AB 1878, as amended, Jones-Sawyer. Public Employees’ Retirement System:begin insert state orend insert 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.
Thisbegin delete bill, on and after January 1, 2017, would increase the amount of payment to school members, described above, to not less than $5,000. Theend delete bill would authorize the Board of Administration of the Public Employees’ Retirementbegin delete Systemend deletebegin insert
System, beginning on or after January 1, 2017,end insert to adjust the death benefit amount following each actuarial valuationbegin delete based onend deletebegin insert to reflectend insert changes in the All Urban California Consumer Price Index, as specified.
Bybegin delete increasingend deletebegin insert authorizing the board to increaseend insert contributionsbegin delete toend deletebegin insert deposited inend insert 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 delete(1)end deletebegin delete end deleteIn lieu of benefits provided by Section 21620
4or 21622, upon the death of any retired statebegin insert or schoolend insert member,
5after retirement and while receiving a retirement allowance from
6this system, there shall be paid to the beneficiary whom he or she
7shall nominate by written designation duly executed and filed with
8the board, 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 of not less than five
16thousand dollars ($5,000), to be provided from contributions by
17the employer.
18(b) begin deleteThe end deletebegin insertBeginning on or after January 1, 2017, the end insertBoard of
19Administration of the Public Employees’ Retirement System may
20adjust the death benefit amount following each actuarial valuation
21begin delete based onend deletebegin insert to reflectend insert changes in the All Urban California
Consumer
22Price Index and adopt as a plan amendment any adjusted amount.
23(c) For the purposes of this section, all contributions, liabilities,
24actuarial interest rates, and other valuation factors shall be
25determined on the basis of actuarial assumptions and methods that,
26in the aggregate, are reasonable and that, in combination, offer the
27actuary’s best estimate of anticipated experience under this system.
28(d) The additional employer contributions required under this
29section shall be computed as a level percentage of member
30compensation.
31(e) This section shall apply to a school employer and a retired
32school member whose death after retirement occurs on or after
P3 1January 1, 2001. This section shall not apply to any
contracting
2agency or local member, except those contracting agencies that
3are school employers and those school districts or community
4college districts as defined in subdivision (i) of Section 20057.
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