AB 1878, as introduced, Jones-Sawyer. Public Employees’ Retirement System: school members: postretirement death benefit.
The Public Employees’ Retirement Law requires that, upon the death of any state or school member after retirement and while receiving a retirement allowance, the sum of $2,000 be paid to the member’s designated beneficiary, as specified. Existing law provides that the additional employer contributions required to fund this benefit be computed as a level percentage of member compensation, and these are deposited in the Public Employees’ Retirement Fund, a continuously appropriated fund.
This bill, on and after January 1, 2017, would increase the amount of payment to school members, described above, to $7,045. By increasing contributions to the Public Employees’ Retirement Fund, this bill would make an appropriation.
Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 21623 of the Government Code is
2amended to read:
(a) begin insert(1)end insertbegin insert end insertIn lieu of benefits provided by Section 21620
2or 21622, upon the death of any retired statebegin delete or schoolend delete member,
3after retirement and while receiving a retirement allowance from
4this system, there shall be paid to the beneficiary whom he or she
5shall nominate by written designation duly executed and filed with
6the board, the sum of two thousand dollars ($2,000), to be provided
7from contributions by the employer.
8(2) On and after
January 1, 2017, in lieu of benefits provided
9by Section 21620 or 21622, upon the death of any retired school
10member, after retirement and while receiving a retirement
11allowance from this system, there shall be paid to the beneficiary
12whom he or she shall nominate by written designation duly
13executed and filed with the board, the sum of seven thousand
14forty-five dollars ($7,045), to be provided from contributions by
15the employer.
16(b) For the purposes of this section, all contributions, liabilities,
17actuarial interest rates, and other valuation factors shall be
18determined on the basis of actuarial assumptions and methods that,
19in the aggregate, are reasonable and that, in combination, offer the
20actuary’s best estimate of anticipated experience under this system.
21(c) The additional employer contributions required under this
22section shall be computed as a
level percentage of member
23compensation.
24(d) This section shall apply to a school employer and a retired
25school member whose death after retirement occurs on or after
26January 1, 2001. This section shall not apply to any contracting
27agency or local member, except those contracting agencies that
28are school employers and those school districts or community
29college districts as defined in subdivision (i) of Section 20057.
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