BILL NUMBER: AB 1379 INTRODUCED
BILL TEXT
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 (c) (e) of
Section 24300.1, and subdivision (d) of
Sections Section 25011.1, subdivision (c) of
Section 25018.1, and subdivision (d)
of Section 26807.5, and subdivision (c) of Section
26906.5, 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.
(B) Section 22714.5.
(C)
(B) Section 22715.
(D)
(C) Section 22717, except as provided in subdivision
(b) of Section 22121.
(E)
(D) Section 22826.
(2) A nonmember spouse, if the member had 25 or more years of
credited service, as calculated in paragraph (1), on the date the
parties separated, as established in the judgment or court order
pursuant to Section 22652.
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 (2) (5) of
subdivision (c) of Section 22664. The employer, within 30 days of
receiving an invoice from the system, shall reimburse the retirement
fund pursuant to subdivision (f). Interest shall be charged at the
regular interest rate for payments not received within the prescribed
timeframe. Payments not received within 30 days of invoicing may be
collected pursuant to Section 23007.
SEC. 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 a limited-term
an assignment of 24 months or less .
(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 , as established pursuant
to Section 22375, 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 or
employment restriction set forth in Sections
Section 22714, 24114, 24116, 24214, 24214.5,
and or 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 , as established pursuant to
Section 22375, 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 , as established
pursuant to Section 22375, 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 2
1/2 two and one-half years of credited
service in his or her separate account.
(3) The nonmember spouse has attained 55 years of age or more.
(b) A service retirement allowance of a nonmember spouse under
this part shall become effective upon a date designated by the
nonmember spouse, provided:
(1) The requirements of subdivision (a) are satisfied.
(2) The nonmember spouse has filed an application for service
retirement on a properly executed form provided by the system, that
is executed no earlier than six months before the effective date of
the retirement allowance.
(3) The effective date is no earlier than the first day of the
month that the application is received at the system's headquarters
office as described in Section 22375, and the
effective date is after the date the judgment or court order pursuant
to Section 22652 was entered.
(c) (1) Upon service retirement at normal retirement age under
this part, the nonmember spouse shall receive a retirement allowance
that shall consist of an annual allowance payable in monthly
installments equal to 2 percent of final compensation for each year
of credited service.
(2) If the nonmember spouse's retirement is effective at less than
normal retirement age and between early retirement age under this
part and normal retirement age, the retirement allowance shall be
reduced by one-half of 1 percent for each full month, or fraction of
a month, that will elapse until the nonmember spouse would have
reached normal retirement age.
(3) If the nonmember spouse's service retirement is effective at
an age greater than normal retirement age and is effective on or
after January 1, 1999, the percentage of final compensation for each
year of credited service shall be determined pursuant to the
following table:
Age at Retirement Percentage
60 1/4 ..................... 2.033
60 1/2 ..................... 2.067
60 3/4 ..................... 2.10
61 ......................... 2.133
61 1/4 ..................... 2.167
61 1/2 ..................... 2.20
61 3/4 ..................... 2.233
62 ......................... 2.267
62 1/4 ..................... 2.30
62 1/2 ..................... 2.333
62 3/4 ..................... 2.367
63 and over ................ 2.40
(4) In computing the retirement allowance of the nonmember spouse,
the age of the nonmember spouse on the last day of the month that
the retirement allowance begins to accrue shall be used.
(5) Final compensation, for purposes of calculating the service
retirement allowance of the nonmember spouse under this subdivision,
shall be calculated according to the definition of final compensation
in Section 22134, 22134.5, 22135, or 22136, whichever is applicable,
and shall be based on the member's compensation earnable up to the
date the parties separated, as established in the judgment or court
order pursuant to Section 22652. The nonmember spouse shall not be
entitled to use any other calculation of final compensation.
(d) Upon service retirement under this part, the nonmember spouse
shall receive a retirement benefit based on an amount equal to the
balance of credits in the nonmember spouse's Defined Benefit
Supplement account on the date the retirement benefit becomes
payable.
(1) A retirement benefit shall be a lump-sum payment, or an
annuity payable in monthly installments, or a combination of both a
lump-sum payment and an annuity, as elected by the nonmember spouse
on the application for a retirement benefit. A retirement benefit
paid as an annuity under this chapter shall be subject to Sections
22660, 25011, and 25011.1.
(2) Upon distribution of the entire retirement benefit in a
lump-sum payment, no other benefit shall be payable to the nonmember
spouse or the nonmember spouse's beneficiary under the Defined
Benefit Supplement Program.
(e) If the member is or was receiving a disability allowance under
this part with an effective date before or on the date the parties
separated as established in the judgment or court order pursuant to
Section 22652, or at any time applies for and receives a disability
allowance with an effective date that is before or coincides with the
date the parties separated as established in the judgment or court
order pursuant to Section 22652, the nonmember spouse shall not be
eligible to retire until after the disability allowance of the member
terminates. If the member who is or was receiving a disability
allowance returns to employment to perform creditable service subject
to coverage under the Defined Benefit Program or has his or her
allowance terminated under Section 24015, the nonmember spouse may
not be paid a retirement allowance until at least six months after
termination of the disability allowance and the return of the member
to employment to perform creditable service subject to coverage under
the Defined Benefit Program, or the termination of the disability
allowance and the employment or self-employment of the member in any
capacity, notwithstanding Section 22132. If at the end of the
six-month period, the member has not had a recurrence of the original
disability or has not had his or her earnings fall below the amounts
described in Section 24015, the nonmember spouse may be paid a
retirement allowance if all other eligibility requirements are met.
(1) The retirement allowance of the nonmember spouse under this
subdivision shall be calculated as follows: the disability allowance
the member was receiving, exclusive of the portion for dependent
children, shall be divided between the share of the member and the
share of the nonmember spouse. The share of the nonmember spouse
shall be the amount obtained by multiplying the disability allowance,
exclusive of the portion for dependent children, by the years of
service credited to the separate account of the nonmember spouse,
including service projected to the date of separation, and dividing
by the projected service of the member. The nonmember spouse's
retirement allowance shall be the lesser of the share of the
nonmember spouse under this subdivision or the retirement allowance
under subdivision (c).
(2) The share of the member shall be the total disability
allowance reduced by the share of the nonmember spouse. The share of
the member shall be considered the disability allowance of the member
for purposes of Section 24213.
(f) The nonmember spouse who receives a retirement allowance is
not a retired member under this part. However, the allowance of the
nonmember spouse shall be increased by application of the improvement
factor and shall be eligible for the application of supplemental
increases and other benefit maintenance provisions under this part,
including, but not limited to, Sections 24412 and 24415 based on the
same criteria used for the application of these benefit maintenance
increases to the service retirement allowances of members.
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
or the date the application for retirement is received by the
system's headquarters office whichever is later , 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
or the date the application for retirement is received by the
system's headquarters office whichever is later , 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 , as described in Section
22375, 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 , as described
in Section 22375, 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 , as established pursuant
to Section 22375 . 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 , as established pursuant to
Section 22375, within 30 days from the mailing date, the
refund shall be canceled and the person shall be restored as a member
of the Defined Benefit Program with all the rights and privileges
under this part restored.
(d) For refunds involving direct trustee-to-trustee transfers, if
the member returns the warrant drawn to the trustee of the qualified
plan or the trustee returns the amount of the qualified refund and,
if applicable, any additional amounts necessary to equal, but in no
event to exceed, the total gross distribution amount to the system's
headquarters office, as established pursuant to Section 22375, within
30 days from the mailing date, the refund shall be canceled and the
person shall be restored as a member of the Defined Benefit Program
with all the rights and privileges under this part restored.
SEC. 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 , as established pursuant
to Section 22375, 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 , as
established pursuant to Section 22375, 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 and has performed creditable
service within the four months previous to application, or
while the member is 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 , as established pursuant to Section
22375, 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 and has performed creditable
service within the four months previous to application, or
while the member is 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
retirement 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 , as established pursuant to Section
22375, 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, as established pursuant
to Section 22375 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
.
(C) The effective date is later than the last day of creditable
service for which compensation is payable to the member.
(D) The effective date is no earlier than one year
following day after the date on which a
retirement allowance was terminated pursuant to Section 24208
or subdivision (a) of Section 24117 , unless
the application for disability benefits is denied or canceled and the
member has indicated an earlier service retirement date on the
application to use if denied or canceled. If the application for
disability benefits is denied or canceled, the service retirement
date is no earlier than one day after the date on which a retirement
allowance was terminated pursuant to Section 24208, provided
that the retirement allowance is terminated on or after January
1, 2014 .
(E) The effective date is no earlier than one year following the
date on which a retirement allowance was terminated pursuant to
subdivision (a) of Section 24117.
(3) The effective date of the service retirement allowance can be
no earlier than the date upon and continuously after which the member
is determined to the satisfaction of the board to have been mentally
incompetent.
(4) A member who applies for service retirement under this section
is not eligible to receive a lump-sum payment and an actuarially
reduced monthly allowance pursuant to Section 24221.
(5) A member who applies for service retirement under this section
is not eligible to receive an allowance calculated pursuant to
Section 24205.
(6) (A) Except as described in subparagraph (B), a member who
applies for service retirement under this section shall not receive
service credit for each day of accumulated and unused leave of
absence for illness or injury or for education pursuant to Section
22717 or 22717.5.
(B) If the application for disability is denied or canceled
, the member's service retirement allowance shall be adjusted
to the effective date of the service retirement to include service
credited pursuant to Section 22717 or 22717.5.
(7) If the application for disability is denied or canceled
, a member who applies for a service retirement allowance under
this section is subject to all of the following:
(A) Unless otherwise provided in this part, a member who, on his
or her application for service retirement, elects an option pursuant
to Section 24300.1 or 24307 may not change or revoke that option.
(B) If the member receives a modified service retirement allowance
based on the election of an option pursuant to Section 24300.1 or
24307, that modified service retirement allowance shall continue in
effect and unchanged.
(C) If the member did not elect an option pursuant to Section
24300.1 or 24307 and receives an unmodified service retirement
allowance, that unmodified service retirement allowance shall
continue in effect and unchanged.
(b) A member who applies for service retirement under this section
may change or cancel his or her service retirement application
pursuant to Section 24204, or may terminate his or her service
retirement allowance pursuant to Section 24208.
(c) A member may
not cancel his or her application for disability prior to a
determination of that application unless he or she submits a written
request to the system's headquarters office , as established
pursuant to Section 22375 . 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) Paragraph Subparagraph (C) of
paragraph (1) of subdivision (a) of Section 24001 and paragraph
(3) of subdivision (a) of Sections 24001 and
Section 24101 shall not apply to a member who cancels an
application for service retirement pursuant to Section 24204 or who
terminates a service retirement allowance pursuant to Section 24208,
if all of the following apply:
(A) The member earned at least one year of credited service
subsequent to the most recent terminated service retirement
allowance.
(B) The member's application for disability under this section is
pending determination by the board.
(2) If the member's application for disability under this section
is denied or canceled , subparagraph (C) of paragraph
(1) of subdivision (a) of Section 24001 and paragraph (3) of
subdivision (a) of Sections 24001 and Section
24101 shall apply if the member submits a new application for
disability.
(e) (1) If the board approves the application for disability, and
notwithstanding subdivision (f) of Section 24204, the board shall
cancel the member's application for service retirement and shall
authorize payment of a disability allowance or disability retirement.
(2) If the board approves the application for disability and the
member has received service retirement allowance payments under this
part, the effective date for the disability allowance or disability
retirement shall be the same as the effective date of the service
retirement allowance.
(f) If a member who applies for service retirement under this
section dies prior to a determination by the board on the application
for disability, the member shall be considered retired for service
at the time of death, and any subsequent benefits shall be paid
accordingly.
(g) If a member who applies for service retirement under this
section dies after the board has approved the member's application
for disability, the member shall be considered a disabled member, or
retired for disability, at the time of death, and any subsequent
benefits shall be paid accordingly, even if the member died prior to
receiving notification of the approval of his or her application for
disability.
(h) If the member changes or cancels his or her service retirement
application or terminates his or her service retirement allowance as
described in subdivision (b), the system shall make appropriate
adjustments to the applicable service retirement allowance,
disability allowance, or disability retirement allowance, retroactive
to the effective date of the disability allowance or disability
retirement allowance. Subdivision (a) of Section 24617 shall not
apply.
(i) The system may recover a service retirement allowance
overpayment made to a member by deducting that overpayment from any
subsequent disability benefit payable to the member.
(j) Nothing in this section shall be construed to allow a member
or beneficiary to receive more than one type of retirement or
disability allowance for the same period of time.
SEC. 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.
(2) Section 22714.5.
(3)
(2) Section 22715.
(4)
(3) Section 22717, except as provided in subdivision
(b) of Section 22121.
(5)
(4) Section 22717.5.
(c) For purposes of establishing eligibility for the increased
allowance pursuant to this section only, credited service shall
include credited service that a court has ordered be awarded to a
nonmember spouse pursuant to Section 22652. A nonmember spouse shall
also be eligible for the increased allowance pursuant to this section
if the member had 30 or more years of credited service on the date
the parties separated, as established in the judgment or court order
pursuant to Section 22652.
(d) Nonqualified service credit for which contributions pursuant
to Section 22826 were made in a lump sum on or after January 1, 2000,
or for which the first installment was made on or after January 1,
2000, may not be included in determining the eligibility for an
increased allowance pursuant to this section.
SEC. 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.
(B) Section 22714.5.
(C)
(B) Section 22715.
(D)
(C) Section 22717, except as provided in subdivision
(b) of Section 22121.
(E)
(D) Section 22717.5.
(F)
(E) Section 22826.
(3) The member is receiving an allowance subject to Section
24203.5.
(b) The amount of the increase in the monthly allowance shall be
based on the member's years of credited service at the time of
retirement as follows:
30 years of credited service ........ $200
31 years of credited service ........ $300
32 or more years of credited service $400
.....................................
(c) This section also applies to a nonmember spouse, if all of the
following conditions are satisfied:
(1) The member is eligible for the allowance increase pursuant to
subdivisions (a) and (b) upon his or her retirement for service.
(2) On the date the parties separated, as established in the
judgment or court order pursuant to Section 22652, the member had at
least 30 years of credited service, excluding service credited
pursuant to the following:
(A) Section 22714.
(B) Section 22714.5.
(C)
(B) Section 22715.
(D)
(C) Section 22717, except as provided in subdivision
(b) of Section 22121.
(E)
(D) Section 22717.5.
(F)
(E) Section 22826.
(3) The service credit of the member was divided into separate
accounts in the name of the member and the nonmember spouse by a
court pursuant to Section 22652. The amount identified in the
schedule in subdivision (b) and payable pursuant to this section,
that is based on the service credited during the marriage, shall be
divided and paid to the member and the nonmember spouse
proportionately according to the respective percentages of the member'
s service credit that were allocated to the member and the nonmember
spouse in the court's order.
(d) The allowance increase provided under this section is not
subject to Sections 24415 and 24417, but is subject to Section 22140.
SEC. 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 one day after
the date on which the retirement allowance was terminated under
Section 24208.
(4) The effective date is no earlier than one year following the
date on which the retirement allowance was terminated under
subdivision (a) of Section 24117.
(5) The effective date is no earlier than the date upon and
continuously after which the member is determined to the satisfaction
of the board to have been mentally incompetent.
(6) The effective date is no earlier than the date upon which the
member completes payment of a service credit purchase pursuant to
Section 22801, 22820, or 22826, or payment of a redeposit of
contributions pursuant to Section 23200, except as provided in
Section 22801 or 22829.
(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.
(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 , established pursuant to Section 22375, no
later than 30 days from the date the member's initial benefit
payment for the member's most recent retirement under the Defined
Benefit Program is paid by the system. If a member cancels his
or her retirement application, the member shall return the total
gross distribution amount of all payments for the canceled retirement
benefit to the system's headquarters office no later than 45 days
from the date of the member's initial benefit payment and
shall be liable for any adverse tax consequences that may result from
these actions.
(c) The retirement date of a member retiring on and
or after January 1, 2012, shall be no earlier
than January 1, 2012.
(d) Nothing in this section shall be construed to allow a member
to receive more than one type of retirement or disability allowance
for the same period of time by virtue of his or her own membership.
SEC. 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 , as established pursuant to Section 22375
or no earlier than one day after the benefit effective date of
the most recent retirement, whichever is later .
(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
or Section 24209.3 , 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
with a benefit effective date 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
receiving eligible to receive
immediately preceding reinstatement, exclusive of any amounts payable
pursuant to Section 22714, 22714.5, 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, 22714.5,
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, 22714.5,
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
and subdivision (d) of Section 24204 , and
exclusive of any amounts payable during the prior retirement for
service pursuant to Section 22714, 22714.5, 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, 22714.5, 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, 22714.5, 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, 22714.5,
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 and
or projected final compensation , or a combination of both
, plus the greater of either of the following:
(1) A service retirement allowance calculated on service credit
accrued as of the effective date of the disability allowance, 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 receiving
eligible to receive immediately prior to
termination of that allowance, excluding children's portions.
(b) Three or more years of creditable service after termination of
the disability allowance, the member shall receive a retirement
allowance that is the greater of the following:
(1) A service retirement allowance calculated on all actual and
projected service excluding service credited pursuant to Sections
22717 and 22717.5 or Chapter 14 (commencing with Section 22800) or
Chapter 14.2 (commencing with Section 22820) or Chapter 19
(commencing with Section 23200), the age of the member on the last
day of the month in which the retirement allowance begins to accrue,
and final compensation using compensation earnable, or projected
final compensation, or a combination of both.
(2) The disability allowance the member was receiving immediately
prior to termination of that allowance, excluding children's
portions.
(c) The allowance shall be increased by an amount based on any
service credited pursuant to Sections 22714, 22714.5,
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,
22714.5, 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, 22714.5,
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, 22714.5, 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 calendar days after the most
recent retirement of a member retired for service under this part.
(2) During the first six consecutive months
180 calendar days 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 calendar days have
passed.
(3) A finding that the member is not ineligible for application of
this subdivision pursuant to subdivision (d).
(4) A finding that the termination of employment of the retired
member with the employer is not the basis for the need to acquire the
services of the member.
(c) Subdivision (b) shall not apply to a retired member whose
termination of employment with the employer is the basis for the need
to acquire the services of the member.
(d) Subdivision (b) shall not apply if the 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 calendar 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 calendar 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 as described in
Section 22375 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 as described in Section 22375
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 as described in Section
22375 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 who has filed an application under
this part upon application for a disability
retirement pursuant to Chapter 26 (commencing with Section 24100)
, may elect, as provided in Section 24300 or 24300.1 to
receive an actuarially modified disability retirement allowance.
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.
(b) For purposes of this section, the member shall designate
an option beneficiary on a properly executed form prescribed by the
system, which shall be filed with the system on or before the last
day of the month of the member's disability retirement. 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, 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. the
The 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 , as established pursuant to
Section 22375, 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 , as established
pursuant to Section 22375, 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 , as established pursuant to Section 22375,
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 , as
established pursuant to Section 22375, within 30 days of
the date of the member's signature and, if applicable, the spouse's
signature, and 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 , as
established pursuant to Section 22375, 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 , as
established pursuant to Section 22375, 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 , as described in Section
22375, 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 , as established
pursuant to Section 22375 .
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 as described in
Section 22375 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 as described in
Section 22375 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 as described in Section 22375 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 as described in
Section 22375 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 as described in
Section 22375 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 as described in Section 22375 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 or 23301 .
(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
or 23301 .
(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 pursuant to Section 23300
.
(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.
(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.
(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.
(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.
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 prior to 60 years of age
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.