Amended in Assembly April 12, 2016

Amended in Assembly March 15, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2404


Introduced by Assembly Member Cooley

February 19, 2016


An act to amend Sectionsbegin delete 21456, 21457, 21459, and 21463 ofend deletebegin insert 21356, 21357, 21385, 21450, 21451, 21452, 21453, 21454, 21455, 21456, 21457, 21458, 21459, 21460, 21461, 21461.5, 21462, 21463, 21464, 21465, 21492, 21503, 21504, 21505, 21530, 21547, 21547.7, 21548, 21604, 21625, 21628, 21629, 21630, 21631, 21632, 21633, 21752, 75070, 75071,end insertbegin insert 75073, 75094, 75522, 75570, 75571, 75573, and 75590, end insertbegin insertto amend the heading of Article 6 (commencing with Section 21450) of Chapter 13 of Part 3 of Division 5 of Title 2 of,end insertbegin insert to add Sections 75071.5 and 75571.5 to, and to add Article 7 (commencing with Section 21470) to Chapter 13 of Part 3 of Division 5 of Title 2 of,end insert the Government Code, relating to retirement benefits.

LEGISLATIVE COUNSEL’S DIGEST

AB 2404, as amended, Cooley. Public Employees’ Retirement System: optional settlements.

Existing lawbegin insert creates the Public Employees’ Retirement System (PERS), the Judges’ Retirement System, and the Judges’ Retirement System II, all of which are administrated by the Board of Administration of the Public Employees’ Retirement System. Existing lawend insert permits a member of the Public Employees’ Retirement System to elect from among several optional settlements for the purpose of structuring his or her retirement allowance, which may result in a reduction of the allowance paid to the member in relation to the payments to his or her beneficiary after the member’s death. Existing law includes among these optionsbegin delete optionalend deletebegin insert the following: optional settlement 1, which provides for payment of a retirement allowance until death and the payment of any remaining contributions at death to his or her beneficiary or estate; optionalend insert settlement 2, which provides an allowance for life to the member and thereafter to his or herbegin delete beneficiary, and optionalend deletebegin insert beneficiaryend insertbegin insert; optionalend insert settlement 3, which provides an allowance for life to the member and thereafter 1/2 of his or her allowance to his or herbegin delete beneficiary.end deletebegin insert beneficiary; optional settlement 4, which provides for such other benefits that are the actuarial equivalent of a member’s retirement allowance, subject to approval of the board and that the benefits payable not exceed actuarial equivalent of benefits under optional settlement 2, as specified; and optional settlement 5, which provides for a partial present distribution of the actuarial present value of a portion of a memberend insertbegin insert’s unmodified monthly allowance, as specified.end insert Existing law entitles a memberbegin delete who elected optional settlement 2 and optional settlement 3 toend deletebegin insert to elect certain variations within these settlements and, in certain instances, toend insert a recalculated, increased allowance if the beneficiary predeceases the member, subject to a specified, sinking percentage.begin delete Existing law provides that a member who waives the right for an increased allowance upon the death of the beneficiary, as specified, is not entitled to an increase in his or her allowance, as described above.end deletebegin insert Existing similarly permits a member of the Judges’ Retirement System or the Judges’ Retirement System II to select from various optional settlements for the purpose of structuring his or her retirement benefits.end insert

This bill would provide that the right of a member to receive a recalculated allowance upon the death of his or her beneficiary, as described above, only applies to a member who retires on or before December 31, 2017.

begin insert

This bill would limit the application of the optional settlements and variations described above to PERS members who retire on or before December 31, 2017. For members who retire on or after January 1, 2018, the bill would revise and recast the optional retirement settlements, which would be termed the Return of Remaining Contributions Option 1, the 100 Percent Beneficiary Option 2, The 50 Percent Beneficiary Option 3, and the Flexible Beneficiary Option 4. The bill would revise and bring forward various administrative provisions in connection with these settlements, including those relating to adjustments of actuarial equivalents by the board, the effective dates for elections and revocations and dates of payments, the effect of dissolution of marriage, and of a beneficiary predeceasing a member, among others. The bill would similarly limit application of current optional settlements and variations described above to members of the Judges’ Retirement System or the Judges’ Retirement System II who retire on or before December 31, 2017, and would provide to members of those systems who retire on and after January 1, 2018, optional retirement settlements analogous to those provided to PERS members, as described above. The bill would make conforming and technical changes.

end insert

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

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

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 21356 of the end insertbegin insertGovernment Codeend insertbegin insert is
2amended to read:end insert

3

21356.  

(a) A member who elects, pursuant to Article 1.7
4(commencing with Section 19996.30) of Chapter 7 of Part 2.6 or
5pursuant to Sections 21110 through 21115, to participate in partial
6service retirement, while so participating, shall receive a reduced
7service retirement allowance. The reduced service retirement
8allowance shall be the amount of the service retirement allowance
9to which the employee would otherwise have been entitled had he
10or she fully retired on the effective date of the partial service
11retirement, reduced by the percentage of the employee’s full-time
12work which the employee has elected to work while on partial
13service retirement.

14(b) Article 6 (commencing with Section 21450)begin insert and Article 7
15(commencing with Section 21470)end insert
shall not apply to an employee
16who is participating in reduced worktime for partial service
17retirement.

18(c) For a member who elects pursuant to Article 1.7
19(commencing with Section 19996.30) of Chapter 7 of Part 2.6 or
20pursuant to Sections 21110 through 21115 to become fully retired,
21the current service pension, or current and prior service pensions,
22as the case may be, upon his or her full service retirement shall be
23(1) the sum of a current service pension calculated on the basis of
24service rendered during participation in reduced worktime in
P4    1accordance with the formula applicable to his or her current service
2pension, plus his or her current service pension, or current and
3prior service pensions, as the case may be, as it was prior to his or
4her full service retirement, provided that full service retirement
5occurs before he or she renders, while participating in reduced
6worktime for partial service retirement, one year of state service
7credited under this system; or (2) if he or she has rendered one
8year or more of state service while participating in reduced
9worktime for partial service retirement, a current service pension,
10or current and prior service pensions, as the case may be, based
11on the total years of service with which the member is entitled to
12be credited, calculated on the basis of the formula currently
13applicable to the employment in which the service was rendered.
14A member shall receive service credit for service during
15participation in reduced worktime for partial retirement and service
16credited at the time of the election to participate in reduced
17worktime for partial retirement.

18begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 21357 of the end insertbegin insertGovernment Codeend insertbegin insert is amended to
19read:end insert

20

21357.  

(a) For a member reinstated from service retirement
21or partial service retirement, the current service pension, or current
22and prior service pensions, as the case may be, upon his or her
23service retirement subsequent to the reinstatement, shall be the
24sum of (1) a current service pension calculated on the basis of
25service rendered after reinstatement in accordance with the formula
26applicable to him or her in that service and membership, plus, (2)
27if the subsequent retirement occurs before he or she renders, after
28his or her reinstatement, at least one year of state service credited
29under this system, or if the subsequent service or disability
30retirement occurs after his or her reinstatement from service or
31disability retirement pursuant to an election under Section 21465,
32his or her current service pension, or current and prior service
33pensions, as the case may be, as it was prior to his or her
34reinstatement, adjusted for any service on which the pension was
35based that was included in coverage of the federal system during
36reinstatement according to the formula applicable to the service
37in employment for which he or she was retired, and further adjusted
38according to any change after reinstatement in the provisions
39governing the calculation of his or her pension that would have
40applied to him or her had he or she continued in retirement but
P5    1been subject to the formula applied in the first adjustment; or, for
2state miscellaneous and state industrial service subject to Section
321076, in lieu of (2), plus (3) a current service pension, or current
4and prior service pensions, as the case may be, as it would have
5been prior to his or her reinstatement under the formula applicable
6to Section 21076, adjusted for any service on which the pension
7was based that was included in coverage of the federal system
8during reinstatement according to the formula applicable to the
9service in employment for which he or she was retired, and further
10adjusted according to any change after reinstatement in the
11provisions governing the calculations of his or her pension that
12would have applied to him or her had he or she continued in
13retirement and been subject to the formula applicable to Section
14begin delete 21076,end deletebegin insert 21076 or 21483,end insert or if he or she has rendered one year or
15more of state service after reinstatement, in lieu of (2) or (3), plus
16(4), a current service pension based on current service rendered
17prior to reinstatement, calculated on the basis of the formula
18currently applicable to the employment in which the service was
19rendered but on the basis of an age taken to the preceding
20completed quarter year but not less than the minimum retirement
21age applicable to him or her at his or her last retirement and
22determined by deducting from his or her age at his or her
23subsequent retirement, the aggregate time during which he or she
24was under retirement. For a member reinstated from nonindustrial
25disability retirement, the current service pension upon his or her
26service retirement after attaining an age one year less than the
27minimum age at which he or she could have retired without an
28actuarial discount because of age in the employment from which
29he or she was last retired, or upon his or her disability retirement
30after attaining the minimum age, and subsequent to reinstatement,
31shall be calculated in the manners described in the preceding
32sentence, but the age determined upon subsequent retirement after
33rendering at least one year of state service credited under this
34system shall not be taken at less than one year less than the
35minimum age if the subsequent retirement is for service, or the
36minimum age if the retirement is for disability.

37(b) The current service pension otherwise payable under this
38section to a member whose allowance prior to reinstatement was
39paid pursuant to his or her election under Sectionbegin delete 21461end deletebegin insert 21461,
4021461.5, 21479, or 21480end insert
shall be reduced by the actuarial
P6    1equivalent, on the date of retirement subsequent to reinstatement,
2of the amount (converted as below), if any, by which:

3(1) The total amount paid in the period during which a temporary
4annuity was included in the payments, reduced by the total amount
5that would have been payable during that period had the election
6not been made, exceeds

7(2) The excess of the total amount that would have been payable,
8had the election not been made, during the time subsequent to that
9period and prior to reinstatement, over the total amount actually
10paid during that time.

11The amount determined by the above formula shall be converted
12to an amount equaling the actuarial equivalent on the date of
13reinstatement and this latter amount shall be the basis of the
14actuarial equivalent on the date of retirement subsequent to
15reinstatement.

16Actuarial equivalents required by this section shall be based on
17the interest rate and mortality tables in use by this system on the
18date of retirement subsequent to reinstatement.

19(c) Notwithstanding this section, or any other provision of this
20part, the current service pension payable to any member subject
21to this section who rendered one year or more of state service
22credited under this system after reinstatement on retirement for
23service subsequent to reinstatement from service retirement for
24any credited service for which a current service pension was paid
25prior to reinstatement shall not be less than the current service
26pension that would be payable on the date of the subsequent
27retirement had the member not been reinstated. For state
28miscellaneous and state industrial service subject to Section 21076,
29the current service pension payable for any credited service for
30which a current service pension was paid prior to reinstatement
31shall not be less than the current service pension that would have
32been payable on the date of the subsequent retirement had the
33member’s retirement been subject to the formula under Section
3421076 and had not been reinstated, adjusted, however, by any
35reduction under this section because of an election under Section
3621461 and, for any service so credited that was included in
37coverage of the federal system during reinstatement, according to
38the formula applicable to the service in employment from which
39he or she was retired.

P7    1begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 21385 of the end insertbegin insertGovernment Codeend insertbegin insert is amended to
2read:end insert

3

21385.  

The prior service pension of a member reinstated from
4service retirement, upon his or her subsequent service retirement,
5shall be in the same amount as his or her prior service pension
6prior to his or her reinstatement, adjusted for any service on which
7the pension was based that was included in coverage of the federal
8system during reinstatement according to the formula applicable
9to the service in employment from which he or she was retired,
10and further adjusted according to any change in the provisions
11governing the calculation of the pensions, using the formula applied
12in the first adjustment, made after the reinstatement and applicable
13to pensions being paid at the date of the change if the subsequent
14retirement occurs before he or she renders after his or her
15reinstatement at least one year of state service credited under this
16system. Otherwise, the prior service pension calculated on the
17basis of an age, taken to the preceding completed quarter year but
18not less than the minimum retirement age applicable to him or her
19at his or her last retirement, and determined by deducting from his
20or her age at his or her subsequent retirement, the aggregate time
21during which he or she was under retirement. For such a member
22reinstated from nonindustrial disability retirement, the prior service
23pension upon his or her service retirement after attaining an age
24one year less than the minimum age at which he or she could have
25retired without an actuarial discount because of age in the
26employment from which he or she was last retired, or upon his or
27her disability retirement after attaining the minimum age, and
28subsequent to reinstatement, shall be calculated in the manners
29described in the preceding sentence, but the age determined upon
30subsequent retirement after rendering at least one year of state
31service, shall not be taken at less than one year less than the
32minimum age if the subsequent retirement is for service, or the
33minimum age if the retirement is for disability.

34The prior service pension otherwise payable under this section
35to a member whose allowance prior to reinstatement was paid
36pursuant to his or her election under Sectionbegin delete 21461end deletebegin insert end insertbegin insert 21461,
3721461.5, 21479, or 21480end insert
shall be reduced by the actuarial
38equivalent, on the date of retirement subsequent to reinstatement,
39of the amount, if any (converted as below), by which:

P8    1(a) The total amount paid in the period during which a temporary
2annuity was included in the payments, the amount being reduced
3by the total amount that would have been payable during the period
4had the election not been made; exceeds

5(b) The excess of the total amount that would have been payable,
6had the election not been made, during the time subsequent to the
7period and prior to reinstatement over the total amount actually
8paid during that time.

9The amount determined by the above formula shall be converted
10to an amount equaling the actuarial equivalent on the date of
11reinstatement. The latter amount shall be the basis of the actuarial
12equivalent, on the date of retirement subsequent to reinstatement.

13Actuarial equivalents required by this section shall be based on
14the interest rate and mortality tables in use by this system on the
15date of retirement subsequent to reinstatement.

16Notwithstanding this section, or any other provision of this part,
17the prior service pension payable to any member subject to this
18section who rendered one year or more of state service credited
19under this system after reinstatement on retirement for service
20subsequent to reinstatement from service retirement for any
21credited service for which a prior service pension was paid prior
22to reinstatement shall not be less than the prior service pension
23that would be payable on the date of the subsequent retirement
24had the member not been reinstated, adjusted, however, by any
25reduction under this section because of an election under Section
26begin delete 21461end deletebegin insert 21461, 21461.5, 21479, or 21480end insert and, for any service so
27credited that was included in coverage of the federal system during
28reinstatement, according to the formula applicable to the service
29in employment from which he or she was retired.

30begin insert

begin insertSEC. 4.end insert  

end insert

begin insertThe heading of Article 6 (commencing with Section
3121450) of Chapter 13 of Part 3 of Division 5 of Title 2 of the end insert
begin insert32
Government Code
end insert
begin insert is amended to read:end insert

33 

34Article 6.  Optional Settlementsbegin insert Prior to January 1, 2018end insert
35

 

36begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 21450 of the end insertbegin insertGovernment Codeend insertbegin insert is amended to
37read:end insert

38

21450.  

This system shall provide to any member who requests
39materials relating to retirement, a written explanation of the effects,
40if any, of each possible decision relating to the selection of optional
P9    1settlements, beneficiaries, and survivor benefits upon health
2benefits that are provided pursuant to Part 5 (commencing with
3Section 22750).

begin insert

4
This section shall apply to any member who retires on or before
5December 31, 2017.

end insert
6begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 21451 of the end insertbegin insertGovernment Codeend insertbegin insert is amended to
7read:end insert

8

21451.  

In lieu of the retirement allowance for his or her life
9alone, a member or retired member may elect, or revoke or change
10a previous election prior to the approval of the previous election,
11to have the actuarial equivalent of his or her retirement allowance
12as of the date of retirement applied to a lesser retirement allowance,
13in accordance with one of the optional settlements specified in this
14article. The election or revocation or change thereof, with respect
15to a member subject to Sectionbegin delete 21624end deletebegin insert 21624, 21629, or 21630end insert at
16retirement, shall apply to all of the retirement allowance, if, at the
17effective date of retirement, the member has no spouse, children
18or dependent parents who would qualify for an allowance under
19Sectionbegin delete 21624end deletebegin insert 21624, 21629, or 21630, as applicable,end insert after the
20death of the member; or, if at retirement there are persons who
21would so qualify, then the election, or revocation, or change
22thereof, with respect to any optional settlement other than optional
23settlement one, shall apply only to the portion of the allowance
24that exceeds the amount of the allowance payable to the survivor.

25An actuarial equivalent under this article may be adjusted by the
26board for the intervals and upon the effective dates determined by
27the board.

begin insert

28
This section shall apply to any member who retires on or before
29December 31, 2017.

end insert
30begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 21452 of the end insertbegin insertGovernment Codeend insertbegin insert is amended to
31read:end insert

32

21452.  

The lesser retirement allowance under an optional
33settlement elected at retirement for law enforcement members
34whose retirement is effective prior to October 1, 1965, and who
35are entitled to receive benefits under the federal system, shall be
36actuarially equivalent to that part of the retirement allowance that
37is subject to option pursuant to Section 21451 that would have
38been payable at retirement had no optional settlement been elected
39after taking into consideration the reduction in the allowance
40provided for in former Section 21252.10, as amended by Chapter
P10   11657 of the Statutes of 1971. Upon the election of an optional
2settlement by a member who has not attained the federal retirement
3age the board shall estimate the federal benefit upon the basis of
4information then available to it. If the death of the member should
5occur before he or she has attained the federal retirement age
6payments under the optional settlement elected shall be as
7estimated. If the member attains the federal retirement age, the
8board shall then recalculate the lesser retirement allowance payable
9under the optional settlement upon the basis of the age of the
10member and the beneficiary on the effective date of retirement,
11actuarial tables then in use and the federal benefit.

begin insert

12
This section shall apply to any member who retires on or before
13December 31, 2017.

end insert
14begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 21453 of the end insertbegin insertGovernment Codeend insertbegin insert is amended to
15read:end insert

16

21453.  

An election, revocation, or change of election shall be
17made within 30 calendar days after the making of the first payment
18on account of any retirement allowance or, in the event of a change
19of retirement status after retirement, within 30 calendar days after
20the making of the first payment on account of any retirement
21allowance following the change in retirement status. “Change in
22retirement status” includes, but is not limited to, change from
23service to disability retirement, from disability retirement to service
24retirement, from nonindustrial disability retirement to industrial
25disability retirement, or from industrial to nonindustrial disability
26retirement.

27For purposes of this section, payment shall be deemed to have
28been made on the date a warrant is mailed, or the date funds are
29electronically transferred to a bank, savings and loan association,
30or credit union account for deposit in the member’s account.

31This section shall not be construed to authorize a member to
32change his or her retirement status after the election, revocation,
33or change of election provided in this section.

begin insert

34
This section shall apply to any member who retires on or before
35December 31, 2017.

end insert
36begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 21454 of the end insertbegin insertGovernment Codeend insertbegin insert is amended to
37read:end insert

38

21454.  

Notwithstanding Section 21453, an election of optional
39settlement 2 or 3, or optional settlement 4 involving life
40contingency in which a spouse is designated as the beneficiary,
P11   1may be modified as provided in this section in the event of a
2dissolution or annulment of the marriage or a legal separation in
3which the division of the community property awards the total
4interest in the retirement system to the retired member. The
5modification shall provide that payment shall be continued during
6the retired person’s lifetime in accordance with the optional
7settlement then in effect but that no monthly allowance shall be
8paid following the retired person’s death, and in lieu thereof there
9shall be paid in a lump sum to the member’s estate or a beneficiary
10designated by him or her the amount, if any, by which the
11 member’s accumulated contributions at retirement exceed the total
12payments made to the retired person to the date of his or her death.

begin insert

13
This section shall apply to any member who retires on or before
14December 31, 2017.

end insert
15begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 21455 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
16to read:end insert

17

21455.  

Optional settlement 1 consists of the right to have a
18retirement allowance paid him or her until his or her death and if
19he or she dies before he or she receives in annuity payments the
20amount of his or her accumulated contributions at retirement, to
21have the balance at death paid to his or her beneficiary or estate.

begin insert

22
This section shall apply to any member who retires on or before
23December 31, 2017.

end insert
24begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 21456 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
25to read:end insert

26

21456.  

Optional settlement 2 consists of the right to have a
27retirement allowance paid a member until his or her death and
28thereafter to his or her beneficiary for life.

29If the beneficiary predeceases the member and the member
30elected this section to be effective on or after January 1, 1990, the
31member’s allowance shall be adjusted effective the first of the
32month following the death of the beneficiary, to reflect the benefit
33that would have been paid had the member not selected an optional
34settlement.

35If a nonspouse beneficiary waives entitlement to this allowance
36and the member elected this section to be effective on or after
37January 1, 1993, the member’s allowance shall be adjusted effective
38the first of the month following the receipt of the waiver of the
39allowance entitlement from the nonspouse beneficiary to reflect
P12   1the benefit that would have been paid had the member not selected
2an optional settlement.

3If the marriage of a member is dissolved or annulled or there is
4a legal separation between the member and the beneficiary spouse
5and the judgment dividing the community property awards the
6total interest in this system to the member, and the member elects
7this section to be effective on or after January 1, 1994, the
8member’s allowance shall be adjusted effective the first of the
9month following the filing of the judgment with the board to reflect
10the benefit that would have been paid had the member not selected
11an optional settlement.

12If the beneficiary spouse predeceases the member on or after
13January 1, 1990, and the member elected this section to be effective
14prior to January 1, 1990, the member’s allowance shall be adjusted
15effective the first of the month following the death of the
16beneficiary spouse to reflect a new allowance as calculated below.

17If the nonspouse beneficiary waives entitlement to this allowance
18on or after January 1, 1993, and the member elected this section
19to be effective prior to January 1, 1993, the member’s allowance
20shall be adjusted, effective the first of the month following receipt
21by the board of the waiver of entitlement from the nonspouse
22beneficiary, to reflect a new allowance as calculated below.

23If the marriage of a member is dissolved or annulled or there is
24a legal separation between the member and the beneficiary spouse
25and the judgment dividing the community property awards the
26total interest in the retirement system to the member, and the
27member elected this section to be effective prior to January 1,
281994, the member’s allowance shall be adjusted, effective the first
29of the month following the filing of the judgment with the board
30to reflect a new allowance as calculated below. The qualifying
31event shall be the date on which the judgment is filed with the
32board.

33A percentage factor shall be applied to the difference between
34the member’s unmodified allowance and optional settlement 2
35allowance, both of which shall include applicable cost-of-living
36increases. The product of this equation shall then be added to the
37member’s optional settlement 2 allowance and the total amount
38shall become the member’s base allowance. The percentage factor
39applicable to each member shall be determined by the time between
40the member’s retirement effective date and the date of death of
P13   1the beneficiary spouse or by the time between the member’s
2retirement effective date and the date of the receipt of either the
3waiver of the allowance entitlement or the judgment of dissolution,
4annulment, or legal separation according to the following table:


5

 

Period between the member’s retirement
effective date and the date of the qualifying
event

Percentage

Less than 12 months

95%

12 months through 23 months

85%

24 months through 35 months

75%

36 months through 47 months

65%

48 months through 59 months

55%

60 months through 71 months

45%

72 months through 83 months

35%

84 months through 95 months

25%

96 months through 107 months

15%

108 months through 119 months

 5%

120 months or more

 0%

P13  20

 

21Nothing in this section shall result in additional cost to the
22employer.

begin insert

23
This section shall apply to any member who retires on or before
24December 31, 2017.

end insert
25begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 21457 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
26to read:end insert

27

21457.  

Optional settlement 3 consists of the right to have a
28retirement allowance paidbegin insert toend insert a member until his or her death, and
29thereafter to have one-half of his or her retirement allowance paid
30to his or her beneficiary for life.

31If the beneficiary predeceases the member and the member
32elected this section to be effective on or after January 1, 1990, the
33member’s allowance shall be adjusted effective the first of the
34month following the death of the beneficiary, to reflect the benefit
35that would have been paid had the member not selected an optional
36settlement.

37If the marriage of a member is dissolved or annulled or there is
38a legal separation between the member and the beneficiary spouse
39and the judgment dividing the community property awards the
40total interest in this system to the member, and the member elects
P14   1this section to be effective on or after January 1, 1994, the
2member’s allowance shall be adjusted effective the first of the
3month following the filing of the judgment with the board to reflect
4the benefit that would have been paid had the member not selected
5an optional settlement.

6If a nonspouse beneficiary waives entitlement to this allowance
7and the member elected this section to be effective on or after
8January 1, 1993, the member’s allowance shall be adjusted,
9effective the first of the month following the receipt of the waiver
10of the allowance entitlement from the nonspouse beneficiary, to
11reflect the benefit that would have been paid had the member not
12selected an optional settlement.

13If the beneficiary spouse predeceases the member on or after
14January 1, 1990, and the member elected this section to be effective
15prior to January 1, 1990, the member’s allowance shall be adjusted
16effective the first of the month following the death of the
17beneficiary spouse to reflect a new allowance as calculated below.

18If the marriage of a member is dissolved or annulled or there is
19a legal separation between the member and the beneficiary spouse
20and the judgment dividing the community property awards the
21total interest in the retirement system to the member, and the
22member elected this section to be effective prior to January 1,
231994, the member’s allowance shall be adjusted, effective the first
24of the month following the filing of the judgment with the board
25to reflect a new allowance as calculated below. The qualifying
26event shall be the date on which the judgment is filed with the
27board.

28If the nonspouse beneficiary waives entitlement to this allowance
29 on or after January 1, 1993, and the member elected this section
30to be effective prior to January 1, 1993, the member’s allowance
31shall be adjusted, effective the first of the month following receipt
32by the board of the waiver of entitlement from the nonspouse
33beneficiary, to reflect a new allowance as calculated below.

34A percentage factor shall be applied to the difference between
35the member’s unmodified allowance and optional settlement 3
36allowance, both of which shall include applicable cost-of-living
37increases. The product of this equation shall then be added to the
38member’s optional settlement 3 allowance and the total amount
39shall become the member’s base allowance. The percentage factor
40applicable to each member shall be determined by the time between
P15   1the member’s retirement effective date and the date of death of
2the beneficiary spouse or by the time between the member’s
3retirement effective date and the date of the receipt of either the
4waiver of the allowance entitlement or the judgment of dissolution,
5annulment, or legal separation according to the following table:


6

 

Period between the member’s retirement
effective date and the date of the qualifying
event

Percentage

Less than 12 months

95%

12 months through 23 months

85%

24 months through 35 months

75%

36 months through 47 months

65%

48 months through 59 months

55%

60 months through 71 months

45%

72 months through 83 months

35%

84 months through 95 months

25%

96 months through 107 months

15%

108 months through 119 months

 5%

120 months or more

 0%

P15  21

 

22Nothing in this section shall result in additional cost to the
23employer.

begin insert

24
This section shall apply to any member who retires on or before
25December 31, 2017.

end insert
26begin insert

begin insertSEC. 13.end insert  

end insert

begin insertSection 21458 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
27to read:end insert

28

21458.  

Optional settlement 4 consists of such other benefits
29as are the actuarial equivalent of a member’s retirement allowance,
30that he or she may select subject to the approval of the board.
31However, the actuarial equivalent of benefits under this optional
32settlement payable to the member’s beneficiary shall not exceed
33the actuarial equivalent of the benefits which would be payable to
34that beneficiary if the member had elected optional settlement 2
35and Section 21459.

36The board shall include in each member benefit booklet a specific
37illustration of the benefits available under optional settlement 4.

begin insert

38
This section shall apply to any member who retires on or before
39December 31, 2017.

end insert
P16   1begin insert

begin insertSEC. 14.end insert  

end insert

begin insertSection 21459 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
2to read:end insert

3

21459.  

A member who elects to receive optional settlement 2
4or 3 may concurrently and irrevocably elect to waive the provision
5for an increase to his or her allowance due to the death of his or
6her beneficiary and shall, instead, have his or her allowance based
7upon the waiver of this benefit.

begin insert

8
This section shall apply to any member who retires on or before
9December 31, 2017.

end insert
10begin insert

begin insertSEC. 15.end insert  

end insert

begin insertSection 21460 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
11to read:end insert

12

21460.  

A member who elects to receive the unmodified
13allowance or optional settlement 1, or optional settlement 2, 3, or
144 with or without making the election specified in Section 21459,
15and who names his or her spouse as the option beneficiary, and
16whose spouse is also an eligible survivor for the benefits provided
17by Section 21624, 21626, 21627, 21628, 21629, or 21630, and
18where the total benefit to the surviving spouse is at least 50 percent
19of the member’s unmodified allowance, may concurrently and
20irrevocably elect to have his or her allowance paid as a “qualified
21joint and survivor annuity.” Notwithstanding any other provision
22of this part, upon the election, the survivor allowance shall be paid
23only to the member’s spouse and shall continue to be paid upon
24the remarriage of the spouse. Any cost due to this election shall
25be paid by the member through an actuarial reduction to his or her
26allowance.

27For purposes of this section, a member’s retirement allowance
28shall be determined without regard to any limitation required
29pursuant to Section 415 of Title 26 of the United States Code but
30the amount payable to the spouse shall be subject to those limits
31as if it were the retirement allowance of the member.

begin insert

32
This section shall apply to any member who retires on or before
33December 31, 2017.

end insert
34begin insert

begin insertSEC. 16.end insert  

end insert

begin insertSection 21461 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
35to read:end insert

36

21461.  

(a) A member retiring for service may elect to have
37the actuarial equivalent of his or her unmodified service retirement
38allowance paid in two parts as follows:

P17   1(1) A temporary annuity in an amount specified by the member
2but which shall not result in a reduction to his or her unmodified
3allowance by more than 50 percent.

4(2) A life income consisting of his or her service retirement
5annuity plus the pension provided by the actuarial value of his or
6her current and prior service pensions remaining after providing
7the temporary annuity in paragraph (1).

8(b) The temporary annuity under subdivision (a) shall not be
9subject to further optional settlement under this article and shall
10be payable monthly as an addition to the member’s monthly life
11income beginning on his or her effective date of retirement and
12continuing until the member reachesbegin delete age 59end deletebegin delete12end deletebegin insert 59 years and six
13months of ageend insert
or any whole age betweenbegin delete ages 60 and 68,end deletebegin insert 60 and
1468 years of age,end insert
as designated by the member at the time of his or
15her retirement. If his or her death occurs prior to that age, the
16commuted value of any remaining installments shall be paid to his
17or her designated beneficiary in a lump sum.

begin insert

18
This section shall apply to any member who retires on or before
19December 31, 2017.

end insert
20begin insert

begin insertSEC. 17.end insert  

end insert

begin insertSection 21461.5 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
21to read:end insert

22

21461.5.  

(a) Notwithstanding Section 21461, a member retiring
23for service who became a member of the system on or after January
241, 2002, and who is covered under the federal system but is not
25yet receiving a retirement or disability benefit under that system,
26may elect to have the actuarial equivalent of his or her unmodified
27service retirement allowance paid in two parts as follows:

28(1) A temporary annuity that shall not exceed the primary social
29security benefit that is anticipated the member shall be entitled to
30receive at social security retirement age, which age shall be
31designated by the member.

32(2) A life income consisting of the member’s service retirement
33 annuity plus the pension provided by the actuarial value of the
34member’s current and prior service pensions remaining after
35providing the temporary annuity in paragraph (1).

36(b) The temporary annuity under paragraph (1) of subdivision
37(a) shall not be subject to further optional settlement under this
38article and shall be payable monthly as an addition to the member’s
39monthly life income beginning on the member’s effective date of
40retirement and continuing until the retired member attains the age
P18   1designated by the member under subdivision (a). If the member
2dies prior to the designated age, the commuted value of any
3installments payable for the period remaining until the member
4would have attained that age shall be paid to the member’s
5designated beneficiary in a lump sum.

begin insert

6
This section shall apply to any member who retires on or before
7December 31, 2017.

end insert
8begin insert

begin insertSEC. 18.end insert  

end insert

begin insertSection 21462 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
9to read:end insert

10

21462.  

(a) (1) Notwithstanding any other provision of this
11part, a member who elected to receive optional settlement 2, 3, or
124, involving a life contingency of the beneficiary, may, if the
13beneficiary predeceases the member or if the member marries and
14the former spouse was not named as beneficiary, or, if a former
15spouse was named, in the event of a dissolution or annulment of
16the marriage or a legal separation in which the judgment dividing
17the community property awards the total interest in the retirement
18system to the retired member, elect to have the actuarial equivalent
19reflecting any selection against the fund resulting from the election
20as of the date of election of the allowance payable for the remainder
21of the member’s lifetime under the optional settlement previously
22chosen applied to a lesser allowance during the member’s
23remaining lifetime under one of the optional settlements specified
24in this article and name a different beneficiary.

25(2) Notwithstanding paragraph (1), for an election pursuant to
26this section that occurs on or after January 1, 2014, a member may
27name the same beneficiary as previously designated, provided that
28the resulting benefit to the member and the named beneficiary
29otherwise meets the requirements of this section.

30(b) The election shall be made within 12 months following the
31death of the beneficiary who predeceased the member or within
3212 months of the date of entry of the judgment dividing the
33community property of the parties, or within 12 months following
34marriage if the spouse is named as beneficiary. The election shall
35become effective on the date specified on the election, provided
36that this date is not earlier than the day following receipt of the
37election in this system pursuant to this section.

38(c) A member who has a qualifying event prior to January 1,
391988, and who fails to elect by January 1, 1989, or a member who
40has a qualifying event on or after January 1, 1988, and who fails
P19   1to elect within 12 months, shall retain the right to make an election
2under this section. However, this election shall become effective
3no earlier than 12 months after the date it is filed with the board,
4provided that neither the member nor the designated beneficiary
5die prior to the effective date of the election.

6(d) This section shall not be construed to mean that designation
7of a new beneficiary causes the selection of an optional settlement.
8An optional settlement shall be selected by a member in a writing
9filed by the member with the board.

begin insert

10
This section shall apply to any member who retires on or before
11December 31, 2017.

end insert
12begin insert

begin insertSEC. 19.end insert  

end insert

begin insertSection 21463 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
13to read:end insert

14

21463.  

A member who elected to receive optional settlement
152 or 3 and whose beneficiary predeceases him or her, shall be
16entitled to receive the increased allowance pursuant to Section
1721456 or Section 21457, as applicable, unless the member elected
18to waive the provision for an increase to his or her allowance
19pursuant to Section 21459.

begin insert

20
This section shall apply to any member who retires on or before
21December 31, 2017.

end insert
22begin insert

begin insertSEC. 20.end insert  

end insert

begin insertSection 21464 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
23to read:end insert

24

21464.  

Notwithstanding any provision of this part, a retired
25member who chose no optional settlement or optional settlement
261 at retirement may elect to have the actuarial equivalent, as of the
27date of the election, of the allowance payable for the remainder of
28his or her lifetime applied to a lesser allowance during his or her
29remaining lifetime under one of the optional settlements specified
30in this article and name his or her spouse as beneficiary.

31The election provided by this section is irrevocable and shall be
32made within 12 months following a member’s marriage if the
33spouse is named as beneficiary. The election shall become effective
34on the date specified on the election, provided that this date is not
35earlier than the day following receipt of the election in this system
36pursuant to this section.

37A member who married prior to or after January 1, 1988, who
38fails to elect within 12 months, shall retain the right to make an
39election under this section. However, the election shall become
40effective no earlier than 12 months after the date it is filed with
P20   1the board, provided that neither the member nor the designated
2beneficiary die prior to the effective date of the election.

3This section shall not be construed to mean that designation of
4a new beneficiary causes the selection of an optional settlement.
5An optional settlement shall be selected by a member in a writing
6filed by the member with the board.

begin insert

7
This section shall apply to any member who retires on or before
8December 31, 2017.

end insert
9begin insert

begin insertSEC. 21.end insert  

end insert

begin insertSection 21465 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
10to read:end insert

11

21465.  

(a) Optional settlement 5 consists of a partial
12distribution of the actuarial present value of the portion, as
13specified in this section, of the member’s unmodified monthly
14allowance, as prescribed in Section 21362, 21362.2, 21363,
1521363.1, 21363.4, or 21423, when a service retirement allowance
16is payable. The actuarial present value shall be based upon the
17investment return and postretirement mortality assumptions adopted
18by the board for that purpose. The member may elect to receive
19the actuarial present value of no less than 20 percent and no more
20than 50 percent of his or her unmodified allowance. The member
21may elect to receive the remaining portion of the unmodified
22allowance, not distributed as a lump-sum payment, under one of
23the settlements specified in this article for the remainder of his or
24her lifetime and thereafter to his or her designated beneficiary,
25unless this amount is solely limited to the survivor continuance
26portion. The portion of the unmodified allowance equivalent to
27the survivor continuance pursuant to Section 21624 may not be
28distributed as a lump-sum payment. The benefits provided under
29this section may not exceed the benefits that would have otherwise
30been provided under any other section in this article.

31(b) This section shall only apply to the following members who
32retire on or after January 1,begin delete 1999:end deletebegin insert 1999, and on or before December
3331, 2017:end insert

34(1) State peace officer/firefighter members in State Bargaining
35Unit 6.

36(2) State peace officer/firefighter members in State Bargaining
37Unit 8 and state patrol members in State Bargaining Unit 5, if a
38memorandum of understanding has been agreed upon by the state
39and the recognized employee organization to become subject to
40this section.

P21   1(3) This section shall also apply to state peace officer/firefighter
2members and state patrol members in related supervisory and
3confidential positions, if the Department of Human Resources has
4approved their inclusion.

5begin insert

begin insertSEC. 22.end insert  

end insert

begin insertArticle 7 (commencing with Section 21470) is added
6to Chapter 13 of Part 3 of Division 5 of Title 2 of the end insert
begin insertGovernment
7Code
end insert
begin insert, to read:end insert

begin insert

8 

9Article begin insert7.end insert  Optional Settlements on and After January 1, 2018
10

 

11

begin insert21470.end insert  

This system shall provide to any member who retires
12on or after January 1, 2018, and requests materials relating to
13retirement, a written explanation of the effects, if any, of each
14possible decision relating to the selection of optional settlements,
15beneficiaries, and survivor benefits upon health benefits that are
16provided pursuant to Part 5 (commencing with Section 22750).

17

begin insert21471.end insert  

(a) The unmodified allowance consists of the right to
18have the maximum retirement allowance paid to a member until
19his or her death. There is no continuing allowance to a beneficiary
20and there is no return of unused accumulated contributions after
21the death of the member.

22
(b) This section shall apply to any member who retires on or
23after January 1, 2018.

24

begin insert21471.1.end insert  

(a) In lieu of electing the unmodified allowance, a
25member may elect to have the actuarial equivalent of his or her
26unmodified allowance as of the date of retirement applied to a
27lesser retirement allowance, in accordance with one of the optional
28settlements specified in this article. The election with respect to a
29member subject to Section 21624, 21629, or 21630 at retirement,
30shall apply to all of the retirement allowance, if, at the effective
31date of retirement, the member has no spouse, children, or
32dependent parents who would qualify for an allowance under
33Section 21624, 21629, or 21630, as applicable, after the death of
34the member; or, if at retirement there are persons who would so
35qualify, then the election with respect to any optional settlement
36other than the optional settlement in Section 21474, shall apply
37only to the portion of the allowance that exceeds the amount of
38the allowance payable to the survivor.

P22   1
(b) An actuarial equivalent under this article may be adjusted
2by the board for the intervals and upon the effective dates
3determined by the board.

4
(c) This section shall apply to any member who retires on or
5after January 1, 2018.

6

begin insert21472.end insert  

(a) An election, revocation, or change of election shall
7be made within 30 calendar days after the making of the first
8payment on account of any retirement allowance or, in the event
9of a change of retirement status after retirement, within 30
10calendar days after the making of the first payment on account of
11any retirement allowance following the change in retirement status.
12“Change in retirement status” includes, but is not limited to,
13change from service to disability retirement, from disability
14retirement to service retirement, from nonindustrial disability
15retirement to industrial disability retirement, or from industrial
16to nonindustrial disability retirement

17
(b) For purposes of this section, payment shall be deemed to
18have been made on the date a warrant is mailed, or the date funds
19are electronically transferred to a bank, savings and loan
20association, or credit union account for deposit in the member’s
21account.

22
(c) This section shall not be construed to authorize a member
23to change his or her retirement status after the election, revocation,
24or change of election provided in this section.

25
(d) This section shall apply to any member who retires on or
26after January 1, 2018.

27

begin insert21473.end insert  

(a) Notwithstanding Section 21472, the election of an
28optional settlement in Section 21475, 21476, or 21477 in which a
29spouse is designated as the beneficiary, may be modified as
30provided in this section in the event of a dissolution or annulment
31of the marriage or a legal separation in which the division of the
32community property awards the total interest in the retirement
33system to the retired member. The modification shall provide that
34payment shall be continued during the retired member’s lifetime
35in accordance with the optional settlement then in effect but that
36no monthly allowance shall be paid following the retired member’s
37death, and in lieu thereof there shall be paid in a lump sum to the
38member’s estate or a beneficiary designated by him or her the
39amount, if any, by which the member’s accumulated contributions
P23   1at retirement exceed the total payments made to the retired member
2to the date of his or her death.

3
(b) This section shall apply to any member who retires on or
4after January 1, 2018.

5

begin insert21474.end insert  

(a) The Return of Remaining Contributions Option 1
6consists of the right to have a retirement allowance paid to a
7member until his or her death and if he or she dies before he or
8she receives in annuity payments the amount of his or her
9accumulated contributions at retirement, to have the balance at
10death paid to his or her named beneficiary or estate.

11
(b) This section shall apply to any member who retires on or
12after January 1, 2018.

13

begin insert21475.end insert  

(a) The 100 Percent Beneficiary Option 2 consists of
14the right to have a retirement allowance paid to a member until
15his or her death, and thereafter to have the same monthly
16allowance paid to his or her named beneficiary for life; provided
17that with respect to a member subject to Section 21624, 21629, or
1821630 at retirement, the named beneficiary shall receive a monthly
19allowance equal to that portion of the member’s allowance that
20exceeds the amount of the allowance deemed payable to a survivor.

21
(b) Upon the death of both the member and the named
22beneficiary, any remaining balance of the member’s accumulated
23contributions at retirement not used to fund the allowances paid
24to the member and the named beneficiary will be paid in a lump
25sum to a secondary beneficiary or beneficiaries named by the
26member.

27
(c) This section shall apply to any member who retires on or
28after January 1, 2018.

29

begin insert21476.end insert  

(a) The 50 Percent Beneficiary Option 3 consists of
30the right to have a retirement allowance paid to a member until
31his or her death, and thereafter to have one-half of the member’s
32monthly allowance paid to his or her named beneficiary for life;
33provided that with respect to a member subject to Section 21624,
3421629, or 21630 at retirement the named beneficiary shall receive
35a monthly allowance equal to one-half of that portion of the
36member’s allowance that exceeds the amount of the allowance
37deemed payable to a survivor.

38
(b) Upon the death of both the member and the named
39beneficiary, any remaining balance of the member’s accumulated
40contributions at retirement not used to fund the allowances paid
P24   1to the member and the named beneficiary will be paid in a lump
2sum to the secondary beneficiary or beneficiaries named by the
3member.

4
(c) This section shall apply to any member who retires on or
5after January 1, 2018.

6

begin insert21477.end insert  

(a) The Flexible Beneficiary Option 4 consists of the
7right to have a retirement allowance paid to a member until his
8or her death, and thereafter to have a monthly allowance paid to
9his or her named beneficiary or beneficiaries for life. However,
10the actuarial equivalent of benefits under this optional settlement
11payable to the member’s beneficiary or beneficiaries shall not
12exceed the actuarial equivalent of the benefits which would be
13payable to that beneficiary or beneficiaries if the member had
14elected the optional settlement found in Section 21475. The member
15may select the monthly allowance payable to the named beneficiary
16or beneficiaries from the options below:

17
(1) “Specific Dollar Amount to a Beneficiary or Beneficiaries,”
18 pursuant to which the member may specify that upon his or her
19death after retirement, a monthly allowance in an amount
20determined by the member be paid to a named beneficiary or
21beneficiaries for life.

22
(2) “Specific Percentage to a Beneficiary or Beneficiaries,”
23pursuant to which the member may specify that upon his or her
24death after retirement, a monthly allowance in an amount
25equivalent to a specified percentage of the member’s unmodified
26allowance be paid to a named beneficiary or beneficiaries for life.

27
(b) This section shall apply to any member who retires on or
28after January 1, 2018.

29

begin insert21478.end insert  

(a) A member who elects to receive the unmodified
30allowance or the optional settlement in Section 21474, or the
31optional settlement in Section 21475, 21476, or 21477, and who
32names his or her spouse as the option beneficiary, and whose
33spouse is also an eligible survivor for the benefits provided by
34Section 21624, 21626, 21627, 21628, 21629, or 21630, and the
35total benefit to the surviving spouse is at least 50 percent of the
36member’s unmodified allowance, may concurrently and irrevocably
37elect to have his or her allowance paid as a “qualified joint and
38survivor annuity.” Notwithstanding any other provision of this
39part, upon the election, the survivor allowance shall be paid only
40to the member’s spouse and shall continue to be paid upon the
P25   1remarriage of the spouse. Any cost due to this election shall be
2paid by the member through an actuarial reduction to his or her
3allowance.

4
(b) For purposes of this section, a member’s retirement
5allowance shall be determined without regard to any limitation
6required pursuant to Section 415 of Title 26 of the United States
7Code but the amount payable to the spouse shall be subject to
8those limits as if it were the retirement allowance of the member.

9
(c) This section shall apply to any member who retires on or
10after January 1, 2018.

11

begin insert21479.end insert  

(a) A member retiring for service may elect to have
12the actuarial equivalent of his or her unmodified service retirement
13allowance paid in two parts as follows:

14
(1) A temporary annuity in an amount specified by the member
15but which shall not result in a reduction to his or her unmodified
16allowance by more than 50 percent.

17
(2) A life income consisting of his or her service retirement
18annuity plus the pension provided by the actuarial value of his or
19her current and prior service pensions remaining after providing
20the temporary annuity in paragraph (1).

21
(b) The temporary annuity under subdivision (a) shall not be
22 subject to further optional settlement under this article and shall
23be payable monthly as an addition to the member’s monthly life
24income beginning on his or her effective date of retirement and
25continuing until the member reaches 59 years and six months of
26age or any whole age between 60 and 68 years of age, as
27designated by the member at the time of his or her retirement. If
28his or her death occurs prior to that age, the commuted value of
29any remaining installments shall be paid to his or her designated
30beneficiary in a lump sum.

31
(c) This section shall apply to any member who retires on or
32after January 1, 2018.

33

begin insert21480.end insert  

(a) Notwithstanding Section 21479, a member retiring
34for service who became a member of the system on or after January
351, 2002, and who is covered under the federal system but is not
36yet receiving a retirement or disability benefit under that system,
37may elect to have the actuarial equivalent of his or her unmodified
38service retirement allowance paid in two parts as follows:

39
(1) A temporary annuity that shall not exceed the primary social
40security benefit that is anticipated the member shall be entitled to
P26   1receive at social security retirement age, which age shall be
2designated by the member.

3
(2) A life income consisting of the member’s service retirement
4annuity plus the pension provided by the actuarial value of the
5member’s current and prior service pensions remaining after
6providing the temporary annuity in paragraph (1).

7
(b) The temporary annuity under paragraph (1) of subdivision
8(a) shall not be subject to further optional settlement under this
9article and shall be payable monthly as an addition to the
10member’s monthly life income beginning on the member’s effective
11date of retirement and continuing until the retired member attains
12the age designated by the member under subdivision (a). If the
13member dies prior to the designated age, the commuted value of
14any installments payable for the period remaining until the member
15would have attained that age shall be paid to the member’s
16designated beneficiary in a lump sum.

17
(c) This section shall apply to any member who retires on or
18after January 1, 2018.

19

begin insert21481.end insert  

(a) (1) Notwithstanding any other provision of this
20part, a member who elected the optional settlement in Section
2121475, 21476, or 21477, may, if the beneficiary predeceases the
22member or if the member marries and the former spouse was not
23named as beneficiary, or, if a former spouse was named, in the
24event of a dissolution or annulment of the marriage or a legal
25separation in which the judgment dividing the community property
26awards the total interest in the retirement system to the retired
27member, elect to have the actuarial equivalent reflecting any
28selection against the fund resulting from the election as of the date
29of election of the allowance payable for the remainder of the
30member’s lifetime under the optional settlement previously chosen
31applied to a lesser allowance during the member’s remaining
32lifetime under one of the optional settlements specified in this
33article and name a different beneficiary.

34
(2) Notwithstanding paragraph (1), for an election pursuant to
35this section that occurs on or after January 1, 2014, a member
36may name the same beneficiary as previously designated, provided
37that the resulting benefit to the member and the named beneficiary
38otherwise meets the requirements of this section.

39
(b) The election shall be made within 12 months following the
40death of the beneficiary who predeceased the member or within
P27   112 months of the date of entry of the judgment dividing the
2community property of the parties, or within 12 months following
3marriage if the spouse is named as beneficiary. The election shall
4become effective on the date specified on the election, provided
5that this date is not earlier than the day following receipt of the
6 election in this system pursuant to this section.

7
(c) A member who has a qualifying event prior to January 1,
81988, and who fails to elect by January 1, 1989, or a member who
9has a qualifying event on or after January 1, 1988, and who fails
10to elect within 12 months, shall retain the right to make an election
11under this section. However, this election shall become effective
12no earlier than 12 months after the date it is filed with the board,
13provided that neither the member nor the designated beneficiary
14die prior to the effective date of the election.

15
(d) This section shall not be construed to mean that designation
16of a new beneficiary causes the selection of an optional settlement.
17An optional settlement shall be selected by a member in a writing
18filed by the member with the board.

19
(c) This section shall apply to any member who retires on or
20after January 1, 2018.

21

begin insert21482.end insert  

(a) Notwithstanding any provision of this part, a retired
22member who chose no optional settlement or the optional
23settlement in Section 21474 at retirement may elect to have the
24actuarial equivalent, as of the date of the election, of the allowance
25payable for the remainder of his or her lifetime applied to a lesser
26allowance during his or her remaining lifetime under one of the
27optional settlements specified in this article and name his or her
28spouse as beneficiary.

29
(b) The election provided by this section is irrevocable and shall
30be made within 12 months following a member’s marriage if the
31spouse is named as beneficiary. The election shall become effective
32on the date specified on the election, provided that this date is not
33earlier than the day following receipt of the election in this system
34pursuant to this section.

35
(c) A member who married prior to or after January 1, 1988,
36who fails to elect within 12 months, shall retain the right to make
37an election under this section. However, the election shall become
38effective no earlier than 12 months after the date it is filed with
39the board, provided that neither the member nor the designated
40beneficiary die prior to the effective date of the election.

P28   1
(d) This section shall not be construed to mean that designation
2of a new beneficiary causes the selection of an optional settlement.
3An optional settlement shall be selected by a member in a writing
4filed by the member with the board.

5
(e) This section shall apply to any member who retires on or
6after January 1, 2018.

7

begin insert21483.end insert  

(a) Optional settlement 5 consists of a partial
8distribution of the actuarial present value of the portion, as
9specified in this section, of the member’s unmodified monthly
10allowance, as prescribed in Section 21362, 21362.2, 21363,
1121363.1, 21363.4, or 21423, when a service retirement allowance
12is payable. The actuarial present value shall be based upon the
13investment return and postretirement mortality assumptions
14adopted by the board for that purpose. The member may elect to
15receive the actuarial present value of no less than 20 percent and
16no more than 50 percent of his or her unmodified allowance. The
17member may elect to receive the remaining portion of the
18unmodified allowance, not distributed as a lump-sum payment,
19under one of the settlements specified in this article for the
20remainder of his or her lifetime and thereafter to his or her
21designated beneficiary, unless this amount is solely limited to the
22survivor continuance portion. The portion of the unmodified
23allowance equivalent to the survivor continuance pursuant to
24Section 21624 may not be distributed as a lump-sum payment. The
25benefits provided under this section may not exceed the benefits
26that would have otherwise been provided under any other section
27in this article.

28
(b) This section shall only apply to the following members who
29retire on or after January 1, 2018:

30
(1) State peace officer/firefighter members in State Bargaining
31Unit 6.

32
(2) State peace officer/firefighter members in State Bargaining
33Unit 8 and state patrol members in State Bargaining Unit 5, if a
34memorandum of understanding has been agreed upon by the state
35and the recognized employee organization to become subject to
36this section.

37
(3) State peace officer/firefighter members and state patrol
38members in supervisory and confidential positions related to the
39members described in paragraph (1) or (2), if the Department of
40Human Resources has approved their inclusion.

end insert
P29   1begin insert

begin insertSEC. 23.end insert  

end insert

begin insertSection 21492 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
2to read:end insert

3

21492.  

The designation of a beneficiary underbegin insert theend insert optional
4settlementsbegin delete 2 and 3, orend deletebegin insert in Section 21456, 21457, 21459, 21475,
521476, 21477, or 21458,end insert
if a benefit involving the life contingency
6of the beneficiary isbegin delete provided under optional settlement 4,end deletebegin insert provided,end insert
7 is irrevocable from the time of the first payment on account of any
8 retirement allowance. Otherwise a designation of beneficiary under
9this system is revocable at the pleasure of the member who made
10it. A member’s marriage, dissolution of marriage, annulment of
11his or her marriage, the birth of his or her child, or his or her
12adoption of a child shall constitute an automatic revocation of his
13or her previous revocable designation of beneficiary. A member’s
14termination of employment and withdrawal of contributions shall
15constitute an automatic revocation of the previous revocable
16designation of beneficiary. Subsequent reemployment or
17reinstatement from retirement to employment covered by this
18system shall not reinstate the previous designation of beneficiary.

19Upon revocation of any beneficiary designation, a member may
20designate the same or another beneficiary by a writing filed with
21the board, except as otherwise provided in Section 21490.

22begin insert

begin insertSEC. 24.end insert  

end insert

begin insertSection 21503 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
23to read:end insert

24

21503.  

The board may select an optional settlement under
25Article 6 (commencing with Section 21450)begin insert end insertbegin insertor Article 7
26(commencing with Section 21470)end insert
of Chapterbegin delete 13end deletebegin insert 13, if applicable,end insert
27 on behalf of the surviving spouse of a member who applied for
28retirement but who died prior to the mailing of a retirement
29allowance warrant and prior to an election in accordance with that
30article if all of the following conditions are met:

31(a) The application for retirement was received by this system,
32prior to the date of death.

33(b) The document containing the application for retirement
34received by this system did not provide for a temporary election
35of the optional settlementbegin delete 2.end deletebegin insert in Section 21456 or 21475. end insert

36(c) The deceased member had separated from state service at
37least one day prior to the effective date of retirement.

38(d) The deceased member was alive on the effective date of
39retirement.

P30   1(e) The beneficiary designated on the application for retirement
2is the surviving spouse who requests in writing that the board make
3the selection. Upon formal action by the board approving the
4request, the request shall become irrevocable.

5A retirement allowance provided in accordance with this section
6shall be calculated as if the member had electedbegin delete Section 21459.end delete
7
begin insert Sections 21456 and 21459 if his or her retirement date is on or
8before December 31, 2017, or Section 21475 if his or her
9retirement date is on or after January 1, 2018.end insert

10begin insert

begin insertSEC. 25.end insert  

end insert

begin insertSection 21504 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
11to read:end insert

12

21504.  

If a member dies on or after the effective date of
13retirement and prior to the mailing of a retirement allowance
14warrant and if the member has electedbegin delete anend deletebegin insert theend insert optional settlement
15begin delete 2 or 3end deletebegin insert in Section 21456, 21457, 21459, 21475, 21476, or 21477,end insert
16 or an optional settlementbegin delete 4end deletebegin insert in Section 21458,end insert involving payment
17of an allowance throughout the life of the beneficiary, or the
18member elected the unmodified allowance orbegin insert theend insert optional
19settlementbegin delete 1end deletebegin insert in either Section 21455 or 21474end insert and if a partially
20continued retirement allowance under Sections 21624 through
2121631, is payable, the death shall be considered to be death after
22retirement and the applicable benefits shall be payable.

23However, if the beneficiary designated on the election for
24retirement is either (1) the surviving unmarried minor child or
25children of the member and there is no surviving spouse eligible
26for a partially continued retirement allowance under Sections 21624
27through 21631, or (2) the surviving spouse of the member, the
28surviving spouse so named or the legal representative of the minor
29child or children so named may elect to receive benefits that would
30have been payable had the death occurred under the conditions of
31Section 21530. Except as provided in Section 21503, nothing in
32this part permits a surviving spouse, surviving children, or any
33person other than a member to elect an optional settlement.

34begin insert

begin insertSEC. 26.end insert  

end insert

begin insertSection 21505 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
35to read:end insert

36

21505.  

If a member who has been retired for service because
37he or she has attained the mandatory age of retirement applicable
38to members of his or her category dies within 30 days after the
39date upon which his or her retirement was mandatory, and without
40having electedbegin delete anend deletebegin insert theend insert optional settlementbegin delete 2 or 3end deletebegin insert end insertbegin insertin Section 21456,
P31   121457, 21459, 21475, 21476, or 21477,end insert
or an optional settlement
2begin delete ifend deletebegin insert in Section 21458,end insert involving payment of an allowance throughout
3the life of abegin delete beneficiary under Article 6 (commencing with Section
421450) of Chapter 13,end delete
begin insert beneficiary,end insert and if no part of the allowance
5of the member is automatically continued by this part after his or
6her death, his or her death shall be considered as that of a member
7before retirement, and the basic death benefit shall be payable, or,
8if the circumstances are such that a special death benefit would be
9payable if the death had occurred prior to retirement, the special
10death benefit shall be payable.

11begin insert

begin insertSEC. 27.end insert  

end insert

begin insertSection 21530 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
12to read:end insert

13

21530.  

(a) This system is liable for either the basic or special
14death benefit upon the death of a member in any of the following
15circumstances:

16(1) Before the effective date of retirement, and (A) while in
17state service, or (B) while absent on military service, provided the
18member has made contributions during the absence under Section
1920991 or has had contributions made on his or her behalf under
20Section 20997, or (C) within four months after discontinuance of
21state service, or (D) while on an approved leave of absence, or (E)
22while physically or mentally incapacitated for the performance of
23duty, if the incapacity has been continuous from discontinuance
24of state service, or (F) while employed as a member of a county
25 retirementbegin delete system ;end deletebegin insert system;end insert provided, the employment resulting
26in membership was begun on or after October 1, 1957, and within
2790 days after discontinuance of state service.

28(2) While in state service in partial service retirement pursuant
29to Article 1.7 (commencing with Section 19996.30) of Chapter 7
30of Part 2.6 or Sections 21110 through 21115.

31(3) On or after the effective date of retirement and before the
32mailing of a retirement allowance warrant and either within four
33months of discontinuance of state service or while physically or
34mentally incapacitated for the performance of duty if the incapacity
35has been continuous from discontinuance of state service, and
36providing all of the following conditions exist:

37(A) The retirement of the member was not compulsory under
38Article 5 (commencing with Section 21130) of Chapter 12.

39(B) The member has notbegin insert theend insert elected optional settlementbegin delete 2 or 3end delete
40begin insert in Section 21456, 21457, 21459, 21475, 21476, or 21477,end insert or an
P32   1optional settlementbegin delete 4end deletebegin insert in Section 21458,end insert involving payment of an
2allowance throughout the life of a begin delete beneficiary under Article 6
3(commencing with Section 21450) of Chapter 13.end delete
begin insert beneficiary.end insert

4(C) A partially continued allowance under Sections 21624
5through 21631, is not payable.

6(b) This system is liable for a limited death benefit, which
7consists only of the accumulated contributions of the member
8payable to his or her beneficiary or estate, under the following
9circumstances:

10(1) Upon the death of a member before the effective date of his
11or her retirement or, with respect to (A) any member whose
12retirement was not compulsory under Article 5 (commencing with
13Section 21130) of Chapter 12, and (B) any member who has not
14elected optionalbegin insert theend insert settlementbegin delete 2 or 3end deletebegin insert end insertbegin insertin Section 21456, 21457,
1521459, 21475, 21476, or 21477,end insert
or an optional settlementbegin delete 4end deletebegin insert in
16Section 21458end insert
involving payment of an allowance throughout the
17life of abegin delete beneficiary under Article 6 (commencing with Section
1821450) of Chapter 13,end delete
begin insert beneficiary,end insert on or after that effective date
19and before the mailing of the first retirement allowance warrant.

20(2) Under those circumstances in which this system is not liable
21for either the basic or special death benefit provided in subdivision
22(a) of this section, and a partially continued allowance under
23Sections 21624 through 21631, is not payable.

24begin insert

begin insertSEC. 28.end insert  

end insert

begin insertSection 21547 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
25to read:end insert

26

21547.  

(a) Notwithstanding any other provision of this article
27requiring attainment of the minimum age for voluntary service
28retirement to the member in his or her last employment preceding
29death, upon the death of a state member on or after January 1,
301993, who is credited with 20 years or more of state service, the
31surviving spouse, or eligible children if there is no surviving
32spouse, may receive a monthly allowance in lieu of the basic death
33benefit. The board shall notify the eligible survivor, as defined in
34Section 21546, of this alternate death benefit. The board shall
35calculate the monthly allowance that shall be payable as follows:

36(1) To the member’s surviving spouse, an amount equal to the
37amount the member would have received if the member had retired
38for service at minimum retirement age on the date of death and
39had electedbegin insert theend insert optional settlementbegin delete 2end deletebegin insert in Section 21456end insert and Section
4021459.

P33   1(2) If the member made a specific beneficiary designation under
2Section 21490, the monthly allowance shall be based only on that
3portion of the amount the member would have received described
4in paragraph (1) that would have been derived from the nonmember
5spouse’s community property interest in the member’s
6contributions and service credit.

7(3) If there is no surviving spouse or the spouse dies before all
8of the children of the deceased member attain the age of 18 years,
9to the surviving children, under the age of 18 years, collectively,
10an amount equal to one-half of, and derived from the same source
11as, the unmodified allowance the member would have received if
12he or she had retired for service at minimum retirement age on the
13date of death. No child shall receive any allowance after marrying
14or attaining the age of 18 years. As used in this paragraph,
15“surviving children” includes a posthumously born child or children
16of the member.

17(b) This section shall only apply to members employed in state
18bargaining units for which a memorandum of understanding has
19been agreed to by the state employer and the recognized employee
20organization to become subject to this section, members who are
21excluded from the definition of state employees in subdivision (c)
22of Section 3513, and members employed by the executive branch
23of government who are not members of the civil service.

24(c) For purposes of this section, “state service” means service
25rendered as a state employee, as defined in Section 19815. This
26section shall not apply to any contracting agency nor to the
27employees of any contracting agency.

28(d) For purposes of this section, “state service” includes service
29to the state for which the member, pursuant to Section 20281.5,
30did not receive credit.

31begin insert

begin insertSEC. 29.end insert  

end insert

begin insertSection 21547.7 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
32to read:end insert

33

21547.7.  

(a) Notwithstanding any other provision of this article
34requiring attainment of the minimum age for voluntary service
35retirement applicable to him or her in his or her last employment
36preceding death, upon the death of a local firefighter member while
37in the employ of an agency subject to this section on or after
38January 1, 2001, who is credited with 20 years or more of state
39service, the surviving spouse, or eligible children, if there is no
40eligible spouse, may receive a monthly allowance in lieu of the
P34   1basic death benefit. The board shall notify the eligible survivor,
2as defined in Section 21546, of this alternate death benefit. The
3board shall calculate the monthly allowance that shall be payable
4as follows:

5(1) To the member’s surviving spouse, an amount equal to the
6amount the member would have received if he or she had retired
7for service at the minimum retirement age on the date of death and
8had electedbegin insert theend insert optional settlementbegin delete 2end deletebegin insert in Section 21456end insert and Section
921459. The retirement allowance shall be calculated using all
10service earned by the member in this system.

11(2) If the member made a specific beneficiary designation under
12Section 21490, the monthly allowance shall be based only on that
13portion of the amount the member would have received described
14in paragraph (1) that would have been derived from the nonmember
15spouse’s community property interest in the member’s
16contributions and service credit.

17(3) If there is no surviving spouse or the spouse dies before all
18of the children of the deceased member attain the age of 18 years,
19to the surviving children, under the age of 18 years, collectively,
20an amount equal to one-half of, and derived from the same source
21as, the unmodified allowance the member would have received if
22he or she had retired for service at the minimum retirement age on
23the date of death. No child shall receive any allowance after
24marrying or attaining the age of 18 years. As used in this paragraph,
25“surviving children” includes a posthumously born child or children
26of the member. The retirement allowance shall be calculated using
27all service earned by the member in this system.

28(4) The cost of the allowance paid pursuant to this subdivision
29shall be paid from the assets of the employer at the member’s date
30of death. All member contributions made by the member to this
31system shall be transferred to the plan assets of the employer liable
32for the funding of this benefit.

33(b) (1) Upon the death of a local firefighter member while in
34the employ of an agency subject to this section on or after January
351, 2001, who is credited with 20 years or more of state service and
36who has attained the minimum age for voluntary service retirement
37applicable to him or her in his or her last employment preceding
38death, the surviving spouse may elect to receive a monthly
39allowance that is equal to the amount that member would have
40received if the member had been retired from service on the date
P35   1of death and had electedbegin insert theend insert optional settlementbegin delete 2end deletebegin insert in Section 21456end insert
2 and Section 21459 in lieu of the basic death benefit. The retirement
3allowance shall be calculated using all service earned by the
4member in this system.

5(2) If the member made a specific beneficiary designation under
6Section 21490, the monthly allowance shall be based only on that
7portion of the amount the member would have received described
8in paragraph (1) that would have been derived from the nonmember
9spouse’s community property interest in the member’s
10contributions and service credit.

11(3) If there is no surviving spouse or the spouse dies before all
12of the children of the deceased member attain the age of 18 years,
13the allowance shall continue to the surviving children, under the
14age of 18 years, collectively, in an amount equal to one-half of,
15and derived from the same source as, the unmodified allowance
16the member would have received if he or she had been retired from
17service on the date of death. No child shall receive any allowance
18after marrying or attaining the age of 18 years. As used in this
19paragraph, “surviving children” includes a posthumously born
20child or children of the member. The retirement allowance will be
21calculated using all service earned by the member in this system.

22(4) The cost of the increase in service allowance paid pursuant
23to this subdivision shall be paid from the assets of the employer
24at the member’s date of death.

25(c)  This section shall not apply to any contracting agency, nor
26to the employees of any contracting agency, unless and until the
27agency elects to be subject to this section by amendment to its
28contract made in the manner prescribed for approval of contracts,
29except that an election among the employees is not required.

30begin insert

begin insertSEC. 30.end insert  

end insert

begin insertSection 21548 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
31to read:end insert

32

21548.  

(a) The surviving spouse of a member who has attained
33the minimum age for voluntary service retirement applicable to
34the member in his or her last employment preceding death, and
35who is eligible to receive an allowance pursuant to Section 21546,
36shall instead receive an allowance that is equal to the amount that
37the member would have received if the member had been retired
38from service on the date of death and had electedbegin insert theend insert optional
39settlementbegin delete 2end deletebegin insert Section 21456end insert and Section 21459.

P36   1(b) The surviving spouse of a member who has attained the
2minimum age for voluntary service retirement applicable to the
3member in his or her last employment preceding death, and who
4is eligible to receive a special death benefit in lieu of an allowance
5under Section 21546, may elect to instead receive an allowance
6that is equal to the amount that the member would have received
7if the member had been retired from service on the date of death
8and had electedbegin insert theend insert optional settlementbegin delete 2end deletebegin insert in Section 21456end insert and
9Section 21459.

10(c) If the member made a specific beneficiary designation under
11Section 21490, the allowance under this section shall be based
12only on that portion of the amount the member would have received
13described in subdivision (a) or (b) that would have been derived
14from the nonmember spouse’s community property interest in the
15member’s contributions and service credit.

16(d) The allowance provided by this section shall be payable as
17long as the surviving spouse lives. Upon the death of the surviving
18spouse, the benefit shall be continued to minor children, as defined
19in Section 6500 of the Family Code, or a lump sum shall be paid
20as provided under circumstances specified in Section 21546 or in
21Sections 21541 and 21543, as the case may be.

22(e) The allowance provided by this section shall be paid in lieu
23of the basic death benefit, but the surviving spouse qualifying for
24the allowance may elect before the first payment on account of it
25to receive the basic death benefit in lieu of the allowance.

26(f) This section shall apply with respect to state members whose
27death occurs on and after July 1, 1976.

28(g) All references in this code to Section 21546 shall be deemed
29to include this section in the alternative.

30(h) This section shall not apply to any contracting agency nor
31to the employees of any contracting agency unless and until the
32agency elects to be subject to this section by amendment to its
33contract made in the manner prescribed for approval of contracts,
34except that an election among the employees is not required, or,
35in the case of contracts made after January 1, 1985, by express
36provision in the contract making the contracting agency subject
37to this section.

38begin insert

begin insertSEC. 31.end insert  

end insert

begin insertSection 21604 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
39to read:end insert

P37   1

21604.  

The insurance benefit shall be paid upon death of an
2insured member of this system to the beneficiary entitled to receive
3the basic or special death benefit if all of the following conditions
4occur:

5(a) Death occurs during any of the following:

6(1) While in state service.

7(2) While absent from state service on military service or on
8approved leave of absence.

9(3) Within four months of discontinuance of state service.

10(4) While physically or mentally incapacitated for performance
11of duty continuously from discontinuance of state service.

12(b) If either of the following exists:

13(1) Death occurs while a member and before the effective date
14of retirement.

15(2) Ifbegin delete anend deletebegin insert theend insert optional settlementbegin delete 2 or 3end deletebegin insert end insertbegin insert in Section 21456, 21457,
1621459, 21475, 21476, or 21477,end insert
or an optional settlementbegin delete 4end deletebegin insert in
17Section 21458,end insert
involving payment of an allowance throughout the
18life of thebegin delete beneficiaryend deletebegin insert beneficiary,end insert has not been elected and if an
19allowance under Section 21624, 21627, 21629, or 21630 is not
20payable, and death occurs on or after the effective date of
21retirement and before the mailing of a retirement allowance
22warrant.

23(c) Death occurs during a period of insurance.

24(d) Death occurs under circumstances other than those described
25in subparagraph (F) of paragraph (1) of subdivision (a) of Section
2621530.

27If this section is in conflict with the provisions of a memorandum
28of understanding reached pursuant to Section 3517.5, the
29memorandum of understanding shall be controlling without further
30legislative action, except that, if the provisions of a memorandum
31of understanding require the expenditure of funds, the provisions
32shall not become effective unless approved by the Legislature in
33the annual Budget Act.

34begin insert

begin insertSEC. 32.end insert  

end insert

begin insertSection 21625 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
35to read:end insert

36

21625.  

Notwithstanding any other provision of this part, upon
37the member’s election to be subject to Sectionbegin delete 21460,end deletebegin insert 21460 or
3821478,end insert
the benefits provided by Section 21624, 21626, 21627,
3921628, 21629, or 21630, as applicable, shall be payable only to
40the member’s eligible surviving spouse and for his or her lifetime.
P38   1The benefit shall not cease upon the remarriage of the surviving
2spouse.

3begin insert

begin insertSEC. 33.end insert  

end insert

begin insertSection 21628 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
4to read:end insert

5

21628.  

The allowance provided by Section 21624 shall be paid
6with respect to a local miscellaneous or local safety member whose
7retirement was effective prior to his or her employer’s election to
8be subject to the section with respect to employees in his or her
9employment, if at retirement he or she did not electbegin insert theend insert optional
10settlementbegin delete 2 or 3end deletebegin insert in Section 21456, 21457, 21459, 21475, 21476,
11or 21477end insert
or an optional settlement involving life contingencybegin delete under
12optional settlement 4.end delete
begin insert in Section 21458.end insert The retirement allowance
13payable to a retired member who elected any of these optional
14settlements, or to a beneficiary of a retired member, shall be
15increased by 15 percent, for time on and after the operative date
16and prior to the next annual adjustment under Article 3
17(commencing with Section 21310 ) of Chapter 13 and the base
18allowance shall be increased by 15 percent for purpose of that and
19all subsequent annual adjustments. The amount payable to the
20beneficiary under the optional settlement shall be increased by the
21same percentage and in the same manner as the increase provided
22for the payment to the member.

23The increased allowance provided by this section shall not be
24payable to a beneficiary who is receiving an allowance pursuant
25to this article or Article 4 (commencing with Section 21350) of
26Chapter 13 on September 29, 1980, until the employer of the retired
27member elects to be subject to this section as so amended by
28amendment to its contract made in the manner prescribed for
29approval of contracts, except that an election among employees
30shall not be required. In the case of contracts made on or after
31September 29, 1980, the operative date of Section 21624, for
32purposes of application of that section to local members, shall be
33the effective date of the contract or contract amendment.

34begin insert

begin insertSEC. 34.end insert  

end insert

begin insertSection 21629 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
35to read:end insert

36

21629.  

Upon the death, after the effective date of retirement,
37of a state miscellaneous member none of whose service rendered
38in state employment has been included in the federal system and
39whose retirement is effective on or after July 1, 1974, or of a school
40member or school safety member none of whose service rendered
P39   1in school service or school safety service has been included in the
2federal system and whose retirement is effective on or after July
31, 1983, a monthly allowance derived from employer contributions
4equal to 50 percent of the amount of his or her retirement allowance
5as it was at his or her death and based on service credited to him
6or her as a member subject to this section but excluding any portion
7of the retirement allowance derived from additional contributions
8of the member shall be paid to the surviving spouse throughout
9life. If there is no surviving spouse, or upon the death of the
10surviving spouse, the allowance shall be paid collectively to every
11unmarried child of the deceased member who has not attained age
1218, or who is disabled by a condition which disabled that child
13prior to attaining age 18 and which has continued without
14interruption after age 18, until the disability ceases. If at the time
15of the retired member’s death there is no eligible surviving spouse
16or children, the allowance shall be paid to a parent, or collectively
17to parents, of the deceased member dependent upon him or her for
18support. If on the effective date of retirement there is a person who
19will be eligible if the person survives, the member’s election of
20an optional settlement other thanbegin insert theend insert optional settlementbegin delete 1end delete
21begin insert settlement in Section 21455 or 21474end insert shall apply only to a portion
22of his or her allowance as provided in Sectionbegin delete 21451 with respect
23to allowances under Section 21624.end delete
begin insert end insertbegin insert21451 or 21471.1.end insert If on the
24effective date of his or her retirement the member has no surviving
25spouse, eligible children, or dependent parents and elected an
26optional settlement, no allowance under this section shall be paid.

27“Surviving spouse,” for purposes of service retirement subject
28to this section, means a husband or wife who was married to the
29member for a continuous period beginning at least one year prior
30to his or her retirement and ending on the date of his or her death
31and, for purposes of disability retirement subject to this section
32where the member retired on or after January 1, 1995, means a
33husband or wife who was married to the member on the date of
34his or her retirement and continuously to the date of his or her
35death.

36begin insert

begin insertSEC. 35.end insert  

end insert

begin insertSection 21630 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
37to read:end insert

38

21630.  

Upon death after the effective date of retirement of a
39state miscellaneous member some of whose service rendered in
40state employment has been included in the federal system and
P40   1whose retirement is effective on or after July 1, 1975, or of a school
2member or school safety member some of whose service rendered
3in school employment has been included in the federal system and
4whose retirement is effective on or after July 1, 1983, a monthly
5allowance, derived from employer contributions, equal to a
6percentage of the amount of his or her retirement allowance as it
7was at his or her death based on service credited to him or her as
8a member subject to this section but excluding any portion of the
9retirement allowance derived from additional contributions of the
10member shall be paid to the surviving spouse throughout life. The
11percentage shall be 25 percent for an allowance based on service
12that was also covered under the federal system and 50 percent for
13an allowance based on any other service, except that the percentage
14shall be 50 percent for the allowance of a member whose service
15was subject to Section 21076 or 21077 and who had become a
16member prior to November 1, 1988. If there is no surviving spouse,
17or upon the death of the surviving spouse, the allowance shall be
18paid collectively to every unmarried child of the deceased member
19who has not attained age 18, or who is disabled by a condition that
20disabled that child prior to attaining age 18 and that has continued
21without interruption after age 18, until the disability ceases. If at
22the time of the retired member’s death there is no eligible surviving
23spouse or children, the allowance shall be paid to a parent, or
24collectively to parents, of the deceased member dependent upon
25him or her for support. If on the effective date of retirement there
26is a person who will be eligible if the person survives, the
27member’s election of an optional settlement, other thanbegin insert theend insert optional
28settlementbegin delete 1,end deletebegin insert in Section 21455 or 21474,end insert shall apply only to a
29portion of the allowance as provided in Sectionbegin delete 21451 with respect
30to allowances under Section 21624.end delete
begin insert 21451 or 21471.1.end insert If on the
31effective date of his or her retirement the member has no surviving
32spouse, eligible children, or dependent parents and elected an
33optional settlement, no allowance under this section shall be paid.

34“Surviving spouse,” for purposes of service retirement subject
35to this section, means a husband or wife who was married to the
36member for a continuous period beginning at least one year prior
37to his or her retirement and ending on the date of his or her death
38and, for purposes of disability retirement subject to this section
39where the member retired on or after January 1, 1995, means a
40husband or wife who was married to the member on the date of
P41   1his or her retirement and continuously to the date of his or her
2death.

3begin insert

begin insertSEC. 36.end insert  

end insert

begin insertSection 21631 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
4to read:end insert

5

21631.  

(a) The monthly allowance provided by Sections 21629
6and 21630 shall be paid on account of retired school members who
7did not at retirement electbegin insert theend insert optional settlementbegin delete 2 or 3end deletebegin insert in Section
821456, 21457, 21459, 21475, 21476, or 21477end insert
or an optional
9settlement involving life contingencybegin delete under optional settlement 4.end delete
10
begin insert in Section 21458.end insert

11(b) Upon receipt of a written application for benefits at the office
12of the board, the benefits provided by this section shall be payable
13to eligible survivors of retired school members who are not
14receiving a monthly allowance on account of miscellaneous service
15as a state member.

16(c) When there are no records in the board’s possession that
17contain necessary data for determining the retirement benefit
18claimed, the applicant or applicants for the benefit shall be required
19to establish entitlement to the benefit upon evidence satisfactory
20to the board. That data, at a minimum, shall be sufficient to
21establish the date of the retired member’s death and the amount
22of the retired member’s monthly allowance payable at the time of
23his or her death. The net benefit payable to the retired school
24member at the date of death may be determined by the board on
25 the basis of the evidence submitted or upon other evidence if that
26evidence allows the board to determine the unmodified allowance
27payable on the date of death. The board shall use available
28evidence, whether from information provided by the applicant,
29partial records in possession of the board, or from other sources,
30as the basis for assumptions that are necessary in order to calculate
31the allowance payable to the eligible survivor or survivors.

32(d) The benefits provided by this section shall be subject to the
33same eligibility and termination provisions that apply to members
34at their retirement and shall be paid commencing on the first day
35of the month succeeding the month in which the application for
36the benefits of this section is received by the board.

37(e) The board has no duty to identify, locate, or notify any
38survivor of a retired school member who may potentially be eligible
39for the benefits of this section. The board has no duty to provide
40the name or address of any potential survivor to any person,
P42   1agency, or entity for the purpose of notifying survivors who may
2potentially be eligible for the benefits of this section.

3(f) The cost of the additional benefits provided pursuant to the
4trial court decision in California State Employees Association, et
5al. v. Board of Administration of the Public Employees’ Retirement
6System et al. (Sacramento County Superior Court, Case No.
7332315) shall be paid out of the reserve against deficiencies
8established by Section 20174.

9begin insert

begin insertSEC. 37.end insert  

end insert

begin insertSection 21632 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
10to read:end insert

11

21632.  

(a) The monthly allowances provided by Sections
1221629 and 21630 shall be paid on account of retired state
13miscellaneous members who did not at retirement electbegin insert theend insert optional
14settlementbegin delete 2 or 3end deletebegin insert in Section 21456, 21457, or 21459,end insert or an optional
15settlement involving life contingencybegin delete under optional settlement 4end delete
16begin insert in Section 21458,end insert and whose retirement dates were effective before
17July 1, 1974, with respect to members who were not covered by
18the federal system, and before July 1, 1975, with respect to
19members who were covered under the federal system. Upon receipt
20of a written application by the board, the benefits provided by this
21section shall be payable to eligible survivors of retired members
22who are not receiving a monthly allowance on account of
23miscellaneous service as a state member. However, if, on the date
24the application is received by the board, there is no longer in
25existence a record in the board’s possession setting forth the
26retirement data relating to the retired member, the applicant
27survivor or survivors of the retired member shall be required, as
28a condition precedent to his or her entitlement to the benefit
29provided by this section, to furnish documentary evidence
30satisfactory to the board to enable it to determine the date of the
31retired member’s death and the amount of the member’s allowance
32that was currently payable at the time of death. The net benefit
33payable to the retired member at the time of death shall be
34determined on the basis of the evidence submitted, unless the board
35is able to determine the unmodified allowance payable at the time
36of death. If the allowance payable to an eligible survivor is based
37on evidence furnished by the survivor or partial member records
38in the board’s possession, or both, the board shall use that
39information to assume any additional factors required to calculate
40the allowance payable. The benefits shall be subject to the same
P43   1eligibility and termination provisions that apply to members at
2retirement and shall, subject to subdivision (b), be paid only for
3the period of time commencing on the first of the month following
4receipt by the board of the application for the benefits. The board
5has no duty to locate or notify any potential survivor or to provide
6the name or address of any potential survivor to any person,
7agency, or entity for the purpose of notifying survivors.

8(b) Upon receipt of a written application pursuant to subdivision
9(a), the benefits provided by this section shall be paid both
10prospectively and retroactively for the period of time commencing
11with the first day of the month following receipt of the application.

12(c) The payment of benefits pursuant to this section, as amended
13by Chapter 788 of the Statutes of 1984, shall commence no sooner
14than January 1, 1985.

15begin insert

begin insertSEC. 38.end insert  

end insert

begin insertSection 21633 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
16to read:end insert

17

21633.  

The monthly allowance provided by Section 21624
18shall be paid on account of patrol and state safety members retired
19for nonindustrial disability with effective dates of retirement prior
20to April 1, 1972, and who did not at retirement electbegin insert theend insert optional
21settlementbegin delete 2 or 3end deletebegin insert in Section 21456, 21457, or 21459end insert or an optional
22settlement involving life contingencybegin delete under optional settlement 4.end delete
23begin insert in Section 21458.end insert Upon receipt of a written application by the
24board, the benefits provided by this section shall also be payable
25to eligible survivors of retired members who are not receiving a
26monthly allowance on account of service as a patrol or state safety
27member if the retired member was alive and receiving a monthly
28allowance on June 30, 1974. The benefits shall be subject to the
29same eligibility and termination provisions that apply to members
30at retirement and shall be paid only for the period of time
31commencing on the first of the month following receipt by the
32board of the application for those benefits.

33begin insert

begin insertSEC. 39.end insert  

end insert

begin insertSection 21752 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
34to read:end insert

35

21752.  

(a) (1) In accordance with Section 21756, a member’s
36annual retirement benefits, adjusted to the actuarial equivalent of
37a straight-life annuity if payable in a form other than a straight-life
38annuity or a qualified joint and survivor annuity as provided under
39Sectionbegin delete 21460,end deletebegin insert 21460 or 21478end insert and determined without regard to
40any employee contributions or rollover contributions, as defined
P44   1in Sections 402(a)(5), 403(a)(4), and 408(d)(3) of Title 26 of the
2United States Code, otherwise payable to the member under Part
33 (commencing with Section 20000) and under any other defined
4benefit plan maintained by the employer that is subject to Section
5415 of Title 26 of the United States Code, shall not exceed, in the
6aggregate, the dollar limit applicable pursuant to Section
7415(b)(1)(A) of Title 26 of the United States Code, as appropriately
8modified by Section 415(b)(2)(F) and (G) of Title 26 of the United
9States Code.

10(2) A member who receives benefits based on credited service
11with multiple employers shall not exceed the limitations set forth
12in this subdivision with regard to his or her annual retirement
13benefits.

14(3) However, the annual retirement benefit payable to a member
15shall be deemed not to exceed the limitations prescribed in
16paragraph (1) if the benefit does not exceed ten thousand dollars
17($10,000) and the member has at no time participated in a tax
18qualified defined contribution plan maintained by the employer.

19(b) These limitations shall be applied pursuant to Section
20415(b)(10) of Title 26 of the United States Code.

21(c) Part 3 (commencing with Section 20000) shall be construed
22as if it included this section.

23begin insert

begin insertSEC. 40.end insert  

end insert

begin insertSection 75070 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
24to read:end insert

25

75070.  

In lieu ofbegin delete the retirementend deletebegin insert electing the unmodifiedend insert
26 allowance for his or her life alone, a judge maybegin delete elect, or revoke or
27change a previous election prior to the approval of the previous
28election,end delete
begin insert electend insert to have the actuarial equivalent of his or her
29retirement allowance as of the date of retirement applied to a lesser
30retirement allowance, in accordance with one of the optional
31settlements specified in Sectionbegin delete 75071.end deletebegin insert 75071 when the judge
32retires on or before December 31, 2017, or Section 75071.5 when
33the judge retires on or after January 1, 2018.end insert

34That election, revocation, or change of election shall be made
35by a writing filed with the Judges’ Retirement System within 30
36calendar days after the making of the first payment on account of
37any retirement allowance.

begin insert

38
If a person qualifies for the survivor allowance under Section
3975077 or 75096.3, then the election with respect to any optional
40settlement other than the optional settlement in subdivision (a) of
P45   1Section 75071 or subdivision (b) of Section 75071.5, shall apply
2only to the portion of the retirement allowance that exceeds the
3amount of the allowance deemed payable to the survivor.

end insert
4begin insert

begin insertSEC. 41.end insert  

end insert

begin insertSection 75071 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
5to read:end insert

6

75071.  

begin delete(a)end deletebegin deleteend deletebegin insertThis section shall apply to any judge who retires
7on or before December 31, 2017.end insert

8begin insert(a)end insertbegin insertend insert Optional settlement one consists of the right to have a
9retirement allowance paid to the judge for life and if he or she dies
10before receiving the amount of his or her accumulated contributions
11at retirement, to have the balance at death paid to his or her
12designated beneficiary or, if no beneficiary designation is in effect
13on the date of death, to his or her estate.

14(b) (1) Optional settlement two consists of the right to have a
15retirement allowance paid to him or her for life and thereafter to
16his or her designated beneficiary for life.

17(2) If the judge’s designated beneficiary predeceases the judge
18and the judge elected this optional settlement to be effective on or
19after January 1, 2002, the judge’s allowance shall be adjusted
20effective the first day of the month following the death of the
21beneficiary to reflect the benefit that would have been paid had
22the judge not elected an optional settlement.

23(3) If the marriage of a retired judge is dissolved or annulled or
24if the retired judge and his or her beneficiary spouse are legally
25separated and the judgment dividing their community property
26awards the total interest in this system to the retired judge, and the
27retired judge elected this optional settlement to be effective on or
28after January 1, 2002, the retired judge’s allowance shall be
29adjusted effective the first day of the month following the filing
30of the judgment with the board to reflect the benefit that would
31have been paid had the judge not elected an optional settlement.

32(c) (1) Optional settlement three consists of the right to have a
33retirement allowance paid him or her for life, and thereafter to
34have one-half of his or her retirement allowance paid to his or her
35designated beneficiary for life.

36(2) If the judge’s designated beneficiary predeceases the judge
37and the judge elected this optional settlement to be effective on or
38after January 1, 2002, the judge’s allowance shall be adjusted
39effective the first day of the month following the death of the
P46   1beneficiary to reflect the benefit that would have been paid had
2the judge not elected an optional settlement.

3(3) If the marriage of a retired judge is dissolved or annulled or
4if the retired judge and his or her beneficiary spouse are legally
5separated and the judgment dividing their community property
6awards the total interest in this system to the retired judge, and the
7retired judge elected this optional settlement to be effective on or
8after January 1, 2002, the retired judge’s allowance shall be
9adjusted effective the first day of the month following the filing
10of the judgment with the board to reflect the benefit that would
11 have been paid had the judge not elected an optional settlement.

12(d) Optional settlement four consists of other benefits that are
13the actuarial equivalent of his or her retirement allowance, that he
14or she may select subject to the approval of the Judges’ Retirement
15System.

16(e) When a judge elects, on or after January 1, 2003, to receive
17benefits provided by paragraph (2) of subdivision (b) or paragraph
18(2) of subdivision (c), and the judge and his or her optional
19settlement beneficiary both die before receiving in annuity
20payments the full amount of the judge’s accumulated contributions
21at retirement, the balance of the judge’s accumulated contributions
22shall be paid to the beneficiary designated by the judge. If the
23judge had no designated beneficiary in effect on the date of death,
24payment shall be made to the judge’s estate.

25begin insert

begin insertSEC. 42.end insert  

end insert

begin insertSection 75071.5 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
26to read:end insert

begin insert
27

begin insert75071.5.end insert  

This section shall apply to any judge who retires on
28or after January 1, 2018.

29
(a) The unmodified allowance consists of the right to have the
30maximum retirement allowance paid to the judge for his or her
31life alone. A continuing allowance to a beneficiary is not provided
32or there is not a return of unused accumulated contributions after
33the death of the judge.

34
(b) The Return of Remaining Contributions Option 1 consists
35of the right to have a retirement allowance paid to the judge until
36his or her death and, if he or she dies before he or she receives in
37annuity payments the amount of his or her accumulated
38contributions at retirement, to have the balance at death paid to
39his or her designated beneficiary or estate.

P47   1
(c) (1) The 100 Percent Beneficiary Option 2 consists of the
2right to have a retirement allowance paid to the judge until his or
3her death, and thereafter to have the same monthly allowance paid
4to his or her designated beneficiary for life, provided that, with
5respect to a judge subject to Section 75077 or 75096.3 at
6retirement, the beneficiary shall receive a monthly allowance equal
7to that portion of the judge’s monthly allowance that exceeds the
8amount of the allowance deemed payable to the judge’s survivor.

9
(2) Upon the death of both the judge and the designated
10beneficiary, any remaining balance of the judge’s accumulated
11contributions at retirement not used to fund the allowances paid
12to the judge and the designated beneficiary will be paid in a lump
13sum to the secondary beneficiary or beneficiaries designated by
14the judge.

15
(d) (1) The 50 Percent Beneficiary Option 3 consists of the
16right to have a retirement allowance paid to the judge until his or
17her death, and thereafter to have one-half of the monthly allowance
18paid to his or her designated beneficiary for life, provided that,
19with respect to a judge subject to Section 75077 or 75096.3 at
20retirement, the beneficiary shall receive a monthly allowance equal
21to one-half of that portion of the judge’s allowance that exceeds
22the amount of the allowance deemed payable to the judge’s
23survivor.

24
(2) Upon the death of both the judge and the designated
25beneficiary, any remaining balance of the judge’s accumulated
26contributions at retirement not used to fund the allowances paid
27to the judge and the designated beneficiary will be paid in a lump
28sum to the secondary beneficiary or beneficiaries designated by
29the judge.

30
(e) The Flexible Beneficiary Option 4 consists of the right to
31have a retirement allowance paid to a judge until his or her death,
32and thereafter to have a monthly allowance paid to his or her
33designated beneficiary or beneficiaries for life. However, the
34actuarial equivalent of benefits under this optional settlement
35payable to the judge’s beneficiary or beneficiaries shall not exceed
36the actuarial equivalent of the benefits that would be payable to
37that beneficiary or beneficiaries if the judge had elected the
38optional settlement found in subdivision (c). The judge may select
39the monthly allowance payable to the designated beneficiary or
40beneficiaries from the options below.

P48   1
(1) “Specific Dollar Amount to a Beneficiary or Beneficiaries,”
2pursuant to which the judge may specify that upon his or her death
3after retirement, a monthly allowance in an amount determined
4by the judge be paid to a designated beneficiary or beneficiaries
5for life.

6
(2) “Specific Percentage to a Beneficiary or Beneficiaries,”
7pursuant to which the judge may specify that upon his or her death
8after retirement, a monthly allowance in an amount equivalent to
9a specified percentage of the judge’s unmodified allowance be
10paid to a designated beneficiary or beneficiaries for life.

end insert
11begin insert

begin insertSEC. 43.end insert  

end insert

begin insertSection 75073 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
12to read:end insert

13

75073.  

A judge who elects to receive optional settlement two
14or threebegin insert in Section 75071end insert may concurrently and irrevocably elect
15to waive the provision for an increase to his or her allowance, as
16specified in subdivisions (b) and (c) of Section 75071, and shall,
17instead, have his or her allowance based upon the waiver of this
18benefit.

begin insert

19
This section shall apply to any judge who retires on or before
20December 31, 2017.

end insert
21begin insert

begin insertSEC. 44.end insert  

end insert

begin insertSection 75094 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
22to read:end insert

23

75094.  

(a) Notwithstanding any other provision of this article
24to the contrary, the surviving spouse of a judge shall receive an
25allowance that is equal to the amount that the judge would have
26received had the judge been retired from service on the date of his
27or her death and had electedbegin insert theend insert optional settlementbegin delete 2end delete specified in
28subdivision (b) of Sectionbegin delete 75071,end deletebegin insert 75071 and 75073,end insert if all of the
29following apply to the judge:

30(1) The judge died in office on or after January 1, 2005.

31(2) The judge had attained the minimum age for service
32retirement applicable to the judge preceding his or her death, with
33a minimum of 20 years of service.

34(3) The judge was eligible to receive an allowance pursuant to
35Section 75025 or 75033.5.

36(b) A surviving spouse receiving an allowance pursuant to this
37section shall have no other claim to benefits with respect to the
38Judges’ Retirement Fund or with respect to any other provision of
39the Judges’ Retirement Law.

P49   1(c) The benefits provided by this section are only payable to the
2surviving spouse of a judge who elects to come within this section.
3Notwithstanding Section 75090, that election may be made at any
4time while the judge is in office and, once made, the election is
5irrevocable.

6(d) This section does not prevent a surviving spouse from
7claiming or receiving any payments to which he or she may be
8entitled as a beneficiary under the Extended Service Incentive
9Program set forth in Article 4.5 (commencing with Section 75085).

10begin insert

begin insertSEC. 45.end insert  

end insert

begin insertSection 75522 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
11to read:end insert

12

75522.  

(a) A judge is eligible to retire pursuant to this section
13upon attaining both 65 years of age and 20 or more years of service,
14or upon attaining 70 years of age with a minimum of five years of
15service.

16(b) The office of a judge who retires under this section becomes
17vacant on the date of the retirement.

18(c) A judge who retires pursuant to this section shall, within 30
19days after the effective date of the retirement, elect to receive either
20the benefits provided by subdivision (d) or the benefits provided
21by subdivision (e). Under rules adopted by the board, the time for
22the election may be extended in cases of illness or other hardship,
23but once made, the election shall be final and irrevocable.

24(d) The judge may elect to receive for life a monthly retirement
25allowance equal to the benefit factor multiplied by the judge’s
26final compensation multiplied by the number of years of service
27credit.

28(1) The benefit factor for a judge eligible to retire pursuant to
29this section equals 3.75 percent per year of service.

30(2) In no event shall the retirement allowance at the time of
31retirement exceed 75 percent of the judge’s final compensation.

32(e) The judge may elect to receive the amount of his or her
33monetary credits determined pursuant to Section 75520, including
34the credits added under subdivision (b) of that section computed
35to the last day of the month preceding the date of distribution.
36Under rules adopted by the board, the judge may elect to receive
37that amount in a single payment, or may direct that it be paid in
38an annuity of actuarially equivalent value for the judge’s life or in
39one of the optional forms provided for in Sectionbegin delete 75571.end deletebegin insert 75571 if
P50   1the judge retires on or before December 31, 2017, or Section
275571.5 if the judge retires on or after January 1, 2018.end insert

3(f) If a retired judge fails or refuses to make an election pursuant
4to subdivision (c) within the time allowed, he or she shall be
5deemed to have elected to receive a monthly retirement allowance
6under subdivision (d).

7begin insert

begin insertSEC. 46.end insert  

end insert

begin insertSection 75570 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
8to read:end insert

9

75570.  

(a) In lieu ofbegin delete the retirementend deletebegin insert electing the unmodifiedend insert
10 allowance under subdivision (d) of Section 75522 for his or her
11life alone, a judge who elects to retire with a monthly allowance
12under subdivision (d) of Section 75522 maybegin delete elect, or revoke or
13change a previous election prior to the approval of the previous
14election,end delete
begin insert electend insert to have the actuarial equivalent of his or her
15retirement allowance as of the date of retirement applied to a lesser
16 retirement allowance, in accordance with one of the optional
17settlements specified in Sectionbegin delete 75571.end deletebegin insert 75571 if the judge retires
18on or before December 31, 2017, or Section 75571.5 if the judge
19retires on or after January 1, 2018.end insert

20(b) That election, revocation, or change of election shall be
21made by a writing filed with the system within 30 calendar days
22after the making of the first payment on account of any retirement
23allowance.

begin insert

24
(c) If there is a spouse who would qualify for the survivor
25allowance under subdivision (b) of Section 75590, then the election,
26with respect to any optional settlement other than the optional
27settlement in subdivision (a) of Section 75571 or subdivision (b)
28of Section 75571.5, shall apply only to the portion of the retirement
29allowance that exceeds the amount of the allowance deemed
30payable to the surviving spouse.

end insert
31begin insert

begin insertSEC. 47.end insert  

end insert

begin insertSection 75571 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
32to read:end insert

33

75571.  

begin delete(a)end deletebegin deleteend deletebegin insertThis section shall apply to any judge who retires
34on or before December 31, 2017.end insert

35begin insert(a)end insertbegin insertend insert Optional settlement one consists of the right to have a
36retirement allowance paidbegin delete him or herend deletebegin insert to the judgeend insert until his or her
37death and if he or she dies before he or she receives the amount
38of his or her accumulated contributions at retirement, to have the
39balance at death paid to his or her surviving spouse or estate.

P51   1(b) (1) Optional settlement two consists of the right to have a
2retirement allowance paidbegin delete him or herend deletebegin insert to the judgeend insert until his or her
3death and thereafter to his or her surviving spouse for life.

4(2) If the judge’s spouse predeceases the judge and the judge
5elected this optional settlement to be effective on or after January
61, 2002, the judge’s allowance shall be adjusted effective the first
7day of the month following the death of the spouse to reflect the
8benefit that would have been paid had the judge not elected an
9optional settlement.

10(3) If the marriage of a retired judge is dissolved or annulled or
11if the retired judge and his or her spouse are legally separated and
12the judgment dividing their community property awards the total
13interest in this system to the retired judge, and the retired judge
14elected this optional settlement to be effective on or after January
151, 2002, the retired judge’s allowance shall be adjusted effective
16the first day of the month following the filing of the judgment with
17the board to reflect the benefit that would have been paid had the
18judge not elected an optional settlement.

19(c) (1) Optional settlement three consists of the right to have a
20retirement allowance paidbegin delete him or herend deletebegin insert to the judgeend insert until his or her
21death, and thereafter to have one-half of his or her retirement
22allowance paid to his or her surviving spouse for life.

23(2) If the judge’s spouse predeceases the judge and the judge
24elected this optional settlement to be effective on or after January
251, 2002, the judge’s allowance shall be adjusted effective the first
26day of the month following the death of the spouse to reflect the
27benefit that would have been paid had the judge not elected an
28optional settlement.

29(3) If the marriage of a retired judge is dissolved or annulled or
30if the retired judge and his or her spouse are legally separated and
31the judgment dividing their community property awards the total
32interest in this system to the retired judge, and the retired judge
33elected this optional settlement to be effective on or after January
341, 2002, the retired judge’s allowance shall be adjusted effective
35the first day of the month following the filing of the judgment with
36the board to reflect the benefit that would have been paid had the
37judge not elected an optional settlement.

38(d) Optional settlement four consists of other benefits that are
39the actuarial equivalent of his or her retirement allowance, that he
40or she may select subject to the approval of the board.

P52   1begin insert

begin insertSEC. 48.end insert  

end insert

begin insertSection 75571.5 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
2to read:end insert

begin insert
3

begin insert75571.5.end insert  

This section shall apply to any judge who retires on
4or after January 1, 2018.

5
(a) The unmodified allowance consists of the right to have the
6maximum retirement allowance paid to the judge for his or her
7life alone. A continuing allowance to the surviving spouse, other
8than the benefit provided in subdivision (b) of Section 75590, is
9not provided and there is not a return of unused accumulated
10contributions after the death of the judge.

11
(b) The Return of Remaining Contributions Option 1 consists
12of the right to have a retirement allowance paid to the judge for
13his or her life alone and if he or she dies before he or she receives
14in annuity payments the amount of his or her accumulated
15contributions at retirement, to have the balance at death paid to
16his or her surviving spouse, or if none, to his or her estate.

17
(c) (1) The 100 Percent Beneficiary Option 2 consists of the
18right to have a retirement allowance paid to the judge until his or
19her death, and thereafter to have the same monthly allowance paid
20to his or her surviving spouse for life, provided that, with respect
21to a judge subject to subdivision (b) of Section 75590, the surviving
22spouse shall receive that portion of the judge’s monthly allowance
23that exceeds the amount of the allowance deemed payable pursuant
24to subdivision (b) of Section 75590.

25
(2) Upon the death of both the judge and the surviving spouse,
26any remaining balance of the judge’s accumulated contributions
27at retirement not used to fund the allowances paid to the judge
28and the surviving spouse pursuant to this subdivision will be paid
29in a lump sum to the estate of the deceased.

30
(d) (1) The 50 Percent Beneficiary Option 3 consists of the
31right to have a retirement allowance paid to the judge until his or
32her death, and thereafter to have one-half of the monthly allowance
33paid to his or her surviving spouse for life, provided that, with
34respect to a judge subject to subdivision (b) of Section 75590, the
35surviving spouse shall receive one-half of that portion of the
36judge’s monthly allowance that exceeds the amount of the
37allowance deemed payable pursuant to subdivision (b) Section
3875590.

39
(2) Upon the death of both the judge and the surviving spouse,
40any remaining balance of the judge’s accumulated contributions
P53   1at retirement not used to fund the allowances paid to the judge
2and the surviving spouse pursuant to this subdivision will be paid
3in a lump sum to the estate of the deceased.

4
(e) The Flexible Beneficiary Option 4 consists of the right to
5have a retirement allowance paid to a judge until his or her death,
6and thereafter to have a monthly allowance paid to his or her
7surviving spouse for life. However, the actuarial equivalent of
8benefits under this optional settlement payable to the judge’s
9surviving spouse shall not exceed the actuarial equivalent of the
10benefits which would be payable to the surviving spouse if the
11judge had elected the optional settlement found in subdivision (c).
12The judge may select the monthly allowance payable to the
13surviving spouse from the options below.

14
(3) “Specific Dollar Amount to a Surviving Spouse,” pursuant
15to which the judge may specify that upon his or her death after
16retirement, a monthly allowance in an amount determined by the
17judge be paid to his or her surviving spouse for life.

18
(4) “Specific Percentage to a Surviving Spouse,” pursuant to
19which the judge may specify that upon his or her death after
20retirement, a monthly allowance in an amount equivalent to a
21specified percentage of the judge’s unmodified allowance be paid
22to his or her surviving spouse for life.

end insert
23begin insert

begin insertSEC. 49.end insert  

end insert

begin insertSection 75573 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
24to read:end insert

25

75573.  

A judge who elects to receive optional settlement two
26or threebegin insert in Section 75571end insert may concurrently and irrevocably elect
27to waive the provision for an increase to his or her allowance, as
28specified in subdivisions (b) and (c) of Section 75571, and shall,
29instead, have his or her allowance based upon the waiver of this
30benefit.

begin insert

31
This section shall apply to any judge who retires on or before
32December 31, 2017.

end insert
33begin insert

begin insertSEC. 50.end insert  

end insert

begin insertSection 75590 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
34to read:end insert

35

75590.  

(a) A surviving spouse of a judge who was eligible to
36retire pursuant to subdivision (a) of Section 75522 shall, within
3790 days after the judge’s death, elect to receive either of the
38following:

39(1) A monthly retirement allowance equal to one-half of the
40judge’s benefit factor computed as stated in subdivision (d) of
P54   1Section 75522 as of the date of death, multiplied by the judge’s
2final compensation multiplied by the number of years of service
3credit. This allowance shall be adjusted for changes in the cost of
4living as provided in Section 75523.

5(2) The judge’s monetary credits determined pursuant to Section
675520, including the credits added under subdivision (b) of that
7section computed to the last day of the month preceding the date
8of distribution.

9(b) A surviving spouse of a retired judge who elected to receive
10a monthly allowance under subdivision (d) of Section 75522 or
11who was retired for disability and receiving an allowance under
12Section 75560.4 shall receive a monthly allowance equal to 50
13percent of the deceased judge’s last monthly retirement allowance.
14This allowance shall be adjusted for changes in the cost of living
15as provided in Section 75523.

16(c) (1) Notwithstanding any other provision of this article to
17the contrary, the surviving spouse of a judge who (A) died in office,
18(B) had attained the minimum age for service retirement applicable
19to the judge preceding his or her death, with a minimum of 20
20years of service, and (C) was eligible to receive an allowance
21pursuant to Section 75522, shall receive an allowance that is equal
22to the amount that the judge would have received if the judge had
23been retired from service on the date of death and had electedbegin insert theend insert
24 optional settlementbegin delete 2end delete specified in subdivision (b) of Sectionbegin delete 75571.end delete
25
begin insert 75571 and in Section 75573.end insert

26(2) A surviving spouse receiving an allowance pursuant to this
27subdivision shall have no other claim to benefits with respect to
28the Judges’ Retirement Fund or with respect to any other provision
29of the Judges’ Retirement System II Law.

30(3) The benefits provided by this subdivision are only payable
31to the surviving spouse of a judge who elects to come within this
32subdivision. That election may be made at any time while the judge
33is in office and, once made, the election is irrevocable.

34(d) A monthly allowance payable to a surviving spouse pursuant
35to this section is payable commencing upon the death of the judge
36and continuing until the death of the surviving spouse.

begin delete
37

SECTION 1.  

Section 21456 of the Government Code is
38amended to read:

P55   1

21456.  

Optional settlement 2 consists of the right to have a
2retirement allowance paid a member until his or her death and
3thereafter to his or her beneficiary for life.

4If the beneficiary predeceases the member and the member
5elected this section to be effective on or after January 1, 1990, the
6member’s allowance shall be adjusted effective the first of the
7month following the death of the beneficiary, to reflect the benefit
8that would have been paid had the member not selected an optional
9settlement.

10If a nonspouse beneficiary waives entitlement to this allowance
11and the member elected this section to be effective on or after
12January 1, 1993, the member’s allowance shall be adjusted effective
13the first of the month following the receipt of the waiver of the
14allowance entitlement from the nonspouse beneficiary to reflect
15the benefit that would have been paid had the member not selected
16an optional settlement.

17If the marriage of a member is dissolved or annulled or there is
18a legal separation between the member and the beneficiary spouse
19and the judgment dividing the community property awards the
20total interest in this system to the member, and the member elects
21this section to be effective on or after January 1, 1994, the
22member’s allowance shall be adjusted effective the first of the
23month following the filing of the judgment with the board to reflect
24the benefit that would have been paid had the member not selected
25an optional settlement.

26If the beneficiary spouse predeceases the member on or after
27January 1, 1990, and the member elected this section to be effective
28prior to January 1, 1990, the member’s allowance shall be adjusted
29effective the first of the month following the death of the
30beneficiary spouse to reflect a new allowance as calculated below.

31If the nonspouse beneficiary waives entitlement to this allowance
32on or after January 1, 1993, and the member elected this section
33to be effective prior to January 1, 1993, the member’s allowance
34shall be adjusted, effective the first of the month following receipt
35by the board of the waiver of entitlement from the nonspouse
36beneficiary, to reflect a new allowance as calculated below.

37If the marriage of a member is dissolved or annulled or there is
38a legal separation between the member and the beneficiary spouse
39and the judgment dividing the community property awards the
40total interest in the retirement system to the member, and the
P56   1member elected this section to be effective prior to January 1,
21994, the member’s allowance shall be adjusted, effective the first
3of the month following the filing of the judgment with the board
4to reflect a new allowance as calculated below. The qualifying
5event shall be the date on which the judgment is filed with the
6board.

7A percentage factor shall be applied to the difference between
8the member’s unmodified allowance and optional settlement 2
9allowance, both of which shall include applicable cost-of-living
10increases. The product of this equation shall then be added to the
11member’s optional settlement 2 allowance and the total amount
12shall become the member’s base allowance. The percentage factor
13applicable to each member shall be determined by the time between
14the member’s retirement effective date and the date of death of
15the beneficiary spouse or by the time between the member’s
16retirement effective date and the date of the receipt of either the
17waiver of the allowance entitlement or the judgment of dissolution,
18annulment, or legal separation according to the following table:


19

 

Period between the member’s retirement
effective date and the date of the qualifying
event

Percentage

Less than 12 months

95%

12 months through 23 months

85%

24 months through 35 months

75%

36 months through 47 months

65%

48 months through 59 months

55%

60 months through 71 months

45%

72 months through 83 months

35%

84 months through 95 months

25%

96 months through 107 months

15%

108 months through 119 months

 5%

120 months or more

 0%

P56  34

 

35Nothing in this section shall result in additional cost to the
36employer.

37The right of a member to receive a recalculated allowance upon
38the death of his or her beneficiary granted pursuant to this section
39shall apply only to a member who retires on or before December
4031, 2017.

P57   1

SEC. 2.  

Section 21457 of the Government Code is amended
2to read:

3

21457.  

Optional settlement 3 consists of the right to have a
4retirement allowance paid a member until his or her death, and
5thereafter to have one-half of his or her retirement allowance paid
6to his or her beneficiary for life.

7If the beneficiary predeceases the member and the member
8elected this section to be effective on or after January 1, 1990, the
9member’s allowance shall be adjusted effective the first of the
10month following the death of the beneficiary, to reflect the benefit
11that would have been paid had the member not selected an optional
12settlement.

13If the marriage of a member is dissolved or annulled or there is
14a legal separation between the member and the beneficiary spouse
15and the judgment dividing the community property awards the
16total interest in this system to the member, and the member elects
17this section to be effective on or after January 1, 1994, the
18member’s allowance shall be adjusted effective the first of the
19month following the filing of the judgment with the board to reflect
20the benefit that would have been paid had the member not selected
21an optional settlement.

22If a nonspouse beneficiary waives entitlement to this allowance
23and the member elected this section to be effective on or after
24January 1, 1993, the member’s allowance shall be adjusted,
25effective the first of the month following the receipt of the waiver
26of the allowance entitlement from the nonspouse beneficiary, to
27reflect the benefit that would have been paid had the member not
28selected an optional settlement.

29If the beneficiary spouse predeceases the member on or after
30January 1, 1990, and the member elected this section to be effective
31prior to January 1, 1990, the member’s allowance shall be adjusted
32effective the first of the month following the death of the
33beneficiary spouse to reflect a new allowance as calculated below.

34If the marriage of a member is dissolved or annulled or there is
35a legal separation between the member and the beneficiary spouse
36and the judgment dividing the community property awards the
37total interest in the retirement system to the member, and the
38member elected this section to be effective prior to January 1,
391994, the member’s allowance shall be adjusted, effective the first
40of the month following the filing of the judgment with the board
P58   1to reflect a new allowance as calculated below. The qualifying
2event shall be the date on which the judgment is filed with the
3board.

4If the nonspouse beneficiary waives entitlement to this allowance
5on or after January 1, 1993, and the member elected this section
6to be effective prior to January 1, 1993, the member’s allowance
7shall be adjusted, effective the first of the month following receipt
8by the board of the waiver of entitlement from the nonspouse
9beneficiary, to reflect a new allowance as calculated below.

10A percentage factor shall be applied to the difference between
11the member’s unmodified allowance and optional settlement 3
12allowance, both of which shall include applicable cost-of-living
13increases. The product of this equation shall then be added to the
14member’s optional settlement 3 allowance and the total amount
15shall become the member’s base allowance. The percentage factor
16applicable to each member shall be determined by the time between
17the member’s retirement effective date and the date of death of
18the beneficiary spouse or by the time between the member’s
19retirement effective date and the date of the receipt of either the
20waiver of the allowance entitlement or the judgment of dissolution,
21annulment, or legal separation according to the following table:


22

 

Period between the member’s retirement
effective date and the date of the qualifying
event

Percentage

Less than 12 months

95%

12 months through 23 months

85%

24 months through 35 months

75%

36 months through 47 months

65%

48 months through 59 months

55%

60 months through 71 months

45%

72 months through 83 months

35%

84 months through 95 months

25%

96 months through 107 months

15%

108 months through 119 months

 5%

120 months or more

 0%

P58  37

 

38Nothing in this section shall result in additional cost to the
39employer.

P59   1The right of a member to receive a recalculated allowance upon
2the death of his or her beneficiary granted pursuant to this section
3shall apply only to a member who retires on or before December
431, 2017.

5

SEC. 3.  

Section 21459 of the Government Code is amended
6to read:

7

21459.  

(a) A member who elects to receive optional settlement
82 or 3 may concurrently and irrevocably elect to waive the
9provision for an increase to his or her allowance due to the death
10of his or her beneficiary and shall, instead, have his or her
11allowance based upon the waiver of this benefit.

12(b) This section shall apply only to a member who retires on or
13before December 31, 2017.

14

SEC. 4.  

Section 21463 of the Government Code is amended
15to read:

16

21463.  

(a) A member who elected to receive optional
17settlement 2 or 3 and whose beneficiary predeceases him or her,
18shall be entitled to receive the increased allowance pursuant to
19Section 21456 or Section 21457, as applicable, unless the member
20elected to waive the provision for an increase to his or her
21allowance pursuant to Section 21459.

22(b) This section shall apply only to a member who retires on or
23before December 31, 2017.

end delete


O

    97