AB 1878, as amended, 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, tobegin delete $7,045. Byend deletebegin insert not less than $5,000. The bill would authorize the Board of
Administration of the Public Employees’ Retirement System to adjust the death benefit amount following each actuarial valuation based on changes in the All Urban California Consumer Price Index, as specified.end insert
begin insert Byend insert 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) (1) In lieu of benefits provided by Section 21620
4or 21622, upon the death of any retired state member, after
5retirement and while receiving a retirement allowance from this
6system, there shall be paid to the beneficiary whom he or she shall
7nominate by written designation duly executed and filed with the
8board, the sum of two thousand dollars ($2,000), to be provided
9from contributions by the employer.
10(2) On and after January 1, 2017, in lieu of benefits provided
11by Section 21620 or 21622, upon the death of any retired school
12member, after retirement and while receiving a retirement
13allowance from this system, there shall
be paid to the beneficiary
14whom he or she shall nominate by written designation duly
15executed and filed with the board, the sum ofbegin delete seven thousand begin insert not less than five thousand dollars
16forty-five dollars ($7,045),end delete
17($5,000),end insert to be provided from contributions by the employer.
18
(b) The Board of Administration of the Public Employees’
19Retirement System may adjust the death benefit amount following
20each actuarial valuation based on changes in the All Urban
21California Consumer Price Index and adopt as a plan amendment
22any adjusted amount.
16 23(b)
end delete
24begin insert(c)end insert For the purposes of this section, all contributions, liabilities,
25actuarial interest rates, and other valuation factors shall be
26determined on the basis of actuarial assumptions and methods that,
27in the aggregate, are reasonable and that, in combination, offer the
28actuary’s best estimate of anticipated experience under this system.
21 29(c)
end delete
30begin insert(d)end insert The additional employer contributions required under this
31section shall be computed as a level percentage of
member
32compensation.
24 33(d)
end delete
34begin insert(e)end insert This section shall apply to a school employer and a retired
35school member whose death after retirement occurs on or after
36January 1, 2001. This section shall not apply to any contracting
37agency or local member, except those contracting agencies that
P3 1are school employers and those school districts or community
2college districts as defined in subdivision (i) of Section 20057.
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