Amended in Assembly April 22, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 1824


Introduced by Assembly Member Rendon

February 18, 2014


An act to add Section 31760.8 to the Government Code, relating to county employees’ retirement.

LEGISLATIVE COUNSEL’S DIGEST

AB 1824, as amended, Rendon. County employees’ retirement: optional settlements revision.

The County Employees Retirement Law of 1937 permits a member or retired member of a retirement system established pursuant to its provisions, prior to the time that the first payment of any retirement allowance is made, to elect certain optional settlements, which operate to reduce the allowance payable to the member through his or her life and provide for a subsequent payment to another party or parties, including his or her spouse.begin insert Existing law authorizes a person to revoke a beneficiary nomination at his or her pleasure and nominate a different beneficiary, except for a nomination made under 3 specified optional settlements.end insert

This bill, upon adoption by a county, would permit a retired member to revisebegin delete certainend deletebegin insert the designated beneficiary for those specifiedend insert optional settlements if, at retirement, the retired member was unmarried or had been married less than one year, the retired member had retired before the county adopted other specified optional retirement settlements, and the application to revise includes the signature of the designated beneficiary of the optional settlement or a written declaration, as specified. The bill would provide a civil penalty for a person who knowingly provides false information in the declaration, to be brought at the option of a public prosecutor. The bill would also require, if the designated beneficiary of the optional settlement is a spouse or domestic partner of the member, that the application for revision evidence that person’s agreement to the revision. The bill would provide, pursuant to this revision, that the retired member’s allowance remain the same as provided by the optional settlement, adjusted for any cost-of-living increases that have been added to the retirement allowance. The bill would provide that the retirement system has no obligation to locate or otherwise contact retired members who may qualify for a revision. The bill would provide that any actions taken, as described above, do not excuse the obligation of a member to provide a continuing benefit to a former spouse pursuant to court order.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

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SECTION 1.  

Section 31760.8 is added to the Government
2Code
, to read:

3

31760.8.  

(a) begin deleteA end deletebegin insertNotwithstanding Section 31782, a end insertretired
4member, in order to provide for his or her spouse, shall be entitled
5to revise the designated beneficiary of an optional settlement
6elected pursuant to Sectionbegin delete 31761,end delete 31762, 31763, or 31764 at the
7time of retirement, if all of the following criteria are satisfied:

8(1) The member retired on or before the date the board made
9Section 31760.2, 31785.1, or 31786.1 applicable in the county.

10(2) At retirement, the member was unmarried or had been
11married less than one year.

12(3) The member’s spouse is at least 55 years of age and is older
13than the originally designated beneficiary.

14(4) The member’s application satisfies the requirements
15described in subdivisions (b) and (c).

16(b) (1) An application for a revision of an optional settlement
17pursuant to this section shall include the signature of the designated
18beneficiary of the optional settlement acknowledging the revision
19or shall include a written declaration of one or more of the
20following as may be applicable to the member:

21(A) The beneficiary has no identifiable community property
22interest in the benefit.

P3    1(B) The member does not know, and has taken all reasonable
2steps to determine, the whereabouts of the beneficiary.

3(C) The beneficiary has been advised of the application and has
4refused to sign the written acknowledgment.

5(D) The beneficiary is incapable of executing the
6acknowledgment because of an incapacitating mental or physical
7condition.

8(2) The purpose of this subdivision is to notify the beneficiary
9of the revision of an optional settlement made by a member that
10may affect the entitlement of the beneficiary.

11(3) A person who knowingly provides false information in the
12written declaration submitted pursuant to paragraph (1) shall be
13subject to a civil penalty of not less than one thousand dollars
14($1,000) and not more than twenty-five thousand dollars ($25,000),
15in addition to any civil remedies available to the board. An action
16to impose a civil penalty pursuant to this paragraph may be brought
17by any public prosecutor in the name of the people of the state.

18(c) In addition to the requirements of subdivision (b), if the
19originally designated beneficiary of the optional settlement is a
20former spouse or domestic partner of the member, the application
21for revision of an optional settlement shall also evidence agreement
22to the revision by the former spouse or domestic partner.

23(d) After revision, the member’s retirement allowance shall
24remain the same as provided by the optional settlement, adjusted
25by any cost-of-living increases that have been added to the
26retirement allowance.

27(e) The retirement system has no obligation to locate or
28otherwise contact retired members who may qualify for a revision
29under this section.

30(f) No actions taken pursuant to this section excuse the
31obligation of a member to provide a continuing benefit to a former
32spouse or other person pursuant to court order.

33(g) This section is not applicable in any county until the board
34of retirement, by resolution adopted by a majority vote, makes this
35section applicable in the county. The board’s resolution may
36designate a date, which may be prior or subsequent to the date of
37the resolution, as of which the resolution and this section shall be
38operative in the county.



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