled
had the member remained continuously employed and not undertaken such
service in the uniformed services.
(b) For purposes of calculating benefits, a member who returns to
employment with the same employer which had employed the member
immediately prior to the eligible period of service in the uniformed
services shall be entitled to service credit under this part for the
eligible period of service in the uniformed services upon his or her
payment of the member contributions required under Section 22901 that
otherwise would have been due for such period of service had the
member remained continuously employed and not undertaken such service
in the uniformed services. No such payment of member contributions
may exceed the amount the member would have been required to
contribute under this part had the member not served in the uniformed
services and had remained continuously employed by the employer
throughout the eligible period of service in the uniformed services.
If a member fails to remit the member contributions that would have
been required under Section 22901 in respect of the eligible period
of service in the uniformed services no service credit shall be
provided under this part for the period to which the omitted
contributions relate.
(c) Any payment of member contributions to the Defined Benefit
Program in this section shall be made by the member during the period
beginning with the date of return to employment and may continue for
three times the period of the member's eligible service in the
uniformed services, not to exceed five years. Any payment of member
contributions to the Defined Benefit Program in this section by a
member who returned to employment prior to January 1, 1997, and
qualifies for benefits in accordance with the Uniformed Services
Employment and Reemployment Rights Act of 1994 (Chapter 43
(commencing with Section 4301) of Title 38 of the United States
Code), shall be made by the member during the period beginning with
the date of notification of eligibility by the employer to the system
and may continue for three times the period of the member's eligible
service in the uniformed services, not to exceed five years. Any
subsequent request to purchase this service shall be subject to the
provisions of Chapter 14 (commencing with Section 22800). If all
contributions due under this part are not paid to the plan with
respect to the Defined Benefit Program within the specified repayment
period and in accordance with subdivision (b) of Section 22851 the
contributions shall be returned to the member at the end of the
repayment period. Interest on member contributions made for the
eligible period of service in the uniformed services shall not be
credited under this part until after the contributions due are paid
and then only prospectively to the member's account in accordance
with Section 22216.
SEC. 4. Section 22853 is added to the Education Code, to read:
22853. For purposes of computing service to award to members who
die during qualified military service, service shall be computed as
follows:
(a) The service credit the member would have received for the
eligible period of service through the beginning of the period of
qualified military leave through the date of death.
(b) In the event the service credit earnable is not reasonably
certain, vesting credit shall be based on the member's average
service credit earned during the 12-month period immediately
preceding the eligible period of service in the uniformed services
or, if shorter, the period of employment immediately preceding that
period of service.
SEC. 5. Section 23100 of the Education Code is amended to read:
23100. (a) Upon the termination of a
member's employment by any cause other than death,
disability, or retirement there shall be paid to the member
, a member may elect to be paid , pursuant to
this part, each of the following:
(1) The member's accumulated retirement contributions made after
June 30, 1935.
(2) The member's accumulated annuity deposit contributions.
(3) An amount equal to the balance of credits in the member's
Defined Benefit Supplement account.
(b) Accumulated retirement contributions and accumulated annuity
deposit contributions shall include credited interest through the
date of payment.
(c) Accumulated retirement contributions shall be reduced by the
amount of retirement or disability benefits paid to a member pursuant
to this part.
SEC. 6. Section 23101 of the Education Code is amended to read:
23101. (a) When a member's accumulated
retirement contributions are refunded, as provided in Section 23100,
all rights to benefits pertaining to the service credit represented
by those contributions under this part are forfeited. Those rights
and benefits, based upon service performed prior to refund, shall not
be restored until the member has redeposited the total of the
refunded accumulated retirement contributions, and paid the regular
interest thereon as provided in Chapter 19 (commencing with Section
23200).
(b) In addition to the rights and benefits described in
subdivision (a), any beneficiary designation made by a member
pursuant to Chapter 20 (commencing with Section 23300) and Chapter 28
(commencing with Section 24300) under this part shall be invalidated
upon the refund of the member's accumulated retirement
contributions.
SEC. 7. Section 23103 of the Education Code is amended to read:
23103. Refunds to a member shall be made upon request of the
member on a properly executed form prescribed by the system
, or may be made without a request if it appears to
is determined by the board that the member's
employment is permanently terminated and the member does not have
enough credited service under the Defined Benefit Program to qualify
for service retirement under this part.
SEC. 8. 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) 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.A. 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) 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, 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) 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, 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.
SEC. 9. Section 23801 of the Education Code is amended to read:
23801. (a) A death payment of no less than five thousand dollars
($5,000) shall be paid to the beneficiary upon receipt of proof of
death of a member who had one or more years of credited service
, including service deemed to the member under subparagraph (B) of
paragraph (2) of subdivision (a) of Section 22851 , at least
one of which had been performed earned
subsequent to the most recent refund of accumulated retirement
contributions, if the member died during any one of the following
periods:
(1) While in employment for which creditable compensation is paid.
(2) While disabled, if the disability had been continuous from the
last day for which creditable compensation had been paid.
(3) Within four months after termination of creditable service or
termination of employment, whichever occurs first.
(4) Within four months after termination of a disability allowance
if no service was performed after the termination.
(5) Within 12 months of the last day for which creditable
compensation was paid, if the member was on an approved leave of
absence without compensation for reasons other than disability
or military service .
(6) While on a leave of absence to perform qualified military
service, if the death occurred on or after January 1, 2007.
(b) A death payment pursuant to this section shall not be payable
for the death of a member that occurs within one year commencing with
the effective date of reinstatement from service retirement pursuant
to Section 24208.
(c) The board may adjust the death payment amount following each
actuarial valuation based on changes in the All Urban California
Consumer Price Index and adopt any adjusted amount as a plan
amendment.
(d) A beneficiary may waive his or her right to the death payment
in accordance with the requirements established by the system.
SEC. 10. Section 23802 of the Education Code is amended to read:
23802. (a) Upon receipt of proof of death of a member who has no
preretirement option in effect, and who either does not meet the
eligibility requirements set forth in Section 23804, or meets the
eligibility requirements set forth in Section 23804 but has no
eligible survivors for a family allowance as specified in
Section 23805 or 23806 , there shall be paid to the beneficiary
both of the following:
(1) The accumulated retirement contributions after July 1, 1935.
(2) The accumulated annuity deposit contributions.
(b) Accumulated contributions include credited interest through
the date of payment.
SEC. 11. Section 23851 of the Education Code is amended to read:
23851. (a) A death payment of not less than twenty thousand
dollars ($20,000) shall be paid to the beneficiary, as designated
pursuant to Section 23300, upon receipt of proof of death of a
member, who had one or more years of credited service ,
including service deemed to the member under subparagraph (B) of
paragraph (2) of subdivision (a) of Section 22851 , at least
one of which had been performed earned
subsequent to the most recent refund of accumulated retirement
contributions, if the member died during any one of the following
periods:
(1) While in employment for which creditable compensation is paid.
(2) Within four months after termination of creditable service or
termination of employment, whichever occurs first.
(3) Within 12 months of the last day for which creditable
compensation was paid, if the member was on an approved leave of
absence without creditable compensation for reasons other than
disability or military service .
(4) While on a leave of absence to perform qualified military
service, if the death occurred on or after January 1, 2007.
(b) A death payment pursuant to this section shall not be payable
for the death of a member that occurs within one year commencing with
the effective date of termination of the service retirement
allowance pursuant to Section 24208 or during the six calendar months
commencing with the effective date of termination of the disability
retirement allowance pursuant to Section 24117.
(c) The board may adjust the death payment amount following each
actuarial valuation based on changes in the All Urban California
Consumer Price Index and adopt as a plan amendment with respect to
the Defined Benefit Program any adjusted amount.
(d) A designated beneficiary may waive the right to the death
payment in accordance with the requirements established by the
system.
SEC. 12. Section 23852 of the Education Code is amended to read:
23852. Upon receipt of proof of death of a member who has no
preretirement option in effect:
(a) The surviving spouse may elect to receive either of the
following:
(1) The member's accumulated retirement contributions in a lump
sum.
(2) The If the member meets the provisions
set forth in Section 23854, the survivor benefit allowance
pursuant to Sections 23854 and 23855.
(b) If there is no eligible surviving spouse,
and the member meets the provisions set forth in Section 23854,
then each eligible dependent child
or children shall receive the child's portion of the
survivor benefit allowance pursuant to Sections 23854, 23855, and
23856. The child's portion of the survivor benefit allowance shall be
paid in lieu of the return of the member's accumulated retirement
contributions.
(c) If there is no eligible surviving spouse or
eligible dependent child or children
to receive a benefit under subdivision (a) or (b)
, the member's accumulated retirement contributions shall be
paid to the member's beneficiary in a lump sum.
(d) The member's accumulated annuity deposit contributions shall
be paid to the member's beneficiary in a lump sum.
(e) The payment of accumulated contributions in a lump sum shall
include credited interest through the date of payment.
SEC. 13. Section 23854 of the Education Code is amended to read:
23854. (a) A survivor benefit allowance is payable upon receipt
of proof of death of a member, as defined in Section 23850, who had
one or more years of credited service , including deemed service
under subparagraph (B) of paragraph (2) of subdivision (a) of
Section 22851 , at least one of which had been
performed earned subsequent to the most recent
refund of accumulated retirement contributions.
(b) For the survivor benefit allowance to be payable upon the
death of a member, all of the following conditions shall be met at
the time of death:
(1) Death occurred after October 15, 1992.
(2) A preretirement election of an option is not in effect.
(3) Death occurs during any one of the following periods:
(A) While in employment for which compensation is paid.
(B) Within four months after termination of service or termination
of employment, whichever occurs first.
(C) Within four months after termination of disability allowance.
(D) Within four months after reinstatement from disability
retirement.
(E) Within 12 months following the last day for which compensation
was paid if the member was on an approved leave of absence without
compensation for reasons other than disability or military
service .
(F) While on a leave of absence to perform qualified military
service, if the death occurred on or after January 1, 2007.
(4) At least one-half year of credited service had been performed
subsequent to the end of the last break in service, if a break in
service of more than one year had occurred.
(5) At least one year of credited service had been performed
subsequent to the last reinstatement date, if reinstated from service
retirement.
(c) The survivor benefit allowance shall be paid in lieu of the
return of the member's accumulated retirement contributions.
(d) The survivor benefit allowance may be terminated, if all
eligible beneficiaries formally waive their rights in accordance with
the requirements established by the system.
SEC. 14. 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:
(1)
(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.
(2)
(B) The last five years of credited service were
performed in this state.
(3)
(C) Except as described in subdivision (d) of Section
24201.5, at least one year was credited for service performed
subsequent to the date on which the member terminated the service
retirement allowance under Section 24208.
(4)
(D) At least one year was credited for service
performed subsequent to the most recent refund of accumulated
retirement contributions.
(5)
(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.
(6)
(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. 15. Section 24002 of the Education Code is amended to read:
24002. (a) The board may authorize payment
of a disability allowance to any member who is qualified upon
application under this part by the member, the member's guardian or
conservator, or the member's employer, if the application is
submitted on a properly executed form prescribed by the system during
any one of the following periods:
(a)
(1) While the member is employed or on a compensated
leave of absence.
(b)
(2) While the member is physically or mentally
incapacitated for performance of service and the incapacity has been
continuous from the last day of actual performance of service for
which compensation is payable to the member.
(c)
(3) While the member is on a leave of absence without
compensation, granted for reason other than mental or physical
incapacity for performance of service, and within four months after
the last day of actual performance of service for which compensation
is payable to the member, or within 12 months of that date if the
member is on an employer-approved leave to study at an approved
college or university.
(d)
(4) Within four months after the termination of the
member's employment subject to coverage under the Defined Benefit
Program, if the application was not made under subdivision
(b) paragraph (2) and was not made more than
four months after the last day of actual performance of service for
which compensation is payable to the member.
(e) A member with a dependent child, who becomes disabled prior to
normal retirement age, and whose sick leave will extend beyond
normal retirement age, 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.
(f)
(b) The A member is not
qualified to receive a disability allowance if the member is
applying for a disability allowance because
of a physical or mental condition that existed at the time the most
recent membership in the Defined Benefit Program commenced and which
remains substantially unchanged at the time of application.
SEC. 16. Section 24003 of the Education Code is amended to read:
24003. (a) The member shall provide medical documentation to
substantiate the impairment qualifying the member for the disability
allowance.
(b) On receipt of an application for disability allowance under
this part, the system may order a medical examination or review
of medical documentation of a member to determine whether the
member is incapacitated for performance of service. The medical
examination or review of medical documentation shall be
conducted by a practicing physician, selected by the board, with
expertise in the member's disability
impairment and the board shall pay all costs associated with
the examination or review of medical documentation .
The board shall pay all other reasonable costs related to
travel and meals in accordance with the rates set for state employees
by the Department of Personnel Administration. If the
member refuses to submit to the required medical examination or
review of medical documentation , the application for
disability allowance shall be rejected. The
If a medical examination is ordered:
(1) The member shall either
remain in this state, or return to this state at the member's own
expense, to undergo the initial evaluations or examinations
medical examination , or the application shall
be rejected, unless this requirement is waived by the board.
If The board shall pay all other reasonable costs
related to travel and meals in accordance with the rates set for
state employees by the Department of Personnel
Administration.
(2) If the member is too ill to
be examined, the system shall postpone the examination until the
member can be examined. The member or the member's treating physician
shall inform the system, in writing, when the medical examination
can be rescheduled.
(c) The system may reject the disability allowance application
under this part if the member fails to provide requested medical
documentation to substantiate
a disability, as defined in Section 22126, within 45 days from
the date of the request or within 30 days from the time that a
legally designated representative is empowered to act on behalf of a
member who is mentally or physically incapacitated.
(d) If the board determines that a member who has applied for a
disability allowance under this part may perform service in the
member's former position of employment or in a comparable level
position with the assistance of reasonable accommodation, the board
may require the member to request reasonable accommodation from the
employer. Failure of the member to request reasonable accommodation,
as directed by the board, may be grounds for cancellation of the
disability allowance application.
(e) If the employer fails or refuses to provide reasonable
accommodation, the board may require the member to pursue an
administrative appeal of the employer's denial as a condition for
receiving a disability allowance under this part.
(f) The system shall inform the member of the rejection or
cancellation of the member's disability allowance application under
this part within 30 days after that determination is made by the
system.
(g) In determining whether a member meets the definition of
disability pursuant to Section 22126, the board shall make a
determination on the basis of competent medical documentation and
shall not use the awarding of a disability allowance as a substitute
for the disciplinary process.
SEC. 17. Section 24102 of the Education Code is amended to read:
24102. (a) The board may authorize payment
of a disability retirement allowance under this part to any member
who is qualified upon application by the member, the member's
guardian or conservator, or the member's employer, if the application
is submitted on a properly executed form prescribed by the system
during any one of the following periods:
(a)
(1) While the member is employed or on a compensated
leave of absence.
(b)
(2) While the member is physically or mentally
incapacitated for performance of service and the incapacity has been
continuous from the last day of actual performance of service for
which compensation is payable to the member.
(c)
(3) While the member is on a leave of absence without
compensation, granted for reason other than mental or physical
incapacity for performance of service, and within four months after
the last day of actual performance of service for which compensation
is payable to the member, or within 12 months of that date if the
member was on an employer-approved leave to study at an approved
college or university.
(d)
(4) Within four months after the termination of the
member's employment subject to coverage under the Defined Benefit
Program, if the application was not made under subdivision
(b) paragraph (2) and was not made more than
four months after the last day of actual performance of service for
which compensation is payable to the member.
(e)
(b) The member is not qualified to receive a
disability allowance if the member is applying for a
disability retirement allowance because of a physical or
mental condition that existed at the time the most recent membership
in the Defined Benefit Program commenced and which remains
substantially unchanged at the time of application.
SEC. 18. Section 24103 of the Education Code is amended to read:
24103. (a) The member shall provide medical documentation
substantiating the impairment qualifying the member for the
disability retirement under this part.
(b) On receipt of an application for disability retirement under
this part, the system may order a medical examination or review
of medical documentation of a member to determine whether the
member is incapacitated for performance of service. The medical
examination or review of medical documentation shall be
conducted by a practicing physician, selected by the board, with
expertise in the member's disability
impairment , and the board shall pay all costs associated with
the examination or review of medical documentation .
The board shall pay all other reasonable costs related to
travel and meals in accordance with the rates set for state employees
by the Department of Personnel Administration. If the
member refuses to submit to the required medical examination or
review of medical documentation , the application for
disability retirement shall be rejected. The
If a medical examination is ordered:
(1) The member shall either
remain in this state, or return to this state at the member's own
expense, to undergo the initial evaluations or examinations
medical examination or the application shall be
rejected, unless this requirement is waived by the board. If
The board shall pay all other reasonable costs
related to travel and meals in accordance with the rates set for
state employees by the Department of Personnel Administration.
(2) If the member is too ill to
be examined, the system shall postpone the examination until the
member can be examined. The member or the member's treating physician
shall inform the system, in writing, when the medical examination
can be rescheduled.
(c) The system may reject the disability retirement application
under this part if the member fails to provide requested medical
documentation to substantiate a disability, as defined in Section
22126, within 45 days from the date of the request or within 30 days
from the time that a legally designated representative is empowered
to act on behalf of a member who is mentally or physically
incapacitated.
(d) If the board determines that a member who has applied for
disability retirement under this part may perform service in the
member's former position of employment or in a comparable level
position with the assistance of reasonable accommodation, the board
may require the member to request reasonable accommodation from the
employer. Failure of the member to request reasonable accommodation,
as directed by the board, may be grounds for cancellation of the
disability retirement application under this part.
(e) If the employer fails or refuses to provide reasonable
accommodation, the board may require the member to pursue an
administrative appeal of the employer's denial as a condition for
receiving a disability retirement allowance under this part.
(f) The system shall inform the member of the rejection or
cancellation of the member's disability retirement allowance
application under this part within 30 days after that determination
is made by the system.
(g) In determining whether a member meets the definition of
disability pursuant to Section 22126, the board shall make a
determination on the basis of competent medical documentation and
shall not use the awarding of a disability retirement as a substitute
for the disciplinary process.
SEC. 19. Section 24204 of the Education Code is amended to read:
24204. 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:
(a) 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.
(b) The effective date is later than the last day of creditable
service for which compensation is payable to the member.
(c) The effective date is no earlier than the first day of the
month in which the application is received at the system's
headquarters office, as established pursuant to Section 22375.
(d)
(c) The effective date is no earlier than one year
following the date on which the retirement allowance was terminated
under Section 24208, or subdivision (a) of Section 24117.
(e)
(d) 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.
(f)
(e) 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, established pursuant to Section 22375, no later
than the last day of the month in which the retirement date is
effective.
SEC. 20. 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 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 .
SEC. 21. Section 24214 of the Education Code, as amended by
Section 1 of Chapter 306 of the Statutes of 2009, is amended to read:
24214. (a) A member retired for service under this part may
perform the activities identified in subdivision (a) or (b) of
Section 22119.5 , or subdivision (a) or (b) of Section 26113,
as an employee of an employer, as an employee of a third party,
or as an independent contractor within the California public school
system, but the member may shall not
make contributions to the retirement fund or accrue service credit
based on compensation earned from that service. The employer shall
maintain accurate records of the earnings of the retired member and
report those earnings monthly to the system and retired member as
described in Section 22461.
(b) If a member is retired for service under this part, the rate
of pay for service performed by that member as an employee of the
employer, as an employee of a third party, or as an independent
contractor may shall not be less than
the minimum, nor exceed that paid by the employer to other employees
performing comparable duties.
(c) A member retired for service under this part may
shall not be required to reinstate for
performing the activities identified in subdivision (a) or (b) of
Section 22119.5 as an employee of an employer, as an employee of a
third party, or as an independent contractor within the California
public school system.
(d) A member retired for service under this part may earn
compensation for performing activities identified in subdivision (a)
or (b) of Section 22119.5 in any one school year up to the limitation
specified in subdivision (f) as an employee of an employer, as an
employee of a third party, or an independent contractor, within the
California public school system, without a reduction in his or her
retirement allowance.
(e) (1) The postretirement compensation limitation provisions set
forth in this section are not applicable to compensation earned by a
member retired for service under this part who has returned to work
after the date of retirement and, for a period of at least 12
consecutive months, has not performed the activities identified in
subdivision (a) or (b) of Section 22119.5 as an employee of an
employer, as an employee of a third party, or as an independent
contractor within the California public school system. For the
purpose of this paragraph, the period of 12 consecutive months shall
begin no earlier than the effective date of the member's most recent
retirement.
(2) The postretirement compensation limitation provisions set
forth in this section are not applicable to compensation earned for
the performance of the activities described in subdivision (a) for
which the employer is not eligible to receive state apportionment or
to compensation that is not creditable pursuant to Section 22119.2.
(f) The limitation that shall apply to the compensation for
performance of the activities identified in subdivision (a) or (b) of
Section 22119.5 by a member retired for service under this part
either as an employee of an employer, an employee of a third party,
or as an independent contractor shall, in any one school year, be an
amount calculated by the board each July 1 equal to twenty-two
thousand dollars ($22,000) adjusted by the percentage change in the
average compensation earnable of active members of the Defined
Benefit Program, as determined by the system, from the 1998-99 fiscal
year to the fiscal year ending in the previous calendar year.
(g) If a member retired for service under this part earns
compensation for performing activities identified in subdivision (a)
or (b) of Section 22119.5 in excess of the limitation specified in
subdivision (f), as an employee of an employer, as an employee of a
third party, or as an independent contractor, within the California
public school system, and if that compensation is not exempt from
that limitation under subdivision (e) or any other provisions of law,
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 shall not exceed the amount of the
annual allowance payable under this part for the fiscal year in which
the excess compensation was earned.
(h) The amendments to this section enacted during the 1995-96
Regular Session shall be deemed to have become operative on July 1,
1996.
(i) This section shall remain in effect only until June 30, 2012,
and shall be repealed on January 1, 2013, unless a later enacted
statute deletes or extends that date.
SEC. 22. Section 24214 of the Education Code, as amended by
Section 2 of Chapter 306 of the Statutes of 2009, is amended to read:
24214. (a) A member retired for service under this part may
perform the activities identified in subdivision (a) or (b) of
Section 22119.5 , or subdivision (a) or (b) of Section 26113,
as an employee of an employer, as an employee of a third party,
or as an independent contractor within the California public school
system, but the member may shall not
make contributions to the retirement fund or accrue service credit
based on compensation earned from that service. The employer shall
maintain accurate records of the earnings of the retired member and
report those earnings monthly to the system and retired member as
described in Section 22461.
(b) If a member is retired for service under this part, the rate
of pay for service performed by that member as an employee of the
employer, as an employee of a third party, or as an independent
contractor within the California public school system may
shall not be less than the minimum, nor exceed
that paid by the employer to other employees performing comparable
duties.
(c) A member retired for service under this part may
shall not be required to reinstate for
performing the activities identified in subdivision (a) or (b) of
Section 22119.5 as an employee of an employer, as an employee of a
third party, or as an independent contractor within the California
public school system.
(d) A member retired for service under this part may earn
compensation for performing activities identified in subdivision (a)
or (b) of Section 22119.5 in any one school year up to the limitation
specified in subdivision (f) as an employee of an employer, as an
employee of a third party, or an independent contractor, within the
California public school system, without a reduction in his or her
retirement allowance.
(e) The postretirement compensation limitation provisions set
forth in this section are not applicable to compensation earned for
the performance of the activities described in subdivision (a) for
which the employer is not eligible to receive state apportionment or
to compensation that is not creditable pursuant to Section 22119.2.
(f) The limitation that shall apply to the compensation for
performance of the activities identified in subdivision (a) or (b) of
Section 22119.5 by a member retired for service under this part
either as an employee of an employer, an employee of a third party,
or as an independent contractor shall, in any one school year, be an
amount calculated by the board each July 1 equal to twenty-two
thousand dollars ($22,000) adjusted by the percentage change in the
average compensation earnable of active members of the Defined
Benefit Program, as determined by the system, from the 1998-99 fiscal
year to the fiscal year ending in the previous calendar year.
(g) If a member retired for service under this part earns
compensation for performing activities identified in subdivision (a)
or (b) of Section 22119.5 in excess of the limitation specified in
subdivision (f), as an employee of an employer, as an employee of a
third party, or as an independent contractor, within the California
public school system, 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 annual allowance payable under this part for
the fiscal year in which the excess compensation was earned.
(h) The language of this section derived from the amendments to
the section of this number added by Chapter 394 of the Statutes of
1995, enacted during the 1995-96 Regular Session, is deemed to have
become operative on July 1, 1996.
(i) This section shall become operative on July 1, 2012.
SEC. 23. Section 24214.5 of the Education Code is amended to read:
24214.5. (a) Notwithstanding Section 24214, as of July 1, 2010,
the postretirement compensation limitation that shall apply to the
compensation for performance of the activities identified in
subdivision (a) or (b) of Section 22119.5 either as an employee of an
employer, an employee of a third party, or as an independent
contractor, within the California public school system, shall be zero
dollars ($0) during the first six calendar months after the
most recent retirement of a member retired for service under
this part, if the member is below normal retirement age at the time
the compensation is earned.
(b) If a member retired for service under this part earns
compensation for performing activities identified in subdivision (a)
or (b) of Section 22119.5 in excess of the limitation specified in
subdivision (a), as an employee of an employer, as an employee of a
third party, or as an independent contractor, within the California
public school system, 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 annual allowance payable under this part for
the fiscal year in which the excess compensation was earned.
SEC. 24. Section 24216 of the Education Code is amended to read:
24216. (a) (1) A member retired for service under this part who
is appointed as a trustee or administrator by the Superintendent
pursuant to Section 41320.1, or who is appointed as a trustee
pursuant to the Local Educational Agency Intervention provisions
(Article 3.1 (commencing with Section 52055.57) of Chapter 6.1 of
Part 28 of Title 2), or a member retired for service who is assigned
by a county superintendent of schools pursuant to Article 2
(commencing with Section 42122) of Chapter 6 of Part 24, shall be
exempt from subdivisions (d) and (f) of Section 24214 for a maximum
period of 24 consecutive months.
(2) The period of exemption shall commence on the date the member
retired for service is appointed or assigned to the position and
shall end no more than 24 consecutive months from that date, after
which the limitation specified in subdivisions (d) and (f) of Section
24214 shall apply.
(3) An exemption under this subdivision shall be granted by the
system providing that the Superintendent or the county superintendent
of schools submits documentation required by the system to
substantiate the eligibility of the member retired for service for an
exemption under this subdivision. The documentation shall be
received by the system no later than June 30 of the school
year for which the exemption is to apply 60 calendar
days after the member retired for service commences creditable
service .
(b) (1) A member retired for service under this part who is
employed by an employer to perform creditable service in an emergency
situation to fill a vacant administrative position requiring highly
specialized skills shall be exempt from the provisions of
subdivisions (d) and (f) of Section 24214 for creditable service
performed up to one-half of the full-time position, if the vacancy
occurred due to circumstances beyond the control of the employer.
(2) The period of exemption shall commence on the date the member
retired for service is appointed or assigned to the position and
shall end no more than 24 consecutive months from that date, after
which the limitation specified in subdivisions (d) and (f) of Section
24214 shall apply.
(3) An exemption under this subdivision shall be granted by the
system subject to the following conditions:
(A) The recruitment process to fill the vacancy on a permanent
basis is expected to extend over several months.
(B) The employment is reported in a public meeting of the
governing body of the employer.
(C) The employer submits documentation required by the system to
substantiate the eligibility of the member retired for service for an
exemption under this subdivision. The documentation shall be
received by the system no later than June 30 of the school
year for which the exemption is to apply 60 calendar
days after the member retired for service commences creditable
service .
(4) An exemption under this subdivision shall not be granted to a
member retired for service whose termination of employment with the
employer is the basis for the vacant administrative position.
(c) This section does not apply to any person who has received
additional service credit pursuant to Section 22715 or 22716.
(d) A person who has received additional service credit pursuant
to Section 22714 or 22714.5 shall be ineligible
for one year from the effective date of retirement for the exemption
provided in this section for service performed in any school
district, community college district, or county office of education
in the state.
(e) This section shall remain in effect only until June 30, 2012,
and shall be repealed on January 1, 2013, unless a later enacted
statute deletes or extends that date.
SEC. 25. Section 24216.5 of the Education Code is amended to read:
24216.5. (a) The compensation earned by a member who retired for
service under this part shall be exempt from subdivisions (d), (f),
and (g) of Section 24214, if all of the following conditions are met:
(1) The member retired for service with an effective date on or
before January 1, 2009.
(2) The member retired for service is employed by a school
district to provide any of the following:
(A) Direct classroom instruction to pupils enrolled in
kindergarten or any of grades 1 to 12, inclusive.
(B) Support and assessment for new teachers through the Beginning
Teacher Support and Assessment program authorized by Section 44279.1.
(C) Support to individuals completing student teaching
assignments.
(D) Support to individuals participating in the following
programs:
(i) Pre-Internship Teaching Program authorized pursuant to Article
5.6 (commencing with Section 44305) of Chapter 2 of Part 25.
(ii)
(i ) Alternative certification programs
authorized pursuant to Article 11 (commencing with Section 44380) of
Chapter 2 of Part 25.
(iii)
(ii ) School Paraprofessional Teacher
Training Program established pursuant to Article 12 (commencing with
Section 44390) of Chapter 2 of Part 25.
(E) Instruction and pupil services provided to pupils enrolled in
special education programs authorized pursuant to Part 30 (commencing
with Section 56000) of Division 4 of Title 2.
(F) Instruction to pupils enrolled in English language learner
programs authorized pursuant to Chapter 3 (commencing with Section
300), Chapter 4 (commencing with Section 400), and Chapter 6
(commencing with Section 430) of Part 1 of Division 1.
(3) All members retired for service whose employment with a school
district meets the conditions specified in this section shall be
treated as a distinct class of temporary employees within the
existing bargaining unit whose service may not be included in
computing the service required as a prerequisite to attainment of or
eligibility for classification as a permanent employee of a school
district. The compensation for service performed by this class of
employees shall be established in accordance with subdivision (b) of
Section 24214 and agreed to in the collective bargaining agreement
between the employing school district and the exclusive
representative for the existing bargaining unit within which these
temporary employees of the school district are treated as a distinct
class.
(4) The employing school district submits documentation required
by the system to substantiate the eligibility of the temporary
employment of a member retired for service for the exemption under
this subdivision. The documentation shall be received by the system
no later than June 30 of the school year for which the
exemption is to apply 60 calendar days after the
member retired for service commences creditable service .
(b) A school district that employs a member retired for service
pursuant to this section shall maintain accurate records of the
retired member's compensation earned and shall report that
compensation monthly to the system regardless of the method of
payment or the source of funds from which the compensation is paid.
(c) This section does not apply to the compensation earned for
creditable service performed by a member retired for service for a
community college district.
(d) This section shall remain in effect only until June 30, 2012,
and shall be repealed as of January 1, 2013, unless a later enacted
statute deletes or extends that date.
SEC. 26. Section 24216.6 of the Education Code is amended to read:
24216.6. (a) The compensation earned by a member who retired for
service under this part shall be exempt from subdivisions (d), (f),
and (g) of Section 24214, if all of the following conditions are met:
(1) The member retired for service with an effective date on or
before January 1, 2009.
(2) The member retired for service is employed by a school
district to provide direct remedial instruction to pupils in grades 2
to 12, inclusive. "Remedial instruction" means the programs
specified in Sections 37252 and 37252.2.
(3) All members retired for service whose employment with a school
district meets the conditions specified in this section shall be
treated as a distinct class of temporary employees within the
existing bargaining unit whose service may not be included in
computing the service required as a prerequisite to attainment of or
eligibility for classification as a permanent employee of a school
district. The compensation for service performed by this class of
employees shall be established in accordance with subdivision (b) of
Section 24214 and agreed to in the collective bargaining agreement
between the employing school district and the exclusive
representative for the existing bargaining unit within which these
temporary employees of the school district are treated as a distinct
class.
(4) The employing school district submits documentation required
by the system to substantiate the eligibility of the temporary
employment of a member retired for service for the exemption under
this subdivision. That documentation shall be on a properly executed
form provided by the system and shall be received by the system no
later than June 30 of the school year for which the
exemption is to apply 60 calendar days after the
member retired for service commences creditable service .
(b) A school district that employs a member retired for service
pursuant to this section shall maintain accurate records of the
retired member's compensation earned and shall report that
compensation monthly to the system regardless of the method of
payment or the source of funds from which the compensation is paid.
(c) This section does not apply to the compensation earned for
creditable service performed by a member retired for service for a
county office of education or a community college district.
(d) This section shall remain in effect only until June 30, 2012,
and shall be repealed as of January 1, 2013, unless a later enacted
statute deletes or extends that date.
SEC. 27. Section 24300.1 of the Education Code is amended to read:
24300.1. (a) A member may, prior to the effective date
of his or her retirement 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 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 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 member and upon the death of the
member, 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
member and the member's option beneficiary or beneficiaries.
(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 form prescribed by the
system, which shall be duly executed and filed
with the system at the time on or before the
last day of the month of the member's retirement. Except
as otherwise provided by this chapter, the option shall become
effective on the member's retirement date.
(c) A member may revoke or change an election of an option at any
time prior to the last day of the month of the effective
date of the member's retirement under this part. 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) 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) 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) 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. 28. 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, as established pursuant
to Section 22375, within 30 days of the date of the member's
signature and, if applicable, the spouse's signature, and before
the last day of the month of the effective date of retirement
under this part or during the period between termination of the
retirement allowance pursuant to Section 24117 or 24208 and the
last day of the month of the effective date of the subsequent
retirement under this part. The change or cancellation shall become
effective as of the date of the member's signature.
(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. 29. 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 60
years of 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) A (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.
SEC. 30. Section 26505 of the Education Code is amended to read:
26505. If a participant who has retired and is receiving an
annuity under the Cash Balance Benefit Program becomes reemployed
prior to 60 years of age or becomes reemployed on or after
60 years of age but within one year of his or her retirement date,
to perform creditable service subject to coverage by the
plan, the annuity shall be terminated, the employee account and the
employer account of the participant shall be credited with respective
balances that reflect the actuarial equivalent of the participant's
retirement benefit as of the date of the reemployment and the
Annuitant Reserve shall be reduced by the amount of the credits. If a
participant who has retired and is receiving an annuity under the
Cash Balance Benefit Program becomes reemployed on or after age 60
and more than one year after retirement to perform
creditable service under the plan, the annuity shall continue
and employee contributions and employer contributions for
the creditable service shall be made to the plan and shall be
credited to new employee and employer accounts established on behalf
of the participant .
SEC. 31. Section 26812 is added to the Education Code, to read:
26812. (a) A participant retired for service under this part may
perform the activities identified in subdivision (a) or (b) of
Section 26113 as an employee of an employer, as an employee of a
third party, or as an independent contractor within the California
public school system, but the participant shall not make
contributions to the plan or accrue service credit based on
compensation earned from that service. The employer shall maintain
accurate records of the earnings of the retired member and report
those earnings monthly to the system and retired member as described
in Section 22461.
(b) If a participant is retired for service under this part, the
rate of pay for service performed by that member as an employee of
the employer, as an employee of a third party, or as an independent
contractor shall not be less than the minimum, nor exceed that paid
by the employer to other employees performing comparable duties.
(c) A participant retired for service under this part shall not be
required to reinstate for performing the activities identified in
subdivision (a) or (b) of Section 26113 as an employee of an
employer, as an employee of a third party, or as an independent
contractor within the California public school system.
(d) If a participant retired for service under this part is below
normal retirement age and earns compensation for performing
activities identified in subdivision (a) or (b) of Section 26113 as
an employee of an employer, as an employee of a third party, or as an
independent contractor, within the California public school system,
the participant's annuity shall be reduced by the amount of the
compensation. This reduction shall only be made for compensation
earned during the first 180 calendar days after a participant retired
for service under this part, if the participant is below normal
retirement age at the time the compensation is earned. The amount of
the reduction may be equal to the monthly annuity payable but shall
not exceed the amount of the annual annuity payable under this part
for the fiscal year in which the compensation was earned.
SEC. 32. Section 26813 is added to the Education Code, to read:
26813. A member retired for service under the Defined Benefit
Program may perform the activities identified in subdivision (a) or
(b) of Section 22119.5 and subdivision (a) or (b) of Section 26113 in
any one school year up to the limitation specified in sections 24214
and 24214.5 as an employee of an employer, as an employee of a third
party, or as an independent contractor within the California public
school system, but the member may not make contributions to the fund
or accrue service credit based on compensation earned from that
service. The employer shall maintain accurate records of the earnings
of the retired member and report those earnings monthly to the
system and retired member as described in Section 22461.
SEC. 33. Any section of any other act enacted by the Legislature
during the 2011 calendar year that takes effect on or before January
1, 2012, 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 2010 calendar year and takes
effect on or before January 1, 2012, amends, amends and renumbers,
adds, repeals and adds, or repeals any section contained in that
article, chapter, part, title, or division.