BILL NUMBER: SB 1352 INTRODUCED
BILL TEXT
INTRODUCED BY Committee on Public Employment and Retirement
(Senators Pan (Chair), Beall, Hall, Moorlach, and Morrell)
FEBRUARY 19, 2016
An act to amend Sections 22106.1, 22120, 22508, 22508.5, 22509,
22515, 22703, 22717, 22850, 22851, 22852, 22853, 22853.5, 22854,
24005, 24105, 24201.5, 24204, 24209, 24209.3, 24211, 24212, 24213,
24322, 24410, 24606, 25001, 25006, 26202, 26808, 26810, 28000, 28001,
and 28002 of, and to repeal and amend Section 22101.5 of, the
Education Code, relating to state teachers' retirement.
LEGISLATIVE COUNSEL'S DIGEST
SB 1352, as introduced, Committee on Public Employment and
Retirement. State teachers' retirement.
Existing law, the Teachers' Retirement Law, establishes the State
Teachers' Retirement System (STRS) and creates the Defined Benefit
Program of the State Teachers' Retirement Plan, which provides a
defined benefit to members of the program, based on final
compensation, credited service, and age at retirement, subject to
certain variations. STRS is administrated by the Teachers' Retirement
Board. The Defined Benefit Program is funded by employer and
employee contributions, as well as investment returns and state
appropriations, which are deposited or credited to the Teachers'
Retirement Fund.
(1) Existing law authorizes a disabled member to apply for a
disability allowance or a disability retirement if he or she has five
or more years of service and specified requirements are met. STRS
provides retired and disabled members certain supplemental benefits,
including those that maintain purchasing power up to a specified
percent. Existing law prescribes base dates for purposes of applying
postretirement benefit increases based on whether final compensation
is used to calculate a service retirement upon termination of a
disability allowance or if the disability allowance is continued, as
specified. Existing law defines base allowance for these purposes
This bill would provide that definition of base allowance does not
apply to provisions relating to base dates, as described above. The
bill would, instead, revise the base date provisions to prescribe a
method for their determination when applied to supplemental benefits
and a disability allowance effective date is used.
(2) Existing law authorizes members who become employed in
specified capacities in positions that are covered by other
retirement systems, or who perform service that may be excluded from
coverage in certain respects, to elect coverage under the defined
benefit program. These provisions prescribe requirements for making
this election effective, generally providing that they be made on a
form prescribed by the system with 60 days of hire.
This bill would revise these requirements to require that the
election forms be received by STRS, as specified, within 30 days of
signature.
(3) Federal law, the Uniformed Services Employment and
Reemployment Rights Act, requires pension plans to treat members who
return from military service as if they did not have a break in
service for purposes of certain provisions, which requirements are
reflected in various provisions of the Teachers' Retirement Law.
Existing law establishes the Defined Benefit Supplement Program for
the purpose of providing supplemental benefits to members whose
earnings are in excess of specified amounts. Existing law establishes
the Cash Balance Benefit Program, administered by the Teachers'
Retirement Board, as a separate benefit program within the State
Teachers' Retirement Plan in order to provide a retirement plan for
persons employed to perform creditable service for less than 50% of
full-time service.
This bill would make clarifying, conforming, and technical changes
to reflect the requirements of federal law and specifically to
account for its application to the Defined Benefit Supplement
Program.
(4) Existing law requires that disability allowances and
disability retirement allowances become effective on a date
designated by the member, subject to certain requirements, including
that the date is later than the last day of creditable service for
which compensation is payable.
This bill would revise the reference to creditable service to
instead refer to the last day the member earned creditable
compensation, as defined.
(5) Existing law prescribes different methods of calculating a
STRS service retirement, which depend on whether a member had
previously received a disability allowance, disability retirement, or
service retirement subsequent to which he or she reinstated in the
system. Existing law identifies different methods of calculating
service credit in this context, which may be applied to certain
benefit enhancements such as that related to longevity. Existing law
generally permits unused sick leave to be used for the purpose of
calculating service credit, subject to a specified calculation.
This bill would provide, for purposes of the service retirements
described above, that a certain amount of credited service that
results from application of unused sick leave is to be applied to
specified benefit enhancements. The bill would prohibit a member who
elects a lump-sum retirement benefit from being eligible for
specified disability benefits. The bill would prescribe a method for
calculating service credit from unused sick leave for specified
members.
(6) Existing law requires amounts of benefits that cannot be paid
because a member or beneficiary cannot be located be returned to the
retirement fund. Existing law prohibits interest from accruing on
returned warrants in payment of benefits and contributions that are
drawn and canceled by the Controller.
This bill would prohibit the accruing of interest on payments
rejected pursuant to electronic fund transfers.
(7) Existing law permits a participant in the Cash Balance Benefit
Program, who is employed while receiving an annuity under the
program, to terminate the annuity and again make contributions to the
program, subject to certain conditions, including that the
participant has reached normal retirement age and has been receiving
an annuity for at least a year.
This bill would revise the conditions pursuant to which an annuity
may be terminated to eliminate the requirements that the participant
has reached normal retirement age and has been receiving an annuity
for at least a year, and prescribe administrative provisions.
(8) This bill would also make other technical, clarifying, and
conforming changes.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 22101.5 of the Education Code, as added by
Section 3 of Chapter 74 of the Statutes of 2000, is repealed.
22101.5. "Accumulated Defined Benefit Supplement account balance"
means an amount equal to the sum of member contributions, the member
contributions picked up by an employer, employer contributions, and
interest credited on those contributions pursuant to Section 25005,
that are credited by the system to the member's Defined Benefit
Supplement account.
SEC. 2. Section 22101.5 of the Education Code, as added by Section
1 of Chapter 1021 of the Statutes of 2000, is amended to read:
22101.5. "Accumulated Defined Benefit Supplement account balance"
means the amount of credits equal to the sum of member
contributions, the member contributions picked up by an employer,
employer contributions, interest credited pursuant to Section 25005
and additional earnings credited pursuant to Section 25006.
SEC. 3. Section 22106.1 of the Education Code is amended to read:
22106.1. For the purposes of determining supplemental benefits
pursuant to Sections 24412 and 24415, except as provided under
Section 24410, "base allowance" means a monthly allowance under
the Defined Benefit Program prior to all allowance increases by this
part and after modification for an option, if applicable.
SEC. 4. Section 22120 of the Education Code is amended to read:
22120. "Credited interest" means interest that is credited to
active members' and inactive members',
members' accumulated retirement contributions,
contributions and accumulated annuity deposit
contributions at a rate set annually by the board as a plan amendment
with respect to the Defined Benefit Program.
SEC. 5. Section 22508 of the Education Code is amended to read:
22508. (a) A member who becomes employed by the same or a
different school district or community college district, or a county
superintendent, or who becomes employed by the state in a position
described in subdivision (b), to perform service that requires
membership in a different public retirement system, and who is not
excluded from membership in that public retirement system, may elect
to have that service subject to coverage by the Defined Benefit
Program of this plan and excluded from coverage by the other public
retirement system. The election shall be made in writing on
a form prescribed by this system within 60 days from the date of hire
in the position requiring membership in the other public retirement
system. If that election is made, the service performed for
the employer after the date of hire shall be considered creditable
service for purposes of this part.
(b) Subdivision (a) shall apply to a member who becomes employed
by the state only if the member is also one of the following:
(1) Represented by a state bargaining unit that represents
educational consultants, professional educators, or librarians
employed by the state.
(2) Excluded from the definition of "state employee" in
subdivision (c) of Section 3513 of the Government Code, but
performing, supervising, or managing work similar to work performed
by employees described in paragraph (1).
(3) In a position not covered by civil service and in the
executive branch of government, but performing, supervising, or
managing work similar to work performed by employees described in
paragraph (1).
(c) (1) A member of the Public Employees' Retirement System
described in paragraph (2) who is subsequently employed to perform
creditable service requiring coverage by the Defined Benefit Program
of this plan may elect to have that subsequent service subject to
coverage by the Public Employees' Retirement System and excluded from
coverage by the Defined Benefit Program pursuant to Section 20309 of
the Government Code. If the election is made, creditable service
performed for the employer after the date of hire shall be subject to
coverage by the Public Employees' Retirement System.
(2) This subdivision shall apply to a member of the Public
Employees' Retirement System who either (A) is employed by a school
district, community college district, a county superintendent, or the
State Department of Education or (B) has at least five years of
credited service under the system.
(d) An election made by a member pursuant to this section shall be
irrevocable.
SEC. 6. Section 22508.5 of the Education Code is amended to read:
22508.5. (a) Any person who is a member of the Defined Benefit
Program of the State Teachers' Retirement Plan employed by a
community college district who subsequently is employed by the Board
of Governors of the California Community Colleges to perform duties
that are subject to membership in a different public retirement
system, shall be excluded from membership in that different
system if he or she elects, in writing, and files that election in
the office of the State Teachers' Retirement System within 60 days
after the person's entry into the new position, to continue as a
member of the Defined Benefit Program. system may
elect to have that service subject to coverage
by the Defined Benefit Program of this plan and excluded from
coverage by the other public retirement system. Only a person
who has achieved plan vesting is eligible to elect to continue as a
member of the program.
(b) A member of the Public Employees' Retirement System who is
employed by the Board of Governors of the California Community
Colleges who subsequently is employed by a community college district
to perform creditable service subject to coverage under the Defined
Benefit Program, may elect to have that service subject to coverage
by the Public Employees' Retirement System and excluded from coverage
under the Defined Benefit Program pursuant to Section 20309 of the
Government Code.
(c) This section shall apply to changes in employment effective on
or after January 1, 1998.
SEC. 7. Section 22509 of the Education Code is amended to read:
22509. (a) Within 10 working days of the date of hire of an
employee who has the right to make an election pursuant to Section
22508 or 22508.5, the employer shall inform the employee of the right
to make an election and shall make available to the employee written
information provided by each retirement system concerning the
benefits provided under that retirement system to assist the employee
in making an election.
(b) Any election made pursuant to subdivision (a) of Section 22508
or subdivision (a) of Section 22508.5 shall be filed with
the office of the State Teachers' Retirement System and a
made in writing on a form prescribed by the system
within 60 days from the date of hire in the position requiring
membership in the other public retirement system and shall be
received at the system's headquarters office within 30 days after the
date or the member's signature. A copy of the election shall
be filed with the other public retirement system. Any
(c) Any election made pursuant to
subdivision (c) of Section 22508 or subdivision (b) of Section
22508.5 shall be filed with the office of the Public Employees'
Retirement System and a copy of the election shall be filed with the
office of this system.
(c)
(d) Any election made pursuant to Section 22508 or
Section 22508.5 shall become effective as of the first day of
employment in the position that qualified the employee to make an
election.
SEC. 8. Section 22515 of the Education Code is amended to read:
22515. (a) Persons excluded from membership
pursuant to Sections 22601.5, 22602, and 22604 may elect membership
in the Defined Benefit Program at any time while employed to perform
creditable service subject to coverage under that program.
The
(b) The election shall be in
writing on a form prescribed by this system and shall be
filed in the office of this system received at the
system's headquarters office within 30 days after the date of the
member's signature and prior to submission of contributions.
Membership in the Defined Benefit Program shall become effective
as of the first day of the pay period following the election.
The election is irrevocable and shall remain in effect until the
member terminates employment and receives a refund of accumulated
retirement contributions. The
(c) The amendments to this
section enacted during the 1995-96 Regular Session shall be deemed to
have become operative on July 1, 1996.
SEC. 9. Section 22703 of the Education Code is amended to read:
22703. (a) Service shall be credited to the Defined Benefit
Program, except as provided in subdivision (b).
(b) A member's creditable service that exceeds 1.000 in a school
year shall not be credited to the Defined Benefit Program. Commencing
July 1, 2002, contributions by the employer and the member that are
deposited in the Teachers' Retirement Fund for creditable
compensation paid to the member for service that exceeds 1.000 in a
school year, exclusive of contributions pursuant to Section
Sections 22901.7, 22950.5, and 22951, shall be
credited to the Defined Benefit Supplement Program.
(c) In lieu of any other benefits provided by this part, any
member who performed service prior to July 1, 1956, shall receive
retirement benefits for that service at least equal to the benefits
that the member would have received for that service under the
provisions of this part as they existed on June 30, 1956. This
subdivision shall not apply to service that is credited in the San
Francisco Employees' Retirement System.
(d) The amendments to this section made during the second year of
the 1999-2000 Regular Session shall become operative on July 1, 2002,
if the revenue limit cost-of-living adjustment computed by the
Superintendent of Public Instruction for the 2001-02 fiscal year is
equal to or greater than 3.5 percent. Otherwise the amendments to
this section made during the second year of the 1999-2000 Regular
Session shall become operative on July 1, 2003.
SEC. 10. Section 22717 of the Education Code is amended to read:
22717. (a) A member shall be granted credit at service retirement
for each day of accumulated and unused sick leave days for which
full salary is allowed to which the member was entitled on the member'
s final day of employment with the employer or employers subject to
coverage by the Defined Benefit Program during the last school year
in which he or she earned creditable compensation pursuant to Section
22119.2 or 22119.3. The system shall accept certification from each
employer with which the member has accumulated sick leave days for
that period, provided this leave has not been transferred to another
employer.
(b) The amount of service credit to be granted shall be determined
by dividing the number of days of accumulated and unused sick leave
days by the number of days of service the employer requires the
member's class of employees to perform in a school year during the
member's final year of creditable service subject to coverage by the
Defined Benefit Program, which shall not be less than the minimum
standard specified in Section 22138.5. The number of days shall not
include school and legal holidays. In no event shall the divisor be
less than 175. For members employed less than full time, the
standards identified in Section 22138.5 shall be considered as the
minimum full-time equivalent. For those standards identified in
Section 22138.5 that are applicable to teachers or instructors and
that are expressed only in terms of hours or instructional hours, the
number of hours or instructional hours shall be divided by six to
determine the number of days.
(c) For members who are last employed with the state in a position
in which there are no contracted base service days, the amount of
service credit to be granted shall be 0.004 years of service for each
day of unused sick leave certified to the board by the employer. The
certification shall report only those days of unused sick leave that
were accrued by the member during the normal course of his or her
employment subject to coverage by the Defined Benefit Program.
(c)
(d) When the member has made application for service
retirement under this part, the employer shall certify to the board,
within 30 days following the effective date of the member's service
retirement or the date the application for retirement is received by
the system's headquarters office, whichever is later, the number of
days of accumulated and unused sick leave days that the member was
entitled to on the final day of employment. The board may assess a
penalty on delinquent reports.
(d)
(e) This section shall be applicable to any person who
retires on or after January 1, 1999.
SEC. 11. Section 22850 of the Education Code is amended to read:
22850. (a) The Legislature hereby declares its intent to provide
benefits under this part to reemployed members who have been absent
from a position of employment subject to coverage under the Defined
Benefit Program to perform service in the uniformed services of the
United States in accordance with the Uniformed Services Employment
and Reemployment Rights Act of 1994 (Chapter 43 (commencing with
Section 4301) of Title 38 of the United States Code).
(b) The system shall comply with Chapter 43 (commencing with
Section 4301) of Title 38 of the United States Code, as that chapter
may be amended from time to time.
(c) "Service in the uniformed services"
services," for purposes of determining plan vesting, eligibility for
membership, and accrual of benefits, means the performance of
duty on a voluntary or involuntary basis in a uniformed service under
competent authority and includes active duty, active duty for
training, initial active duty for training, inactive duty training,
and a period for which a member is absent from a
position of employment for the purpose of an examination to determine
the fitness of the member to perform any duty.
duty, and the period of time following the actual service in the
uniformed service through the last day a member is eligible to
report back to work or to apply for reemployment as specified under
Section 1002.259 of Title 20 of the Code of Federal
Regulations.
(d) "Uniformed services" means the Armed Forces of the United
States of America, the Army National Guard and the Air National Guard
when engaged in active duty for training, inactive duty training, or
full-time National Guard duty, the commissioned corps of the Public
Health Service, and any other category of persons designated by the
President in time of war or emergency.
(e) Except as provided in Section 22851, no benefit shall accrue
during the period of service in the uniformed services if the member
does not return to employment, with the same employer which had
employed the member immediately prior to the eligible period of
service in the uniformed services, as prescribed in Chapter 43
(commencing with Section 4301) of Title 38 of the United States Code.
SEC. 12. Section 22851 of the Education Code is amended to read:
22851. The right to pension benefits under this part of a member
who dies or who returns to employment with the same employer which
had employed the member immediately prior to the eligible period of
service in the uniformed services, and is subject to Chapter 43
(commencing with Section 4301) of Title 38 of the United States Code
shall be determined under this section.
(a) (1) A reemployed or deceased member shall be treated as not
having incurred a break in service by reason of that member's
eligible period or periods of service in the uniformed services.
(2) (A) Each eligible period of service served by a member in the
uniformed services shall, upon return to employment, with the same
employer which had employed the member immediately prior to the
eligible period of service in the uniformed services, or upon death,
be deemed to constitute service with the employer or employers toward
plan vesting and eligibility for membership in the Defined Benefit
Program. Service that is deemed to the member pursuant to this
subparagraph shall not be used for benefit calculations.
(B) In cases of death during qualified military service,
service or if a member fails to remit the member
contributions that would have been required in respect of the
eligible period of service in the uniformed services, service
shall be calculated under Section 22853.5 and shall
be used exclusively for plan vesting and eligibility for
membership purposes. Service that is deemed to the member in
this way pursuant to this subparagraph shall
not be used for benefit calculations based on service credit
balances. calculations.
(3) (A) Each eligible period of service served by a member in the
uniformed services shall, upon his or her payment of the member
contributions required under this part, be deemed to constitute
service for the purposes of accruing benefits in the Defined Benefit
Program and the Defined Benefit Supplement Program.
(3)
(B) A member who returns to employment, with the same
employer which had employed the member immediately prior to the
eligible period of service in the uniformed services shall not be
entitled to any benefits under this part in respect of service in the
uniformed services to which the member would not otherwise have been
entitled had the member remained continuously employed and not
undertaken such service in the uniformed services.
(b) For purposes of calculating benefits,
accruing benefits in the Defined Benefit Program and Defined Benefit
Supplement Program, a member who returns to employment with the
same employer which had employed the member immediately prior to the
eligible period of service in the uniformed services shall be
entitled to service credit credit,
compensation earnable, contributions, interest, and additional
earnings credits under this part for the eligible period of
service in the uniformed services upon his or her payment of the
member contributions required under Section 22901
22901, and Section 22901.7, if applicable, that otherwise
would have been due for such period of service had the member
remained continuously employed and not undertaken such service in the
uniformed services. No such payment of member contributions may
exceed the amount the member would have been required to contribute
under this part had the member not served in the uniformed services
and had remained continuously employed by the employer throughout the
eligible period of service in the uniformed services. If a member
fails to remit the member contributions that would have been required
under Section 22901 22901, and Section
22901.7 if applicable, in respect of the eligible period of
service in the uniformed services no service credit
benefits shall be provided under this part for
the period to which the omitted contributions relate.
(c) Any payment of member contributions to the Defined Benefit
Program or the Defined Benefit Supplement Program in this
section shall be made by the member during the period beginning with
the date of return to employment and may continue for three times the
period of the member's eligible service in the uniformed services,
not to exceed five years. Any payment of member contributions to the
Defined Benefit Program in this section by a member who returned to
employment prior to January 1, 1997, and qualifies for benefits in
accordance with the federal Uniformed Services Employment and
Reemployment Rights Act (38 U.S.C. Secs. 4301 to 4335, incl.) shall
be made by the member during the period beginning with the date of
notification of eligibility by the employer to the system and may
continue for three times the period of the member's eligible service
in the uniformed services, not to exceed five years. Any subsequent
request to purchase service credit for this service shall
be subject to the provisions of Chapter 14 (commencing with Section
22800). If all contributions due under this part are not paid to the
plan with respect to the Defined Benefit Program within the specified
repayment period and in accordance with subdivision (b) of
Section 22851 the contributions shall be returned to the member at
the end of the repayment period. Interest (b), the
member shall be entitled to the benefits attributable to the
contributions received or may request a return of his or her
payments. Credited interest on member contributions made for
the eligible period of service in the uniformed services shall not be
credited under this part until after the contributions due are paid
and then only prospectively to the member's account in accordance
with Section 22216. For the Defined Benefit Supplement Program,
contributions, interest, and additional earnings credits the member
would have earned had the member remained continuously employed
during the period of eligible service in the uniformed services shall
be credited retroactively after all contributions due are paid.
SEC. 13. Section 22852 of the Education Code is amended to read:
22852. (a) An employer reemploying a member of the Defined
Benefit Program with service subject to the requirements of Chapter
43 (commencing with Section 4301) of Title 38 of the United States
Code shall be liable to the plan for the employer contributions under
this part, provided that employer was the last employer employing
the member immediately prior to the period served by the member in
the uniformed services.
(b) For purposes of determining the amount of that liability under
this part and any obligation to the plan with respect to the Defined
Benefit Program, interest shall not be included in the liability to
the plan.
(c) Subject to subdivision (e), the employer shall pay the
employer contributions for the eligible period of service in the
uniformed services that would have been required under Sections
22950 22950, 22950.5, and 22951 had the
member remained continuously employed during that period of eligible
service in the uniformed services.
(d) In addition to any amount required pursuant to subdivision
(c), the employer shall pay the full cost of any interest and
additional earnings credits credited to the member's Defined Benefit
Supplement account pursuant to subdivision (b) of Section 22851.
(d)
(e) The employer shall not be liable for employer
contributions under this part for the eligible period of service in
the uniformed services to the extent that the member fails to remit
the member contributions for that period.
(e)
(f) The employer shall provide information regarding
the reemployment of a member who is subject to Chapter 43 (commencing
with Section 4301) of Title 38 of the United States Code on a form
prescribed by the system within 30 days of the date of reemployment.
(f)
(g) Employers shall remit to the plan with respect to
the Defined Benefit Program and the Defined Benefit Supplement
Program, the employer contributions required under
subdivision (c) subdivisions (c) and (d) within
60 working days of the date the system notifies the employer of the
amount of contributions due with respect to the member who elects to
remit the member contributions for the eligible period of service in
the uniformed services.
(g)
(h) If the employee does not comply with subdivision
(b) of Section 22851 within the time period specified, the employer
contributions that were remitted for that period shall be adjusted
pursuant to Section 23008.
SEC. 14. Section 22853 of the Education Code is amended to read:
22853. For purposes of computing an employer's
contributions for the eligible period of service or the member's
contributions under this part, the employee's compensation earnable
during the period of this chapter, creditable
compensation during the period of service in the uniformed services
shall be computed as follows:
(a) The creditable compensation earnable
the member would have received for the eligible period of
service. service had the member remained
continuously employed.
(b) In the event the creditable compensation
earnable is not reasonably certain, the employer's
contributions and member's contributions creditable
compensation shall be based on the member's average
creditable compensation earnable during the
12-month period immediately preceding the eligible period of service
in the uniformed services or, if shorter, the period of employment
immediately preceding that period of service.
SEC. 15. Section 22853.5 of the Education Code is amended to read:
22853.5. For purposes of computing service to award to
members who die during qualified military service, service
this chapter, compensation earnable during the period of service
in the uniformed services shall be computed as follows:
(a) The service credit the member would have received for
the eligible period of service through the beginning of the period
of qualified military leave through the date of death.
The compensation earnable that would have been applicable for the
eligible period of service had the member remained continuously
employed.
(b) In the event the service credit
compensation earnable that would have been applicable
is not reasonably certain, vesting credit
compensation earnable shall be based on the member's
average service credit compensation earnable
earned during the 12-month period immediately preceding the
eligible period of service in the uniformed services or, if shorter,
the period of employment immediately preceding that period of
service. service prorated over the period of
service in the uniformed services.
SEC. 16. Section 22854 of the Education Code is amended to read:
22854. A reemployed member who has been absent from a position of
employment subject to coverage under the Defined Benefit Program to
perform service in the uniformed services, pursuant to Section 22850,
for a period in excess of five years shall not be entitled to
service credit benefits or credit for
plan vesting or eligibility for membership purposes under
this part, chapter for an amount exceeding
five years, except where the service in the uniformed services
has exceeded five years for the following reasons:
(a) The member is required to serve beyond five years to complete
an initial period of obligated service.
(b) The member was unable to obtain orders releasing the member
from a period of service in the uniformed services before the
expiration of the five-year period and that inability was through no
fault of the member.
(c) The member served in the uniformed services as required
pursuant to Section 270 of Title 10 of the United States Code,
Section 502(a) or 503 of Title 32 of the United States Code, or to
fulfill additional training requirements determined and certified in
writing by the Secretary of Defense, to be necessary for professional
development, or for completion of skill training or retraining.
(d) The member is ordered to do any of the following:
(1) Ordered to or retained on active duty under Section 672(a),
672(g), 673, 673(b), 673(c), or 688 of Title 10 of the United States
Code or under Section 331, 332, 359, 360, 367, or 712 of Title 14 of
the United States Code.
(2) Ordered to or retained on active duty, other than for
training, under any provision of law during a war or during a
national emergency declared by the President or the Congress.
(3) Ordered to active duty, other than for training, in support,
as determined by the secretary concerned, of an operational mission
for which personnel have been ordered to active duty under Section
673(b) of Title 10 of the United States Code.
(4) Ordered to active duty in support, as determined by the
secretary concerned, of a critical mission or requirement of the
uniformed services.
(5) Called into federal service as a member of the National Guard
under Chapter 15 (commencing with Section 331) of Title 10 of the
United States Code or under Section 3500 or 8500 of Title 10 of the
United States Code.
SEC. 17. Section 24005 of the Education Code is amended to read:
24005. (a) A disability allowance under this part shall become
effective upon any date designated by the member, provided all of the
following conditions are met:
(1) An application for disability allowance is filed on a properly
executed form prescribed by the system.
(2) The effective date is later than the last day of
creditable service for which compensation is payable to the member.
the member earned creditable compensat ion
pursuant to Section 22119.2 or 22119.3.
(3) The effective date is no earlier than either the first day of
the month in which the application is received by the system's
headquarters office or the date upon and continuously after which the
member is determined to the satisfaction of the board to have been
mentally incompetent.
(b) If the member is employed to perform creditable service
subject to coverage under the Defined Benefit Program at the time the
disability allowance is approved under this part, the member shall
notify the system in writing, within 90 days, of the last day on
which the member will perform service. If the member does not respond
within 90 days, or if the last day on which service will be
performed is more than 90 days after the date the system notifies the
member of approval of the disability allowance, the member's
application for a disability allowance shall be rejected and a
disability allowance shall not be payable to the member.
SEC. 18. Section 24105 of the Education Code is amended to read:
24105. (a) A disability retirement allowance under this part
shall become effective upon any date designated by the member,
provided that all of the following conditions are met:
(1) An application for disability retirement is filed on a
properly executed form prescribed by the system.
(2) The effective date is later than the last day of
creditable service for which compensation is payable to the member.
the member earned creditable compensation pursuant to
Section 22119.2 or 22119.3.
(3) The effective date is no earlier than either the first day of
the month in which the application is received at the system's
headquarters office or the date upon and continuously after which the
member is determined to the satisfaction of the board to have been
mentally incompetent.
(4) The application for disability retirement contains an election
of either an unmodified allowance or an allowance modified under an
option as provided in Section 24332.
(b) If the member is employed to perform creditable service
subject to coverage under the Defined Benefit Program at the time the
disability retirement is approved, the member shall notify the
system in writing, within 90 days, of the last day on which the
member will perform service. If the member does not respond within 90
days, or if the last day on which service will be performed is more
than 90 days after the date the system notifies the member of the
approval of disability retirement, the member's application for
disability retirement shall be rejected and a disability retirement
allowance shall not be payable to the member.
SEC. 19. Section 24201.5 of the Education Code is amended to read:
24201.5. (a) A member who is eligible and applies for a
disability allowance or retirement pursuant to Section 24001 or 24101
may apply to receive a service retirement allowance pending the
determination of his or her application for disability, subject to
all of the following:
(1) The member is eligible to retire for service under Section
24201 or 24203.
(2) The member submits the application on a form provided by the
system, subject to all of the following:
(A) The application is executed no earlier than the date the
application for disability benefits is executed and no earlier than
six months before the effective date of the retirement allowance.
(B) The effective date is no earlier than the first day of the
month in which the application for disability benefits is received at
the system's headquarters office, unless the application for
disability benefits is denied or canceled and the member has
indicated an earlier service retirement date on the application to
use if denied or canceled. If the application for disability benefits
is denied or canceled, the service retirement date of a member who
submits an application for retirement pursuant to this section on or
after January 1, 2014, shall be no earlier than January 1, 2014.
(C) The effective date is later than the last day of
creditable service for which compensation is payable to the member.
the member earned creditable compensation pursuant to
Section 22119.2 or 22119.3.
(D) The effective date is no earlier than one year following the
date on which a retirement allowance was terminated pursuant to
Section 24208, unless the application for disability benefits is
denied or canceled and the member has indicated an earlier service
retirement date on the application to use if denied or canceled. If
the application for disability benefits is denied or canceled, the
service retirement date is no earlier than one day after the date on
which a retirement allowance was terminated pursuant to Section
24208, provided that the retirement allowance is terminated on or
after January 1, 2014.
(E) The effective date is no earlier than one year following the
date on which a retirement allowance was terminated pursuant to
subdivision (a) of Section 24117.
(3) The effective date of the service retirement allowance can be
no earlier than the date upon and continuously after which the member
is determined to the satisfaction of the board to have been mentally
incompetent.
(4) A member who applies for service retirement under this section
is not eligible to receive a lump-sum payment and an actuarially
reduced monthly allowance pursuant to Section 24221.
(5) A member who applies for service retirement under this section
is not eligible to receive an allowance calculated pursuant to
Section 24205.
(6) A member who applies for service retirement under this section
and elects to receive his or her retirement benefit pursuant to
Section 25009 as a lump-sum payment is not eligible to elect a
disability benefit pursuant to Section 25016 or 25018.1.
(6)
(7) (A) Except as described in subparagraph (B), a
member who applies for service retirement under this section shall
not receive service credit for each day of accumulated and unused
leave of absence for illness or injury or for education pursuant to
Section 22717 or 22717.5.
(B) If the application for disability is denied or canceled, the
member's service retirement allowance shall be adjusted to the
effective date of the service retirement to include service credited
pursuant to Section 22717 or 22717.5.
(7)
(8) If the application for disability is denied or
canceled, a member who applies for a service retirement allowance
under this section is subject to all of the following:
(A) Unless otherwise provided in this part, a member who, on his
or her application for service retirement, elects an option pursuant
to Section 24300.1 or 24307 may not change or revoke that option.
(B) If the member receives a modified service retirement allowance
based on the election of an option pursuant to Section 24300.1 or
24307, that modified service retirement allowance shall continue in
effect and unchanged.
(C) If the member did not elect an option pursuant to Section
24300.1 or 24307 and receives an unmodified service retirement
allowance, that unmodified service retirement allowance shall
continue in effect and unchanged.
(b) A member who applies for service retirement under this section
may change or cancel his or her service retirement application
pursuant to Section 24204, or may terminate his or her service
retirement allowance pursuant to Section 24208.
(c) A member may not cancel his or her application for disability
prior to a determination of that application unless he or she submits
a written request to the system's headquarters office. If a member
elects to cancel his or her service retirement application or elects
to terminate his or her service retirement allowance as described in
subdivision (b), that election shall not cancel the application for
disability.
(d) (1) Subparagraph (C) of paragraph (1) of subdivision (a) of
Section 24001 and paragraph (3) of subdivision (a) of Section 24101
shall not apply to a member who cancels an application for service
retirement pursuant to Section 24204 or who terminates a service
retirement allowance pursuant to Section 24208, if all of the
following apply:
(A) The member earned at least one year of credited service
subsequent to the most recent terminated service retirement
allowance.
(B) The member's application for disability under this section is
pending determination by the board.
(2) If the member's application for disability under this section
is denied or canceled, subparagraph (C) of paragraph (1) of
subdivision (a) of Section 24001 and paragraph (3) of subdivision (a)
of Section 24101 shall apply if the member submits a new application
for disability.
(e) (1) If the board approves the application for disability, and
notwithstanding subdivision (f) of Section 24204, the board shall
cancel the member's application for service retirement and shall
authorize payment of a disability allowance or disability retirement.
(2) If the board approves the application for disability and the
member has received service retirement allowance payments under this
part, the effective date for the disability allowance or disability
retirement shall be the same as the effective date of the service
retirement allowance.
(f) If a member who applies for service retirement under this
section dies prior to a determination by the board on the application
for disability, the member shall be considered retired for service
at the time of death, and any subsequent benefits shall be paid
accordingly.
(g) If a member who applies for service retirement under this
section dies after the board has approved the member's application
for disability, the member shall be considered a disabled member, or
retired for disability, at the time of death, and any subsequent
benefits shall be paid accordingly, even if the member died prior to
receiving notification of the approval of his or her application for
disability.
(h) If the member changes or cancels his or her service retirement
application or terminates his or her service retirement allowance as
described in subdivision (b), the system shall make appropriate
adjustments to the applicable service retirement allowance,
disability allowance, or disability retirement allowance, retroactive
to the effective date of the disability allowance or disability
retirement allowance. Subdivision (a) of Section 24617 shall not
apply.
(i) The system may recover a service retirement allowance
overpayment made to a member by deducting that overpayment from any
subsequent disability benefit payable to the member.
(j) Nothing in this section shall be construed to allow a member
or beneficiary to receive more than one type of retirement or
disability allowance for the same period of time.
SEC. 20. Section 24204 of the Education Code is amended to read:
24204. (a) A service retirement allowance under this part shall
become effective upon any date designated by the member, provided all
of the following conditions are met:
(1) An application for service retirement allowance is filed on a
form provided by the system, which is executed no earlier than six
months before the effective date of retirement allowance.
(2) The effective date is later than the last day of
creditable service for which compensation is payable to the member.
the member earned creditable compensation pursuant to
Section 22119.2 or 22119.3.
(3) The effective date is no earlier than one day after the date
on which the retirement allowance was terminated under Section 24208.
(4) The effective date is no earlier than one year following the
date on which the retirement allowance was terminated under
subdivision (a) of Section 24117.
(5) The effective date is no earlier than the date upon and
continuously after which the member is determined to the satisfaction
of the board to have been mentally incompetent.
(6) The effective date is no earlier than the date upon which the
member completes payment of a service credit purchase pursuant to
Section 22801, 22820, or 22826, or payment of a redeposit of
contributions pursuant to Section 23200, except as provided in
Section 22801 or 22829.
(b) A member who files an application for service retirement may
change or cancel his or her retirement application, as long as the
form provided by the system is received in the system's headquarters
office no later than 30 days from the date the member's initial
benefit payment for the member's most recent retirement under the
Defined Benefit Program is paid by the system. If a member cancels
his or her retirement application, the member shall return the total
gross distribution amount of all payments for the canceled retirement
benefit to the system's headquarters office no later than 45 days
from the date of the member's initial benefit payment and shall be
liable for any adverse tax consequences that may result from these
actions.
(c) The retirement date of a member who files an application for
retirement pursuant to Section 24201 on or after January 1, 2012,
shall be no earlier than January 1, 2012.
(d) Nothing in this section shall be construed to allow a member
to receive more than one type of retirement or disability allowance
for the same period of time by virtue of his or her own membership.
SEC. 21. Section 24209 of the Education Code is amended to read:
24209. (a) Upon retirement for service following reinstatement,
the member shall receive a service retirement allowance equal to the
sum of both of the following:
(1) An amount equal to the monthly allowance the member was
eligible to receive immediately preceding the most recent
reinstatement, exclusive of any amounts payable pursuant to Section
22714 or 22715, increased by the improvement factor that would have
been applied to the allowance if the member had not reinstated.
(2) An amount calculated pursuant to Section 24202, 24202.5,
24202.6, 24203, 24203.5, or 24206 based on credited service accrued,
including any service granted pursuant to Section 22717 or 22717.5,
subsequent to the most recent reinstatement, the member's age on the
last day of the month in which the retirement allowance begins to
accrue, and final compensation.
(b) If the total amount of credited service accrued, other than
that accrued pursuant to Sections 22714, 22715, 22717, 22717.5, and
22826, except as provided in subdivision (c) of Section 22121,
is equal to or greater than 30 years, the amounts identified in
paragraphs (1), for members who initially retired on or after
January 1, 1999, and (2) of subdivision (a) shall be calculated
pursuant to Section 24203.5.
(c) If the total amount of credited service accrued, other than
that accrued pursuant to Sections 22714, 22715, 22717, 22717.5, and
22826, except as provided in subdivision (c) of
Section 22121, is equal to or greater than 30 years, upon
retirement for service following reinstatement, a member who retired
pursuant to Section 24213, and received the terminated disability
allowance for the prior retirement, shall receive a service
retirement allowance equal to the sum of the following:
(1) An amount based on the credited service accrued, including any
service granted pursuant to Section 22717 or 22717.5, prior to the
effective date of the disability allowance, the member's age at the
prior retirement increased by the factor provided in Section 24203.5,
and projected final compensation.
(2) An amount calculated pursuant to Section 24202, 24202.5,
24202.6, 24203.5, or 24206 based on credited service accrued,
including any service granted pursuant to Section 22717 or 22717.5,
subsequent to the reinstatement, the member's age on the last day of
the month in which the retirement allowance begins to accrue, and
final compensation using compensation earnable, or projected final
compensation, or a combination of both.
(d) For purposes of this section, final compensation shall not be
based on a determination of compensation earnable as described in
subdivision (e) of Section 22115.
SEC. 22. Section 24209.3 of the Education Code is amended to read:
24209.3. (a) Notwithstanding subdivision (a) of Section 24209,
and exclusive of any amounts payable during the prior retirement for
service pursuant to Section 22714, or 22715:
(1) A member who retired, other than pursuant to Section 24210,
24211, 24212, or 24213, and who reinstates and performs creditable
service, as defined in Section 22119.5, after the most recent
reinstatement, in an amount equal to two or more years of credited
service, shall, upon retirement for service on or after the effective
date of this section, receive a service retirement allowance equal
to the sum of the following:
(A) An amount calculated pursuant to this chapter based on
credited service accrued, including any service granted pursuant to
Section 22717 or 22717.5, prior to the most recent reinstatement,
using the member's age at the subsequent service retirement, from
which age shall be deducted the total time during which the member
was retired for service, and final compensation.
(B) An amount calculated pursuant to this chapter based on
credited service accrued, including any service granted pursuant to
Section 22717 or 22717.5, subsequent to the most recent
reinstatement, using the member's age on the last day of the month in
which the retirement allowance begins to accrue, and final
compensation.
(2) A member who retired pursuant to Section 24210 and who
reinstates and performs creditable service, as defined in Section
22119.5, after the most recent reinstatement, in an amount equal to
two or more years of credited service, shall, upon retirement for
service on or after the effective date of this section, receive a
service retirement allowance equal to the sum of the following:
(A) An amount calculated pursuant to this chapter based on
credited service accrued, including any service granted pursuant to
Section 22717 or 22717.5, prior to the effective date of the
disability retirement, using the member's age at the subsequent
service retirement, from which age shall be deducted the total time
during which the member was retired for service, and indexed final
compensation to the effective date of the initial service retirement.
(B) An amount calculated pursuant to this chapter based on the
credited service accrued, including any service granted pursuant to
Section 22717 or 22717.5, after termination of the disability
retirement, excluding credited service accrued or granted subsequent
to the most recent reinstatement, using the member's age at the
subsequent service retirement, from which age shall be deducted the
total time during which the member was retired for service, and final
compensation.
(C) An amount calculated pursuant to this chapter based on
credited service accrued, including any service granted pursuant to
Section 22717 or 22717.5, subsequent to the most recent
reinstatement, using the member's age on the last day of the month in
which the retirement allowance begins to accrue, and final
compensation.
(3) A member who retired pursuant to Section 24211 and who
reinstates and performs creditable service, as defined in Section
22119.5, after the most recent reinstatement, in an amount equal to
two or more years of credited service, shall, upon retirement for
service on or after the effective date of this section, receive a
service retirement allowance equal to the sum of the following:
(A) The greater of (i) the disability allowance the member was
eligible to receive immediately prior to termination of that
allowance, excluding the children's portion, or (ii) an amount
calculated pursuant to this chapter based on credited service accrued
prior to the effective date of the disability allowance, excluding
credited service accrued or granted pursuant to Section 22717 or
22717.5 or Chapter 14 (commencing with Section 22800) or Chapter 14.2
(commencing with Section 22820) or Chapter 19 (commencing with
Section 23200), using the member's age at the subsequent service
retirement, from which age shall be deducted the total time during
which the member was retired for service, and final compensation
using compensation earnable, or projected final compensation
earnable, or a combination of both.
(B) An amount equal to either of the following:
(i) For a member who was receiving a benefit pursuant to
subdivision (a) of Section 24211, an amount calculated pursuant to
this chapter based on credited service accrued at the time of the
retirement pursuant to Section 24211, excluding credited service
accrued or granted prior to the effective date of the disability
allowance or pursuant to Section 22717 or 22717.5 or Chapter 14
(commencing with Section 22800) or Chapter 14.2 (commencing with
Section 22820) or Chapter 19 (commencing with Section 23200), the
member's age at the subsequent service retirement, from which age
shall be deducted the total time during which the member was retired
for service, and final compensation using compensation earnable, or
projected final compensation, or a combination of both.
(ii) For a member who was receiving a benefit pursuant to
subdivision (b) of Section 24211, an amount calculated pursuant to
this chapter based on projected service at the time of the retirement
pursuant to Section 24211, excluding credited service accrued or
granted prior to the effective date of the disability allowance or
pursuant to Section 22717 or 22717.5 or Chapter 14 (commencing with
Section 22800) or Chapter 14.2 (commencing with Section 22820) or
Chapter 19 (commencing with Section 23200), the member's age at the
subsequent service retirement, from which age shall be deducted the
total time during which the member was retired for service, and final
compensation using compensation earnable, or projected final
compensation, or a combination of both.
(C) An amount based on any credited service accrued or granted
pursuant to Section 22717 or 22717.5 or Chapter 14 (commencing with
Section 22800) or Chapter 14.2 (commencing with Section 22820) or
Chapter 19 (commencing with Section 23200), at the time of the
retirement pursuant to Section 24211, using the member's age at the
subsequent service retirement, from which age shall be deducted the
total time during which the member was retired for service, and final
compensation using compensation earnable, or projected final
compensation, or a combination of both.
(D) An amount calculated pursuant to this chapter based on
credited service accrued subsequent to the most recent reinstatement,
including credited service accrued or granted pursuant to Section
22714, 22715, 22717, or 22717.5 or Chapter 14 (commencing with
Section 22800) or Chapter 14.2 (commencing with Section 22820) or
Chapter 19 (commencing with Section 23200), using the member's age on
the last day of the month in which the retirement allowance begins
to accrue, and final compensation using compensation earnable, or
projected final compensation, or a combination of both.
(4) A member who retired pursuant to Section 24212 or 24213 and
who reinstates and performs creditable service, as defined in Section
22119.5, after the most recent reinstatement, in an amount equal to
two or more years of credited service, shall, upon retirement for
service on or after the effective date of this section, receive a
service retirement allowance equal to the sum of the following:
(A) An amount calculated pursuant to this chapter based on the
member's projected service at the time of the retirement pursuant to
Section 24212 or 24213, including credited service accrued or granted
pursuant to Section 22717 or 22717.5 or Chapter 14 (commencing with
Section 22800) or Chapter 14.2 (commencing with Section 22820) or
Chapter 19 (commencing
with Section 23200), using the member's age at the subsequent service
retirement, from which age shall be deducted the total time during
which the member was retired for service, and final compensation
using compensation earnable, or projected final compensation, or a
combination of both.
(B) An amount calculated pursuant to this chapter based on
credited service accrued subsequent to the most recent reinstatement,
including credited service accrued or granted pursuant to Section
22714, 22715, 22717, or 22717.5 or Chapter 14 (commencing with
Section 22800) or Chapter 14.2 (commencing with Section 22820) or
Chapter 19 (commencing with Section 23200), using the member's age on
the last day of the month in which the retirement allowance begins
to accrue, and final compensation using compensation earnable, or
projected final compensation, or a combination of both.
(b) If the total amount of credited service, other than projected
service, or service that accrued or was granted pursuant to Sections
22714, 22715, 22717, 22717.5, and 22826, except as
provided in subdivision (c) of Section 22121, is equal to or
greater than the number of years required to be eligible for an
increased allowance pursuant to this chapter or Section 22134.5, the
amounts identified in this section shall be calculated pursuant to
the section authorizing the increased benefit.
(c) For members receiving an allowance pursuant to Section 24410.5
or 24410.6, the amount payable pursuant to this section shall not be
less than the amount payable to the member as of the effective date
of reinstatement.
(d) The amount payable pursuant to this section shall not be less
than the amount that would be payable to the member pursuant to
Section 24209.
(e) For purposes of determining an allowance increase pursuant to
Sections 24415 and 24417, the calendar year of retirement shall be
the year of the subsequent retirement if the final compensation used
to calculate the allowance pursuant to this section is higher than
the final compensation used to calculate the allowance for the prior
retirement.
(f) The allowance paid pursuant to this section to a member
receiving a lump-sum payment pursuant to Section 24221 shall be
actuarially reduced to reflect that lump-sum payment.
(g) For purposes of this section, final compensation shall not be
based on a determination of compensation earnable as described in
subdivision (e) of Section 22115.
SEC. 23. Section 24211 of the Education Code is amended to read:
24211. When a member who has been granted a disability allowance
under this part after June 30, 1972, returns to employment subject to
coverage under the Defined Benefit Program and performs:
(a) Less than three years of creditable service after termination
of the most recent disability allowance, the member shall receive a
retirement allowance which is the sum of the allowance calculated on
credited service accrued after the termination date of the disability
allowance, excluding credited service accrued or granted pursuant to
Section 22717 or 22717.5 or Chapter 14 (commencing with Section
22800) or Chapter 14.2 (commencing with Section 22820) or Chapter 19
(commencing with Section 23200), the age of the member on the last
day of the month in which the retirement allowance begins to accrue,
and final compensation using compensation earnable or projected final
compensation, or a combination of both, plus the greater of either
of the following:
(1) A service retirement allowance calculated on credited service
accrued as of the effective date of the disability allowance,
excluding credited service accrued or granted pursuant to Section
22717 or 22717.5 or Chapter 14 (commencing with Section 22800) or
Chapter 14.2 (commencing with Section 22820) or Chapter 19
(commencing with Section 23200), the member's age on the last day of
the month in which the retirement allowance begins to accrue, and
projected final compensation to the termination date of the
disability allowance.
(2) The disability allowance the member was eligible to receive
immediately prior to termination of the most recent disability
allowance, excluding children's portions.
(b) Three or more years of creditable service after termination of
the most recent disability allowance, the member shall receive a
retirement allowance that is the greater of the following:
(1) A service retirement allowance calculated on all actual and
projected service, excluding credited service accrued or granted
pursuant to Section 22717 or 22717.5 or Chapter 14 (commencing with
Section 22800) or Chapter 14.2 (commencing with Section 22820) or
Chapter 19 (commencing with Section 23200), the member's age on the
last day of the month in which the retirement allowance begins to
accrue, and final compensation using compensation earnable, or
projected final compensation, or a combination of both.
(2) The disability allowance the member was eligible to receive
immediately prior to termination of the most recent disability
allowance, excluding children's portions.
(c) The allowance shall be increased by an amount based on any
credited service accrued or granted pursuant to Section 22714, 22715,
22717, or 22717.5 or Chapter 14 (commencing with Section 22800) or
Chapter 14.2 (commencing with Section 22820) or Chapter 19
(commencing with Section 23200), the member's age on the last day of
the month in which the retirement allowance begins to accrue, and
final compensation using compensation earnable, or projected final
compensation, or a combination of both.
(d) If the total amount of credited service, other than projected
service or credited service that accrued or was granted pursuant to
Sections 22714, 22715, 22717, 22717.5, and 22826, except as
provided in subdivision (c) of Section 22121, is equal to or
greater than 30 years, the amounts identified in subdivisions (a) to
(c), inclusive, shall be calculated pursuant to Sections 24203.5 and
24203.6.
(e) For purposes of this section, final compensation shall not be
based on a determination of compensation earnable as described in
subdivision (e) of Section 22115.
(f) Upon retirement, the member may elect to modify the service
retirement allowance payable in accordance with any option provided
under this part.
SEC. 24. Section 24212 of the Education Code is amended to read:
24212. (a) If a disability allowance granted under this part
after June 30, 1972, is terminated for reasons other than those
specified in Section 24213 and the member does not return to
employment subject to coverage under the Defined Benefit Program, the
member's service retirement allowance, when payable, shall be based
on projected service, excluding credited service accrued or granted
pursuant to Section 22717 or 22717.5 or Chapter 14 (commencing with
Section 22800) or Chapter 14.2 (commencing with Section 22820), or
Chapter 19 (commencing with Section 23200), projected final
compensation, and the member's age on the last day of the month in
which the retirement allowance begins to accrue. The allowance
payable under this section, excluding annuities payable from
accumulated annuity deposit contributions, shall not be greater than
the disability allowance the member was eligible to receive
immediately prior to the earlier of the termination of that allowance
or at normal retirement age, excluding children's portions.
(b) The allowance shall be increased by an amount based on any
credited service accrued or granted pursuant to Section 22717 or
22717.5 or Chapter 14 (commencing with Section 22800) or Chapter 14.2
(commencing with Section 22820) or Chapter 19 (commencing with
Section 23200), the member's age on the last day of the month in
which the retirement allowance begins to accrue, and final
compensation using compensation earnable, or projected final
compensation, or a combination of both.
(c) If the total amount of credited service, other than projected
service or credited service that accrued or was granted pursuant to
Sections 22717, 22717.5, and 22826, ex cept as
provided in subdivision (c) of Section 22121, is equal to or
greater than 30 years, the amounts identified in subdivisions (a) and
(b) shall be calculated pursuant to Sections 24203.5 and 24203.6.
(d) Upon retirement, the member may elect to modify the service
retirement allowance payable in accordance with any option provided
under this part.
SEC. 25. Section 24213 of the Education Code is amended to read:
24213. (a) When a member who has been granted a disability
allowance under this part after June 30, 1972, attains normal
retirement age, or at a later date when there is no dependent child,
the disability allowance shall be terminated and the member shall be
eligible for service retirement. The retirement allowance shall be
calculated on the projected final compensation and projected service
to normal retirement age, excluding credited service accrued or
granted pursuant to Section 22717 or 22717.5 or Chapter 14
(commencing with Section 22800) or Chapter 14.2 (commencing with
Section 22820) or Chapter 19 (commencing with Section 23200), and the
member's age on the last day of the month in which the retirement
allowance begins to accrue. The allowance payable under this section,
excluding annuities payable from accumulated annuity deposit
contributions, shall not be greater than the disability allowance the
member was eligible to receive immediately prior to normal
retirement age, excluding children's portions.
(b) The allowance shall be increased by an amount based on any
credited service accrued or granted pursuant to Section 22717 or
22717.5 or Chapter 14 (commencing with Section 22800) or Chapter 14.2
(commencing with Section 22820) or Chapter 19 (commencing with
Section 23200), the member's age on the last day of the month in
which the retirement allowance begins to accrue, and projected final
compensation to normal retirement age.
(c) If the total amount of credited service accrued, other than
projected service or credited service that accrued or was granted
pursuant to Sections 22717, 22717.5, and 22826, except as
provided in subdivision (c) of Section 22121, is equal to
or greater than 30 years, the amounts identified in subdivisions (a)
and (b) shall be calculated pursuant to Sections 24203.5 and 24203.6.
(d) Upon retirement, the member may elect to modify the service
retirement allowance payable in accordance with any option provided
under this part.
SEC. 26. Section 24322 of the Education Code is amended to read:
24322. (a) An option elected under Section 24300, 24300.1, or
24307 may be canceled by a retired member if the option beneficiary
is the retired member's spouse or former spouse and a final decree of
dissolution of marriage or a judgment of nullity has been entered or
an order of separate maintenance has been made on or after January
1, 1978, by a court of competent jurisdiction. A retired member may
cancel the option before or after issuance of the first retirement
allowance payment.
(b) The retired member shall notify the board
board, in writing on a properly executed fo
rm provided by the system of cancellation of the option.
Notification shall not be earlier than the effective date of the
decree, judgment, or order and shall include a certified copy of the
final decree of dissolution, or judgment of nullity, or an order of
separate maintenance, and any property settlement agreement.
(c) Upon notification to the board, the retired member may elect:
(1) to receive the unmodified retirement allowance from the date of
receipt of the notification; or (2) a new joint and survivor option
under Section 24300.1 and may designate one or multiple new option
beneficiaries. Modification of the retirement allowance because of
the newly elected option or newly designated beneficiary or
beneficiaries shall be based on the ages of the retired member and
the new option beneficiary or beneficiaries as of the effective date
of the new option. The election of a new joint and survivor option or
the designation of a new option beneficiary or beneficiaries shall
be consistent with the final decree of dissolution, judgment of
nullity, order of separate maintenance, or property settlement
agreement, and shall not result in any additional liability to the
Teachers' Retirement Fund. The effective date of the change shall be
the date notification is received by the board.
SEC. 27. Section 24410 of the Education Code is amended to read:
24410. (a) If projected final compensation is used to calculate
the service retirement allowance following the termination of the
disability allowance or if the disability allowance is continued as
the lesser of the two allowance calculations under Section 24212 or
24213, then the original disability allowance effective date shall be
retained as the base date for purposes of determining postretirement
benefit increases.
(b) If the disability allowance effective date is used pursuant to
subdivision (a), then the original disability allowance the
member was eligible to receive on that date shall be used for the
purpose of determining postretirement benefit increases. This
subdivision shall not apply to an action filed in superior court
before January 1, 2014. for purposes of determining
supplemental benefits pursuant to Sections 24412 and 24415, the base
allowance shall be determined as follows:
(1) If the disability allowance is continued pursuant to Section
24212 or 24213, the base allowance shall be equal to the disability
allowance prior to all allowance increases made pursuant to this
part.
(2) If the disability allowance is not continued pursuant to
Section 24212 or 24213, the base allowance shall be based on the
factors used to calculate the service retirement allowance, except
that projected final compensation shall be replaced with the final
compensation upon which the disability allowance was based using
compensation earnable without the adjustment pursuant to subdivision
(f) of Section 22134 and subdivision (e) of Section 22134.5.
(3) The base allowance determined pursuant to this subdivision
shall be modified for an option, if applicable.
(c) This section shall be applicable for determining the base date
for applicable postretirement increases made on or after January 1,
1982.
(d) This section shall only apply to service retirements effective
the day after the termination date of the disability allowance.
SEC. 28. Section 24606 of the Education Code is amended to read:
24606. (a) If any warrant drawn in payment of
contributions or accumulated contributions or benefits under this
plan remains unclaimed or and, after a good
faith effort, the legal claimant cannot be found, the board
shall redeposit the proceeds of the warrant in the
retirement fund, and shall hold the proceeds for the legal claimant
without further accumulation of interest. The redeposit does not
operate to establish the membership of the claimant in this plan.
(b) Subdivision (a) applies to warrants drawn and canceled by the
Controller pursuant to Section 17070 of the Government Code,
except that, upon and payments rejected via
electronic funds transfer. Upon notice of
cancellation, cancellation or rejection, the
proceeds revert to and become a part of the retirement fund, and
shall be applied to meet the liabilities of the retirement fund.
(c) The board may at any time after reversion of proceeds, as
provided above to the retirement fund, and upon receipt of proper
information satisfactory to it, return from the retirement fund an
amount equal to those proceeds to the credit of the legal claimant.
SEC. 29. Section 25001 of the Education Code is amended to read:
25001. (a) The board shall establish a segregated account within
the retirement fund to be known as the Gain and Loss Reserve, and the
board shall have sole authority over the reserve. The Gain and Loss
Reserve shall be maintained for the Defined Benefit Supplement
Program and may be used to credit interest at the minimum interest
rate for plan years in which the board determines that the obligation
cannot be met from investment earnings. The Gain and Loss Reserve
may also be used to provide additions to the Annuitant Reserve for
monthly annuities payable under the Defined Benefit Supplement
Program.
(b) The board shall establish a goal for the balance of the Gain
and Loss Reserve and periodically shall review the sufficiency of the
reserve based on the recommendations of the actuary.
(c) The board may allocate excess earnings of the plan with
respect to assets attributable to the Defined Benefit Supplement
Program to the Gain and Loss Reserve. In addition, the board may
allocate any liability gains and losses attributable to the Defined
Benefit Supplement Program to the Gain and Loss Reserve. Upon the
recommendation of the actuary, the board shall determine annually the
amount, if any, that is to be allocated to the Gain and Loss Reserve
for that plan year. That determination shall be made upon
recommendation of the actuary after adoption of
based on the actuarial valuation undertaken following the
plan year pursuant to Section 22311.5, but no later than June 30
following the end of the plan year. In determining whether to
allocate excess earnings to the Gain and Loss Reserve, the board
shall consider all of the following:
(1) Whether or not the plan has excess earnings attributable to
the Defined Benefit Supplement Program.
(2) The sufficiency of the Gain and Loss Reserve in light of the
goal established pursuant to subdivision (b).
(3) The amount required for the plan's administrative costs with
respect to the Defined Benefit Supplement Program.
(4) The amount required for crediting members' accounts at the
minimum interest rate.
(d) In determining whether to allocate liability gains and losses
to the Gain and Loss Reserve, the board shall consider the matters
described in paragraphs (2), (3), and (4) of subdivision (c).
SEC. 30. Section 25006 of the Education Code is amended to read:
25006. (a) The board may declare an additional earnings credit to
be applied to Defined Benefit Supplement accounts for a plan year.
Prior to declaring an additional earnings credit, the board shall
consider all of the following:
(1) Whether the plan's investment earnings with respect to the
Defined Benefit Supplement Program for the plan year exceed the
amount required to meet the liabilities identified in paragraphs (2),
(3), and (4).
(2) The amount required for the plan year to credit interest on
members' nominal accounts at the minimum interest rate.
(3) The amount of the plan's administrative expenses with respect
to the Defined Benefit Supplement Program for the plan year.
(4) The sufficiency of the Gain and Loss Reserve and whether any
additions must be made to that reserve.
(b) For any plan year that the board declares an additional
earnings credit, the board shall specify the amount to be added to
members' accounts as a percentage increase. The additional earnings
credit shall be applied to the balance of credits in each member's
nominal account as of the last day of the plan year and shall be
applied as of the date specified by the board. The additional
earnings credit shall not be added to the balance of credits
transferred from a member's Defined Benefit Supplement account to the
Annuitant Reserve.
(c) The declaration of an additional earnings credit shall be made
as a plan amendment adopted by the board with respect to the Defined
Benefit Supplement Program upon recommendation of the actuary
after adoption of based on the
actuarial valuation undertaken following the plan year pursuant to
Section 22311.5, but no later than June 30 following the end of the
plan year.
SEC. 31. Section 26202 of the Education Code is amended to read:
26202. (a) The board shall establish a Gain and Loss Reserve
within the Teachers' Retirement Fund for the Cash Balance Benefit
Program. The board has sole authority to administer the Gain and Loss
Reserve to be drawn upon to the extent necessary to credit interest
to employee accounts and employer accounts at the minimum interest
rate during years in which the investment earnings of the plan with
respect to the Cash Balance Benefit Program are not sufficient for
that purpose, and, where necessary, to provide additions to the
Annuitant Reserve for monthly annuity payments.
(b) The board shall establish and periodically review goals
regarding the sufficiency of the Gain and Loss Reserve based on the
recommendation of the actuary.
(c) In the event that the total amount of investment earnings of
the plan with respect to the Cash Balance Benefit Program for any
plan year exceeds the sum of the total amount required to credit all
employee and employer accounts at the minimum interest rate for the
plan year plus the administrative costs of the plan with respect to
the Cash Balance Benefit Program for the plan year, the board shall
determine the amount, if any, that is to be credited to the Gain and
Loss Reserve for the plan year. That determination shall be made upon
recommendation of the actuary following the adoption by the
board of based on the actuarial valuation
undertaken following the plan year pursuant to Section
26202, 26211 but no later than June 30 following
the end of the plan year. In determining whether an amount is to be
credited to the Gain and Loss Reserve, the board shall consider the
sufficiency of the reserve in light of the goal established for the
sufficiency and the recommendations of the actuary.
SEC. 32. Section 26808 of the Education Code is amended to read:
26808. (a) The annuity elected under this chapter shall be
determined as a value actuarially equivalent to the sum of the
employee account and the employer account as of the retirement date.
The annuity shall be calculated using the age of the participant and,
if the participant elected a joint and survivor option, the age of
the beneficiary on the retirement date.
(b) In the case of a participant who previously received an
annuity that was terminated pursuant to Section 26505 or
26810, the portion of the annuity derived from the amounts
credited to the employee account and employer account as of the date
of reemployment shall be calculated using the actuarial assumptions
in effect on the previous retirement date using the age of the
participant and, if the participant elected a joint and survivor
option, the age of the beneficiary on the current retirement date.
SEC. 33. Section 26810 of the Education Code is amended to read:
26810. (a) A participant who is employed to perform creditable
service subject to coverage by the Cash Balance Benefit Program while
receiving an annuity under the program may voluntarily
terminate the annuity upon employment
written request to the system and make contributions to
the program based on salary paid by the employer for the employment,
provided the participant has attained normal retirement age
and has been receiving a retirement annuity for at least one year.
The participant shall continue to be subject to Section 26808.
subject to the following conditions:
(1) The request for termination of the annuity is filed on a form
prescribed by the system, and the form is executed no earlier than
six months before the effective date of the termination.
(2) Termination of the participant's annuity shall become
effective on the first day of the month designated by the
participant.
(b) The participant shall request in writing within 60 days of
employment that the annuity be terminated. Termination of the
participant's annuity shall become effective on the first day of the
month following the month in which verification of the participant's
employment is received by the system from the participant's employer.
(c)
(b) Upon voluntary termination of
the annuity, the employee and employer account of the participant
shall be credited with respective balances that reflect the actuarial
equivalent of the participant's retirement benefit as of the date
the participant terminates the annuity and the Annuitant Reserve
shall be reduced by the amount of the credits.
(d)
(c) The portion of the annuity derived from the amounts
credited to the employee account and employer account, as of the
date the participant terminates the annuity, shall be calculated
using the actuarial assumptions in effect on the initial retirement
date using the age of the participant and, if the participant elected
a joint and survivor option option,
the age of the beneficiary on the current retirement date.
(e)
(d) Upon election of a subsequent annuity, the credits
in the participant's employee account and employer account shall be
transferred to the Annuitant Reserve.
SEC. 34. Section 28000 of the Education Code is amended to read:
28000. (a) The Legislature hereby finds and declares its intent
to preserve and protect the rights of reemployed participants who
have been absent from a position of employment covered by the Cash
Balance Benefit Program to serve in the uniformed services of the
United States of America in accordance with the Uniformed Services
Employment and Reemployment Rights Act of 1994 (Chapter 43
(commencing with Section 4301) of Title 38 of the United States
Code).
(b) The plan shall comply with Chapter 43 (commencing with Section
4301) of Title 38 of the United States Code, as that chapter may be
amended from time to time.
(c) The term "service in the uniformed services"
services," for purposes of determining plan vesting,
eligibility for membership, and accrual of benefits, means the
performance of duty on a voluntary or involuntary basis in a
uniformed service under competent authority and includes active duty,
active duty for training, initial active duty for training, inactive
duty training, and a period for which a
participant is absent from a position of employment for the purpose
of an examination to determine the fitness of the participant to
perform any such duty. duty, and the period
of time following the actual service in the uniformed service through
the last day a member is eligible to report back to work or to
apply for reemployment as
specified under Section 1002.259 of Title 20 of the Code
of Federal Regulations.
(d) The term "uniformed services" means the Armed Forces of the
United States of America, the Army National Guard and the Air
National Guard when engaged in active duty for training, inactive
duty training, or full-time National Guard duty, the commissioned
corps of the Public Health Service, and any other category of persons
designated by the President in time of war or emergency.
(e) No entitlement of the right to contribute toward credits under
the Cash Balance Benefit Program pursuant to this chapter by the
participant as a result of service in the uniformed services shall
accrue if the participant does not return to employment with the same
employer or employers which employed the participant immediately
prior to the eligible period of service in the uniformed services as
prescribed in Chapter 43 (commencing with Section 4301) of Title 38
of the United States Code.
SEC. 35. Section 28001 of the Education Code is amended to read:
28001. (a) The participant who returns to employment with the
same employer which had employed the participant immediately prior to
the eligible period of service in the uniformed services, in
accordance with the requirements of Chapter 43 (commencing with
Section 4301) of Title 38 of the United States Code, shall be treated
as not having incurred a break in the performance of creditable
service by reason of that participant's period or periods of service
in the uniformed services. The length of each period of service in
the uniformed services shall not exceed five years unless otherwise
permitted pursuant to Section 28004. Each period of service in the
uniformed services by the participant shall, upon that participant's
return to employment with the same employer or employers which had
employed the participant immediately prior to the eligible period of
service in the uniformed services, constitute employment toward the
performance of creditable service provided that participant elects to
remit the employee contributions that would have been made during
the period of service in the uniformed services. The remittance of
employee contributions shall be calculated pursuant to Sections 26501
and 28003. In no event shall that remittance exceed the amount the
participant would have been required to contribute during that period
of performance of creditable service had the participant remained
continuously employed by the last employer and not served in the
uniformed services throughout that period.
(b) Notwithstanding Section 26506, remittance of employee
contributions in accordance with subdivision (a) shall be made by the
employer pursuant to Section 26502 upon the employer's receipt of
written consent of the participant specifying a schedule of
repayments. That remittance shall commence during the period
beginning with the date of return to employment and may continue for
three times the period of the participant's eligible period of
service in the uniformed services, not to exceed five years. The plan'
s receipt of the remittance payments to the plan with respect to the
Cash Balance Benefit Program shall be credited pursuant to Chapter 7
of this part. Interest on the payments of remitted employee
contributions made for the period of service in the uniformed
services shall not be credited in the participant's account until
after such payments are received and only prospectively to the
participant's account in accordance with Section 26604.
Contributions, interest, and additional earnings credits the
participant would have earned had the participant remained
continuously employed during the period of eligible
service in the uniformed services shall be credited to employee and
employer accounts retroactively upon receipt of the employee
contributions. Upon receipt of the remittance payments to the
plan, the payments shall be subject to the same terms and conditions
under the program as if the payments had been employee contributions
made by the participant had the participant not served for a period
in the uniformed services. In no event shall the current year
contributions and contributions made for purposes of purchasing
service exceed the maximum exclusion allowance as set forth in the
Internal Revenue Code.
SEC. 36. Section 28002 of the Education Code is amended to read:
28002. (a) Except as provided in subdivision (b), an employer
reemploying a participant with service subject to the requirements of
Chapter 43 (commencing with Section 4301) of Title 38 of the United
States Code, shall be liable to remit the employer contributions
provided that employer employed the participant immediately prior to
the eligible period of service in the uniformed services.
That remittance shall exclude interest and the The
contribution rate by the employer shall be to the same extent
as that for contributions to the Cash Balance Benefit Program for
other employees during the same period. In addition to
contributions due pursuant to this subdivision, the employer shall
remit an amount that is the equivalent of the full cost of any
interest and additional earnings credits credited pursuant to Section
28001. The employer shall, within 30 days of the date
of reemployment, provide information as required by the board, on a
form provided by the system, notifying the system of reemployment.
shall provide information regarding the reemployment
of a participant who is subject to Chapter 43 (commencing with
Section 4301) of Title 38 of the United States Code on a form
prescribed by the system within 30 days of the date of reemployment.
Following receipt of that notice, the system shall calculate in
accordance with Section 28003 the total amount of employer
contributions due for the participant for the full period of service
in the uniformed services. Within 60 working days of notification by
the plan of amount due, the employer shall remit to the plan all
employer contributions.
(b) The employer shall not be liable for employer contributions
for the period of service in the uniformed services if the
participant elects not to remit the employee contributions for that
period through the employer as required under Section 28001. In the
event the participant does not remit all of the employee
contributions within the prescribed repayment period, the total
amount of the employer contributions shall remain with the
plan and credited to the participant's employer account with respect
to the Cash Balance Benefit Program. that were
remitted for that period shall be adjusted pursuant to Section 26302.