California Legislature—2013–14 Regular Session

Assembly Bill No. 1379

Introduced by Committee on Public Employees, Retirement and Social Security (Bonta (Chair), Jones-Sawyer, Mullin, Rendon, and Wieckowski)

February 26, 2013

An act to amend Sections 22007.5, 22134.5, 22135, 22164.5, 22303, 22461, 22662, 22663, 22664, 22717, 22717.5, 22801, 22829, 23001, 23104, 23202, 23300, 24002, 24005, 24102, 24105, 24201.5, 24203.5, 24203.6, 24204, 24208, 24209, 24209.3, 24211, 24212, 24213, 24214.5, 24300.2, 24301, 24306.5, 24306.7, 24307, 24309, 24311, 24312, 24312.1, 24613, 25011.5, 25018.2, 25022, 25940, and 26911 of, and to add Section 22175 to, the Education Code, relating to state teachers’ retirement.

LEGISLATIVE COUNSEL’S DIGEST

AB 1379, as introduced, Committee on Public Employees, Retirement and Social Security. Teachers’ Retirement Law.

(1) Existing law, the Teachers’ Retirement Law, establishes the Defined Benefit Program of the State Teachers’ Retirement Plan, which provides a defined benefit to members of the program. The (STRS) based on final compensation, credited service, and age at retirement, subject to certain variations. The STRS is administered by the Teachers’ Retirement Board. Existing law establishes the Defined Benefit Supplement Program, which provides supplemental retirement, disability, and other benefits, payable either in a lump-sum payment, an annuity, or both to members of the State Teachers’ Retirement Plan. 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 provides that a retired person who is receiving a pension benefit from a public retirement system is prohibited from employment with a public employer participating in the same retirement system unless he or she meets specified requirements and subjects that employment to specified limitations. Existing law provides a definition of retired member activities for purposes of the defined benefit program and the cash balance plan described above. Existing law requires that certain school entities retaining the services of a retired member inform that member of specified earning limitations.

This bill would provide that activities of an employee performing an assignment of 24 months or less are not included in the definition of retired member activities. This bill would require that a retired member be informed of employment restrictions and specifically of certain potential forfeitures of service credit.

(2) Existing law establishes the effective date for a STRS member’s service retirement and requires an employer to make a certification within 30 days of the effective date of the member’s service retirement regarding accumulated sick leave and leaves of absence.

This bill would provide that the time by which the employer is to provide the information described above may be measured with reference to the date application for retirement is received by the system’s headquarters office. The bill would also provide a definition for “system is headquarters office” and make conforming changes.

(3) Existing law authorizes the Teacher’s Retirement Board to permit payment of a disability allowance or a disability retirement allowance upon application by authorized parties if the application is properly submitted within specified periods.

This bill would establish a period for application based on the member’s performance of creditable service within the 4 months previous to application.

(4) Existing law prescribes various conditions pursuant to which a member of STRS who is eligible and applies for a disability allowance or a disability retirement allowance can receive that allowance.

This bill would make various changes regarding the effective date of an application for disability benefits with regard to when an application has been canceled or denied and the effective date of a termination of a disability retirement allowance. The bill would also require a member who cancels his or her retirement application to return the gross amount of all payments for the canceled retirement benefit to the system’s headquarters office, as specified, and would provide that the member is liable for any adverse tax consequences that may result from these actions.

(5) Existing law requires, if the death of a member occurs while the member is receiving an annuity under the Defined Benefit Supplement Program, the final benefit be paid in accordance with the terms of the annuity that the member elected.

This bill would specify the method of paying the annuity if certain institutions or entities are the beneficiary of the annuity.

(6) This bill would make various technical corrections and conforming amendments to the Teachers’ Retirement Law.

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 22007.5 of the Education Code is
amended to read:

22007.5.  

Except as excluded by subdivision (d) of Sections
22661 and 23812, subdivision begin delete (c) end delete begin insert (e) end insert of Section 24300.1, begin delete and end delete
subdivision (d) of begin delete Sections end delete begin insert Section end insert 25011.1, begin insert subdivision (c) of
Section end insert 25018.1, begin delete and end delete begin insert subdivision (d) of Section end insert 26807.5, begin insert and
subdivision (c) of Section 26906.5, end insert a person who is the registered
domestic partner of a member, as established pursuant to Section
297 or 299.2 of the Family Code, shall be treated in the same
manner as a “spouse,” as defined in Section 22171.

SEC. 2.  

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 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 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.

(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.

begin delete

(B) Section 22714.5.

end delete begin delete

(C)

end delete

begin insert (B) end insert  Section 22715.

begin delete

(D)

end delete

begin insert (C) end insert  Section 22717, except as provided in subdivision (b) of
Section 22121.

begin delete

(E)

end delete

begin insert (D) end insert  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.

SEC. 3.  

Section 22135 of the Education Code is amended to
read:

22135.  

(a) Notwithstanding subdivisions (a) and (b) of Section
22134, “final compensation” means the highest average annual
compensation earnable by an active member who is a classroom
teacher who retires, becomes disabled, or dies, after June 30, 1990,
during any period of 12 consecutive months during his or her
membership in 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 a written agreement with an exclusive representative,
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 begin delete (2) end delete begin insert (5) end insert 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. 4.  

Section 22164.5 of the Education Code is amended to
read:

22164.5.  

(a) “Retired member activities” means one or more
activities identified in subdivision (a) or (b) of Section 22119.5 or
subdivision (a) or (b) of Section 26113 within the California public
school system and performed by a member retired for service under
this part as one of the following:

(1) An employee of an employer.

(2) An employee of a third party, except as specified in
subdivision (b).

(3) An independent contractor.

(b) The activities of an employee of a third party shall not be
included in the definition of “retired member activities” if all of
the following conditions apply:

(1) The employee performs begin delete a limited-term end delete begin insert an end insert assignment begin insert of 24
months or less end insert .

(2) The third-party employer does not participate in a California
public pension system.

(3) The activities performed by the individual are not normally
performed by employees of an employer, as defined in Section
22131.

SEC. 5.  

Section 22175 is added to the Education Code, to read:

22175.  

“System’s headquarters office” means the office
building established as the permanent headquarters facility for the
system, pursuant to Section 22375.

SEC. 6.  

Section 22303 of the Education Code is amended to
read:

22303.  

(a) Due to an increase in the demand for retirement
counseling services, the system, notwithstanding any other
provision of law, may contract with a county superintendent or
other employer to provide retirement counseling. Retired public
employees may be employed on a part-time basis for that purpose,
unless and until the study required by subdivision (b) of Section
7 of Chapter 1532 of the Statutes of 1985 recommends against the
employment of retired public employees for these purposes. This
authorization is subject to the availability of funds appropriated
for that purpose in the annual Budget Act.

(b) The board may, by resolution, designate one or more official
representatives who provide retirement counseling pursuant to
subdivision (a), or as an employee of the system, to receive
documents submitted pursuant to this part, Part 13.5 (commencing
with Section 25900), or Part 14 (commencing with Section 26000).
Notwithstanding any other provision of law, any document received
by a designated system representative during regular counseling
office business hours or in the course of performing counseling
services pursuant to this subdivision shall be deemed to have been
received by the system’s headquarters office begin delete , as established
pursuant to Section 22375, end delete on the date received by the officially
designated system representative.

SEC. 7.  

Section 22461 of the Education Code is amended to
read:

22461.  

(a) Upon retaining the services of a retired member
under Section 24114, 24116, 24214, 24214.5, or 24215, the school
district, community college district, county superintendent of
schools, California State University, or other employing agency
shall do both of the following regardless of whether the retired
member performs the services as an employee of the employer,
an employee of a third party, or an independent contractor:

(1) Advise the retired member of the earnings limitation begin insert or
employment restriction end insert set forth in begin delete Sections end delete begin insert Section end insert begin insert 22714, end insert 24114,
24116, 24214, 24214.5, begin delete and end delete begin insert or end insert 24215.

(2) Maintain accurate records of the retired member’s earnings
and report those earnings monthly to the system and the retired
member regardless of the method of payment or the fund from
which the payments were made.

(b) This section shall not be construed to make any school
district, community college district, county superintendent of
schools, the California State University, or other employing agency
liable for any amount paid to the retired member in excess of the
earnings limitation under any circumstance, including the failure
to inform the retired member that continuation of service would
exceed the limitations.

SEC. 8.  

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. The nonmember spouses’ 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 begin delete , as established pursuant to Section
22375, end delete 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.

SEC. 9.  

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. 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 begin delete , as established pursuant to
Section 22375, end delete 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.

SEC. 10.  

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 begin delete 2 end delete begin delete 1⁄2 end delete begin insert two and one-half end insert
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
begin delete as described in Section 22375, end delete 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
60¼	2.033
60½	2.067
60¾	2.10
61	2.133
61¼	2.167
61½	2.20
61¾	2.233
62	2.267
62¼	2.30
62½	2.333
62¾	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.

SEC. 11.  

Section 22717 of the Education Code is amended to
read:

22717.  

(a) A member shall be granted credit at service
retirement for each day of accumulated and unused sick leave days
for which full salary is allowed to which the member was entitled
on the member’s final day of employment with the employer or
employers subject to coverage by the Defined Benefit Program
during the last school year in which he or she performed creditable
service. The system shall accept certification from each employer
with which the member has accumulated sick leave days for that
period, provided this leave has not been transferred to another
employer.

(b) The amount of service credit to be granted shall be
determined by dividing the number of days of accumulated and
unused sick leave days by the number of days of service the
employer requires the member’s class of employees to perform in
a school year during the member’s final year of creditable service
subject to coverage by the Defined Benefit Program, which shall
not be less than the minimum standard specified in Section
22138.5. The number of days shall not include school and legal
holidays. In no event shall the divisor be less than 175. For
members employed less than full time, the standards identified in
Section 22138.5 shall be considered as the minimum full-time
equivalent. For those standards identified in Section 22138.5 that
are applicable to teachers or instructors and that are expressed only
in terms of hours or instructional hours, the number of hours or
instructional hours shall be divided by six to determine the number
of days.

(c) When the member has made application for service
retirement under this part, the employer shall certify to the board,
within 30 days following the effective date of the member’s service
retirement begin insert or the date the application for retirement is received
by the system’s headquarters office whichever is later end insert , the number
of days of accumulated and unused sick leave days that the member
was entitled to on the final day of employment. The board may
assess a penalty on delinquent reports.

(d) This section shall be applicable to any person who retires
on or after January 1, 1999.

SEC. 12.  

Section 22717.5 of the Education Code is amended
to read:

22717.5.  

(a) A member shall be credited at service retirement
for each day of accumulated and unused leave of absence for
education for which full salary is allowed on the member’s final
day of employment with the state.

(b) The amount of service credit to be granted shall be 0.004
years of service for each unused day of educational leave credit.

(c) When the member has made application for service
retirement under this part, the employer shall certify to the board,
within 30 days following the effective date of the member’s service
retirement begin insert or the date the application for retirement is received
by the system’s headquarters office whichever is later end insert , the number
of days of accumulated and unused leave of absence for education
that the member was entitled to on the final day of employment.
The board may assess a penalty on delinquent reports.

(d) This section shall apply to eligible state employees in state
bargaining units that have agreed to this section in a memorandum
of understanding, or as authorized by the Director of Human
Resources for classifications of state employees that are excluded
from the definition of “state employee” by paragraph (c) of Section
3513 of the Government Code.

(e) The provisions of this section shall be effective for eligible
members who retire directly from state employment on or after
January 1, 2000.

SEC. 13.  

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. 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 begin delete , as described in Section 22375, end delete
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.

SEC. 14.  

Section 22829 of the Education Code is amended to
read:

22829.  

(a) This section applies only to a member who elects
to receive out-of-state service credit pursuant to Section 22827.

(b) The member shall pay 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 at the time of election.

(c) Contributions shall be based upon the member’s age at the
date of the election and upon compensation earnable in the last
school year of credited service or either of the two immediately
preceding school years, whichever is highest.

(d) Any payment that a member may make to the system to
obtain credit for out-of-state service shall be paid in full before a
member or beneficiary may receive any adjustment in the
appropriate allowance due date because of that payment.

(e) The system shall make any appropriate adjustments to the
member’s benefit allowance to reflect the purchase of additional
service retroactive to the effective date of retirement.

(f) Contributions for out-of-state service credit shall be made
in a lump sum.

(g) If the payment election described in subdivision (b) is not
received at the system’s headquarters office begin delete , as described in Section
22375, end delete within 30 days of receiving a bill for this purchase from
the system, the election shall be canceled.

(h) If the election to purchase out-of-state service is canceled
as described in subdivision (g), the member may, prior to June 30,
2009, make a new election to purchase out-of-state service pursuant
to this section.

SEC. 15.  

Section 23001 of the Education Code is amended to
read:

23001.  

Each county superintendent, district superintendent,
chancellor of a community college district, or other employing
agency that reports directly to the system shall draw requisitions
for contributions required by Sections 22901 and 22950 in favor
of the State Teachers’ Retirement System, and the requisitions,
when allowed and signed by the county auditor, shall constitute a
warrant against the county treasury. The county superintendent,
district superintendent, chancellor of a community college district,
or other employing agency thereupon shall forward the warrants
to the board in the system’s headquarters office begin delete , as established
pursuant to Section 22375 end delete . The amounts received shall be deposited
immediately in the State Treasury to the Teachers’ Retirement
Fund.

SEC. 16.  

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. 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 begin delete , as established pursuant to Section
22375, end delete 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. 17.  

Section 23202 of the Education Code is amended to
read:

23202.  

(a) An election pursuant to Section 23200 to redeposit
accumulated retirement contributions may be made by a member
anytime prior to the effective date of the member’s retirement
under this part.

(b) An election to redeposit accumulated retirement
contributions returned to the member shall be considered as an
election to repay accumulated retirement contributions previously
returned, up to but not exceeding the amount required to restore
the total service credit returned, under the provisions of this
chapter.

(c) If any payment due because of this election is not received
at the system’s headquarters office begin delete , as established pursuant to
Section 22375, end delete within 120 days of its due date, the election shall
be canceled. Upon the cancellation of election, the member shall
receive credit for the payments made under the election or, at the
request of the member, those payments shall be returned.

(d) If the election is canceled, the member may at any time prior
to the effective date of retirement under this part, again elect to
redeposit accumulated retirement contributions previously
withdrawn or returned, in accordance with Section 23200 and all
the laws, rules, and regulations pertaining thereto.

SEC. 18.  

Section 23300 of the Education Code is amended to
read:

23300.  

(a) A member of the Defined Benefit Program may
designate a beneficiary to receive benefits payable under this part
upon the member’s death. A beneficiary designation may not be
made in derogation of a community property interest of a
nonmember spouse, as defined by Section 25000.9, with respect
to service or contributions credited under this part, unless the
nonmember spouse has previously obtained an alternative order
pursuant to Section 2610 of the Family Code.

(b) A member’s beneficiary designation for benefits payable
under the Defined Benefit Program, including a designation made
pursuant to Section 24300 or 24300.1, shall also apply to benefits
payable under the Defined Benefit Supplement Program. A
beneficiary designation shall be in writing on a form prescribed
by the system and executed by the member.

(c) A beneficiary designation shall not be valid unless it is
received in the system’s headquarters office begin delete , as established pursuant
to Section 22375, end delete prior to the member’s death.

(d) A member may change or revoke a beneficiary designation
at any time by making a new designation pursuant to this section.

(e) This section is not applicable to the designation of an option
beneficiary or an annuity beneficiary under this part.

(f) An option beneficiary may designate a death beneficiary
who would, upon the death of the option beneficiary, be entitled
to receive the option beneficiary’s accrued monthly allowance.

SEC. 19.  

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:

(1) While the member is employed begin insert and has performed creditable
service within the four months previous to application, end insert or begin insert while
the member is end insert on a compensated leave of absence.

(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.

(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.

(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 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.

(b) A member is not qualified to receive a disability allowance
if the member is applying 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. 20.  

Section 24005 of the Education Code is amended to
read:

24005.  

(a) A disability 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 disability allowance 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 by the system’s
headquarters office begin delete , as established pursuant to Section 22375, end delete or
the date upon and continuously after which the member is
determined to the satisfaction of the board to have been mentally
incompetent.

(b) If the member is employed to perform creditable service
subject to coverage under the Defined Benefit Program at the time
the disability allowance is approved under this part, 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 approval of the disability allowance, the member’s
application for a disability allowance shall be rejected and a
disability allowance shall not be payable to the member.

SEC. 21.  

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:

(1) While the member is employed begin insert and has performed creditable
service within the four months previous to application, end insert or begin insert while
the member is end insert on a compensated leave of absence.

(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.

(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.

(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 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.

(b) The member is not qualified to receive a disability begin insert retirement end insert
allowance if the member is applying 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. 22.  

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 begin delete , as established pursuant to Section 22375, end delete or
the date upon and continuously after which the member is
determined to the satisfaction of the board to have been mentally
incompetent.

(b) If a member’s application for disability retirement under
this part does not contain an election of either an unmodified
allowance or an allowance modified under an option and if the
member subsequently submits an election, but not within the
30-day period established pursuant to Section 24301, the board
shall set a benefit effective date which is no earlier than the first
day of the month in which the subsequent election is received by
the system. If the member fails to submit an election pursuant to
Section 24301 and within six months of the date the
acknowledgment notice is mailed pursuant to Section 24301, the
member’s application for disability retirement under this part shall
be rejected.

(c) 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. 23.  

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, begin delete as established pursuant to Section
22375 end delete begin insert 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 on or after January
1, 2014, shall be no earlier than January 1, 2014 end insert .

(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 begin delete year following end delete begin insert day
after end insert the date on which a retirement allowance was terminated
pursuant to Section 24208 begin delete or subdivision (a) of Section 24117 end delete begin insert ,
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 end insert .

begin insert

(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.

end insert

(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 begin insert or canceled end insert , 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 begin insert or canceled end insert , 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 begin delete , as established
pursuant to Section 22375 end delete . 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)  begin delete Paragraph end delete begin insert Subparagraph (C) of paragraph (1) of
subdivision (a) of Section 24001 and paragraph end insert (3) of subdivision
(a) of begin delete Sections 24001 and end delete begin insert Section end insert 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 begin insert or canceled end insert begin insert , subparagraph (C) of paragraph (1) of
subdivision (a) of Section 24001 and end insert paragraph (3) of subdivision
(a) of begin delete Sections 24001 and end delete begin insert Section end insert 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. 24.  

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 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.

begin delete

(2) Section 22714.5.

end delete begin delete

(3)

end delete

begin insert (2) end insert  Section 22715.

begin delete

(4)

end delete

begin insert (3) end insert  Section 22717, except as provided in subdivision (b) of
Section 22121.

begin delete

(5)

end delete

begin insert (4) end insert  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. 25.  

Section 24203.6 of the Education Code is amended
to read:

24203.6.  

(a) In addition to the amount otherwise payable
pursuant to Sections 24202.5, 24203, 24203.5, 24205, 24209,
24209.3, 24210, 24211, and 24212, 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.

begin delete

(B) Section 22714.5.

end delete begin delete

(C)

end delete

begin insert (B) end insert  Section 22715.

begin delete

(D)

end delete

begin insert (C) end insert  Section 22717, except as provided in subdivision (b) of
Section 22121.

begin delete

(E)

end delete

begin insert (D) end insert  Section 22717.5.

begin delete

(F)

end delete

begin insert (E) end insert  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.

begin delete

(B) Section 22714.5.

end delete begin delete

(C)

end delete

begin insert (B) end insert  Section 22715.

begin delete

(D)

end delete

begin insert (C) end insert  Section 22717, except as provided in subdivision (b) of
Section 22121.

begin delete

(E)

end delete

begin insert (D) end insert  Section 22717.5.

begin delete

(F)

end delete

begin insert (E) end insert  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. 26.  

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 begin insert one day after end insert 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.

begin delete

(7) 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, as established pursuant to Section
22375, if the application is made pursuant to Section 24201.5.

end delete

(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 begin delete , established pursuant to Section 22375, end delete 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. begin insert 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. end insert

(c) The retirement date of a member retiring on begin delete and end delete begin insert or end insert after
January 1, 2012, shall be no earlier than January 1, 2012.

begin insert

(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.

end insert

SEC. 27.  

Section 24208 of the Education Code is amended to
read:

24208.  

(a) A member retired for service under this part may
terminate the retirement allowance payable under this part and
applicable to his or her credited service upon written request to
the system effective upon a date designated by the member, subject
to the following conditions:

(1) The request for termination of the retirement allowance is
filed on a form provided by the system, and the form is executed
no earlier than six months before the effective date of the
termination.

(2) The effective date of the termination of the retirement
allowance is no earlier than the first day of the month in which the
request for termination is received in the system’s headquarters
office begin delete , as established pursuant to Section 22375 end delete begin insert or no earlier than
one day after the benefit effective date of the most recent
retirement, whichever is later end insert .

(b) A member who files a request for termination of the
retirement allowance may cancel the termination upon written
request to the system, provided that the cancellation request is
received in the system’s headquarters office, as established pursuant
to Section 22375, no later than the last day of the month in which
the termination is effective.

(c) A member whose retirement allowance is terminated
pursuant to this section may apply for retirement pursuant to
Section 24209 begin insert or Section 24209.3 end insert , in accordance with Section
24204.

(d) A member whose retirement allowance is terminated
pursuant to this section may not file a preretirement election of an
option pursuant to Section 24307 within one year of reinstatement
that elects either a different option or a different beneficiary or set
of beneficiaries, or both, than were in effect at the time the
retirement allowance was terminated.

(e) A member whose retirement allowance is terminated
pursuant to this section and retires pursuant to Section 24209 begin insert end insert begin insert with
a benefit effective date end insert within one year of reinstatement shall elect
the same option and beneficiary or beneficiaries that were in effect
at the time the retirement allowance was terminated.

SEC. 28.  

Section 24209 of the Education Code is amended to
read:

24209.  

(a) Upon retirement for service following reinstatement,
the member shall receive a service retirement allowance equal to
the sum of both of the following:

(1) An amount equal to the monthly allowance the member was
begin delete receiving end delete begin insert eligible to receive end insert immediately preceding reinstatement,
exclusive of any amounts payable pursuant to Section 22714,
begin delete 22714.5, end delete or 22715, increased by the improvement factor that would
have been applied to the allowance if the member had not
reinstated.

(2) An amount calculated pursuant to Section 24202, 24202.5,
24203, 24203.5, or 24206 on service credited subsequent to the
most recent reinstatement, the member’s age at retirement, and
final compensation.

(b) If the total amount of credited service, other than that accrued
pursuant to Sections 22714, begin delete 22714.5, end delete 22715, 22717, 22717.5, and
22826, is equal to or greater than 30 years, the amounts identified
in paragraphs (1), for members who initially retired on or after
January 1, 1999, and (2) of subdivision (a) shall be calculated
pursuant to Section 24203.5.

(c) If the total amount of credited service, other than that accrued
pursuant to Sections 22714, begin delete 22714.5, end delete 22715, 22717, 22717.5, and
22826, is equal to or greater than 30 years, upon retirement for
service following reinstatement, a member who retired pursuant
to Section 24213, and received the terminated disability allowance
for the prior retirement, shall receive a service retirement allowance
equal to the sum of the following:

(1) An amount based on the service credit accrued prior to the
effective date of the disability allowance, the member’s age at the
prior retirement increased by the factor provided in Section
24203.5, and projected final compensation.

(2) An amount calculated pursuant to Section 24202, 24202.5,
24203.5, or 24206 on service credited subsequent to the
reinstatement, the member’s age at retirement, and final
compensation.

(d) 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.

SEC. 29.  

Section 24209.3 of the Education Code is amended
to read:

24209.3.  

(a) Notwithstanding subdivision (a) of Section 24209
begin delete and subdivision (d) of Section 24204 end delete , and exclusive of any amounts
payable during the prior retirement for service pursuant to Section
22714, begin delete 22714.5, end delete or 22715:

(1) A member who retired, other than pursuant to Section 24210,
24211, 24212, or 24213, and who reinstates and performs creditable
service, as defined in Section 22119.5, after the most recent
reinstatement, in an amount equal to two or more years of credited
service, shall, upon retirement for service on or after the effective
date of this section, receive a service retirement allowance equal
to the sum of the following:

(A) An amount calculated pursuant to this chapter based on
credited service performed prior to the most recent reinstatement,
using the member’s age at the subsequent service retirement, from
which age shall be deducted the total time during which the
member was retired for service, and final compensation.

(B) An amount calculated pursuant to this chapter based on
credited service performed subsequent to the most recent
reinstatement, using the member’s age at the subsequent service
retirement, and final compensation.

(2) A member who retired pursuant to Section 24210 and who
reinstates and performs creditable service, as defined in Section
22119.5, after the most recent reinstatement, in an amount equal
to two or more years of credited service, shall, upon retirement for
service on or after the effective date of this section, receive a
service retirement allowance equal to the sum of the following:

(A) An amount calculated pursuant to this chapter based on
service credit accrued prior to the effective date of the disability
retirement, using the member’s age at the subsequent service
retirement, from which age shall be deducted the total time during
which the member was retired for service, and indexed final
compensation to the effective date of the initial service retirement.

(B) An amount calculated pursuant to this chapter based on the
service credit accrued after termination of the disability retirement,
using the member’s age at the subsequent service retirement, from
which age shall be deducted the total time during which the
member was retired for service, and final compensation.

(C) An amount calculated pursuant to this chapter based on
credited service performed subsequent to the most recent
reinstatement, using the member’s age at the subsequent service
retirement, and final compensation.

(3) A member who retired pursuant to Section 24211 and who
reinstates and performs creditable service, as defined in Section
22119.5, after the most recent reinstatement, in an amount equal
to two or more years of credited service, shall, upon retirement for
service on or after the effective date of this section, receive a
service retirement allowance equal to the sum of the following:

(A) The greater of (i) the disability allowance the member was
receiving immediately prior to termination of that allowance,
excluding the children’s portion, or (ii) an amount calculated
pursuant to this chapter based on service credit accrued prior to
the effective date of the disability allowance, using the member’s
age at the subsequent service retirement, from which age shall be
deducted the total time during which the member was retired for
service, and final compensation using compensation earnable or
projected final compensation or a combination of both.

(B) An amount equal to either of the following:

(i) For a member who was receiving a benefit pursuant to
subdivision (a) of Section 24211, the member’s credited service
at the time of the retirement pursuant to Section 24211, excluding
service credited pursuant to Section 22717 or 22717.5 or Chapter
14 (commencing with Section 22800) or Chapter 14.2
(commencing with Section 22820) or Chapter 19 (commencing
with Section 23200).

(ii) For a member who was receiving a benefit pursuant to
subdivision (b) of Section 24211, the member’s projected service,
excluding service credited pursuant to Section 22717 or 22717.5
or Chapter 14 (commencing with Section 22800) or Chapter 14.2
(commencing with Section 22820) or Chapter 19 (commencing
with Section 23200).

(C) An amount calculated pursuant to this chapter based on
credited service performed subsequent to the most recent
reinstatement, using the member’s age at the subsequent service
retirement, and final compensation using compensation earnable
or projected final compensation or a combination of both.

(D) An amount based on any service credited pursuant to
Chapter 14 (commencing with Section 22800) or Chapter 14.2
(commencing with Section 22820) or Chapter 19 (commencing
with Section 23200) or, for credited service performed during the
most recent reinstatement, Section 22714, begin delete 22714.5, end delete 22715, 22717,
or 22717.5, using the member’s age at the subsequent service
retirement, from which age shall be deducted the total time during
which the member was retired for service, and final compensation
using compensation earnable, or projected final compensation, or
a combination of both.

(4) A member who retired pursuant to Section 24212 or 24213
and who reinstates and performs creditable service, as defined in
Section 22119.5, after the most recent reinstatement, in an amount
equal to two or more years of credited service, shall, upon
retirement for service on or after the effective date of this section,
receive a service retirement allowance equal to the sum of the
following:

(A) An amount calculated pursuant to this chapter based on the
member’s projected service credit, excluding service credited
pursuant to Section 22717, 22717.5, or Chapter 14 (commencing
with Section 22800) or Chapter 14.2 (commencing with Section
22820) or Chapter 19 (commencing with Section 23200), using
the member’s age at the subsequent service retirement, from which
age shall be deducted the total time during which the member was
retired for service, and final compensation using compensation
earnable or projected final compensation or a combination of both.

(B) An amount calculated pursuant to this chapter based on
credited service performed subsequent to the most recent
reinstatement, using the member’s age at the subsequent service
retirement, and final compensation, using compensation earnable
or projected final compensation or a combination of both.

(C) An amount based on any service credited pursuant to
Chapter 14 (commencing with Section 22800) or Chapter 14.2
(commencing with Section 22820) or Chapter 19 (commencing
with Section 23200) or, for credited service performed during the
most recent reinstatement, Section 22714, begin delete 22714.5, end delete 22715, 22717,
or 22717.5, using the member’s age at the subsequent service
retirement, from which age shall be deducted the total time during
which the member was retired for service, and final compensation
using compensation earnable, or projected final compensation, or
a combination of both.

(b) If the total amount of credited service, other than that accrued
pursuant to Sections 22714, begin delete 22714.5, end delete 22715, 22717, 22717.5, and
22826, is equal to or greater than the number of years required to
be eligible for an increased allowance pursuant to this chapter or
Section 22134.5, the amounts identified in this section shall be
calculated pursuant to the section authorizing the increased benefit.

(c) For members receiving an allowance pursuant to Section
24410.5 or 24410.6, the amount payable pursuant to this section
shall not be less than the amount payable to the member as of the
effective date of reinstatement.

(d) The amount payable pursuant to this section shall not be
less than the amount that would be payable to the member pursuant
to Section 24209.

(e) For purposes of determining an allowance increase pursuant
to Sections 24415 and 24417, the calendar year of retirement shall
be the year of the subsequent retirement if the final compensation
used to calculate the allowance pursuant to this section is higher
than the final compensation used to calculate the allowance for
the prior retirement.

(f) The allowance paid pursuant to this section to a member
receiving a lump-sum payment pursuant to Section 24221 shall be
actuarially reduced to reflect that lump-sum payment.

(g) 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.

SEC. 30.  

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,
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 begin delete and end delete begin insert or end insert projected final compensation begin insert ,
or a combination of both end insert , 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, 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 begin delete receiving end delete begin insert eligible
to receive end insert 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, begin delete 22714.5, end delete 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, begin delete 22714.5, end delete
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.

SEC. 31.  

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), 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, begin delete 22714.5, end delete 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.

SEC. 32.  

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 22717 or 22717.5, or Chapter 14 (commencing
with Section 22800) or Chapter 14.2 (commencing with Section
22820). 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, begin delete 22714.5, end delete 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.

(b) Upon retirement, the member may elect to modify the service
retirement allowance payable in accordance with any option
provided under this part.

SEC. 33.  

Section 24214.5 of the Education Code is amended
to read:

24214.5.  

(a) Notwithstanding subdivision (f) of Section 24214,
the postretirement compensation limitation shall be zero dollars
($0) in either of the following circumstances:

(1) During the first 180 begin insert calendar end insert days after the most recent
retirement of a member retired for service under this part.

(2) During the first begin delete six consecutive months end delete begin insert 180 calendar days end insert
after the most recent retirement if the member received additional
service credit pursuant to Section 22714 or 22715 or received from
any public employer any financial inducement to retire, as defined
by subdivision (j) of Section 24214.

(b) If the 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 begin insert calendar end insert 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 member received
additional service credit pursuant to Section 22714 or 22715 or
received from any public employer any financial inducement to
retire.

(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) If a member will be receiving compensation for performance
of retired member activities before 180 begin insert calendar end insert days after the
most recent retirement, the Superintendent, the county
superintendent of schools, or the chief executive officer of a
community college shall submit all documentation required by the
system that certifies that the member did not receive from any
public employer any financial inducement to retire.

(g) The documentation required by this section shall be received
by the system prior to the retired member’s performance of retired
member activities.

(h) 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), or seeking to employ a retired member
pursuant to subdivision (f), and the retired member whether the
compensation paid to the member will be subject to the limitation
specified in subdivision (a).

(i) 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 begin insert calendar end insert days, in accordance
with subdivision (a), after a member retired for service under this
part.

SEC. 34.  

Section 24300.2 of the Education Code is amended
to read:

24300.2.  

(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 begin delete as described in
Section 22375 end delete 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 begin delete as described in Section 22375 end delete 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 begin delete as described in Section 22375 end delete 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. 35.  

Section 24301 of the Education Code is amended to
read:

24301.  

(a) A member begin delete who has filed an application under this
part end delete begin insert upon application end insert for a disability retirement pursuant to Chapter
26 (commencing with Section 24100) begin insert , end insert may elect, as provided in
Section 24300 or 24300.1 to receive an actuarially modified
disability retirement allowance. begin delete After receipt of a disability
retirement application from a member, the board shall mail an
acknowledgment notice to the member. A 30-day period shall
commence with the mailing of the acknowledgment, during which
time the member may change the option election made on the
disability retirement application. end delete

(b)  begin insert For purposes of this section, the member shall designate an
option beneficiary on a properly executed form prescribed by the
system, which shall be filed with the system on or before the last
day of the month of the member’s disability retirement. end insert 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, begin insert 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. end insert begin delete the end delete begin insert The end insert
elected option may not be revoked or changed after the later of the
effective date of the disability retirement allowance or 30 days
after the mailing of the acknowledgment notice pursuant to this
section.

(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. 36.  

Section 24306.5 of the Education Code is amended
to read:

24306.5.  

(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.

(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 begin delete , as established pursuant to Section
22375, end delete 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. 37.  

Section 24306.7 of the Education Code is amended
to read:

24306.7.  

(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.

(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 begin delete , as established pursuant to Section
22375, end delete 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. 38.  

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 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, the signature is dated,
and the date of the signature is within 30 days of the member’s
signature.

(2) The date the form is received at the system’s headquarters
office begin delete , as established pursuant to Section 22375, end delete is within 30 days
of 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.

(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 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.

(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. 39.  

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 begin delete , as established pursuant
to Section 22375, end delete within 30 days of 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 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. 40.  

Section 24311 of the Education Code is amended to
read:

24311.  

(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 begin delete , as established pursuant
to Section 22375, end delete at least 30 days prior to the death of the option
beneficiary.

SEC. 41.  

Section 24312 of the Education Code is amended to
read:

24312.  

(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 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 begin delete , as established
pursuant to Section 22375, end delete at least 30 days prior to the death of
the option beneficiary.

(c) This section shall become operative on January 1, 2000.

SEC. 42.  

Section 24312.1 of the Education Code is amended
to read:

24312.1.  

(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 begin delete , as described in Section 22375, end delete
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. 43.  

Section 24613 of the Education Code is amended to
read:

24613.  

(a) Payment pursuant to the board’s determination in
good faith of the existence, identity, or other facts relating to
entitlement of persons under this part constitutes a complete
discharge and release of the board, system, and plan from liability
for that payment.

(b) Notwithstanding Sections 751 and 1100 of the Family Code
relating to community property interests, whenever payment or
refund is made by this system to a member, former member, or
beneficiary of a member pursuant to this part, the payment shall
fully discharge the board, system, and plan from all adverse claims
thereto unless, before payment is made, a written notice of adverse
claim is received at the system’s headquarters office begin delete , as established
pursuant to Section 22375 end delete .

SEC. 44.  

Section 25011.5 of the Education Code is amended
to read:

25011.5.  

(a) A member who retired and elected an annuity
pursuant to Section 25011 may elect to change annuities, subject
to all of the following:

(1) A member who elected a single life annuity with or without
a cash refund feature or elects a period certain annuity may not
change his or her annuity.

(2) A member who elected an annuity under paragraph (3) or
(4) of subdivision (a) of Section 25011 may elect an annuity under
paragraph (3) of subdivision (a) of Section 25011.1.

(3) The election by the member under this section is made on
or after January 1, 2007, and prior to July 1, 2007.

(4) The member designates the same beneficiary that was
designated under the prior annuity election by the member, if the
annuity and annuity designation was effective on December 31,
2006.

(5) The member and the annuity 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 annuity beneficiary are
not afflicted with a known terminal illness.

(6) The annuity beneficiary has not predeceased the member as
of the effective date of the change in the annuity by the member.

(b) The change in the annuity 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 begin delete as described in
Section 22375 end delete 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 annuity elected by the member.

(d) If the member and the annuity beneficiary are alive and not
afflicted with a known terminal illness, a member may cancel the
election to change annuities and elect to receive the benefit
according to the preexisting annuity election. After cancellation,
the member may elect to make a one-time change from the
preexisting annuity to any other annuity 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 begin delete as described
in Section 22375 end delete 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 annuity
beneficiary are alive and not afflicted with a known terminal
illness, the system shall allow a member to cancel the election to
change annuities and elect to receive the benefit according to the
preexisting annuity election. After cancellation, the member may
elect to make a one-time change from the preexisting annuity to
any other annuity 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 begin delete as described in Section 22375 end delete 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.

(f) If the member elects to change his or her annuity as described
in subdivision (a), the annuity of the member shall be modified in
a manner determined by the board to prevent any additional liability
to the plan.

(g) References to a “member” in paragraph (1) of subdivision
(a) shall apply to the nonmember spouse.

(h) The member shall not change annuities in derogation of a
spouse’s or former spouse’s community property rights as specified
in a court order.

SEC. 45.  

Section 25018.2 of the Education Code is amended
to read:

25018.2.  

(a) A member who is disabled and elected an annuity
pursuant to Section 25018 may elect to change annuities, subject
to all of the following:

(1) A member who elected a single life annuity with or without
a cash refund feature or elected a period certain annuity may not
change his or her annuity.

(2) A member who elected an annuity under paragraph (3) or
(4) of subdivision (b) of Section 25018 may elect an annuity under
paragraph (3) of subdivision (a) of Section 25018.1.

(3) The election by the member under this section is made on
or after January 1, 2007, and prior to July 1, 2007.

(4) The member designates the same annuity beneficiary that
was designated under the prior annuity election by the member, if
the annuity and the annuity designation were effective on December
31, 2006.

(5) The member and the annuity 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 annuity beneficiary are
not afflicted with a known terminal illness.

(6) The annuity beneficiary has not predeceased the member as
of the effective date of the change in the annuity by the member.

(b) The change in the annuity 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 begin delete as described in
Section 22375 end delete 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 annuity elected by the member.

(d) If the member and the annuity beneficiary are alive and not
afflicted with a known terminal illness, a member may cancel the
election to change annuities and elect to receive the benefit
according to the preexisting annuity election. After cancellation,
the member may elect to make a one-time change from the
preexisting annuity to any other annuity 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 begin delete as described
in Section 22375 end delete 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 annuity
beneficiary are alive and not afflicted with a known terminal
illness, the system shall allow a member to cancel the election to
change annuities and elect to receive the benefit according to the
preexisting annuity election. After cancellation, the member may
elect to make a one-time change from the preexisting annuity to
any other annuity 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 begin delete as described in Section 22375 end delete 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.

(f) If the member elects to change his or her annuity as described
in subdivision (a), (d), or (e), the annuity 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 annuities in derogation of a
spouse’s or former spouse’s community property rights as specified
in a court order.

SEC. 46.  

Section 25022 of the Education Code is amended to
read:

25022.  

(a) If the death of a member occurs while the member
is receiving an annuity under the Defined Benefit Supplement
Program, the final benefit shall be payable in accordance with the
terms of the annuity elected by the member.

(b) If the member was receiving a single life annuity without a
cash refund feature, a final benefit is not payable other than the
accrued annuity for the month in which the member’s death
occurred, which shall be paid in a lump sum to the beneficiary
designated by the member pursuant to Section 23300 begin insert or 23301 end insert .

(c) If the member was receiving a single life annuity with a cash
refund feature, the final benefit shall be payable in a lump sum to
the beneficiary designated by the member pursuant to Section
23300 begin insert or 23301 end insert .

(d) If the member was receiving a joint and survivor annuity,
the annuity shall continue to be paid to the surviving designated
annuity beneficiary. If the designated annuity beneficiary
predeceases the member, a final benefit is not payable.

(e) If the member was receiving a period certain annuity, the
remaining balance of payments shall be paid to the beneficiary
designated by the member begin delete pursuant to Section 23300 end delete .

begin insert

(1) If the beneficiary is designated pursuant to Section 23300,
the remaining period certain annuity payments shall be made over
the amount of time remaining in the period originally elected by
the deceased member and shall be made in payments equal to the
amount of the annuity payments previously received by the
deceased member.

end insert begin insert

(2) If the beneficiary is designated pursuant to Section 23301,
the remaining balance of period certain annuity payments shall
be made in a lump-sum payment equal to the present value of the
balance of payments due over the time remaining in the period
originally elected by the deceased member.

end insert

(f) A member may designate a beneficiary who would, upon
the death of the member, be entitled to the member’s accrued
annuity allowance.

SEC. 47.  

Section 25940 of the Education Code is amended to
read:

25940.  

(a) Effective July 1, 2001, the system shall pay to the
federal Centers for Medicare and Medicaid Services or a successor
agency the premiums associated with Medicare Part A for retired
or disabled members described in this section.

(b) This section shall apply only to a retired member of the
Defined Benefit Program who meets all of the following
requirements:

(1) The member retired prior to January 1, 2001, or began
receiving a disability allowance prior to January 1, 2001, and has
been continually disabled since January 1, 2001.

(2) The member is not eligible for Medicare Part A without
payment of a premium.

(3) The member is at least 65 years of age.

(4) The member enrolled in Medicare Parts A and B.

(c) The board may extend eligibility for the payments described
in this section to members of the Defined Benefit Program who
meet the requirements of subdivision (d) and who retire or begin
receiving a disability allowance on or after January 1, 2001, within
a school year specified by the board, if the board finds that the
cost of the payments for members who retire or begin receiving a
disability allowance during the specified school year may be paid
within the anticipated resources available in the fund, as determined
by the actuarial valuation of the program established by this
chapter. Any extension of eligibility to members who retire or
begin receiving a disability allowance on or after January 1, 2001,
shall be provided equally to any member who meets the
requirements of subdivision (d) and retires or begins receiving a
disability allowance during the school year specified by the board.

(d) (1) Eligibility for the payments described in this section
pursuant to subdivision (c) shall be limited to members of the
Defined Benefit Program who do either of the following:

(A) Retires from an employer that does either of the following:

(i) Completed a division pursuant to Section 22156 of the
Government Code prior to January 1, 2001.

(ii) Completed or is conducting a division pursuant to Section
22156 of the Government Code on or after January 1, 2001, and,
if the member was less than 58 years of age at the time of the
division, the member elected to be covered by Medicare.

(B) Began receiving a disability allowance and continuously
receives a disability allowance until 65 years of age or older and
the member’s last employer does any of the following:

(i) Completed a division pursuant to Section 22156 of the
Government Code prior to January 1, 2001.

(ii) Completed or is conducting a division pursuant to Section
22156 of the Government Code on or after January 1, 2001, and,
if the member was still actively employed and less than 58 years
of age at the time of the division, the member elected to be covered
by Medicare.

(iii) Completed or is conducting a division pursuant to Section
22156 of the Government Code on or after January 1, 2001, and,
if the member is no longer actively employed, the division was
completed prior to the time the member reached normal retirement
age.

(2) For purposes of paragraph (1), a division occurs during the
10-day period during which the member has the opportunity to
elect to be covered by Medicare pursuant to Section 22156 of the
Government Code.

(3) This subdivision does not apply to a member who retires
from a district, or is receiving a disability allowance and the
member was last employed in a district, that either as of January
1, 2001, had no members who were less than 58 years of age and
who were hired prior to April 1, 1986, or was created pursuant to
a formation or a reorganization on or after April 1, 1986, and prior
to January 1, 2001.

(e) The amount paid to the federal Centers for Medicare and
Medicaid Services or a successor agency pursuant to this section
shall include any surcharges applicable to enrollment in Medicare
Part A or Part B by members who retired prior to January 1, 2001,
and who enrolled in Medicare Parts A and B after the age of 65
years and prior to July 1, 2001. If the system pays the Part A
premium and Part B surcharges on behalf of a member and that
member later becomes eligible for Part A coverage without
payment of a premium, the system shall continue to pay any
applicable Part B surcharges on behalf of that member. The board
may require a member on whose behalf a surcharge would be paid
pursuant to this subdivision to authorize the system to deduct the
Part B premium from the member’s retirement allowance as a
condition of having the system pay the Part A premium pursuant
to this section.

begin insert

(f) For the purposes of this section, if a retirement date is used
to determine eligibility pursuant to subdivisions (b) and (c), the
system shall use the member’s most recent retirement date for
eligibility purposes.

end insert

SEC. 48.  

Section 26911 of the Education Code is amended to
read:

26911.  

If a participant who is receiving a disability annuity
under this part becomes reemployed begin delete prior to 60 years of age end delete to
perform creditable service subject to coverage by the Cash Balance
Benefit Program or the Defined Benefit Program, the disability
annuity shall be terminated. The participant’s employee account
and employer account shall be credited with the actuarial equivalent
of the participant’s annuity as of the date of reemployment and
the Annuitant Reserve shall be reduced by the amount credited to
those accounts.

SEC. 49.  

Any section of any other act enacted by the
Legislature during the 2013 calendar year that takes effect on or
before January 1, 2014, 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 2013
calendar year and takes effect on or before January 1, 2014,
amends, amends and renumbers, adds, repeals and adds, or repeals
any section contained in that article, chapter, part, title, or division.