BILL NUMBER: SB 541 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 31, 1995
INTRODUCED BY Senator Hughes
FEBRUARY 21, 1995
An act to amend Section 20600 of the Government Code,
relating to public employees. An act to repeal and add
Part 3 (commencing with Section 20000) and Part 3.4 (commencing with
Section 21750) of Division 5 of Title 2 of the Government Code,
relating to the Public Employees' Retirement System.
LEGISLATIVE COUNSEL'S DIGEST
SB 541, as amended, Hughes. Public employees:
retirement Employees' Retirement Law .
The Public Employees' Retirement Law prescribes the
normal rate of member contributions establishes the
Public Employees' Retirement System, and sets forth the provisions
for its administration and the delivery of benefits to its members
.
The bill would make technical nonsubstantive change in
that provision reorganize those provisions and would
state the intent of the Legislature that the bill would not make any
substantive change in the law. It would also provide that any act
enacted in 1995 at the 1995-96 Regular Session of the Legislature
shall prevail over this bill if there would otherwise be a conflict
.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 20600 of the Government Code is amended to
read:
20600. The normal rate of contribution for a member who on the
date upon which this section becomes operative is in state service or
on leave of absence from an employment in which he or she was in
state service shall be the rate applicable to him or her in the rate
schedule established by the board in accordance with this chapter as
it read on the day preceding that operative date, and in effect on
that date.
SECTION 1. Part 3 (commencing with Section 20000) of Division 5 of
Title 2 of the Government Code is repealed.
SEC. 2. Part 3 (commencing with Section 20000) is added to
Division 5 of Title 2 of the Government Code, to read:
PART 3. PUBLIC EMPLOYEES' RETIREMENT SYSTEM
CHAPTER 1. GENERAL PROVISIONS AND DEFINITIONS
Article 1. General Provisions
20000. This part may be cited as the Public Employees' Retirement
Law.
20001. The purpose of this part is to effect economy and
efficiency in the public service by providing a means whereby
employees who become superannuated or otherwise incapacitated may,
without hardship or prejudice, be replaced by more capable employees,
and to that end provide a retirement system consisting of retirement
compensation and death benefits.
20002. The Public Employees' Retirement System created by Chapter
700 of the Statutes of 1931, as amended, is continued in existence
under this part. This system is a unit of the State and Consumer
Services Agency.
20003. Unless the context otherwise requires, the definitions and
general provisions set forth in this chapter govern the construction
of this part.
Article 2. Definitions
20010. "Accumulated additional contributions" means the sum of
all additional contributions standing to the credit of a member's
individual account, and interest thereon.
20011. "Accumulated contributions" means accumulated normal
contributions plus any accumulated additional contributions standing
to the credit of a member's account.
20012. "Accumulated normal contributions" means the sum of all
normal contributions standing to the credit of a member's individual
account, and interest thereon.
20013. "Actuarial equivalent" means a benefit of equal value when
computed upon the basis of the mortality tables adopted and the
actuarial interest rate fixed by the board.
20014. "Actuarial interest rate" means the interest rate fixed by
the board for purposes of actuarial valuation of the assets and
liabilities of this system.
20015. "Actuary" means an actuary regularly employed on a
full-time or part-time basis by the board.
20016. "Additional contributions" means contributions made by
members and their employers in addition to their normal contributions
under Article 2 (commencing with Section 20710) of Chapter 8.
20017. "Annual interest rate" means the net earnings rate reduced
by 110 basis points for purposes of crediting interest.
20018. "Annuity" means payments for life derived from
contributions made by a member.
20019. "Beneficiary" means any person or corporation designated
by a member, a retired member, or by statute to receive a benefit
payable under this part, on account of the death of a member or a
retired member. A member or retired member may also designate the
member's estate as a beneficiary.
All designations of an estate as a beneficiary, which would have
been valid if this section, as amended by Chapter 376 of the Statutes
of 1981, had been in effect at the time the designation was made,
are hereby validated.
20020. "Benefit" means the retirement allowance, basic death
benefit, limited death benefit, special death benefit, any monthly
allowance for survivors of a member or retired person, the insurance
benefit, the partial disability retirement program payment, or refund
of accumulated contributions.
20021. "Board" means the Board of Administration of the Public
Employees' Retirement System.
20022. "Contracting agency" means any public agency that has
elected to have all or any part of its employees become members of
this system and that has contracted with the board for that purpose.
20023. "County peace officer service" shall include service
rendered in the sheriff's office of a city and county in positions
that were subsequently reclassified as positions within the
definition of "county peace officer."
20024. "Current service" means all state service rendered by a
member on and after the date upon which he or she first became a
member, service in employment while not a member but after persons
employed in the status of the member were eligible for membership,
and public service designated as current service under Section 21034.
20025. "Dependent," in reference to any benefit provided, upon
the death of a member, for a surviving dependent parent, or parent
dependent upon the member for support, shall mean receipt of at least
one-half of the parent's support from the member at the time of the
member's death determined according to rules of the board.
20026. "Disability" and "incapacity for performance of duty" as a
basis of retirement, mean disability of permanent or extended and
uncertain duration, as determined by the board, or in the case of a
local safety member by the governing body of the contracting agency
employing the member, on the basis of competent medical opinion.
20027. "Disability," "disabled," or "incapacitated" means, with
respect to qualification for an allowance payable to a surviving
child, inability to engage in any substantial gainful occupation by
reason of any physical or mental impairment that is determined by the
board, on the basis of competent medical or psychiatric opinion, to
be of permanent or extended and uncertain duration.
20028. "Employee" means:
(a) Any person in the employ of the state, a county superintendent
of schools, or the university whose compensation, or at least that
portion of his or her compensation that is provided by the state, a
county superintendent of schools, or the university, is paid out of
funds directly controlled by the state, a county superintendent of
schools, or the university, excluding all other political
subdivisions, municipal, public and quasi-public corporations. "Funds
directly controlled by the state" includes funds deposited in and
disbursed from the State Treasury in payment of compensation,
regardless of their source.
(b) Any person in the employ of any contracting agency, and for
the purposes of this part, and where a county or city and county
becomes a contracting agency, employees and attaches of the superior
court for that county or city and county shall be considered
employees of the contracting agency.
(c) City employees who prior to the effective date of the contract
with the hospital are assigned to a hospital that became a
contracting agency because of subdivision (p) of Section 20057 shall
be deemed hospital employees from and after the effective date of the
contract with the hospital for retirement purposes. City employees
who after the effective date of the contract with the hospital become
employed by the hospital, shall be considered as new employees of
the hospital for retirement purposes.
(d) Any person in the employ of a school employer.
(e) Public health department or district employees who were
employees prior to the date of assumption of the contract by the
governing body of a county of the 15th class shall be deemed public
health department or district employees from and after the effective
date of assumption of the contract for retirement purposes.
Employees who after the effective date of assumption of the contract
become employed by the public health department or district shall be
considered as new employees for retirement purposes.
20029. "Employee federal contributions" means those contributions
required of employees under the federal system with respect to wages
paid to individuals who perform services in employment in any
coverage group included in the federal-state agreement, at the rate
of taxes imposed on employees by Section 3101 of Title 26 of the
United States Code for the respective calendar years set forth
therein.
20030. "Employer" means the state, the university, a school
employer, and any contracting agency employing an employee.
20031. "Employer federal contributions" means those contributions
required of employers under the federal system with respect to wages
paid to individuals who perform services in employment in any
coverage group included in the federal-state agreement, at the rate
of taxes imposed on employers by Section 3111 of Title 26 of the
United States Code for the respective calendar years set forth
therein and all penalties and interest that may be required to be
paid with respect to those wages under the federal-state agreement.
20032. "Federal-state agreement" means the agreement or any
modification thereof executed by the board pursuant to Section 418 of
Title 42 of the United States Code.
20033. "Federal system" means the old age, survivors, disability,
and health insurance provisions of the Social Security Act.
20034. The average monthly salary during any period of service as
a member of any retirement system maintained by the university shall
be considered compensation earnable by a member of this system for
purposes of computing final compensation for the member providing he
or she retires concurrently under both systems.
20035. (a) Notwithstanding Section 20037, "final compensation"
for the purposes of determining any pension or benefit with respect
to a state member who retires or dies on or after July 1, 1991, and
with respect to benefits based on service with the state, means the
highest annual compensation which was earnable by the state member
during the consecutive 12-month period of employment immediately
preceding the effective date of his or her retirement or the date of
his or her last separation from state service if earlier or during
any other period of 12 consecutive months during his or her
membership in this system that the member designates on the
application for retirement.
(b) With respect to a state member who retires or dies on or after
July 1, 1991, and who was a managerial employee, as defined by
subdivision (e) of Section 3513, or a supervisory employee, as
defined by subdivision (g) of Section 3513, whose monthly salary
range was administratively reduced by 5 percent because of the salary
range reductions administratively imposed upon managers and
supervisors during the 1991-92 fiscal year, "final compensation"
means the highest annual compensation the state member would have
earned had his or her salary range not been reduced by the 5-percent
reduction. This subdivision shall only apply if the period during
which the state member's salary was reduced would have otherwise been
included in determining his or her final compensation. The costs,
if any, that may result from the use of the higher final compensation
shall be paid for by the employer in the same manner as other
retirement benefits are funded.
20036. In the computation of the disability retirement allowance
payable upon the retirement of a member for industrial disability,
final compensation shall be determined only with respect to
compensation earnable in the membership category applicable to the
member at the time of the injury or the onset of the disease causing
the disability.
20037. For a state member, or for a local member who is an
employee of a contracting agency that is subject to this section,
"final compensation" means the highest average annual compensation
earnable by a member during the three consecutive years of employment
immediately preceding the effective date of his or her retirement or
the date of his or her last separation from state service if earlier
or during any other period of three consecutive years during his or
her membership in this system which he or she designates in his or
her application for retirement, including any or all of the period or
periods of (a) service required for qualification for membership, or
(b) prior service which qualifies for credit under this system, if
any, immediately preceding membership, or (c) time prior to entering
state service at the compensation earnable by him or her in the
position first held by him or her in that service, as may be
necessary to complete three consecutive years. For the purposes of
this section, periods of service separated by a period of retirement
or breaks in service may be aggregated to constitute a period of
three consecutive years, if the periods of service are consecutive
except for such a period of retirement or breaks. If a break in
service did not exceed six months in duration, time included in the
break and compensation earnable during that time shall be included in
computation of final compensation. If a break in service exceeded
six months in duration, the first six months thereof and the
compensation earnable during those six months shall be included in
computation of final compensation, but time included in the break
which is in excess of six months and the compensation earnable during
that excess time shall be excluded in computation of final
compensation. On and after November 13, 1968, this section shall
apply to all contracting agencies and to the employees of those
agencies whether or not those agencies have previously elected to be
subject to this section, except that this section shall not apply to
an employee of a contracting agency which has not elected to be
subject to this section whose death occurred or whose retirement was
effective prior to November 13, 1968.
20038. Notwithstanding Section 20037, "final compensation," for
the purposes of determining any current service pension, prior
service pension, disability retirement pension or special death
benefit, with respect to a state patrol member who retired prior to
July 1, 1965, means the annual compensation which was payable on July
1, 1964, to state patrol members holding the same position as the
member entitled to receive such pension or benefits.
Notwithstanding former Section 21208, as added by Chapter 1421 of
the Statutes of 1945, and Section 21209, as added by Chapter 1133 of
the Statutes of 1947, this section shall not apply to warden and
forestry members.
The benefits provided by this section shall be in lieu of
cost-of-living benefits granted prior to July 1, 1964.
20039. Notwithstanding any other provision of this part, "final
compensation" of a local member for the purpose of determining any
pension or benefit resulting from state service as an elective or
appointed officer on a city council or a county board of supervisors
accrued while in membership pursuant to Section 20322, shall be based
on the highest average annual compensation earnable by the member
during the period of state service in each elective or appointed
office. Where that elective or appointed service is a consideration
in the computation of any pension or benefit, the member may have
more than one final compensation.
This section shall apply to a local member first elected or
appointed to a city council or a county board of supervisors on or
after July 1, 1994, or elected or appointed to a term of office not
consecutive with the term of office held on June 30, 1994.
20040. Notwithstanding any other provision of this part, "final
compensation," for the purposes of determining any benefits payable
under this part for coverage under the Second Tier, shall not be
reduced by any fraction or amount for any member included in the
federal system.
20041. For a local member who is an employee of a contracting
agency that, by the provisions of its contract with the board, is
subject to Section 20043, and for no other member, "final
compensation," shall be subject to Section 20043, under which a
member, who is afforded an election thereunder, but does not make the
election, may have more than one final compensation.
20042. On the election of a contracting agency, other than a
county superintendent of schools with respect to a contract under
Chapter 6 (commencing with Section 20610), "final compensation" for a
local member employed by that agency whose retirement is effective
or whose death occurs after the date of the election and with respect
to benefits based on service to the agency shall be computed under
Section 20037 but with the substitution of the period of one year for
three consecutive years. An election under this section shall be
made by amendment to the contracting agency's contract made in the
manner prescribed for approval of contracts, except that an election
among the employees is not required, or by express provision of the
contract if exercised at the time of approval of a contract.
20043. The entire compensation of a local member shall be
included in any computation to be made under this part for service
rendered as an employee of a contracting agency, the effective date
of whose contract is on or after July 1, 1952, or whose contract on
its effective date prior to July 1, 1952, contained an election to be
subject to this section.
20044. "Fiscal year" is any year commencing on July 1st and
ending with June 30th next following.
20045. "Highway patrol service" means service rendered as a
member of the California Highway Patrol or, after August 31, 1923,
the highway patrol of any county, only while the member is receiving
compensation from the state or county for that service, except as
provided in Article 4 (commencing with Section 20990) of Chapter 11.
20046. "Industrial," in reference to the death or disability of
any member of this system who is in a membership category under which
special benefits are provided by this part because the death or
disability is industrial, means disability or death as a result of
injury or disease arising out of and in the course of his or her
employment as such a member.
20047. "Industrial" with respect to state miscellaneous members
also means death or disability on or after January 1, 1993, resulting
from an injury that is a direct consequence of a violent act
perpetrated on his or her person by a patient or client of the
Department of Mental Health at Patton State Hospital or Atascadero
State Hospital, an inmate at the Department of Mental Health
Psychiatric Program at California Medical Facility at Vacaville, or a
patient at any other state hospital that is deemed a forensic
facility if:
(a) The member was performing his or her duties within a treatment
ward at the time of the injury, or
(b) The member was not within a treatment ward but was acting
within the scope of his or her employment at the hospital and is
regularly and substantially as part of his or her duties in contact
with the patients or clients, or
(c) The member at the time of injury was employed in a state
bargaining unit for which a memorandum of understanding has been
agreed to by the state employer and the recognized employee
organization to become subject to this section, or
(d) The member was either excluded from the definition of state
employee in subdivision (c) of Section 3513 or was a nonelected
officer or employee of the executive branch of government who was not
a member of the civil service.
(e) This section shall also apply to a state miscellaneous member
who is an employee of the Department of Mental Health at Metropolitan
State Hospital or Napa State Hospital, provided the member meets the
conditions prescribed in this section and his or her injury occurred
on or after January 1, 1995.
20048. "Industrial," with respect to state industrial members,
means death or disability resulting from an injury that is a direct
consequence of a violent act perpetrated on his or her person by an
inmate of a state prison, correctional school or facility of the
Department of Corrections or the Department of the Youth Authority,
or a parolee therefrom, if:
(a) The member was performing his or her duties within the prison,
correctional school or facility of the Department of Corrections or
the Department of the Youth Authority.
(b) The member was not within the prison, correctional school or
facility of the Department of Corrections or the Department of the
Youth Authority, but was acting within the scope of his or her
employment and is regularly and substantially as part of his or her
duties in contact with those inmates or parolees.
20049. "Labor policy or agreement" means any written policy,
agreement, memorandum of understanding, legislative action of the
elected or appointed body governing the employer, or any other
document used by the employer to specify the payrate, special
compensation, and benefits of represented and unrepresented
employees.
20050. "Local safety service" means state service rendered as a
local firefighter, local police officer, county peace officer, local
safety officer, or positions defined as local safety member in
Sections 20421 and 20422 except as provided in Article 1 (commencing
with Section 20890) and Article 4 (commencing with Section 20990) of
Chapter 11.
20051. "Month," except as otherwise expressly provided, means a
period commencing on any day of a calendar month and extending
through the day preceding the corresponding day of the succeeding
calendar month, if there is any corresponding day, and if not,
through the last day of the succeeding calendar month.
20052. "Net earnings" means the earnings of the retirement fund
less the amounts specified in Sections 20173 and 20174.
20053. "Normal contributions" means contributions required to be
paid by a member at the normal rates of contribution fixed by the
law, by contract, or by contract amendment, but does not include
additional contributions.
"Normal contributions" also includes contributions required to be
paid by a member that are in fact paid on behalf of a member by an
employer as defined in Section 20030.
20054. "Pension" means payments for life derived from
contributions made from employer controlled funds.
20055. (a) "Prior service" as applied to a state member who while
employed on a part-time basis became a member because of amendments
of the laws governing this system or because of a change in his or
her employment status to at least a half-time basis, means all state
service rendered by him or her prior to the time he or she became a
member.
(b) As applied to other members, "prior service" means all state
service rendered by:
(1) A university member prior to August 27, 1937.
(2) A state member other than a university member, prior to
January 1, 1932.
(3) A local member or school member prior to the effective date of
the contract under which he or she became a member.
20056. "Public agency" means any city, county, district, other
local authority or public body of or within this state.
20057. "Public agency" also includes the following:
(a) The Commandant, Veterans' Home of California, with respect to
employees of the Veterans' Home Exchange and other post fund
activities whose compensation is paid from the post fund of the
Veterans' Home of California.
(b) Any auxiliary organization operating pursuant to Chapter 7
(commencing with Section 89900) of Part 55 of the Education Code and
in conformity with regulations adopted by the Trustees of the
California State University and any auxiliary organization operating
pursuant to Article 6 (commencing with Section 72670) of Chapter 6 of
Part 45 of the Education Code and in conformity with regulations
adopted by the Board of Governors of the California Community
Colleges.
(c) Any student body or nonprofit organization composed
exclusively of students of the California State University or
community college or of members of the faculty of the California
State University or community college, or both, and established for
the purpose of providing essential activities related to, but not
normally included as a part of, the regular instructional program of
the California State University or community college.
(d) A state organization of governing boards of school districts,
the primary purpose of which is the advancing of public education
through research and investigation.
(e) Any nonprofit corporation whose membership is confined to
public agencies as defined in Section 20056.
(f) A section of the California Interscholastic Federation.
(g) Any credit union incorporated under Division 5 (commencing
with Section 14000) of the Financial Code, or incorporated pursuant
to federal law, with 95 percent of its membership limited to
employees who are members of or retired members of this system or the
State Teachers' Retirement System, and their immediate families, and
employees of any credit union. For the purposes of this
subdivision, "immediate family" means those persons related by blood
or marriage who reside in the household of a member of the credit
union who is a member of or retired member of this system or the
State Teachers' Retirement System. The credit union shall pay any
costs that are in addition to the normal charges required to enter
into a contract with the board. All the payments made by the credit
union that are in addition to the normal charges required shall be
added to the total amount appropriated by the Budget Act for the
administrative expense of this system. For purposes of this
subdivision, a credit union shall not be deemed to be a public agency
unless it has entered into a contract with the board pursuant to
Chapter 5 (commencing with Section 20460 ) prior to January 1, 1988.
After January 1, 1988, the board shall not enter into a contract
with any credit union as a public agency.
(h) Any county superintendent of schools that was a contracting
agency on July 1, 1983, and any school district or community college
district that was a contracting agency with respect to local
policemen, as defined in Section 20430, on July 1, 1983.
(i) Any school district or community college district that has
established a police department, pursuant to Section 39670 or 72330
of the Education Code, and has entered into a contract with the board
on or after January 1, 1990, for school safety members, as defined
in Section 20444.
(j) A nonprofit corporation formed for the primary purpose of
assisting the development and expansion of the educational, research,
and scientific activities of a district agricultural association
formed pursuant to Part 3 (commencing with Section 3801) of Division
3 of the Food and Agricultural Code, and the nonprofit corporation
described in the California State Exposition and Fair Law (former
Article 3 (commencing with Section 3551) of Chapter 3 of Part 2 of
Division 3 of the Food and Agricultural Code, as added by Chapter 15
of the Statutes of 1967).
(k) A public or private nonprofit corporation that operates a
regional center for the developmentally disabled in accordance with
Chapter 5 (commencing with Section 4620) of Division 4.5 of the
Welfare and Institutions Code. "Public agency" for purposes of this
part shall only constitute the employees of the regional center.
Notwithstanding any other provision of this part, the agency may
elect by appropriate provision or amendment of its contract not to
provide credit for service prior to the effective date of its
contract.
(l) Independent data-processing centers formed pursuant to former
Article 2 (commencing with Section 10550) of Chapter 6 of Part 7 of
the Education Code, as it read on December 31, 1990. An agency
included pursuant to this subdivision shall only provide benefits
that are identical to those provided to a school member.
(m) Any local agency formation commission.
(n) A nonprofit corporation organized for the purpose of and
engaged in conducting a citrus fruit fair as defined in Section 4603
of the Food and Agricultural Code.
(o) (1) A public or private nonprofit corporation that operates an
independent living center providing services to severely handicapped
people and established pursuant to federal P.L. 93-112, that
receives the approval of the board, and that provides at least three
of the following services:
(A) Assisting severely handicapped people to obtain personal
attendants who provide in-home supportive services.
(B) Locating and distributing information about housing in the
community usable by severely handicapped people.
(C) Providing information about financial resources available
through federal, state and local government, and private and public
agencies to pay all or part of the cost of the in-home supportive
services and other services needed by severely handicapped people.
(D) Counseling by people with similar disabilities to aid the
adjustment of severely handicapped people to handicaps.
(E) Operation of vans or buses equipped with wheelchair lifts to
provide accessible transportation to otherwise unreachable locations
in the community where services are available to severely handicapped
people.
(2) "Public agency" for purposes of this part shall constitute
only the employees of the independent living center.
(3) Notwithstanding any other provisions of this part, the public
or private nonprofit corporation may elect by appropriate provision
or amendment of its contract not to provide credit for service prior
to the effective date of its contract.
(p) A hospital that is managed by a city legislative body in
accordance with Article 8 (commencing with Section 37650) of Chapter
5 of Part 2 of Division 3 of Title 4.
(q) (1) Except as provided in paragraph (2), "public agency" also
includes any entity formed pursuant to the Federal Job Training
Partnership Act of 1982 (29 U.S.C. Sec. 1501 et seq.) or Division 8
(commencing with Section 15000) of the Unemployment Insurance Code.
(2) "Public agency," for purposes of this part, does not include a
private industry council as set forth in the Federal Job Training
Partnership Act of 1982 (29 U.S.C. Sec. 1501 et seq.) or Division 8
(commencing with Section 15000) of the Unemployment Insurance Code.
(r) The Tahoe transportation district that is established by
Article IX of Section 66801.
(s) The California Firefighter Joint Apprenticeship Program formed
pursuant to Chapter 4 (commencing with Section 3070) of Division 3
of the Labor Code.
(t) A public health department or district that is managed by the
governing body of a county of the 15th class, as defined by Sections
28020 and 28036, as amended by Chapter 1204 of the Statutes of 1971.
(u) A nonprofit corporation or association conducting an
agricultural fair pursuant to Section 25905 may enter into a contract
with the board for the participation of its employees as members of
this system, upon obtaining a written advisory opinion from the
United States Department of Labor that the participation of the
officers and employees of the nonprofit corporation or association in
this system would not affect this system's exemption as a
governmental plan under Section 1001 et seq. of Title 29 of the
United States Code. The nonprofit corporation or association shall
be deemed a "public agency" only for that purpose.
20058. (a) "Retirement system" or "this system" means the Public
Employees' Retirement System.
(b) As used in this code and in every other statute heretofore or
hereafter enacted, or in every contract heretofore or hereafter
entered into under any provisions of law, the term "State Employees'
Retirement Law" shall be construed to refer to and mean the "Public
Employees' Retirement Law"; the term "State Employees' Retirement
System" shall be construed to refer to and mean the "Public Employees'
Retirement System"; and the term "State Employees' Retirement Fund"
shall be construed to refer to and mean the "Public Employees'
Retirement Fund."
20059. "Regular interest" means interest at the annual interest
rate for purposes of crediting of interest, compounded annually.
20060. "Retirement" means the granting of a retirement allowance
under this part.
20061. "Retirement allowance" means the service retirement
allowance or the disability retirement allowance.
20062. "Retirement fund" means the Public Employees' Retirement
Fund continued in existence by this part.
20063. "School employer" means a county superintendent of
schools, other than the Los Angeles County Superintendent of Schools
and the San Diego County Superintendent of Schools, that has entered
into a contract with the board pursuant to Chapter 6 (commencing with
Section 20610) and any school district or community college district
that was a contracting agency on July 1, 1983, excluding that
portion of a contract with the Los Angeles City Unified School
District and the Los Angeles Community College District that pertains
to local police officers, as defined in Section 20430, on July 1,
1983, and excluding a school district or a community college
district, as defined in subdivision (i) of Section 20057, that
entered into a contract with the board on or after January 1, 1990,
and whose employees are school safety members, as defined in Section
20444.
20064. "School safety service" includes service rendered as a
school safety member in employment with a school district or
community college district, as defined in subdivision (i) of Section
20057.
20065. An employee is "serving on a part-time basis" when he or
she engages in his or her duties for less time than is required of
employees serving on a full-time basis, even though he or she is
subject to call at any time.
20066. "State peace officer/firefighter service" means service
rendered as a state peace officer/firefighter member only while
receiving compensation for that service, except as provided in
Article 4 (commencing with Section 20990) of Chapter 11. It also
includes service rendered in an employment in which persons have
since become state peace officer/firefighter members.
20067. "State peace officer/firefighter service," with respect to
a member who becomes a state peace officer/firefighter member
pursuant to Section 20394, also includes service prior to July 1,
1986, as an employee of the California State University.
20068. (a) "State safety service" means service rendered as a
state safety member only while receiving compensation for that
service, except as provided in Article 4 (commencing with Section
20990 ) of Chapter 11. It also includes service rendered in an
employment in which persons have since become state safety members
and service rendered prior to April 1, 1973, and falling within the
definition of warden, forestry, and law enforcement service under
this chapter prior to April 1, 1973.
(b) "State safety service" with respect to a member who becomes a
state safety member pursuant to Section 20405 shall also include
service prior to the date on which he or she becomes a state safety
member as an officer or employee of the Adult Authority, Department
of Corrections, Prison Industry Authority, or the Department of the
Youth Authority.
(c) "State safety service" with respect to a member who becomes a
state safety member pursuant to Sections 20409 and 20410 shall also
include service in a class specified in these sections or service
pursuant to subdivision (a), prior to September 27, 1982.
(d) "State safety service," with respect to a member who becomes a
state safety member pursuant to Sections 20414 and 20415, shall also
include service prior to the operative date of the section as an
officer or employee of the Department of Parks and Recreation or the
Military Department.
(e) "State safety service" does not include service in classes
specified in Section 20407 prior to January 1, 1989.
(f) "State safety service" does not include service in classes
specified in Section 20408 prior to January 1, 1990.
20069. (a) "State service" means service rendered as an employee
or officer (employed, appointed or elected) of the state, the
university, a school employer, or a contracting agency, for
compensation, and only while he or she is receiving compensation from
that employer therefor, except as provided in Article 4 (commencing
with Section 20990) of Chapter 11.
(b) "State service," solely for purposes of qualification for
benefits and retirement allowances under this system, shall also
include service rendered as an officer or employee of a county if the
salary for the service constitutes compensation earnable by a member
of this system under Section 20638.
20070. "1959 survivor allowance" means the allowance provided for
in Sections 21571, 21572, and 21573.
20071. "University" means the University of California and
includes The Regents of the University of California as defined and
authorized by Section 9 of Article IX of the California Constitution.
CHAPTER 2. ADMINISTRATION OF SYSTEM
Article 1. The Board of Administration
20090. The Board of Administration of the Public Employees'
Retirement System is continued in existence. It consists of:
(a) One member of the State Personnel Board, selected by and
serving at the pleasure of the State Personnel Board.
(b) The Director of the Department of Personnel Administration.
(c) The Controller.
(d) The State Treasurer.
(e) An official of a life insurer and an elected official of a
contracting agency, appointed by the Governor.
(f) One person representing the public, appointed jointly by the
Speaker of the Assembly and the Senate Committee on Rules.
(g) Six members elected under the supervision of the board as
follows:
(1) Two members elected by the members of this system from the
membership thereof.
(2) A member elected by the active state members of this system
from the state membership thereof.
(3) A member elected by and from the active local members of this
system who are employees of a school district or a county
superintendent of schools.
(4) A member elected by and from the active local members of this
system other than those who are employees of a school district or a
county superintendent of schools.
(5) A member elected by and from the retired members of this
system.
20091. The members of the board appointed by the Governor
pursuant to subdivision (e) of Section 20090, the public member
appointed jointly by the Senate Committee on Rules and the Speaker of
the Assembly pursuant to subdivision (f) of Section 20090, and any
retired person serving on the board pursuant to subdivision (g) of
Section 20090 shall receive one hundred dollars ($100) for every day
or portion thereof of actual attendance at meetings of the board or
any meeting of any committee of the board of which committee the
person is a member and which meeting is conducted for the purpose of
carrying out the powers and duties of the board, together with their
necessary traveling expenses incurred in connection with performance
of their official duties.
20092. Each employing agency that employs an elected member of
the board and that employs a person to replace the member during
attendance at meetings of the board, or meetings of committees or
subcommittees of the board, or when serving as a panel member of this
system, or when carrying out other powers or duties as may be
approved by the board, shall be reimbursed from the retirement fund
for the costs incurred by employing a replacement, not to exceed 25
percent of the member's total annual compensation.
20093. The members of the board shall serve without compensation,
but shall be reimbursed for actual and necessary expenses incurred
through service on the board.
20094. The counsel to the board shall notify each new member of
the board upon his or her assumption of office and each member of the
board annually that he or she is subject to the gift provisions of,
Chapter 9.5 (commencing with Section 89500) of Title 9.
20095. The term of office of members of the board is four years
expiring on January 15 in the order fixed by law. The board shall
hold special elections to fill vacancies which occur during the term
of elected members of the board. If at the time a vacancy occurs,
the unexpired term is less than two years, the new member elected to
fill that vacancy shall hold office for a period equal to the
remainder of the term of the vacated office plus four years.
The Governor or the Speaker of the Assembly and the Senate
Committee on Rules, as the case may be, shall fill a vacancy of a
member appointed pursuant to subdivision (e) or (f) of Section 20090
by the appointment of a person having the requisite qualifications
for the remainder of the vacated term of office.
Notwithstanding any other provision of this part, any person
elected to the board under Section 20090 shall be entitled to hold
that office until the end of the term.
20096. The board shall cause ballots to be distributed to each
active and retired member of this system in advance of each election,
and shall provide for the return of the voted ballots to the board
without cost to the member. The board shall develop election
procedures that shall be subject to review, approval, and
certification by the Secretary of State. The results shall be
certified by the Secretary of State. The board may require all
persons who perform election duties to certify, under penalty of
perjury, that they properly performed those duties.
20097. The board shall maintain its office in the City of
Sacramento. A quorum of the board is seven members. The board shall
elect a president from its membership.
20098. The board shall appoint and fix the compensation of an
executive officer, assistant executive officers, and other necessary
employees. The executive officer and the assistant executive
officers may administer oaths.
20099. The board may appoint a committee of one or more of its
members to perform any act within the power of the board itself to
perform. The board may also delegate authority to the executive
officer to perform those acts. Except where the board, in delegating
authority to a committee or the executive officer, provides that the
committee or the executive officer may act finally, all acts of the
committee or the executive officer shall be reported to the board, at
its next regular meeting, and shall be subject to review and
ratification or reversal by the board.
Reversal by the board of any act of the committee or the executive
officer shall be effective as of the date fixed by the board, but
payment of benefits prior to board action shall not be affected by
that action, except for such recovery of amounts paid from the person
to whom they were paid as the board may direct.
The executive officer may delegate to his or her subordinates any
act or duty unless the board by motion or resolution recorded in the
minutes has required him or her to act personally.
Article 2. Powers and Duties of the Board
20120. The management and control of this system is vested in the
board.
20121. The board may make such rules as it deems proper.
20122. Each member and each person retired is subject to this
part and the rules adopted by the board.
20123. Subject to this part and its rules, the board shall
determine and may modify benefits for service and disability.
20124. The board shall adjust the payment of benefits payable
pursuant to this part, as necessary, in order to maximize the
benefits available to members who are subject to the limits of
Section 415 of Title 26 of the United States Code. Those adjustments
shall include, but are not limited to, cost-of-living adjustments,
cost-of-living banks, temporary annuities, survivor continuance
benefits, or any combinations thereof.
20125. The board shall determine who are employees and is the
sole judge of the conditions under which persons may be admitted to
and continue to receive benefits under this system.
20126. Refusal by this system to admit liability pursuant to any
provision of this part shall not be considered arbitrary or
capricious action or conduct within the meaning of Section 800, or
any other provision of law.
20127. The board may require a member to provide evidence of his
or her entitlement to benefits under the federal system.
20128. Notwithstanding any other provision of law, the board may
require a member or beneficiary to provide information it deems
necessary to determine this system's liability with respect to, and
an individual's entitlement to, benefits prescribed by this part.
20129. The board shall secure and pay reasonable compensation for
medical service and advice necessary to discharge its duties
respecting matters involving disability or death, or both.
20130. The board may enter into an agreement with the State
Compensation Insurance Fund under which the latter shall represent
this system, as its agent, or the Attorney General under which the
latter shall represent this system, in proceedings instituted or to
be instituted before the Workers' Compensation Appeals Board as may
be referred to it by the board to determine whether the death or
disability of a member is industrial. The agreed cost of this
service and the expenses incidental thereto shall be paid from the
retirement fund, except that there shall be no charge to this system
by the Attorney General in cases involving members of this system who
are employees of the General Fund state agencies.
20131. The board shall keep in convenient form data necessary for
the actuarial valuation of this system.
20132. (a) Upon the basis of any investigation, valuation, or
determination, or all of these, the board shall adopt mortality,
service and other tables and annual and actuarial interest rates it
deems necessary.
(b) A change in interest rate adopted by the board shall not apply
to any election of a member to deposit or redeposit contributions,
including interest, filed prior to the date the change was placed
into effect.
20133. As of June
30, 1991, and thereafter at the end of periods not to exceed four
years, the actuary shall make an actuarial investigation into the
mortality, service, and compensation experience of members and
persons receiving benefits and an actuarial valuation of the assets
and liabilities of this system. From time to time, the actuary shall
determine the rate of interest being earned on the retirement fund
after deducting from earnings amounts applied to costs of
administration of this system.
20134. The board may, in its discretion, hold a hearing for the
purpose of determining any question presented to it involving any
right, benefit, or obligation of a person under this part. Where a
hearing is held, the proceedings shall be conducted in accordance
with Chapter 5 (commencing with Section 11500) of Part 1 of Division
3, and the board shall have all of the powers granted therein; except
that Section 11508 shall not apply, and the hearing shall be held at
the time and place determined by the board.
20135. To the extent possible, the board shall resolve conflicts
between retirement systems applicable to state hospital employees
transferred to county or local mental health programs as a result of
state hospital closures or scheduled state hospital closures.
20136. The board shall investigate the feasibility of developing
an additional benefit plan under this part to consist of a return of
contributions benefit plan.
The board shall consult with contracting agencies, representatives
of employee organizations of contracting agencies, and appropriate
legislative staff members in conjunction with this investigation.
20137. The board may employ six additional auditors to audit
reports submitted by employers.
20138. (a) Notwithstanding any other provisions of law, the board
shall provide by rule for conducting structured preretirement
information seminars. The seminars shall be for the benefit of all
members who have attained age 45.
(b) The board shall devise plans for, and in cooperation with
appointing powers, design structured seminars to enhance awareness of
the features, benefits, and services of this system. Seminars shall
include information to assist members to understand the importance
of financial and estate planning and how choices and options offered
by this system may impact retirement security.
Article 3. Fiduciary Duties
20150. A board member or employee of the board shall not,
directly or indirectly:
(a) Have any interest in the making of any investment, or in the
gains or profits accruing therefrom.
(b) For himself or herself or as an agent or partner of others,
borrow any funds or deposits of this system, nor use those funds or
deposits in any manner except to make current and necessary payments
authorized by the board.
(c) Become an indorser, surety or obligor on investments by the
board.
20151. The board and its officers and employees shall discharge
their duties with respect to this system solely in the interest of
the participants and beneficiaries:
(a) For the exclusive purpose of both of the following:
(1) Providing benefits to members, retired members, and their
survivors and beneficiaries.
(2) Defraying reasonable expenses of administering this system.
(b) Minimizing the employers' costs of providing benefits under
this part.
(c) By investing with the care, skill, prudence, and diligence
under the circumstances then prevailing that a prudent person acting
in a like capacity and familiar with those matters would use in the
conduct of an enterprise of a like character and with like aims.
20152. Notwithstanding Section 13340, there is hereby
continuously appropriated, without regard to fiscal years, from the
retirement fund to the board, the amount necessary to pay for any
insurance obtained pursuant to Section 7511, which payments shall be
made upon warrants drawn by the Controller upon demands made by the
board.
20153. During any process involving a request for proposal or the
selection of any vendor or contractor for goods or services by the
board, no member shall communicate concerning any matter relating to
the request for proposal or selection with any applicant or bidder,
or an officer or employee of an applicant or bidder, outside of the
application or bidding process. This section shall apply to
investment products, including, but not limited to, bonds, real
estate, and stocks.
Article 4. Correction of Errors and Omissions
20160. (a) Subject to subdivisions (c) and (d), the board may, in
its discretion and upon any terms it deems just, correct the errors
or omissions of any active or retired member, or any beneficiary of
an active or retired member, provided that all of the following facts
exist:
(1) The request, claim, or demand to correct the error or omission
is made by the party seeking correction within a reasonable time
after discovery of the right to make the correction, which in no case
shall exceed six months after discovery of this right.
(2) The error or omission was the result of mistake, inadvertence,
surprise, or excusable neglect, as each of those terms is used in
Section 473 of the Code of Civil Procedure.
(3) The correction will not provide the party seeking correction
with a status, right, or obligation not otherwise available under
this part.
Failure by a member or beneficiary to make the inquiry that would
be made by a reasonable person in like or similar circumstances does
not constitute an "error or omission" correctable under this section.
(b) Subject to subdivisions (c) and (d), the board shall correct
all actions taken as a result of errors or omissions of the
university, any contracting agency, any state agency or department,
or this system.
(c) The duty and power of the board to correct mistakes, as
provided in this section, shall terminate upon the expiration of
obligations of this system to the party seeking correction of the
error or omission, as those obligations are defined by Section 20164.
(d) The party seeking correction of an error or omission pursuant
to this section has the burden of presenting documentation or other
evidence to the board establishing the right to correction pursuant
to subdivisions (a) and (b).
(e) Corrections of errors or omissions pursuant to this section
shall be such that the status, rights, and obligations of all parties
described in subdivisions (a) and (b) are adjusted to be the same
that they would have been if the act that would have been taken, but
for the error or omission, was taken at the proper time. However,
notwithstanding any of the other provisions of this section,
corrections made pursuant to this section shall adjust the status,
rights, and obligations of all parties described in subdivisions (a)
and (b) as of the time that the correction actually takes place if
the board finds any of the following:
(1) That the correction cannot be performed in a retroactive
manner.
(2) That even if the correction can be performed in a retroactive
manner, the status, rights, and obligations of all of the parties
described in subdivisions (a) and (b) cannot be adjusted to be the
same that they would have been if the error or omission had not
occurred.
(3) That the purposes of this part will not be effectuated if the
correction is performed in a retroactive manner.
20161. Notwithstanding any other provision of this part or of
Section 13943.2 or 16302.1 to the contrary, this system may dispense
with any recalculation of, or other adjustment to, benefit payments,
and shall not effect a collection or return of accumulated
contributions when there has been a payment of retirement or death
benefits or a return of accumulated contributions, and either (a)
there is a plus or minus balance of fifty dollars ($50) or less
remaining posted to a member's individual account, or (b) the balance
exceeds fifty dollars ($50) but the difference to the monthly
allowance unmodified by any optional settlement is less than one
dollar ($1).
20162. Notwithstanding Section 20160 or Section 20163 or any
other provision of this part, this system may refrain from collecting
an underpayment of accumulated contributions, whenever the amount to
be collected is fifty dollars ($50) or less.
20163. If more or less than the correct amount of contribution
required of members, the state, or any contracting agency, is paid,
proper adjustment shall be made in connection with subsequent
payments, or the adjustments may be made by direct cash payments
between the member, state, or contracting agency concerned and the
board or by adjustment of the employer's rate of contribution.
Adjustments to correct any other errors in payments to or by the
board, including adjustments of contributions, with interest, that
are found to be erroneous as the result of corrections of dates of
birth, may be made in the same manner. Adjustments to correct
overpayment of a retirement allowance may also be made by adjusting
the allowance so that the retired person or the retired person and
his or her beneficiary, as the case may be, will receive the
actuarial equivalent of the allowance to which the member is
entitled. Losses or gains resulting from error in amounts within the
limits set by the State Board of Control for automatic writeoff, and
losses or gains in greater amounts specifically approved for
writeoff by the State Board of Control, shall be debited or credited,
as the case may be, to the reserve against deficiencies in interest
earned in other years, losses under investments, and other
contingencies.
No adjustment shall be made because less than the correct amount
of normal contributions was paid by a member if the board finds that
the error was not known to the member and was not the result of
erroneous information provided by him or her to this system or to his
or her employer and the failure to adjust shall not preclude action
under Section 20160 correcting the date upon which the person became
a member.
The actuarial equivalent under this section shall be computed on
the basis of the mortality tables and actuarial interest rate in
effect under this system on December 1, 1970, for retirements
effective through December 31, 1979. Commencing with retirements
effective January 1, 1980, and at corresponding 10-year intervals
thereafter, or more frequently at the board's discretion, the board
shall change the basis for calculating actuarial equivalents under
this article to agree with the interest rate and mortality tables in
effect at the commencement of each 10-year or succeeding interval.
20164. (a) The obligations of this system to its members continue
throughout their respective memberships, and the obligations of this
system to and in respect to retired members continue throughout the
lives of the respective retired members, and thereafter until all
obligations to their respective beneficiaries under optional
settlements have been discharged. The obligations of the state and
contracting agencies to this system in respect to members employed by
them, respectively, continue throughout the memberships of the
respective members, and the obligations of the state and contracting
agencies to this system in respect to retired members formerly
employed by them, respectively, continue until all of the obligations
of this system in respect to those retired members, respectively,
have been discharged. The obligations of any member to this system
continue throughout his or her membership, and thereafter until all
of the obligations of this system to or in respect to him or her have
been discharged.
(b) For the purposes of payments into or out of the retirement
fund for adjustment of errors or omissions, whether pursuant to
Section 20160, 20163, or 20532, or otherwise, the period of
limitation of actions shall be three years, and shall be applied as
follows:
(1) In cases where this system makes an erroneous payment to a
member or beneficiary, this system's right to collect shall expire
three years from the date of payment.
(2) In cases where this system owes money to a member or
beneficiary, the period of limitations shall not apply.
(3) In cases where payment is erroneous because of the death of
the retired member or beneficiary or because of the remarriage of the
beneficiary, the period of limitation shall commence with the
discovery of the erroneous payment.
(c) Notwithstanding subdivision (b), where any payment has been
made as a result of fraudulent reports for compensation made, or
caused to be made, by a member for his or her own benefit, the period
of limitation shall be 10 years and that period shall commence
either from the date of payment or upon discovery of the fraudulent
reporting, whichever date is later.
(d) The board shall determine the applicability of the period of
limitations in any case, and its determination with respect to the
running of any period of limitation shall be conclusive and binding
for purposes of correcting the error or omission.
Article 5. The Retirement Fund
20170. The Public Employees' Retirement Fund in the State
Treasury is continued in existence.
The Public Employees' Retirement Fund is a trust fund created, and
administered in accordance with this part, solely for the benefit of
the members and retired members of this system and their survivors
and beneficiaries.
20171. The board has the exclusive control of the administration
and investment of the retirement fund.
20172. Notwithstanding any other provision of law, the board may
retain a bank or trust company to serve as custodian for safekeeping,
delivery, securities valuation, investment performance reporting,
and other services in connection with investment of the retirement
fund. Notwithstanding Section 13340, all moneys in the fund are
continuously appropriated, without regard to fiscal years, for
payments which shall be made upon warrants drawn by the Controller
upon demands made by the board. Upon demand of the board, warrants
shall be drawn for the purpose of making payments by electronic fund
transfers.
20173. Costs of administration of this system shall be paid from
funds appropriated for interest income from the retirement fund.
20174. Interest earned on any cash deposit in a bank by the
Treasurer and income on other assets constituting a part of the fund
shall be credited to the fund as received. Income, of whatever
nature, earned on the retirement fund during any fiscal year, in
excess of the interest credited to contributions during that year
shall be retained in the fund as a reserve against deficiencies in
interest earned in other years, losses under investments,
court-mandated costs, and actuarial losses resulting from
terminations, mergers, and dissolutions of contracting agencies.
Unless specifically authorized by this part, no funds in the
reserve against deficiencies shall be available for the payment of
benefits. The board, however, may apply to reduce the book value of
securities purchased all or part of the excess of the proceeds of the
sale or the redemption prior to maturity of securities over the book
value of the securities sold (a) if the purchase of securities is
made with those proceeds and (b) if the terms of both securities from
the date of sale, redemption prior to maturity, or purchase, as the
case may be, to the respective dates of maturity do not differ by
more than five years. All applications of these excess proceeds,
even with greater differences in terms, heretofore made by the board
are hereby validated and confirmed.
At the end of each fiscal year, the amount in the reserve against
deficiencies that exceeds 0.20 percent of the total assets of this
system shall be credited to other accounts as prescribed by this
part.
20175. Notwithstanding any other provision of law, funds in the
reserve against deficiencies shall not be used to pay any employers'
contribution required by this chapter to be paid by the state, any
school employer, or any contracting agency.
20176. Notwithstanding any other provision of law, no funds in
the retirement fund shall be expended for any purpose other than the
cost of administration of this system, investments for the benefit of
this system, the reduction of employer contributions, and the
provision of benefits to the members and retired members of this
system and their survivors and beneficiaries.
20177. The board shall deposit monthly in the State Treasury to
the credit of the retirement fund all amounts received by it under
this part.
20178. (a) The board shall credit all contributions of members in
the retirement fund with interest at an interest crediting rate of 6
percent compounded at each June 30. The retired member reserves in
the retirement fund shall be credited with the lesser of the current
actuarial interest rate or the current annual interest rate
compounded at each June 30. The interest amount that would have been
credited to the member's account on and after June 30, 1991, had the
account been credited with the lesser of the current actuarial
interest rate or the current annual interest rate, rather than at the
6 percent interest crediting rate, shall be credited to retirement
member reserves.
(b) Notwithstanding subdivision (a), the difference between the
interest amount that was credited to the account of any member of
this system who was paid his or her accumulated contributions on or
after June 30, 1991, and the lesser of the current actuarial interest
rate or the current annual interest rate, shall be transferred to
the account established by the board under Section 21337 to fund the
purchasing power protection allowance.
(c) If the current net earnings rate exceeds the interest rate
used to credit the retired member accounts, in addition to the amount
transferred to the fund established under Section 21337, the
remaining amount shall be credited to employer accounts.
(d) The current annual interest rate may be lower than the current
actuarial interest rate.
Article 6. Investments
20190. The board has exclusive control of the investment of the
retirement fund. Except as otherwise restricted by the California
Constitution and by law, the board may, in its discretion, invest the
assets of the fund through the purchase, holding, or sale thereof of
any investment, financial instrument, or financial transaction when
the investment, financial instrument, or financial transaction is
prudent in the informed opinion of the board.
20191. The board may itself make any investment authorized by law
or sell any security, obligation, or real property in which moneys
in the retirement fund are invested, by affirmative vote of at least
seven members of the board, or by the same affirmative vote may from
time to time adopt an investment resolution that shall contain
detailed guidelines by which to designate those securities and real
property that are acceptable for purchase. While the resolution is
in effect, securities and real property may be purchased for
investment by an officer or employee of the board designated by it
for that purpose, and sales of securities may be consummated by the
officer or employee under the conditions prescribed. Purchases and
sales of securities shall be reported to the board, on a monthly
basis, at its next regular meeting.
20192. In addition to the other investments authorized by this
article, the board may invest in real estate and leases thereof and
improvements thereon for business or residential purposes as an
investment for the production of income.
20193. The board may invest the money in the retirement fund in
real property or improvements thereon or to be constructed thereon
when the real property or improvements are acquired or to be made by
or for sale or lease to the state or a public agency. The board may
acquire the real property under Part 11 (commencing with Section
15850) of Division 3. Title to real property acquired by or on
behalf of the board pursuant to this section or under Part 11
(commencing with Section 15850) of Division 3 shall be vested in the
board. The Director of General Services on behalf of the state may
hire or lease as lessee real property or improvements acquired
pursuant to this section for lease to the state. The lease may
contain an option or options to purchase the property, or a provision
that title to the property shall vest in the state at the expiration
of the term, and the Director of General Services is authorized to
acquire the property. The board also may invest money in any valid
special obligations of the state or a public agency or an agency of
either issued to finance a public building and secured solely by the
building or revenues, rentals or receipts received from operation of
the building. This section shall not be construed as authorization to
acquire any real property or improvements thereon or to issue any
obligation to finance the acquisition on behalf of the state unless
that acquisition is authorized by a separate act or appropriation
enacted by the Legislature.
20194. (a) Notwithstanding any other provision of law, the board
shall give first priority to investing not less than 25 percent of
all funds which become available in a fiscal year for new
investments, in the following:
(1) Obligations secured by a lien or charge solely on residential
realty, including rental housing, located in the state and on the
security of which, commercial banks are permitted to make loans
pursuant to Article 2 (commencing with Section 1220) of Chapter 10 of
Division 1 of the Financial Code.
(2) Securities representing a beneficial interest in a pool of
obligations secured by a lien or charge solely on residential realty
located in the state.
(3) Certificates of deposit issued by savings and loan
associations, if the savings and loan associations agree to make
loans, or to fund tax-exempt notes or bonds issued by housing
authorities, cities, or counties, on residential realty located in
the state, including rental housing, in an amount equal to the amount
of the deposit.
(b) Funds subject to investment pursuant to this section include
all moneys received as employer and member contributions, investment
income, and the proceeds from all net gains and losses from
securities, reduced by the amount of benefit payments and withdrawals
occurring during the fiscal year. In computing the amount of
investment pursuant to this section, a dollar-for-dollar credit shall
be given for residential realty investments described in this
section that are contractually agreed to be made by a financial
institution from which the board, in consideration thereof, purchases
other investments. In computing the amount of investment pursuant
to this section, the board may elect to include the dollar amount of
commitments to purchase mortgages from public revenue bond programs
in the year the commitment is given. However, that election may not
exceed one-fifth of the
total guideline amount.
(c) Nothing in this section shall be construed to require the
acquisition of any instrument or security at less than the market
rate.
(d) If the board determines during any fiscal year that compliance
with this section will result in lower overall earnings for the fund
than obtainable from alternative investment opportunities that would
provide equal or superior security, including guarantee of yield,
the board may substitute those higher yielding investments, to the
extent actually available for acquisition, for the investments
otherwise specified by this section. Additionally, if, and to the
extent that, adherence to the diversification guideline specified in
this section would conflict with its fiduciary obligations in
violation of Section 9 of Article I of the California Constitution or
Section 10 of Article I of the United States Constitution, or would
conflict with the standard for prudent investment of the fund set
forth in Section 17 of Article XVI of the California Constitution,
the board may substitute alternative investments. In that case, the
board shall estimate the amount of funds available for investment in
substitute alternative investments and the amount of funds invested
pursuant to the first paragraph of this section and shall submit its
resolution of findings and determinations, together with a
description of the type, quantity, and yield of the investments
substituted, to the Governor and to the Joint Committee on
Legislative Audit within 20 days following the conclusion of the
fiscal year. Within 30 days thereafter, the Joint Committee on
Legislative Audit shall transmit the State Auditor's report to the
Speaker of the Assembly and to the Senate Committee on Rules for
transmittal to affected policy committees.
(e) The board, upon determining the final amount of funds
available for investment in substitute alternative investments and
the estimated amount of funds invested pursuant to the first
paragraph of this section, shall submit that information to the
Governor and the Joint Committee on Legislative Audit. Thereafter,
the Joint Committee on Legislative Audit shall transmit the report of
the State Auditor to the Speaker of the Assembly and the Senate
Committee on Rules for transmittal to the affected policy committees.
20195. (a) The board may select, purchase, or acquire in the name
of the system, the fee or any lesser interest in real property,
improved or unimproved, and may construct or remodel, and equip, an
office building, including appropriate satellite structures, in the
County of Sacramento, California, for its use and for the use of the
State Teachers' Retirement System, other state retirement systems,
other departments, boards, and agencies of the state, or appropriate
private commercial entities as space may be available from time to
time. The office building and satellite structures shall conform to
the Capital Master Plan if located within an area subject to the
plan.
(b) In the event that the board acquires bare land, improvements
shall be constructed according to plans approved by the State Public
Works Board and Department of General Services.
(c) In the event that the board acquires land with improvements
thereon, the improvements shall be remodeled or completed in
accordance with plans approved by the State Public Works Board and
Department of General Services.
(d) In the event that condemnation of the property selected is
necessary, the board may elect to deposit the funds deemed necessary
with the Treasurer. The funds are appropriated for purchase of the
selected property subject to the Property Acquisition Law.
(e) Work on all projects shall be done under contract awarded to
the lowest responsible bidder pursuant to bidding procedures set
forth in Part 2 (commencing with Section 10100) of the Public
Contract Code.
20196. The board may contract with the Department of General
Services or any other state department for assistance and supervision
in the acquisition of real property and the construction thereon of
buildings and improvements authorized in this article.
20197. All buildings and improvements constructed by the board
under this article may contain space in excess of the immediate
requirements of the board that, until needed, may be leased by the
board at rates that are not less than fair market value and upon such
terms and conditions as may be approved by the board. However, the
rental charged shall be at least sufficient to pay a reasonable rate
of return to the board of the cost, including interest thereon, of
construction and maintenance of the excess space.
The board may contract with the Department of General Services to
handle the rentals of any excess space over and above that required
by the board and to furnish general supervision and maintenance of
buildings and improvements constructed under the provisions of this
article.
20198. Any building or improvement constructed by the board under
this article shall be subject to the supervision of the board in
accordance with rules and regulations established by the board with
the assistance of the Department of General Services.
20199. The board shall establish a building account for the
transfer of money that is continuously appropriated for that purpose
from the retirement fund for the cost of the acquisition of real
property, the construction or remodeling of buildings and
improvements thereon, and the maintenance, repair, and improvement
thereof, and for the orderly repayment to the retirement fund of
those expenditures plus interest at the aggregate rate of return on
investments of this system.
For accounting purposes the board shall pay rental to the building
account in an amount sufficient to repay all costs for construction
and maintenance of space used by the board plus interest to the
retirement fund. Other rental received shall be deposited in the
building account and disbursed as provided in this section.
The board may contract with the Department of General Services for
the purchase of insurance against loss of, or damage to, the
property or the loss of use or occupancy of the building, liability
insurance and such other insurance as is customarily carried on state
office buildings. Premiums for the insurance shall be paid from the
building account.
Money in the building account that is in excess of current needs
shall be paid into the retirement fund monthly. The land, building,
equipment, and improvements thereon, shall constitute an investment
in the retirement fund and shall be carried on the books thereof as
such in accordance with generally accepted accounting practices.
20200. (a) Notwithstanding any other provision of law, the board
may establish a program utilizing the retirement fund to assist
system members, through financing, to obtain homes in this state.
(b) For the purpose of this section, the term "member" means any
person who is receiving, or is entitled to receive, a retirement
allowance funded by this system, the Legislators' Retirement System,
the Judges' Retirement System, or the Judges' Retirement System II,
notwithstanding any vesting requirement and without regard to present
eligibility to retire.
(c) The board shall adopt regulations governing the program that
shall, among other things, provide:
(1) That home loans be made available to members for the purchase
of single-family dwellings, two-family dwellings, three-family
dwellings, four-family dwellings, single-family cooperative
apartments, and single-family condominiums.
(2) That private lending institutions in this state shall
originate and service its home loans pursuant to agreements entered
into between those institutions and the board.
(3) That the recipients of the loans occupy the homes as their
permanent residences in accord with rules and regulations established
by the board.
(4) That its home loans shall be available only for the purchase
or refinancing of homes in this state and that under no condition
shall a member have more than one outstanding loan.
(5) That the amount and length of the loans shall be pursuant to a
schedule periodically established by the board that shall provide a
loan-to-value ratio of: (A) for the first loan, except for
three-family dwellings and four-family dwellings, a maximum of 95
percent of the first loan; (B) for the first loan on three-family
dwellings and four-family dwellings, a maximum of 90 percent of the
first loan; and (C) for each additional loan, a maximum of 80 percent
of each additional loan. The portion of any loan exceeding 80
percent of value shall be insured by an admitted mortgage guaranty
insurer conforming to Chapter 2A (commencing with Section 12640.01)
of Part 6 of Division 2 of the Insurance Code, in an amount so that
the unguaranteed portion of the loan does not exceed 75 percent of
the market value of the property together with improvements thereon.
(6) That there may be prepayment penalties assessed on its loans
in accordance with rules and regulations established by the board.
(7) That the criteria and terms for its loans shall provide the
greatest benefit to members consistent with the financial integrity
of the program and the sound investment of the retirement fund.
(8) Any other terms and conditions as the board shall deem
appropriate.
(d) This section shall be known as, and may be cited as, the Dave
Elder Public Employees' Retirement System Member Home Loan Program
Act.
20201. (a) It is the intent of the Legislature that the
provisions of this section be available to assist members in
obtaining homes in this state. The Legislature intends that home
loans made pursuant to Section 20200 and this section shall be
secured primarily by the property acquired except as authorized
pursuant to paragraph (1) of subdivision (b) and shall not exceed the
fair market value of the property acquired.
(b) The board shall include in any program established pursuant to
Section 20200 a procedure whereby a member may obtain 100-percent
financing for the purchase of a single-family dwelling unit in
accordance with the following criteria:
(1) The member shall obtain one loan with a loan-to-value ratio
not to exceed 95 percent secured by the purchased home and a second
personal loan with a loan-to-value ratio not to exceed 5 percent
secured by a portion of the accumulated contributions and vested
accrued benefits in the member's individual account.
(2) The loan secured by the purchased home shall be consistent
with the loan-to-value ratios specified in the schedules established
pursuant to Section 20200.
(3) The amount of any loan on a single-family dwelling unit shall
not exceed 95 percent of the median value of those dwellings in the
county in which the dwelling is located or two hundred thousand
dollars ($200,000), whichever is the greater amount. The amount
shall be increased annually by the increase in the consumer price
index, as defined in Section 21311. In no event, shall the loan
amount exceed three hundred fifty thousand dollars ($350,000).
(4) In no event may the personal loan secured by the accumulated
contributions and vested accrued benefits in the member's individual
account exceed 50 percent of the current value amount of the
accumulated contributions.
(5) The pledge of security under this section shall remain in
effect until the loan is paid in full.
(c) In the event of a default on the personal loan secured by the
member's contributions as authorized by this section, the board may
deduct an amount from the member's contributions on deposit and
adjust the member's accrued benefit, up to the amount pledged as
security, prior to making any disbursement of retirement benefits.
(d) The secured personal loan permitted under this section shall
be made available only to currently employed members who meet
eligibility criteria the board deems advisable.
(e) If the member is married at the time the home is purchased
with a personal loan secured by the member's contributions as
authorized by this section, then the member's spouse shall agree in
writing to the pledge of security, as to his or her community
interest in the amount pledged regardless of whether title to the
home is in joint tenancy.
(f) The pledge of security under this section shall take binding
effect, notwithstanding Section 21255. In the event of default, the
accumulated contributions in the member's account shall be reduced as
necessary to recover any outstanding loan balance, not to exceed the
pledged amount.
(g) Appropriate administrative costs of implementing this section
shall be paid by the members utilizing this section. Those costs may
be included in the loan amount.
(h) Appropriate interest rates shall be periodically reviewed and
adjusted to provide loans to members consistent with the financial
integrity of the member home loan program and the sound and prudent
investment of the retirement fund.
(i) The amendments to this section by Chapter 1094 of the Statutes
of 1994 shall be deemed to have become operative on November 1,
1993.
(j) The board shall administer this section under other terms and
conditions it deems appropriate and in keeping with the investment
standard set forth in Section 20151. The board may adopt procedural
guidelines as necessary for its administration of this section and to
assure compliance with applicable state and federal laws.
20202. The board may, subject to and consistent with its
fiduciary duty, establish a program utilizing the retirement fund to
assist currently employed members and annuitants who are victims of a
natural disaster to obtain loans from the retirement fund for the
sole purpose of repairing or rebuilding their homes which have been
damaged by a natural disaster. In order to qualify for a loan the
home of the member or annuitant shall have been damaged by a natural
disaster and the home shall have been in an area that has been
declared a disaster area in a proclamation of the Governor of a state
of emergency affecting the area in which the member or annuitant
resides.
The board may lend any amount of money, up to and including 100
percent of the costs of repairing or rebuilding a home of a member or
annuitant. However, 5 percent of the loan shall be secured by the
contributions of the member who requests the loan.
The board may, under conditions it may deem prudent, require that
a member or annuitant pledge other assets as collateral for a loan.
The board shall establish terms for the termination of loans made
pursuant to this section upon the separation of members from service,
to ensure, in the case of any default, that this system shall not
suffer any loss, and to provide, as a condition of retirement, for
alternative security. The board may impose other terms and
conditions as the board may determine appropriate.
The Legislature hereby reserves full power and authority to
change, revise, limit, expand, or repeal the loan program authorized
by this section.
20203. Notwithstanding any other provision of the law, the board
may enter into security loan agreements pursuant to Division 8
(commencing with Section 7600) of Title 1 with respect to securities
in which the board is authorized by law to invest.
20204. The board may sell exchange-traded call options only
through an exchange, and only with respect to stock owned by this
system. Common stock that is obligated under an unexpired written
call option shall not be sold unless the board first enters into a
closing purchase transaction.
The board may purchase exchange traded options only through an
exchange and only for the purpose of a closing purchase transaction.
20206. The board shall employ investment counsel on its staff or
on a consulting basis or trust companies or trust departments of
bands to render service in connection with the board's investment
program.
Whenever the board elects to contract with outside firms for
investment counseling services it shall obtain proposals from all
interested firms and conduct a public meeting at which a consultant
or consultants shall be selected by the board. At least once in each
three-year period after the prior selection, a consultant or
consultants shall be obtained by the same procedure upon submission
of new proposals.
20207. (a) The Legislature finds and declares that changing
economic conditions and increasing complexity in the investment
market make it necessary and desirable that this system obtain the
best possible investment expertise.
(b) It is the intent of the Legislature that the board secure
investment advisers with the composite expertise necessary for the
investment of the retirement fund portfolio.
20208. Upon a finding by the board that necessary investment
expertise is not available within existing civil service
classifications, and with the approval of the State Personnel Board,
the board may contract with qualified investment personnel having
demonstrated expertise in the management of large and diverse
investment portfolios to render service in connection with the
investment program of the board.
The board shall report to the Governor, the Legislature, and the
Joint Legislative Budget Committee on the nature, duration, and cost
of investment contract services used. The report shall be submitted
annually in April.
20209. The board shall, pursuant to the state civil service
statutes, either contract with, or establish and fill a full-time
position for, a person who is experienced and knowledgeable in
corporate management issues to monitor each corporation any of whose
shares are owned by this system and to advise the board on the voting
of the shares owned by this system and on the responses of this
system to merger proposals and tender offers.
Notwithstanding Section 13340, there is hereby continuously
appropriated, without regard to fiscal years, from the retirement
fund, an amount sufficient to pay all costs arising from this
section.
20210. Notwithstanding any other provision of law, the board
shall, by contract, retain not less than two separate individual
investment advisers. There is hereby appropriated, without regard to
fiscal year, from the retirement fund, an amount sufficient to pay
all costs arising from this section.
No costs arising from this section shall be paid from the General
Fund.
Article 7. Records and Reports
20220. The board shall, on the request of a board of retirement
of a retirement system established under the County Employees
Retirement Law of 1937, supply information and data necessary for
administration of that system as it is affected by membership in and
service credited under this system.
20221. Each state agency, school employer, and the chief
administrative officer of a contracting agency or any other person
who its governing body may designate shall furnish all of the
following:
(a) Immediate written notice to the board of the change in status
of any member resulting from transfer, promotion, leave of absence,
resignation, reinstatement, dismissal, or death.
(b) Any additional information concerning any member that the
board may require in the administration of this system.
(c) The services of its officer and departments that the board may
request in connection with claims by members against this system.
20222. The comptroller of the university, or any other official
who the university may designate, shall furnish monthly reports to
the board showing changes in the status of all members employed by
the university during the preceding month, and shall furnish any
additional information concerning any members that the board may
require in the administration of this system.
20222.5. (a) The board may, during the course of an audit,
require each state agency, school employer, including each school
district represented by a school employer, and contracting agency, to
provide information or make available for examination or copying at
a specified time and place, or both, books, papers, any data, or
records, including, but not limited to, personnel and payroll
records, as deemed necessary by the board to determine the
correctness of retirement benefits, reportable compensation,
enrollment in, and reinstatement to this system.
(b) The information obtained from an employer under this section
shall remain confidential pursuant to Section 20230.
20223. Each employee shall file with the board information
affecting his or her status as a member as the board may require.
20224. If it is impracticable for the board to determine from the
records the length of service, compensation, or age of any member,
or if any member refuses or fails to give the board a statement of
his or her state service, compensation, or age, the board may
estimate the length of service, compensation, or age.
20225. (a) In addition to other records and accounts, the board
shall keep records and accounts necessary to compute at any time:
(1) The total accumulated contributions of members.
(2) The total accumulated contributions of retired members and of
deceased members, to or on account of whom payments involving life
contingencies are paid, less the annuity payments made to the
members.
(3) The accumulated contributions of the state, school employers,
and of contracting agencies held for the benefit of members on
account of current service.
(4) All other accumulated contributions of the state, school
employers, and of contracting agencies, which shall include the
amounts available to meet the obligation of the state, school
employers, and of the contracting agencies, respectively, on account
of benefits that have been granted to, or on account of, retired and
deceased employees and on account of prior service of members.
(b) For the purposes of this section, all employers subject to
Chapter 9 (commencing with Section 20790) shall be deemed to be a
single account with respect to their local miscellaneous members, all
other employers not subject to Chapter 9 shall be deemed to be a
single account with respect to their local miscellaneous members, all
employers of local safety members shall be deemed to be a single
account with respect to those local safety members, and all employers
of school members shall be deemed to be a single account with
respect to those school members.
However, the purposes of this section shall be construed in
conformity with the individual employer contribution rates
established pursuant to Section 20815.
20226. The records and accounts required under Section 20225
shall not include the contributions made by the state or contracting
agencies with respect to the survivor allowances provided for in
Article 3 (commencing with Section 21570) of Chapter 14. The board
shall keep additional records and accounts with respect to those
contributions as will show at any time the accumulated contributions
of the state and of contracting agencies held to meet the obligation
of the state and of the contracting agencies,
respectively, on account of survivor
allowances.
20227. The actuary shall cause to be published, as of the date of
the investigation and valuation made pursuant to Section 20131, a
financial statement showing an actuarial valuation of the assets and
liabilities of this system and a statement as to the accumulated cash
and securities in the retirement fund as certified by the
Controller. The actuary may omit from the statement, which shall be
published as of July 1 of every other year, assets and liabilities
resulting from prior service, and shall include assets and
liabilities on account of current service in amounts equal only to
accumulated contributions held on account of that service.
20228. The board shall annually employ a certified public
accountant, who is not in public employment, to audit the financial
statements of this system. The term for which the board may contract
to employ a certified public accountant shall not exceed five years.
The board shall not contract to employ the same certified public
accountant for two consecutive five-year terms. The costs of the
audit shall be paid from the income of the retirement fund. The
audit shall be made annually. The board shall file a copy of the
audit report with the Governor, the Secretary of the Senate, and the
Chief Clerk of the Assembly.
The board, for purposes of Section 7504, may file internally
prepared financial statements with the Controller within six months
of the end of the fiscal year, and shall file independently audited
financial statements as soon as they are available.
The audits shall not be duplicated by the Department of Finance or
the State Auditor. This system shall be exempt from a pro rata
general administrative charge for auditing.
20229. (a) The Legislature finds that, given the very real
possibility that social security will be mandated upon state
correctional peace officers, the cost of providing the present state
peace officer/firefighter retirement formula in addition to the
social security coverage would create an excessive contribution
burden upon the employee.
(b) The Legislature also finds that it is in the best interest of
the state to investigate a new state peace officer/firefighter
formula that would be available to those officers who are mandated
into social security.
(c) Therefore, the board shall investigate the feasibility of
establishing a voluntary plan which will provide an alternative to
remaining in the current state peace officer/firefighter formula and
paying full social security.
As part of the feasibility study for the new voluntary peace
officer/firefighter plan, the board shall consider program options
including, but not limited to, the following:
(1) Optional enrollment for both current and future hires.
(2) A no-cost-to-employees feature.
(3) Maintenance of the approximate current employer rate.
(4) Maintenance of the approximate current retirement allowance
(including receivable social security benefits).
(5) Provision for the employer to pay all or part of the employee'
s social security contributions.
(6) Continuance of the current program for those who opt to
participate both in it and in social security. The new peace
officer/firefighters program options identified in this study shall
not be made available unless approved in subsequent legislation and
included in an approved memorandum of understanding.
(d) The board shall report its methodology and findings to the
appropriate policy committees of each house and to the Joint
Legislative Budget Committee no later than December 1, 1988. The
report shall include the following information about the alternative
studies:
(1) The benefits to be provided by social security.
(2) The total costs for the social security contribution.
(3) The savings from reduced benefit payments from the Public
Employees' Retirement System.
(4) The net costs to the state (social security payments less
reduced contributions to the Public Employees' Retirement System).
The report shall include a side-by-side comparison of current and
future benefits and costs.
20230. Data filed by any member or beneficiary with the board is
confidential, and no individual record shall be divulged by any
official or employee having access to it to any person other than the
member to whom the information relates or his or her authorized
representative, the contracting agency or school district by which he
or she is employed, any state department or agency, or the
university. The information shall be used by the board for the sole
purpose of carrying into effect the provisions of this part. Any
information that is requested for retirement purposes by any public
agency shall be treated as confidential by the agency.
The gross amount of any benefit is not confidential and may be
released upon request to the board.
The board may seek reimbursement for reasonable administrative
expenses incurred when providing that information. Except as
provided by this section, no member's, beneficiary's or annuitant's
address, home telephone number, or other personal information shall
be released.
For purposes of this section, "authorized representative" includes
the spouse or beneficiary of a member when no contrary appointment
has been made and when, in the opinion of the board, the member is
prevented from appointing an authorized representative because of
mental or physical incapacity or death.
20231. Notwithstanding any other provision of law, the Employment
Development Department shall disclose to the board information in
its possession relating to the earnings of any person who is
receiving a disability retirement allowance from this system and has
filed with the board a release permitting the Employment Development
Department to furnish that information. The earnings information
shall be released to the board only upon written request from the
board specifying that the person is receiving a disability retirement
allowance from this system. The request may be made by the
executive officer of this system or by an employee of this system so
authorized and identified by name and title by the executive officer
in writing. The board shall notify recipients of disability
retirement allowances with prescribed limits based on earnings that
earnings information from the Employment Development Department's
records will be released upon request by the board. The board shall
not release any earnings information received from the Employment
Development Department to any person, agency, or other entity. This
system shall reimburse the Employment Development Department for all
reasonable administrative expenses incurred pursuant to this section.
Any person receiving a disability retirement allowance who declines
to authorize the release of earnings information as provided by this
section shall instead furnish the board with proof of earnings the
board may require, including, but not limited to, copies of the
person's federal and state income tax returns.
20232. As soon as practicable after the close of each fiscal year
the board shall file with the Governor a report of its work for the
fiscal year.
The annual report of the board shall include a description of all
securities held and a comprehensive report of transactions involving
the investment of the retirement fund similar to that required of a
life insurance company licensed to do business in California.
The annual report shall also include a detailed statement of the
expenses of operating the retirement fund, including compensation
paid, fees paid, operating ratios, and net profit and loss
statements, including the acquisition cost, the book value, and
market value of the total fund as of the date of the report.
In the matter of commission fees and other fees paid to persons
not employed by the state for services in connection with investments
under this chapter, the names of those persons to whom those fees
are paid and the amounts paid shall be clearly identified in the
report.
The board shall also submit by November 1 of each year to the
Assembly and the Senate, a report of the unaudited data compiled for
the preparation of the report required by this section.
20233. The board shall report to the Governor and the
Legislature, not later than December 1 of each year, on the extent to
which the purpose of Section 21310 is being achieved under the
provisions of this article and Article 2 (commencing with Section
20120) and the amount of supplementary increases in retirement
allowances required to meet the objective of preserving the
purchasing power of benefits provided by this system. The board
shall also determine and report on the increase in the state
contribution rate required to provide the supplementary increases for
state members, other than school members.
20234. The board shall submit an annual report to the Legislature
and the Governor. The report shall include:
(a) A copy of the annual audit performed pursuant to Section
20228.
(b) A review by a consultant, a review of this system's asset mix
strategy, a market review of the economic and financial environment
in which investments were made, and a summary of this system's
general investment strategy.
(c) A description of this system's investments, including the
concentration of stocks and bonds, at cost and market value,
including dividends and coupons, and a summary of major changes that
occurred since the previous year.
(d) The following information regarding the rate of return of this
system by asset type:
(1) Time-weighted return on a five-year, three-year, two-year, and
one-year basis.
(2) Dollar-weighted return on a five-year, three-year, two-year,
and one-year basis.
(3) Book valuation return on a five-year, three-year, two-year,
and one-year basis.
(4) Portfolio return comparisons which compare investment returns
with an alternative theoretical portfolio of comparable funds,
universes, and indexes.
(5) Returns as credited to employer accounts.
(6) Returns as reported in the annual reports.
(7) Returns as reported by the Controller.
(e) A transaction summary that shall adequately review this system'
s custodial relationship and daily cash management, purchases, sales,
turnover, private placements, soft dollar purchases, and transaction
costs such as commissions, dealer spreads, and accommodations.
(f) This system shall report on the use of outside investment
advisers and managers and any participation in corporate annual
meetings and shareholder voting.
(g) A discussion of this system's portfolio containing the
following information:
(1) Concentration, current holdings at cost and market value, risk
characteristics (R-squared, Beta standard error), and fundamentals
(P/E, dividend yield, measures of growth, size, earnings quality,
debt/equity) of equities.
(2) Concentration, current holdings at cost and market value,
maturity, duration, quality, coupon, and current yield of fixed
income instruments.
(3) Current holdings at cost and market value of real estate
equities.
(4) Current holdings at cost and market value of mortgages.
(5) Securities lending activity.
(6) Options and forward commitments.
(7) Cash and cash equivalents.
(h) Include a performance review of asset allocation, of equities
due to market timing, sector selection, stock selection and trading,
of fixed income instruments due to interest rate anticipation skills,
credit analysis, sector trading and swapping and of value added over
indexing (alpha).
(i) A review of this system's custodial relationship and daily
cash management and a summary of this system's investment
transactions, including purchases, sales, turnover, private
placements, soft dollar purchases, and transaction costs such as
commissions, dealer spreads and accommodations.
(j) A review of the role of any outside managers and advisers,
shareholder voting, and changes in investment staff or
reorganization.
20235. The board shall submit a review of this system's assets to
the Legislature on a quarterly basis. The report shall:
(a) Discuss this system's portfolio and contain the following
information:
(1) Concentration, current holdings at cost and market value, of
equities.
(2) Concentration, current holdings at cost and market value, of
fixed income instruments.
(3) Current holdings at cost and market value of real estate
equities.
(4) Current holdings at cost and market value of mortgages.
(5) Options and forward commitments.
(6) Cash and cash equivalents.
(b) Disclose the following information on the rate of return of
the fund by type of asset:
(1) Time-weighted return on a five-year, three-year, two-year, and
one-year basis.
(2) Dollar-weighted return on a five-year, three-year, two-year,
and one-year basis.
(3) Summary of performance of an alternative theoretical portfolio
containing all investments and performance of comparable universes
and other indexes.
20236. (a) The board shall provide the Legislature with an
analysis of the asset and liability implications of each bill that
would affect the investment strategy of this system, the funding of
this system, or the benefit structure of this system. The analysis
shall include an explanation of the methodology employed and the
assumptions used in its preparation. Neither fiscal committee of the
Legislature shall hear any such bill until the analysis has been
provided to the committee.
(b) There is hereby continuously appropriated, without regard to
fiscal years, from the retirement fund, an amount sufficient to pay
all costs arising from subdivision (a), but not to exceed fifty
thousand dollars ($50,000) in any one fiscal year.
20237. In addition to any other reports that it may be required
to make by law, the board shall annually file a separate report with
the Governor and each house of the Legislature on all matters under
the jurisdiction of the board.
20238. In addition to any other reports that it may be required
to make by law, the board shall annually file a separate report to
the Legislature and each appointing power and other appointing
authority on the number of new state retirees, by individual state
employer, that are processed in the immediately preceding fiscal year
to the service, disability, and industrial disability retirement
rolls and on the incurred cost of this system for state members for
the immediately preceding three fiscal years.
As used in this section, "incurred cost" means all paid and
expected future cost of an industrial disability retirement. There
shall be deducted from the gross incurred cost the amount of service
time accrued by an employee.
20239. (a) The board shall prepare and submit a report to the
Legislature on the implementation of this chapter on or before
December 1, 1994.
(b) (1) The report shall contain an evaluation of the
administrative and economic advantages of the annual prepaid
contribution for the system, the pilot county, and all contracting
public agencies, should this option be made available to them.
(2) The project shall be deemed successful if all of the following
criteria are met:
(A) The discount of the annual employer contribution is sufficient
to induce a public agency to forego its current method of payment.
(B) The board can demonstrate that prepayment of employer
contributions does not have an adverse impact upon investment
strategy or the rate of return on investments.
(C) Prepayment of employer contributions does not result in a
substantial increase in administrative costs.
(3) The project shall be deemed unsuccessful if any of the
criteria contained in paragraph (2) are not met, or if the board
determines that implementation of the program on a systemwide basis
is not feasible.
Article 8. Subrogation
20250. The provisions of this article shall be deemed to create a
right of subrogation only to amounts paid as disability retirement
allowances and special death benefits.
20251. As used in this article, "state fund" means the State
Compensation Insurance Fund.
20252. If benefits are payable under this part because of an
injury to or the death of a member and the injury or death is the
proximate consequence of the act of a person other than his or her
employer (the state or the employing contracting agency), the board
may on behalf of this system recover from that person an amount that
is the lesser of the following:
(1) An amount that is equal to one-half of the actuarial
equivalent of the benefits for which this system is liable because of
such injury or death.
(2) An amount that is equal to one-half of the remaining balance
of the amount recovered after allowance of that amount that the
employer or its insurance carrier have paid or become obligated to
pay.
20253. The board may contract with the state fund or the Attorney
General for the recovery on behalf of this system of any amounts
that the board might recover from third persons under this article or
Chapter 5 (commencing with Section 3850) of Part 1 of Division 4 of
the Labor Code, or that an insurer might recover under Section 11662
of the Insurance Code, or otherwise.
Under the contract, the state fund, in its own name or in the name
of the board, or the Attorney General for the board, may, to recover
the amounts regardless of whether the injury or death is industrial,
commence and prosecute actions, file liens, or intervene in court
proceedings all in the same manner and to the same extent, provided
in Chapter 5 (commencing with Section 3850) of Part 1 of Division 4
of the Labor Code, for the state fund or employer, except that the
recovery shall not be made from benefits payable under this part
because of the injury or death. The state fund or the Attorney
General, as the case may be, may compromise claims before or after
commencement of suit or entry of judgment for the amount as may be
approved by a person duly authorized by the board for that purpose.
The agreed cost of the service and the expense incidental thereto is
a proper charge against the retirement fund.
20254. Any amount recovered by way of subrogation by the
employer, workers' compensation insurer or this system shall be
applied first to the amounts that the employer or its insurer has
paid or become obligated to pay. The balance of the amount recovered
as specified in Section 20252 shall be paid to, or retained by, this
system.
20255. Actions brought by the board under this article shall be
commenced within three years after the liability of this system to
pay benefits is fixed. Liability of this system is fixed at the time
the board approves the payment of benefits under this part.
Article 9. Validation of Prior Acts
20260. All computations, payments, and other acts heretofore made
or done by the board or its officers and employees which would be
valid if Section 20051, former Section 20130.2, as amended by Chapter
1186 of the Statutes of 1953, Sections 20225, 20281, former Sections
20651.5, as added by Chapter 1186 of the Statutes of 1953, 20804.5,
as amended by Chapter 1454 of the Statutes of 1967, 20860.5,
renumbered Section 20900 by Chapter 395 of the Statutes of 1983,
20894.5, as amended by Chapter 239 of the Statutes of 1968, Section
20998, former Sections 20931, as amended by Chapter 2290 of the
Statutes of 1957, and 20932, as amended by Chapter 1186 of the
Statutes of 1953, Sections 21541 and 21542, as those sections existed
on October 1, 1953, had been in effect at the time those
computations, payments, and other acts were made or done are hereby
ratified, confirmed, and validated.
20261. All computations, payments, and other acts heretofore made
or done by the board or its officers and employees which would be
valid if, former Section 20022, as amended by Chapter 658 of the
Statutes of 1990 and Section 20898, as those sections existed on
September 9, 1953, had been in effect at the time those computations,
payments, and other acts were made or done are hereby ratified,
confirmed, and validated.
20262. All computations, payments, and other acts heretofore made
or done by the board or its officers and employees which would be
valid if Sections 20514, 20710, former Sections 20804.51, as added by
Chapter 1834 of the Statutes of 1961, and 20933.5, as amended by
Chapter 1000 of the Statutes of 1961, as those sections existed on
October 1, 1961, had been in effect at the time those computations,
payments, or other acts were made or done are hereby ratified,
confirmed, and validated.
20263. All computations, payments, and other acts heretofore made
or done by the board or its officers and employees and a contracting
agency which would be valid if former Section 21251.35, as added by
Chapter 2098 of the Statutes of 1963, as that section existed on
October 1, 1963, had been in effect at the time those computations,
payments, or other acts were made or done are hereby ratified,
confirmed, and validated.
20264. All computations, payments, and other acts heretofore made
or done by the board or its officers and employees including those
which would be valid if Section 21503 had been in effect at the time
those computations, payments, or other acts were made or done are
hereby ratified, confirmed, and validated.
20265. All computations, payments, and other acts heretofore made
or done by the board or its officers and employees are hereby
ratified, confirmed, and validated.
20266. All acts and proceedings taken under this part on or
before January 1, 1981, by or on behalf of any public agency for the
approval and execution of a contract for participation in this system
or an amendment to the contract are hereby confirmed, validated, and
declared legally effective and all the contracts and amendments in
the form and manner executed shall be legal and valid. This
provision shall operate to supply the legislative authorization as
may be necessary to validate the acts and proceedings as the
Legislature could have provided for participation in the system.
20267. All computations, payments, and other acts heretofore made
or done by the board or its officers and employees which would be
valid if Section 20963 as amended on May 3, 1975, had been in effect
at the time those computations, payments, or other acts were made or
done are hereby ratified, confirmed, and validated.
CHAPTER 3. MEMBERSHIP IN SYSTEM
Article 1. Compulsory Membership
20280. This article does not apply to persons expressly excluded
from membership in this system by Article 2 (commencing with Section
20300) and Article 3 (commencing with Section 20320).
20281. All members of the retirement system immediately prior to
the time this part becomes operative continue to be members of this
system.
An employee of a contracting agency on the effective date of its
contract with the board becomes a member immediately.
Every
other employee becomes a member upon his or her entry into
employment.
20282. All officers, warrant officers, and enlisted men who after
October 1, 1961, are placed on full-time active duty with the office
of the Adjutant General, pursuant to Sections 142, 167, 321, 340 and
551 of the Military and Veterans Code, shall become members in the
manner and under the same conditions as under this article apply to
other state employees. The retirement benefit provisions of the
Military and Veterans Code shall not apply to those persons. This
section shall not apply to the Adjutant General or the Assistant
Adjutant General.
20283. Any employer that fails to enroll an employee into
membership when he or she becomes eligible, or within 90 days
thereof, when the employer knows or can reasonably be expected to
have known of that eligibility shall be required to pay all arrears
costs for member contributions and administrative costs of five
hundred dollars ($500) per member as a reimbursement to this system's
current year budget.
20284. When any person who is an employee of the state within the
meaning of Section 20028 is assigned to the performance of work for
which his or her compensation is paid, pursuant to statute or duly
authorized contract entered into by the state or the state agency by
which the person is employed, out of funds not directly controlled by
the state, that person shall continue to be an "employee" of the
state for the purposes of this part during the time he or she is
assigned to the performance of that work, and the service rendered by
him or her during that assignment shall be "state service,"
notwithstanding Sections 20028 and 20069 relating to payment of
compensation.
This section shall apply to service rendered prior to October 1,
1945, by any member who, within 90 days after notice of his or her
right to do so is mailed by this system to the state office or
department, or the contracting agency, by which he or she is
currently employed, or to the member's latest address on file in the
office of this system, notifies the board that he or she elects to be
credited with service so rendered, and who makes contributions in
respect to all that service not constituting prior service as
provided in Section 20772. This section shall also apply to the
status of every person while rendering that service prior to October
1, 1945.
20285. Any employee, who was a state member in employment in a
function at the time of the assumption of the function by a city and
county and became a local member on the date of the assumption and in
employment of the city and county in that function under the
contract with the city and county, shall continue in membership
thereafter so long as he or she continues, without a break exceeding
30 days, in that employment or any other employment, falling in the
same membership category under this system, of the city and county or
any other public entity in which he or she would be a member of the
retirement system of the city and county except for this section.
Those employees shall be excluded from membership in the city and
county retirement system in that employment. Any employee whose
membership in this system was terminated, because of entry prior to
January 1, 1976 into other employment in which he or she became a
member of the retirement system of the City and County of San
Francisco and whose membership would have continued under this
section had the entry occurred on or after January 1, 1976, may elect
membership in this system with respect to such employment within 90
days' notice of such right to be given by the system. A member
electing membership in this system shall make the contributions to
this system that would have been required had he or she been a member
while in that employment.
Article 2. Exclusions from Membership
20300. The following persons are excluded from membership in this
system:
(a) Inmates of state or public agency institutions who are allowed
compensation for the service they are able to perform.
(b) Independent contractors who are not employees.
(c) Persons employed as student assistants in the state colleges
and persons employed as student aides in the special schools of the
State Department of Education and in the public schools of the state.
(d) Persons employed as student teachers and excluded under
Section 22609 of the Education Code.
(e) Participants, other than staff officers and employees, in the
California Conservation Corps.
(f) Persons employed as participants in a program of, and whose
wages are paid in whole or in part by federal funds in accordance
with Section 1501 et seq. of Title 29 of the United States Code.
This subdivision does not apply with respect to persons employed in
job classes that provide eligibility for patrol or safety membership,
or to the career staff employees of an employer.
(g) All persons who are members in any teachers' retirement
system, as to the service in which they are members of any teachers'
retirement system.
(h) Except as otherwise provided in this part, persons rendering
professional legal services to a city, other than the person holding
the office of city attorney, the office of assistant city attorney,
or an established position of deputy city attorney.
(i) A person serving the university as a teacher in university
extension, whose compensation for that service is established on the
basis of class enrollment either actual or estimated, with respect to
that service.
(j) A person serving a California State University as a teacher in
extension service, whose compensation for that service is
established on the basis of class enrollment either actual or
estimated, with respect to that service.
(k) A teacher or academic employee of the university or any
California State University who is otherwise fully employed and who
serves as a teacher or in an academic capacity in any summer session
or intersession, for which he or she receives compensation
specifically attributable to that service in summer session or
intersession, with respect to that service.
(l) A person who is employed under the Senate Fellows, the
Assembly Fellows, or the Executive Fellows programs.
20301. Except as otherwise provided in this section, any person
who on October 1, 1963, is employed by the university, and is a
member of any retirement system maintained by the university, or who
after that date enters university employment, shall be excluded from
membership in this system.
A university member who is separated from university employment
due to layoff and who is reemployed by the university shall have the
right to elect, in accordance with regulations of the board of
regents, membership in this system in lieu of membership in any
retirement system maintained by the university, if written notice of
the election is filed with this system within 30 days after his or
her reemployment.
Any member who is employed as a member of the police department or
fire department of the university and who elects, in accordance with
regulations of the board of regents, to become a sworn officer
member of a retirement system of the university in that employment
shall be excluded from membership in this system in that employment
after the date upon which he or she becomes a member of the
university system. The election shall not constitute a permanent
separation from state service for purposes of a right to refund of
accumulated contributions, but shall constitute a discontinuance of
employment as a member of this system and entry into employment as a
member of the university system within the meaning of Section 20895.
20302. Notwithstanding Section 20301, any member of this system
employed in the State Department of Health at the Langley Porter
Neuropsychiatric Institute, San Francisco, or at the Neuropsychiatric
Institute, Los Angeles, who is transferred to university employment
pursuant to an agreement between the department and the university
respecting operation of those institutes shall have the right to
elect to continue his or her membership in this system. To be
effective, the election shall be in writing and filed with the board
prior to the date of his or her transfer of employment.
20303. Persons who are members of any other retirement or pension
system supported wholly or in part by funds of the United States
government, any state government or political subdivision thereof and
who are receiving credit in the other system for service are, as to
that service, excluded from this system.
For the purpose of this section, persons who merely are receiving
pensions or retirement allowances, or other payments, from any source
whatever, on account of service rendered to an employer other than
the state and while they were not in state service, are not, because
of that receipt, members of any other retirement or pension system.
For the purposes of this section only, persons who merely
participate in a deferred compensation plan established pursuant to
Chapter 4 (commencing with Section 19993) of Part 2.6 of Division 5
of Title 2 or established pursuant to Article 1.1 (commencing with
Section 53212) of Chapter 2 of Part 1 of Division 2 of Title 5, are
not, because of that participation, members of any other retirement
or pension system.
For the purposes of this section only, persons who participate in
a money purchase pension plan and trust that meets the requirements
of Section 401(a) of Title 26 of the United States Code are not,
because of that participation, members of any other retirement or
pension system, so long as the contracting agency has received a
ruling from the Internal Revenue Service stating that the money
purchase pension plan and trust qualifies under Section 401(a) and
furnishes proof thereof upon request by the board.
20304. Notwithstanding Sections 20303 and 20894, nothing shall
act to prohibit the receipt of credit in this system, nor the payment
of benefits relating thereto, for service that is also being
credited in the federal old age and survivors insurance system, and
persons shall not be excluded from this system as to the service that
is being credited in the federal old age and survivors insurance
system.
20305. (a) An employee serving on a less than full-time basis is
excluded from this system unless:
(1) He or she is a member at the time he or she renders less than
full-time service and is not otherwise excluded pursuant to this
article or by a provision of a contract.
(2) His or her position requires regular, part-time service for
one year or longer for at least an average of 20 hours a week, or
requires service that is equivalent to at least an average of 20
hours a week, unless he or she elects membership pursuant to Section
20325.
(3) His or her employment is, in the opinion of the board, on a
seasonal, limited-term, on-call, emergency, intermittent, substitute,
or other irregular basis, and is compensated and meets one of the
following conditions:
(A) The appointment or employment contract fixes a term of
full-time, continuous employment in excess of six months or, if a
term is not fixed, full-time employment continues for longer than six
months, in which case membership shall be effective not later than
the first day of the first pay period of the seventh month of
employment.
(B) The person works more than 125 days, if employed on a per diem
basis or, if employed on other than a per diem basis, 1,000 hours
within the fiscal year, in which case, membership shall be effective
not later than the first day of the first pay period of the month
following the month in which 125 days or 1,000 hours of service were
completed. For purposes of this subdivision, "day" means each
eight-hour period of employment worked by an employee paid on a per
diem basis so that membership is effective after he or she has
completed 1,000 hours of compensated service in a fiscal year.
(C) The person is employed by the Department of Forestry and Fire
Protection in one of the positions that provide state safety
membership pursuant to Section 20400 or state peace
officer/firefighter membership pursuant to Section 20392.
(4) He or she is a temporary faculty member of the California
State University who works two consecutive semesters or three
consecutive quarters at half-time or more and is not otherwise
excluded pursuant to this article, in which case, membership shall be
effective with the start of the next consecutive semester or quarter
if the appointment requires service of half-time or more.
(5) He or she is a member of the Board of Prison Terms, the State
Personnel Board, or the State Air Resources Board and elects to
become a member pursuant to Section 20320.
(6) He or she is participating in partial service retirement,
pursuant to Article 1.7 (commencing with Section 19996.30) of Chapter
7 of Part 2.6.
(7) He or she is included by specific provision of the board
relating to the exclusion of less than full-time employees.
(b) This section shall supersede any contract provision excluding
persons in any temporary or seasonal employment basis and shall apply
only to persons entering employment on and after January 1, 1975.
Except as provided in Section 20502, no contract or contract
amendment entered into after January 1, 1981, shall contain any
provision excluding persons on an irregular employment basis.
Article 3. Optional Membership
20320. A person directly appointed by the Governor, without the
nomination of any officer or board, or an officer or an employee
directly appointed by the Attorney General, Lieutenant Governor,
Controller, Secretary of State, Treasurer, or Superintendent of
Public Instruction exempt from civil service under Article VII of the
California Constitution, except those appointed pursuant to
subdivision (i) of Section 4 thereof, is excluded from membership in
this system unless he or she files with the board an election in
writing to become a member. He or she may elect at any time, and has
the option of making contributions to this system in the amount that
he or she would have contributed had he or she not been excluded,
plus an amount equal to the interest, to the date or dates of his or
her payment, which would have been credited to those contributions
had he or she not been excluded. These contributions and interest
shall be paid to this system at times, in amounts, and in a manner
fixed by the board. If he or she affirmatively exercises the option:
(a) He or she shall receive credit for previous state service in
the same manner as if he or she had not been excluded, and
(b) His or her rate of contribution shall be based on the
contribution rate in effect at the time he or she first was excluded.
20321. Persons appointed to the office of the Adjutant General or
Assistant Adjutant General after October 1, 1961, shall have rights
to membership as provided in this article for other persons appointed
by the Governor and shall have no rights under the retirement
benefit provisions of the Military and Veterans Code, except that
persons entitled to retirement benefits under the Military and
Veterans Code appointed to the office of the Adjutant General or
Assistant Adjutant General shall continue to receive military
retirement benefits during their term of office.
20322. (a) An elective officer is excluded from membership in
this system unless the officer files with the board an election in
writing to become a member. The officer may elect at any time, and
has the option of making contributions to this system in the amount
that the officer would have contributed had the officer not been
excluded, plus an amount equal to the interest, to the date or dates
of his or her payment, that would have been credited to those
contributions had he or she not been excluded. The contributions and
interest shall be paid to this system at times, in amounts, and in a
manner, fixed by the board. If the officer affirmatively exercises
the option:
(1) He or she shall receive credit for previous state service in
the same manner as if he or she had not been excluded, and
(2) His or her rate of contributions shall be based on the nearest
age at the time he or she first was excluded.
(b) As used in this part, "elective officer" includes any officer
of the Senate or Assembly who is elected by vote of the members of
either or both of the houses of the Legislature, and any appointive
officer of a city or county occupying a fixed term of office, as well
as officers of the state or contracting agencies elected by the
people, and persons elected to a city council or a county board of
supervisors.
(c) Notwithstanding any other provision of subdivision (a) or (b),
elected or appointed officers of a county superintendent of schools,
school district, or community college district, or of a contracting
agency that is not a city or county, who serve on public commissions,
boards, councils, or similar legislative or administrative bodies
are excluded from membership in this system. This exclusion shall
only apply to those elected or appointed officers who are first
elected or appointed to an office on or after July 1, 1994, or who
are elected or appointed to a term of office not consecutive with the
term of office held on June 30, 1994. This exclusion shall not
apply to persons elected to a city council or county board of
supervisors.
(d) Any person holding the office of city attorney or the office
of assistant city attorney, whether employed, appointed, or elected,
is excluded from the definition of "elective officer" as defined in
subdivision (b). This subdivision shall apply only to persons first
employed, elected, or appointed on or after July 1, 1994, or
following any break in state service while serving in the office if
the office was held on June 30, 1994.
(e) In accordance with Section 20125 the board shall be the sole
judge of which elected or appointed positions qualify the incumbent
as an "elective officer" in this system under this section.
(f) Notwithstanding any other provision of law, with respect to
elective officers of contracting agencies, payment by a contracting
agency of employer contributions and any other amounts for employer
paid benefits under this system shall not be construed as receipt of
salary or compensation by the elective officer for purposes of any
statutory salary or compensation limitation.
20323. For the purposes of this section "veteran" means a member
of the Veterans' Home of California.
Any veteran who is employed by the Veterans' Home of California is
excluded from membership in this system unless he or she files, or
has filed prior to October 1, 1959, an election in writing to become
a member. The election shall be filed within 90 days after notice of
eligibility to participate from this system, and shall not be
revocable.
20324. An employee of the Senate or the Assembly, or the
respective committees thereof, whose salaries or wages are paid from
the Senate Operating Fund or the Assembly Operating Fund or the
Operating Funds of the Assembly and Senate, shall be deemed a
"legislative employee." A legislative employee is excluded from
membership in this system unless he or she files with the board an
election in writing to become a member. The election shall not be
required of a legislative employee who was a member of this system on
October 1, 1963. He or she may elect at any time prior to retirement
and he or she shall have the option as to how much of his or her
previous legislative service is to be credited. The legislative
employee shall make contributions to this system in respect to the
previous service as a legislative employee for which he or she
desires credit, in the amount that he or she would have contributed
had he or she been a member at any time that he or she previously
rendered that service, plus an amount equal to the interest, to the
date or dates of his or her payment, that would have been credited to
those contributions had he or she been a member when the previous
service as a legislative employee was rendered. The contributions
and interest shall be paid to this system at times, in amounts, and
in a manner fixed by the board. If he or she affirmatively exercises
the option:
(a) He or she shall receive credit for previous service as a
legislative employee in the same manner as if he or she had been a
member when the service was rendered, and
(b) His or her rate of contribution shall be based on the
contribution rate in effect at the time he or she first rendered
service for which he or she is seeking credit by his or her election,
with the total period of any breaks in that service added to his or
her age for the purpose of this computation.
20325. A county superintendent of schools, a school district, a
community college district, or a contracting agency, whose respective
resolution or contract contains an election to be subject to this
section, may offer to its part-time employees whose service is less
than the minimum service prescribed by paragraph (2) of subdivision
(a) of Section 20305 the option to elect at any time to become a
member by filing an election in writing with the board to become a
member. He or she may make contributions to this system in the
amount that he or she would have contributed had he or she not been
excluded, plus an amount equal to the interest, through the
completion of his or her payment, that would have been credited to
those contributions had he or she not been excluded. Payment shall
be in a lump sum or by installment payments over the period and
subject to the minimum payments as may be prescribed by regulations
of the board. An election by a county superintendent of schools, a
school district, or a community college district to be subject to
this section shall subject all of its employees whose service is less
than the minimum service prescribed by paragraph (2) of subdivision
(a) of Section 20305 to mandatory social security coverage but shall
not, in and of itself, affect any other county superintendent of
schools, school district, or community college district with respect
to any social security coverage of employees of the other county
superintendent of schools, school district, or community college
district.
If he or she exercises the option: (a) he or she shall receive
credit for past service that was less than the minimum service
prescribed by paragraph (2) of subdivision (a) of Section 20305 in
the same manner as if he or she had not been excluded, and (b) his or
her rate of contribution shall be based on the nearest age at the
time he or she first was excluded.
This section shall not apply to those part-time employees of any
contracting agency nor to any contracting agency until the
contracting agency elects to be subject to this section by amendment
to its contract
with the board made pursuant to Section 20474 or by express provision
in its contract with the board.
This section shall not apply to those part-time employees of any
county superintendent of schools or school district or community
college district nor to any county superintendent of schools or
school district or community college district until the county
superintendent of schools, the school district, or community college
district, elects to be subject to this section by adopting a
resolution to that effect and transmitting that resolution through
the county superintendent of schools to the board. Notwithstanding
any specified effective date in a resolution, the resolution shall
not become effective until it is received by this system.
Article 4. Termination of Membership
20340. A person ceases to be a member:
(a) Upon retirement, except while participating in reduced
worktime for partial service retirement.
(b) If he or she is paid his or her normal contributions, unless
payment of contributions is the result of an election pursuant to
paragraph (1) of subdivision (b) of Section 21070, or unless, after
reducing the member's credited service by the service applicable to
the contributions being withdrawn, the member meets the requirements
of Section 21075 or if he or she is paid a portion of his or her
normal contributions where more than one payment is made, or these
contributions are held pursuant to Section 21500. For the purposes of
this subdivision, deposit in the United States mail of a warrant
drawn in favor of a member, addressed to the latest address of the
member on file in the office of this system, electronic fund transfer
to the person's bank, savings and loan association or credit union
account, constitutes payment to the person of the amount for which
the warrant is drawn or electronically transferred.
(c) If the member has less than five years of service credit and
no accumulated contributions in the retirement fund at the time of
termination of service.
20341. When any state member is charged by indictment with the
commission of any felony involving the accepting or giving, or
offering to accept or give, any bribe, the embezzlement of public
money, extortion, theft of public money, perjury, or conspiracy to
commit any of those crimes, arising directly out of his or her
official duties, and is a fugitive from justice, the board shall
conduct an investigation and shall hold a hearing for the purpose of
determining whether, in the light of all factors, the offense charged
is of such a nature as to justify suspension of his or her
membership in this system. If the board so determines, he or she
shall be suspended from membership in this system while the charge is
pending and until final disposition of the charge. At any time
during the period of suspension of membership, the person so
suspended shall be entitled to withdraw his or her accumulated
contributions from this system, and that withdrawal shall constitute
an election to terminate membership in this system.
This section applies only to persons who are charged with the
commission after September 18, 1959 of a felony described in this
section by an indictment filed after September 18, 1959.
20342. Until his or her return to state service any member absent
on military service may resign from this system.
Article 5. Reciprocity
20350. Notwithstanding Section 20638, if a member on deferred
retirement from this system is eligible to retire for service at age
50 from a system established under the County Employees Retirement
Law of 1937 and does so retire prior to the age of 55, at the time
the member becomes entitled to retire under this system his or her
retirement shall be deemed a concurrent retirement for purposes of
computing final compensation under Section 20638.
20351. The provisions of this part extending rights to a member
of this system, or subjecting him or her to any limitation by reason
of his or her membership in a retirement system established under the
County Employees Retirement Law of 1937, shall apply in like manner
and under like conditions to a member of this system by reason of his
or her membership in any retirement system established under Chapter
2 (commencing with Section 45300) of Division 5 of Title 4 with
respect to which an ordinance complying with Section 45310.5 has been
filed with and accepted by the board or by reason of his or her
membership in a retirement system established by or pursuant to the
charter of a city or city and county or by any other public agency of
this state and that system, in the opinion of the board, provides a
similar modification of rights and benefits because of membership in
this system and with respect to which the governing body of the city,
city and county or public agency and the board have entered into
agreement pursuant to this section. An agreement under this section
shall provide that the governing body shall modify its retirement
system to conform to any amendments to this part affecting a member's
right because of membership in a retirement system established under
the County Employees Retirement Law of 1937, and may contain other
provisions consistent with this section as the board deems
appropriate. This section shall apply only to a member whose
termination and entry into employment resulting in a change in
membership from this system to the other system or from the other
system to this system occurred after the acceptance by the board or
after the effective date specified in the agreement. However,
provisions relating to computation of final compensation shall apply
to any other member if the provision would have applied had the
termination and entry into employment occurred after the acceptance
or determination by the board.
20352. The provisions of this part extending rights to a member
of this system or subjecting him or her to any limitation, by reason
of his or her membership in a retirement system established under the
County Employees Retirement Law of 1937 shall also apply to members
who terminated state employment and became an employee of a fire
district within six months of the termination, and who were employees
of the district at the time that the district became subject to the
county retirement system.
This section shall only be operative with respect to a county
where the board of supervisors has made Section 31840.5 applicable in
that county.
20353. Any public agency that has pursuant to the provisions of
Section 20351 entered into an agreement to establish a reciprocal
retirement system with this system shall be deemed to have obtained
the same rights and limitations with respect to all other public
agencies who have entered into those agreements and established
reciprocity as well as with respect to retirement systems established
under the County Employees Retirement Law of 1937 and under Chapter
2 (commencing with Section 45300) of Division 5 of Title 4 that have
established reciprocity with this system pursuant to Section 20351.
20354. The provisions of this part extending rights to a member
of this system by reason of his or her membership in a retirement
system established under the County Employees Retirement Law of 1937
shall also apply to members who terminated state employment on or
after June 30, 1971, but because of county budget problems were not
employed in the permanent positions to which they would otherwise
have been assigned and did not become permanent county employees
until on or before January 4, 1972.
20355. Wherever in this part the rights of a member, because of
membership in another retirement system, are conditioned upon
employment within 90 days of termination of membership in this system
or another retirement system, with respect to that employment that
occurs on and after January 1, 1976, the period shall be six months
rather than 90 days.
This section shall also be applicable to members who were
permanent employees of the state who were laid off because of a
reduction in work force and whose break in service between retirement
systems occurred prior to January 1, 1976, but not before April 1,
1970.
20356. Whenever in this part the rights of a local member,
because of membership in another retirement system, are conditioned
upon employment within six months of termination of membership in
this system or another retirement system, the period shall be one
year rather than six months if the local member was an elective
officer and becomes a member of another retirement system upon
commencement of service in another elective office on and after
January 1, 1977.
This section shall not apply unless the other employer in a
reciprocal system elects a similar provision, nor shall it apply to
any contracting agency nor to the employees of any contracting agency
until the agency elects to be subject to the provisions of this
section by amendment to its contract made in the manner prescribed
for approval of contracts, except that an election among the
employees is not required or, in the case of contracts made after
January 1, 1977, by express provision in the contract making the
contracting agency subject to this section.
CHAPTER 4. MEMBERSHIP CLASSIFICATIONS
Article 1. General Provisions
20370. (a) "Member" means an employee who has qualified for
membership in this system and on whose behalf an employer has become
obligated to pay contributions.
(b) "State member" includes:
(1) State miscellaneous members.
(2) University members.
(3) Patrol members.
(4) State safety members.
(5) State industrial members.
(6) State peace officer/firefighter members.
(c) "Local member" includes:
(1) Local miscellaneous members.
(2) Local safety members.
(d) "School member" includes all employees within the jurisdiction
of a school employer, other than local policemen and school safety
members.
20371. "Member classification" means either of the following:
(a) Miscellaneous member classification, which includes state
miscellaneous members, university members, local miscellaneous
members, state industrial members, and school members.
(b) Safety member classification, which includes patrol members,
state peace officer/firefighter members, state safety members, and
local safety members.
Article 2. Miscellaneous Member Classification
20380. "State miscellaneous member" includes all members employed
by the state and university, except industrial, patrol, state peace
officer/firefighter, and state safety members.
20381. "University member" includes all members who are employees
of the university.
20382. "State industrial member" includes all state employees
appointed by the Governor or by the Director of Corrections or the
Board of Prison Terms or the Department of the Youth Authority or the
Youthful Offender Board and employed in the state prisons or
facilities of the Department of Corrections or the Department of the
Youth Authority, or employed in the Division of Adult Paroles as
Chief, deputy chief agents, or officers, and all parole agents or
officers appointed by the Board of Prison Terms under the State Civil
Service Act, any parole agents or officers appointed by the Board of
Trustees of the California Institution for Women, the members of the
Board of Prison Terms, and the members of the Board of Trustees of
the California Institution for Women except employees who are state
safety members or state peace officer/firefighter members.
Except as expressly otherwise provided, the provisions of this
part applicable to state miscellaneous members apply to state
industrial members.
The provisions of this part providing industrial death and
disability benefits to state industrial members shall also apply to
any other state employee whose death or disability results from an
injury which is a direct consequence of a violent act perpetrated on
his or her person by an inmate of a state prison, correctional school
or facility of the Department of Corrections or the Department of
the Youth Authority or a parolee therefrom subject to the same
conditions prescribed by Section 20048.
20383. "Local miscellaneous member" includes all employees of a
contracting agency who have by contract been included within this
system, except local safety members.
Article 3. Safety Member Classification--State
20390. "Patrol member" includes all members employed in the
Department of the California Highway Patrol or by a county in
connection with its highway patrol function, respectively, whose
principal duties consist of active law enforcement service, except
those whose principal duties are those of a telephone operator,
clerk, stenographer, machinist, mechanic, or otherwise clearly do not
fall within the scope of active law enforcement service, even though
the person is subject to occasional call, or is occasionally called
upon, to perform duties within the scope of active law enforcement
service.
20391. "State peace officer/firefighter member" means:
(a) All persons in the Board of Prison Terms, the Department of
Consumer Affairs, the Department of Developmental Services, the
Department of Health Services, the Department of Toxic Substances
Control, the Horse Racing Board, the Department of Industrial
Relations, the Department of Insurance, the Department of Mental
Health, the Department of Motor Vehicles, the Department of Social
Services employed with the class title of Special Investigator (Class
Code 8553), Senior Special Investigator (Class Code 8550),
Investigator Trainee (Class Code 8555), and Investigator Assistant
(Class Code 8554) who have been designated as peace officers as
defined in Sections 830.2 and 830.3 of the Penal Code.
(b) All persons in the Department of Alcoholic Beverage Control
employed with the class title Investigator Trainee, Alcoholic
Beverage Control (Class Code 7553), Investigator I, Alcoholic
Beverage Control, Range A and B (Class Code 7554), and Investigator
II, Alcoholic Beverage Control (Class Code 7555) who have been
designated as peace officers as defined in Sections 830.2 and 830.3
of the Penal Code.
(c) All persons within the Department of Justice who are state
employees as defined in subdivision (c) of Section 3513 and who have
been designated as peace officers and performing investigative
duties.
(d) All persons in the Department of Parks and Recreation employed
with the class title of Park Ranger (Intermittent) (Class Code 0984)
who have been designated as peace officers as defined in Sections
830.2 and 830.3 of the Penal Code. Any person so designated may
elect, within 90 days of notification by the board, to remain subject
to the service retirement benefit and normal rate of contribution
applicable prior to July 3, 1984, by filing an irrevocable notice of
election with the board. A member who so elects shall be subject to
the reduced benefit factors specified in Section 21353 only for
service also included in the federal system.
20392. "State peace officer/firefighter member" also includes
officers and employees with the following class titles of:
Class Code Classification
6875 Air Operations Officer I
1056 Air Operations Officer II
1053 Air Operations Officer III
6877 Air Operations Officer I (Maintenance)
6882 Air Operations Officer II (Maintenance)
1050 Air Operations Officer III (Maintenance)
0989 Aquatic Specialist
8997 Arson and Bomb Investigator
9694 Board Coordinating Parole Agent, Youthful
Offender
Parole Board
9774 Correctional Case Worker Trainee
9649 Correctional Program Supervisor
9904 Correctional Counselor I
9903 Correctional Counselor II
9662 Correctional Officer
9658 Correctional Officer Trainee
9911 Case Work Specialist, Youth Authority
8975 Deputy State Fire Marshal I
8972 Deputy State Fire Marshal II
9013 Deputy State Fire Marshal III (Specialist)
1077 Fire Apparatus Engineer
1074 Fire Captain
1072 Fire Control Aid
1069 Fire Crew Supervisor
8979 Firefighter
1082 Firefighter, California Department of Forestry
9001 Firefighter (Correctional Institution)
8990 Firefighter/Security Guard
1047 Fire Prevention Officer I
1049 Fire Prevention Officer II
9088 Fire Service Training Specialist I
9089 Fire Service Training Specialist II
9090 Fire Service Training Specialist III
8418 Fish and Game Patrol, Lieutenant
8421 Fish and Game Warden, Department of Fish and Game
9043 Food and Drug Investigator I
9039 Food and Drug Investigator II
9042 Food and Drug Investigator III
9028 Food and Drug Program Coordinator
9007 Food Technology Specialist
1060 Forestry Aid
1046 Forestry Helicopter Pilot
9579 Group Supervisor
9578 Group Supervisor Trainee
6387 Heavy Fire Equipment Operator
1937 Hospital Peace Officer I
1055 Junior Forester
8416 Lieutenant Fish and Game Patrol Boat
0992 Lifeguard
8217 Medical Technical Assistant, Correctional
Facility
1992 Museum Security Officer I
0890 Park Safety and Enforcement Specialist
9701 Parole Agent I, Youth Authority
9765 Parole Agent I, Adult Parole
9696 Parole Agent II, Youth Authority
9763 Parole Agent II, Adult Parole
1083 Seasonal Firefighter, California Department of
Forestry
8215 Senior Medical Technical Assistant
8359 Sergeant, California State Police
0983 State Park Ranger I
0981 State Park Technician
0982 State Park Ranger Trainee
8464 State Police Officer
8358 State Security Officer
8989 Supervisor Firefighter/Security Guard
9590 Transportation Officer, Youth Authority
8410 Warden-Pilot Department of Fish and Game
9581 Youth Counselor
Any person so designated may elect, within 90 days of notification
by the board, to remain subject to the service retirement benefit
and the normal rate of contribution applicable prior to July 3, 1984,
by filing an irrevocable notice of election with the board. A
member who so elects shall be subject to the reduced benefit factors
specified in Section 21353 only for service also included in the
federal system.
20393. "State peace officer/firefighter member" also means:
(a) All persons in the office of the Secretary of State, office of
the Controller, and the Public Employees' Retirement System employed
on a full-time permanent basis with the class title of Special
Investigator(Class Code 8553), Senior Special Investigator (Class
Code 8550), Investigator Trainee (Class Code 8555) and Investigator
Assistant (Class Code 8554) who have been designated as peace
officers as defined in Sections 830.2 and 830.3 of the Penal Code.
(b) All persons employed on a full-time permanent basis with the
class title of Corporations Investigator (Class Code 8570) or
Associate Corporations Investigator (Class Code 8571) who have been
designated as peace officers as defined in Sections 830.2 and 830.3
of the Penal Code.
(c) All persons employed on a full-time permanent basis with the
class title of Sergeant, State Fair Police (Class Code 1946), State
Fair Police Officer (Class Code 1945), Lottery Agent (Class Code
8602), Senior Investigator, Structural Pest Control Board (Class Code
8821), Investigator Structural Pest Control Board (Class Code 8802),
District Representative I and II, Division of Codes and Standards
(Class Codes 8960 and 8958), Deputy Registrar of Contractors I and II
(Class Codes 8793 and 8792), Polygraph Examiner, California
Department of Youth Authority (Class Code 8542), Community Services
Consultant I (Class Code 9717), or Parole Service Associate (Class
Code 9776) who have been designated as peace officers as defined in
Sections 830.2, 830.3, and 830.5 of the Penal Code.
(d) All persons employed on a full-time permanent basis with the
class title of Deputy State Fire Marshal Intern (Class Code 8980).
(e) All persons employed on a full-time permanent basis with the
class title of Forester I (Class Code 1054).
Any person so designated may elect, within 90 days of notification
by the board, to remain subject to the service retirement benefit
and the normal rate of contribution applicable prior to the effective
date that this section is applicable to the member by filing an
irrevocable notice of election with the board. A member who so
elects shall be subject to the reduced benefit factors specified in
Section 21353 only for service also included in the federal system.
20394. "State peace officer/firefighter member" also includes,
effective July 1, 1986, the employees of a California State
University police department, established pursuant to Section 89560
of the Education Code, who have been designated as peace officers as
defined in Section 830.2 of the Penal Code and who are (a) members
represented by Public Safety Unit No. 8, or (b) members excluded from
the definition of employee in subdivision (f) of Section 3562 or are
supervisory employees as defined in Section 3580.3, provided that
these employees have responsibility for the direct supervision of the
state peace officer/firefighter members represented in Public Safety
Unit No. 8. The Trustees of the California State University shall
notify this system when employees meet these conditions and whenever
a state peace officer/firefighter member ceases to meet the
conditions.
Any person so designated may elect, within 90 days of notification
by the board, to remain subject to the service retirement benefit
and the normal rate of contribution applicable prior to July 1, 1986,
by filing an irrevocable notice of election with the board. A
member who so elects shall be subject to the reduced benefit factors
specified in Section 21353 only for service also included in the
federal system.
20395. "State peace officer/firefighter member" means all members
who are full-time permanent employees represented in Corrections
Unit No. 6, Protective Services and Public Safety Unit No. 7, and
Firefighters Unit No. 8 and are employed in class titles which are
designated as peace officer as defined in Chapter 4.5 (commencing
with Section 830) of Title 3 of Part 2 of the Penal Code or are
firefighters whose principal duties consist of active
firefighting/fire suppression.
A member who is employed in a position that is reclassified from
state miscellaneous to state peace officer/firefighter pursuant to
this section, may make an
irrevocable election in writing to remain subject to the
miscellaneous service retirement benefit and the normal rate of
contribution by filing a notice of the election with the board within
90 days of notification by the board. A member who so elects shall
be subject to the reduced benefit factors specified in Section 21353
only for service also included in the federal system.
Notwithstanding any other provision of law, security officers
employed by the Department of Justice are not state peace
officer/firefighter members, but are, for all purposes, state
miscellaneous members.
This section shall not become applicable to any member included in
a classification until a ruling or regulation authorizing the
inclusion of persons employed in that classification within the
definition of "policeman or fireman" is issued by the federal agency
for purposes of Section 418(d)(5)(A) of Title 42 of the United States
Code.
20396. (a) "State peace officer/firefighter member" also includes
employees of the California State University who are campus fire
apparatus engineers and who are members represented by Technical and
Support Services Unit No. 9.
(b) This section shall be operative with respect to the employees
described in subdivision (a) only if authorized by, and in accordance
with, a memorandum of understanding reached between the Trustees of
the California State University and the recognized employee
organization pursuant to the Higher Education Employer-Employee
Relations Act Chapter 12 (commencing with Section 3560) of Division 4
of Title 1.
(c) Any person who becomes eligible for the benefit provided by
Section 21363 as provided for in this section, may elect, within 90
days of notification by the board, to remain subject to the service
retirement benefit and normal rate of contribution applicable prior
to January 1, 1988, by filing an irrevocable notice of election with
the board.
20397. "State peace officer/firefighter member" also includes
bailiffs and security coordinators of the judicial branch who have
been designated as peace officers in subdivision (b) of Section
830.36 of the Penal Code.
A member who is reclassified from state miscellaneous to state
peace officer/firefighter pursuant to this section, may make an
irrevocable election in writing to remain subject to the
miscellaneous service retirement benefit and the normal rate of
contribution by filing a notice of the election with the board within
90 days of notification by the board. A member who so elects shall
be subject to the reduced benefit factors specified in Section 21353
only for service included in the federal system.
20398. "State peace officer/firefighter member" also includes
state officers and employees designated as peace officers as defined
in Sections 830.1, 830.2, 830.3, 830.38, 830.4, and 830.5 of the
Penal Code, except a patrol member, or a firefighter whose principal
duties consist of active firefighting/fire suppression, who is either
excluded from the definition of state employee in subdivision (c) of
Section 3513 or is a nonelected officer or employee of the executive
branch of government who is not a member of the civil service,
provided, that those officers and employees have responsibility for
the direct supervision of state peace officer/firefighter personnel
specified in Sections 20391, 20392, 20393, and 20395. The Department
of Personnel Administration shall annually determine which classes
meet the above conditions and are not classes specified in Sections
20391, 20392, 20393, and 20395, and report its findings to the
Legislature and to this system, to be effective July 1 of each year.
Any person so designated may elect, within 90 days of notification
by the board, to remain subject to the service retirement benefit
and the normal rate of contribution applicable prior to July 3, 1984
by filing an irrevocable notice of election with the board. A member
who so elects shall be subject to the reduced benefit factors
specified in Section 21353 only for service also included in the
federal system.
This section shall not become applicable to any member so
designated until a ruling or regulation authorizing the inclusion of
persons so designated within the definition of "policeman or fireman"
is issued by the federal agency for purposes of Section 418(d)(5)(A)
of Title 42 of the United States Code.
20399. "State safety member," includes persons employed in the
Department of Fish and Game in connection with its warden service,
whose principal duties consist of active law enforcement service,
including immediate supervision by persons employed to perform the
duties performed under the titles of Chief and Assistant Chief of
Warden Service, and Captain of Patrol Boats, except those whose
principal duties are those of a telephone operator, clerk,
stenographer, machinist, mechanic, assistant fish and game warden, or
otherwise clearly do not fall within the scope of active law
enforcement service, even though the person is subject to occasional
call, or is occasionally called upon, to perform duties within the
scope of active law enforcement.
20400. "State safety member" also includes members employed in
the Department of Forestry and Fire Protection, whose principal
duties consist of active fire suppression or supervision, including,
but not limited to, members employed to perform duties now performed
under the following titles: State Forester; all classes of State
Forest Rangers; all classes of Deputy State Forester; all classes of
fire prevention and law enforcement officers; all classes of
Foresters; Fire Captain; all classes of Fire Crew Foreman; all
classes of Forestry Trainees; all classes of forestry equipment and
civil engineers; Forestry Superintendent, Conservation Camps; Fire
Apparatus Engineer; Fireman, C.D.F.; Firefighter (Seasonal);
Equipment Maintenance Foreman; Heavy Fire Equipment Operator.
However, "state safety members" shall not include members employed in
classes other than those set forth in this section whose principal
duties are clerical or such as otherwise clearly do not fall within
the scope of active fire suppression.
20401. "State safety member" means (a) all persons within the
Department of Justice designated as peace officers and performing
investigative duties, and (b) the members of the California State
Police Division who are peace officers as defined in Section 830.2 of
the Penal Code and whose principal duties consist of active law
enforcement, but excluding clerical personnel or those whose
principal duties are that of telephone operator, machinist, mechanic,
security officer or otherwise clearly not within the scope of active
law enforcement, even though the person is subject to occasional
call, or is occasionally called upon to perform duties within the
scope of active law enforcement.
20402. "State safety member" shall also include those persons
while employed by the San Francisco Port Authority prior to their
transfer to the San Francisco Port Commission whose principal duties
consisted of active law enforcement and who were peace officers, as
defined in former Section 830.35 of the Penal Code, as amended by
Chapter 460 of the Statutes of 1979, but excluding any person whose
principal duties did not clearly fall within the scope of active law
enforcement even though the person is subject to occasional call, or
is called upon occasionally, to perform duties within the scope of
active law enforcement.
20403. "State safety member" shall also include officers and
employees in (a) the Department of Corrections employed to perform
the duties now performed in positions with the following class
titles: Director of Corrections, unless upon the appointment of a
person to the office of the Director of Corrections the person elects
to be an industrial member; Deputy Director, Department of
Corrections; Deputy Director, Institutions, Camps and Program
Services Division; Deputy Director, Parole and Community Services;
Warden; Warden--San Quentin; Superintendent II and III, Department of
Corrections; Deputy Superintendent; Correctional Administrator;
Program Administrator, Correctional Institution; all classes of
Correctional Program Supervisor; Correctional Captain; Correctional
Lieutenant; Correctional Sergeant; Correctional Officer; all classes
of Women's Correctional Supervisor; Assistant Deputy Director, Parole
and Community Services; all classes of Parole Administrator, Adult
Parole; all classes of Parole Agent, Adult Parole; Assistant
Director, Investigations and Law Enforcement Liaison; Senior Special
Agent; Special Agent; all classes of Women's Parole Agent; Medical
Facility Superintendent; Superintendent, California Institution for
Women; all classes of Correctional Counselor; Chief and Assistant
Chief Transportation Officer, (b) the Department of the Youth
Authority employed to perform the duties now performed in positions
with the following class titles: Director, Department of the Youth
Authority; Chief, Division of Parole and Community Services; Deputy
Chief, Division of Parole and Community Services; Program
Administrator, Correctional School; Assistant Superintendent,
Correctional School; all classes of Superintendent, Correctional
School; Youth Authority Camp Superintendent; Assistant
Superintendent, Youth Authority Camp; Chief, Division of
Institutions; Treatment Team Supervisor; all classes of
Transportation Officers, Youth Authority; Security Officer; all
classes of Group Supervisors; all classes of Parole Agent, Youth
Authority; all classes of Youth Counselor; Supervisor Community
Treatment Programs; Correctional Casework Training Supervisor;
Correctional Casework Trainee; all classes of Correctional Counselor,
(c) the Board of Prison Terms employed to perform duties now
performed in positions with the following class titles: all classes
of Parole Agent; all classes of Correctional Counselor and the Chief
of Investigation, (d) the Youthful Offender Parole Board employed to
perform duties now performed in positions with the following class
titles: all classes of Parole Agent, and (e) the Prison Industry
Authority employed to perform duties now performed in positions with
the following class titles: General Manager; Assistant General
Manager, Administration and Marketing Branch; Chief, Industry
Implementation Division; and Activation Manager.
Any officer or employee of the Prison Industry Authority in
employment on January 1, 1989, and who becomes a state safety member
on that date may elect within 90 days of notification by the board,
to remain subject to the industrial service retirement benefit by
filing an irrevocable notice of election with the board.
20404. Notwithstanding Section 20401 "state safety member" shall
include persons employed as members of a state college police
department who meet the minimum standards of competence established
by the Commission on Peace Officer Standards and Training, pursuant
to Chapter 1 (commencing with Section 13500) of Title 4 of Part 4 of
the Penal Code, except those members employed under class titles of
Parking Officer and Campus Guard.
20405. (a) "State safety member" shall also include officers and
employees of the Board of Prison Terms, the Department of
Corrections, the Department of the Youth Authority, or the Prison
Industry Authority in the following classifications:
Classification Classification
Code
0683 Assistant Dairy Operator
2156 Assistant Food Manager (Correctional Facility)
4302 Assistant General Manager, Operations
2080 Assistant Seamer (Correctional Facility)
5447 Assistant Warden, Psychiatric Services,
Correctional Facility
6868 Automobile Mechanic (Correctional Facility)
6394 Automotive Equipment Operator I (Correctional
Facility)
6392 Automotive Equipment Operator II (Correctional
Facility)
6893 Automotive Pool Manager I (Correctional Facility)
2224 Baker I (Correctional Facility)
2221 Baker II (Correctional Facility)
2086 Barber (Correctional Facility)
2084 Barbershop Manager (Correctional Facility)
6216 Building Maintenance Worker (Correctional
Facility)
2245 Butcher--Meat Cutter II (Correctional Facility)
6483 Carpenter I (Correctional Facility)
6474 Carpenter II (Correctional Facility)
6471 Carpenter III (Correctional Facility)
2015 Chief Assistant General Manager, Prison Industries
4110 Chief, Day Labor Programs (Correctional Facility)
9344 Chief Dentist, Correctional Facility
2578 Chief Deputy, Clinical Services, Correctional
Facility
6699 Chief Engineer I (Correctional Facility)
7547 Chief Medical Officer, Correctional Facility
6754 Chief of Plant Operation I (Correctional Facility)
6751 Chief of Plant Operation II (Correctional Facility)
6748 Chief of Plant Operation III (Correctional
Facility)
9267 Chief Physician and Surgeon, Correctional Facility
7612 Chief Psychiatrist, Correctional Facility
9859 Chief Psychologist, Correctional Facility
7146 Chief, Quality Assurance, Prison Industries
9279 Clinical Dietician, Correctional Facility
9293 Clinical Laboratory Technologist, Correctional
Facility
4132 Construction Supervisor (Correctional Facility)
4107 Construction Supervisor I (Correctional Facility)
4108 Construction Supervisor II (Correctional Facility)
4109 Construction Supervisor III (Correctional Facility)
2187 Cook I (Correctional Facility)
2186 Cook II (Correctional Facility)
7208 Correctional Business Manager I, Department of
Corrections
4744 Correctional Business Manager II, Department of
Corrections
4910 Correctional Health Services Administrator I,
Correctional Facility
4912 Correctional Health Services Administrator II,
Correctional Facility
6304 Correctional Plant Manager I, Department of
Corrections
6305 Correctional Plant Manager II, Department of
Corrections
6303 Correctional Plant Supervisor, Department of
Corrections
9296 Dental Assistant, Correctional Facility
9298 Dental Hygienist, Correctional Facility
9299 Dental Laboratory Technician, Correctional
Facility
9268 Dentist, Correctional Facility
7200 Dry Cleaning Plant Supervisor
6544 Electrician I (Correctional Facility)
6538 Electrician II (Correctional Facility)
6534 Electrician III (Correctional Facility)
6916 Electronics Technician (Correctional Facility)
6865 Equipment Maintenance Supervisor (Correctional
Facility)
2153 Food Administrator I (Correctional Facility)
2147 Food Administrator II (Correctional Facility)
2150 Food Manager (Correctional Facility)
2196 Food Service Worker I (Correctional Facility)
2195 Food Service Worker II (Correctional Facility)
6955 Fusion Welder (Correctional Facility)
6628 Glazier (Correctional Facility)
0743 Groundskeeper (Correctional Facility)
6826 Heavy Equipment Mechanic (Correctional
Facility)
6379 Heavy Truck Driver (Correctional Facility)
9307 Hospital Aid, Correctional Facility
7218 Industrial Supervisor, Prison Industries (Bindery)
0648 Industrial Supervisor, Prison Industries (Crop
Farm)
0682 Industrial Supervisor, Prison Industries (Dairy)
7204 Industrial Supervisor, Prison Industries (Dental
Laboratory)
7198 Industrial Supervisor, Prison Industries (Fabric
Products)
7211 Industrial Supervisor, Prison Industries (Knit
Goods Finishing)
7210 Industrial Supervisor, Prison Industries
(Knitting Mill)
2109 Industrial Supervisor, Prison Industries (Laundry)
7215 Industrial Supervisor, Prison Industries
(Maintenance and Repair)
7197 Industrial Supervisor, Prison Industries (Mattress
and Bedding)
7191 Industrial Supervisor, Prison Industries (Metal
Fabrication)
7216 Industrial Supervisor, Prison Industries (Printing)
7207 Industrial Supervisor, Prison Industries (Shoe
Manufacturing)
7206 Industrial Supervisor, Prison Industries (Shoes
and Boots, Lasting to Packing)
7321 Industrial Supervisor, Prison Industries
(Silkscreen)
7192 Industrial Supervisor, Prison Industries (Tool
and Die)
7179 Industrial Supervisor, Prison Industries
(Upholstery)
7178 Industrial Supervisor, Prison Industries (Wood
Products)
2006 Janitor (Correctional Facility)
2005 Janitor Supervisor I (Correctional Facility)
2004 Janitor Supervisor II (Correctional Facility)
2000 Janitor Supervisor III (Correctional Facility)
9265 Laboratory Assistant, Correctional Facility
2727 Language, Speech and Hearing Specialist
2114 Laundry Supervisor I (Correctional Facility)
2111 Laundry Supervisor II (Correctional Facility)
2117 Laundry Worker (Correctional Facility)
6867 Lead Automobile Mechanic (Correctional Facility)
0720 Lead Groundskeeper (Correctional Facility)
0718 Lead Groundskeeper I (Correctional Facility)
2952 Librarian (Correctional Facility)
6643 Locksmith I (Correctional Facility)
6801 Machinist (Correctional Facility)
6941 Maintenance Mechanic (Correctional Facility)
6617 Mason (Correctional Facility)
1508 Materials and Stores Supervisor I (Correctional
Facility)
1505 Materials and Stores Supervisor II (Correctional
Facility)
8217 Medical Technical Assistant, Correctional
Facility
9273 Nurse Anesthetist, Correctional
Facility
9353 Nurse Instructor, Correctional Facility
9278 Nurse Practitioner, Correctional Facility
9280 Occupational Therapist, Correctional Facility
7971 Optometrist, Correctional Facility
6528 Painter I (Correctional Facility)
6524 Painter II (Correctional Facility)
6521 Painter III (Correctional Facility)
7199 Pest Control Technician (Correctional
Facility)
9281 Physical Therapist I, Correctional Facility
9342 Physical Therapist II, Correctional Facility
9269 Physician and Surgeon, Correctional Facility
6550 Plumber I (Correctional Facility)
6594 Plumber II (Correctional Facility)
6545 Plumber III (Correctional Facility)
1575 Prison Canteen Manager I
1576 Prison Canteen Manager II
7158 Prison Industries Administrator
7157 Prison Industries Manager (General)
7164 Prison Industries Manager (Metal Products)
7165 Prison Industries Manager (Textile Products)
7163 Prison Industries Manager (Wood Products)
0679 Prison Industries Superintendent I (Agriculture)
0617 Prison Industries Superintendent II (Agriculture)
7217 Prison Industries Superintendent II (Bindery)
7109 Prison Industries Superintendent I (Coffee
Roasting and Grinding)
7203 Prison Industries Superintendent I (Dental
Laboratory)
7202 Prison Industries Superintendent II (Dental
Laboratory)
7170 Prison Industries Superintendent II (Detergent)
7350 Prison Industries Superintendent I (Egg
Production)
7194 Prison Industries Superintendent I (Fabric
Products)
7195 Prison Industries Superintendent II (Fabric
Products)
7351 Prison Industries Superintendent I (Fiberglass
Products)
7352 Prison Industries Superintendent I (Furniture
Refurbishing)
7209 Prison Industries Superintendent II (Knitting Mill)
2108 Prison Industries Superintendent II (Laundry)
7154 Prison Industries Superintendent II (Maintenance
and Repair)
7196 Prison Industries Superintendent II (Mattress and
Bedding)
7189 Prison Industries Superintendent I (Metal
Products)
7190 Prison Industries Superintendent II (Metal
Products)
7214 Prison Industries Superintendent II (Printing)
7205 Prison Industries Superintendent II (Shoe
Manufacturing)
7320 Prison Industries Superintendent I (Silkscreen)
7319 Prison Industries Superintendent II (Silkscreen)
7175 Prison Industries Superintendent I (Wood
Products)
7172 Prison Industries Superintendent II (Wood
Products)
4760 Procurement and Services Officer I (Correctional
Facility)
4761 Procurement and Services Officer II (Correctional
Facility)
7162 Product Engineering Technician, Prison Industries
7156 Production Manager I, Prison Industries
1793 Property Controller I (Correctional Facility)
1794 Property Controller II (Correctional Facility)
9282 Psychiatric Social Worker, Correctional Facility
9283 Psychologist--Clinical, Correctional Facility
9284 Psychology Associate, Correctional Facility
9354 Psychology Internship Director, Correctional
Facility
9285 Psychometrist, Correctional Facility
9274 Public Health Nurse I, Correctional Facility
9345 Public Health Nurse II, Correctional Facility
7145 Quality Assurance Manager, Prison Industries
3080 Quality Control Technician, Prison Industries
(Cleaning Products)
9315 Radiologic Technologist, Correctional Facility
9286 Recreation Therapist, Correctional Facility
6715 Refrigeration Engineer (Correctional Facility)
9275 Registered Nurse, Correctional Facility
2734 Resource Specialist, Special Education
9316 Respiratory Care Practitioner, Correctional
Facility
9854 School Psychologist
2077 Seamer (Correctional Facility)
9348 Senior Clinical Laboratory Technologist,
Correctional Facility
9266 Senior Laboratory Assistant, Correctional Facility
2945 Senior Librarian (Correctional Facility)
8215 Senior Medical Technical Assistant
9346 Senior Occupational Therapist, Correctional
Facility
9270 Senior Psychiatrist, Correctional Facility
(Specialist)
9271 Senior Psychiatrist, Correctional Facility
(Supervisor)
9289 Senior Psychologist, Correctional Facility
9287 Senior Psychologist, Correctional Facility
(Specialist)
9288 Senior Psychologist, Correctional Facility
(Supervisor)
9350 Senior Radiologic Technologist, Correctional
Facility (Specialist)
9351 Senior Radiologic Technologist, Correctional
Facility (Supervisor)
6211 Skilled Laborer (Correctional Facility)
9911 Social Worker, Youth Authority
9272 Staff Psychiatrist, Correctional Facility
9290 Staff Psychologist--Clinical, Correctional Facility
6713 Stationary Engineer (Correctional Facility)
6718 Stationary Engineer Apprentice (Four-Year
Program) (Correctional Facility)
6557 Steamfitter Supervisor (Correctional Facility)
3082 Substitute Academic Teacher (Correctional
Facility)
9349 Supervising Clinical Laboratory Technologist,
Correctional Facility
2183 Supervising Cook I (Correctional Facility)
2182 Supervising Cook II (Correctional Facility)
0716 Supervising Groundskeeper II (Correctional
Facility)
2044 Supervising Housekeeper I (Correctional Facility)
2940 Supervising Librarian (Correctional Facility)
9276 Supervising Psychiatric Nurse, Correctional
Facility
9291 Supervising Psychiatric Social Worker I,
Correctional Facility
9292 Supervising Psychiatric Social Worker II,
Correctional Facility
9317 Supervising Registered Nurse I, Correctional
Facility
9318 Supervising Registered Nurse II, Correctional
Facility
9319 Supervising Registered Nurse III, Correctional
Facility
9910 Supervising Social Worker I, Youth Authority
9908 Supervising Social Worker II, Youth Authority
2305 Supervisor of Academic Instruction (Correctional
Facility)
6763 Supervisor of Building Trades (Correctional
Facility)
2384 Supervisor of Commercial Diver Training
2303 Supervisor of Correctional Education Programs
2370 Supervisor of Vocational Instruction
9277 Surgical Nurse I, Correctional Facility
9329 Surgical Nurse II, Correctional Facility
3073 Teacher (Adaptive Physical Education)
(Correctional Facility)
2286 Teacher (Cerebral Palsied Children)
(Correctional Facility)
2287 Teacher (Elementary--Multiple Subjects)
(Correctional Facility)
2288 Teacher (Emotionally/Learning Handicapped)
(Correctional Facility)
3075 Teacher (English Language Development)
(Correctional Facility)
2297 Teacher (Ethnic Studies) (Correctional Facility)
2289 Teacher (Family Life Education) (Correctional
Facility)
2373 Teacher (Hearing Impaired) (Correctional
Facility)
2284 Teacher (High School--Arts and Crafts)
(Correctional Facility)
2285 Teacher (High School--Business Education)
(Correctional Facility)
3074 Teacher (High School--English/Language Arts)
(Correctional Facility)
3076 Teacher (High School--Foreign Language)
(Correctional Facility)
2290 Teacher (High School--General Education)
(Correctional Facility)
2291 Teacher (High School--Home Economics)
(Correctional Facility)
3077 Teacher (High School--Mathematics) (Correctional
Facility)
2294 Teacher (High School--Music) (Correctional
Facility)
2295 Teacher (High School--Physical Education)
(Correctional Facility)
3078 Teacher (High School--Science) (Correctional
Facility)
3079 Teacher (High School--Social Science)
(Correctional Facility)
2298 Teacher (Librarian) (Correctional Facility)
2292 Teacher (Mentally Retarded Children)
(Correctional Facility)
2371 Teacher (Speech Development and Correction)
(Correctional Facility)
6400 Teaching Assistant (Correctional Facility)
7201 Tobacco Factory Superintendent
6382 Truck Driver (Correctional Facility)
6772 Utility Shops Supervisor (Correctional Facility)
2387 Vocational Instructor (Airframe Mechanics)
(Correctional Facility)
2853 Vocational Instructor (Animal Husbandry)
(Correctional Facility)
2396 Vocational Instructor (Auto Body and Fender
Repair) (Correctional Facility)
2398 Vocational Instructor (Auto Mechanics)
(Correctional Facility)
2399 Vocational Instructor (Baking) (Correctional
Facility)
2400 Vocational Instructor (Bookbinding) (Correctional
Facility)
2854 Vocational Instructor (Building Maintenance)
(Correctional Facility)
2417 Vocational Instructor (Carpentry)
(Correctional Facility)
2419 Vocational Instructor (Commercial Diver
Training) (Correctional Facility)
2855 Vocational Instructor (Computer and Related
Technologies) (Correctional Facility)
2420 Vocational Instructor (Cosmetology) (Correctional
Facility)
2422 Vocational Instructor (Culinary Arts)
(Correctional Facility)
2869 Vocational Instructor (Dental Technology)
(Correctional Facility)
2856 Vocational Instructor (Diesel Mechanics)
(Correctional Facility)
2423 Vocational Instructor (Dog Grooming and
Handling) (Correctional Facility)
2425 Vocational Instructor (Drycleaning Works)
(Correctional Facility)
2857 Vocational Instructor (Drywall Installer/Taper)
(Correctional Facility)
2426 Vocational Instructor (Electrical Work)
(Correctional Facility)
2428 Vocational Instructor (Electronics) (Correctional
Facility)
2688 Vocational Instructor (Eyewear Manufacturing)
(Correctional Facility)
2429 Vocational Instructor (Fire Science) (Correctional
Facility)
2858 Vocational Instructor (Floor Cover Layer)
(Correctional Facility)
2431 Vocational Instructor (Furniture Refinishing and
Repair) (Correctional Facility)
2432 Vocational Instructor (Garment Making)
(Correctional Facility)
2433 Vocational Instructor (Heavy Equipment Repair)
(Correctional Facility)
2597 Vocational Instructor (Household Appliance
Repair) (Correctional Facility)
2598 Vocational Instructor (Industrial Arts)
(Correctional Facility)
2599 Vocational Instructor (Instrument Repair)
(Correctional Facility)
2600 Vocational Instructor (Janitorial Service)
(Correctional Facility)
2601 Vocational Instructor (Landscape Gardening)
(Correctional Facility)
2611 Vocational Instructor (Laundry Work)
(Correctional Facility)
2614 Vocational Instructor (Machine Shop
Practice) (Correctional Facility)
2615 Vocational Instructor (Masonry) (Correctional
Facility)
2619 Vocational Instructor (Meat Cutting)
(Correctional Facility)
2627 Vocational Instructor (Mechanical Drawing)
(Correctional Facility)
2628 Vocational Instructor (Merchandising)
(Correctional Facility)
2630 Vocational Instructor (Mill and Cabinet Work)
(Correctional Facility)
2674 Vocational Instructor (Office Machine Repair)
(Correctional Facility)
2849 Vocational Instructor (Office Services and Related
Technologies) (Correctional Facility)
2640 Vocational Instructor (Offset Printing)
(Correctional Facility)
2644 Vocational Instructor (Painting) (Correctional
Facility)
2645 Vocational Instructor (Plastering) (Correctional
Facility)
2661 Vocational Instructor (Plumbing) (Correctional
Facility)
2665 Vocational Instructor (Powerplant Mechanics)
(Correctional Facility)
2666 Vocational Instructor (Printing) (Correctional
Facility)
2667 Vocational Instructor (Radiologic Technology)
(Correctional Facility)
2668 Vocational Instructor (Refrigeration and
Air-conditioning Repair) (Correctional Facility)
2850 Vocational Instructor (Roofer) (Correctional
Facility)
2669 Vocational Instructor (Sewing Machine Repair)
(Correctional Facility)
2670 Vocational Instructor (Sheet Metal Work)
(Correctional Facility)
2671 Vocational Instructor (Shoemaking) (Correctional
Facility)
2672 Vocational Instructor (Silk Screening Process)
(Correctional Facility)
2851 Vocational Instructor (Small Engine Repair)
(Correctional Facility)
2673 Vocational Instructor (Storekeeping and
Warehousing) (Correctional Facility)
5415 Vocational Instructor (Telemarketing/Customer
Service) (Correctional Facility)
2675 Vocational Instructor (Upholstering) (Correctional
Facility)
2676 Vocational Instructor (Vocational Nursing)
(Correctional Facility)
2677 Vocational Instructor (Welding)
(Correctional Facility)
1504 Warehouse Manager I (Correctional Facility)
1502 Warehouse Manager II (Correctional Facility)
6221 Warehouse Worker (Correctional Facility)
6724 Water and Sewage Plant Supervisor
(Correctional Facility)
2311 Youth Authority Teacher
(b) In addition, "state safety member" shall also include officers
and employees of the Department of Corrections, the Department of
the Youth Authority, or the Prison Industry Authority in any
classification of Vocational Instructor, Industrial Supervisor,
Industrial Superintendent, Assistant Industrial Superintendent, or
Production Manager II (Prison Industries) that is established on or
after January 1, 1984, if the Department of Personnel Administration
and the State Personnel Board approve the inclusion of the
classification.
(c) "State safety member" shall also include officers and
employees in parenthetical specialty classes when the core class has
already been expressly included in the state safety membership
category if the Department of Personnel Administration and the State
Personnel Board approve the inclusion of the classifications. The
inclusion shall not be effective until notice of the inclusion has
been received by the board.
(d) Any of these officers or employees in employment on the
operative date of an amendment to this section and who becomes a
state safety member as a result of that amendment, may elect by a
writing filed with the board prior to 90 days after notification by
the board, to be restored to his or her previous status as a state
industrial member. Upon the filing of the election the member shall
cease to be a state safety member, and his or her rights and
obligations shall be restored prospectively and retroactively to the
operative date of that amendment.
20406. "State safety member" also includes persons employed by
the state to perform lifeguard services and whose principal duties
consist of active protection, rescue, and rendition of aid or
assistance to persons injured or imperiled at beaches and lakes,
streams, dams, reservoirs, or other bodies of open water, but not
including swimming pools, and including members employed to perform
duties performed under the titles of "District Aquatic Supervisor,"
"Lifeguard Supervisor," and "Lifeguard" or equivalent successor
classes, some of which (including the maintenance of peace and order
and the apprehension of law violators) are customarily performed by
police or peace officers, and whose other duties (such as
resuscitation work involving the use of special equipment in cases
having no connection with their principal duties) that in other areas
are customarily performed by firemen, and other and further duties
that do not come directly within any of the above classifications but
are essential to the safety and security of the public, other than
persons employed under those titles on a seasonal basis, but
excluding clerical, maintenance personnel, and others who do not fall
within the scope of active lifeguarding or lifesaving services as
described in this section even though those persons are subject to
occasional call or are occasionally called upon to perform duties
within the scope of active lifeguarding or lifesaving.
20407. "State safety member" also includes officers and employees
with the Department of Mental Health and the Department of
Corrections in the following classifications:
Classification
Code Classification Title
8254 Prelicensed Psychiatric Technician
(Forensic Facility)
8253 Psychiatric Technician
(Forensic Facility)
8252 Senior Psychiatric Technician
(Forensic Facility)
"State safety member" also includes an officer or employee of the
Department of Mental Health at Patton State Hospital or Atascadero
State Hospital, who either is excluded from the definition of state
employee in subdivision (c) of Section 3513 or is a nonelected
officer or employee of the executive branch of government who is not
a member of the civil service. An officer or employee may be a state
safety member under this paragraph only if the person has
responsibility for the direct supervision of state safety personnel
specified in the classifications listed in this section and if the
State Personnel Board determines that these officers and employees
meet the state safety membership criteria established pursuant to
Section 18717. The Department of Personnel Administration shall
determine which classes meet the above conditions and report its
findings to this system whereupon the change in membership categories
shall take effect.
Any person so designated pursuant to this section may elect,
within 90 days of notification by the board, to remain subject to the
miscellaneous service retirement benefit and contribution rate by
filing an irrevocable notice of election with the board. A member
who so elects shall be subject to the reduced benefit factors
specified in Section 21353 only for service also included in the
federal system.
20408. "State safety member" also includes officers and employees
with the Department of Mental Health or the Department of Forestry
and Fire Protection in the following classifications:
Classification
Code Classification Title
2860 Audio Visual Assistant (Correctional
Facility)
2861 Audio Visual Specialist (Correctional
Facility)
8094 Registered Nurse (Forensic Facility)
"State safety member" also includes an officer or employee of the
Department of Mental Health at Patton State Hospital or Atascadero
State Hospital, who either is excluded from the definition of state
employee in subdivision (c) of Section 3513, or is a nonelected
officer or employee of the executive branch of government who is not
a member of the civil service. An officer or employee may be a state
safety member under this paragraph only if the person has
responsibility for the supervision of state safety personnel
specified in the classifications listed in this section and if the
State Personnel Board determines that these officers and employees
meet the state safety membership criteria established pursuant to
Section 18717. The Department of Personnel Administration shall
determine which classes meet the above conditions and report its
findings to this system, whereupon the change in membership
categories shall take effect.
Any person so designated pursuant to this section may elect,
within 90 days of notification by the board, to remain subject to the
miscellaneous service retirement benefit and contribution rate by
filing an irrevocable notice of election with the board. A member
who so elects shall be subject to the reduced benefit factors
specified in Section 21353 only for service also included in the
federal system.
20409. "State safety member" shall also include officers and
employees of the following departments with the following class
titles:
Class Classification Department
Code
8997 Arson and Bomb Fire Marshal
Investigator
9027 Assistant Chief, Food Health Services
and Drug Section
8609 Chief, Bureau of Insurance
Fraudulent Claims,
Department of
Insurance
8610 Chief, Division of Consumer Affairs
Investigations,
Department of
Consumer Affairs
8988 Chief Fire Veterans Affairs
Fighter/Security
Guard
9030 Chief, Food and Drug Health Services
Section
8613 Chief, Investigation Health Services
Bureau, Department
of Health Services
1986 Chief Museum Museum of Science and
Industry
Security Officer
8152 Coordinator (Urban Office of Emergency Services
Search and Rescue)
Office of Emergency
Services
8673 Deputy Division Alcoholic Beverage Control
Chief, Alcoholic
Beverage Control
8975 Deputy State Fire Fire Marshal
Marshal I
8972 Deputy State Fire Fire Marshal
Marshal II
8969 Deputy State Fire Fire Marshal
Marshal III
8677 District Administrator, Alcoholic Beverage Control
Alcoholic Beverage
Control
8990 Firefighter/Security Forestry and Fire,
Protection,
Guard Veterans Affairs
8966 Fire Prevention Fire Marshal
Engineer
9088 Fire Service Training Fire Marshal
Specialist I
9089 Fire Service Training Fire Marshal
Specialist II
9090 Fire Service Training Fire Marshal
Specialist III
9091 Fire Service Training Fire Marshal
Supervisor
9028 Food and Drug Health Services
Program Coordinator
9029 Food and Drug Health Services
Regional
Administrator
9042 Food and Drug Health Services
Specialist II
9039 Food and Drug Health Services
Specialist III
9036 Food and Drug Health Services
Specialist IV
9043 Food and Drug Health Services
Trainee
9007 Food Technology Health Services
Specialist
1937 Hospital Peace Developmental Services,
Mental
Officer I Health, Consumer Affairs
1936 Hospital Peace Developmental Services,
Mental
Officer II Health, Consumer Affairs
1935 Hospital Peace Developmental Services,
Mental
Officer III Health
1992 Museum Security Museum of Science and
Industry
Officer and Industry
0891 Park Safety and Parks and Recreation
Enforcement
Supervisor
0890 Park Safety and Parks and Recreation
Enforcement
Specialist
8153 Senior Coordinator Office of Emergency Services
(Urban Search and)
Rescue), Office of
Emergency Services
8358 State Security Officer General Services
8999 Supervising Arson and Fire Marshal
Bomb Investigator
8989 Supervising Veterans Affairs
Firefighter/Security
Guard
1988 Supervising Museum Museum of Science and
Industry
Security Officer
8678 Supervising Special Alcoholic Beverage Control
Investigator, Alcoholic
Beverage Control
(b) Any person employed in the classifications described in
subdivision (a) in the department indicated may elect, within 90 days
of September 27, 1982, to remain subject to the miscellaneous
service retirement benefit by filing an irrevocable notice of
election with the board. A member who so elects shall be subject to
the reduced benefit factors specified in Section 21353 only for
service also included in the federal system.
(c) This section shall not become applicable to any member
included in a classification until a ruling or regulation authorizing
the inclusion of persons employed in that classification within the
definition of "policeman" or "fireman," or both, is issued by the
federal agency for purposes of Section 418(d)(5)(A) of Title 42 of
the United States Code.
20410. "State safety member" also includes all persons in the
Department of Alcoholic Beverage Control, the Board of Prison Terms,
the Department of Consumer Affairs, the Department of Developmental
Services, the Department of Health Services, the Department of Toxic
Substances Control, the Horse Racing Board, the Department of
Industrial Relations, the Department of Insurance, the Department of
Mental Health, the Department of Motor Vehicles, and the Department
of Social Services employed with the class title of Special
Investigator (Class Code 8553), Senior Special Investigator (Class
Code 8550), Investigator Trainee (Class Code 8555) and Investigator
Assistant (Class Code 8554), Supervising Special Investigator I
(Class Code 8548), Special Investigator II (Class Code 8547), and
persons in the class of State Park Ranger (Intermittent) (Class Code
0984) in the Department of Parks and Recreation, who have been
designated as peace officers as defined in Sections 830.2 and 830.3
of the Penal Code.
Any person employed in the above classifications in the department
indicated may elect, within 90 days of September 27, 1982, to remain
subject to the miscellaneous service retirement benefit by filing an
irrevocable notice of election with the board. A member who so
elects shall be subject to the reduced benefit factors specified in
Section 21353 only for service also included in the federal system.
This section shall not become applicable to any member included in
a classification until a ruling or regulation authorizing the
inclusion of persons employed in that classification within the
definition of "policeman" is issued by the federal agency for
purposes of Section 418(d)(5)(A) of the United States Code.
20411. "State safety member" also includes members employed in
the positions with the classification of Vocational Instructor
(Barber Shop Practices) (Correctional Facility) (Class Code 2441).
Any person employed in the above classification may elect, within
90 days of notification by the board, to remain subject to the
miscellaneous service retirement benefit by filing an irrevocable
notice of election with the board. A member who so elects shall be
subject to the reduced benefit factors specified in Section 21353
only for service also included in the federal system.
This section shall not become applicable to any member included in
this classification until such time as a ruling or regulation
authorizing the inclusion of persons employed in that classification
within the definition of "policeman" is issued by the federal agency
for purposes of Section 418(d)(5)(A) of the United States Code.
20412. "State safety member" shall also include persons employed
to perform full-time active firefighting duties performed on the
effective date of this section under the titles of "institution fire
chief," "institution fireman," and "campus firefighter" by state
agencies other than the Division of Forestry of the Department of
Conservation. Persons employed under the title "campus firefighter"
who were state miscellaneous members immediately prior to the
operative date of the
amendment adding "campus firefighters" to this section may elect to
remain state miscellaneous members by filing written notice of their
intent with the board no later than 90 days after the operative date
of this section.
20413. "State safety member" shall also include persons employed
under the title of "campus firefighter" who performed active
firefighting duties for the state on April 1, 1973, and who, on
January 1, 1979, performed those duties for a local agency providing
fire protection under contract to the state.
The campus firefighter may elect by a writing filed with the board
prior to December 31, 1979, to be restored to his or her previous
status as a state miscellaneous member with respect to that service.
Upon the filing of the election, the service shall cease to be state
safety member service and the campus firefighter's rights and
obligations shall be adjusted accordingly and his or her status shall
be the same as if this section had not been enacted.
20414. "State safety member" also includes members employed in
the Department of Parks and Recreation in the following
classifications: State Park Ranger Trainee, State Park Ranger I,
State Park Ranger II, State Park Ranger III, State Park Ranger IV,
and State Park Technician.
"State safety member" also includes members employed in the
Military Department in the following classifications: Firefighter
Guard, Supervising Firefighter Guard, and Chief Firefighter Guard.
Any person employed in the above classification in the department
may elect, within 90 days of February 17, 1982, to remain subject to
the miscellaneous retirement benefit by filing an irrevocable notice
of election with the board.
"State safety service," with respect to a member who becomes a
state safety member pursuant to this section, shall also include
service with the specified departments prior to April 1, 1982.
This section shall not become applicable to any member included in
a classification until a ruling or regulation authorizing the
inclusion of persons employed in that classification within the
definition of "policeman" or "fireman" is issued by the federal
agency for purposes of Section 418(d)(5)(A) of the United States
Code.
20415. "State safety member" also includes members employed in
the Department of Parks and Recreation in the following
classifications: Manager I, State Park; Manager II, State Park;
Manager III, State Park; Manager IV, State Park; and Manager V, State
Park. New incumbents to these classes who are not peace officers,
shall receive the training required by the Commission on Peace
Officer Standards and Training within two years of appointment.
Any person employed in one of the above classifications in the
department may elect, within 90 days of September 22, 1982, to remain
subject to the miscellaneous retirement benefit by filing an
irrevocable notice of election with the board.
"State safety service," with respect to a member who becomes a
state safety member pursuant to this section, shall also include
service prior to September 22, 1982.
This section shall not become applicable to any member included in
a classification until a ruling or regulation authorizing the
inclusion of persons employed in that classification within the
definition of "policeman" is issued by the federal agency for
purposes of Section 418(d)(5)(A) of the United States Code.
20416. "State safety member" includes all persons specified in
this article by employer, classification, or duties performed, except
persons in those classes defined as state peace officer/firefighter
members.
Article 4. Safety Member Classification-Contracting Agencies
and Schools
20420. "Local safety member" includes all local police officers,
firefighters, safety officers, county peace officers, and school
safety members, employed by a contracting agency who have by contract
been included within this system.
20421. "Local safety member" also includes all employees of a
city who have by contract been included within this system, and whose
principal duties consist of active protection, rescue, and rendition
of aid or assistance to persons injured or imperiled in water areas
at ocean beaches and the recovery from those water areas of submerged
objects and bodies of persons drowned or believed to have drowned in
those areas, or the immediate supervision thereof, including persons
employed to perform the duties now performed under the titles of
aquatics director, chief lifeguard, captain lifeguards, lieutenant
lifeguards, beach lifeguard, but who performs additional duties, some
of which (including the maintenance of peace and order and the
apprehension of law violators) are customarily performed by police or
peace officers, and whose other duties (such as resuscitation work
involving the use of special equipment in cases having no connection
with their principal duties) that in other areas are customarily
performed by firefighters, and other and further duties that do not
come directly within any of the above classifications but are
essential to the safety and security of the public, excluding those
whose principal duties are those of a telephone operator, clerk,
stenographer, machinist, mechanic, or otherwise clearly do not fall
within the scope of active lifeguarding or lifesaving service, even
though the person is subject to occasional call, or is occasionally
called upon, to perform duties within the scope of active
lifeguarding or lifesaving service.
This section does not apply to the employees of any contracting
agency having a contract with the board made prior to September 18,
1959, until the agency elects to subject itself and its employees to
the provisions of this section by amendment to its contract with the
board pursuant to Section 20474; except that an election is required
only among the employees to whom the provisions of this section
apply.
The amendments of this section, made by Chapter 130 of the
Statutes of 1982 do not constitute a substantive change in the law
and shall not be construed to entitle any person to any right or
benefit that he or she was not already entitled to prior to December
31, 1982.
20422. "Local safety member" also includes all employees of a
public agency whose principal duties consist of rendering prehospital
emergency medical care to ill or injured persons and who are
employees designated as Emergency Medical Technician-I, Emergency
Medical Technician-II, or Emergency Medical Technician-Paramedic, as
defined by, respectively, Sections 1797.80, 1797.82, and 1797.84 of
the Health and Safety Code.
This section shall not apply to any contracting agency nor to the
employees of a contracting agency until the agency elects to be
subject to this section by amendment to its contract with the board
made pursuant to Section 20474 or by express provision in its
contract with the board.
20423. "Local safety member" also includes any harbor or port
police officer, employed by a contracting agency, who is a peace
officer as defined in subdivision (b) of Section, 830.33 of the Penal
Code and whose principal duties consist of active law enforcement of
the laws contained in Chapter 5 (commencing with Section 650) of
Division 3 of the Harbors and Navigation Code, the rules and
regulations of the California Department of Boating and Waterways,
and Chapter 2 (commencing with Section 9850) of Division 3.5 of the
Vehicle Code.
This section shall not apply to any contracting agency nor to the
employees of a contracting agency until the agency elects to be
subject to this section by amendment to its contract with the board,
pursuant to Section 20474, or by express provision within its
contract with the board.
20424. "Local safety officer" means any officer or employee of a
public safety department of a contracting agency, except one whose
principal duties are those of a telephone operator, clerk,
stenographer, machinist, mechanic, or otherwise and whose functions
do not clearly fall within the scope of active law enforcement or
firefighting and prevention service even though the employee is
subject to occasional call, or is occasionally called upon, to
perform duties within the scope of active law enforcement or
firefighting and prevention service, but not excepting persons
employed and qualifying as patrol officers or equal or higher rank,
or as firefighters, hose officers, or equal or higher rank,
irrespective of the duties to which they are assigned.
"Local safety officer" does not include persons employed to
perform identification or communication duties. This paragraph shall
not apply to persons employed and qualified as patrol officers or
equal or higher rank, or as firefighters, hose officers, or equal or
higher rank.
20425. "Local police officer" means any officer or employee of a
police department of a contracting agency which is a city, except one
whose principal duties are those of a telephone operator, clerk,
stenographer, machinist, mechanic, or otherwise and whose functions
do not clearly fall within the scope of active law enforcement
service even though the employee is subject to occasional call, or is
occasionally called upon, to perform duties within the scope of
active law enforcement service, but not excepting persons employed
and qualifying as patrolmen or equal or higher rank irrespective of
the duties to which they are assigned.
"Local police officer" does not include persons employed to
perform identification or communication duties, other than persons in
that employment on August 4, 1972, who elected within 90 days
thereafter to be local safety members. A contracting agency may
elect by amendment to its contract to include as "local police
officer" all persons who were employed to perform identification or
communication duties on August 4, 1972, and who elect within 60 days
of the effective date of the contract amendment to be local safety
members. The election shall apply to the person's past as well as
future service in the employment held on the effective date but shall
not apply to service following any subsequent acceptance of
appointment to a position other than that held on the effective date.
This paragraph shall not apply to persons employed and qualified as
patrol officers or equal or higher rank.
20426. "Local police officer" also includes any officer or
employee of a police department of a contracting agency that is a
city, employed to perform communication duties for an employer that
contracted with this system for coverage for its local police
officers on October 1, 1948, and who elected to become a local safety
member on August 25, 1973, pursuant to Chapter 91 of the Statutes of
1973.
This section shall not apply to any contracting agency nor to the
employees of a contracting agency until the agency elects to be
subject to this section by amendment to its contract made in the
manner prescribed for the approval of contracts or, in the case of
contracts made after January 1, 1989, by express provision in the
contract making the contracting agency subject to this section.
20427. "Local police officer" also includes any officer or
employee of a juvenile bureau of a contracting agency whose principal
duties consist of active law enforcement service, except persons
whose principal duties are clerical or otherwise clearly do not fall
within the scope of active law enforcement, even though the person is
subject to occasional call, or is occasionally called upon, to
perform duties within the scope of active law enforcement.
The provisions of this section do not apply to the employees of
any contracting agency having a contract with the board made prior to
September 22, 1951, until the agency elects to subject itself and
its employees to the provisions of this section by amendment to its
contract with the board pursuant to Section 20474; except that an
election is required only among the employees to whom Section 20427
applies.
20428. "Local police officer" shall also include any officer or
employee of a contracting agency that is a city and county, in any
employment in which he or she was a law enforcement member as defined
by Section 20402 at the time of the assumption by the city and
county of the function in which he or she was employed.
20429. "Local police officer" also includes any officer or
employee of a contracting agency other than a city or a county who is
a peace officer as defined in the Penal Code and whose principal
duties consist of active law enforcement but excluding clerical
personnel or those whose principal duties are that of communication
officer, identification officer, machinist, mechanic, security
officer or are otherwise not clearly within the scope of active law
enforcement, even though the person is subject to occasional call, or
is occasionally called upon the perform duties within the scope of
active law enforcement.
The provisions of this section shall apply to any contracting
agency that is not a city or county with respect to any of its
employees who were local police officers within the meaning of
Section 20425 prior to its amendment by Chapter 625 of the Statutes
of 1975 and in employment on January 1, 1976.
The provisions of this section shall not otherwise apply to the
employees of any contracting agency nor to any contracting agency
until the contracting agency elects to be subject to the provisions
of this section by amendment to its contract with the board made as
provided in Section 20474 or by express provision in its contract
with the board.
20430. "Local police officer" also includes any officer or
employee of a school district or a community college district that
has established a police department pursuant to Section 39670 or
72330 of the Education Code, whose principal duties consist of active
law enforcement service, except persons whose principal duties are
clerical or otherwise clearly do not fall within the scope of active
law enforcement, even though the person is subject to occasional
call, or is occasionally called upon, to perform duties within the
scope of active law enforcement. This section shall only apply to
any school district or community college district that prior to June
30, 1982, had amended its contract to provide membership for local
police officers.
20431. "Local police officer" also includes any employee of a
contracting agency that is a city, who is employed in a jail or a
detention or correctional facility and having as his or her primary
duty and responsibility the supervision and custody of persons
committed to the jail or facility. It shall not include persons
employed as clerks, typists, teachers, instructors, or psychologists
or to provide food, maintenance, health, or supporting services, even
though responsibility for custody and control of persons so
committed may be incident to, or imposed in connection with, that
service.
This section shall not apply to any contracting agency nor to the
employees of a contracting agency until the agency elects to be
subject to this section by contract or by amendment to its contract
with the board, made pursuant to Section 20474 or by express
provision in its contract with the board.
20433. "Local firefighter" means any officer or employee of a
fire department of a contracting agency, except one whose principal
duties are those of a telephone operator, clerk, stenographer,
machinist, mechanic, or otherwise and whose functions do not clearly
fall within the scope of active firefighting, or active firefighting
and prevention service, active firefighting and fire training, active
firefighting and hazardous materials, active firefighting and fire
or arson investigation, or active firefighting and emergency medical
services, even though that employee is subject to occasional call, or
is occasionally called upon, to perform duties within the scope of
active firefighting, or active firefighting and prevention service,
active firefighting and fire training, active firefighting and
hazardous materials, active firefighting and fire or arson
investigation, or active firefighting and emergency medical services,
but not excepting persons employed and qualifying as firefighters of
equal or higher rank, irrespective of the duties to which they are
assigned.
20434. "Local firefighter" also means any officer or employee of
a fire department of a contracting agency, except one whose principal
duties are those of a telephone operator, clerk, stenographer,
machinist, mechanic, or otherwise and whose functions do not clearly
fall within the scope of active firefighting, fire prevention, fire
training, hazardous materials, emergency medical services, or fire or
arson investigation service, even though that employee is subject to
occasional call, or is occasionally called upon, to perform duties
within the scope of active firefighting, fire prevention, fire
training, hazardous materials, emergency medical services, or fire or
arson investigation service, but not excepting persons employed and
qualifying as firefighters of equal or higher rank, irrespective of
the duties to which they are assigned.
This section shall not apply to the employees of any contracting
agency nor to any contracting agency until the agency elects to be
subject to this section by amendment to its contract with the board,
made pursuant to Section 20474 or by express provision in its
contract with the board.
20435. "Local firefighter" means any officer or employee of a
contracting agency performing a fire training function for a
contracting agency, except one whose principal duties are those of a
telephone operator, clerk, stenographer, machinist, mechanic, or
otherwise and whose functions do not clearly fall within the scope of
active firefighting, fire prevention, fire training, or fire
investigation service even though that employee is subject to
occasional call, or is occasionally called upon, to perform duties
within the scope of active firefighting, fire prevention, fire
training, or fire investigation service, but not excepting persons
employed and qualifying as firefighters or equal or higher rank,
irrespective of the duties to which they are assigned.
This section shall not apply to the employees of any contracting
agency nor to any contracting agency until the agency elects to be
subject to this section by amendment to its contract with the board
made pursuant to Section 20474 or by express provision in its
contract.
20436. "County peace officer" means the sheriff and any officer
or employee of a sheriff's office of a contracting agency, except one
whose principal duties are those of a telephone operator, clerk,
stenographer, machinist, mechanic, or otherwise, and whose functions
do not clearly come within the scope of active law enforcement
service even though the employee is subject to occasional call, or is
occasionally called upon, to perform duties within the scope of
active law enforcement service, but not excepting persons employed
and qualifying as deputy sheriffs or equal or higher rank
irrespective of the duties to which they are assigned. Any other
provision in this part to the contrary notwithstanding, "county peace
officers" shall also include and mean any inspector, investigator,
detective, or person with a comparable title, in any district
attorney's office of a contracting agency whose principal duties are
to investigate crime and criminal cases and who receives compensation
for this service.
"County peace officer" does not include persons employed to
perform identification or communication duties other than persons in
that employment on August 4, 1972, who elected within 90 days
thereafter to be local safety members. A contracting agency may
elect by amendment to its contract to include as "county peace
officer" all persons who were employed to perform identification or
communication duties on August 4, 1972, and who elect within 60 days
of the effective date of the contract amendment to be local safety
members. The election shall apply to the person's past as well as
future service in the employment held on the effective date but shall
not apply to service following any subsequent acceptance of
appointment to a position other than that held on the effective date.
This paragraph shall not apply to persons employed and qualified as
deputy sheriffs or equal or higher rank.
20437. "County peace officer" shall also include the constable
and each regularly employed deputy constable, marshal and each
regularly employed deputy marshal of any judicial district and he or
she shall receive credit for service as a peace officer for any time
he or she served as constable or deputy constable of a township in
the same county.
The provisions of this section shall not apply to the employees of
any contracting agency nor to any such agency unless and until the
contracting agency elects to be subject to the provisions of this
section by amendment to its contract with the board, made as provided
in Section 20474 or by express provision in its contract with the
board.
20438. "County peace officer" shall also include probation
officers, deputy and assistant probation officers, and persons
employed in a juvenile hall or home and having as their primary duty
and responsibility the counseling, supervision and custody of a group
of youths assigned or committed to the hall or home. It shall also
include persons employed as peace officers pursuant to Section 830.5
of the Penal Code, regardless of the administrative title of the
position. It shall not include persons employed as teachers,
instructors, psychologists, or to provide food, maintenance, health
or other supporting services even though responsibility for custody
and control of youths may be incident to or imposed in connection
with that service.
This section shall not apply to any contracting agency nor to the
employees of a contracting agency until the agency elects to be
subject to this section by amendment to its contract with the board,
made as provided in Section 20474 or by express provision in its
contract with the board.
20439. "County peace officer" shall also include employees of the
sheriff employed in a county jail, detention or correctional
facility and having as their primary duty and responsibility the
supervision and custody of persons committed to the jail or facility,
whether or not these employees are deputized. It shall not include
persons employed as clerks, typists, teachers, instructors,
psychologists or to provide food, maintenance, health or supporting
services, even though responsibility for custody and control of
persons so committed may be incident to, or imposed in connection
with, that service or the employees are deputized.
This section shall not apply to any contracting agency nor to the
employees of a contracting agency until the agency elects to be
subject to this section by amendment to its contract with the board,
made as provided in Section 20474 or by express provision in its
contract with the board.
20440. "County peace officer" shall also include employees of the
sheriff employed to attend sessions of the superior or municipal
courts and preserve order in the courtrooms, to guard and maintain
the security of prisoners during court appearances, or to summon
jurors and take responsibility for them while they are deliberating
or absent from the courtroom. It shall not include persons employed
as clerks, typists, teachers, instructors or psychologists.
This section shall not apply to any contracting agency nor to the
employees of a contracting agency until the agency elects to be
subject to this section by amendment to its contract with the board,
made as provided in Section 20474 or by express provision in its
contract with the board.
20441. "County peace officer" shall also include persons employed
by the county parks department whose primary responsibility is
maintaining the peace and whose duties include law enforcement,
emergency medical care first response, or fire suppression and
prevention in the following classifications: Park Ranger I, Park
Ranger II, Park Ranger III, Senior Park Ranger, and Supervising Park
Ranger.
This section shall not apply to the employees of any contracting
agency nor to any agency unless and until the contracting agency
elects to be subject to the provisions of this section by amendment
to its contract with the board, made as provided in Section 20474 or
by express provision in its contract with the board.
This section shall only be applicable in county of the 17th class,
as defined by Sections 28020 and 28038, as amended by Chapter 1204
of the Statutes of 1971.
20442. Persons employed in positions that are found to come
within the definition of local safety member as the result of
administrative review by the board or court action and who were
previously miscellaneous members may elect to remain local
miscellaneous members by filing written notice of their intent with
the board no later than 90 days after the date of notice to the
member of their right to make an election. This section shall not
apply to persons employed by a county of the fifth class.
20443. A member who is employed in a position that is
reclassified from local miscellaneous to local safety and is made
subject to a safety service retirement benefit, other than that
provided in Section 21362, may make an irrevocable election in
writing to remain subject to the miscellaneous service retirement
benefit by filing a notice of that election with the board within 90
days after notification by the board.
20444. "School safety member" includes any officer or employee of
a school district or a community college district which has
established a police department pursuant to Section 39670 or 72330 of
the Education Code, whose principal duties consist of active law
enforcement service, except persons whose principal duties are
clerical or otherwise clearly do not fall within the scope of active
law enforcement, even though the person is subject to occasional
call, or is occasionally called upon, to perform duties within the
scope of active law enforcement.
This section shall only apply to a school district or a community
college district that, pursuant to subdivision (i) of Section 20057,
entered into a contract with the board on or after January 1, 1990.
20445. A member employed with a school district or community
college district, as defined in subdivision (i) of Section 20057, who
is in a position that qualifies as a school safety member, and made
subject to a safety service retirement benefit other than that
provided in Section 21362, may make an irrevocable election in
writing, to remain subject to the miscellaneous service retirement
benefit by filing a notice of that election with the board within 90
days after notification by the board.
CHAPTER 5. CONTRACT MEMBERS OF SYSTEM
Article 1. General Provisions
20460. Any public agency may participate in and make all or part
of its employees members of this system by contract entered into
between its governing body and the board pursuant to this part.
However, a public agency may not enter into the contract within three
years of termination of a previous contract for participation.
20461. The board may refuse to contract with, or to agree to an
amendment proposed by, any public agency for any benefit provisions
that are not specifically authorized by this part and that the board
determines would adversely affect the administration of this system.
20462. The governing body of a public agency that has established
a pension trust or retirement plan funded by individual or group
life insurance or annuity contracts may, notwithstanding any
provision of this part to the contrary, enter into a contract to
participate in this system making its employees members of this
system, and continue the trust or plan with respect to service
rendered prior to the contract date. A pension trust or retirement
plan so continued shall be deemed not a local retirement, pension, or
annuity fund or system for the purpose of any provision of this
chapter. The public agency shall have all the rights of any other
contracting agency to provide prior service benefits for its
employees but may elect in the contract instead not to provide a
benefit with respect to prior service, in which case the service
rendered by its employees prior to contract date shall be deemed not
to be state service.
20463. When the governing body of a public agency desires to
consider the participation of the agency in this system, it shall ask
the board for a quotation of the approximate contribution to this
system that would be required of the agency for that participation.
20464. An employee organization, recognized under Chapter 10
(commencing with Section 3500) of Division 4 of Title 1, and
representing employees of a public agency, may ask the board for a
quotation of the approximate contribution to this system that would
be required of the agency if a specific change was made in the agency'
s contract with this system, if the employee organization is willing
to pay for the cost of that quotation. The board shall furnish copies
of its quotation to both the public agency and the employee
organization.
20465. (a) On request of the board, the public agency shall
furnish data concerning its employees as the board requires to make
the necessary valuations and investigation into the experience among
the employees.
(b) On request of the board, the public agency shall furnish the
board a copy of any third party or internal audit performed by or for
the public agency.
20466. The approximate contribution quoted by the board and the
actual contribution to be made if a contract results shall be
determined by actuarial valuations by the actuary of the prior and
future service liability under this system, on account of the
employees involved in the computation, in the same manner as the
contribution required of the state on account of its employees was
originally determined, except that in consideration of the number of
employees of the agency or other circumstances, a different manner of
determining the contribution may be adopted by the board, upon
recommendation of the actuary.
20467. Notwithstanding Section 20466, the approximate
contribution quoted by the board and the actual contributions for a
contracting agency that is an employer for purposes of Chapter 9
(commencing with Section 20790) shall be the employer rate fixed
under Chapter 9 plus the additional amount required under that
chapter on account of liability for service to date of contract and
for benefits with respect to which it is not subject to Section
20506, the amount to be determined in accordance with Section 20466.
20468. The approximate and actual contributions are similar to
premiums under insurance policies. The approximate contribution
quoted by the board to the public agency is subject to the
contingency that the actual contribution certified by the board after
the approval of a contract may differ from the approximate
contribution because of:
(a) Change in number or salaries of employees included.
(b) Change in prior service benefits.
(c) Time elapsed between the quotation and effective date of the
contract.
(d) Change in effective date of membership.
(e) Change in manner of determining contributions.
(f) Any changes in the facts or assumptions upon which the
quotation was based.
20469. If after receiving the approximate contribution quotation
the governing body intends to approve the proposed contract, it shall
adopt a resolution giving notice of that intention. The resolution
shall contain a summary of the major provisions of the proposed
retirement plan. The contract shall not be approved unless an
election has been held to permit the employees proposed to be
included in this system to express by secret ballot their approval or
disapproval of the retirement proposal. Prior to the election each
governing body shall be furnished with a schedule of rates of
contribution of members, which shall be made available by the
governing body to each employee proposed to be included in this
system. The ballot at the election shall include the summary of the
retirement plan as set forth in the resolution. The election shall
be conducted in the manner prescribed by the governing body which
shall be such as to permit the firefighters, the police officers, the
county peace officers, and the other employees proposed to be
included in this system to express separately their approval or
disapproval.
20470. The governing body shall not include in this system any
group if a majority of its members voted to disapprove the proposed
plan or if two-thirds of those of its members who are also members of
an existing local retirement pension or annuity fund or system do
not vote for approval of the proposed plan. If there are no members
of any group when the election is held, the governing body may
include the group in this system, and members subsequently entering
the group shall become members of this system under the provisions of
this part.
20471. Approval of the contract shall be by ordinance adopted by
the affirmative vote of a majority of the members of the governing
body, not less than 20 days after the adoption of the resolution of
intention, or by ordinance adopted by a majority vote of the
electorate of the public agency voting thereon.
20472. Errors in any contract may be corrected through amendments
approved by the adoption of suitable resolutions by the contracting
parties. Excluded employees may be included by groups through
amendments approved in the manner prescribed for the approval of the
contracts, except that if there were no members of an excluded group
when the contract was entered into, an election among the employees
is not required. Additional benefits for prior service provided in
this part but not included in a contract, may be included through
amendments so approved except that an election among employees is not
required.
20473. Investigations and valuations necessary to adjust the
agency's contributions on account of changed benefits or conditions
of retirement shall be made in the manner prescribed for valuations
and investigations to determine the approximate and actual
contributions. Amendments in the contract necessary because of those
valuations and investigations shall be approved in the manner
prescribed for the approval of the contracts, except that an election
among employees is not required.
20474. Whenever by any provision of law an election is given to
contracting agencies to subject themselves and their employees to
provisions of this part otherwise not applicable to contracting
agencies and their employees, and no other means of making the
election is expressly provided, any contracting agency may make the
election by amendment to its contract with the board approved in the
manner provided for the approval of the contracts including an
election among the employees affected unless the amendment only adds
benefits without affecting members' contributions, in which case the
election among the employees is not required. The amendment shall
specify the date upon which the agency and its employees shall become
subject to the provisions. That date shall not be earlier than the
first day following the approval of the contract pursuant to Section
20471, except that if the rate of the employer's contributions
changes, the effective date shall not be earlier than the first day
of the pay period following the approval. Any election made by
amendment to the contract shall be irrevocable until the contract is
terminated. However, benefits provided by the amendment may be
increased or improved from time to time by further amendment to the
contract. From and after the date specified in the amendment to the
contract the provisions, as they are in effect at the time of
election and as they may be amended in the future, shall apply to the
contracting agency and to its employees, and the rights, privileges,
duties, liabilities, and responsibilities of the contracting agency
and of each of its employees included in this system shall be
governed thereby.
20475. Notwithstanding Section 20474, a contracting agency may
amend its contract or previous amendments to its contract, without
election among its employees, to reduce benefits, to terminate
provisions that are available only by election of the agency to
become subject thereto, to provide different benefits or provisions
or to provide any combination of those changes with respect to
service performed after the effective date of the contract amendment
made pursuant to this section, if the contracting agency has fully
discharged all of the obligations imposed by Chapter 10 (commencing
with Section 3500) of Division 4 of Title 1 with respect to the
contract amendments, and if the amendment provides that:
(a) The contract amendments apply uniformly with respect to all
members within each of the following classifications: local
miscellaneous members, local police officers, local firefighters,
county peace officers, or all local safety members other than local
police officers, local firefighters, and county peace officers.
(b) A member shall be subject to the contract as amended only if,
after the effective date of the contract amendment, the member either
(1) receives service credit for the first time within a
classification, or (2) the member returns to service within a
classification following termination of membership as provided for in
subdivision (b) of Section 20340 unless the member has redeposited
or elects prior to 90 days after returning to service to redeposit
contributions pursuant to Section 20750, in which case the member
shall not be subject to the contract amendment.
Amendments to the contract and amendments of previous amendments
to the contract may be effected pursuant to this section only once
during any three-year period with respect to each of the
classifications.
20476. Whenever any provision of this part requires action by
ordinance, action by resolution is authorized, except with respect to
cities and counties, if the governing body of the public agency is
authorized to take action by resolution.
20477. If the head of a public agency is an individual, rather
than a board or other governing body, all actions required or
permitted by this part to be taken by ordinance may be taken by order
of the individual, and every action required by this part to be
taken by a public agency governed by a governing body shall be taken
by a public agency governed by an individual.
20478. Notwithstanding any other provision of this part, the
board of directors of a metropolitan water district, or the governing
body of any other public agency, shall adopt any order, motion,
resolution or ordinance, required under the provisions of this part
to be adopted by a majority vote or by a two-thirds vote or by any
other specified vote, by an affirmative vote as constitutes under the
provisions of the Metropolitan Water District Act (Chapter 209 of
the Statutes of 1969), or the statute creating or authorizing the
organization of any other public agency, a majority vote or a
two-thirds vote or other specified vote, as the case may be, of the
board or body.
Any order, motion, resolution or ordinance heretofore so adopted
by a metropolitan water district or by such other public agency, and
any contract heretofore entered into between the board of directors
of a metropolitan water district, or the governing body of such other
public agency and the Board of Administration, and which contract
was approved by resolution or ordinance adopted by what constituted
an affirmative two-thirds vote under the Metropolitan Water District
Act, or under the provisions of the statute creating or authorizing
the organization of such other public agency, are hereby ratified,
confirmed, validated, and approved.
20479. Notwithstanding any other provision of law, including, but
not limited to, Chapter 10 (commencing with Section 3500) of
Division 4 of Title 1, no contract or contract amendment shall be
made to provide any retirement benefits for some, but not all members
of the following membership classifications: local miscellaneous
members, local police officers, local firefighters, county peace
officer, or local safety officers.
No contract or contract amendments shall provide different
retirement benefits for any subgroup, including, but not limited to,
bargaining units or unrepresented groups, within those membership
classifications.
This section does not preclude changing membership classification
from one membership classification to another membership
classification or exclusion of groups of members by contract.
For purposes of this section, the term "benefit" shall not be
limited to the benefits set forth in Section 20020.
20480. (a) Notwithstanding any other provision of this part, a
contracting agency, county superintendent of schools, school
district, or community college district, that is forced to reduce the
compensation of its employees as a direct result of a fiscal
emergency may, pursuant to this section and in a manner prescribed by
the board, preserve the retirement benefits of its employees at a
level no lower than that achieved prior to the reduction. The
operative date of the benefit adjustments shall be the date of
adoption of this section by the governing body or the first day of
the pay period in which the reduction occurred but not earlier than
July 1, 1992.
(b) This section shall not apply to any contracting agency, county
superintendent of schools, school district, or community college
district until its governing body adopts a resolution, in a form
provided by the board, to be subject to it and a copy is filed with
this system.
(c) This section shall remain in effect only until January 1,
1996, and as of that date is repealed, unless a later enacted
statute, which is chaptered before that date, deletes or extends that
date.
20481. All members of a local system included by contract in this
system thereupon become subject to this part and cease to be members
of the local system. Payments being made to pensioners or
annuitants of the local system on the effective date of the contract
shall be continued and paid by this system at the rates existing on
that date unless the agency elects in its contract or by amendment
thereto to provide a recalculation of retirement allowances for
persons retired under the local system on the basis of the provisions
of the contract. The liability for those payments shall be included
in the computation of the prior service liability of the contracting
agency. All members of the local system who are members under
provisions continuing membership after termination of service shall
be deemed members of this system under Section 20731 with credit in
this system for all of the service with regard to which membership
was continued under the local system.
20482. Subject to the approval of the board as in the case of all
other employees, the contracting agency may elect to continue the
local system and to place under this system only a portion of the
members of the local system.
20483. If all members of the local system become members of this
system, the operation of the local system shall be discontinued as of
the date provided for in the contract, and if only a part of the
members become members of this system, the operation of the local
system shall be so discontinued with respect to that part.
20484. Notwithstanding Section 20483, if a member of a local
system, which is also a reciprocal system pursuant to Section 20351,
elects to join this system as permitted by Section 20504, the
operation of the local system shall continue.
20485. It is the intent of the Legislature that contracting
agencies in conjunction with recognized local employee organizations,
develop alternative retirement plans that provide benefits under a
defined contribution program.
Article 2. Contract Provisions
20500. The contract may include any provisions consistent with
this part and necessary in the administration of this system as it
affects the public agency and its employees.
Whenever in this part an election is given to contracting agencies
to subject themselves and their employees to provisions of this part
otherwise not applicable to contracting agencies and their employees
by amendment to their contracts with the board, any contract made
after the effective date of the provision giving the election may
include any provisions necessary to give effect to the election of
the contracting agency.
20501. Contracts with school employers may include school
district employees in this system only with respect to service
rendered in a status in which they are not eligible for membership in
the State Teachers' Retirement System.
20502. The contract shall include in this system all
firefighters, police officers, county peace officers, and other
employees of the contracting agency, except as exclusions in addition
to the exclusions applicable to state employees may be agreed to by
the agency and the board. The exclusions shall be based on groups of
employees such as departments or duties, and not on individual
employees, and the exclusions of groups may be made by amendments to
contracts, with respect to future entrants into the group. The board
may disapprove the exclusion of any group, if in its opinion the
exclusion adversely affects the interest of this system. Membership
in this system is compulsory for all employees included under a
contract.
20503. Notwithstanding Section 20055, a contracting agency may
amend its contract to remove exclusions prospectively only, and
without creating liability for prior service.
20504. Notwithstanding Section 20055, a contracting agency, which
is a reciprocal system pursuant to Section 20351, may amend its
contract to remove an exclusion
of groups of employees of the reciprocal system who
elect to become members of this system prospectively only. The
amendment shall not create liability for prior service.
20505. Notwithstanding any other provision of law, every employee
who enters or reenters service with a contracting agency on and
after January 1, 1992, shall immediately become a member of this
system irrespective of any probationary period, if the employee would
otherwise be eligible for membership. This system shall not exclude
employees, or groups of employees, solely on the basis of their
status as probationary employees.
20506. Any contract heretofore or hereafter entered into shall
subject the contracting agency and its employees to all provisions of
this part and all amendments thereto applicable to members, local
miscellaneous members, or local safety members except those
provisions that are expressly inapplicable to a contracting agency
until it elects to be subject to those provisions.
20507. A contracting agency whose contract is effective on and
after January 1, 1974, that does not become an employer for purposes
of Chapter 9 (commencing with Section 20790), or a contracting agency
that ceases to be an employer, shall be subject to all provisions of
the retirement law as it exists on the date of contract or on the
date a contracting agency ceases to be an employer, whichever the
case may be, and as it may be amended thereafter excepting the
provisions of Chapter 9, other than Section 20834, and those
amendments thereafter as are expressly made inapplicable to a
contracting agency until the agency elects to be subject thereto.
20508. When a contracting agency is succeeded by another agency,
whether or not the former agency ceases to exist, or when the
functions of a contracting agency are assumed by a succeeding agency,
the succeeding agency, may, if it is not already a contracting
agency, become a contracting agency of this system. If a succeeding
agency is or becomes a contracting agency, the contract of the former
agency shall be merged into the contract of the succeeding agency.
Whenever there is a merger of contracts pursuant to this section,
whether in whole or in part, the assumed contracts, or portions
thereof, of the former agency's contract shall cease to exist and the
contract of the succeeding agency shall be deemed a continuation of
the prior agency's contract. However, any changes in contract terms
in the succeeding agency's contract with respect to employees of the
former agency shall be considered as a new contract with respect to
those provisions.
Accumulated contributions held for or made by the former agency
and its employees, and assets derived from those contributions, shall
be merged with analogous contributions under the contract of the
succeeding agency. Credit for prior and current service to members
under the former agency's contract, which accrued while they were
eligible for membership, shall not be reduced by the merger.
Employees of a noncontracting public agency included in the
succeeding agency contract shall become members in the manner
applicable to employees of other contracting agencies and shall
receive credit for service accordingly.
The liability to this system with respect to service credited
under the former agency's contract shall become a contractual
liability of the succeeding agency. The former and succeeding
agencies may agree to apportion and adjust between them any payments
with respect to service credit liability. However, no agreement shall
operate to defeat the liability of the succeeding agency with
respect to that service.
20509. When a school district ceases to exist and is succeeded
by, or the territory thereof is attached to, another school district
that is a contracting agency, the contract under which the
contracting agency participates in this system shall be considered,
with respect to the former district and its employees, a continuation
of the contract under which the former district participated, with
the changes as the succeeding contract contains. The board shall
determine the amount of accumulated contributions held under the
contract of the county superintendent of schools which had been made
by the former district, and the contributions shall be transferred to
the credit of the contract under which the succeeding district
participates.
Nothing in this section or Section 20508 shall authorize a school
district, the formation of which becomes effective for all purposes
after October 1, 1961, to participate in this system except as
provided in Chapter 6 (commencing with Section 20610).
20510. When a hospital becomes a contracting agency pursuant to
subdivision (p) of Section 20057, the contract shall be construed as
a continuation of the city's contract for all purposes of this part,
and the sponsoring city, the hospital, and the board shall enter into
an agreement under the terms of which hospital employees shall
retain, under the hospital's contract, all of the retirement rights
and benefits that have accrued to them under the city's contract.
The board shall compute the unpaid costs, if any, of the accrued
rights and benefits, and the city shall pay to the board that amount
in a manner and at times satisfactory to all parties to the
agreement. Thereafter, the city shall be relieved and discharged from
all liabilities on account of rights and benefits that have accrued
to the hospital employees, and the hospital shall then become liable
for those rights and benefits under its contract with the board.
On and after the effective date of the hospital's contract with
the board, neither the city nor the hospital shall be an employer as
defined in Section 20790.
All employees of the city who have retired or separated from
employment prior to the effective date of the hospital's contract
shall be treated as retired city employees or former city employees,
as the case may be, for all purposes of this part, whether or not
they ever worked in the hospital.
20511. Notwithstanding this article or Article 5 (commencing with
Section 20570), when all or a portion of one agency's contract is
merged into that of another, the retirement allowances may be
computed separately for service under the former contract and service
under the succeeding contract. In these cases, a transferred member
shall be subject to the terms and conditions of the succeeding agency'
s contract as the member was a new employee of the succeeding agency
at the time of transfer.
Furthermore, when all or a portion of one agency's contract is
merged into that of another, and when eligibility for membership is
different between the two contracts, the differences shall not create
prior service liabilities as against either agency, and transferred
members shall not be entitled under either contract to credit for
service rendered when they were not eligible for membership.
20512. Whenever in this part an election is given to contracting
agencies to subject themselves and their employees to provisions of
this part otherwise not applicable to contracting agencies and their
employees, a contracting agency may exercise the right of election
independently with respect to its employees included in the insurance
system established under Title II of the Social Security Act and
with respect to its employees not so included and with respect to
those employees who are local police officers, local firefighters,
county peace officers, local safety members other than local police
officers or local firefighters or county peace officers, and local
miscellaneous members.
20513. Notwithstanding the election given in Section 20514 to
contracting agencies, whether to subject themselves and their
employees thereto, the contract of school districts in which the
average daily attendance of all districts combined is in excess of
400,000 and which are governed by the same governing board, without
action by the governing board, shall be subject to that section and
shall include all provisions authorized by Section 20514 to be
included therein by contract amendment.
20514. If the effective date of coverage under the federal system
of members who are employees of a contracting agency under this
system is prior to the time employee federal contributions are first
deducted from the salaries and wages of the employees and a reduced
benefit is provided with respect to service from and after the
effective date of coverage, member contributions shall be transferred
in the manner and to the extent provided in this section to the Old
Age and Survivors' Insurance Revolving Fund and applied to payment of
employee federal contributions for the period prior to the
deductions.
There shall be transferred from the member's accumulated
contributions an amount equal to employee federal contributions due
for the member. The amount so transferred shall not exceed the
difference between the total normal contributions of the member and
the normal contributions that would have been credited to his or her
account had the reduced rate of contribution provided in the amended
contract with the public agency been in effect from and after the
effective date of coverage, assuming that contributions in any year
were made in equal monthly installments.
The amount by which the retroactive employee contributions due for
a member exceeds the amount transferred from the employee account
shall be transmitted to the fund by the contracting agency and
constitute an indebtedness of the member to the employer and a lien
on any salary or wages payable to the employee or on his or her
account.
If the contract is or has been amended to provide for the transfer
of retroactive employee contributions in the manner provided in this
section, the amount by which the total normal contributions of each
member for the period subsequent to the effective date of coverage
under the federal system less the total normal contributions that
would have been credited to the account of the member had the reduced
rate of contribution provided in the amended contract with the
public agency been in effect from and after that date of coverage
exceed the employee federal contributions for the member for the
period after the date of coverage, shall be paid to the member.
20515. (a) A contracting agency by express provision or by
amendment to its contract may provide that, notwithstanding any other
provision of this part, service which was in fact also covered under
the federal system shall not be deemed as service which was also
covered under the federal system, for all purposes of this part,
except for the benefits provided by Article 3 (Commencing with
Section 21570) of Chapter 14. The amendment shall only be applicable
to persons who are employed on and after the effective date of the
amendment.
(b) The amendment made to this section by Chapter 636 of the
Statutes of 1994 shall apply only to a contracting agency that
includes this section in its contract on and after January 1, 1995.
20516. (a) Notwithstanding any other provision of this part, a
contracting agency and its employees may agree, in writing, to share
the costs of any optional benefit that is inapplicable to a
contracting agency until the agency elects to be subject to the
benefit. The agreement shall specify the exact percentage of member
compensation that shall be paid toward the current service cost of
the benefits by members. The member contributions shall be normal
contributions over and above normal contributions otherwise required
by this part and shall be treated as normal contributions for all
purposes of this part. The contributions shall be uniform with
respect to all members within each of the following classifications:
local miscellaneous members, local police officers, local
firefighters, county peace officers, and all local safety members
other than local police officers, local firefighters, and county
peace officers. The balance of any costs shall be paid by the
contracting agency and shall be credited to the employer's account.
(b) This section shall not apply to any optional benefit that is
elected by a contracting agency prior to January 1, 1979.
(c) This section shall not apply to any contracting agency nor to
the employees of a contracting agency until the agency elects to be
subject to this section by contract or by amendment to its contract
made in the manner prescribed for approval of contracts.
Contributions provided by this section shall be withheld from member
compensation or otherwise collected when the contract amendment
becomes effective.
(d) For the purposes of this section, all contributions,
liabilities, actuarial interest rates, and other valuation factors
shall be determined on the basis of actuarial assumptions and methods
that, in the aggregate, are reasonable and which, in combination,
offer the actuary's best estimate of anticipated experience under
this system.
(e) The additional employer contributions required under this
section shall be computed as a level percentage of member
compensation. The additional contribution rate required at the time
this section is added to a contract shall not be less than the sum of
(1) the actuarial normal cost, plus (2) the additional contribution
required to amortize the increase in accrued liability attributable
to benefits elected under this section over a period of not more than
30 years from the date this section becomes effective in the public
agency's contract.
(f) Nothing in this section shall preclude a contracting agency
and its employees from independently agreeing in a memorandum of
understanding to share the costs of any optional benefit or when
initially entering into a contract, any benefit, in a manner
inconsistent with this section. However, any agreement in a
memorandum of understanding that is inconsistent with this section
shall not be part of the contract between this system and the
contracting agency.
Article 3. Contracting Agency Financial Obligations
20530. Any cash and securities to the credit of the local system
and held on account of persons who become members of this system
shall be transferred to this system, as of the effective date of the
contract. The board may make arrangements with the agency for the
transfer of assets, other than an amount equal to the total member
contributions, over an appropriate period following the effective
date of the contract, if it finds that transfer as of the effective
date is not possible without hardship to the agency because of
contractual restrictions on the return of assets of the local system
held by an insurance carrier. The board shall in that case credit,
as interest income, the portion of the assets transferred as is
necessary to compensate the retirement fund for loss of earnings
because of the delay in transfer, the amount to be determined by
applying a rate that is equal to the difference between the average
rate of earnings of the fund on investments made in fixed income
securities during the fiscal year preceding the date of contract and
the annual interest rate to the balance of the assets not
transferred. The value at which the securities shall be credited to
the contracting agency shall be determined by the board. In
crediting transferred cash, as the contracting agency's
contributions, the board may fix the credit, by writing down the book
value of securities purchased with that cash, at an amount that will
result in an interest return under the securities at least equal to
the current rate of interest credited to contributions. As of that
date, the governing body or head of the local system shall certify
the proportion, if any, of its funds that represents the accumulated
contributions of the members, and the relative shares of the members.
20531. (a) Shares of members in the funds of a local employer
shall be credited to the respective individual accounts of the local
agency members who have been included in this system, and
administered as if made during membership in this system, except that
the annuity provided by those contributions with accumulated
interest shall be deducted first from the pension that otherwise
would be payable on account of prior service and the balance of the
contributions with accumulated interest shall be deducted from the
pension that otherwise would be payable on account of current
service. The total of the funds transferred to this system shall be
offset against the prior or current service liability, as the case
may be, before determining the contribution to be paid by the
contracting agency.
(b) A former member of the local retirement system who withdrew
any contributions prior to the effective date of that agency's
contract with this system is entitled to credit for the service upon
which those contributions were made if he or she elects to deposit
any of those withdrawn contributions with this system under the terms
and conditions specified in Section 20750. Any amounts so deposited
with this system shall be administered as provided in this section.
(c) As used in subdivision (b), "former member" shall also include
any former member of the local retirement system who failed to
exercise the right of election pursuant to paragraph (3) of
subdivision (b) of 24810 of the Education Code.
20532. The contracting agency shall make the contribution for its
employees in this system, as recommended by the actuary and approved
by the board and certified by it to the contracting agency.
The contribution may consist of fixed sums, percentages of
compensation of contract members, or both, and shall be paid to this
system as provided in the contract.
The actual contribution is subject to adjustment by the board as
may be necessary on account of any additional prior service credits
that the contracting agency may desire to provide for its employees
in this system or on account of experience under this system as
determined by periodical investigation, valuation and determination
required to be made by the board, including adjustments determined as
necessary by the board, even after the total contributions
determined, plus subsequent adjustments, if any, have been completely
paid.
20533. The employer contribution rate adopted under this part or
because of amendments to the contract or to this part, apply to all
compensation upon the basis of which member's contributions are
deducted after those percentages became or become effective, without
regard to the time when the service was rendered for which the
compensation is paid.
If correction of the amount of compensation reported requires
additional contracting agency contributions, the contributions shall
be computed using the employer rate in effect at the time of the
adjustment. All computations of contracting agency contributions
made on or before January 1, 1983, as a result of correction of the
amount of compensation reported are hereby ratified, confirmed, and
validated and no adjustment shall be made, or right of recovery
recognized, in respect to any computation.
20534. The board may make arrangements with any contracting
agency for the payment of the prior service liability on terms that
its financial condition will permit.
20535. The expense of determining initially the approximate and
actual contributions, with respect to its employees, shall be
assessed against and paid by the public agency on whose account it is
incurred. Payment shall be made directly to the consulting actuary,
if any, and directly to the board for services rendered by its
employees.
20536. The board may include each year in the contribution
required of the contracting agency a reasonable amount, which may
differ from agency to agency, to cover the costs of administering
this system as it affects the active and retired employees of that
agency. The board may also assess a contracting agency a reasonable
amount to cover costs incurred because of the agency's failure to
submit reports and forward contributions on a timely basis. The
payments shall be credited to the current appropriation for support
of the board and available for expenditure by the board.
20537. The board may charge interest on the amount of any payment
due and unpaid by a contracting agency until payment is received.
Interest shall be charged at a rate approximating the average rate
received on moneys then being invested. The interest shall be deemed
interest earnings in the year in which received.
Article 4. Alternative Supplemental Service Retirement Plans
for Local Miscellaneous Members of Riverside County
20550. Notwithstanding any provision of this chapter, a
contracting agency which is a county of the 11th class, as defined by
Sections 28020 and 28032, as amended by Chapter 1204 of the Statutes
of 1971 may, after executing an agreement therefor, separate and
apart from Chapter 10 (commencing with Section 3500) of Division 4 of
Title 1, with representatives of recognized employee organizations,
as defined by subdivision (b) of Section 3501, amend its contract to
provide the alternate benefit afforded by Section 20552 for its local
miscellaneous members whose service is included in the federal
system and the benefit afforded by Section 20553 for all its local
miscellaneous members. The employer's contribution rate shall be
fixed pursuant to this article.
Participation in the plan afforded by this article shall be
available to any employee of the contracting agency who is a local
miscellaneous member subject to Section 21353 on the day immediately
preceding the effective date of a contract amendment entered into
pursuant to this article.
Each contracting agency shall ensure that each eligible member
receives sufficient information to permit an informed election, is
counseled regarding the financial implications of the foregoing
choices, and receives an election document. The election document
shall be filed with the contracting agency.
A local miscellaneous member who is subject to this article shall
also be subject to all other provisions of this part. However, in
the event of a conflict, this article shall supersede and prevail
over provisions or the application of provisions otherwise contained
in this part.
20551. A person who becomes a local miscellaneous member of a
contracting agency on or after the effective date of the agency's
contract to be subject to this article shall be subject to the
benefits provided in Section 21353 but may, during an open 120-day
period in each calendar year, to be determined by the contracting
agency, make an irrevocable election to be subject, for all future
local miscellaneous service with the contracting agency on and after
the first of the month following the filing of the election with the
employer, to the benefits provided by Section 20552 or Section 20553.
A current member may make an irrevocable election to be subject to
the benefits provided for in this article for all future local
miscellaneous service with the contracting agency during an annual
open 120-day period to be
determined by the contracting agency and that shall be
effective on the first of the month following the filing of the
election with the employer.
Notwithstanding any other provision of this article, a member who
has elected to be subject to Section 20552 may, at any annual open
period next following the attainment of 10 years of credited service
with the contracting agency, irrevocably elect to be subject,
prospectively only, to the benefits provided by Section 21353 or
Section 20553. Any person who makes that election may never
thereafter change that election.
20552. The combined current and prior service pensions for a
local miscellaneous member whose service is subject to this article
is a pension derived from the contributions of the employee which,
when added to the service retirement annuity that is derived from the
accumulated normal contributions of the member at the date of
retirement shall equal the fraction of one-hundredth of the member's
final compensation set forth opposite the member's age at retirement
taken to the preceding completed quarter year in the following table,
multiplied by the member's number of years of local miscellaneous
service subject to this article:
Age at Retirement Fraction
55 ....................... .5000
55 1/4 ................... .5250
55 1/2 ................... .5500
55 3/4 ................... .5750
56 ....................... .6000
56 1/4 ................... .6250
56 1/2 ................... .6500
56 3/4 ................... .6750
57 ....................... .7000
57 1/4 ................... .7250
57 1/2 ................... .7500
57 3/4 ................... .7750
58 ....................... .8000
58 1/4 ................... .8250
58 1/2 ................... .8500
58 3/4 ................... .8750
59 ....................... .9000
59 1/4 ................... .9250
59 1/2 ................... .9500
59 3/4 ................... .9750
60 ...................... 1.0000
60 1/4 .................. 1.0250
60 1/2 .................. 1.0500
60 3/4 .................. 1.0750
61 ...................... 1.1000
61 1/4 .................. 1.1250
61 1/2 .................. 1.1500
61 3/4 .................. 1.1750
62 ...................... 1.2000
62 1/4 .................. 1.2250
62 1/2 .................. 1.2500
62 3/4 .................. 1.2750
63 ...................... 1.3000
63 1/4 .................. 1.3250
63 1/2 .................. 1.3500
63 3/4 .................. 1.3750
64 ...................... 1.4000
64 1/4 .................. 1.4250
64 1/2 .................. 1.4500
64 3/4 .................. 1.4750
65 ...................... 1.5000
Notwithstanding any other provision of this part, the retirement
allowance formula for any member subject to this section who has 35
years of credited service and attains age 55 years, is the fraction
of final compensation set forth above at age 65 multiplied by the
current and prior service subject to this section that the member is
credited with at retirement.
A local miscellaneous member subject to this section shall be
retired for service upon his or her written application to the board
if he or she has attained age 55 and is credited with five years of
state service.
20553. The combined current and prior service pensions for a
local miscellaneous member whose service is subject to this section
is a pension derived from the contributions of the employer
sufficient, when added to the service retirement annuity that is
derived from the accumulated normal contributions of the member at
the date of retirement, to equal the fraction of one-fiftieth of the
member's final compensation set forth opposite the member's age at
retirement, taken to the preceding completed quarter year, in the
following table, multiplied by the number of years of local
miscellaneous service subject to this article, with which the member
is entitled to be credited at retirement:
Age of Retirement Fraction
50 ........................ .688
50 1/4 .................... .698
50 1/2 .................... .709
50 3/4 .................... .719
51 ........................ .730
51 1/4 .................... .741
51 1/2 .................... .753
51 3/4 .................... .764
52 ........................ .776
52 1/4 .................... .788
52 1/2 .................... .800
52 3/4 .................... .813
53 ........................ .825
53 1/4 .................... .839
53 1/2 .................... .852
53 3/4 .................... .865
54 ........................ .879
54 1/4 .................... .893
54 1/2 .................... .908
54 3/4 .................... .923
55 ........................ .937
55 1/4 .................... .953
55 1/2 .................... .969
55 3/4 .................... .985
56 ....................... 1.000
56 1/4 ................... 1.017
56 1/2 ................... 1.034
56 3/4 ................... 1.050
57 ....................... 1.067
57 1/4 ................... 1.084
57 1/2 ................... 1.101
57 3/4 ................... 1.119
58 ....................... 1.136
58 1/4 ................... 1.154
58 1/2 ................... 1.173
58 3/4 ................... 1.191
59 and over .............. 1.209
The fraction specified in the above table shall be
reduced by one-third as applied to that part of final compensation
that does not exceed four hundred dollars ($400) per month for all
service of a member that has also been included in the federal
system.
A local miscellaneous member subject to this section shall be
retired for service upon his or her written applications to the board
if he or she has attained age 50 and is credited with five years of
state service.
20554. Notwithstanding any provision of Chapter 8 (commencing
with Section 20670), the normal rate of contribution for a local
miscellaneous member subject to Section 20552 shall be 2 percent of
the compensation paid to the member. A contracting agency may pay
all or a portion of the normal contributions required to be paid by a
local miscellaneous member pursuant to Section 20691.
This section shall be construed as if it were a part of Chapter 8
(commencing with Section 20670).
20555. (a) The normal rate of contribution for a local
miscellaneous member subject to Section 20553 whose service is not
included in the federal system shall be 8.25 percent of the
compensation per month paid to the member.
(b) The normal rate of contribution for a local miscellaneous
member whose service is included in the federal system shall be 8.25
percent of compensation in excess of one hundred thirty-three dollars
and thirty-three cents ($133.33) per month paid to the member. The
rates of contribution established for local miscellaneous members in
this section shall apply only to the compensation paid the member on
and after the date that the member becomes subject to Section 20553.
This section shall be construed as if it were part of Chapter 8
(commencing with Section 20670).
20556. The employer contribution rate of a contracting agency
subject to this article shall not be reduced because of concurrent
coverage of social security.
Article 5. Termination of Contracts
20570. If the contract has been in effect for at least five years
and was approved by an ordinance or resolution adopted by the
governing body of the contracting agency, the governing body may
terminate it by the adoption of a resolution giving notice of
intention to terminate, and by the adoption, not less than one year
thereafter by the affirmative vote of two-thirds of the members of
the governing body, of an ordinance or resolution terminating the
contract. Termination shall be effective with board approval on the
date designated in the ordinance or resolution terminating the
contract.
20571. If the contract has been in effect for at least five years
and was approved by an ordinance adopted by a majority vote of the
electorate, termination by the contracting agency may be effected not
less than one year after authority has been granted by ordinance
adopted by a majority vote of the electorate of the contracting
agency voting thereon. Termination shall be effective with board
approval on the date designated in the ordinance or resolution
terminating the contract.
20572. If a contracting agency fails for 30 days after demand by
the board to pay any installment of contributions required by its
contract, or fails for three months after demand by the board
therefor to file any information required in the administration of
this system with respect to that agency's employees, or if the board
determines that the agency is no longer in existence, the board may
terminate that contract by resolution adopted by a majority vote of
its members effective 60 days after notice of its adoption has been
mailed by registered mail to the governing body of the contracting
agency.
20573. Notwithstanding any other provision of law, the board may
negotiate with the governing board of the terminating agency, or the
governing board of any agency or agencies which may be assuming any
portion of the liabilities of the terminating agency as to the
effective date of termination and the terms and conditions of the
termination and of the payment of unfunded liabilities.
For purposes of payment of unfunded actuarial liabilities this
section shall also apply to inactive contracting agencies, or an
inactive member category as determined by the board.
20574. The board shall have a lien on the assets of a terminated
contracting agency, subject only to a prior lien for wages, in an
amount equal to the actuarially determined deficit in funding for
earned benefits of the employee members of the agency. The assets
shall also be available to pay actual costs, including attorney fees,
necessarily expended for collection of such lien.
20575. Notwithstanding any other provision of this part to the
contrary, the board may enter into an agreement with the governing
body of a terminating agency that will cease to exist in order to
ensure that (a) the final compensation used in the calculation of
benefits of its employees shall be calculated in the same manner as
the benefits of employees of agencies that are not terminating,
regardless of whether they retire directly from employment with the
terminating agency or continue in other public service; and (b)
related necessary adjustments in the employer's contribution rate are
made, from time to time, by the board prior to the date of
termination to ensure that benefits are adequately funded or any
other actuarially sound payment technique, including a lump-sum
payment at termination, is agreed to by the governing body of the
terminating agency and the board.
20576. Upon the termination of a contract, the board shall hold
for the benefit of the members of this system who are credited with
service rendered as employees of the contracting agency and for the
benefit of beneficiaries of this system who are entitled to received
benefits on account of that service the portion of the accumulated
contributions then held by this system and credited to or as having
been made by the agency as does not exceed the difference between (1)
an amount actuarially equivalent, including contingencies for
mortality fluctuations, as determined by the actuary and approved by
the board, to all this system is obligated to pay after the effective
date of termination to or on account of persons who are or have been
employed by, and on account of service rendered by them to, the
agency, and (2) the contributions, with credited interest thereon,
then held by this system as having been made by those persons as
employees of the agency.
20577. If, at the date of termination, the sum of the accumulated
contributions credited to, or held as having been made by, the
contracting agency and the accumulated contributions credited to or
held as having been made by persons who are or have been employed by
the agency, as employees of the agency, is less than the actuarial
equivalent specified in clause (1) of Section 20576, the agency shall
contribute to this system under terms fixed by the board, an amount
equal to the difference between the amount specified in clause (1) of
Section 20576 and the accumulated contributions. The amount of the
difference shall be subject to interest at the actuarial rate from
the date of contract termination to the date the agency pays this
system. If the agency fails to pay to the board the amount of the
difference, all benefits under the contract, payable after the board
declares the agency in default therefor, shall be reduced by the
percentage that the sum is less than the amount in clause (1) of,
Section 20576 as of the date the board declared the default. If the
sum of the accumulated contributions is greater than the amount in
clause (1) of Section 20576, an amount equal to the excess multiplied
by the ratio of the market-to-book value of all investments shall be
paid by this system to the contracting agency, including interest at
the actuarial rate from the date of contract termination to the date
this system makes payment. The market and book values used shall be
the values calculated in the most recent annual closing.
The right of an employee of a contracting agency, or his or her
beneficiary, to a benefit under this system, whether before or after
retirement or death, is subject to the reduction.
20578. Notwithstanding any other provision of law, on and after
January 1, 1991, the rights and benefits of a former employee of a
contracting agency which terminated on or before January 1, 1991, or
of his or her beneficiary, shall be the same as if the agency had
continued as a contracting agency. Any monthly allowance of that
individual, or of his or her beneficiary, that was reduced pursuant
to Section 20577 because the contracting agency failed to pay the
board the amount of the difference, shall not be subject to continued
reduction on or after January 1, 1991. As of January 1, 1991,
benefits shall be paid at the level provided in the contract prior to
that reduction. However, if a former employee of a contracting
agency that terminated on or before January 1, 1991, becomes employed
by another covered employer after the date of termination, including
an employer subject to reciprocity, the benefits shall be calculated
by using the highest compensation earned by the individual.
In accordance with Section 20580, an individual who has withdrawn
his or her accumulated contributions from the terminated agency shall
not be permitted to redeposit any withdrawn contributions upon again
becoming a member of this system.
All assets and liabilities of contracting agencies which have
terminated on or before January 1, 1991, shall be pooled into a
single account on January 1, 1991, to provide exclusively for the
payment of benefits described in this section.
20579. For purposes of Sections 20576 and 20577 in the case of a
contracting agency that is an employer for purposes of Chapter 9
(commencing with Section 20790), the contracting agency shall cease
to be an employer on the day preceding the effective date of
termination, and all accumulated contributions held by this system
and made by or credited to the contracting agency shall be determined
in accordance with Section 20834.
20580. Upon the termination of a contract, all memberships in
this system existing because of that contract continue in existence
to the extent that there are accumulated contributions to the credit
of each local member, but any member may elect to withdraw his or her
accumulated contributions. The status of any member who does not
withdraw his or her accumulated contributions shall be the same as if
the public agency had continued as a contracting agency. The
membership of any member who elects to withdraw his or her
accumulated contributions shall be terminated forthwith, and he or
she shall not be entitled to any further benefit based upon service
credited as an employee of the contracting agency, nor shall he or
she have the right to redeposit those withdrawn contributions upon
again becoming a member of this system. The portion of the
contributions of the contracting agency held under Section 20576 to
the credit of each member shall be determined by the board, and may
be adjusted from time to time prior to termination of membership. A
member whose membership continues under this section is subject to
the same age and incapacity requirements as apply to other members
for service or for disability retirement, but he or she is not
subject to a minimum service requirement. Except as provided in
Section 20578, he or she shall receive the retirement benefits as his
or her accumulated contributions, together with the portion of the
excess of the contributions of the contracting agency as are credited
to him or her, will provide, as determined by the board, but the
provisions of this part relative to minimum retirement allowances
shall not apply to him or her, nor shall those benefits exceed the
benefits provided by the contract prior to its termination. Upon the
death of a member the basic death benefit shall be his or her
accumulated contributions.
20581. If a public agency that terminated its contract enters
into a contract for participation in this system, the contract may
provide for increase in benefits of persons retired or members who
retained rights under this system, if the benefits were reduced under
this article at the time of termination, to the level provided in
the contract for members, and for redeposit of any contributions for
service to the agency not credited under a local system maintained by
the agency after termination, withdrawn at termination by a person
who becomes a member on contract date. Unless the redeposit is made,
the member shall not receive credit for the service. All service
rendered prior to contract date and credited as a result of the
contract shall constitute prior service whether or not rendered
during the period of the terminated contract, and all assets and
liabilities existing with respect to the previous contract shall
become assets and liabilities with respect to the new contract.
20582. Any event occurring on or after the date on which
termination of a contract becomes effective shall not be considered
in determining the right of any member to retire for service or
disability or the rights of his or her beneficiaries.
20583. The right to a retirement allowance, of a person who had
retired prior to the effective date of the termination of a contract,
or who has qualified and applied for retirement by written document
received at the board's office in Sacramento, prior to the effective
date, even though the board does not approve the application until a
later date, and the right of any person to a benefit on account of a
death that occurred prior to the effective date, is not affected by
termination of the contract, unless the contracting agency fails to
make the contributions required of it because of the participation of
its employees in this system.
20584. The board may postpone the payment of any amount due a
contracting agency on termination of a contract if payment would
require the sale of securities, that, in the opinion of the board,
would affect adversely the interests of this system.
If the board delays a payment longer than the period reasonably
necessary for the determination of the amount due and for the
necessary action by the board, interest shall be allowed on the
amount remaining due and unpaid from time to time at the rate then in
use under this system, and paid to the contracting agency at the
same time and in the manner as the original amount due.
20585. Notwithstanding any other provision of this article the
board may enter into an agreement with the governing body of a
contracting agency whose contract has been in effect for at least
five years and the board of supervisors of a county maintaining a
retirement system established under the County Employees Retirement
Law of 1937 for termination of the contracting agency's participation
in this system and inclusion of its employees in the county
retirement system. The agreement shall contain provisions the board
finds necessary to protect the interests of this system for
determination of the amount, time, manner of transfer of cash or the
securities, or both, to be transferred to the county system as
representing the value of the interests in the retirement fund of the
contracting agency and its employees by reason of accumulated
contributions credited to the agency and its employees; provided that
the amount transferred shall not exceed the amount of the
accumulated contributions. Any amount representing the difference
between the value of the interests in the retirement fund of the
contracting agency and its employees, and the accumulated
contributions credited to the agency and its employees, shall be
credited to the reserve under Section 20174. All liability of this
system with respect to members and retired persons under the contract
shall cease and shall become the liability of the county system as
of the date of termination specified in the agreement. Liability of
the county system shall be for payment of benefits in accordance with
Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of
Title 3 applicable to it except that allowances of persons retired
on the termination date and their beneficiaries and of beneficiaries
of deceased members or retired persons who are receiving allowances
on that date, shall be continued in at least the amount provided
under the agency's contract as it was on that date. The termination
shall not affect the contribution rate of any member in any other
employment under this system on the date of termination or any
retirement allowance or other benefit based on service to another
employer being paid on such termination date. Any member who becomes
a member of a county system upon the contract termination shall be
subject to this part and of Chapter 3 (commencing with Section 31450)
of Part 3 of Division 4 of Title 3 extending rights to a member or
subjecting him or her to limitations because of membership in another
retirement system to the same extent that he or she would have been
had he or she been a member of the county system during his or her
membership in this system under the terminated contract. Upon
execution of the agreement, a contracting agency that is an employer
under Chapter 9 (commencing with Section 20790) shall cease to have
that status, and the accumulated contributions of the contracting
agency shall be determined and thereafter held as provided in Section
20834.
20586. The board may enter into an agreement in accordance with
Section 20585 for termination of a contract that has been in effect
for at least five years with respect to local firefighters if the
firefighting function of the contracting agency and local
firefighters have been transferred to a district which participates
in a county system established under the County Employees Retirement
Law of 1937. The contract
shall continue with respect to all employees of the contracting
agency other than local firefighters.
20587. The board may enter into an agreement in accordance with
Section 20585 for termination of a contract that has been in effect
for at least five years with respect to local members if particular
functions of the contracting agency and local members have been
transferred to a district or a county service area that participates
in a county system established under the County Employees Retirement
Law of 1937. The contract shall continue with respect to all other
employees of the contracting agency.
20588. Notwithstanding any other provision of this article, the
board may, pursuant to this section and Section 31657, enter into an
agreement with the board of retirement of a county maintaining a
county system established under the County Employees Retirement Law
of 1937, for termination of participation of a city whose contract
has been in effect for at least five years in this system with
respect to certain local safety members who have ceased to be
employed by the city and have been employed by a county or district
as a result of a transfer of firefighting or law enforcement
functions from the city to the county or district and inclusion of
the former city employees in that county system. The agreement shall
contain provisions the board finds necessary to protect the
interests of this system for determination of the amount, time,
manner of transfer of cash or the securities, or both, to be
transferred to the county system as representing the actuarial value
of the interests in the retirement fund of the city and the
transferred employees by reason of accumulated contributions credited
to that city and the employees transferred. The agreement shall
apply only to employees who are employed by the county or district on
the effective date of the agreement. All liability of this system
with respect to the members transferred under that agreement shall
cease and shall become the liability of the county system as of the
date of transfer specified in the agreement. Liability of the county
system shall be for payment of benefits to transferred employees in
accordance with Chapter 3 (commencing with Section 31450) of Part 3
of Division 4 of Title 3. Any member transferred who becomes a
member of a county retirement system upon that transfer date shall be
subject to provisions of this part and of Chapter 3 (commencing with
Section 31450) of Part 3 of Division 4 of Title 3 extending rights
to a member or subjecting him or her to limitations because of
membership in another retirement system to the same extent that he or
she would have been had he or she been a member of the county system
during his or her membership in this system.
This section shall apply only in a county of the first class, as
defined by Section 28020, as amended by Chapter 1204 of the Statutes
of 1971, and Section 28022, as amended by Chapter 43 of the Statutes
of 1961.
20589. Notwithstanding any other provision of this article, the
board may, pursuant to this section and Section 31657.1, enter into
an agreement with the governing body of a city whose contract has
been in effect for at least five years and the board of supervisors
of a county maintaining a retirement system established under the
County Employees Retirement Law of 1937 (Chapter 3 (commencing with
Section 31450) of Part 3 of Division 4 of Title 3), for termination
of participation of a city with respect to local safety members who
have ceased to be employed by the city and have been employed by a
county or district as a result of a transfer of firefighting or law
enforcement functions from the city to the county or district and
inclusion of the former city employees in that county system. The
agreement shall contain provisions the board finds necessary to
protect the interests of this system for determination of the amount,
time, manner of transfer of cash or the securities, or both, to be
transferred to the county system as representing the actuarial value
of the interests in the retirement fund of the city and the
transferred employees by reason of accumulated contributions credited
to that city and the employees transferred. The agreement shall
apply only to employees who are employed by the county or district on
the effective date of the agreement. All liability of this system
with respect to the members transferred under that agreement shall
cease and shall become the liability of the county retirement system
as of the date of transfer specified in the agreement. Liability of
the county system shall be for payment of benefits to transferred
employees in accordance with Chapter 3 (commencing with Section
31450) of Part 3 of Division 4 of Title 3. Any member transferred
who becomes a member of a county retirement system upon that transfer
date shall be subject to Chapter 3 (commencing with Section 31450)
of Part 3 of Division 4 of Title 3 extending rights to a member or
subjecting him or her to limitations because of membership in another
retirement system to the same extent that he or she would have been,
had he or she been a member of the county system during his or her
membership in this system.
This section shall remain in effect only until January 1, 1998,
and as of that date is repealed, unless a later enacted statute,
which is enacted before January 1, 1998, deletes or extends that
date.
20590. Notwithstanding any other provision of this article, the
board may enter into an agreement with the governing body of a
contracting agency, other than a housing authority, and the governing
body of a city with a population in excess of 2,000,000 and
maintaining its own retirement system, for termination of the
contracting agency's participation in this system and inclusion of
the employees in the city retirement system. The agreement shall
contain provisions the board finds necessary to protect the interests
of this system for determination of the amount, time, manner of
transfer of cash or the securities, or both, to be transferred to the
city system as representing the value of the interests in the
retirement fund of the contracting agency and its employees by reason
of contributions and interest credited to the agency and its
employees. All liability of this system with respect to members and
retired persons under the contract shall cease and shall become the
liability of the city system as of the date of termination specified
in the agreement. Liability of the city system shall be for payment
of benefits to persons retired on the termination date and their
beneficiaries and of beneficiaries of deceased members in at least
the amount provided under the agency's contract as it was on that
date. The termination shall not affect the contribution rate of any
member in any other employment under this system on the date of
termination or any retirement allowance or other benefit based on
service. Any member who becomes a member of a city system upon the
contract termination shall be subject to those provisions of this
part extending rights to a member or subjecting the member to
limitations because of membership in another retirement system to the
same extent that the member would have been had he or she been a
member of the city system during his or her membership in this system
under the terminated contract.
20591. Notwithstanding any other provision of this article, the
board may enter into an agreement in accordance with Section 20590
with the governing body of a contracting agency, and the governing
body of a city maintaining its own retirement system for termination
of the contracting agency's participation in this system with respect
to local firefighters and inclusion of those local firefighters in
that city retirement system if the firefighting function of the
contracting agency and the local firefighters have been transferred
to that city. The contract shall continue with respect to all
employees of the contracting agency other than local firefighters.
20592. Notwithstanding any other provision of law, when all or
part of an employer's function is transferred to an entity that is
not an employer, the board may, by contract between the board, the
employer, and the succeeding entity, transfer all or part of the
assets and liabilities accumulated in this system by the employer to
the succeeding entity.
Members employed by that employer shall have an individual
election whether all accumulated contributions shall be transferred
to the succeeding entity or left on deposit with this system.
The accumulated contributions may be directly transferred to the
succeeding entity by the board for those members who so request.
20593. Notwithstanding any other provision of law, when the
management of a health district is assumed by the governing body of a
county of the 15th class, as defined by Sections 28020 and 28036, as
amended by Chapter 1204 of the Statutes of 1971, the contract shall
be construed as a continuation of the district's contract for all
purposes of this part. Section 20834 shall not apply upon the
execution of an agreement with the board and the governing body of
the county for the assumption.
CHAPTER 6. SCHOOL EMPLOYERS
20610. Every county superintendent of schools shall enter into a
contract with the board for the inclusion in this system of (a) all
of the employees of the office of county superintendent whose
compensation is paid from the county school service fund other than
employees electing pursuant to Section 1313 of the Education Code to
continue in membership in a county system; and (b) all of the
employees of school districts and community college districts
existing on July 1, 1949, or thereafter formed, within his or her
jurisdiction, other than school districts that are contracting
agencies or that maintain a district, joint district, or other local
retirement system, in respect to service rendered in a status in
which they are not eligible for membership in the State Teachers'
Retirement System. The effective date of each contract shall be not
later than July 1, 1949. For the purposes of this part those school
district employees shall be considered to be employees of the county
superintendent of schools having jurisdiction over the school
district by which they are employed and service to the district shall
be considered as service to the county superintendent of schools.
20611. A regional occupational center established pursuant to
Chapter 9 (commencing with Section 52300) of Division 4 of the
Education Code by two or more school districts by a joint powers
agreement shall be deemed a school district for purposes of this
part. The board and the county superintendent of schools, upon the
request of the governing body of any center in the county, shall
amend the contract entered into under this chapter to include the
employees of the center who are not eligible to membership in the
State Teachers' Retirement System. Credit shall not be granted for
any service in that employment prior to the effective date of the
amendment. However, on the request of the governing body of the
center, the amendment may provide that the membership of any person
becoming a member in that employment on the effective date of the
amendment shall be retroactive to the date of that person's entry
into that employment. If the amendment provides for the retroactive
membership, both the member and the center shall contribute to the
retirement fund for the period the amounts they would have
contributed had the amendment been in effect on the date of the entry
into employment.
20612. The board and the county superintendent of schools, upon
the request of any school district in the county that is a
contracting agency, shall amend the contract entered into under this
chapter to include the employees of the district. The request for
the amendment shall be made in the manner provided for approval of
contracts except that an election among employees shall not be
required. Any amendments under this section shall be effective on
the first day of the fiscal year next succeeding that in which the
contract is executed.
20613. An amendment executed under Section 20612 shall be deemed
a continuation and an amendment, to the extent of any variation in
the two contracts, of the district's contract with respect to rights
of all employees of the district under this system. Accumulated
contributions held for or as having been made by the district and its
employees and the assets derived from those contributions shall be
transferred to the credit of the county superintendent of schools as
a contracting agency. The liability of the district after the
effective date of the amendment shall be as provided in former
Section 20584, as amended by Chapter 857 of the Statutes of 1965.
20614. Every school district, except school districts in which
the average daily attendance of all districts combined is in excess
of 400,000 and which are governed by the same governing board, which
is a contracting agency, shall take all necessary action to
accomplish an amendment to the contract of the county superintendent
of schools pursuant to Sections 20612 and 20613. Such amendment shall
be effective July 1, 1961. Any amendment which results in exclusion
of any group from membership or in the modification of benefits of
members because of coverage under the federal system shall be
effective only as to persons entering or re-entering employment after
May 30, 1961.
20615. Except as otherwise provided in this chapter, all of the
provisions of Chapter 5 (commencing with Section 20460) apply to
contracts made pursuant to this chapter.
20616. Sections 20469, 20470, 20502, 20512, 20570, 20571, and
20572 do not apply to contracts made pursuant to this chapter. The
county superintendent of schools shall have no authority to exercise
any election under any provision of this part that applies to a
contracting agency only on its election to be subject to it.
20617. The county superintendent of schools at the close of each
month shall draw requisitions against the county school service fund
and the funds of the respective school districts for amounts equal to
the total of the employers' contributions required to be paid from
the county school service fund and from the funds of the districts,
and the contributions deducted from the compensation of employees
paid from those funds. The amounts shall be deposited in the county
treasury to the credit of the contract retirement fund, which is
hereby created. The employers of persons paid from other funds, at
the close of each month, shall pay into the contract retirement fund
the amounts required to be paid by those employers together with the
contributions deducted from the compensation of those employees.
Thereafter the county superintendent of schools shall draw his or
her requisitions against the contract retirement fund and in favor of
the board which, when allowed by the county auditor, shall
constitute warrants against the fund for the amount of the employees'
contributions transferred to or otherwise paid into the fund during
that month and for the amount of employers' contributions transferred
to or otherwise paid into the fund. The county superintendent of
schools shall forward the warrants to the board.
20618. The assets and liabilities arising out of contracts with
school employers, as defined in Section 20063, shall be merged,
excluding that portion of a contract with respect to local police
officers, as defined in Section 20430, and those contracts with
school districts or community college districts, as defined in
subdivision (i) of Section 20057, which employ school safety members,
as defined in Section 20444. Employer accumulated contributions
credited to those entities on June 30, 1982, and all the
contributions paid by a school employer after June 30, 1982, shall be
held exclusively for the benefit of school members, retired school
members, and their beneficiaries.
A person who is a member under a contract between the board and
school districts or community college districts prior to July 1,
1983, shall not be denied any right extended to him or her by reason
of that membership.
CHAPTER 7. COMPENSATION
20630. As used in this part, "compensation" means the
remuneration paid out of funds controlled by the employer in payment
for the member's services performed during normal working hours or
for time during which the member is excused from work because of:
holidays; sick leave; industrial disability leave, during which,
benefits are payable pursuant to Sections 4800 and 4850 of the Labor
Code or Article 4 (commencing with Section 19869) of Chapter 2.5 of
Part 2.6; vacation; compensatory time off; or leave of absence. When
compensation is reported to the board, the employer shall identify
the pay period in which the compensation was earned regardless of
when reported or paid. Compensation shall be reported in accordance
with Section 20636 and shall not exceed compensation earnable, as
defined in Section 20636.
20631. A contracting agency may report an amount for each member
that is equal to a uniformly applied percentage of salary in lieu of
computing and reporting the actual compensation attributable to each
individual member if the contracting agency has agreed in a
memorandum of understanding reached pursuant to Chapter 10
(commencing with Section 3500) of Division 4 of Title 1 that the
aggregate amount to be reported by the contracting agency for all
members within a membership classification bears a reasonable
relation to the aggregate amount that would otherwise be required to
be reported pursuant to Section 20636.
20632. For state employees in classifications designated by the
Director of the Department of Personnel Administration who are also
excluded from, or otherwise not subject to, collective bargaining,
and for employees in bargaining units for which a memorandum of
understanding has been agreed to by the state employer and the
recognized employee organization to become subject to this section,
compensation for uniforms shall not constitute "compensation" for the
purposes of the computation of retirement contributions by employees
and the state or for the purposes of the calculation of retirement
benefits.
20633. Notwithstanding any other provision of this part,
compensation includes salary withheld by the employer in accordance
with Section 45165 or 88164 of the Education Code, which provide for
continuation of salary payments during a period in which the member
renders no service. The withheld salary shall be reported as earned.
20634. For a university member appointed under a health sciences
compensation plan of the university, "compensation" shall not include
past or future supplemental payments made pursuant to any health
sciences compensation plan.
20635. When the compensation of a member is a factor in any
computation to be made under this part, there shall be excluded from
those computations any compensation based on overtime put in by a
member whose service retirement allowance is a fixed percentage of
final compensation for each year of credited service. For the
purposes of this part, overtime is the aggregate service performed by
an employee as a member for all employers and in all categories of
employment in excess of the hours of work considered normal for
employees on a full-time basis, and for which monetary compensation
is paid.
If a member concurrently renders service in two or more positions,
one or more of which is full time, service in the part-time position
shall constitute overtime. If two or more positions are permanent
and full time, the position with the highest payrate or base pay
shall be reported to this system. This provision shall apply only to
service rendered on or after July 1, 1994.
20636. (a) As used in this part, "compensation earnable" by a
member means the payrate and special compensation of the member, as
defined by subdivisions (b), (c), and (g).
(b) (1) "Payrate" means the normal monthly rate of pay or base pay
of the member paid in cash to similarly situated members of the same
group or class of employment for services rendered on a full-time
basis during normal working hours. "Payrate" for a member who is not
in a group or class means the monthly rate of pay or base pay of the
member, paid in cash and pursuant to publicly available pay
schedules, for services rendered on a full-time basis during normal
working hours.
(2) The computation for any leave without pay of a member shall be
based on the compensation earnable by him or her at the beginning of
the absence.
(3) The computation for time prior to entering state service shall
be based on the compensation earnable by him or her in the position
first held by him or her in state service.
(c) (1) Special compensation of a member includes any payment
received for special skills, knowledge, abilities, work assignment,
workdays or hours, or other work conditions.
(2) Special compensation shall be limited to that which is
received by a member pursuant to a labor policy or agreement or as
otherwise required by state or federal law, to similarly situated
members of a group or class of employment that is in addition to
payrate.
(3) Special compensation shall be for services rendered during
normal working hours and, when reported to the board, the employer
shall identify the pay period in which the special compensation was
earned.
(4) Special compensation may include the monetary value of normal
contributions paid to the board by the employer, on behalf of the
member and pursuant to Section 20691, provided that the employer's
labor policy or agreement specifically provides for the inclusion of
the normal contribution payment in compensation earnable.
(5) The monetary value of any service or noncash advantage
furnished by the employer to the member, except as expressly and
specifically provided in this part, shall not be special compensation
unless regulations promulgated by the board specifically determine
that value to be "special compensation."
(6) The board shall promulgate regulations that delineate more
specifically and exclusively what constitutes "special compensation"
as used in this section. A uniform allowance, the monetary value of
employer-provided uniforms, holiday pay, and premium pay for hours
worked within the normally scheduled or regular working hours that
are in excess of the statutory maximum workweek or work period
applicable to the employee under Section 201 et seq. of Title 29 of
the United States Code shall be included as special compensation and
appropriately defined in those regulations.
(7) Special compensation does not include any of the following:
(A) Final settlement pay.
(B) Payments made for additional services rendered outside of
normal working hours, whether paid in lump sum or otherwise.
(C) Any other payments the board has not
affirmatively determined to be special compensation.
(d) Notwithstanding any other provision of law, payrate and
special compensation schedules, ordinances, or similar documents
shall be public records available for public scrutiny.
(e) As used in this part, "group or class of employment" means a
number of employees considered together because they share job
similarities, work location, collective bargaining unit, or other
logical work related grouping. Under no circumstances shall one
employee be considered a group or class. Increases in compensation
earnable granted to any employee who is not in a group or class shall
be limited during the final compensation period applicable to the
employees, as well as the two years immediately preceding the final
compensation period, to the average increase in compensation earnable
during the same period reported by the employer for all employees
who are in the same membership classification, except as may
otherwise be determined pursuant to regulations adopted by the board
that establish reasonable standards for granting exceptions.
(f) As used in this part, "final settlement pay" means any pay or
cash conversions of employee benefits that are in excess of
compensation earnable, that are granted or awarded to a member in
connection with or in anticipation of a separation from employment.
The board shall promulgate regulations that delineate more
specifically what constitutes final settlement pay.
(g) (1) Notwithstanding subdivision (a), "compensation earnable"
for state members means the average monthly compensation, as
determined by the board, upon the basis of the average time put in by
members in the same group or class of employment and at the same
rate of pay, and is composed of the payrate and special compensation
of the member. The computation for any absence of a member shall be
based on the compensation earnable by him or her at the beginning of
the absence and that for time prior to entering state service shall
be based on the compensation earnable by him or her in the position
first held by him or her in that state service.
(2) Notwithstanding subdivision (b), "payrate" for state members
means the average monthly remuneration paid in cash out of funds paid
by the employer to similarly situated members of the same group or
class of employment, in payment for the member's services or for time
during which the member is excused from work because of holidays,
sick leave, vacation, compensating time off, or leave of absence.
"Payrate" for state members shall include:
(A) Any amount deducted from a member's salary for any of the
following:
(i) Participation in a deferred compensation plan established
pursuant to Chapter 4 (commencing with Section 19993) of Part 2.6.
(ii) Payment for participation in a retirement plan that meets the
requirements of Section 401(k) of Title 26 of the United States
Code.
(iii) Payment into a money purchase pension plan and trust that
meets the requirements of Section 401(a) of Title 26 of the United
States Code.
(iv) Participation in a flexible benefits program.
(B) Any payment in cash by the member's employer to one other than
an employee for the purpose of purchasing an annuity contract for a
member under an annuity plan that meets the requirements of Section
403(b) of Title 26 of the United States Code.
(C) Employer "pick up" of member contributions that meets the
requirements of Section 414(h)(2) of Title 26 of the United States
Code.
(D) Any disability or workers' compensation payments to safety
members in accordance with Section 4800 of the Labor Code.
(E) Temporary industrial disability payments pursuant to Article 4
(commencing with Section 19869) of Chapter 2.5 of Part 2.6.
(F) Any other payments the board may determine to be within
"payrate."
(3) Notwithstanding subdivision (c), "special compensation" for
state members shall mean all of the following:
(A) The monetary value, as determined by the board, of living
quarters, board, lodging, fuel, laundry, and other advantages of any
nature furnished a member by his or her employer in payment for the
member's services.
(B) Any compensation for performing normally required duties, such
as holiday pay, bonuses (for duties performed on regular work
shift), educational incentive pay, maintenance and noncash payments,
out-of-class pay, marksmanship pay, hazard pay, motorcycle pay,
paramedic pay, emergency medical technician pay, POST certificate
pay, and split shift differential.
(C) Compensation for uniforms, except as provided in Section
20632.
(D) Any other payments the board may determine to be within
"special compensation."
(4) Neither "payrate" nor "special compensation" for state members
shall include any of the following:
(A) The provision by the state employer of any medical or hospital
service or care plan or insurance plan for its employees (other than
the purchase of annuity contracts as described below in this
subdivision), any contribution by the employer to meet the premium or
charge for such a plan, or any payment into a private fund to
provide health and welfare benefits for employees.
(B) Any payment by the state employer of the employee portion of
taxes imposed by the Federal Insurance Contribution Act.
(C) Amounts not available for payment of salaries and that are
applied by the employer for the purchase of annuity contracts
including those that meet the requirements of Section 403(b) of Title
26 of the United States Code.
(D) Any benefits paid pursuant to Article 5 (commencing with
Section 19878) of Chapter 2.5 of Part 2.6.
(E) Employer payments that are to be credited as employee
contributions for benefits provided by this system, or employer
payments that are to be credited to employee accounts in deferred
compensation plans; provided, that the amounts deducted from a
member's wages for participation in a deferred compensation plan
shall not be considered to be "employer payments."
(F) Payments for unused vacation, sick leave, or compensating time
off, whether paid in lump sum or otherwise.
(G) Final settlement pay.
(H) Payments for overtime, including pay in lieu of vacation or
holiday.
(I) Compensation for additional services outside regular duties,
such as standby pay, callback pay, court duty, allowance for
automobiles, and bonuses for duties performed after the member's
regular work shift.
(J) Amounts not available for payment of salaries and which are
applied by the employer for any of the following:
(i) The purchase of a retirement plan which meets the requirements
of Section 401(k) of Title 26 of the United States Code.
(ii) Payment into a money purchase pension plan and trust which
meets the requirements of Section 401(a) of Title 26 of the United
States Code.
(K) Payments made by the employer to or on behalf of its employees
who have elected to be covered by a flexible benefits program, where
those payments reflect amounts that exceed the employee's salary.
(L) Any other payments the board may determine are not "payrate"
or "special compensation."
(5) If this subdivision, including the board's determinations
pursuant to subparagraph (F) of paragraph (2) and subparagraph (D) of
paragraph (3), are in conflict with the provisions of a memorandum
of understanding reached pursuant to Section 3517.5 or 3560, the
memorandum of understanding shall be controlling without further
legislative action, except that if the provisions of a memorandum of
understanding require the expenditure of funds, those provisions
shall not become effective unless approved by the Legislature in the
annual Budget Act. No memorandum of understanding reached pursuant
to Section 3517.5 or 3560 may exclude from the definition of either
"payrate" or "special compensation" a member's base salary payments
or payments for time during which the member is excused from work
because of holidays, sick leave, vacation, compensating time off, or
leave of absence. If any items of compensation earnable are included
by memorandum of understanding as "payrate" or "special compensation"
for retirement purposes for represented and higher education
employees pursuant to this paragraph, the Department of Personnel
Administration or the Trustees of the California State University
shall obtain approval from the board for that inclusion.
(6) (A) Subparagraph (B) of paragraph (3) of this subdivision
prescribes that compensation earnable includes any compensation for
performing normally required duties, such as holiday pay, bonuses
(for duties performed on regular work shift), educational incentive
pay, maintenance and noncash payments, out-of-class pay, marksmanship
pay, hazard pay, motorcycle pay, paramedic pay, emergency medical
technician pay, POST certificate pay, and split shift differential;
and includes compensation for uniforms, except as provided in Section
20632; and subparagraph (I) of paragraph (4) excludes from
compensation earnable compensation for additional services outside
regular duties, such as standby pay, callback pay, court duty,
allowance for automobile, and bonuses for duties performed after
regular work shift.
(B) Notwithstanding subparagraph (A) of this paragraph, the
Department of Personnel Administration shall determine which payments
and allowances that are paid by the state employer shall be
considered compensation for retirement purposes for any employee who
either is excluded from the definition of state employee in
subdivision (c) of Section 3513, or is a nonelected officer or
employee of the executive branch of government who is not a member of
the civil service.
(C) Notwithstanding subparagraph (A) of this paragraph, the
Trustees of the California State University shall determine which
payments and allowances that are paid by the trustees shall be
considered compensation for retirement purposes for any managerial
employee, as defined in subdivision (l) of Section 3562, or
supervisory employee as defined in Section 3580.3.
20637. "Compensation earnable," with respect to a state member
receiving supplemental payments pursuant to Section 21160 at the time
of retirement or death, means the highest average monthly
compensation paid to the employee in the classification in which the
member was employed at time of becoming eligible for benefits
pursuant to Section 21160, or the average compensation earnable by
the member at time of retirement or death, whichever is higher.
20638. The average monthly salary during any period of service as
a member of a county retirement system established under the County
Employees Retirement Law of 1937 shall be considered compensation
earnable by a member of this system for purposes of computing final
compensation for the member provided:
(a) (1) Entry into employment in which he or she became a member
in one system occurred on or after October 1, 1957, and within 90
days of discontinuance of employment as a member of the other system.
(2) This subdivision shall not deny the benefit of this section to
any person retiring after October 1, 1963, who entered membership
prior to October 1, 1957, if he or she entered the employment in
which he or she became a member within 90 days of termination of
employment in which he or she was a member of the other system, and
he or she became a member within seven months of entry into
employment, or, if an employee of a district as defined in Section
31468, became a member at the time the district was included in a
county retirement system established under the County Employees
Retirement Law of 1937.
(b) He or she retires concurrently under both systems and is
credited with the period of service under the county system at the
time of retirement.
20639. The compensation earnable during any period of service as
a member of the Judges' Retirement System, the Legislators'
Retirement System, or the State Teachers' Retirement System shall be
considered compensation earnable as a member of this system for
purposes of computing final compensation for the member, if he or she
retires concurrently under both systems.
A member shall be deemed to have retired concurrently under this
system and under the State Teachers' Retirement System, if the member
is enrolled as a disabilitant under the State Teachers' Retirement
System and for retirement under this system on the same effective
date.
CHAPTER 8. MEMBER CONTRIBUTIONS
Article 1. Normal Contributions
20670. The normal rate of contribution for a member who on the
date upon which this section becomes operative is in state service or
on leave of absence from an employment in which he or she was in
state service shall be the rate applicable to him or her in the rate
schedule established by the board in accordance with this chapter as
it read on November 30, 1968, and in effect on that date.
20671. Notwithstanding any other provision of this part, separate
rates of contributions for male and female members shall not be
established or maintained, nor shall different benefit factors be
established for male and female members in the same category.
However, this section shall not apply to the computation of the
actuarial equivalents required under this part for the determination
of optional payments.
20672. For purposes of this chapter, the age of entry into this
system as a member in any membership category for a person who enters
on or after October 1, 1957, and within 90 days after last rendering
service as a member of a county retirement system established under
the County Employees Retirement Law of 1937 and who retains his or
her membership in that system shall be his or her age at entry into
the county retirement system.
20673. The normal rate of contribution for a local safety member
subject to Section 21368 who after December 1, 1968, enters that
membership or enters employment more than one year following
termination of previous employment in which he or she was a local
safety member shall be the rate specified for his or her age, at his
or her birthday nearest to the date of that entry, in the rate
schedule for the benefit formula applicable to that membership as
established by the board in accordance with this chapter as it read
on November 30, 1968, and in effect on that date, except that on and
after January 1, 1977, female rates shall be adjusted to conform with
male rates.
20674. The normal rate of contribution for any member whose
retirement allowance is determined under Section 21366, and who after
December 1, 1968, enters that membership or enters employment more
than one year after termination of employment in which he or she was
subject to Section 21366, shall be the rate, specified in the
schedule established by the board in accordance with this chapter as
it read on November 30, 1968, and in effect on that date for that
formula and benefit percentage, for the age at his or her birthday
nearest to the date of his or her earliest service subject to any of
those sections, whether or not contributions for that service were
withdrawn or redeposited, increased by the number of completed years
of his or her absence from any employment subject to any of such
sections, except that on and after January 1, 1977, female rates
shall be adjusted to conform with male rates.
20675. Whenever a person becomes a state safety member as a
result of an amendment to this part defining state safety member, the
rate of contributions provided for state safety members shall apply
only to compensation paid that person for service on and after the
effective date of the amendment.
20676. Whenever a person becomes a state peace
officer/firefighter member as a result of an amendment to this part
defining state peace officer/firefighter member, the rate of
contribution provided for state peace officer/firefighter shall apply
only to compensation paid the person for service on and after the
effective date of the amendment.
20677. (a) (1) The normal rate of contribution for a state
miscellaneous member whose service is not included in the federal
system shall be 6 percent of the compensation in excess of three
hundred seventeen dollars ($317) per month paid that member for
service rendered on and after July 1, 1976. The normal rate of
contribution for a school member, or a local miscellaneous member
shall be 7 percent of the compensation paid that member for service
rendered on and after June 21, 1971.
(2) The normal rate of contribution as established under this
subdivision for a member whose service is included in the federal
system, and whose service retirement allowance is reduced under
Section 21353 or Section 21354 because of that inclusion, shall be
reduced by one-third as applied to compensation not exceeding four
hundred dollars ($400) per month for service after the date of
execution of the agreement including service in the federal system
and prior to termination of the agreement with respect to the
coverage group to which he or she belongs.
(b) The normal rate of contribution for a state miscellaneous
member whose service has been included in the federal system shall be
5 percent of compensation in excess of five hundred thirteen dollars
($513) per month paid that member for service rendered on and after
July 1, 1976.
(c) The normal rate of contribution for a state miscellaneous
member who elects to become subject to Section 21076 or Section 21077
shall be 0 percent, unless the member subsequently elects to become
subject to Section 21353, as authorized by subdivision (c) of Section
21070. A member who elects to become subject to Section 21353 shall
contribute at the rate specified in subdivision (a) or (b) of this
section, as determined by the member's status with the federal
system, and the rate shall be applied from the first of the month
following the date of the election. A member who makes the election
shall also contribute for service prior to the date the contribution
rate was applied, in the manner specified in Section 21073. A member
who elected to become subject to Section 21353 solely for service
rendered on or after the effective date of the election, as
authorized by subdivision (c) of Section 21070 during the period
between November 1, 1988, and October 31, 1989, is not required to
make the contributions specified in Section 21073.
(d) Notwithstanding any other provision of this part, state member
contributions on premium compensation for planned overtime paid at
the "half-time" rate as part of the regular shift under Section 201
et seq. of Title 29 of the United States Code or the Memorandum of
Understanding of State Bargaining Units 7 and 8 are waived for the
period April 15, 1985, through June 30, 1988.
This subdivision applies to State Bargaining Units 7 and 8 and
becomes effective only if the board approves a waiver of employer
contributions on the same premium compensation for the same period of
time. If this subdivision is approved by the board, benefits shall
be calculated to include overtime paid at the one-half time rate.
20678. For each patrol member and for each local safety member
subject to Section 21362, effective in the case of patrol members on
December 1, 1968, and in the case of local safety members on the date
the member becomes subject to Section 21362 by reason of the
amendment of his or her employer's contract, or on the later date of
entrance into this system, the normal rate of contribution shall be 9
percent. The Legislature reserves the right to increase the rate of
contribution of patrol members as it may find appropriate from time
to time. No adjustment shall be included in rates adopted under this
section as the result of amendments hereto, changing the time at
which members may retire or the benefits members will receive,
because of time during which members have contributed at different
rates prior to the adoption.
20679. Notwithstanding Section 20678, the normal rate of
contribution for patrol members for service rendered on and after
July 1, 1976, shall be 8 percent of the compensation in excess of two
hundred thirty-eight dollars ($238) per month paid those members.
The Legislature reserves the right to increase the rate of
contribution of patrol members as it may find appropriate from time
to time.
20680. Contracting agencies which are auxiliary organizations as
defined in Section 89901 of the Education Code may by contract or by
contract amendment provide the same rates of normal contributions for
their employees who are local miscellaneous members as are
applicable to state miscellaneous members pursuant to Section 20677
on the effective date of the contract or contract amendment.
20681. (a) Notwithstanding Section 20678, for service rendered on
or after January 1, 1984, the normal rate of contribution for patrol
members shall be 8 percent of the compensation in excess of eight
hundred sixty-three dollars ($863) per month paid those members. The
Legislature reserves the right to increase the rate of contribution
of patrol members as it may find appropriate from time to time.
(b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
(c) The provisions of a memorandum of understanding pertaining to
subdivision (a) may be applied to patrol members who either are
excluded from the definition of state employees in subdivision (c) of
Section 3513, or are nonelected officers or employees of the
executive branch of government and are not members of the civil
service, provided the Department of Personnel Administration has
approved this inclusion and has notified the board.
20682. The normal rate of contribution of a state safety member
who is not subject to Section 21369 is the rate of contribution under
this part as it read and applied to him or her as a forestry,
warden, or law enforcement member on the day preceding the operative
date of this section. The normal rate shall be reduced by 1 percent
of compensation for service rendered on and after July 1, 1974, and
shall be made only on the compensation in excess of three hundred
seventeen dollars ($317) per month for time on or after July 1, 1976.
20683. For each state member subject to Section 21369, effective
on July 1, 1971, or the later date of entrance into this system as
such a member, the normal rate of contribution shall be 6 percent of
compensation paid on and after July 1, 1971.
The contribution on and after July 1, 1976, shall be made only on
the compensation in excess of three hundred seventeen dollars ($317)
per month paid to a member whose service is not included in the
federal system or in excess of
five hundred thirteen dollars ($513) for one whose service is
included in the federal system.
For each local safety member subject to Section 21369 effective on
July 1, 1971, or later date of entrance into this system as such a
member, the normal rate of contribution shall be 7 percent of
compensation.
The normal rate of contribution as established under this section
for a local member whose service is included in the federal system
and whose retirement allowance is reduced because of such inclusion
shall be reduced by one-third as applied to compensation not
exceeding four hundred dollars ($400) per month for service rendered
after the date of execution of the modification of the federal-state
agreement including such services in the federal system and prior to
termination of his coverage under the federal system.
The operative date of this section with respect to a local safety
member shall be the date upon which he becomes subject to Section
21369.
20684. For each local safety member subject to Section 21370,
effective on January 1, 1985, or later date of entrance into this
system as such a member, the normal rate of contribution shall be 7
percent of compensation.
The normal rate of contribution as established under this section
for a local safety member whose service is included in the federal
system and whose retirement allowance is reduced pursuant to Section
21370 because of that inclusion shall be reduced by one-third as
applied to compensation not exceeding four hundred dollars ($400) per
month for service rendered after the date of execution of the
modification of the federal-state agreement including services in the
federal system and prior to termination of his or her coverage under
the federal system.
The operative date of this section with respect to a local safety
member shall be the date upon which the local safety member becomes
subject to Section 21370.
20685. The normal rate of contribution for a local member who was
a member of a local system at the time it was discontinued by
inclusion of members of the local system in this system shall, if the
contract so provides, be based on age at entry of the member into
the local system.
20686. For each state safety member defined in subdivision (b) of
Section 20401 and whose current and prior service pensions will be
computed pursuant to Section 21373, the normal rate of contribution
shall be 8 percent and shall be made only on the compensation in
excess of two hundred thirty-eight dollars ($238) per month. The
Legislature reserves the right to increase the rate of contribution
as it may find appropriate from time to time. No adjustment shall be
included in rates adopted under this section as the result of
amendments hereto, changing the time at which members may retire or
the benefits members will receive, because of time during which
members have contributed at different rates prior to such adoption.
20687. (a) The normal rate of contribution for state peace
officer/firefighter members and for local safety members subject to
Section 21363 shall be 8 percent of the compensation in excess of two
hundred thirty-eight dollars ($238) per month paid those members.
(b) This subdivision shall apply only to a city with a population
in excess of 300,000 in a county of the eighth class, as defined by
Sections 28020 and 28029, as amended by Chapter 1204 of the Statutes
of 1971, which, prior to June 30, 1991, amends its contract to
provide for the transfer of all or part of the safety members of an
existing local retirement system to this system. Subdivision (a)
shall not apply to a contracting agency which elects by amendment to
its contract made in the manner prescribed for approval of contracts
by express provision in the contract. If the election is made, the
normal rate of contribution for local safety members of that
contracting agency subject to Section 21363 shall be 9 percent of
compensation paid those members.
(c) Notwithstanding any other provision of this part, state member
contributions on premium compensation for planned overtime paid at
the "half-time" rate as part of the regular shift under Section 201
et seq. of Title 29 of the United States Code or the Memorandum of
Understanding of State Bargaining Units 7 and 8 are waived for the
period April 15, 1985, through June 30, 1988.
This subdivision applies to State Bargaining Units 7 and 8 and
becomes effective only if the board approves a waiver of employer
contributions on the same premium compensation for the same period of
time. If this subdivision is approved by the board, benefits shall
be calculated to include overtime paid at the one-half time rate.
(d) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if those provisions
of a memorandum of understanding require the expenditure of funds,
those provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
20688. The normal rate of contribution otherwise established
under this article for a member whose retirement allowance is
determined under Section 21362 or 21366, and reduced under Section
21367 because his or her service is included in the federal system,
shall be reduced by one-third as applied to compensation not
exceeding four hundred dollars ($400) for services rendered in any
month after the date of execution of the modification of the
federal-state agreement, including services in the federal system, or
the effective date of the contract or contract amendment pursuant to
which a contracting agency and its employees become subject to this
section, whichever is later, and prior to the date upon which
services of persons in his or her employment cease to be covered
under the federal system.
20689. The Legislature reserves the right to increase or
otherwise adjust the rates of contribution prescribed in this article
in amounts and in a manner it may from time to time find
appropriate.
20690. Contract amendments, and that portion of a contract which
subjected an employer to former Section 20614, as it read prior to
its repeal by Chapter 1168 of the Statutes of 1980, may be revoked
prospectively in the manner provided for the approval of contracts,
including an election among employees affected.
20691. Notwithstanding any other provision of law, a contracting
agency or school employer may pay all or a portion of the normal
contributions required to be paid by a member. Where the member is
included in a group or class of employment, the payment shall be for
all members in the group or class of employment. The payments shall
be reported simply as normal contributions and shall be credited to
member accounts.
Nothing in this section shall be construed to limit the authority
of a contracting agency or school employer to periodically increase,
reduce, or eliminate the payment by the contracting agency or school
employer of all or a portion of the normal contributions required to
be paid by members, as authorized by this section.
20692. (a) Where a contracting agency employer or a school
employer has elected to pay all or a portion of the normal
contributions of members of a group or class of employment pursuant
to Section 20691, the employer may, pursuant to a labor policy or
agreement, stop paying those contributions during the final
compensation period applicable to the members and, instead, increase
the payrate of the members by an amount equal to the normal
contributions paid by the employer on behalf of the employees or
increase the payrate of the members by an amount established by a
labor policy or agreement in existence and in effect on June 30,
1993. That amount shall not exceed the amount of the normal member
contributions that are required to be paid by the members.
(b) This section shall not apply to any contracting agency or to
any school employer until the contracting agency or the school
employer elects to be subject to this section by amendment to its
contract made in the manner prescribed for approval of contracts,
except an election among the employees is not required. In the case
of contracts made after July 1, 1994, the section shall not apply
unless incorporated by express provision in the contract. However,
no school employer may act pursuant to this section until the board
approves a request for the amendment of the contract of a school
employer to authorize termination of the payment. A school employer
shall not submit a request for a contract amendment unless there is
on file a request to terminate that payment from the county
superintendent of schools office and each school district, community
college district, and other school entity within the jurisdiction of
that school employer.
(c) Before adopting this provision, the governing body of a
contracting agency or school employer shall, with timely public
notice, place the consideration of this section on the agendas of two
consecutive public meetings of the governing body, at which time,
full disclosure shall be made of the nature of the benefit, the
additional employer contributions, and the funding therefor. Only
after the second of these public meetings may the governing body
adopt this section. The employer shall notify the board of the
employer's compliance with this subdivision at the time of the
governing body's application to adopt this section.
(d) Persons hired after the effective date of an employer's
contract amendment to include this section shall be informed by the
employer of how this benefit relates to their total compensation and
benefit package.
(e) The additional employer contributions required under this
section shall be computed as a level percentage of member
compensation. The additional contribution rate required at the time
this section is added to a contract shall not be less than the sum of
(1) the actuarial normal cost, plus (2) in the case of a contract
amendment, the additional contribution required to amortize the
increase in accrued liability attributable to the benefit elected
under this section over the unfunded actuarial liability period
currently in the agency's contract, commencing from the date this
section becomes effective in the agency's contract.
(f) For the purposes of this section, all contributions,
liabilities, actuarial interest rates, and other valuation factors
necessary to calculate the employer's contribution shall be
determined on the basis of actuarial assumptions and methods which,
in combination, provide the board's best estimate of anticipated
experience under this system. The board has the exclusive power and
duty to make these determinations.
(g) Within 30 days of notification from the board to the
contracting agency or school employer of the additional employer
contributions required pursuant to this section, the contracting
agency or school employer, or a recognized employee organization, or
both, may file with the board a request for a review of the
determination of the calculation of the additional employer
contributions. The board shall promulgate regulations governing the
conduct of the review, that shall include the means by which an
employer or recognized employee organization may submit independent
actuarial evidence regarding the additional contribution required by
this section. The board shall make the final determination on the
additional employer contributions needed to fund this contract
amendment.
20693. Notwithstanding any other provision of law, the state or
the Regents of the University of California may pay all or a portion
of the normal contributions required to be paid by a state member.
The payments shall be reported as employer-paid normal contributions
and shall be credited to member accounts. Nothing in this section
shall be construed to limit the authority of the state to
periodically increase, reduce, or eliminate the payment by the state
of all or a portion of the normal contributions required to be paid
by a state member, as authorized by this section.
This section shall be subject to any applicable
collective-bargaining laws.
Article 2. Additional Contributions
20710. Subject to rules prescribed by the board, any member or
any employer, other than the state, on behalf of any group of
miscellaneous members, any group of members designated by the
employer as management employees, or any members, may elect to make
contributions in excess of the member's normal contributions, for the
purpose of providing additional benefits. The exercise of this
privilege by a member does not require his or her employer to make
any additional contributions. An election by an employer to make the
additional contributions does not require any member to make
additional contributions and the additional contributions shall
continue in effect for the period as shall be specified in the
election filed with the board and a member shall acquire no right by
reason of his or her employment while the election is in effect to a
continuation of those contributions beyond the period specified in
the election. Upon application, the board shall furnish information
concerning the nature and amount of additional benefits to be
obtained from additional contributions. The board may by rule
provide for refund of accumulated additional contributions to a
member. However, a refund of additional contributions may be made to
a member if an employer had made additional contributions on his or
her behalf only as a part of a refund of accumulated contributions in
accordance with this part.
Wherever in this part provision is made with respect to additional
or accumulated additional contributions of a member the term shall
include contributions made by an employer pursuant to this article.
The board shall provide for additional employer contributions to
be credited at least monthly to the individual account of the member
on behalf of whom the contribution is made.
20711. Notwithstanding any other provision of this part, a member
may at any time, in writing, authorize the board to apply any
additional contributions standing to the member's credit as payment
of any contributions required of the member or payable at the member'
s option pursuant to any provision of this part, except the normal
monthly contributions required in Article 1 (commencing with Section
20670).
20712. An election by any member or any employer to make
additional contributions in accordance with Section 20710 shall be
effective only if it was filed with the board on or before June 30,
1983. Additional contributions may be made on and after July 1,
1983, in accordance with the terms of an election filed on or before
June 30, 1983. A refund of accumulated additional contributions or
an application of accumulated additional contributions as payment of
any required contribution under Section 20711 shall terminate the
privilege of making additional contributions if the refund or
application occurs on or after July 1, 1983.
Article 3. Supplemental Contributions Program
20720. (a) The member supplemental contributions program
established by this article is intended to be a defined contribution
plan within the meaning of Section 414(i) of Title 26 of the United
States Code. The program shall operate solely at the option and
expense of the members who elect to participate and shall in no way
obligate employers for lifetime annuity payments to participating
employees or their beneficiaries. Any distribution arising from
participation in this program shall be funded only by accumulated
supplemental contributions.
(b) This article does not establish a new program, but rather
recodifies, further defines and retitles the additional contributions
program established by Chapter 1321 of the Statutes of 1992 and
Chapter 174 of the Statutes of 1993, to ensure full compliance with
applicable Internal Revenue Service rules and regulations.
20721. (a) Any member in the employ of the state, the university,
a school employer, or a contracting agency may elect, in a manner
prescribed by the board, to participate in the program. A
participating member may make supplemental contributions to the
program, in excess of normal contributions, for the purpose of
supplementing retirement benefits under this system. The
supplemental contributions shall be made solely at the option and
expense of the member and shall be attributable only to a defined
contribution plan and not a defined benefit plan. The maximum amount
of a member's supplemental contributions shall be based on the
member's annual compensation, as defined in Section 414(s) of Title
26 of the United States Code, and shall be subject to the limitations
imposed by Sections 401(a)(17), 401(m), and 415 of Title 26 of the
United States Code and any other applicable federal tax code
requirements for maintaining the qualified plan status of this
system. The cost of administering this article shall be paid solely
by member accumulated supplemental contributions. The employer shall
not make any employer contributions or member supplemental
contributions on behalf of a participating member.
(b) For purposes of this article, "supplemental contributions"
shall mean contributions made by members in addition to their normal
contributions and "accumulated supplemental contributions" shall mean
the sum of all supplemental contributions standing to the credit of
a member's individual account and any earnings thereon, less
administrative costs.
(c) The board shall determine when this article shall be
applicable to school members and local members.
20722. Accumulated supplemental contributions shall not be
distributed to a participating member or his or her beneficiary,
either by lump-sum or periodic payment, until the member has
separated from membership in this system or has retired.
20723. Notwithstanding any other provision of this part, a member
may at any time, in writing, authorize the board to apply any or all
accumulated supplemental contributions as payment of any
contributions required of the member or payable at the member's
option pursuant to any provision of this part, except the normal
monthly contributions required in Article 1 (commencing with Section
20670). Any distribution made pursuant to this section shall comply
with applicable Internal Revenue Service rules and regulations.
20724. Notwithstanding the rate of interest payable on member
contributions pursuant to any other provision of this part, the
board, after deducting the costs of administering this article, shall
credit the accumulated supplemental contributions of a member with
interest at the net earnings rate compounded at each June 30.
20725. (a) Upon application for retirement, a member who makes
supplemental contributions pursuant to this article may elect the
distribution of his or her accumulated supplemental contributions in
a lump sum, or in a periodic manner approved by the board. Any
distribution made shall be in compliance with minimum distribution
rules under Section 401(a)(9) of Title 26 of the United States Code.
The board shall furnish information concerning its approved manner
of distribution.
(b) The distribution of accumulated supplemental contributions to
a participating member, or his or her beneficiary, shall be in a
manner approved by the board and subject to the limitations imposed
by Sections 401(a)(9) and 401(a)(31) of Title 26 of the United States
Code and any other applicable federal tax code requirements for
maintaining the qualified plan status of this system.
Article 4. Return of Contributions
20730. At any time prior to the payment of his or her first
retirement allowance, a person whose retirement was compulsory under
this article may file with the board a request for refund of his or
her accumulated contributions as of the effective date of the
retirement, in lieu of any other benefit payable under this part.
Upon receipt of the request so filed, the contributions shall be paid
to that person immediately and that person shall not be entitled to
any other benefit payable under this part.
20731. Notwithstanding any other provision of this part, a member
who is credited with less than the years of service specified in
Article 1 (commencing with Section 21060) of Chapter 12 who enters
employment as a member of a public retirement system supported, in
whole or in part, by state funds, including the University of
California Retirement System, or as a member of a retirement system
established under the County Employees Retirement Law of 1937, within
six months of leaving state service, shall have the right to elect
to leave accumulated contributions on deposit in the retirement fund.
Failure to make an election to withdraw accumulated contributions
shall be deemed an election to leave accumulated contributions on
deposit in the retirement fund. This section shall also apply to a
member who is subject to Section 21076, except that no election to
leave contributions on deposit is required for service that is
subject to Section 21076.
An election to allow accumulated contributions to remain in the
retirement fund may be revoked by the member at any time, except:
(1) while the member is employed in state service in a position in
which the member is not excluded from membership with respect to that
service; or (2) while the member is in service as a member of a
public retirement system supported, in whole or in part, by state
funds, including the University of California Retirement System; or
(3) while the member is in service, entered within six months after
discontinuing state service, as a member of a retirement system
established under the County Employees Retirement Law of 1937. All
contributions accumulated up to the time of revocation may then be
withdrawn. A member whose membership continues under this section is
subject to the same age and disability requirements as apply to other
members for service or for disability retirement. After the
qualification of the member for retirement by reason of age, which
shall be the lowest age applicable to any membership category in
which the member has credited service, or disability, the member
shall be entitled to receive a retirement allowance based upon the
amount of the member's accumulated contributions and service standing
to the member's credit at the time of retirement and on the employer
contributions held for the member and calculated in the same manner
as for other members, except that the provisions in this part for
minimum service and disability retirement allowances shall not apply
to the member, unless the member meets the minimum service
requirements. If a basic death benefit becomes payable under Article
1 (commencing with Section 21490), Article 2 (commencing with
Section 21530), and Article 5 (commencing with Section 21620) of
Chapter 14 because of death before retirement of a member, the
average annual
compensation earnable in the year preceding the date of termination
of that service, rather than in the year preceding death, shall be
used in computing the benefit under Articles 1, 2, and 5 of Chapter
14.
The provisions of this section, as it read prior to June 21, 1971,
shall continue with respect to a member whose membership continued
under this section on that date.
20732. A member who, because of his or her employment by the
state, is required to become a member of any other retirement system
supported in whole or in part by public funds, shall, with respect to
his or her right to withdraw his or her accumulated contributions,
be considered as permanently separated from state service.
20733. A member who ceases to be entitled to credit in this
system for future service because of Section 20300 shall be
considered permanently separated from state service with respect to
his or her right to withdraw contributions.
20734. The payment, on or after January 1, 1986, of accumulated
contributions to a former member shall include current year interest
through the date in which the claim is filed with the office of the
Controller.
20735. If the state service or membership of a member is
discontinued, he or she shall, upon his or her request, be paid his
or her accumulated contributions, if, in the opinion of the board, he
or she is permanently separated from state service or membership by
reason of the discontinuance.
This section shall not apply to discontinuance of state service or
membership as a result of retirement or death on account of which a
basic, a limited, or a special death benefit is payable.
20736. For purposes of this article, a member who has been on an
unpaid leave of absence or separated from state service for a period
of not less than six months shall be considered permanently separated
from state service, and the member shall, upon his or her request,
be paid his or her accumulated contributions if he or she continues
to be in an unpaid leave status through the date the refund is paid.
In the case where a member has been separated from state service
for six or more months and has requested a refund of his or her
accumulated contributions, but reenters employment covered by this
system prior to receipt of the refund of his or her accumulated
contributions, he or she shall nevertheless be paid his or her
accumulated contributions.
20737. A member who elects to be subject to Section 21076 shall
be paid his or her accumulated contributions plus current year
interest through the date on which the claim is filed with the office
of the Controller for service rendered as a state miscellaneous or
state industrial member. This section does not apply to a member who
elects to be subject to Section 21077.
Article 5. Redeposit of Contributions
20750. Subject to regulations adopted by the board, a member may
file an election with the board to redeposit in the retirement fund,
in a lump sum or by installment payments, (1) an amount equal to the
accumulated contributions that he or she has withdrawn at one or more
terminations of service, or for one withdrawal at a time, but in
reverse chronological order in which they occurred, and (2) an amount
equal to the interest that would have been credited to his or her
account to the date of completion of payments had the contributions
not been withdrawn, and (3) if he or she elects to redeposit in other
than one sum, interest on the unpaid balance of the amount payable
to the retirement fund, beginning on the date of the election to
redeposit, as if the member interest crediting rate in effect on the
date of the election to redeposit had been and continued to be in
effect through the completion of the payments.
20751. If a nonmember, as defined in Section 21291, withdraws
accumulated contributions in accordance with Section 21290, the
member may redeposit those contributions pursuant to this article.
20752. A member of the Judges' Retirement System, the Legislators'
Retirement System, the State Teachers' Retirement System, the
University of California Retirement System, or a retirement system
established under the County Employees Retirement Law of 1937, who
has withdrawn accumulated contributions from this system shall have
the right to redeposit those contributions, subject to the same
conditions as imposed for redeposits of accumulated contributions by
Section 20750, including the right as he or she would have had under
Section 20638 had he or she not withdrawn his or her contributions.
Provisions of this section extending a right to redeposit
accumulated contributions withdrawn from this system shall also apply
to members of any retirement system established under Chapter 2
(commencing with Section 45300) of Division 5 of Title 4 with respect
to which an ordinance complying with Section 45310.5 has been filed
with and accepted by the board or any retirement system established
by or pursuant to the charter of a city or city and county or by any
other public agency of this state which system, in the opinion of the
board, provides a similar modification of rights and benefits
because of membership in this system and with respect to which the
governing body of the city, city and county or public agency and the
board have entered into agreement pursuant to Section 20351.
A member who elects to redeposit under this section shall have the
same rights with respect thereto as a member who has elected
pursuant to Section 20731 to leave his or her accumulated
contributions on deposit in the fund.
Notwithstanding any other provision of this section, redeposit may
be made within 90 days after January 1, 1975, by any person who
retired under the retirement system of the University of California
after January 1, 1972, and prior to January 1, 1975. Final
compensation for those persons shall be computed as though retirement
under this system and the university system had been concurrent.
20753. Contributions due to this system because of salary earned
after reentry into state service following withdrawal and prior to
redeposit of accumulated contributions, but not paid to this system
because of termination of state service before completion of the
necessary administrative procedures, shall be administered upon
subsequent reentry into this system, as if the member had withdrawn
the contributions, and the termination of state service shall be
considered as a termination of membership.
20754. Any amount that a member elected to pay under any election
with respect to normal contributions permitted under this part prior
to withdrawal of accumulated contributions, including amounts unpaid
at the time of the withdrawal, and any amount of arrears
contributions then unpaid shall be included, upon subsequent reentry
into this system, in the amount of withdrawn contributions for
purposes of redeposit under this article. Upon the redeposit of
withdrawn contributions, a member shall be entitled to all rights
accruing from that election with respect to normal contributions in
all respects as though payment had been completed at the time of the
withdrawal of accumulated contributions.
20755. Upon reentering this system after a termination of his or
her membership, if a member does not elect to redeposit withdrawn
contributions as provided in Section 20750 or, having so elected,
subsequently does not make the redeposit, he or she reenters as a new
member without credit for any service except the prior service
credited to him or her before termination and any service that is
credited prior to termination of membership pursuant to subdivision
(c) of Section 20340.
20756. Benefits based on service credited under this article and
Article 4 (commencing with Section 20730), where the service credit
is derived from a member's redeposit of contributions, shall be paid
from contributions of the employer or employers which is or are the
source of the contributions redeposited by the member. The employer
liability in this regard shall be limited only to its contributions
and no employer shall be liable for any portion of the member's own
contributions. All employer contributions, for purposes of this
article, shall be made by adjustment of the employer's rate of
contribution.
Article 6. Contribution Procedure
20770. The board shall furnish, in a manner determined by it, to
the head of each state agency and court and to the comptroller of the
university the normal rate of contribution for, and the amount of
any other contributions payable by, each member employed therein.
The state agency head, comptroller, or the Controller, as the case
may be, shall apply that rate of contribution to the compensation of
each member.
20771. Each head of a state agency for which the member's
compensation is paid directly by the Controller shall furnish to the
Controller the normal rate of contribution for, and the amount of any
other contributions payable by, each member employed therein. The
Controller shall deduct from the compensation of each member and
remit to the board the contributions so determined and the other
contributions payable, and furnish to the board a statement of
contributions deducted, with respect to each member, together with
other information the board may require.
Each head of a state agency that directly pays the member's
compensation shall deduct from the compensation of each member and
remit to the board the contributions so determined and the other
contributions payable, and furnish to the board a statement of
contributions so deducted, with respect to each member, together with
other information the board may require.
20772. When a member employed by the state is assigned to service
for which he or she is compensated from funds not directly
controlled by the state, he or she shall contribute to the retirement
fund at the rate certified by the board, applied to the compensation
earnable by him or her immediately preceding that assignment. The
head of each state agency in which a member assigned to that service
is employed shall notify the member of his or her individual rate of
contribution and the amount of the monthly contribution payable by
him or her to the retirement fund, and shall furnish monthly to the
board a list of the employees so assigned during the preceding month,
together with the rate of compensation earnable by each. Within 15
days of the receipt of compensation for that service in any month,
the member rendering that service shall transmit his or her
contribution in respect to that service to the office of this system
in Sacramento. Any contribution remaining unpaid for 30 days after
the completion of the assignment of the member and his or her return
to the state pay roll shall be deducted from his or her compensation
for the next succeeding month or months as the board may provide by
rule. Every member who has elected pursuant to Section 20284 to be
credited with service rendered prior to October 1, 1945, shall
contribute to the retirement fund, at times and in a manner fixed by
the board, amounts equal to the contributions which he or she would
have made to the fund during the time he or she was rendering so much
of that service as does not constitute prior service if he or she
had then been a member of this system, on the basis of his or her
compensation earnable at the time he or she was assigned to service
for which he or she was compensated from funds not directly
controlled by the state. Time during which a member serves under
assignment shall be considered for the purpose of qualification for
retirement and death benefits, but shall not be considered for
calculation of retirement benefits unless the member has contributed
as provided in this section. When contributions have been made, the
state shall thereupon contribute an amount equal to that which it
would have contributed under Chapter 9 (commencing with Section
20790) of this part if the contributions had been deducted from
compensation to the member from funds directly controlled by the
state, and for the purposes of Chapter 9 the compensation paid to the
member shall be deemed to have been paid from the support fund of
the state agency by which the member was employed during that
service.
20773. The comptroller of the university shall deduct from the
compensation of each university member and remit to the board the
contributions so determined and the other contributions payable, and
furnish to the board a statement of the contributions so deducted,
with respect to each member, together with any other information the
board may require.
20774. The board shall furnish, in a manner determined by it, to
the clerk or other officer designated by the governing body, of each
contracting agency the normal rate of contribution for, and the
amount of any other contributions payable by, each local member
employed therein. The officer shall apply the rate of contribution
to the compensation of each local member and deduct from that
compensation and remit to the board the contributions so determined
and the other contributions payable, and furnish to the board a
statement of the contributions so deducted, with respect to each
member, together with any other information the board may require.
20775. Each member's contribution deducted and remitted or
otherwise paid to the board shall be credited by the board, together
with regular interest, to an individual account of the member for
whom the contribution was made. Payment of salaries or wages less
such contribution is in full discharge of all claims and demands
whatsoever for the service rendered by the members during the period
covered by the payment, except the benefits afforded by this part.
20776. (a) If a basic death benefit becomes payable before the
payment of the total amount the member elected to pay under any
election with respect to normal contributions, arrears contributions,
absences, or public service credit permitted under this part, the
member's entire compensation, or the service upon which that total
amount was based, as the case may be, shall be included in the
computation of the portion of the death benefit that is provided in
subdivision (b) of Section 21532, and the unpaid balance of the total
amount shall not be paid to this system, nor shall it be included in
the member's accumulated contributions that constitute a part of the
basic death benefit.
(b) Any balance of any total amount remaining unpaid at the death
of the member on account of whom a special death benefit is payable
or at the retirement of a member for industrial disability shall
become due and payable immediately, except that the survivor of a
member who died under circumstances under which a special death
benefit is payable and who had authorized payroll deductions may
elect to continue those deductions from the survivor allowance in
lieu of the lump-sum payment otherwise required. If the balance is
not paid, the portion of the unpaid amount representing contributions
on compensation earned in the membership applicable to the member at
the time of injury resulting in death or disability shall be
deducted from the benefit otherwise payable and this system shall be
discharged from any liability for any annuity or benefit with respect
to any remainder of the unpaid contribution.
(c) Any balance of the total amount remaining unpaid at the time
of retirement for service or ordinary disability, or at death, with
respect to which a benefit is payable under Section 21546, shall
become due and payable immediately, except that the survivor of a
member who died under circumstances under which a benefit under
Section 21546 is payable and who had authorized payroll deductions
may elect to continue those deductions from the survivor allowance in
lieu of a lump-sum payment of the balance due. If the balance is
not paid, the service credit included in the election shall be
reduced proportionately and any service credit dependent on
completion of payments eliminated for purposes of computing the
allowance but not for purposes of determining entitlement to an
allowance.
(d) Notwithstanding any provision of subdivision (b) or (c), a
member who retires after January 1, 1976, before payment of the total
amount which he or she elected to pay, may elect to pay the balance
due, or the total amount if no payroll deductions had been made prior
to retirement, by deductions from his or her retirement allowance
equal to those which the member authorized as payroll deductions. In
that case, service credit included in the election shall not be
reduced, nor shall any prior service dependent on completion of
payments be eliminated for purposes of computing the allowance. Any
balance of the total amount remaining unpaid upon the death of the
member shall be treated in the same manner as unpaid balances are
treated if a special death benefit is payable, except that the
survivor of a retired member who had authorized deductions from his
or her retirement allowance in accordance with this subdivision, and
who is eligible for a monthly allowance, may elect to continue those
deductions from the survivor's allowance in lieu of the lump-sum
payment otherwise required.
(e) Interest paid with respect to normal contributions, arrears
contributions, absences, or public service credit permitted under
this part, prior to date of retirement or death of the member, shall
be credited to the member's individual account. Interest paid after
the date of retirement or death of the member shall be credited to
the retirement fund pursuant to Section 20174.
CHAPTER 9. EMPLOYER CONTRIBUTIONS
20790. Except as provided in Section 20815, "employer" for
purposes of this chapter means any contracting agency, except a
contracting agency on and after the effective date of the contracting
agency's election to be subject to any amendment of this part
effective on or after January 1, 1974, that provides that it is
inapplicable to a contracting agency until the agency elects to be
subject thereto.
20791. The state's contribution to the retirement fund with
respect to state miscellaneous members is a sum equal to 16.85
percent of the compensation paid those members by the state during
fiscal year 1978-79, and 19.006 percent of such compensation paid
during fiscal year 1979-80 and subsequent fiscal years.
20792. Notwithstanding any other provision of this part, the
state's contribution to the Public Employees' Retirement Fund during
fiscal year 1986-87 is a sum equal to the percentages of compensation
paid the following categories:
(a) 15.450 percent with respect to state miscellaneous members.
(b) 16.638 percent with respect to state industrial members.
(c) 22.522 percent with respect to state safety members.
(d) 22.150 percent with respect to state patrol members.
(e) 20.578 percent with respect to state peace officer/firefighter
members.
20793. Notwithstanding any other provision of this part, the
state's contribution on premium compensation for planned overtime
paid at the "half-time" rate as part of the regular shift under the
federal Fair Labor Standards Act or the Memorandum of Understanding
of State Bargaining Units 7 and 8 are waived for the period April 15,
1985, through June 30, 1988. This section applies to State
Bargaining Units 7 and 8 and becomes effective only if the board
approves a waiver of employer contributions on the same premium
compensation for the same period of time. If this section is
approved by the board, benefits shall be calculated to include
overtime paid at the one-half time rate.
20794. The contribution to the retirement fund of an employer,
some or all of whose employees who are school or miscellaneous
members have been included in the federal system, with a reduction in
the service retirement allowance because of that inclusion, in
respect to miscellaneous members is a sum equal to 7.26 percent of
the compensation paid those members employed by that employer.
20795. The contribution of an employer, other than one subject to
Section 20794, in respect to miscellaneous members is a sum equal to
7.75 percent of the compensation paid miscellaneous members employed
by that employer.
20796. (a) In addition to any and all other contributions to the
retirement fund, the state shall contribute 0.13 percent of the
compensation paid state members, other than school members, for
insurance benefits under Article 4 (commencing with Section 21600) of
Chapter 14 and during a period of insurance the contribution shall
be credited to the Insurance Benefits Account. The board shall,
pursuant to actuarial valuation of the fund in accordance with this
part, adjust the rate effective with the beginning of a fiscal year
as is determined to be necessary to fund to portion of the insurance
benefit prescribed in subdivision (a) of Section 21605. In the event
the period of insurance is not continued, the state shall pay to the
account any deficiency in the account as of the end of the fiscal
year.
(b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
20797. Notwithstanding any other provision of this part, the
board may reduce the state's contribution to the retirement fund
provided by any and all other provisions of this chapter in respect
to state members during the 1990-91 fiscal year by an amount equal to
the state's pro rata share, based upon the total assets of the
system, in the reserve against deficiencies established by Section
20174.
20798. (a) Funds remaining in the Investment Dividend
Disbursement Account, the Purchasing Power Accounts, and the
Extraordinary Performance Dividend Account upon the repeal of
Sections 21235, 21236, 21237, and 21238, by Chapter 83 of the
Statutes of 1991, shall be used to reduce employer contributions in
fiscal year 1991-92 and subsequent fiscal years until those amounts
are depleted.
(b) For the state employer, the funds shall only be utilized to
reduce the employer contributions required of state agencies or
departments that would otherwise be paid from General Fund
appropriations. Any interest that will be credited to the state
employer funds in fiscal year 1991-92 and thereafter shall also be
used to reduce the state employer's contributions in that manner.
20799. The board shall credit all contributions of the state,
school employer, and contracting agencies in the retirement fund with
interest at the current net earnings rate compounded at each June
30.
20800. The state's contributions to the retirement fund, with
respect to the following classifications, provided by any and all
other provisions of
this chapter is increased by a sum equal to that percentage of the
compensation paid the members set forth opposite each classification
in the following table:
Classification Percentage
State miscellaneous .......................... .31
State patrol ................................. .55
State safety ................................. .26
State industrial ............................. .21
20801. The state's contribution to the retirement fund with
respect to state patrol members is a sum equal to 31.18 percent of
the compensation paid state patrol members.
20802. The state's contribution to the retirement fund for state
safety members is a sum equal to 19.94 percent of the compensation
paid to state safety members by the state on and after October 1,
1977.
20803. Beginning on January 1, 1980, the state's contribution to
the retirement fund provided by any other provisions of this chapter
is increased by 0.104 percent of the compensation paid to state
miscellaneous members, 0.125 percent of the compensation paid to
state patrol members, and 0.071 percent of the compensation paid
state safety members.
This section shall remain in effect only until January 1, 1996,
and as of that date is repealed, unless a later enacted statute,
which is chaptered before January 1, 1996, deletes or extends that
date.
20804. The state's contribution to the retirement fund with
respect to state industrial members is a sum equal to the following
percentages of the compensation paid state industrial members:
(a) 17.35 percent during October 1977 through June 1978.
(b) 18.35 percent during the 1978-79 fiscal year.
(c) 19.91 percent during the 1979-80 fiscal year and subsequent
years.
20805. As used in determining the state's contribution,
"compensation paid" includes the compensation a member absent on
military service would have received were it not for his or her
absence is that service, if the normal contributions for the period
of absence are made. The rate of his or her compensation shall be
his or her compensation at the commencement of his or her absence.
The percentages of state contribution specified in this chapter apply
to all compensation upon the basis of which member's contributions
are deducted after those percentages became or become effective,
without regard to the time when the service was rendered for which
the compensation is paid.
20806. Each contracting agency and school employer that is an
employer for purposes of this chapter shall make contributions in
addition to those otherwise specified in this chapter in amounts to
be fixed and determined by the board on account of unpaid liability
for prior service and on account of liability for benefits under
Sections 21624 through 21628, inclusive, and 21571 and benefits
provided local safety members. Payments shall be under any
arrangement as may be agreed to by the board.
20807. The state shall make contributions on account of liability
for benefits increased under Section 21622 by Chapter 799 of the
Statutes of 1980 in addition to those otherwise required by this part
in a sum equal to 0.013 percent of the compensation paid state
miscellaneous and industrial members by the state, 0.008 percent of
the compensation paid state safety members by the state, and 0.010
percent of the compensation paid patrol members by the state.
The contribution of a school employer to the retirement fund with
respect to school members and local members employed by a school
district or a county superintendent of schools, and the contribution
of any employer of a school member, as defined in former Section
20019.2 as added by Chapter 213 of the Statutes of 1977, for benefits
on account of liability for benefits increased under Section 21622,
by Chapter 799 of the Statutes of 1980 in addition to those otherwise
required by this part, is increased by a sum equal to 0.018 percent
of the compensation paid to those members.
20808. (a) The actuary may, in determining contributions required
of contracting agencies, establish a contribution with respect to
industrial disability allowances, special death benefits, and any
other death benefit, singly or in any combination, separate from and
independent of the contribution required for other benefits under
their contracts. The total contribution, in that case, for the
agencies as a group shall be established and from time to time
adjusted by actuarial valuation performed by the actuary of the
liability for the benefit or benefits on account of the employees of
all those agencies. Adjustments shall affect only future
contributions and shall take into account the difference between
contributions on hand and the amount required to fund the allowances
or benefits for which entitlement has already been established as
well as liability for future entitlements to benefits. The
contribution as so established and adjusted from time to time shall
be allocated between the agencies on a basis that, in the opinion of
the board, after recommendation of the actuary, provides an equitable
distribution between the agencies. However, the allocation shall
not be based on differences in the incidence of death or disability
in the respective agencies.
(b) Whenever the board, pursuant to subdivision (a), establishes a
separate contribution, it shall maintain the contribution and any
contributions required to be made by employees towards the cost of
the benefit or benefits as a separate account, which shall be
available only for payment of the benefit or benefits and shall not
be a part of the accumulated contributions under this system of any
of the employers or members included.
All contributions in that account, irrespective of the agency from
which they were received, shall be available for payment of the
benefit or benefits with respect to the employees of any agency
included, and in the event of termination of any the agency's
participation in this system the liability with respect to all those
benefits to which the agency's employees have become entitled, after
establishment of the rate and prior to the termination, shall be its
contributions, as established under subdivision (a), which have
become due and payable as of the date of termination.
20809. The state shall make the increased contributions required
on account of liability for benefits provided by Section 20414 from
social security contributions which would have been payable by the
employer had Section 20414 not been enacted up to an amount necessary
to fully fund the cost of those benefits.
20810. The state shall make the increased contributions required
on account of liability for benefits provided by Section 20415 from
social security contributions which would have been payable by the
employer had Section 20415 not been enacted up to an amount necessary
to fully fund the cost of those benefits.
20811. The state shall make the increased contribution required
on the account of liability for benefits provided by Sections 20409,
20410, and 21151 from social security contributions that would have
been payable by the employer had Sections 20409 and 20410 not been
enacted, up to an amount necessary to fully fund the cost of those
benefits.
20812. Notwithstanding any other provision of this part, the
board may adopt a funding period of 30 years to amortize unfunded
accrued actuarial obligations for current and prior service for the
purpose of determining employer contribution rates for contracting
agencies and school employers. The board shall approve new
amortization periods based upon requests from contracting agencies or
school employers that can demonstrate a financial necessity. The
board may deny a request when the request would subject the fund to
an unsound financial risk. This section shall not affect the current
procedure for setting the school employer rate. The board shall
continue to treat the school category as a total experience pool with
no requirement to establish separate rates for a school district
subject to this section. A contracting agency or school employer may
not request a new amortization period pursuant to this section more
than once.
20813. The board may adopt an amortization period of 40 years for
any unfunded actuarial liability for the benefits applicable to all
state miscellaneous members and all state peace officer/firefighter
members.
20814. (a) Notwithstanding any other provision of law, the state'
s contribution as fixed under this chapter shall be adjusted
thereafter from time to time in the annual Budget Act according to
the following method. As part of the proposed budget submitted
pursuant to Section 12 of Article IV of the California Constitution,
the Governor shall include the contribution rates submitted by the
actuary of the liability for benefits on account of employees of the
state. The Legislature shall adopt the actuary's contribution rates
and authorize the appropriation in the Budget Act.
(b) The employer contribution rates for all other public employers
under this system shall be determined on an annual basis by the
actuary and shall be effective on the July 1 following notice of
change in rate.
20815. Notwithstanding any other provision of this part,
including, but not limited to, Sections 20225 and 20790, the board
shall not combine the assets and liabilities of public agency
employers into a single account for the purpose of setting a uniform
rate of employer contributions for all public agency employers. The
rate at which a public employer's contribution to this system shall
be fixed shall be based upon its own experience. Provisions of law
that provide authority for this system to combine the assets and
liabilities of public employers into a single account for purposes of
establishing a uniform rate are superseded to the extent that they
provide that authority. For purposes of this section only,
references to public employers shall not be construed to include
school employers.
20816. Notwithstanding any other provision of this part, all
assets of an employer shall be used in the determination of the
employer contribution rate for the membership comprising the basis of
the computation. Assets held shall be recognized over the same
funding period used to amortize unfunded accrued actuarial
obligations whether in excess of the accrued actuarial obligation or
not, using the entry age normal funding method.
For the purpose of this section, "employer" means any contracting
agency, the state, or a school employer.
The actuarial report in the annual financial report shall also
express the effect upon employer contribution rates of this section
and of the recognition of net unrealized gains and losses.
This section shall become operative on July 1, 1997.
20817. The actuary shall recognize, over the same funding period
used to amortize unfunded accrued actuarial obligations, using the
entry age normal funding method, that portion of assets of an
employer currently designated as excess assets in each fiscal year
equal to the following:
1993-94 ...................... 20%
1994-95 ...................... 40%
1995-96 ...................... 60%
1996-97 ...................... 80%
This section shall remain in effect only until January 1, 1998,
and as of that date is repealed, unless a later enacted statute which
is chaptered before January 1, 1998, deletes or extends that date.
20818. The contribution of a school employer to the retirement
fund with respect to school members and local members employed by a
school district or a county superintendent of schools, and the
contribution of any employer of a school member, as defined in former
Section 20019.2, as added by Chapter 213 of the Statutes of 1977,
for benefits provided by any provision of this part is increased by a
sum equal to 0.308 percent of the compensation paid to those
members.
20819. The contribution of a school employer to the retirement
fund with respect to school members and local members employed by a
school district or a county superintendent of schools, and the
contribution of any employer of a school member, as defined in former
Section 20019.2, as added by Chapter 213 of the Statutes of 1977,
for benefits provided by any provision of this part is increased by a
sum equal to 0.084 percent of the compensation paid to those
members.
This section shall remain in effect only until January 1, 1996,
and as of that date is repealed, unless a later enacted statute,
which is chaptered before January 1, 1996, deletes or extends that
date.
20820. Notwithstanding Section 20816, surplus funds credited to
the patrol member category shall be used to reduce the state employer
contribution to this system. Surplus funds in the patrol member
category may also be used to reduce the member contributions required
by Section 20681, under the terms of a memorandum of understanding
reached pursuant to Section 3517.5.
20821. (a) The contribution to the retirement fund of a school
employer or a contracting agency electing to be subject to Section
20325 with respect to school members and local members making
payments pursuant to Section 20325 for past service that was less
than the minimum prescribed by paragraph (2) of subdivision (a) of
Section 20305 because of service of less than 20 hours a week, prior
to the enactment of Section 20325, shall be increased by an amount or
a percentage of the compensation paid to those members determined by
the board.
(b) The additional contribution imposed pursuant to subdivision
(a) shall include an amount to pay the reasonable administrative
expenses incurred by the board in establishing the additional
contribution required in subdivision (a).
20822. From the General Fund in the State Treasury there is
appropriated annually, 12 months in arrears, on July 1 of each fiscal
year, beginning July 1, 1994, to the retirement fund the state's
contribution for:
(a) All state miscellaneous members and all other categories of
members whose compensation is paid from the General Fund.
(b) All university members whose compensation is paid from funds
of, or funds appropriated to, the university.
(c) All state miscellaneous members who are employed by the State
Department of Education or the Department of Rehabilitation and whose
compensation is paid from the Vocational Education Federal Fund, the
Vocational Rehabilitation Federal Fund, or any other fund received,
in whole or in part, as a donation to the state under restrictions
preventing its use for state contributions to the retirement system.
(d) All state miscellaneous members whose compensation is paid
from the Senate Operating Fund or the Assembly Operating Fund or the
Operating Funds of the Assembly and Senate.
20823. (a) Notwithstanding Section 20822, the state's
contributions for the 1991-92 fiscal year for the members specified
in Section 20822 shall be appropriated semiannually, on January 31,
1992, and June 30, 1992.
(b) The Legislature finds and declares that this section will not
affect the soundness of the retirement fund, in that the change to
semiannual payments is on a one-time basis and any resulting loss to
that fund will be accounted for by increased employer contributions
in subsequent years.
20824. From each other fund in the State Treasury there is
appropriated quarterly to the retirement fund the state's
contribution for all members whose compensation is paid from that
fund and in respect to which compensation the state's contribution is
not required to be made from the General Fund.
20825. All or part of the employer's contribution required to be
made to the system during any fiscal year may be made annually in
advance of the due date thereof. The payments to be so made in
advance may be discounted to present value at the actuarial rate.
This section shall apply only to Riverside County as a two-year
pilot project between July 1, 1992, and June 30, 1994.
20826. The board shall certify to the Controller at the end of
each quarter or annual period, as appropriate, the total amount of
compensation in respect to which state contributions are payable from
the General Fund and each other fund in the State Treasury, and the
Controller shall thereupon transfer the state's contribution from
each fund, respectively, to the retirement fund. Compensation shall
be included in the certification at the end of the month in which the
member's contributions based upon it are paid.
20827. The contributions of the state and all employers, as
defined in Section 20790, with respect to miscellaneous members shall
be applied by the board during each fiscal year to collectively meet
the obligations with respect to miscellaneous members under this
system as follows:
(a) First, in an amount equal to the liabilities accruing (1)
because of state service of members for which normal contributions
have been made, (2) on account of current service pensions and
disability retirement pensions, and (3) the portion of death
allowance provided from state and employer contributions. The amount
shall be determined by the most recent actuarial valuation as
interpreted by the actuary.
(b) Second, in an amount equal to the payments of death benefits
made from state and employer contributions during the fiscal year for
deaths not qualifying for death allowances.
(c) Third, the balance of the contributions, on the liabilities
accrued on account of prior service pensions.
20828. The contributions of all school employers with respect to
school members shall be applied by the board during each fiscal year
to meet the obligations of all school employers collectively with
respect to school members under this system as follows:
(a) First, in an amount equal to the liabilities accruing (1)
because of state service of members for which normal contributions
have been made, (2) on account of current service pensions and
disability retirement pensions, and (3) the portion of death
allowances provided from employer contributions. The amount shall be
determined by the most recent actuarial valuation as interpreted by
the actuary.
(b) Second, in an amount equal to the payments of death benefits
made from employer contributions during the fiscal year for deaths
not qualifying for death allowances.
(c) Third, the balance of the contributions, on the liabilities
accrued on account of prior service pensions.
20829. Any state fund out of which payments are made under this
chapter may be reimbursed to the extent of the payments by transfer
of a sufficient sum from other funds under the control of the same
disbursing officer. The disbursing officer shall certify to the
Controller the amounts to be transferred, the funds from and to which
the transfer is to be made, and the Controller shall make the
transfer as directed in the certificate.
20830. All payments required by this chapter to be made by the
state to the retirement fund, are continuing obligations of the
state.
20831. Notwithstanding any other provision of law, neither the
state, any school employer, nor any contracting agency shall fail or
refuse to pay the employers' contribution required by this chapter or
to pay the employers' contributions required by this chapter within
the applicable time limitations.
20832. Accumulated contributions other than contributions for
prior service credited to or held as of June 21, 1971, as having been
made by a contracting agency to the extent subject to Section 20506,
with respect to miscellaneous members, and all contributions
thereafter made by an employer pursuant to this chapter, other than
contributions pursuant to Section 20806, with respect to those
members shall be held for the benefit of all the members of this
system who are now or hereafter credited with service rendered as
employees of those employers, and for beneficiaries of this system
who are now or hereafter entitled to receive benefits on account of
that service.
20833. Contributions of the state with respect to state
miscellaneous members made on and after January 1, 1975, and
accumulated contributions credited to or held as of July 1, 1968 as
having been made by the state adjusted by addition of all
contributions thereafter made by the state with respect to those
members and interest credited thereto and subtraction of amounts paid
thereafter to or on account of those members shall be held on and
after January 1, 1975, exclusively for the benefit of state
miscellaneous members, retired state miscellaneous members and
beneficiaries of those members and retired members.
20834. A contracting agency that is not an employer or that
ceases to be an employer for purposes of this chapter shall
thereafter make contributions as otherwise provided in Chapter 5
(commencing with Section 20460). Except as provided in Section
20578, if a contracting agency ceases to be an employer for purposes
of this section, its contributions thereafter and the accumulated
contributions credited to or held as having been made by the agency
adjusted by addition of all contributions thereafter made by the
employer and subtraction of amounts paid thereafter to or on account
of employees of the contracting agency shall be held, on and after
the date upon which the contracting agency ceases to be an employer,
exclusively for the benefit of its employees, retired employees and
beneficiaries of the employees and retired employees.
A contracting agency shall not be an employer for purposes of this
section, if the board determines that the agency has no active
employees eligible for coverage under this section.
20835. A public agency which becomes a contracting agency on or
after January 1, 1977, or which amends its contract to include the
benefits provided in Sections 21624 and 21626, shall not be an
employer for purpose of Section 20834, and all contributions of the
contracting agency shall be held exclusively for the benefit of its
employees, its retired employees, and beneficiaries of those
employees and retired employees.
20836. The contribution of a contracting agency described in
Section 20834 in respect to miscellaneous members is increased by a
sum equal to 0.08 percent of the compensation paid to those members
by the employer.
CHAPTER 10. PAYMENT OF FEDERAL CONTRIBUTIONS
20860. Every state member and every person eligible to membership
as a state member covered by the federal-state agreement providing
coverage under the federal system for the member shall be liable for
employee federal contributions.
20861. Employee federal contributions shall be withheld by the
state department or agency that disburses funds in payment of
salaries and wages to those members. The department or agency shall
transmit to the Old Age and Survivors Insurance Revolving Fund all
those employee federal contributions and employer federal
contributions. All wage, contribution, and other reports required to
fulfill the obligations of the state under the federal system shall
be submitted to the appropriate agency as
required by federal law. Those agencies and
departments are hereby authorized to correct errors and to make any
and all adjustments with respect to all covered employees and to the
funds from which salary and wage payments and contributions are made
as may be required to fulfill the obligations of the state under the
federal system in compliance with federal law.
20862. From the General Fund in the State Treasury there shall be
transferred from time to time, to the Old Age and Survivors
Insurance Revolving Fund the amount of employer federal contributions
with respect to salaries and wages paid on and after July 1, 1963,
or paid prior to but included in reports of adjustments of covered
wages filed by the state on or after that date, for those state
members covered by the agreement whose compensation is paid from
either:
(a) The General Fund.
(b) Funds of or funds appropriated to the university.
(c) The Vocational Education Federal Fund, the Vocational
Rehabilitation Federal Fund, or any other fund received, in whole or
in part, as a donation to the state under restrictions preventing its
use for the payment of employer federal contributions.
(d) The Senate Operating Fund or the Assembly Operating Fund or
the Operating Funds of the Assembly and Senate.
20863. From each other fund in the State Treasury there shall be
transferred from time to time to the Old Age and Survivors Insurance
Revolving Fund the amount of employer federal contributions with
respect to salaries and wages paid on and after July 1, 1963, or paid
prior to but included in reports of adjustments of covered wages
filed by the state on or after that date, for those state employees
covered by the agreement whose compensation is paid from that fund
and in respect to which compensation the employer's federal
contribution is not required to be made from the General Fund.
20864. There is hereby appropriated the amount necessary from the
funds designated, to provide the payments required by this chapter
to be made by the state to the Old Age and Survivors Insurance
Revolving Fund, which payments are declared to be continuing
obligations of the state.
CHAPTER 11. SERVICE CREDIT
Article 1. General Provisions
20890. Past local miscellaneous service shall be converted to
local safety service if the past service:
(a) Was rendered by a current employee of the same agency for
which the miscellaneous service was performed; and
(b) Was rendered in a position that has subsequently been
reclassified as a local safety position; and
(c) Is credited to an employee who has other local safety service
credit for service performed with the agency.
20891. Section 20066 and subdivisions (a) and (b) of Section
20068 shall not apply to a state miscellaneous or state industrial
member subject to Section 21076 or Section 21077 who becomes a patrol
member, a state safety member, or a state peace officer/firefighter
member as a result of an amendment to this part defining those
members, or is reclassified as a state peace officer/firefighter
member pursuant to Sections 20395 or 20398, unless the member elects
to: (a) deposit in the retirement fund an amount equal to any
accumulated contributions that he or she withdrew pursuant to Section
20737, plus an amount equal to the interest which would have been
credited to his or her account, to the date of completion of
payments, had those contributions not been withdrawn; and, (b)
deposit in the retirement fund the amount that he or she would have
contributed had he or she not been subject to subdivision (c) of
Section 20677, plus an amount equal to the interest, to the date of
completion of payments, which would have been credited to those
contributions had he or she been subject to subdivision (a) or (b) of
Section 20677.
20892. Service by a member in two or more school districts having
governing boards composed of the same persons, shall be considered
as though the service were rendered in one school district.
20893. If a person is employed concurrently by more than one
contracting agency or the state and one or more contracting agencies,
his or her status under this system is the same as if he or she were
employed in more than one state agency.
20894. A person shall not receive credit for the same service in
two retirement systems supported wholly or in part by public funds
under any circumstance. Nothing in this section shall preclude
concurrent participation and credit for service in a public
retirement system and in a deferred compensation plan established
pursuant to Chapter 4 (commencing with Section 19993) of Part 2.6 or
pursuant to Article 1.1 (commencing with Section 53212) of Chapter 2
of Part 1 of Division 2 of Title 5, a tax-deferred retirement plan
which meets the requirements of Section 40l(k) of Title 26 of the
United States Code, or a money purchase pension plan and trust which
meets the requirements of Section 401(a) of Title 26 of the United
States Code.
20895. The provisions of this part extending rights to a member
of this system, or subjecting him or her to any limitation, by reason
of his or her membership in a retirement system established under
the County Employees Retirement Law of 1937, shall apply in like
manner and under like conditions to a member of this system by reason
of his or her membership in any retirement system maintained by the
university, provided that the member entered this system on or after
October 1, 1963, and within 90 days of discontinuance of employment
as a member of a retirement system maintained by the university, or
he or she entered into employment as a member of any system
maintained by the university on or after October 1, 1963, and within
90 days of discontinuance of employment as a member of this system;
provided, further, that this section shall have no application
whatsoever until the Regents of the University of California agree to
provide similar benefits under any university system under like
conditions.
This section shall supersede any provision contained in Section
20037 that is in conflict with this section, with respect to any
person who enters university employment or employment in which he or
she is a member of this system, on or after October 1, 1963.
20896. A member who is receiving military retirement pay based on
20 or more years of active duty with the armed forces shall be
deemed to have received credit in a publicly supported retirement
system for all service performed with the armed forces. Credit
toward military retirement pay that is earned by a combination of
active duty and nonactive duty with a reserve component of the armed
forces and where the retirement pay is payable only upon the
attainment of a specified age shall not be deemed credit in a
publicly supported retirement system.
20897. A member who is receiving disability retirement pay that
is paid by one of the armed forces shall be deemed to be receiving
military retirement pay based on active duty, regardless of the
number of years of active duty served. A member who is receiving
disability compensation from the Veterans' Administration and is not
receiving retirement pay from one of the armed forces shall not be
considered to be receiving military retirement pay.
20898. In computing the service with which a member is entitled
to be credited under this part, time during which the member is
excused from working because of holidays, sick leave, vacation, or
leave of absence, with compensation, shall be included.
20899. In computing the amount of service to be credited to a
member who is entitled to credit under this part for service as an
elective officer, a year of service shall be credited for each year
of tenure in the office. A person serving in the office shall be
deemed to be serving on a full-time rather than a part-time basis for
all purposes of this part.
20900. Notwithstanding any other provision of this part, a member
employed on a part-time basis on and after January 1, 1976, shall,
for the period of part-time employment, receive the credit the member
would receive if he or she was employed on a full-time basis and
have his or her retirement allowance, as well as any other benefits
the member is entitled to under this part, based upon the salary that
he or she would have received if employed on a full-time basis, if
the member and his or her employer both elect to contribute to the
retirement fund the amount that would have been contributed if the
member was employed on a full-time basis. Prior to the reduction of
an employee's workload under this section, the district personnel
responsible for the administration of this program, in conjunction
with the administrative staff of the State Teachers' Retirement
System and this system, shall verify the eligibility of the applicant
for the reduced workload program. This section shall be applicable
only to members who are academic employees of the California State
University or who are certificated employees of school districts and
who have met the criteria provided in Sections 44922 and 87483 of the
Education Code or Section 89516 of the Education Code and are not
older than 70 years and is limited to a period of five years of
part-time status. The employer shall maintain the necessary records
to separately identify each employee receiving credit pursuant to
this section.
20901. Notwithstanding any other provisions of this part,
whenever the Governor, by executive order, determines that because of
an impending curtailment of, or change in the manner of performing
service, the best interests of the state would be served by
encouraging the retirement of state employees, and that sufficient
economies could be realized to offset any cost to state agencies
resulting from this section, an additional two years of service shall
be credited to state members, other than school members, if the
following conditions exist:
(a) The member meets the service requirements of Section 21060 or
Section 21074 and retires during a period not to exceed 120 days or
less than 60 days commencing no sooner than the date of issuance of
the Governor's executive order which shall specify the period.
(b) The appointing power, as defined in Section 18524, or the
Regents of the University of California or the Trustees of the
California State University, transmits to the retirement fund an
amount determined by the board that is equal to the actuarial
equivalent of the difference between the allowance the member
receives after the receipt of service credit under this section and
the amount the member would have received without that service
credit. The transfer to the retirement fund shall be made in a
manner and time period acceptable to the employer and the board.
(c) The appointing power or the regents or the trustees determines
that it is electing to exercise the provisions of this section,
pursuant to the Governor's order, and certifies to the Department of
Finance and to the Office of Legislative Analyst, as to the specific
economies that will be realized were the additional service credit
towards retirement granted.
As used in this section, "member" means a state employee who is
employed in a job classification, department, or other organizational
unit designated by the appointing power, as defined in Section
18524, the Regents of the University of California, or the Trustees
of the California State University.
The amount of service credit shall be two years regardless of
credited service, but shall not exceed the number of years
intervening between the date of the member's retirement and the date
the member would be required to be retired because of age. The
appointing power or the regents or the trustees shall make the
payment with respect to all eligible employees who retired pursuant
to this section.
Any member who qualifies under this section, upon subsequent
reentry to this system shall forfeit the service credit acquired
under this section.
This section shall not be applicable to any member otherwise
eligible if the member receives any unemployment insurance payments
arising out of employment with an employer subject to this part
during a period extending one year beyond the date of issuance of the
executive order or if the member is not eligible to retire without
the additional credit available under this section.
The benefit provided by this section shall not be applicable to
the employees of any appointing power or the regents or the trustees
until the Director of Finance approves the transmittal of funds by
that appointing power or the regents or the trustees to the
retirement fund pursuant to subdivision (c).
The Director of Finance shall approve the transmittal of funds by
the appointing power or the regents or the trustees not sooner than
30 days after notification in writing of the necessity therefor to
the chairperson of the committee in each house that considers
appropriations and the Chairperson of the Joint Legislative Budget
Committee, or not sooner than such lesser time as the chairperson of
the committee, or his or her designee, may in each instance
determine. If there is any written communication between the
Director of Finance and the Legislative Analyst, a copy thereof shall
be immediately transmitted to the chairperson of each appropriate
policy committee.
20902. Notwithstanding any other provisions of this part,
whenever the employer, by formal action, determines that because of
an impending curtailment of, or change in the manner of, performing
service, the best interests of the state would be served by
encouraging the retirement of legislative employees, and that
sufficient economies could be realized to offset any cost to the
employer resulting from this section, an additional two years of
service shall be credited to legislative employees who are members,
pursuant to Section 20324, if the following conditions exist:
(a) The member is credited with five or more years of service and
retires during a period not to exceed 120 days or less than 60 days
commencing no sooner than the operative date of the formal action of
the employer that shall specify the period.
(b) The employer transmits to the retirement fund an amount
determined by the board that is equal to the actuarial equivalent of
the difference between the allowance the member receives after the
receipt of service credit under this section and the amount the
member would have received without that service credit. The transfer
to the retirement fund shall be made in a manner and time period
acceptable to the employer and the board.
The amount of service credit shall be two years regardless of
credited service.
Any member who qualifies under this section, upon subsequent
reentry to this system shall forfeit the service credit acquired
under this section.
This section shall not be applicable to any member otherwise
eligible if the member receives any unemployment insurance payments
arising out of employment with an employer subject to this part
during a period extending one year beyond the operative date of the
formal action of the employer or if the member is not eligible to
retire without the additional credit available under this section.
As used in this section, "employer" means the Joint Rules
Committee, the Joint Legislative Budget Committee, the Joint
Legislative Audit Committee, the Senate Committee on Rules, and the
Assembly Rules Committee, with respect to their respective employees.
20903. Notwithstanding any other provisions of this part, when
the governing body of a contracting agency determines that because of
an impending curtailment of, or change in the manner of performing
service, the best interests of the agency would be served, a local
member shall be eligible to receive additional service credit if the
following conditions exist:
(a) The member is employed in a job classification, department, or
other organizational unit designated by the governing body of the
contracting agency and retires within any period designated in and
subsequent to the effective date of the contract amendment provided
the period is not less than 90 days nor more than 180 days.
(b) The governing body transmits to the retirement fund an amount
determined by the board which is equal to the actuarial equivalent of
the difference between the allowance the member receives after the
receipt of service credit under this section and the amount he or she
would have received without that service credit. The transfer to
the retirement fund shall be made in a manner and time period
acceptable to the employer and the board.
(c) The governing body shall certify that it is electing to
exercise the provisions of this section, because of impending
mandatory transfers, demotions, and layoffs that constitute at least
one percent of the job classification, department or organizational
unit as designated by the governing board, resulting from the
curtailment of, or change in the manner of performing, its services.
(d) The governing body shall certify that it is its intention at
the time that this section is made operative that if any early
retirements are granted after receipt of service credit pursuant to
this section, that any vacancies thus created or at least one vacancy
in any position in any department or other organizational unit shall
remain permanently unfilled thereby resulting in an overall
reduction in the work force of the department or organizational unit.
The amount of service credit shall not be more than two years
regardless of credited service and shall not exceed the number of
years intervening between the date of his or her retirement and the
date he or she would be required to be retired because of age.
A governing body that elects to make the payment prescribed by
subdivision (b) shall make the payment with respect to all eligible
employees who retire during the specified period.
This section shall not be applicable to any member otherwise
eligible if the member receives any unemployment insurance payments
during the specified period.
Any member who qualifies under this section, upon subsequent
reentry to this system shall forfeit the service credit acquired
under this section.
This section shall not apply to any member who is not employed by
the contracting agency during the period designated in subdivision
(a) and who has less than five years of service credit.
This section shall not apply to any contracting agency unless and
until the agency elects to be subject to the provision of this
section by amendment to its contract made in the manner prescribed
for approval of contracts, except an election among the employees is
not required, or, in the case of contracts made after the effective
date of this section, by express provision in the contract making the
contracting agency subject to the provisions of this section.
Notwithstanding Section 20790, an election to become subject to
this section shall not exclude an agency from the definition of
"employer" for purposes of Section 20790.
This section shall remain in effect until January 1, 1998, and as
of that date is repealed, unless a later enacted statute, which is
chaptered before that date deletes or extends that date.
20903.5. (a) Notwithstanding Section 20903 or any other provision
of this part, for only the 1994-95, 1995-96, and 1996-97 fiscal
years, when the governing body of a contracting agency, other than a
school employer, determines that because of an impending curtailment
of service, or change in the manner of performing service, the best
interests of the agency would be served by encouraging the retirement
of local members, the governing body may adopt a resolution to grant
eligible employees additional service credit if the following
conditions exist:
(1) The member meets the age and service requirements of Section
21060, is credited with 10 or more years of service, and retires on
service retirement on or before a date determined by the governing
body that is within a period that is not more than 120 days after the
governing body's adoption of the resolution.
(2) The governing body agrees to transmit to the retirement fund
an amount determined by the board that is equal to the actuarial
equivalent of the difference between the allowance the member
receives after the receipt of service credit under this section and
the amount the member would have received without that service credit
and any administrative costs incurred by this system in a manner and
time period acceptable to the governing body and the board.
However, the payment period shall not exceed five years. If payment
in full is not received within 30 days of the invoice, regular
interest shall be charged on any unpaid balance.
(b) (1) The resolution shall specify the categories of employees
that are eligible to receive the additional service credit and the
departments, programs and position classifications in which employee
members would be eligible for the additional service credit.
(2) The resolution shall specify the period of eligibility, and
the amount of additional service in whole years. The amount of
additional service credit shall not be more than four years.
(c) (1) The governing body shall certify either that sufficient
positions have been deleted whose total cost equals or exceeds the
lump-sum actuarial cost of the additional service credit granted or
that all positions vacated due to the additional service credit
granted pursuant to this section shall remain vacant for at least
five years and until the lump-sum actuarial cost of the additional
service credit granted has been recaptured from position vacancy
salary savings.
(2) The governing body shall certify to the board the extent to
which savings will exceed necessary payments to the board, the
specific measures to be taken to assure that outcome, and that the
agency has complied with Section 7507. The board may require the
governing body to provide verification of its certification through
independent review.
(d) At the time the governing body has achieved savings that are
more than adequate to meet necessary payments to the board, or five
years after commencement of the retirement period specified in
paragraph (1) of subdivision (a), whichever occurs first, the
governing body shall certify to the board the amount of actual
savings and the measures taken to achieve the savings. The governing
body shall maintain records for each worker retiring pursuant to
this section. The board may require the governing body to provide
verification of its certification through independent review. The
board shall report these certifications to the Controller, who shall
summarize the cost and savings information therein for inclusion in
his or her annual report prepared pursuant to Sections 7501 through
7504. The Controller shall perform a postaudit to verify that the
savings equal or exceed the lump-sum actuarial cost of the additional
service granted
pursuant to this section. The local contracting agency shall pay the
cost of the postaudit.
(e) This section shall not be applicable to any member otherwise
eligible if the member receives any unemployment insurance payments
arising out of employment with an employer subject to this part
during a period extending two years beyond the date of issuance of
the governing body's determination or if the member is not eligible
to retire without the additional credit available under this section.
(f) Any member who qualifies under this section, upon subsequent
reentry into this system or upon any subsequent service under
contract or any other basis, shall forfeit the service credit
acquired under this section. Any member who qualifies under this
section shall not receive temporary reemployment as an annuitant with
the public agency from which he or she has received credit under
this section for five years following the date of retirement.
(g) No additional service credit shall be granted pursuant to this
section on or after July 1, 1997.
20904. Notwithstanding any other provisions of this part, when
any county superintendent of schools determines that because of an
impending curtailment of, or change in the manner of performing
service, the best interests of the county superintendent of schools
would be served, a school member shall be eligible to receive
additional service credit if the following conditions exist:
(a) The member is employed in a job classification or an
organizational unit designated by the county superintendent of
schools and retires within any period designated in and subsequent to
the effective date of the contract amendment provided the period is
not less than 90 days nor more than 180 days.
(b) The county superintendent of schools transmits to the
retirement fund an amount determined by the board that is equal to
the actuarial equivalent of the difference between the allowance the
member receives after the receipt of service credit under this
section and the amount he or she would have received without the
service credit. The transfer to the retirement fund shall be made in
a manner and time period acceptable to the employer and the board.
(c) The county superintendent of schools shall certify that it is
his or her intention at the time that this section is made operative
that if any early retirements are granted after receipt of service
credit pursuant to this section, that the retirements will either:
(1) result in a net savings to the district or county superintendent
of schools, or (2) result in an overall reduction in the work force
of the organizational unit because of impending mandatory transfers,
demotions, and layoffs that constitute at least 1 percent of the job
classification, as designated by the county superintendent of
schools, resulting from the curtailment of, or change in the manner
of performing, its services.
The amount of service credit shall not be more than two years
regardless of credited service and shall not exceed the number of
years intervening between the date of his or her retirement and the
date he or she would be required to be retired because of age.
A county superintendent of schools that elects to make the payment
prescribed by subdivision (b) shall make the payment with respect to
all eligible employees who retire during the specified period.
This section shall not be applicable to any member otherwise
eligible if the member receives any unemployment insurance payments
during the specified period.
Any member who qualifies under this section, upon subsequent
reentry to this system shall forfeit the service credit acquired
under this section.
This section shall not apply to any member who is not employed by
the county superintendent of schools during the period designated in
subdivision (a) and who has less than five years of service credit.
This section shall not apply to any county superintendent of
schools unless and until the county superintendent of schools elects
to be subject to this section by amendment to the contract made in
the manner prescribed for approval of contracts, except an election
among the employees is not required, or, in the case of contracts
made after July 30, 1982, by express provision in the contract making
the county superintendent of schools subject to the provisions of
this section.
Notwithstanding Section 20790, an election to become subject to
this section shall not exclude a county superintendent of schools
from the definition of "employer" for purposes of Section 20790.
20905. (a) Notwithstanding any other provision of this part, a
school member employed on a part-time basis on and after January 1,
1991, shall, for that period of part-time employment, receive the
credit he or she would receive if he or she was employed on a
full-time basis and shall have his or her retirement allowance, as
well as any other benefits he or she is entitled to under this part,
based upon the salary that he or she would have received if employed
on a full-time basis if he or she and his or her employer both
contribute to the retirement fund the amount that would have been
contributed if the member was employed on a full-time basis. Prior
to the reduction of a classified employee's workload under this
section, the school employer personnel responsible for the
administration of this program shall verify the eligibility of the
applicant for the reduced workload program. This section shall be
applicable only to school members who are classified employees of
school employers or community college districts and who have met the
criteria provided in Sections 45139 and 88038 of the Education Code.
(b) The employer shall maintain the necessary records to
separately identify each classified employee receiving credit
pursuant to this section.
(c) For the purposes of this section, all contributions,
liabilities, actuarial interest rates, and other valuation factors
shall be determined on the basis of actuarial assumptions and methods
which, in combination, offer the actuary's best estimate of
anticipated experience under this system.
20906. (a) Notwithstanding any other provision of this part, a
school member who is on an approved leave of absence to serve as an
elected officer of an employee organization pursuant to Section 45210
or 88210 of the Education Code, shall receive the service credit he
or she would have received if he or she were not on leave, and shall
have benefits he or she is entitled to under this part, based upon
the salary that he or she would receive if he or she were not on
leave. Both the member and his or her employer shall contribute to
the retirement fund the amount that would have been contributed had
the member not been on leave.
(b) The school employer shall verify the eligibility of the
applicant for the elected officer's leave of absence. Service
credited pursuant to this section shall not exceed 12 years.
(c) The employer shall maintain the necessary records to
separately identify each employee receiving service credit pursuant
to this section.
20907. Any funds transferred to this system on account of
liability for additional service credit granted pursuant to Sections
20901, 20902, 20903, 20904, or former Section 20822, as added by
Chapter 450 of the Statutes of 1992, shall be paid over a time period
acceptable to the employer and the board, but in no case shall that
period exceed five years.
20908. Notwithstanding any other provision of law, a member upon
any subsequent service under unpaid contract or any other unpaid
basis with the Trustees of the California State University, shall not
be required to forfeit the service credits acquired under former
Section 20822, as added by Chapter 450 of the Statutes of 1992.
Article 2. Prior Service Credit
20930. Credit for prior service shall be granted to each member
who was employed by the university at the time of becoming a member
and who became a member on August 27, 1937 or within three years
after last rendering prior service.
20931. Credit for prior service shall be granted to each member
who was employed by the state, but not by the university, at the time
of becoming a member and who became a member on January 1, 1932, or
within three years after last rendering prior service. Credit for
prior service shall be granted to each state member who, on or before
the effective date of his or her retirement under this system
becomes entitled to be credited with five years or more of current
service rendered as a state member.
The status under this system of each state member who qualifies
for credit for prior service under this section shall be adjusted to
what it would have been if the prior service had been credited to the
member at the date he or she became a member of this system.
The amendments to this section, by Chapter 1287 of the Statutes of
1961, shall apply only to members whose retirement is effective on
or after October 1, 1961.
20932. Credit for prior service shall also be granted to each
state member who became a member while employed on a part-time basis,
as a result of amendments of the laws governing this system, or who
became a member prior to those amendments, because of a change in
status to a full-time basis.
20933. Credit for prior service shall be granted to each person
who was employed by a contracting agency at the time of becoming a
member and who became a member on the effective date of the agency's
contract or within three years after last rendering prior service.
20934. Credit for prior service rendered as an employee of a
contracting agency shall be granted to each local member at the date
the local member becomes a member of this system.
This section shall apply to all local members who are in active
state service on or after January 1, 1977, and notwithstanding any
other provision in this article shall operate prospectively.
20935. Every prior service pension and disability retirement
pension payable for time commencing on October 1, 1951, to any local
member who was retired prior to October 1, 1951, is hereby increased
to the amount it would be if the provisions of Section 20934, as they
exist on October 1, 1951, had been in effect on the date of the
actual retirement of the member; but this section does not authorize
any decrease in any pension, nor does this section give any retired
member, or his or her successors in interest, any claim against the
state for any increase in any pension paid or payable for time prior
to October 1, 1951. Calculation of pensions under this section shall
be made on the basis of current interest rate and mortality tables.
This section shall not apply to any contracting agency with
respect to its employees who have retired under this system prior to
October 1, 1951 until the agency elects to be subject to the
provisions of this section, with respect to those employees, by
amendment to its contract made in the manner prescribed for approval
of contracts; except that an election among the employees is not
required. The effective date of this section shall be the effective
date of the contract amendment for purposes of application to any
employee who was a member pursuant to the contract.
20936. Credit for prior service shall be granted to each local
member who rendered service to a public agency if that agency or a
function of that agency is assumed by a contracting agency or a
public agency that thereafter becomes a contracting agency.
The future annual costs incurred pursuant to this section shall be
determined in the manner prescribed for actuarial investigations and
valuations in Article 1 (commencing with Section 20460) of Chapter 5
and shall be made public at a public meeting at least two weeks
prior to the election by a public agency to be subject to this
section.
This section shall not apply to any contracting agency nor to the
employees of any contracting agency until the agency elects to be
subject to this section by contract or by amendment to its contract
made in the manner prescribed for approval of contracts.
20937. The credit for prior service to be granted local members
and the benefits pertaining thereto, shall be established by contract
between the board and the governing body of the agency. Benefits on
account of each year of credited prior service shall be in the form
of a percentage of either of the following:
(a) The final compensation of local safety members.
(b) The final compensation of a local miscellaneous member who
retires after December 1, 1969, whether or not the contracting agency
has elected to be subject to the provisions of this subdivision.
The percentages shall not exceed the analogous percentages
applicable to the members' current service, and shall be uniform for
all local safety members, according to age at entry into the service
of the contracting agency, if the member is entitled to credit for
prior service, or age at entry into this system, if the member is not
so entitled, and uniform for all local miscellaneous members
regardless of age at entry.
20938. Notwithstanding any other provision of this part, credit
for prior service shall be granted only to each person who was
employed by a contracting agency on the effective date of the agency'
s contract.
This section shall not apply to any contracting agency nor to the
employees of any contracting agency, unless the agency elects to be
subject to this section by express provision in the contract making
the contracting agency subject to this section.
20939. The repeal of former Section 20831.1 by Chapter 457 of the
Statutes of 1970 shall not affect any prior service pension being
paid on December 1, 1970.
20940. Notwithstanding the repeal of Sections 20839 and 20840 by
Chapter 266 of the Statutes of 1972, prior service credited and prior
service pensions and disability retirement pensions being paid on
March 7, 1973, pursuant to those sections shall be continued subject
to the terms and conditions under which they were granted.
Article 3. Computation of Service Credit
20960. Except as provided in Article 4 (commencing with Section
20990), time during which a member is absent from state service
without compensation shall not be allowed in computing service.
20961. Credit for more than one year of service shall not be
allowed for service rendered in any fiscal year.
20962. One year of service credit shall be granted for service
rendered and compensated in a fiscal year in full-time employment for
any of the following:
(a) One academic year of service for persons employed on an
academic year basis, under terms and conditions prescribed by the
board.
(b) Ten months of service for persons employed on a monthly basis.
(c) Two hundred fifteen days of service after June 30, 1951, and
250 days prior to July 1, 1951, for persons employed on a daily
basis.
(d) One thousand seven hundred twenty hours of service after June
30, 1951, and 2,000 hours prior to July 1, 1951, for persons employed
on an hourly basis.
(e) Nine months of service for state employees represented by
State Bargaining Unit 3 and subject to the 9-12 pay plan or leave
plan, provided a memorandum of understanding has been agreed to by
the state employer and the recognized employee organization to become
subject to this subdivision. A fractional year of credit shall be
given for service rendered in a fiscal year in full-time employment
for less than the time prescribed in this section.
20963. A state, school, or school safety member, whose effective
date of retirement is within four months of separation from
employment with the employer subject to this section that granted the
sick leave credit, shall be credited at his or her retirement with
0.004 year of service credit for each unused day of 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 and shall
not include any additional days of sick leave reported for the
purpose of increasing the member's retirement benefit. Reports of
unused days of sick leave shall be subject to audit and retirement
benefits may be adjusted where improper reporting is found.
Until receipt of certification from an employer concerning unused
sick leave, the board may pay an estimated allowance pursuant to this
section. At the time of receipt of the certification, the allowance
shall be adjusted to reflect any necessary changes.
Notwithstanding provisions of this part subjecting local
miscellaneous members to provisions applicable to state miscellaneous
members, this section shall not apply to local members other than
local miscellaneous members employed before July 1, 1980, by a school
district that is a contracting agency or those school safety members
employed before July 1, 1980, by a contracting agency that is a
school district or community college district, as defined in
subdivision (i) of Section 20057.
This section shall not be applicable to any person who becomes a
school member on and after July 1, 1980, and any person who becomes a
local member employed, on and after July 1, 1980, by a school
district that is a contracting agency whether or not the person was
ever a school member or local member prior to that date.
For the purposes of this section, sick leave benefits provided to
state employees pursuant to the state sick leave system shall be
construed to mean compensation paid to employees on approved leaves
of absence on account of sickness.
20964. Notwithstanding any other provision of law, any employee
who voluntarily resigns from state service during the period January
1, 1980, through June 30, 1980, shall be credited at retirement with
additional service credit pursuant to Section 20963 for sick leave
accumulated while employed by the state and assumed and maintained by
the county pursuant to the agreement with the Department of Forestry
and Fire Protection, and certified as unused to the board by the
county. County employees having accumulated sick leave credits for
both state and county service shall be deemed to draw from county
earned sick leave balances existing at the time sick leave is taken
prior to the drawing from state earned balances.
This section applies only to probationary and permanent employees
of the Department of Forestry and Fire Protection assigned to the
Orange Ranger Unit who, before the June 30, 1980, cancellation of the
local government fire protection contract between the department and
the County of Orange, voluntarily resign from state service and
accept similar employment by Orange County in a fire protection
organization.
20965. A local miscellaneous member and a local safety member,
whose effective date of retirement is within four months of
separation from employment with the employer which granted the sick
leave credit, shall be credited at his or her retirement with 0.004
year of service credit for each unused day of sick leave certified to
the board by his or her 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 and shall not
include any additional days of sick leave reported for the purpose of
increasing the member's retirement benefit. Reports of unused days
of sick leave shall be subject to audit and retirement benefits may
be adjusted where improper reporting is found.
This section shall not apply to any contracting agency nor to the
employees of a contracting agency until the agency elects to be
subject to this section by contract or by amendment to its contract
made in the manner prescribed for approval of contracts, except that
an election among the employees is not required, or, in the case of
contracts made after September 26, 1974, by express provision in the
contract making the contracting agency subject to this section.
This section shall only apply to members who retire after the
effective date of the contract amendments.
20966. For the purpose of calculating retirement allowances,
credit for service rendered on a part-time basis in each fiscal year
shall be based on the ratio that the service rendered bears:
(a) To one academic year if rendered on an academic year basis.
(b) To 10 months if rendered on a monthly basis.
(c) To 215 days if the service was rendered after June 30, 1951,
or to 250 days if the service was rendered prior to July 1, 1951, for
services rendered on a daily basis.
(d) To 1,720 hours if the service was rendered after June 30,
1951, or to 2,000 hours if the service was rendered prior to July 1,
1951, for service rendered on an hourly basis.
20967. For the purpose of calculating retirement benefits based
on part-time service, except under Section 21381, compensation
earnable shall be taken as the compensation that would have been
earnable if the employment had been on a full-time basis and the
member had worked full time.
20968. For all retirement purposes including benefit eligibility
and calculations of retirement allowances for state employees in the
personal leave program, credit for service shall be based on the
amount of service that would have been credited had the employee not
been in the personal leave program.
20969. For all retirement purposes including benefit eligibility
and calculations of retirement allowances for school employees in a
personal leave program, credit for service shall be based on the
amount of service that would have been credited had the employee not
been in a personal leave program.
This section shall not apply to any county superintendent of
schools, school district, or community college district until its
governing body adopts a resolution, in a form provided by, and under
the conditions imposed by, the board, to be subject to this section,
and a copy thereof is filed with this system.
This section shall remain in effect only until January 1, 1996,
and as of that date is repealed, unless a later enacted statute, that
is chaptered before that date, deletes or extends that date.
20970. The determining qualification for retirement and the
benefit provided under Section 21546 and calculating benefits payable
upon death before retirement other than that provided under Section
21546, a year of service shall be credited for each year during which
the member was employed throughout the year on a part-time basis and
was engaged in his or her duties the full amount of time he or she
was required by his or her employment to be so engaged. In
calculating service to determine the qualification, credit for
fractional years shall be granted to the extent of the fraction
derived by dividing the time during which the member was engaged in
his or her duties within the year, by the time he or
she was required by his or her
employment to be so engaged.
20971. For the purposes of the computations required by
subdivision (b) or (c) of Section 21532, the annual compensation
earnable by a person in partial service retirement shall be deemed
the amount of annual compensation the person would have received had
the person been employed on a full-time basis.
20972. If a person has been employed by the state or one or more
contracting agencies in any relative order and regardless of whether
the employment was before or after the effective date of the
contract, and if he or she has not been paid his or her accumulated
contributions, or having been paid those contributions, he or she
redeposits them, he or she shall receive credit for all state service
and those employers shall be liable for all state service rendered
in their respective employments and that service shall be included in
the calculation of the liability of the respective employers under
the contracts.
A member who has been employed other than concurrently by two or
more employers shall not be denied credit under this section for
service prior to the contract date because of intervening employment
with the same employer after the contract date and under
circumstances that did not qualify him or her for prior service
credit under Section 20931 or 20933.
Any member who reentered this system prior to October 1, 1957, and
who did not have a right to redeposit withdrawn contributions
because of provisions of this section existing prior to that date may
redeposit those contributions in accordance with Section 20750.
Article 4. Absences from Employment
20990. A member is absent on military service when he or she is
absent from state service by reason of service with the Armed Forces
or the Merchant Marine of the United States, or on ships operated by
or for the United States government, either during a war involving
the United States as a belligerent or in any other national emergency
or in time of peace if he or she is drafted for that service by the
United States government, and during any period of rehabilitation
afforded by the United States government other than a period of
rehabilitation for purely educational purposes, and for six months
thereafter. However, an absence on military service of a member who
has voluntarily requested or hereafter so requests or agrees to an
extension of his or her original term of enlistment, service, or tour
of duty shall be deemed terminated on January 1, 1958, or upon
expiration of six months following the date of termination of the
original term of enlistment, service, or tour of duty, whichever is
later. A member shall also be considered as having been absent on
military service if he or she served in the military service during
all or part of the period of September 16, 1940, to December 7, 1941.
For the purposes of this section a war involving the United States
as a belligerent exists: (a) whenever Congress has declared war and
peace has not been formally restored; (b) whenever the United States
is engaged in active military operations against any foreign power,
whether or not war has been formally declared; or (c) whenever the
United States is assisting the United Nations, in actions involving
the use of armed force, to maintain or restore international peace
and security.
This section does not apply to persons absent from state service
by reason of service after January 1, 1950, with the Merchant Marine
of the United States, or on ships operated by or for the United
States government, or with the Federal Bureau of Investigation, and
who have not received credit for that service prior to September 27,
1985.
20991. Any member who was absent on military service and whose
contributions are not paid for him or her by his or her employer as
provided in Section 20997, may make the contributions upon his or her
return to state service at times and in the manner prescribed by the
board. If he or she does so contribute, he or she shall receive
credit for the absence as state service in the same manner as if he
or she had not been absent from state service.
20992. Any member absent on military service or absent from state
service by reason of having been ordered by an authorized official
of this state or the United States to duties outside state service
shall be paid his or her accumulated contributions upon his or her
request. The payment terminates any election by that member to
contribute.
20993. When a member makes the contributions as provided in
Section 20991, the same contributions shall be made by the state or
contracting agency with respect to the absence that would have been
made if the member had not been absent on military service, except
that the contributions shall be determined by the employer rate of
contribution in effect when the contributions are made and may be
included in the employer rate of contribution at the next valuation.
20994. Any employee of a contracting agency who is or was absent
on military service on the effective date of the contract and who
would become or would have become a member if he or she were not
absent becomes or became a member on the effective date, with the
same status and rights of membership as if he or she were not or had
not been so absent on the effective date. Any such employee and any
other employee of a contracting agency who was absent on military
service prior to the effective date shall receive credit as prior
service for time during which he or she was absent on military
service prior to the effective date provided the employee is entitled
to receive prior service credit pursuant to Section 20933 or 20934
and he or she returned to employment of the contracting agency within
six months of the termination of his or her active service with the
armed forces under conditions other than dishonorable or within six
months after any period of rehabilitation afforded by the United
States government other than a period of rehabilitation for purely
educational purposes.
20995. Any person in the employ of the state who was or is absent
on military service on the date when he or she otherwise would have
become or would become a member, became or becomes a member on that
date, with the same status and rights of membership as if he or she
had not been or were not absent.
20996. An employee of a contracting agency who is or was absent
on military service on the effective date of the contract and who
would become or would have become a member if he or she were not
absent becomes or became a member on that effective date, with the
same status and rights of membership as if he or she were not or had
not been absent on that effective date. The employee and any other
employee of a contracting agency who was absent on military service
prior to that effective date shall receive credit as prior service
for time during which he or she was absent on military service prior
to that effective date provided that employee is entitled to receive
prior service credit pursuant to Section 20933, 20934, or 20972 and
he or she returned to employment of the contracting agency within six
months of the termination of his or her active service with the
armed forces under conditions other than dishonorable or within six
months after any period of rehabilitation afforded by the United
States government other than a period of rehabilitation for purely
educational purposes.
This section shall not apply to any contracting agency nor to the
employees of a contracting agency until the agency elects to be
subject to this section by amendment to its contract made in the
manner prescribed for the approval of contracts or in the case of
contracts made after January 1, 1989, by express provision in the
contract making the contracting agency subject to this section.
20997. Notwithstanding any other provision of this part, for each
member absent without compensation due to military service pursuant
to Section 20990, the employer shall contribute an amount equal to
the contributions that would have been made by the employer and the
employee during the absence. The employer's contribution pursuant to
this section shall be based upon the member's compensation earnable
and the contribution rates in effect at the commencement of the
absence, provided that: (1) the member returns to state service
within six months after receiving a discharge from military service
other than dishonorable; or (2) the member returns to state service
within six months after completion of any period of rehabilitation
offered by the United States government, except that for purposes of
this section, rehabilitation solely for education purposes shall not
be considered; or (3) the member is granted a leave of absence from
the state employer as of the same date the member was reinstated to
that employment from military service, provided that the member
returns to state service at the conclusion of the leave; or (4) the
member is placed on a state civil service reemployment list within
six months after receiving a discharge from military service other
than dishonorable and returns to state service upon receipt of an
offer of reemployment; or (5) the member retires from this system for
service or disability during the course of an absence from state
service for military service; or (6) the member dies during the
course of an absence from state service for military service.
Any member on leave from state service for military service who
elects to continue contributing to this system shall be entitled to a
refund of those contributions upon request.
Any member who withdrew contributions during or in contemplation
of his or her military service is entitled to the benefits of this
section irrespective of whether the contributions are redeposited.
The rate for future contributions for the member shall be based upon
the member's age at the time the member commenced a leave of absence
from state service for service in the military.
The employer's contribution pursuant to this section may be made
either in lump sum, or it may be included in its monthly contribution
as adjusted by inclusion of the amount due in the employer rate at
the valuation most near in time to the event causing the employer's
liability for those contributions. The employer's contributions
pursuant to this section shall be used solely for the purpose of
paying retirement and death benefits and shall not be paid to the
member whose contributions are refunded to him or her pursuant to
Section 20735.
This section shall not apply to persons who are granted a leave of
absence from state service for purposes of service with the Merchant
Marine of the United States, or for purposes of serving on ships
operated by or for the United States government other than ships
operated by any branch of the Armed Forces of the United States, or
for purposes of service with the Federal Bureau of Investigation,
notwithstanding Section 20990.
20998. If a member for whose absence on military service employer'
s contributions are paid or payable under Section 20997 withdraws or
has withdrawn or is or has been paid his or her accumulated
contributions after his or her return to state service from military
service, and thereafter reenters or reentered state service without
redepositing the amount of the accumulated contributions last
withdrawn by or repaid to him or her, he or she is nevertheless
entitled to be credited with the employer's contributions for his or
her absence on military service under Section 20997, and to receive
credit for service for the period of his or her absence on military
service, the same as if he or she had not withdrawn or been repaid
his or her accumulated contributions. The future contribution rate
of a member shall be based upon an age determined by deducting the
period of his or her absence on military service so credited to him
or her from his age at the time of his or her last re-entry into
state service.
20999. Time during which a member is absent from state service by
reason of injury or illness determined within one year after the end
of the absence to have arisen out of and in the course of his or her
employment shall be considered as spent in state service for the
purpose of qualification for retirement and death benefits, but not
for calculation of retirement benefits, except as he or she receives
compensation as distinguished from disability indemnity under the
Labor Code, during the absence, and then only to the extent of
compensation received.
21000. Time during which a member is absent from state service
under leave of absence because of injury or illness that arose out of
and in the course of employment, and for which he or she receives
full or part salary in lieu of disability indemnity, shall be
considered as time spent in state service for purposes of requirement
of employer and member contribution, computation of service credit
and qualification for and calculation of benefits as though he or she
had not been absent.
21001. Any person who was employed by the State of California on
or after September 16, 1940, and prior to eligibility for membership
in this system and before December 31, 1945, entered the armed forces
of the United States directly from state service without intervening
private employment, shall be eligible to receive the benefits of
this article upon payment of contributions pursuant to Section 20991
and receive credit for that service if he or she reentered state
employment within six months of discharge. The credit shall be
limited to the period of the original term of enlistment or induction
and shall not include any period of voluntary extension of
enlistment, service, or tour of duty.
21002. "Leave of absence" means time during which a state
employee was absent from state service on war relocation leave.
"War relocation leave" means the period of absence from state
service occasioned by the evacuation and relocation of a member
pursuant to orders issued by the commanding officer of the Western
Defense Command in March 1942, for the evacuation of persons of
Japanese descent from the area, where the member was in state service
90 days before or after March 5, 1942, and who later returned to
state service. War relocation leave of a member shall include the
period of time from the separation of a member from state service
until his or her return to state service or July 1, 1947, whichever
is earlier.
This section shall also be applicable to school members who were
absent from service with a school district or a county superintendent
of schools on war relocation leave.
When a school member received service credit under this section,
his or her school employer shall transmit to the retirement fund a
lump-sum amount determined by the board that is the actuarial
equivalent of the cost for that service credit as of the date of
election by the member to receive service credit under this section
less the contributions paid by the school member on account of such
service credit.
21003. "Leave of absence" also means absence from state service
because of illness that arose out of and in the course of employment
and for which the member received temporary disability benefits under
the Labor Code during the absence and did not receive full
compensation as distinguished from the disability benefits for the
period of absence.
21004. "Leave of absence" also means any time during which a
state member, other than a school member, was excused from
performance of his or her duties on approved leave for the purpose of
further education. Any member electing to receive credit for that
leave of absence shall, in addition to contributions and interest
otherwise required by this article, contribute an amount equal to (a)
the contribution that would have been made by his or her employer in
respect to him or her had he or she not been absent, assuming that
the employer rate of contribution in effect at the time of election
had been in effect during the absence and (b) the amount of interest
that would have accrued to the member and employer contributions if
they had been deposited at the beginning date of the member's first
subsequent period of service in membership until the date of
completion of payments at the interest rate in effect on the date of
election. Credit granted under this section may not exceed two
years.
This section shall be applicable to persons who are members or
became members of this system on and after January 1, 1975.
21005. "Leave of absence" also means any time during which a
member is granted an approved leave for the purpose of service with a
university; college; local, state, federal or foreign governmental
agency; or nonprofit organization, if he or she returns to employment
within the terms and conditions under which the leave was granted.
However, any member electing to receive credit for that leave of
absence shall in addition to contributions otherwise required by this
article contribute an amount equal to the contribution that would
have been made on behalf of the member had the member not been
absent, assuming that the employer rate of contribution in effect at
the time of election had been in effect during the absence. In no
event shall a member receive service credit in excess of two years
for each approved leave of absence.
21006. "Leave of absence" also means time during which an
employee of a contracting agency was absent from service with any
contracting agency on war relocation leave.
"War relocation leave" means the period of absence from service
occasioned by the evacuation and relocation of a local member
pursuant to orders issued by the commanding officer of the Western
Defense Command in March 1942, for the evacuation of persons of
Japanese descent from the area, where the local member was in service
with any contracting agency on March 5, 1942, and later returned to
such service prior to July 1, 1947.
This section shall not apply to any contracting agency nor to the
employees of a contracting agency until the agency elects to be
subject to this section by amendment to its contract made in the
manner prescribed for approval of contracts or in the case of
contracts made after January 1, 1977, by express provision in such
contract making the contracting agency subject to the provisions of
this section.
21007. A contracting agency may elect to refund all or a portion
of the employer contributions that were made by members or retired
persons in order to receive credit for war relocation leave. The
refund shall be a charge against the agency's current service reserve
account. The refund may be made only to a member or retired person
or the spouse of those persons and only during the 12 months
following the date that this section is made applicable to the
employees of a contracting agency.
Notwithstanding Section 20790, a contracting agency that elects
prior to July 1, 1979, to become subject to this section shall be an
"employer" for purposes of Chapter 9 (commencing with Section 20790).
21008. Time during which a member is excused from performance of
his or her duties, whether or not he or she is required to perform
any portion of those duties during that time, and for which he or she
receives compensation, but in an amount less than the full
compensation earnable by him or her while performing his or her
duties when not so excused, such as sabbatical leave, shall be
credited as service in the proportion that the compensation paid to
the member bears to the full compensation that would be earnable by
him or her while performing his or her duties on a full-time basis.
However, the member shall receive full-time credit for the time if
after returning to the employment from which he or she was excused
and at any time prior to retirement he or she elects to, and does,
contribute to the retirement fund the amount necessary to make the
accumulated contributions standing to his or her credit in his or her
individual account the amount it would be had he or she not been so
absent plus the contributions that would have been made by his or her
employer in respect to him or her had he or she not been so absent
plus the interest that would have accrued to the member and employer
contributions if they had been made on the date of his or her return
to employment. Payments shall be by lump sum at the time of election
or in installments beginning immediately upon the election and
subject to board rule.
21009. "Leave of absence" also means time during which a state
member is excused from the performance of a portion of his or her
duties and did not, during the absence, receive full compensation if
the partial leave of absence was formally granted by the employer for
one of the purposes specified in this article. The contributions
and interest required of the member shall be determined by the
section that defines the purpose of the leave and by the amount of
service credit the member would have received had he or she not been
absent.
21010. Unless otherwise provided in this article, a member
electing to receive service credit for time during which he or she
was absent from state service shall contribute in a lump sum or by
installments over that period and subject to such minimum payments as
may be prescribed by regulations of the board, an amount equal to
(a) the contributions he or she would have made to this system for
the period for which current service credit is granted, assuming that
the rate of contribution under his or her employer's formula at the
rate age applicable to him or her at the beginning of his or her
first subsequent period of service in membership and his or her
compensation earnable on that date had applied to him or her during
the period for which credit is granted, plus (b) those added
contributions as may be specially required under this article as a
condition for crediting a particular absence, plus (c) the interest
that would have accrued to those contributions if they had been on
deposit at the beginning date of his or her first subsequent period
of service in membership, from that date until the date of completion
of payments. The beginning date of the first subsequent period of
service for purposes of computation of contributions and interest
shall be deemed to be the end of the period of service credited for a
member who has no subsequent return to service. For a member who is
subject to Sections 21076 and 21077, the service and contribution
rate to be used for purposes of computation shall be deemed to be the
service and contribution rate that would have been used had the
member not been subject to Sections 21076 and 21077.
Service shall be credited as current or prior service, or both, as
it would be credited if the member had been in state service during
his or her absence. All
contributions of a member under this article shall be
considered to be and shall be administered as normal contributions.
21011. Notwithstanding Section 21010, for a member electing to
receive service credit for time during which he or she was absent
from state service who is subject to Sections 21076 and 21077, the
contribution rate to be used for the purposes of computation shall be
deemed to be the contribution rate that would have been used had the
member not been subject to Sections 21076 and 21077.
21012. Benefits based on service credited under this article for
an absence that are in excess of the portion paid from member
contributions shall be paid from contributions of the employer from
whose employment the member was absent.
Article 5. Credit for Public Service
21020. "Public service" for purposes of this article means the
following:
(a) The period of time an employee served the state, a school
employer, or a contracting agency prior to becoming a member, when
the service was rendered in a position in which the employee was
excluded provided one of the following conditions is met:
(1) The position has since become subject to compulsory membership
in this system.
(2) The employee was excluded because the employee was serving on
a part-time basis.
(3) The employee was excluded because the employee failed to
exercise the right to elect membership under this part.
(b) Employment in the State Emergency Relief Administration or the
State Relief Administration subsequent to March 1933, regardless of
the source of the compensation paid for that employment.
(c) Employment as an academic employee of the University of
California prior to October 1, 1963. However, any member electing to
receive credit for public service shall in addition to other
contributions required by this article contribute an amount equal to
the contributions which would have been made on his or her behalf by
the state had he or she been in membership during that employment,
assuming that the state rate of contribution in effect at the time of
election has been in effect during that employment.
(d) Employment by the state in which the person was not eligible
for membership in this system if the ineligibility was solely because
his or her compensation was paid from other than state-controlled
funds. However, time spent in work as a work relief recipient under
programs such as, but not limited to, the Works Progress
Administration, the Civil Works Administration, the Federal Emergency
Relief Administration, the National Youth Administration, and the
Civilian Conservation Corps, shall not constitute public service.
(e) Employment in a function formerly performed by a public agency
other than a contracting agency and assumed by a contracting agency
where the employees who performed those functions are or were
transferred to or employed by the contracting agency without change
in occupation or position.
(f) Civilian service as an employee or officer of an agency of the
government of the United States that performed functions the same as
or substantially similar to those performed by this state prior to
January 1, 1942, and that were transferred from the state to that
agency, including military service in any branch of the Armed Forces
of the United States performed by an individual on military leave of
absence from that federal employment, if all the following conditions
exist:
(1) Prior to performing that federal service he or she was
employed by the state.
(2) He or she was laid off from state service or would have been
laid off if he or she had not been absent in military service because
of the transfer of the functions of the state to an agency of the
United States government.
(3) Subsequent to his or her layoff from state service he or she
was employed by the United States government in an agency performing
functions the same as or substantially similar to those of the state
agency from which he or she was laid off.
(4) After his or her separation from federal service, he or she
was employed by a state agency.
(5) In lieu of subparagraphs (1), (2), and (3), the United States
government pays to the state or an agency of the state, funds equal
to contributions that would have been made by the state had the
member been in state service for the period of his or her public
service with respect to members who were not employed by the state
prior to entering that federal employment or whose state service
prior to entering that federal employment was terminated for reasons
other than the transfer of the function.
(g) Employment in a district, prior to the time the district
became a subsidiary district of a city, of a person who was employed
by the city following the reorganization to render service to the
district and who became a member in that employment.
21021. "Public service" for the employee of a student body
organization, which is not a contracting agency, of a community
college, means the period of employment prior to becoming a member of
the permanent classified service of the district pursuant to Section
76060 or 88020 of the Education Code. A member electing to receive
public service credit under this section shall contribute an amount
equal to the total employee contributions that would have been
requisitioned under Section 20617 had that service been rendered in
the employ of the community college district and the member rates and
compensation on the date of transfer had been in effect throughout
the period of service credited.
The county superintendent of schools or superintendent of schools
of an independently contracting community college district shall draw
a requisition against the funds of the community college district
for an amount equal to the total employer contribution that would
have been requisitioned under Section 20617 had that service been
rendered in the employ of the community college district and the
employer rate and member compensation on the date of transfer had
been in effect throughout the period of service credited.
The governing board may, at its discretion, establish a method of
recovering a portion of, or the total liability for, the amount so
requisitioned.
Section 21033 shall not apply to a member electing public service
credit under this section.
21022. "Public service," with respect to a local member who is a
full-time employee, also means any time on or after January 1, 1981,
but not to exceed 12 months, during which the local member is laid
off. In the event the member becomes subject to membership through
employment in another member classification during the layoff period,
any service credit accumulated through and contributions associated
with the intervening employment shall be revoked upon election by the
member to purchase public service credit as provided by this
section. The service credit provided by this section shall not
exceed one year for each layoff period and shall be provided to any
person who: (1) returns within 12 months of the date of layoff to
full-time employment under the procedures of the employer for
returning laid-off employees to work; (2) elects to purchase the
public service credit within three years of return to work or the
effective date of the contract amendment to become subject to this
section; and (3) redeposits any contributions which had been
withdrawn at the commencement of, or during, the period of the
layoff.
This section shall not apply to any contracting agency nor to the
employees of a contracting agency until the agency elects to be
subject to this section by contract or by amendment to its contract
made in the manner prescribed for approval of contracts.
21023. (a) "Public service" with respect to a state member, other
than a university member, also means the following:
(1) Time during which the member was a prisoner of war involving
the United States, plus the time, if any, during which a member was
hospitalized following his or her release from captivity for a
disabling wound, injury, or disease directly attributable to that
captivity but not to include hospitalization after the member's
honorable and permanent medical separation from the armed forces.
(2) Time between the onset of the member's disabling wound,
injury, or disease, directly attributable to service in combat with
the armed forces during a war involving the United States, and the
date of the member's honorable and permanent medical separation from
the armed forces due to the disabling condition, if the member has a
permanent disability rating in excess of 50 percent, that percentage
having been determined under applicable federal law.
(b) For the purposes of this section, a war involving the United
States exists in any of the following circumstances:
(1) Whenever Congress has declared war and peace has not been
formally restored.
(2) Whenever the United States is engaged in active military
operations against any foreign power, whether or not a war has been
formally declared.
(3) Whenever the United States is assisting the United Nations, in
actions involving the use of the armed forces, to maintain or
restore international peace and security.
(c) A member electing to receive credit for public service under
this section shall pay the contributions and interest required
pursuant to Section 21033, except that, the first subsequent period
of service in membership as a state member, other than a university
member, shall be used to determine the formula, rate, age applicable,
and the compensation earnable.
(d) This section shall apply to a member only if the member elects
to receive credit while he or she is a state member, other than a
university member, and he or she is credited with at least 10 years
of service as a state member, other than a university member, on the
date of the election.
(e) The maximum public service credit that may be received
pursuant to this section is five years.
(f) This section shall not apply to any member receiving military
retirement pay as described in Section 20896 or disability retirement
pay as described in Section 20897.
(g) Except as provided in subdivision (f), this section shall
apply to a state member, other than a university member, who leaves
or has left employment with the state, subsequently meets or has
subsequently met the conditions specified in subdivisions (a) and
(b), and thereafter returns or thereafter has returned to service as
a state member, other than a university member, is not entitled to
receive the service credit pursuant to Section 20991 or 20997.
21024. "Public service" with respect to a local member, other
than a school member, also means active service with the Armed Forces
or the Merchant Marine of the United States, including time during
any period of rehabilitation afforded by the United States government
other than a period of rehabilitation for purely educational
purposes, and for six months thereafter prior to the member's first
employment by the employer under this section in which he or she was
a member. However, any member electing to receive credit for that
public service shall in addition to contributions otherwise required
by this article contribute an amount equal to the contributions for
current and prior service that the employee and his or her employer
would have made with respect to him or her had he or she been in
membership for a period equal to the military service and assuming
that the employer's rate in effect at the time of election and his or
her compensation at the beginning of his or her first period of
service in membership with the employer under this section had been
in effect for the period. Further, the public service shall not
include military service (a) in any period for which credit is
otherwise given under this article or Article 4 (commencing with
Section 20990), (b) that is not continuous, or (c) to the extent that
total credit under this section would exceed four years.
Notwithstanding Section 21034, a member may select which of two or
more periods of continuous service entitles him or her to receive
public service under this section. This section shall apply to a
member only if he or she elects to receive credit while he or she is
in state service in the employment of one employer on or after the
date of the employer's election to be subject to this section.
This section shall not apply to any contracting agency nor to the
employees of any contracting agency until the agency elects to be
subject to this section by amendment to its contract made in the
manner prescribed for approval of contracts or in the case of
contracts made after this section takes effect, by express provision
in the contract making the contracting agency subject to this
section.
21025. "Public service" with respect to a local member also means
service rendered to a public agency if that agency or a function of
that agency is assumed by a contracting agency or a public agency
that thereafter becomes a contracting agency.
This section shall not apply to any contracting agency nor to the
employees of any contracting agency until the agency elects to be
subject to this section by contract or by amendment to its contract
made in the manner prescribed for approval of contracts.
21026. "Public service" with respect to a local member also means
service rendered to any California nonprofit corporation whose
function is to serve firefighters employed by state and local
agencies.
This section shall not apply to any contracting agency nor to the
employees of any contracting agency until the agency elects to be
subject to this section by contract or by amendment to its contract
made in the manner prescribed for approval of contracts.
21027. "Public service" with respect to a local member who
retired pursuant to this part before the effective date of the
election of his or her employer to be subject to Section 21024 also
means active service with the Armed Forces or the Merchant Marine of
the United States, including time during any period of rehabilitation
afforded by the United States government other than a period of
rehabilitation for purely educational purposes, and for six months
thereafter prior to the person's first employment by the employer
under this section in which he or she was a member. Any retired
person electing to receive credit for that public service shall, in
addition to contributions otherwise required by this article,
contribute an amount equal to the contributions for current and prior
service that the employee and his or her employer would have made
with respect to him or her had he or she been in membership for a
period equal to the military service and assuming that the employer's
rate in effect at the time of election and his or her compensation
at the beginning of his or her first period of service in membership
with the employer under this section had been in effect for that
period.
The public service shall not include military service (a) in any
period for which credit is otherwise given under this article or
Article 4 (commencing with Section 20990), or (b) that is not
continuous, or (c) to the extent that total credit under this section
would exceed four years.
Notwithstanding Section 21034, a retired person may select which
of two or more periods of continuous service entitles him or her to
receive public service under this section.
This section shall apply to a retired person only if he or she
retired immediately following service as a local member, pursuant to
this part, and before the effective date of the election by his or
her employer to be subject to Section 21024.
The retirement allowance of a retired person who elects to receive
service credit pursuant to this section shall be increased only with
respect to the allowance payable on and after the effective date of
the election.
This section shall not apply to any contracting agency nor to the
employees of any contracting agency until the agency has elected to
be subject to Section 21024 and elects to be subject to this section
by amendment to its contract made in the manner prescribed for
approval of contracts or, in the case of contacts made after January
1, 1988, by express provision in the contract making the contracting
agency subject to both Section 21024 and this section.
21028. "Public service" also means service in temporary,
seasonal, limited term, oncall, emergency, intermittent, substitute,
or other irregular employment in which a person is excluded from
membership.
21029. "Public service" with respect to a state member or a
school member or with respect to a retired former state employee or a
retired former school employee, who retired on or after December 31,
1981, also means active service, prior to entering this system as a
state member or as a school member, of not less than one year in the
Armed Forces of the United States, or, active service, prior to
entering this system as a state or school member, of not less than
one year in the Merchant Marine of the United States prior to January
1, 1950. Public service credit shall not be granted if the service
described above terminated with a discharge under dishonorable
conditions. The public service credit to be granted for that service
shall be on the basis of one year of credit for each five years of
credited state service, but shall not exceed a total of four years of
public service credit regardless of the number of years of either
that service or subsequent state service. A state member or a school
member or a retired former state employee or a retired former school
employee electing to receive a credit for that public service shall
have been credited with at least 10 years of state service on the
date of election or the date of retirement.
An election by a state member or a school member with respect to
public service under this section may be made only while the member
is in state, university, or school employment, and a retired former
employee shall have retired immediately following service as a state
member or as a school member. The retirement allowance of a retired
former state employee or a retired former school employee, who elects
to receive public service credit pursuant to this section shall be
increased only with respect to the allowance payable on and after the
date of election. For the purposes of this section, a member as
described in subdivision (d) of Section 20776, shall also mean a
former state employee or a former school employee, who retired on or
after December 31, 1981.
A member or retired former employee who elects to become subject
to this section shall pay all reasonable administrative costs and
contributions, sufficient to cover the total employer and employee
cost plus interest of the military service credit, at rates to be
determined by the board. The amount shall be contributed in lump sum
or by installments over a period and subject to minimum payments as
may be prescribed by regulations of the board. Payments for
administrative costs shall be credited to the current appropriation
for support of the board and available for expenditures by the board
to fund positions deemed necessary by the board to implement this
section.
Notwithstanding Section 21072, a member or a retired former
employee whose military service credited pursuant to this section is
subject to Section 21076 shall pay, in addition to all reasonable
administrative costs, contributions, sufficient to cover the total
employer cost plus interest of the military service credit, at rates
to be determined by the board.
Contributions paid by a person subject to Section 21076 for
service under this section shall be credited to the appropriate state
employer account.
The board has no duty to locate or notify any eligible former
member who is currently retired or to provide the name or address of
any such retired person, agency, or entity for the purpose of
notifying those persons.
21030. "Public service" for purposes of this article also means
employment under a program sponsored by, and financed at least in
part by, the Comprehensive Employment and Training Act of 1973, as
amended. Notwithstanding any other provision of law, a member
electing to receive credit for public service under this section
shall contribute in a lump sum, or by installment payments over a
period and subject to minimum payments as may be prescribed by
regulation, an amount equal to the contributions that both the
employee and the employer would have been required to make had the
employee been a member during that period of service, assuming the
rate of compensation in effect at the beginning of the employee's
first period of service in membership subsequent to that service, and
contribution rates applicable to that public service on the date of
election, plus interest on the contributions from the first date of
membership subsequent to that service until the date of completion of
payments at the annual interest rate in effect on the date of
election.
Benefits arising from service credited to a member under this
section shall become a liability of the employer for which the
service was rendered.
21031. "Public service" also means employment by a contracting
agency before the effective date of its contract with the board, and
is limited to that portion of the service that the agency does not
provide in its contract for inclusion as prior service.
Notwithstanding any other provision of this article, an election
to become subject to this section by a member shall require payment
of contributions equal to 200 percent of the normal contributions
that would have been payable had he or she been a member during that
service based upon the contribution rate applicable and the
compensation rate payable to the member at the time of the election
or at the last period of membership in current service.
If the contracting agency subsequently amends its contract to
include a greater percentage of final compensation as prior service,
the electing member shall be refunded that portion of his or her
contributions made under this section as represents the additional
prior service percentage contracted for by the agency plus interest
at the crediting rate.
If the agency pays all or a portion of the normal contributions
required to be paid by a member, the contributions required under
this section shall be based upon the normal contribution rate that
would be applicable to that member if the agency were not paying any
normal contributions under Section 20690 or 20691.
This section shall not apply to any contracting agency until the
agency elects to be subject to the provision of this section by
amendment to its contract made in the manner prescribed for approval
of contracts, except an election among the employees is not required,
or, in the case of contracts made after March 1, 1982, by express
provision in the contract making
the contracting agency subject to the provisions of this
section.
21032. A member may elect at any time prior to retirement, in
accordance with regulations of the board, to receive credit for
public service, under any of the definitions in this article, in
addition to his or her current and prior service credit. An election
shall be effective only if accompanied by a lump-sum payment of the
contributions and interest required for the credit or by
authorization for immediate institution of payroll deduction of
installment payment of the contributions and interest. The right of
election is subject to Sections 20894 and 20961, and shall be
ineffective with respect to any time or employment for which the
member subsequently becomes entitled to or eligible to elect to
receive service credit in another system supported in whole or in
part from public funds, in which case accumulated contributions on
deposit for the period of service credit shall be paid to the member.
21033. A member electing to receive credit for public service
shall contribute in a lump sum or by installment payments over that
period and subject to minimum payments as may be prescribed by
regulations of the board an amount equal to (a) the contributions he
or she would have made to this system for the period for which
current service credit is granted, assuming that the rate of
contribution under his or her employer's formula at the rate age
applicable to him or her at the beginning of his or her first
subsequent period of service in membership and his or her
compensation earnable on that date had applied to him or her during
the period for which credit is granted, plus (b) the added
contribution that may be specially required under this article as a
condition for crediting particular public service, plus (c) the
interest which would have accrued to those contributions if they had
been deposited at the beginning date of his or her first subsequent
period of service in membership, from that date until the date of
completion of payments, and (d) if he or she elects to contribute in
other than one sum, interest on the unpaid balance of the amount
payable to the retirement fund, beginning on the date of the election
to receive credit. The beginning date of the first subsequent
period of service for purposes of computation of contribution and
interest shall be deemed to be the end of the period of service
credited for a member who has no subsequent return to service. For a
member who is subject to Sections 21076 and 21077, the service and
contribution rate to be used for purposes of computation shall be
deemed to be the service and contribution rate that would have been
used had the member not been subject to Sections 21076 and 21077.
All contributions of a member under this article shall be
considered to be and shall be administered as normal contributions.
21034. Public service may be credited as current or prior
service, or both, as it would be credited if the member had been in
state service during his or her public service. Credit shall not be
granted for public service which would be credited as prior service
unless the member has contributed for all other "public service" for
which he or she is entitled to elect to receive credit as current
service with the employer where the prior service is to be credited.
Benefits based on credited public service shall be computed
according to the formula determining the member's contribution for
that service credit. "Public service," as defined in subdivisions
(a), (b), and (c) of Section 21020 to a member who at membership
became subject to a reduced or modified retirement allowance formula
because of coordination with the federal system shall be subject to
that modified formula to the extent that the service was rendered to
any contracting agency in which that modified formula applies after
the effective date of coverage under the federal system of members in
the employ of that agency.
21035. Benefits based on service credited under this article in
excess of the portion paid from member contributions shall be paid
from the contributions of the employer in whose employment the
service was rendered or the right to receive the service credit for
an employment constituting public service was acquired, whichever the
case may be.
21036. Service credited on December 1, 1969, or under a member's
election received on or before such effective date, in addition to a
member's current and prior service, under this part as it read on
November 30, 1969, shall be retained subject to the terms and
conditions of the provision under which it was credited.
21037. Notwithstanding any other provision of law, a local member
who has elected to receive credit for service by contributing in
installments and who has been retired for industrial disability
between January 1, 1979, and January 1, 1984, shall be refunded
without interest all lump-sum payments made within 30 days of
retirement on account of the elective service. Other local members
may cancel the election prospectively from the effective date of
their retirement for industrial disability.
This section shall not apply to any contracting agency nor to the
employees of any contracting agency unless and until the agency
elects to be subject to this section by amendment to its contract
made in the manner prescribed for approval of contracts, except that
an election among the employees is not required or, in the case of
contracts made after January 1, 1984, by express provision in the
contract making the contracting agency subject to this section. The
amendment, or contract provision, may provide that this section
applies with respect to all of the agency's active and retired local
members who retire, or retired, directly from service for such agency
without intervening employment.
21038. This section shall apply only to a city with a population
in excess of 300,000 in a county of the eighth class, as defined by
Sections 28020 and 28029, as amended by Chapter 1204 of the Statutes
of 1971, which, prior to June 30, 1991, amends its contract to
provide for the transfer of all or part of the safety members of an
existing local retirement system to this system. Only those
transferred members who had less than 11 years of service credit on
the date of transfer shall be entitled under Section 21037 to cancel
prospectively an election to receive credit for service.
CHAPTER 12. RETIREMENT FROM EMPLOYMENT
Article 1. Voluntary Service Retirement
21060. A member shall be retired for service upon his or her
written application to the board if he or she has attained age 50 and
is credited with five years of state service, except as provided in
Sections 21061, 21062, and 21074.
21061. (a) A local safety member, other than one subject to
Section 21362, shall be retired for service upon the member's written
application to the board if the member has attained age 55, and is
credited with five years of state service.
(b) Subdivision (a) does not apply to the employees of any
contracting agency having a contract with the board made prior to
September 5, 1945, which contract specifies an age greater than age
55 as the minimum age for voluntary retirement for service for local
safety members, until the agency elects to make subdivision (a)
applicable to its employees, by amendment to its contract made in the
manner prescribed for the approval of contracts, except that an
election among the employees is not required.
Until the contracting agency elects to make subdivision (a)
applicable to its employees, a local safety member employed by the
contracting agency shall be retired for service upon the member's
written application to the board if the member has attained the
minimum age for voluntary retirement specified in the contract
between his or her employer and the board, and is credited with five
years of state service.
21062. Notwithstanding Section 21061, a local safety member to
whom Section 21061 applies shall be retired for service upon his or
her written application to the board if he or she has attained age 50
and is credited with five years of state service.
However, if the member retires before attaining age 55, his or her
prior and current service pensions shall be reduced to that amount
that the value of the pensions as deferred to that minimum age will
purchase at the actual age of retirement on the basis of the
mortality tables and actuarial interest rate in effect with respect
to those members.
Article 2. Second Tier Retirement--State
21070. (a) Effective January 1, 1985, there shall be an
alternative level of benefits available to the following state
miscellaneous members: (1) members who are excluded from the
definition of state employee in subdivision (c) of Section 3513; (2)
members employed by the executive branch of government who are not
members of the civil service; and (3) members in state bargaining
units for which a memorandum of understanding has been agreed to by
the state employer and the recognized employee organization to become
subject to this section. Effective September 1, 1986, this section
shall apply to members employed by the state as provided for in
Article VI of the California Constitution. The board shall provide
the affected members a one-month election period commencing on August
1, 1986. This section does not apply to state miscellaneous members
employed by the California State University or the University of
California. This section shall not apply to any employee described
by Section 20324 unless and until the employer, as defined in Section
20902, adopts a resolution approving that application.
(b) Effective September 1, 1986, there shall be an alternate level
of benefits available to the following state industrial members:
(1) members in state bargaining units for which a memorandum of
understanding has been agreed to by the state employer and the
recognized employee organization to become subject to this section;
(2) members who are excluded from the definition of state employees
in subdivision (c) of Section 3513; and (3) members employed by the
executive branch of government who are not members of the civil
service. The board shall provide the affected members a one-month
election period commencing on August 1, 1986.
(c) Members eligible to participate in the alternative level of
benefits, referred to in this part as the Second Tier, may make an
irrevocable election during the period from November 1, 1988, through
October 31, 1989, to: (1) become subject to the Second Tier
benefits provided for in Section 21076 for all past state
miscellaneous and state industrial service and all future state
miscellaneous and state industrial service not excluded by this
section; (2) become subject to the Second Tier benefits provided for
in Section 21077 for state miscellaneous and state industrial service
not excluded by this section rendered on and after the effective
date of the election to be subject to the Second Tier. Any election
by a member to be subject to Section 21076 or 21077 shall also be
signed by the spouse of the member and both signatures shall be
notarized; (3) become subject to the First Tier retirement formula
prescribed by Section 21353 for state miscellaneous and state
industrial service rendered on or after the effective date of the
election, provided that the member had previously elected coverage
pursuant to Section 21076 or 21077 and makes the contributions
specified in Section 20677; or (4) become subject to the First Tier
retirement formula prescribed by Section 21353 for all past and
future state miscellaneous and state industrial service, provided
that the member had previously elected coverage pursuant to Section
21076 or 21077 and the member makes the contributions specified in
Sections 20677 and 21073. The right of eligible members to elect
coverage under the retirement formula of their choice shall apply
solely during the above-prescribed one-year period, subject to
conditions to be established and communicated by the board.
Thereafter, the board shall provide a 30-day period every five
years for eligible members to make an irrevocable election to be
subject to the Second Tier benefits provided for in Section 21076 or
21077. Eligible members who previously elected Section 21077 may
make an irrevocable election to become subject to Section 21076 for
all past state miscellaneous and state industrial service during this
election period. The first election period shall be held five years
from the ending date of the one-year election period specified in
this subdivision.
The effective date of any election filed with the board shall be
the first of the month following the date the election is received in
the system, provided the election meets the conditions set by the
board. Any election filed with the board under this subdivision
shall also be signed by the spouse of the member and both signatures
shall be notarized.
(d) Persons who become state miscellaneous or state industrial
members described in this section or who become such members under
Article 3 (commencing with Section 20320) of Chapter 3 of this part
on or after the Second Tier effective date applicable to the member,
shall be subject to Section 21077 unless an election is filed with
the board to be subject to Section 21353 and the member makes the
contributions specified in Section 20677. The appointing authority
shall provide the member with the election form and the member shall
exercise the election within one year of becoming a member. The
effective date of the election shall be the date on which the member
became a state miscellaneous or state industrial member.
(e) A state miscellaneous or state industrial member who, on or
after the effective date of an election to be subject to Section
21076 or 21077, ceases to be a member pursuant to Section 20340 or
21075 shall, upon again becoming a state miscellaneous or state
industrial member, be subject to Section 21076 or 21077 in accordance
with his or her previous irrevocable election. This subdivision
does not apply to persons who return to membership as employees of
the California State University.
Except as otherwise provided in this part, a state miscellaneous
or state industrial member subject to Section 21076 or 21077 is
subject to all other provisions applicable to state miscellaneous
members except those provisions that provide for the payment of an
annuity based on contributions. Notwithstanding any other provision
of this part, member contributions are not required for any service
credit that is subject to Section 21076.
(f) The board shall report to the Governor, the Legislature, and
the Department of Personnel Administration on the savings that are
the result of the implementation of the Second Tier retirement plan
for state miscellaneous and state industrial members. The report
shall first be submitted in April 1986, and annually in April of
every year thereafter until April 1994.
21071. (a) It is the intent of the Legislature that the
Department of Personnel Administration, in conjunction with the
recognized state employee organizations, develop alternatives to the
Second Tier retirement plan by June 30, 1992. The alternative plan
may include enhanced benefits or provide benefits under a defined
contribution program. However, the state employer's contribution to
the alternative plan shall not be greater than the state's
contribution rate to the current Second Tier. At the time that an
alternative plan is agreed to and implemented, employees who were
placed in the Second Tier shall be given an opportunity to elect
coverage in the new alternative plan. In the event no alternative
plan is implemented by June 30, 1992, employees shall remain in the
Second Tier.
(b) Notwithstanding any other provision of this article, except as
provided in subdivision (c), persons who first become state
miscellaneous or state industrial members of the system on or after
July 1, 1991, and who are either: (1) excluded from the definition
of state employee in subdivision (c) of Section 3513; (2) employed by
the executive branch of government who are not members of the civil
service; or (3) included in the definition of state employee in
subdivision (c) of Section 3513 shall become subject to Section
21076.
(c) Any person who was a member on or before June 30, 1991,
eligible to elect membership on or before June 30, 1991, or who was
employed in any position on or before June 30, 1991, that would lead
to membership as a state member, as defined in Section 20370, and who
thereafter enters employment subject to Section 21076 shall be
granted the rights provided in subdivision (d) of Section 21070,
unless the person had earlier made an irrevocable election to be
subject to Section 21076 or 21077. The one-year period in which to
make the election provided in subdivision (d) of Section 21070 for
any member who became a state member prior to January 1, 1994, shall
commence with the mailing of a notice by the system to the member, of
his or her election right. The effective date of the election shall
be the date on which the member became a state miscellaneous or
state industrial member. The member shall be obligated to make the
contributions specified in Section 20677.
(d) This section shall not apply to state miscellaneous members
employed by the California State University or employees described in
Section 20324.
21072. (a) A member who elects to be subject to Section 21076
shall be credited at no cost with all creditable previous state
miscellaneous or state industrial service after the member is
credited with one year of service under Section 21076. A member who
was subject to Section 21076, who terminates membership, and who
subsequently returns to state service shall be granted, at no cost,
all of the service credit earned as a result of the election, after
the member is credited with one year of service following return to
state service. The one-year requirement shall be waived for a member
who meets the service credit requirements for disability retirement
specified in Section 21150 with the past creditable service.
(b) A member who elects to be subject to Section 21077, who
terminates membership and who subsequently returns to service shall
be credited, at no cost, with the service earned as a result of the
election, after the member is credited with one year of service
following return to state service. The one-year requirement shall be
waived for a member who meets the service credit requirements for
disability retirement specified in Section 21150 with the past
creditable service.
(c) A member who is entitled to service credit under this section
shall apply for and identify time periods for that service to the
board.
21073. (a) A member who elects to receive service credit under
Section 21353, as authorized by subdivision (c) of Section 21070, for
time during which he or she was subject to Section 21077, shall
contribute in a lump sum or by installments, over that period and
subject to minimum payments as may be prescribed by regulations of
the board, an amount equal to the contributions he or she would have
made had he or she not been subject to Section 21077, plus an amount
equal to the interest, to the date of completion of payments, that
would have been credited to those contributions.
(b) A member who elects to receive service credit under Section
21353, as authorized by subdivision (c) of Section 21070, for time
during which he or she received service credit under Section 21076,
shall deposit in the retirement fund, subject to the regulations of
the board, an amount equal to (1) any accumulated contributions that
he or she withdrew pursuant to Section 20737, plus an amount equal to
the interest, to the date of completion of payments, that would have
been credited to those contributions, and (2) an amount equal to the
contributions he or she would have made had he or she not been
subject to Section 21076, plus an amount equal to the interest, to
the date of completion of payments, that would have been credited to
those contributions.
Upon electing to be subject to Section 21353, a member shall
return to coverage under that formula without credit for any previous
creditable state miscellaneous or industrial service credited at no
cost pursuant to Section 21072, unless the member elects to redeposit
or to purchase the service as otherwise required in this part, or
the member has elected to be subject to Section 21353 solely for
service rendered on or after the effective date of the election, as
permitted during the one-year period specified in subdivision (c) of
Section 21070.
21074. (a) A state member who became subject to the Second Tier
upon election or upon membership in the Second Tier on or after
January 1, 1985, shall be retired for service upon his or her written
application to the board if he or she has attained age 55 and is
credited with 10 years of state service.
(b) A state member who elected coverage under Section 21353 for
service rendered on or after the effective date of the election, as
authorized by subdivision (c) of Section 21070 during the period
between November 1, 1988, and October 31, 1989, and who would
otherwise be subject to Section 21076 or 21077, shall be retired for
service upon his or her written application to the board if he or she
has attained age 50 and is credited with five years of state
service.
(c) Notwithstanding subdivision (a) or (b), a state member in the
Second Tier who is credited with five years of state service prior to
January 1, 1985, may retire with less than 10 years of state service
upon his or her written application to the board if he or she has
attained age 50.
21075. Notwithstanding Section 20340, a person who is subject to
Section 21076 or Section 21077 ceases to be a member if he or she has
less than 10 years of service credit at the time of termination of
service, except a member who had five years of credited service prior
to January 1, 1985.
21076. The service retirement allowance for a state miscellaneous
or state industrial member who has elected the benefits of this
section is a pension equal to the fraction of one-hundredth of the
member's final compensation set forth opposite the member's age at
retirement, taken to the preceding completed quarter year in the
following table, multiplied by the member's number of years of state
miscellaneous service:
Age at Retirement Fraction
50 .5000
50 1/4 .5125
50 1/2 .5250
50 3/4 .5375
51 .5500
51 1/4 .5625
51 1/2 .5750
51 3/4 .5875
52 .6000
52 1/4 .6125
52 1/2 .6250
52 3/4 .6375
53 .6500
53 1/4 .6625
53 1/2 .6750
53 3/4 .6875
54 .7000
54 1/4 .7125
54 1/2 .7250
54 3/4 .7375
55 .7500
55 1/4 .7625
55 1/2 .7750
55 3/4 .7875
56 .8000
56 1/4 .8125
56 1/2 .8250
56 3/4 .8375
57 .8500
57 1/4 .8625
57 1/2 .8750
57 3/4 .8875
58 .9000
58 1/4 .9125
58 1/2 .9250
58 3/4 .9375
59 .9500
59 1/4 .9625
59 1/2 .9750
59 3/4 .9875
60 1.0000
60 1/4 1.0125
60 1/2 1.0250
60 3/4 1.0375
61 1.0500
61 1/4 1.0625
61 1/2 1.0750
61 3/4 1.0875
62 1.1000
62 1/4 1.1125
62 1/2 1.1250
62 3/4 1.1375
63 1.1500
63 1/4 1.1625
63 1/2 1.1750
63 3/4 1.1875
64 1.2000
64 1/4 1.2125
64 1/2 1.2250
64 3/4 1.2375
65 1.2500
21077. The service retirement allowance for a state miscellaneous
or state industrial member who elects to be subject to this section
shall be the sum of the allowance for service rendered subsequent to
the effective date of the election, computed pursuant to Section
21076, added to the allowance for service rendered as a state
miscellaneous or state industrial member prior to the effective date
of the election, computed pursuant to Section 21353.
Article 3. Second Tier Retirement--Contracting Agencies
21090. (a) The governing body of a contracting agency may
establish a two-tiered retirement system developed by the board
pursuant to subdivision (b).
(b) The board shall develop a two-tiered retirement system plan
for contracting agencies by January 1, 1983.
(c) It is the intent of the Legislature to make a two-tiered
retirement system a matter for bargaining pursuant to provisions of
law relating to employer-employee relations.
21091. (a) Effective January 1, 1994, contracting agencies as
defined in Section 20022, some or all of whose employees are
miscellaneous members included in the federal system, may amend their
contracts with the board to provide an alternate level of benefits
pursuant to this article. The alternate level of benefits shall be
provided to all local miscellaneous members of a contracting agency
whose services are also covered under the federal system who first
become members of this system on and after the contract amendment
effective date and shall be made available by election to eligible
members also covered under the federal system who were employees of
the contracting agency prior to the effective date of the employer's
contract amendment as specified in Section 21099.
(b) This article shall not apply to any agency with a memorandum
of understanding that precludes any changes in the retirement
coverage of the employee bargaining unit subject to that agreement.
21092. The normal rate of contribution for a local miscellaneous
member subject to this article shall be 2 percent of compensation
paid the member. A contracting agency may pay all or a portion of
the member's normal contributions, pursuant to Section 20691.
21093. (a) Except as provided in subdivision (b), a local
miscellaneous member subject to this article may be retired for
service upon his or her written application to the board if he or she
has attained age 55 and is credited with five years of service.
(b) Any person who was a member of this system prior to the
effective date of the employer's contract amendment to be subject to
this article, and who elects to become subject to this article, may
be retired for service upon his or her written application to the
board if he or she has attained age 50 and is credited with five
years of combined service.
21094. (a) The service retirement allowance for a local
miscellaneous member subject to this article shall be calculated in
accordance with Section 21100.
(b) "Final compensation" for purposes of determining any benefits
payable under this part for any local miscellaneous member service
subject to this article shall be as defined by Section 20037 and
shall not be reduced by any fraction or amount due to the inclusion
in the federal system.
21095. (a) Participation in the plan afforded by this article
shall be made available to any employee who was included in the
federal system and who was a member of this system prior to the
effective date of the employer's contract amendment to be subject to
this article. The election shall be irrevocable, shall be effective
on the first of the pay period following the member's election and
shall apply to all future service rendered by the member with that
agency. Each contracting agency shall ensure each eligible member
receives sufficient information to permit an informed election, is
counseled regarding the benefits provided by this article, and
receives an election document. The election document shall be filed
with the contracting agency, and the contracting agency shall report
the member's irrevocable election to the board.
(b) A member subject to this article shall be subject to all other
provisions of this part. However, in the event of a conflict, this
article shall supersede and prevail over other provisions contained
in this part.
21096. The employer contribution rate of a contracting agency
subject to this article shall be determined by the board as otherwise
provided by this part.
21097. (a) The monthly allowances payable to members based on
service subject to this article shall be annually adjusted pursuant
to Section 21329.
(b) The percentage of the amount of his or her retirement
allowance as it was at his or her death payable based on service
credited to him or her as a member subject to Section 21624, for a
member subject to this article, shall be 25 percent.
21098. The disability retirement pension for local miscellaneous
service subject to this article shall be one of the following:
(a) Ninety percent of the factor applicable at age 65 as set forth
in Section 21094 times final compensation multiplied by the number
of years of service credited to him or her.
(b) If the disability retirement allowance computed under
subdivision (a) does not exceed one-third of his or her final
compensation, 90 percent of the benefit that would be payable to the
member had the member continued in employment until age 65 but in
that case the retirement allowance shall not exceed one-third of the
final compensation. This subdivision is not applicable to members
who are not entitled, at the time of retirement, to be credited with
at least 10 years of service.
(c) If the disability retirement allowance is derived from this
section and Section 21423, and would otherwise exceed the maximums
provided by these sections, the pension payable with respect to each
section shall be reduced in the same proportion as the allowance
computed as though there was no limit, so that the total of the
pensions shall equal the maximum allowed.
21099. This article shall not apply to a contracting agency nor
its employees until, first, it is agreed to in a written memorandum
of understanding entered into by an employer and representatives of
employees and, second, the contracting agency elects to be subject to
it by amendment to its contract made in the manner prescribed for
approval of contracts or in the case of a new contract, by express
provision of the contract. The operative date of this article with
respect to a local miscellaneous member shall be the effective date
of the amendment to his or her employer's contract electing to be
subject to this article.
21100. (a) The service retirement allowance for a local
miscellaneous member who is subject to this article is a pension
derived from the contributions of the employer sufficient, when added
to the service retirement annuity that is derived from the
accumulated normal contributions of the member at the date of
retirement, to equal the fraction of one-hundredth of the member's
final compensation set forth opposite the member's age at retirement,
taken to the preceding completed quarter year in the following
table, multiplied by the member's number of years of local
miscellaneous service subject to this article:
Age at Retirement Fraction
50 .5000
50 1/4 .5167
50 1/2 .5334
50 3/4 .5500
51 .5667
51 1/4 .5834
51 1/2 .6000
51 3/4 .6167
52 .6334
52 1/4 .6500
52 1/2 .6667
52 3/4 .6834
53 .7000
53 1/4 .7167
53 1/2 .7334
53 3/4 .7500
54 .7667
54 1/4 .7834
54 1/2 .8000
54 3/4 .8167
55 .8334
55 1/4 .8500
55 1/2 .8667
55 3/4 .8834
56 .9000
56 1/4 .9167
56 1/2 .9334
56 3/4 .9500
57 .9667
57 1/4 .9834
57 1/2 1.0000
57 3/4 1.0167
58 1.0334
58 1/4 1.0500
58 1/2 1.0667
58 3/4 1.0834
59 1.1000
59 1/4 1.1167
59 1/2 1.1334
59 3/4 1.1500
60 1.1667
60 1/4 1.1834
60 1/2 1.2000
60 3/4 1.2167
61 1.2334
61 1/4 1.2500
61 1/2 1.2667
61 3/4 1.2834
62 1.3000
62 1/4 1.3167
62 1/2 1.3334
62 3/4 1.3500
63 1.3667
63 1/4 1.3834
63 1/2 1.4000
63 3/4 1.4167
64 1.4334
64 1/4 1.4500
64 1/2 1.4667
64 3/4 1.4834
65 1.5000
(b) The service retirement allowance for a local miscellaneous
member who, pursuant to Section 21095, elects to be subject to this
article shall be the sum of the allowance for service rendered
subsequent to the effective date of the election computed pursuant to
subdivision (a) of this section, added to the allowance for service
rendered as a local miscellaneous member prior to the effective date
of the election, computed pursuant to the formula specified in the
employer's contract with the board.
Article 4. Reduced Worktime for Partial Service Retirement
21110. It is the intent of the Legislature that reduced worktime
for partial service retirement may, at the discretion of a public
agency employer, be made available to public agency employees
eligible pursuant to Section 21111 who do not desire to work standard
working hours on a full-time basis.
21111. Any public agency employee, who is a local member of this
system working standard hours on a full-time basis, and who is
eligible to retire pursuant to Section 21118, may elect to
participate in reduced worktime for partial service retirement
pursuant to Sections 21110 through 21115.
21112. "Reduced worktime for partial service retirement" means
any arrangement of worktime agreeable to both the public agency
employer and the employee that aggregates no less, on a monthly
basis, than a 20 percent reduction nor more than a 60 percent
reduction from what would in that position be considered full-time
employment, combined with the concurrent payment of proportionally
reduced compensation and proportionally reduced retirement benefits.
21113. (a) A public agency employee who voluntarily reduces his
or her worktime for partial service retirement pursuant to Sections
21110 through 21115, and who subsequently returns to a full-time work
schedule pursuant to the policy of the public agency employer, shall
be ineligible for five years thereafter to again participate
pursuant to those sections. The public agency employer may require a
participating employee to return to full-time employment only in the
event of an emergency requiring his or her full-time service.
(b) A public agency employee who is participating pursuant to
Sections 21110 through 21115 in reduced worktime for partial service
retirement may: (1) elect only once in each fiscal year to further
reduce his or her worktime; (2) elect only once in five years to
increase his or her worktime to another less than full-time schedule.
21114. All persons employed in reduced worktime positions for
partial service retirement pursuant to Sections 21110 through 21115
shall receive proportionally reduced compensation and, on a pro rata
basis, all benefits customarily available to full-time employees of a
public agency in similar classes or positions in accordance with the
personnel policies of the public agency employer or pursuant to
provisions of a memorandum of understanding reached pursuant to
Chapter 10 (commencing with Section 3500) of Division 4 of Title 1.
21115. A public agency employer may elect to make Sections 21110
through 21115 applicable to the agency and if it does so, the public
agency employer shall establish other personnel policies or
guidelines required for the administration of the reduced worktime
for partial retirement program within the agency.
21116. Except as otherwise expressly provided, and
notwithstanding Section 20060, state miscellaneous members
participating in reduced worktime for partial service retirement
pursuant to Article 1.7 (commencing with Section 19996.30) of Chapter
7 of Part 2.6 or local members participating in reduced worktime for
partial service retirement pursuant to Sections 21110 through 21115,
shall be considered members and shall not be considered retired,
until they elect to become fully retired.
21117. A state miscellaneous member or industrial member, other
than a university member, shall be partially retired for service upon
his or her written application to the board if he or she has elected
to participate in partial service retirement pursuant to Article 1.7
(commencing with Section 19996.30) of Chapter 7 of Part 2.6,
provided he or she is credited with (a) 20 years of state service and
is either in (1) the First Tier plan with an attained age of 50
years or (2) the Second Tier plan with an attained age of 55 years or
(b) the necessary years of service with the necessary attained age
for retirement under the First Tier or the Second Tier and the sum of
his or her age, when added to his or her service, equals or exceeds
65 years.
21118. A local member shall be partially retired for service upon
his or her written application to the board if he or she has elected
to participate in partial service retirement pursuant to Sections
21110 through 21115, provided, he or she is credited with (a) 20
years of state service with an attained age of 50 years or (b) the
necessary years of service with the necessary attained age for
retirement and the sum of his or her age, when added to his or her
service, equals or exceeds 65 years.
This section shall not apply to a contracting agency or its
employees until the contracting agency elects to be subject to it by
amendment to its contract made in a manner prescribed for approval of
contracts or in the case of a new contract, by express provision of
the contract. The operative date of this section with respect to a
local member shall be the effective date of the amendment to his or
her employer's contract electing to be subject to this section.
21119. Article 3 (commencing with Section 21310) of Chapter 13,
relating to cost-of-living adjustments, shall not apply to an
employee who is participating in reduced worktime for partial service
retirement.
21120. Section 21546 shall apply to any member while in state
service in partial service retirement.
Article 5. Compulsory Retirement
21130. Every patrol member subject to Section 21362 shall be
retired on the first day of the calendar month succeeding that in
which he or she attains age 60.
Any patrol member over the age of 60 on December 1, 1968 shall be
retired on January 1, 1969.
21131. Notwithstanding any other provision of law, a local
contracting agency may amend its contract to fix a mandatory
retirement age for local safety members attaining the age of 60 when
the agency also has established that the age of a safety member is a
bona fide occupational qualification reasonably necessary to the
normal operation of the principal services provided by safety
members.
21132. Every state safety member shall be retired on the first
day of the calendar month succeeding that in which he or she attains
age 65. Every member who has attained age 65 when he or she becomes
a state safety member shall be retired on the first day of the
following month.
This section shall not apply to members employed as physicians,
dentists, or podiatrists.
Article 6. Disability Retirement
21150. Any member incapacitated for the performance of duty shall
be retired for disability pursuant to this chapter if he or she is
credited with five years of state service, regardless of age, unless
the person has elected to become subject to Section 21076 or Section
21077.
Any member subject to Section 21076 or Section 21077 who becomes
incapacitated for the performance of duty shall be retired for
disability pursuant to this chapter if he or she is credited with 10
years of state service, regardless of age, except that a member may
retire for disability if he or she had five years of state service
prior to January 1, 1985.
21151. (a) Any patrol, state safety, state industrial, state
peace officer/firefighter, or local safety member incapacitated for
the performance of duty as the result of an industrial disability
shall be retired for disability, pursuant to this chapter, regardless
of age or amount of service.
(b) This section also applies to local miscellaneous members if
the contracting agency employing those members elects to be subject
to this section by amendment to its contract.
(c) This section also applies to state miscellaneous members
employed by the Department of Justice who perform the duties now
performed in positions with the class title of Criminalist, Ranges A,
B, and C (Class Code 8466), or Senior Criminalist (Class Code 8478),
or Criminalist Supervisor (Class Code 8477), or Criminalist Manager
(Class Code 8467), Latent Print Analyst I (Class Code 8460), Latent
Print Analyst II (Class Code 8472), or Latent Print Supervisor (Class
Code 8473), and state miscellaneous members employed by the
Department of the California Highway Patrol who perform the duties
now performed in positions with the class title of Communications
Operator I, California Highway Patrol (Class Code 1663),
Communications Operator II, California Highway Patrol (Class Code
1664), Communications Supervisor I, California Highway Patrol (Class
Code 1662), or Communications Supervisor II, California Highway
Patrol (Class Code 1665), and state miscellaneous members whose
disability resulted under the conditions specified in Section 20047.
21152. Application to the board for retirement of a member for
disability may be made by:
(a) The head of the office or department in which the member is or
was last employed, if the member is a state member other than a
university member.
(b) The university if the member is an employee of the university.
(c) The governing body, or an official designated by the governing
body, of the contracting agency, if the member is an employee of a
contracting agency.
(d) The member or any person in his or her behalf.
21153. Notwithstanding any other provision of law, an employer
may not separate because of disability a member otherwise eligible to
retire for disability but shall apply for disability retirement of
any member believed to be disabled, unless the member waives the
right to retire for disability and elects to withdraw contributions
or to permit contributions to remain in the fund with rights to
service retirement as provided in Section 20731.
21154. The application shall be made only (a) while the member is
in state service, or (b) while the member for whom contributions
will be made under Section 20997, is absent on military service, or
(c) within four months after the discontinuance of the state service
of the member, or while on an approved leave of absence, or (d) while
the member is physically or mentally incapacitated to perform duties
from the date of discontinuance of state service to the time of
application or motion. On receipt of an application for disability
retirement of a member, other than a local safety member with the
exception of a school safety member, the board shall, or of its own
motion it may, order a medical examination of a member who is
otherwise eligible to retire for disability to determine whether the
member is incapacitated for the performance of duty. On receipt of
the application with respect to a local safety member other than a
school safety member, the board shall request the governing body of
the contracting agency employing the member to make the
determination.
21155. If the
board requests a person to submit to a medical examination, he or she
shall be entitled to reimbursement for expenses of transportation,
and meals and lodging incident to the examination if he or she is
required to travel more than 50 miles one way. Standard per diem
rates in effect for state employees as authorized by regulation of
the State Board of Control shall be used for the reimbursement;
provided, that higher costs of lodging may be paid if supported by
receipt and determined necessary by the board. "Expenses of
transportation" with respect to the use of private transportation
includes mileage fees from the person's home to the place of
examination and back to a maximum of 300 miles round trip or within
the state at the appropriate current rate per mile authorized to
state employees for use of private vehicles by regulation of the
State Board of Control plus bridge tolls. The per diem and mileage
may be paid to the person by this system at the time he or she is
given notification of the time and place of examination.
21156. If the medical examination and other available information
show to the satisfaction of the board, or in case of a local safety
member, other than a school safety member, the governing body of the
contracting agency employing the member, that the member is
incapacitated physically or mentally for the performance of his or
her duties in the state service and is eligible to retire for
disability, the board shall immediately retire him or her for
disability, unless the member is qualified to be retired for service
and applies therefor prior to the effective date of his or her
retirement for disability or within 30 days after the member is
notified of his or her eligibility for retirement on account of
disability, in which event the board shall retire the member for
service. The governing body of a contracting agency upon receipt of
the request of the board pursuant to Section 21154 shall certify to
the board its determination under this section that the member is or
is not incapacitated. The local safety member may appeal the
determination of the governing body. Appeal hearings shall be
conducted by an administrative law judge of the Office of
Administrative Hearings pursuant to Chapter 5 (commencing with
Section 11500) of Part 1 of Division 3 of this title.
21157. The governing body of a contracting agency shall make its
determination within six months of the date of the receipt by the
contracting agency of the request by the board pursuant to Section
21154 for a determination with respect to a local safety member.
A local safety member may waive the requirements of this section.
21158. Upon the receipt by the board of an application for
disability retirement with respect to a state peace
officer/firefighter member, state patrol member, or a state safety
member, the board shall inform both the employer and the member of
all information required for the board to make its determination.
The board shall make its determination within three months of the
receipt by the board of all information required to make a
determination for disability retirement on an application submitted
by a state peace officer/firefighter member, state patrol member, or
a state safety member for disability retirement pursuant to this
article.
21159. (a) Notwithstanding any other provision of law, a state
member shall not be retired for industrial disability for an illness
or injury that occurs on or after January 1, 1993, unless the member
is incapacitated for the performance of duty in any employment with
the state employer and the disability is of permanent or extended and
uncertain duration, as determined by the Department of Personnel
Administration. This section shall only apply to state safety, state
industrial, and state miscellaneous members employed in any state
bargaining units for which a memorandum of understanding has been
agreed to by the state employer and the recognized employee
organization to become subject to this section. The Director of the
Department of Personnel Administration may adopt rules regarding job
placement and other related activities necessary for the
administration of this section and Section 21195.
(b) A state member who, because of the enactment of this section
is no longer eligible to retire for industrial disability and accepts
alternate employment with the state in which the compensation is
less than that received in the position held at the time of the
illness or injury, shall, upon certification of the Department of
Personnel Administration to the board, become entitled to benefits
under the partial disability retirement program set forth in Section
21160.
(c) The employee shall have the right of appeal to the Department
of Personnel Administration regarding: (1) the requirement to
participate or (2) the exclusion from participating in the program
described in this section and Section 21160.
(d) For all other disputes relative to this section and Section
21160, the employee shall seek administrative remedy from his or her
appointing power through the departmental complaint process.
(e) The appointing power of the affected employee shall reimburse
the Department of Personnel Administration for any costs associated
with the administration of this provision.
21160. (a) Any state member who is subject to Section 21159 and
does not qualify for industrial disability retirement under this
part, or is reinstated from industrial disability retirement pursuant
to Section 21195, and accepts another job in state service, shall be
paid a partial disability retirement program benefit payment from
this system in an amount, to be calculated by the Department of
Personnel Administration and certified to the board, that, when added
to the salary earned by the employee in the current state position,
would be equal to the state salary earned by the member at the time
of becoming unable to perform the duties of his or her previous
position. This supplemental payment shall not result in the member
being deemed to be retired.
(b) The partial disability retirement program benefit payments
made under this section shall be paid for by the state employer in
the same manner as all other state retirement benefits are funded.
21161. A partial disability retirement program is established by
Section 21160 for state employees subject to Section 21159. The
benefits paid under this program shall be paid pursuant to Sections
21159 and 21160 and shall not be considered compensation for purposes
of Section 20630.
21162. A member whose membership continues under Section 20731
shall be retired for disability and receive a retirement allowance
based on the service credited to him or her at the time of retirement
during any period in which he or she receives a disability
retirement allowance under a retirement system established under the
County Employees Retirement Law of 1937, subject to the following
conditions:
(a) That the allowance shall not be paid if entry into employment
resulting in membership of the county system occurred prior to
October 1, 1957, or after more than 90 days of discontinuance of
state service.
(b) That the allowance shall not exceed an amount that, when added
to the allowance paid under the other system, equals the allowance
that would be paid if the member's state service were credited under
the other system where retirement is for disability not arising out
of or in the course of employment subject to the other system.
However, the allowance shall in any event be no less than an annuity
that is the actuarial equivalent of member's contributions.
(c) That the allowance shall be an annuity that is the actuarial
equivalent of accumulated contributions where retirement under the
other system is for disability arising out of and in the course of
employment subject to the other system.
21163. Notwithstanding any other provision of this article, the
retirement of a member who has been granted or is entitled to sick
leave or who is entitled to compensating time off for overtime, shall
not become effective until the expiration of the sick leave with
compensation and the expiration of the compensating time off with
compensation, unless the member applies for or consents to his or her
retirement as of an earlier date, or unless, with respect to sick
leave, the provisions of a local ordinance or resolution or the rules
or regulations of the employer provide to the contrary. This
section shall also be applicable to a state member who participates
in the annual leave program and who has been granted annual leave for
the reasons applicable to sick leave.
21164. Notwithstanding any other provision of this article, the
retirement for disability of a local safety member, other than a
school safety member, shall not be effective without the member's
consent earlier than the date upon which leave of absence without
loss of salary under Section 4850 of the Labor Code because of the
disability terminates, or the earlier date during the leave as of
which the disability is permanent and stationary as found by the
Workers' Compensation Appeals Board.
21165. Notwithstanding any other provision of this article, the
retirement for disability of a member, other than a local safety
member, with the exception of a school safety member, who has been
granted or is entitled to a leave of absence with compensation, which
shall include nonindustrial disability insurance benefits payable
pursuant to Article 5 (commencing with Section 19878) of Chapter 2.5
of Part 2.6, shall not become effective prior to the expiration of
the leave of absence with compensation, unless the member applies for
or consents to his or her retirement as of an earlier date.
21166. If a member is entitled to a different disability
retirement allowance according to whether the disability is
industrial or nonindustrial and the member claims that the disability
as found by the board, or in the case of a local safety member by
the governing body of his or her employer, is industrial and the
claim is disputed by the board, or in case of a local safety member
by the governing body, the Workers' Compensation Appeals Board, using
the same procedure as in workers' compensation hearings, shall
determine whether the disability is industrial.
The jurisdiction of the Workers' Compensation Appeals Board shall
be limited solely to the issue of industrial causation, and this
section shall not be construed to authorize the Workers' Compensation
Appeals Board to award costs against this system pursuant to Section
4600, 5811, or any other provision of the Labor Code.
21167. At any time within 20 days after the service of any
findings of fact by the Workers' Compensation Appeals Board under
this part, any party aggrieved thereby, or the board, may petition
for a rehearing upon one or more of the following grounds, and no
other:
(a) That the Workers' Compensation Appeals Board acted without or
in excess of its powers.
(b) That the findings of fact were procured by fraud.
(c) That the evidence does not justify the findings of fact.
(d) That the petitioner has discovered new evidence material to
him or her, that he or she could not, with reasonable diligence, have
discovered and produced at the hearing.
21168. Within 30 days after the petition for rehearing is denied,
or, if the petition is granted, within 30 days after the rendition
of amended findings of fact on rehearing, any person affected
thereby, including this system, may apply to the Supreme Court or to
the court of appeal of the appellate district in which he or she
resides, for a writ of review, for the purpose of inquiring into and
determining the lawfulness of the findings of the Workers'
Compensation Appeals Board.
21169. The writ of review shall be made returnable not later than
30 days after the date of issuance thereof, and shall direct the
Workers' Compensation Appeals Board to certify its record in the case
to the court. On the return day the cause shall be heard in the
court unless continued for good cause. No new or additional evidence
shall be introduced in the court, but the cause shall be heard on
the record of the appeals board, as certified to by it.
21170. The review by the court shall not be extended further than
to determine whether the Workers' Compensation Appeals Board acted
without or in excess of its powers, or unreasonably, or whether its
act was procured by fraud.
21171. The Workers' Compensation Appeals Board shall have
continuing jurisdiction over its determinations made under Section
21166 and may at any time within five years of the date of injury,
upon notice and after an opportunity to be heard is given to the
parties in interest, rescind, alter, or amend the determination, good
cause appearing therefor.
21172. If the retirement allowance of any person retired for
disability is canceled for any cause other than reentrance into state
service, and if he or she does not reenter state service, an amount
that is the actuarial equivalent of his or her annuity at
cancellation, based on a disabled life, but not exceeding the amount
of his or her accumulated contributions at the time of his or her
retirement for disability, shall be credited to his or her individual
account, and shall be refunded to him or her unless he or she
elects, under Section 20731, to allow his or her accumulated
contributions to remain in the retirement fund.
The actuarial equivalent under this section shall be computed on
the basis of the mortality tables and actuarial interest rate in
effect under the system on December 1, 1970, for retirements
effective through December 31, 1979. Commencing with retirements
effective January 1, 1980, and at corresponding 10-year intervals
thereafter, or more frequently at the board's discretion, the board
shall change the basis for calculating actuarial equivalents under
this article to agree with the interest rate and mortality tables in
effect at the commencement of each such 10-year or succeeding
interval.
21173. The governing body of a contracting agency may delegate
any authority or duty conferred or imposed under this article to a
subordinate officer subject to conditions it may impose.
21174. If it is not claimed that the disability is industrial or
if the claim is made and the member so requests, the board shall
proceed with retirement and with the payment of the benefits as are
payable when disability is not industrial. If the Workers'
Compensation Appeals Board subsequently determines that disability is
industrial, an amount equal to the benefits paid shall be deducted
from the benefits payable under this system because of the
determination. No additional benefits shall be payable, however,
because disability is determined to be industrial unless the
application for that determination is filed with the Workers'
Compensation Appeals Board or in the office of this system in
Sacramento, for transmission to the Workers' Compensation Appeals
Board within two years after the effective date of the member's
retirement.
21175. If any recipient of a disability retirement allowance
under the minimum age for voluntary retirement for service applicable
to members of his or her class refuses to submit to medical
examination the pension portions of his or her allowance may be
discontinued until his or her withdrawal of the refusal. If the
refusal continues for one year his or her disability retirement
allowance may be canceled.
21176. If a recipient of a disability retirement allowance
reenters state service and is eligible for membership in this system,
his or her allowance shall be canceled and he or she shall
immediately become a member of this system. His or her individual
account shall be credited with an amount that is the actuarial
equivalent of his or her annuity at that time, as based on a disabled
life, but not exceeding the amount of his or her accumulated
contributions at the time of his or her retirement for disability.
He or she shall receive credit for prior service in the same manner
as though he or she had never been retired for disability.
Article 7. Reinstatement from Retirement
21190. A person who has been retired under this system for
service may be reinstated from retirement by the board as provided in
this article, and thereafter may be employed by the state or by a
contracting agency in accordance with the laws governing that
service, in the same manner as a person who has not been so retired.
21191. Subject to Sections 21197 and 21201, notwithstanding any
other provision of law to the contrary, a person who has been retired
under this system for industrial disability shall be reinstated from
retirement pursuant to this article, upon his or her application to
the board, if, upon reinstatement, he or she will be employed by the
state or any contracting agency as a state or local miscellaneous
member.
21192. The board, or in case of a local safety member, other than
a school safety member, the governing body of the employer from
whose employment the person was retired, may require any recipient of
a disability retirement allowance under the minimum age for
voluntary retirement for service applicable to members of his or her
class to undergo medical examination, and upon his or her application
for reinstatement, shall cause a medical examination to be made of
the recipient who is at least six months less than the age of
compulsory retirement for service applicable to members of the class
or category in which it is proposed to employ him or her. The board,
or in case of a local safety member, other than a school safety
member, the governing body of the employer from whose employment the
person was retired, shall also cause the examination to be made upon
application for reinstatement to the position held at retirement or
any position in the same class, of a person who was incapacitated for
performance of duty in the position at the time of a prior
reinstatement to another position. The examination shall be made by
a physician or surgeon, appointed by the board or the governing body
of the employer, at the place of residence of the recipient or other
place mutually agreed upon. Upon the basis of the examination, the
board or the governing body shall determine whether he or she is
still incapacitated, physically or mentally, for duty in the state
agency, the university, or contracting agency, where he or she was
employed and in the position held by him or her when retired for
disability, or in a position in the same classification, and for the
duties of the position with regard to which he or she has applied for
reinstatement from retirement.
21193. If the determination pursuant to Section 21192 is that the
recipient is not so incapacitated for duty in the position held when
retired for disability or in a position in the same classification
or in the position with regard to which he or she has applied for
reinstatement and his or her employer offers to reinstate that
employee, his or her disability retirement allowance shall be
canceled immediately, and he or she shall become a member of this
system.
If the recipient was an employee of the state or of the university
and is so determined to be not incapacitated for duty in the
position held when retired for disability or in a position in the
same class, he or she shall be reinstated, at his or her option, to
that position. However, in that case, acceptance of any other
position shall immediately terminate any right to reinstatement. A
recipient who is found to continue to be incapacitated for duty in
his or her former position and class, but not incapacitated for duty
in another position for which he or she has applied for reinstatement
and who accepts employment in the other position, shall upon
subsequent discontinuance of incapacity for service in his or her
former position or a position in the same class, as determined by the
board under Section 21192, be reinstated at his or her option to
that position.
If the recipient was an employee of a contracting agency other
than a local safety member, with the exception of a school safety
member, the board shall notify it that his or her disability has
terminated and that he or she is eligible for reinstatement to duty.
The fact that he or she was retired for disability does not
prejudice any right to reinstatement to duty which he or she may
claim.
21194. A person who has been partially retired under this system
pursuant to Article 1.7 (commencing with Section 19996.30) of Chapter
7 of Part 2.6 or pursuant to Sections 21110 through 21115 may be
reinstated from partial retirement by the board as provided in this
article, and thereafter may continue to be employed on a full-time
basis by the state, in the same manner as a person who has not been
so retired.
21195. Notwithstanding any other section in Article 6 (commencing
with Section 21150) or in this article, the Department of Personnel
Administration may reinstate a person who has retired for industrial
disability pursuant to Section 21410, within 12 months after the
effective date of retirement, if it has identified an available
position with duties that the employee is able to perform. Upon
reinstatement, the person shall become entitled to benefits under the
partial disability retirement program pursuant to Section 21160.
21196. The board may reinstate a person from retirement upon (a)
his or her application to the board for reinstatement; (b) the
determination of the board, based upon medical examination, that he
or she is not incapacitated for the duties to be assigned to him or
her; and (c) the determination of the board that his or her age at
the date of application for reinstatement is at least six months less
than the age of compulsory retirement for service applicable to
members of the class or category in which it is proposed to employ
him or her. The provisions of clause (c) of this section shall apply
only to patrol, state peace officer/firefighter, and safety members.
The effective date of the reinstatement for purposes of this
article shall be the first day of compensated employment following
approval of reinstatement.
21197. The board may reinstate a person from industrial
disability retirement to a miscellaneous member position upon all of
the following:
(a) His or her application to the board for reinstatement.
(b) The determination of the board, based upon medical
examination, that he or she is not incapacitated for the duties to be
assigned to him or her.
(c) The determination of the board that the employer from whose
employment the person was retired for industrial disability has been
furnished a notice of intent to reinstate that person, that contains
information that he or she may be entitled to resume an industrial
disability retirement allowance using the salaries earnable under the
miscellaneous member
position upon termination of the miscellaneous member employment.
21198. A person who has been retired under this system for
service following an involuntary termination of his or her
employment, and who is subsequently reinstated to that employment by
action on or after October 1, 1965, pursuant to an administrative or
judicial proceeding, shall be reinstated from retirement. The
requirements of Section 21196 shall not apply to that reinstatement.
Reinstatement shall be effective as of the date from which salary is
awarded in the administrative or judicial proceedings, and his or
her rights and obligations shall be as specified in this article.
However, amounts paid to the person during retirement for any period
after the date from which salary is awarded, shall be repaid by him
or her to this system, and contributions shall be made for any
period for which salary is awarded in the administrative or judicial
proceedings in the amount that he or she would have contributed had
his or her employment not been terminated, and he or she shall
receive credit as state service for the period for which salary is
awarded.
21199. A person who has been retired under this system for
service may be reinstated from retirement pursuant to this article,
without regard to the requirements of Section 21196, upon his or her
application to the board, if, upon reinstatement, he or she will be
appointed by the Governor to any state office or employment.
21200. When any person is reinstated from retirement under this
article, his or her retirement allowance shall be canceled
immediately, and he or she shall become a member of this system as of
the date of reinstatement. His or her individual account shall be
credited with an amount that is the actuarial equivalent of his or
her annuity at the date of reinstatement, not to exceed the amount of
his or her accumulated contributions as it was at the date of
retirement. His or her future rate of contributions and his or her
retirement allowance upon subsequent retirement shall be determined
in accordance with Chapter 8 (commencing with Section 20670) and
Chapter 13 (commencing with Section 21250), respectively.
The actuarial equivalent under this section shall be computed on
the basis of the mortality tables and actuarial interest rate in
effect under the system on December 1, 1970, for retirements
effective through December 31, 1979. Commencing with retirements
effective January 1, 1980, and at corresponding 10-year intervals
thereafter, or more frequently at the board's discretion, the board
shall change the basis for calculating actuarial equivalents under
this article to agree with the interest rate and mortality tables in
effect at the commencement of each such 10-year or succeeding
interval.
21201. When any person is reinstated from industrial disability
retirement under this article, his or her retirement allowance shall
be canceled immediately, and he or she shall become a member of this
system as of the date of reinstatement. His or her individual
account shall be credited with an amount that is the actuarial
equivalent of his or her annuity at the date of reinstatement, not to
exceed the amount of his or her accumulated contributions as it was
at the date of retirement. Upon subsequent retirement, the board
shall resume the payment of his or her previous industrial disability
retirement allowance using the highest compensation earnable during
any period of membership, notwithstanding Section 20036, to
recalculate the industrial disability retirement allowance. The
member shall receive, in addition to the disability retirement
allowance from the employment in which he or she was granted the
industrial disability retirement, an annuity purchased with his or
her accumulated normal contributions made in respect to other
employment covered by this system. If the member is qualified for
service retirement, he or she shall receive his or her service
retirement allowance, in lieu of the industrial retirement allowance,
if the service retirement allowance is greater.
21202. A person employed in violation of Section 21220 shall be
reinstated to membership in the category in which, and on the date on
which, the unlawful employment occurred.
21203. A person who has been retired under this system for
service may be reinstated from retirement pursuant to this article,
without regard to the requirements of Section 21196, upon his or her
application to the board if both of the following conditions occur:
(a) Upon reinstatement, he or she will be appointed by a state
board or commission to the position to which the board or commission
is entitled to appoint an employee exempt from civil service under
the provisions of Article VII of the California Constitution.
(b) In the judgment of the board or commission he or she has
special knowledge, experience and qualifications respecting the
activities of the board or commission.
Article 8. Employment after Retirement
21220. (a) A person who has been retired under this system, for
service or for disability, shall not be employed in any capacity
thereafter by the state, the university, a school employer, or by a
contracting agency, unless the employment qualifies for service
credit in the University of California Retirement System or the State
Teachers' Retirement System, unless he or she has first been
reinstated from retirement pursuant to this chapter, or unless the
employment, without reinstatement, is authorized by this article. A
retired person whose employment without reinstatement is authorized
by this article shall acquire no service credit or retirement rights
under this part with respect to the employment.
(b) Any retired member employed in violation of this article
shall:
(1) Reimburse this system for any retirement allowance received
during the period or periods of employment that are in violation of
law.
(2) Pay to this system an amount of money equal to the employee
contributions that would otherwise have been paid during the period
or periods of unlawful employment, plus interest thereon.
(3) Contribute toward reimbursement of this system for
administrative expenses incurred in responding to this situation, to
the extent the member is determined by the executive officer to be at
fault.
(c) Any public employer that employs a retired member in violation
of this article shall:
(1) Pay to this system an amount of money equal to employer
contributions that would otherwise have been paid for the period or
periods of time that the member is employed in violation of this
article, plus interest thereon.
(2) Contribute toward reimbursement of this system for
administrative expenses incurred in responding to this situation, to
the extent the employer is determined by the executive officer of
this system to be at fault.
21221. A retired person may serve without reinstatement from
retirement or loss or interruption of benefits provided by this
system, as follows:
(a) As a member of any board, commission, or advisory committee,
upon appointment by the Governor, the Speaker of the Assembly, the
President pro Tempore of the Senate, director of a state department,
or the governing board of the contracting agency. However, the
appointment shall not be deemed employment within the meaning of
Division 4 (commencing with Section 3200) and Division 4.5
(commencing with Section 6100) of the Labor Code, and shall not
provide a basis for the payment of workers' compensation to a retired
state employee or to his or her dependents.
(b) As a school crossing guard.
(c) As a juror or election officer.
(d) As an elective officer on and after September 15, 1961.
However, all rights and immunities which may have accrued under
former Section 21158 as it read prior to its repeal by Chapter 1227
of the Statutes of 1969 are hereby preserved.
(e) As an appointive member of the governing body of a contracting
agency. However, the compensation for that office shall not exceed
one hundred dollars ($100) per month.
(f) Upon appointment by the Legislature, or either house, or a
legislative committee to a position deemed by the appointing power to
be temporary in nature.
(g) Upon employment by a contracting agency to a position found by
the governing body, by resolution, to be available because of a
leave of absence granted to a person on payroll status for a period
not to exceed one year and found by the governing body to require
specialized skills. The temporary employment shall be terminated at
the end of the leave of absence. Appointments under this section
shall be reported to the board and shall be accompanied by the
resolution adopted by the governing body.
(h) Upon appointment by the governing body of a contracting agency
to a position deemed by the governing body to be of a limited
duration and requiring specialized skills or during an emergency to
prevent stoppage of public business. These appointments, in addition
to any made pursuant to Section 21375, shall not exceed a total for
all employers of 960 hours in any calendar year. When an appointment
is expected to, or will, exceed 960 hours in any calendar year, the
governing body shall request approval from the board to extend the
temporary employment. The governing body shall present a resolution
to the board requesting action to allow or disallow the employment
extension. The resolution shall be presented prior to the expiration
of the 960 hour maximum for the calendar year. The appointment shall
continue until notification of the board's decision is received by
the governing body. The appointment shall be deemed approved if the
board fails to take action within 60 days of receiving the request.
Appointments under this subdivision may not exceed a total of one
year.
21222. Notwithstanding Section 21221, if a retired person serves
without reinstatement from retirement in an elective office and part
or all of his or her retirement allowance is based on service in that
elective office, the portion of the allowance based on service in
that elective office shall be suspended during incumbency in that
elective office. The entire retirement allowance shall be paid for
time on and after the person vacates the elective office in the
monthly amount payable had the allowance not been suspended.
The governing body of every employer other than the state shall
cause immediate notice to be given to this system of the election of
any retired person to an office of the employer.
21223. A retired person may serve without reinstatement from
retirement or loss or interruption of benefits provided under this
system upon approval of the Director of Personnel Administration or
the governing body of a contracting agency, as the case may be, under
employment by any state or contracting agency in which he or she
previously served while a member of this system, where by reason of
actual litigation, or a proceeding before the State Board of Control
or the governing body of a contracting agency, as the case may be, or
where the state or contracting agency desires to perpetuate
testimony in connection with any anticipated litigation involving the
state or contracting agency, and adverse interests, the services of
the person are or may be necessary in preparing for trial or in
testifying as to matters within or based upon his or her knowledge
acquired while employed. He or she may be paid a per diem and actual
and necessary traveling expenses, but he or she shall not be paid at
a greater rate of compensation per diem than the rate ordinarily
paid other persons by state agencies or the contracting agency for
similar services. However, there shall be deducted from the per diem
compensation sums equal to the retirement annuity allocable to the
days of actual employment under this section.
21224. A retired person may serve without reinstatement from
retirement or loss or interruption of benefits provided by this
system upon appointment by the appointing power of a state agency or
any other employer either during an emergency to prevent stoppage of
public business or because the retired employee has skills needed in
performing work of limited duration. These appointments shall not
exceed a total for all employers of 960 hours in any calendar year,
and the rate of pay for the employment shall not be less than the
minimum, nor exceed that paid by the employer to other employees
performing comparable duties.
21225. A retired person may serve without reinstatement from
retirement or loss or interruption of benefits provided by this
system as a substitute in a position requiring certification
qualifications, pursuant to Section 59007 or 59113 of the Education
Code, at the California School for the Deaf or the California School
for the Blind, if that service does not exceed 960 hours in any
fiscal year.
21226. A retired person may serve without reinstatement from
retirement or loss or interruption of benefits provided by this
system as a member of the academic staff of a California community
college or of the University of California, if that service does not
exceed 960 hours in any fiscal year.
21227. A retired person may serve without reinstatement from
retirement or loss or interruption of benefits provided by this
system as a member of the academic staff of a California state
university, if that service does not exceed, in any fiscal year, a
total of 960 hours for all employers or 50 percent of the hours the
member was employed during the last fiscal year of service prior to
retirement.
21228. A person retired for disability who has not attained the
mandatory age for retirement applicable to persons in the employment
in which he or she will be employed, and whom the board finds not
disabled for that employment, may be employed by any employer without
reinstatement from retirement in a position other than that from
which he or she retired or a position in the same member
classification. His or her disability retirement pension shall be
reduced during that employment to an amount that, when added to the
compensation received, shall equal the maximum compensation earnable
by a person holding the position that he or she held at the time of
his or her retirement. Any employment shall terminate upon his or
her attainment of the mandatory retirement age for persons in that
employment.
21229. A retired person may serve without reinstatement from
retirement or loss or interruption of benefits provided by this
system upon appointment by a school employer or by the Trustees of
the California State University either during an emergency to prevent
stoppage of public business or because the retired employee has
skills needed in performing specialized work of limited duration, if
that service does not exceed, in any fiscal year, a total of 960
hours for all employers. The retired person's rate of pay for this
employment shall not be less than the minimum, nor exceed that paid
by the employer to other employees performing comparable duties.
CHAPTER 13. RETIREMENT BENEFITS
Article 1. General Provisions
21250. A pension, an annuity, special death benefit or retirement
allowance granted by this part is payable in equal monthly
installments but a smaller pro rata amount may be paid for part of a
month when the period of payment begins after the first or ends
before the last day of the month.
21251. Notwithstanding Section 20172, the board may establish a
special account and procedure to directly pay estimated benefits on
an emergency basis. Payments under the special account shall be
deducted from benefits otherwise due and payable under this part.
The board shall furnish each recipient of funds from this account
with notice that the payment is an estimated amount and that any
adjustments necessary due to inaccuracies in estimating shall be
corrected as soon as practicable.
21252. Retirement shall be effective and the retirement allowance
shall begin to accrue as of the date designated in the member's
application as the effective date of retirement, or upon the day
following the last day for which salary is payable if that day
postdates the day designated by the person as the effective date or
if the member has not designated an effective date. In no event shall
the retirement become effective or the retirement allowance begin to
accrue earlier than the first day of the month in which the member's
application is received at an office of the board or by an employee
of this system designated by the board, or, if the member has been
incompetent to act on his or her own behalf continuously from the
last day for which salary was payable, one year prior to the month in
which an application by the guardian of his or her estate is so
received. An application for retirement may only be filed by or for
a member who is living on the date the application is actually
received by this system.
21253. (a) Notwithstanding Section 21252, the board may fix the
effective date of a member's retirement as of a date earlier than the
first of the month in which an application for retirement is
received in the office of the board, if the board finds: (1) an
application is in fact received within nine months following the
member's separation from state service; (2) the member separated from
state service with the intention of retiring; (3) the member failed
to submit an application for retirement due to misunderstanding of
the requirement therefor, or the member or member's employer
undertook to transmit an application for retirement and failed or
delayed unreasonably in the transmission; and (4) the member is
living on the date the application is actually received at the office
of the board. An effective date fixed pursuant to this section may
not be earlier than the effective date found to have been specified
in the original application or earlier than the day following the
last day for which salary was payable. For purposes of this section,
the member's intention to retire may be determined by personnel
documents prepared by the employer at the time of the member's
separation or by affidavit of the member, coworkers or the employer.
(b) Notwithstanding any other provision of law, a member who
separates from a retirement system that has established reciprocity
with this system, and who files his or her retirement application
with the board within nine months of that separation, and who
separated from that retirement system with the intention of retiring
concurrently under both systems, may have his or her application
received and acted upon by this system as if filed pursuant to
subdivision(a).
21254. The right of a person to a pension, retirement allowance,
return of contributions, the pension, retirement allowance, any
optional benefit, or any other right accrued or accruing to any
person under this part are exempt from taxation, including any
inheritance tax, whether state, county, municipal, or district.
21255. The right of a person to any benefit or other right under
this part and the money in the retirement fund are not subject to
execution or any process whatsoever except to the extent permitted by
Section 704.110 of the Code of Civil Procedure, and are
unassignable, except as specifically provided in this part.
21256. Any allowance may be paid directly to a trust. A trustee
of the trust shall have the right to make tax withholding elections
and to change the address for annuitant payments and correspondence.
21257. The benefits payable after August 4, 1943 under this
system shall not be modified on account of any amounts paid to a
retired member or beneficiary under Division 4 (commencing with
Section 3200) of the Labor Code.
21258. For the purposes of determining eligibility for disability
retirement, calculating disability retirement allowances, and
determining and calculating death benefits, any member who, while in
a membership category under which special benefits are provided by
this part because a disability or death is determined industrial, and
thereafter, while in a membership category under which special
benefits are not so payable, is determined to be disabled because of
the industrial injury or disease previously suffered or incurred or
dies as a result thereof, shall be deemed to be, at the time of the
disability retirement or death, in the membership category in which
he or she was at the time he or she suffered the injury or incurred
the disease.
The member will be eligible to receive the industrial disability
retirement benefit only if he or she was disabled for performance of
his or her duties in the position under the membership category where
industrial disability benefits are payable, from the date of
discontinuance of the state service in which the industrial injury or
disease occurred to the time of application.
The effective date of retirement for purposes of this section
shall be determined in accordance with Section 21252.
21259. Subject to compliance with this part, after a member has
qualified as to service and disability for retirement for disability,
or as to age and service for retirement for service, nothing shall
deprive or her of the right to a retirement allowance as determined
under this part.
21260. In lieu of receiving a monthly allowance that is less than
ten dollars ($10) per month, the beneficiary or survivor entitled to
the allowance may elect to receive the actuarial equivalent of the
monthly allowance in one payment. Payment of the actuarial equivalent
amount pursuant to that election discharges this system from all
further liability for the allowance otherwise payable. The
beneficiary or survivor may make the election provided by this
section within 90 days from the date this system notifies him or her
of the right to make the election.
21261. The sole purpose of this section is to notify the current
spouse of the selection of benefits or change of beneficiary made by
a member. Nothing in this section is intended to conflict with
community property law. An application for a refund of the member's
accumulated contributions, an election of optional settlement, or a
change in beneficiary designation shall contain the signature of the
current spouse of the member, unless the member declares, in writing
under penalty of perjury, any of the following:
(a) The member is not married.
(b) The current spouse has no identifiable community property
interest in the benefit.
(c) The member does not know, and has taken all reasonable steps
to determine, the whereabouts of the current spouse.
(d) The current spouse has been advised of the application and has
refused to sign the written acknowledgment.
(e) The current spouse is incapable of executing the
acknowledgment because of incapacitating mental or physical
condition.
(f) The member and the current spouse have executed a marriage
settlement agreement pursuant to Part 5 (commencing with Section
1500) of Division 4 of the Family
Code that makes the community property law inapplicable to
the marriage.
21262. An application for a refund of the member's accumulated
contributions or an election of optional settlement and beneficiary
designation shall contain the signature of the current spouse of the
member, unless the member makes, in writing under penalty of perjury,
any of the following declarations:
(a) That the member is not married.
(b) That the member does not know, and has taken all reasonable
steps to determine, the whereabouts of the current spouse.
(c) That the current spouse has been advised of the application
and has refused to sign the written acknowledgment.
(d) That the current spouse is incapable of executing the
acknowledgment because of incapacitating mental or physical
condition.
(e) That the member and the current spouse have executed a
marriage settlement agreement pursuant to Part 5 (commencing with
Section 1500) of Division 4 of the Family Code that makes the
community property law inapplicable to the marriage.
No retirement or refund payment shall be made when there is no
spousal signature or when the member has made no declaration under
subdivisions (a) through (e).
The sole purpose of this section is to notify the current spouse
of the selection of specified benefits made by a member.
21263. Notwithstanding the provisions of Sections 751 and 1100 of
the Family Code, whenever payment or refund is made by this system
to a member, former member, beneficiary of a member or estate of a
member pursuant to any provision of this part, the payment shall
fully discharge this system from all adverse claims thereto unless,
before the payment or refund is made, this system has received at its
office in Sacramento written notice by or on behalf of some other
person that the person claims to be entitled to the payment or
refund.
21264. Retired members of this system, and beneficiaries who are
entitled to receive allowances or benefits under this part, may
authorize deductions to be made from their retirement allowance
payments or from the allowances and benefits, respectively, or from
either or both where both are being received, in accordance with
regulations established by the board for the payment of group
insurance premiums and other premiums for benefits or protection
provided for under Section 1151, including employer-sponsored
voluntary insurance programs, for credit union payments or shares, or
for the payment, with respect to retired state members of this
system, of dues provided for under Section 1152. The board shall
determine the additional cost involved in making deductions under
this section and the state agency, the public agency, the
association, or the unit thereof, or the credit union shall pay the
amount of the additional cost to the board for deposit in the
retirement fund.
21265. Retired members of this system, and beneficiaries who are
entitled to receive allowances or benefits under the provisions of
this part, may authorize deductions to be made from their retirement
allowance payments or from the allowances and benefits, respectively,
or from either or both where both are being received in accordance
with regulations established by the board for the payment of
charitable contributions under any plan approved by the board. In
lieu of approving individual plans, the board, at its discretion, may
adopt by reference those plans approved by the State Board of
Control under Section 13923. The board shall determine the
additional cost involved in making deductions under this section and
the agency to receive the contributions shall pay the amount of the
additional cost to the board for deposit in the retirement fund.
21266. Upon receipt of proof, satisfactory to the board, that a
warrant drawn in payment of a retirement allowance or in payment of
any other account due from the retirement system has been lost, the
Controller upon the request of the board shall issue a duplicate
warrant in payment of the same amount, without requiring a bond from
the payee, and any loss incurred in connection therewith shall be
charged against the account from which the payment was derived.
21267. Notwithstanding any other provision of law, any person
entitled to the receipt of benefits from any state retirement system
may authorize the payment of the benefits to be directly deposited by
electronic fund transfer into the person's account at the financial
institution of his or her choice under a program for direct deposit
by electronic transfer established pursuant to Section 21268. The
direct deposit shall discharge the state agency's obligation in
respect to that payment.
21268. The Controller may make an agreement with one or more
financial institutions participating in the Automated Clearing House
pursuant to the local rules, and may establish a program, for the
direct deposit by electronic fund transfer of the benefits, after any
withholding required by law and authorized deductions, of any person
entitled to the receipt of benefits from any state retirement system
who authorizes the direct deposit thereof by electronic fund
transfer into the person's account at the financial institution of
his or her choice.
If the Controller does not make an agreement establishing a
program for direct deposit by electronic fund transfer of the
retirement benefits, the administrative body of any state retirement
system may make such an agreement.
21269. (a) Any person entitled to a benefit from this system may
request that payment be made by deposit by electronic fund transfer
in the person's bank, savings and loan association, or credit union
account.
(b) If deposit pursuant to subdivision (a) is not available,
deposit may be made by mail in the person's bank, savings and loan
association or credit union account.
(c) Mailing of the warrant or electronic fund transfer is a full
discharge of the board and this system.
(d) (1) The board shall not send a copy of the benefit payment
information to any person who has had payment made by electronic fund
transfer or by mail pursuant to subdivision (a) or (b), if the board
has received a written request from that person that it not be sent.
(2) The board shall notify persons subject to this section, in the
monthly benefit payment notice, of their right to request that no
copy of the benefit payment information be mailed, pursuant to
paragraph (1).
Article 2. Community Property
21290. (a) Upon the legal separation or dissolution of marriage
of a member, the court shall include in the judgment or a court order
the date on which the parties separated.
(b) If the community property is divided in accordance with
subdivision (c) of Section 2610 of the Family Code, the court shall
order that the accumulated contributions and service credit
attributable to periods of service during the marriage be divided
into two separate and distinct accounts in the name of the member and
the nonmember, respectively. Any service credit or accumulated
contributions that are not explicitly awarded by the judgment or
court order shall be deemed the exclusive property of the member.
(c) The court shall address the rights of the nonmember to the
following:
(1) The right to a retirement allowance, and the consequent right
to elect an optional settlement and designate a beneficiary.
(2) The right to a refund of accumulated contributions.
(3) The right to redeposit accumulated contributions that are
eligible for redeposit by the member under Sections 20750 and 20752.
(4) The right to purchase service credit that is eligible for
purchase by the member under Article 4 (commencing with Section
20990) and Article 5 (commencing with Section 21020) of Chapter 11.
(5) The right to designate a beneficiary to receive his or her
accumulated contributions payable where death occurs prior to
retirement.
(6) The right to designate a beneficiary for any unpaid allowance
payable at the time of the nonmember's death.
(7) The right to elect coverage in the Second Tier for that member
service that is subject to the Second Tier, provided that the
election is made within one year of the establishment of the
nonmember account or prior to the nonmember's retirement, whichever
occurs first. Immediately upon establishment of a nonmember account,
the board shall provide, by certified mail, the necessary form and
information so that the election may be made.
(d) In the capacity of nonmember, he or she shall not be entitled
to any disability or industrial disability retirement allowance, any
basic death benefit, any special death benefit, any monthly allowance
for survivors of a member or retired person, any insurance benefit,
or retired member lump-sum death benefit. No survivor continuance
allowance shall be payable to a survivor of a nonmember.
21291. "Nonmember," as used in this article, means the spouse or
former spouse of a member, who as a result of petitioning the court
for the division of community property, has been awarded a distinct
and separate account reflecting specific credited service and
accumulated contributions.
21292. (a) The nonmember who is awarded a separate account shall
have the right to a refund of the accumulated contributions in the
separate account of the nonmember.
(b) The nonmember shall file an application on a form provided by
this system to obtain the refund.
(c) The refund shall be effective when this system deposits in the
United States mail an initial warrant drawn in favor of the
nonmember and addressed to the latest address for the nonmember on
file with this system.
(d) The nonmember is deemed to have permanently waived all rights
in this system and all rights to any future retirement benefits
pertaining to the service credit accumulated contributions, or both,
when the refund becomes effective.
(e) The nonmember may not cancel a refund once it has become
effective.
(f) The nonmember shall have no right to elect to redeposit the
refunded accumulated contributions from the nonmember's account after
the refund is effective, and shall have no right to redeposit under
Section 20750 or 20752 , or to purchase service credit under Article
4 (commencing with Section 20990) or Article 5 (commencing with
Section 21020) of Chapter 11 after the refund becomes effective.
(g) If at the time of the marriage dissolution or legal
separation, the member does not have the necessary minimum credited
service to retire, the nonmember shall receive a refund of the
accumulated contributions placed in the nonmember's account.
21293. (a) The nonmember who is awarded a separate account may
redeposit accumulated contributions previously refunded to the member
in accordance with the determination of the court required by
Section 21290.
(b) The nonmember may redeposit only those accumulated
contributions that were previously refunded to the member and that
the court has determined to be the community property interest of the
nonmember in the accumulated contributions.
(c) If the nonmember elects to redeposit, he or she shall repay
the accumulated contributions pursuant to Section 20750 or Section
20752.
(d) An election to redeposit shall be considered an election to
repay all accumulated contributions previously refunded that the
nonmember is entitled to redeposit.
(e) The right of the nonmember to redeposit is subject to the
regulations of the board.
(f) The member has no right to redeposit the share of the
nonmember in the previously refunded accumulated contributions
whether or not the nonmember elects to redeposit. However, any right
to redeposit previously refunded accumulated contributions not
explicitly awarded to the nonmember by the judgment or court order
shall be deemed the exclusive property of the member.
(g) In the event the nonmember elected to redeposit upon
retirement and has subsequently died, prior to completing the
redeposit, the board shall file a claim against the estate of the
decedent to recover benefit payments that exceeded those for which
payment was made.
21294. (a) The nonmember shall have the right to purchase service
credit pursuant to the determination of the court required by
Section 21290.
(b) The nonmember may purchase only that service credit that the
court, pursuant to Section 21290 has determined to be the community
property interest of the nonmember spouse.
(c) If the nonmember elects to purchase service credit, he or she
shall pay, prior to retirement, the contributions and interest
required by Article 4 (commencing with Section 20990) and Article 5
(commencing with Section 21020) of Chapter 11 and pursuant to the
regulations of the board.
(d) The nonmember shall have no right to purchase the service
credit after the effective date of a refund of the accumulated
contributions in the separate account of the nonmember.
(e) The member has no right to purchase the community property
interest of the nonmember of the service credit whether or not the
nonmember elects to purchase the service credit. However, any
service credit eligible for purchase that is not explicitly awarded
to the nonmember by the judgment or court order shall be deemed the
exclusive property of the member.
(f) In the event the nonmember elected to purchase service credits
upon retirement and has subsequently died, prior to completing the
purchase, the board shall file a claim against the estate of the
deceased to recover benefit payments which exceeded those for which
payment was made.
21295. A nonmember shall be retired upon his or her written
application to the board if all of the following conditions are met:
(a) The nonmember has attained the minimum age prescribed by the
applicable service retirement formula of the member.
(b) On the date of marriage dissolution or legal separation, the
member had sufficient credited service to retire for service.
(c) On the date of application, the member has attained minimum
retirement age to receive a service retirement allowance.
21296. Retirement shall be effective and the retirement allowance
shall begin to accrue as of the date designated in the nonmember's
application as the effective date of retirement, or the day following
the date of court order dividing the community property of the
member and nonmember, if later. In no event shall the retirement
become effective or the retirement allowance begin to accrue earlier
than the first day of the month in which the nonmember's application
is received at an office of the board or by an employee of this
system designated by the board, or, if the nonmember has been
incompetent to act on his or her own behalf continuously from the
date of dissolution or legal separation, one year prior to the month
in which an application by the guardian of his or her estate is so
received. An application for retirement may only be filed by or for
a nonmember who is living on the date the application is actually
received by this system.
21297. For a nonmember, "final compensation" means the highest
average annual compensation earnable by the member during the three
consecutive years, or one year where applicable, prior to the date of
dissolution of marriage or legal separation. The nonmember may
designate an earlier period to be used where the time period of the
nonmember's marriage to the member and membership correspond.
21298. A nonmember entitled to receive a retirement allowance
shall receive a retirement allowance based on the service retirement
formula applicable to the service credited to the nonmember.
The retirement allowance shall consist of a pension and an
annuity, the latter of which shall be derived from the nonmember's
accumulated contributions. The nonmember's retirement allowance,
based upon the service credited by the employer and the nonmember's
effective date of retirement, shall be subject to all cost-of-living
increases, ad hoc increases, and increases provided through the
Investment Dividend Disbursement Account.
Article 3. Cost-of-Living Adjustments
21310. It is the purpose of the Legislature in enacting this
article to provide for the preservation of the purchasing power of
benefits under the Public Employees' Retirement Law through a system
of adjustments in benefits based on changes in living costs.
21311. The following definitions shall govern the application of
this article:
(a) "Monthly allowance" means any allowance payable monthly to a
retired person, a survivor or beneficiary of a member or a retired
person, other than a monthly installment of a basic death benefit,
the commuted value of an unpaid temporary annuity, or an optional
settlement 1, or allowances payable under Article 3 (commencing with
Section 21570) of Chapter 14. There shall be excluded from the
monthly allowance, for purposes of any adjustment under this article,
any portion of the allowance derived from accumulated additional
contributions of a member.
(b) "Base allowance" means the amount of monthly allowance that
would be payable to the recipient at the time of an annual adjustment
under this article had this article not been enacted.
(c) Effective January 1, 1978, "Consumer Price Index" means the
United States city average "Consumer Price Index for All Urban
Consumers." The "Consumer Price Index" for any period prior to
January 1, 1978, means the United States city average consumer price
index. Should the reference base of the consumer price indices
(presently 1957-59=100) be changed, each of the indices used to
determine the consumer price index as defined in this section will be
the indices converted to the new base by standard statistical
methods.
(d) "Base year" means:
(1) The calendar year 1965 for all members whose retirement
occurred prior to January 1, 1966, and for the beneficiaries and
survivors of those retired members.
(2) The calendar year of retirement for all members whose
retirement occurs after December 31, 1965, and for the beneficiaries
and survivors of those members.
(3) The calendar year 1965 for survivors of members whose death
occurred before January 1, 1966.
(4) The calendar year in which a member's death occurs for
survivors of members whose death occurred before retirement and on or
after January 1, 1966.
21312. Notwithstanding Section 20481, monthly allowances payable
to persons retired under a local system of a contracting agency at
the time of contract shall be adjusted in accordance with this
article. However, with respect to those retired persons under a
contract effective on or after April 1, 1973, the "base year" shall
be the year in which the contract is effective. Allowances payable
for service to a public agency whose contract is terminated on or
after December 1, 1969, shall be adjusted in accordance with this
article subject to reduction in accordance with Section 20577.
Allowances payable for service to a public agency whose contract was
terminated prior to December 1, 1969, shall not be adjusted in
accordance with this article.
21313. Monthly allowances shall be adjusted annually for time
commencing on April 1 and effective with the monthly allowance
regularly payable on the first day of May beginning with May 1, 1969.
The adjusted monthly allowance shall be equal to the base allowance
multiplied by an adjustment factor which is equal to the ratio
obtained by dividing the consumer price index for the immediately
preceding year by the consumer price index for the recipient's base
year. The adjustments shall be subject to the conditions and limits
provided in this article.
21314. In addition to the increase in allowance authorized by and
granted pursuant to the provisions of Section 21313, and
notwithstanding the limitation in subdivision (b) of Section 21224,
any monthly allowance computed under or limited by Section 21251.1
prior to its repeal by Chapter 266, Statutes of 1972, shall be
increased by 15 percent. The percentage shall be applied to the
allowance payable on July 1, 1974, and the allowance as so increased
shall be paid for time on and after that date and until the first day
of April, 1975. The base allowance shall be increased by the same
percentage for annual adjustments beginning with the adjustment
effective for time commencing on April 1, 1975.
Notwithstanding Section 20019.1, as amended by Chapter 1110 of the
Statutes of 1979, and Section 20506, this section shall not apply to
allowances based on service in employment in which the member was a
school member or a local miscellaneous member.
The amendments to this section by Chapter 740 of the Statutes of
1975 and Chapter 1079 of the Statutes of 1976 shall be applicable to
allowances paid on and after July 1, 1974, to retired state members
who did not receive an increase under this secton prior to that
amendment solely because their effective date of retirement was on or
after July 1, 1971.
21315. In addition to the increase of allowance authorized by and
granted pursuant to the provisions of Section 21313 and
notwithstanding the limitation in subdivision (b) of Section 21329,
any monthly allowance computed under or limited by former Section
21251.1 prior to its repeal by Chapter 266 of the Statutes of 1972,
and paid with respect to a school member or local member employed by
a school district or a county superintendent of schools, and with
respect to a school member, as defined in former Section 20019.2, as
amended by Chapter 213 of the Statutes of 1977, shall be increased by
15 percent. The percentage shall be applied to the allowance
payable on January 1, 1979.
21316. In addition to the monthly allowance payable for January
1979, an additional one-time payment shall be made which is equal to
18 times the amount of the increase, if any, granted pursuant to
Sections 21315, 21321, and 21324.
21317. In addition to the increase of allowance authorized by and
granted pursuant to Section 21313 and notwithstanding the limitation
in subdivision (b) of Section 21329, any monthly allowance computed
under or limited by any section other than Section 21362, as amended
by Chapter 96 of the Statutes of 1971, and paid with respect to a
local safety member whose retirement for service or nonindustrial
death before retirement occurred prior to the date the contracting
agency elected to be subject to Section 21362 as so amended, shall be
increased by 15 percent. The percentage shall be applied to the
allowance payable on the date this section becomes applicable to the
contracting agency and the allowance as so increased shall be paid
for time on and after that date and until the first day of April
immediately following the date of application. The base allowance
shall be increased by the same percentage for annual adjustments
beginning with the adjustment effective for time commencing with that
annual adjustment.
For the purposes of this section, all contributions, liabilities,
actuarial interest rates, and other valuation factors shall be
determined on the
basis of actuarial assumptions and methods which, in the aggregate,
are reasonable and which, in combination, offer the actuary's best
estimate of anticipated experience under the system.
The additional employer contributions required under this section
shall be computed as a level percentage of member compensation. The
additional contribution rate required at the time this section is
added to a contract shall not be less than the sum of (1) the
actuarial normal cost and (2) the additional contribution required to
amortize the increase in accrued liability attributable to benefits
elected under this section over a period of not more than 30 years
from the date this section becomes effective in the public agency's
contract.
This section shall not apply to any contracting agency nor to the
employees of any contracting agency unless and until the agency
elects to be subject to this section by amendment to its contract
made in the manner prescribed for approval of contracts, except that
an election among the employees is not required, or, in the case of
contracts made after January 1, 1979, by express provision in the
contract making the contracting agency subject to this section.
21318. In addition to the increase of allowance authorized by and
granted pursuant to Section 21313 and notwithstanding the limitation
in subdivision (b) of Section 21329, any monthly allowance computed
under or limited by any section other than Section 21362, as amended
by Chapter 96 of the Statutes of 1971, and paid with respect to a
local safety member whose retirement for service or nonindustrial
death before retirement occurred, or who was granted an industrial or
nonindustrial disability retirement, prior to the date the
contracting agency elected to be subject to Section 21362 as so
amended, shall be increased by 15 percent. The percentage shall be
applied to the allowance payable on the date this section becomes
applicable to the contracting agency and the allowance as so
increased shall be paid for time on and after that date and until the
first day of April immediately following the date of application.
The base allowance shall be increased by the same percentage for
annual adjustments beginning with the adjustment effective for time
commencing with that annual adjustment.
For the purposes of this section, all contributions, liabilities,
actuarial interest rates, and other valuation factors shall be
determined on the basis of actuarial assumptions and methods that, in
the aggregate, are reasonable and that, in combination, offer the
actuary's best estimate of anticipated experience under this system.
The additional employer contributions required under this section
shall be computed as a level percentage of member compensation. The
additional contribution rate required at the time this section is
added to a contract shall not be less than the sum of (1) the
actuarial normal cost and (2) the additional contribution required to
amortize the increase in accrued liability attributable to benefits
elected under this section over a period of not more than 30 years
from the date this section becomes effective in the public agency's
contract.
This section shall not apply to any contracting agency nor to the
employees of any contracting agency until the agency elects to be
subject to this section by amendment to its contract made in the
manner prescribed for approval of contracts, except that an election
among the employees is not required, or, in the case of contracts
made after January 1, 1991, by express provision in the contract
making the contracting agency subject to this section.
21319. In addition to the increase of allowance authorized by and
granted pursuant to Section 21313 and notwithstanding the limitation
in subdivision (b) of Section 21329, any monthly allowance computed
under or limited by a retirement formula applicable to local
miscellaneous members who retired prior to July 1, 1971, or to local
miscellaneous members who so retired and then were reinstated from
retirement and retired again after July 1, 1971, and whose allowance
is based upon such a formula and paid with respect to a local
miscellaneous member whose retirement or whose initial retirement or
death before retirement occurred prior to July 1, 1971, shall be
increased by 15 percent. The percentage shall be applied to the
allowance payable on the date this section becomes applicable to the
contracting agency and the allowance as so increased shall be paid
for time on and after that date and until the first day of April
immediately following the date of the application. The base
allowance shall be increased by the same percentage for annual
adjustments beginning with the adjustment effective for time
commencing with that annual adjustment.
This section shall apply only to the portion of the allowance as
based on service in employment with the employer electing to be
subject to this section.
This section shall not apply to any contracting agency nor to the
employees of any contracting agency until the agency elects to be
subject to the provisions of this section by amendment to its
contract made in the manner prescribed for approval of contracts,
except that an election among the employees is not required, or, in
the case of contracts made after January 1, 1976, by express
provision in the contract making the contracting agency subject to
this section.
21320. (a) In addition to the increase in allowance authorized by
and granted pursuant to Section 21313, and notwithstanding the
limitation on such increases imposed by this article, the monthly
allowance paid with respect to a state member, other than a school
member, who retired or died prior to January 1, 1981, shall be
increased by 4 percent.
(b) The 4 percent shall be applied to the allowance payable on
July 1, 1981, less the amount of the allowance paid pursuant to
Section 21231, and the allowance as so increased shall be paid for
time on and after that date and until April 1, 1982. The base
allowance shall be the allowance as so increased, less payments
pursuant to Section 21231, for annual adjustments effective for time
commencing on April 1, 1982.
21321. In addition to the increase in allowance authorized by and
granted pursuant to Section 21313, and notwithstanding the
limitation on those increases imposed by this article, the monthly
allowance paid with respect to a school member or a local member
employed by a school district or a county superintendent of schools,
and with respect to a school member, as defined in Section 20019.2,
as added by Chapter 213 of the Statutes of 1977, who retired or died
prior to January 1, 1974, shall be increased by the percentage set
forth opposite the period in the following table during which
retirement became effective or death occurred:
Period during which retirement
or death occurred: Percentage:
On or before December 31, 1965 ............. 15%
12 months ending December 31, 1966 ......... 14%
12 months ending December 31, 1967 ......... 13%
12 months ending December 31, 1968 ......... 12%
12 months ending December 31, 1969 ......... 9%
12 months ending December 31, 1970 ......... 6%
12 months ending December 31, 1971 ......... 5%
12 months ending December 31, 1972 ......... 4%
12 months ending December 31, 1973 ......... 3%
The percentage shall be applied to the allowance payable on
January 1, 1979, after the increase, if any, authorized by Section
22315.
21322. (a) Section 21320 shall apply to any contracting agency
which makes an election pursuant to subdivision (b).
(b) Subdivision (a) shall not apply to any contracting agency
unless and until the contracting agency elects to be subject to
subdivision (a) by amendment to its contract in the manner prescribed
for approval of contracts or, in the case of contracts made after
January 1, 1984, by express provision in the contract making the
contracting agency subject to the provisions of subdivision (a).
21323. In addition to the increase in allowance authorized by and
granted pursuant to the provisions of Section 21313, and
notwithstanding the limitation on such increases imposed by this
article, the monthly allowance paid with respect to a state member,
other than a school member, who retired or died prior to July 1,
1974, shall be increased by the percentage set forth opposite the
period in the following table during which retirement became
effective or death occurred:
Period during which retirement
or death occurred: Percentage:
On or before December 31, 1965 ............ 7%
12 months ending December 31, 1966 ........ 6%
12 months ending December 31, 1967 ........ 5%
12 months ending December 31, 1968 ........ 4%
12 months ending December 31, 1969 ........ 3%
18 months ending June 30, 1971 ............ 2%
36 months ending June 30, 1974 ............ 1%
The percentage shall be applied to the allowance payable on July
1, 1976, and the allowance as so increased shall be paid for time on
and after that date and until the first day of April 1977. The base
allowance shall be the allowance as so increased and the base year
shall be the calendar year 1975 for annual adjustments of allowances
increased under this section effective for time commencing on April
1, 1977.
21324. In addition to the increase in allowance authorized by and
granted pursuant to the provisions of Section 21313, and
notwithstanding the limitation on those increases imposed by this
article, the monthly allowance paid with respect to a school member
or a local member employed by a school district or a county
superintendent of schools, and with respect to a school member, as
defined in Section 20019.2, who retired or died prior to July 1,
1974, shall be increased by the percentage set forth opposite the
period in the following table during which retirement became
effective or death occurred:
Period during which retirement
or death occurred: Percentage:
On or before December 31, 1965 ............. 7%
12 months ending December 31, 1966 ......... 6%
12 months ending December 31, 1967 ......... 5%
12 months ending December 31, 1968 ......... 4%
12 months ending December 31, 1969 ......... 3%
18 months ending June 30, 1971 ............. 2%
36 months ending June 30, 1974 ............. 1%
The percentage shall be applied to the allowance payable on
January 1, 1979, after the increase, if any, authorized by Sections
21315 and 21321. The allowance as so increased shall be paid for
time on and after January 1, 1979, and until the first day of April
1979. The base allowance shall be the allowance as so increased and
the base year shall be the calendar year 1977 for annual adjustments
of allowances increased under Section 21315, Section 21321, and this
section effective for time commencing on April 1, 1979.
21325. In addition to the increase in allowance authorized by and
granted pursuant to the provisions of Section 21313, and
notwithstanding the limitation on those increases imposed by this
article, the monthly allowance paid with respect to a local member,
other than a school member, who retired or died prior to January 1,
1974, shall be increased by the percentage set forth opposite the
period in the following table during which retirement became
effective or death occurred:
Period during which retirement
or death occurred: Percentage:
On or before December 31, 1965 .............. 15%
12 months ending December 31, 1966 .......... 14%
12 months ending December 31, 1967 .......... 13%
12 months ending December 31, 1968 .......... 12%
12 months ending December 31, 1969 .......... 9%
12 months ending December 31, 1970 .......... 6%
12 months ending December 31, 1971 .......... 5%
12 months ending December 31, 1972 .......... 4%
12 months ending December 31, 1973 .......... 3%
The percentage shall be applied to the allowance payable on the
date this section becomes applicable to the contracting agency, and
the allowance as so increased shall be paid for time on and after
that date and until the first day of April immediately following the
date of application. The base allowance shall be the allowance as
increased under this section. The base year for annual adjustments
of allowances increased by this section shall be the calendar year
preceding the year of increase if the increase date is after April
1st of any calendar year, and the second calendar year preceding the
year of increase if the increase date is on or before April 1st of
any calendar year.
This section shall not apply to any contracting agency, unless and
until the agency elects to be subject to the provisions of this
section by amendment to its contract made in the manner prescribed
for approval of contracts or, in the case of contracts made after the
date this section is operative, by express provision in the contract
making the contracting agency subject to the provisions of this
section.
21326. In addition to the increase in allowance authorized by and
granted pursuant to the provisions of Section 21313, and
notwithstanding the limitation on such increases imposed by this
article, the monthly allowance paid with respect to a local member,
other than a school member, who retired or died prior to July 1,
1974, shall be increased by the percentage set forth opposite the
period in the following table during which retirement became
effective or death occurred:
Period during which retirement
or death occurred: Percentage:
On or before December 31, 1965 .............. 7%
12 months ending December 31, 1966 .......... 6%
12 months ending December 31, 1967 .......... 5%
12 months ending December 31, 1968 .......... 4%
12 months ending December 31, 1969 .......... 3%
18 months ending June 30, 1971 .............. 2%
36 months ending June 30, 1974 .............. 1%
The percentage shall be applied to the allowance payable on the
date this section becomes applicable to the contracting agency, and
the allowance as so increased shall be paid for time on and after
that date and until the first day of April immediately following the
date of application. The base allowance shall be the allowance as
increased under this section. The base year for annual adjustments
of allowances increased by this section shall be the calendar year
preceding the year of increase if the increase date is after April
1st of any calendar year, and the second calendar year preceding the
year of increase if the increase date is on or before April 1st of
any calendar year.
This section shall not apply to any contracting agency, unless and
until the agency elects to be subject to the provisions of this
section by amendment to its contract made in the manner prescribed
for approval of contracts or, in the case of contracts made after the
date this section is operative, by express provision in the contract
making the contracting agency subject to the provisions of this
section.
21327. In addition to the increase in allowance authorized and
granted pursuant to provisions of Section 21313, and notwithstanding
the limitation on such increases imposed by this article, effective
January 1, 1980, or the date this section becomes applicable to the
contracting agency, the monthly allowance paid with respect to a
state or local member, other than a school member, who retired or
died prior to January 1, 1975, shall be increased by the percentage
set forth opposite the year of retirement or death in the following
schedule:
Period During Which Retirement
or Death Occurred Percentage
12 months ending Dec. 31, 1967 ............ 1.51
12 months ending Dec. 31, 1968 ............ 1.26
12 months ending Dec. 31, 1969 ............ 1.86
12 months ending Dec. 31, 1970 ............ 2.55
6 months ending June 30, 1971 ............ 1.91
6 months ending Dec. 31, 1971 ............ 7.05
12 months ending Dec. 31, 1972 ............ 6.76
12 months ending Dec. 31, 1973 ............ 4.45
6 months ending June 30, 1974 ............ 0.47
6 months ending Dec. 31, 1974 ............ 1.31
The percentage shall be applied to the allowance payable on
January 1, 1980, or the date this section becomes applicable to the
contracting agency, and the allowance as so increased shall be paid
for time on and after the date and until the first day of April
immediately following the date of application. The base allowance
shall be the allowance as increased under this section. The base
year for annual adjustments of allowances increased by this section
shall be the calendar year preceding the year of increase if the
increase date is after April 1st of any calendar year, and the second
calendar year preceding the year of increase if the increase date is
on or before April 1st of any calendar year.
This section shall not apply to any contracting agency, unless and
until the agency elects to be subject to the provisions of this
section by amendment to its contract made in the manner prescribed
for approval of contracts or, in the case of contracts made after the
effective date, by express provision in the contract making the
contracting agency subject to the provisions of this section.
21328. In addition to the increase in allowance authorized and
granted pursuant to the provisions of Section 21313 and
notwithstanding the limitation on such increases imposed by this
article, effective January 1, 1980, the monthly allowance paid with
respect to a school member or local member employed by a school
district or a county superintendent of schools who retired or died
prior to July 1, 1975, shall be increased by the percentage set forth
opposite the year of retirement or death in the following schedule:
Period During Which Retirement
or Death Occurred Percentage
12 months ending Dec. 31, 1966 ............ 0.62
12 months ending Dec. 31, 1967 ............ 3.21
12 months ending Dec. 31, 1968 ............ 2.97
12 months ending Dec. 31, 1969 ............ 3.57
12 months ending Dec. 31, 1970 ............ 4.26
6 months ending June 30, 1971 ............ 3.62
6 months ending Dec. 31, 1971 ............ 8.86
12 months ending Dec. 31, 1972 ............ 8.57
12 months ending Dec. 31, 1973 ............ 6.22
6 months ending June 30, 1974 ............ 2.16
6 months ending Dec. 31, 1974 ............ 3.00
The allowance as so increased shall be paid for time on and after
January 1, 1980, and until April 1, 1980. The base allowance shall
be the allowance as so increased and the base year shall be the
calendar year of 1978 for annual adjustments of allowances increased
under this section for time commencing on April 1, 1980.
21329. The adjustments provided by this article are subject to
the following limitations:
(a) No adjustment shall be made for any year for which the
adjustment is less than 1 percent of the base allowance, and the
adjustment for any year shall not exceed 6 percent of the base
allowance.
(b) No monthly allowance in any year may exceed an amount equal to
the base allowance increased by 2 percent per year compounded for
the number of years intervening between the end of the base year and
the beginning of the calendar year in which the adjustment is made.
(c) No monthly allowance in any year shall be less than the base
allowance.
(d) No adjustment shall be made in any year in which the actuarial
interest rate is less than 4.5 percent.
21330. Notwithstanding anything to the contrary in this article,
the monthly allowance for service credited under the Second Tier
shall be adjusted annually beginning with the second calendar year
following retirement for time commencing on April 1 and payable on
the first day of May. The adjusted monthly allowance shall be equal
to the base allowance increased by 3 percent per year compounded for
the number of years intervening between the end of the base year and
the beginning of the calendar year in which the adjustment is made.
21331. An adjustment in a monthly allowance under this article
shall be derived from or credited to contributions of the employer,
and if the monthly allowance is a retirement allowance the adjustment
shall be applied as an increase or decrease, as the case may be, in
the current and prior service pensions.
21332. Increases in allowances granted under former Section
21251.4, as amended by Chapter 936 of the Statutes of 1957, and
former Sections 21251.5 and 21251.6, as amended by Chapter 940 of the
Statutes of 1967, prior to their repeal by Chapter 752 of the
Statutes of 1969, or under former Section 21251.75, as added by
Chapter 149 of the Statutes of 1968, prior to July 1, 1972, shall be
included in the base allowance for the purpose of any adjustment
under this article after the date of the increase. Former Section
21251.75 shall not apply to any contracting agency or its employees,
which agency has not approved an amendment to its contract prior to
July 1, 1972, electing to be subject thereto.
21333. The amendments to this article by Chapter 647 of the
Statutes of 1970 defining "base year" and changing the maximum
adjusted allowance which may be paid in any year shall apply only
with respect to adjustments in allowances for time commencing on or
after the annual adjustment date next following the date upon which
the actuarial interest rate is fixed at 5.25 percent or higher. The
amendment shall not apply to allowances payable for service to a
public agency whose contract is terminated prior to December 1, 1970.
21334. In addition to the increase in allowance authorized and
granted pursuant to provisions of Section 21313, and notwithstanding
the limitation on those increases imposed by this article, effective
July 1, 1977, the monthly allowance paid with respect to a state
member, other than a school member, who retired or died prior to
January 1, 1976, shall be increased by 3 percent of the first four
hundred dollars ($400) of the allowance; provided, however, that no
increase under this section shall exceed twelve dollars ($12) per
month.
The allowance as so
increased shall be paid for time on and after July 1, 1977, and until
April 1, 1978. The base allowance shall be the allowance as so
increased and the base year shall be the calendar year of 1976 for
annual adjustments of allowances increased under this section for
time commencing on April 1, 1978.
Where a member to or on account of whom an increased retirement
allowance is payable under this section has elected pursuant to
Article 6 (commencing with Section 21450) to have his or her
retirement allowance modified in accordance with an optional
settlement provided in Section 21456, 21457, or 21458, if both the
retired member and his or her beneficiary are living on September 30,
1977, the increase provided by this section shall be an amount equal
to the percentage of the allowance being paid to the retired person,
and upon death of the retired person, or upon death of his or her
beneficiary if a different allowance is payable to the retired person
because of the death, an equal percentage of the amount then payable
to the survivor; and if either the retired person or his or her
beneficiary is not living on September 30, 1977, then the increase
provided under this section shall be an amount equal to 3% of the
first four hundred dollars ($400) of the allowance being paid to the
survivor; provided, however, that no increase under this section
shall exceed twelve dollars ($12) per month.
The allowance as so increased shall be paid for time on and after
July 1, 1977, and until April 1, 1978. The base allowance shall be
the allowance as so increased and the base year shall be the calendar
year of 1976 for annual adjustments of allowances increased under
this section for time commencing on April 1, 1978.
21335. Notwithstanding Section 21329, the adjustments in
allowances for local members provided by this article for the time
commencing on and after the annual adjustment date following the date
specified by the contracting agency in its contract shall be subject
to the following limitations:
(a) No adjustment shall be made for any year for which the
adjustment is less than 1 percent of the base allowance.
(b) No monthly allowance in any year may exceed an amount equal to
the base allowance increased by 3, 4, or 5 percent per year
compounded for the number of years intervening between the end of the
base year and the beginning of the calendar year in which the
adjustment is made. A contracting agency shall designate the
applicable percentage and may amend its contract to increase the
percentage.
(c) No monthly allowance in any year shall be less than the base
allowance.
(d) No adjustment shall be made in any year in which the actuarial
interest rate is less than 5.25 percent.
However, the adjusted allowances in years following the year in
which the contract of an agency subject to this section is terminated
may not exceed the adjusted allowance in the year of contract
termination or the amount determined in accordance with subdivision
(b) of Section 21329, whichever is the greater.
For the purposes of this section, all contributions, liabilities,
actuarial interest rates, and other valuation factors shall be
determined on the basis of actuarial assumptions and methods that, in
the aggregate, are reasonable and that, in combination, offer the
actuary's best estimate of anticipated experience under this system.
The additional employer contributions required as a result of
making this section applicable shall be computed as a level
percentage of member compensation. The additional contribution rate
required, at the time this section is added to a contract, shall not
be less than the sum of (1) the actuarial normal cost and (2) the
additional contribution required to amortize the increase in accrued
liability attributable to benefits elected under this section over a
period of not more than 30 years from the date this section becomes
effective in the public agency's contract.
This section shall not apply to any contracting agency, unless and
until the agency elects to be subject to this section by amendment
to its contract made in the manner prescribed for approval of
contracts or, in the case of contracts made after January 1, 1975, by
express provision in the contract making the contracting agency
subject to this section.
21336. (a) The board shall transfer the sum of one hundred thirty
million dollars ($130,000,000) from the reserve for deficiencies
retained in the retirement fund pursuant to Section 20174 into a
special account which is appropriated to the board without regard to
fiscal years, for use for the sole purpose of providing quarterly
increases from October 1, 1982, through September 30, 1984, as
specified in subdivision (d), in the monthly allowance of every
retired person or survivor or beneficiary of a state or local member
or retired person, who was eligible to receive any allowance on
December 31, 1979, or who receives a benefit on account of a retired
member who was eligible to receive an allowance on December 31, 1979,
notwithstanding the limitations on those increases imposed by this
article and in addition to any other adjustment made pursuant to this
article.
(b) Whenever the board determines that there are sufficient funds
in the special account created pursuant to subdivision (a), the board
shall apply those funds to the increases authorized by this section.
If the funds in the special account are not sufficient to pay the
increases prescribed in subdivision (d), the board shall
proportionately reduce all payments.
(c) The board shall inform each recipient of benefits under
subdivision (a) that the increases are not cumulative and shall not
be included in their base allowance and may be available for only a
limited period of time.
(d) The total quarterly increases payable for the period from
October 1, 1982, to September 30, 1984, shall be 10 percent of the
quarterly allowance payable to an annuitant or eligible survivor or
beneficiary on October 1, 1980. The board, on October 1, 1982, and,
upon the commencement of each such quarter thereafter, shall pay the
benefit provided by this section for the succeeding quarter.
21337. (a) On an annual basis, the board shall transfer the
lesser of either of the following:
(1) The amount necessary to increase all monthly allowances paid
by this system to 75 percent of the purchasing power of the initial
monthly allowances.
(2) Up to 1.1 percent of the net earnings on member contributions,
as determined by Section 20178, to a supplemental account to fund
the purchasing power protection allowance.
(b) The funds so transferred to the supplemental account shall be
utilized to increase all monthly allowances paid by this system up to
a maximum of 75 percent of the purchasing power, as determined by
the board, of the initial monthly allowances that were received by
every retired person or survivor or beneficiary of a state, school,
or local member or retired person who was eligible to receive any
allowance at the end of each fiscal year. Funds remaining in the
account after the payment of benefits under this section shall be
transferred to the employer accounts.
21338. If a court of competent jurisdiction, from which all
appeals are final, holds that Section 20798 is invalid, Section 21337
shall become inoperative.
Article 4. Retirement for Service
21350. Upon retirement for service, a member is entitled to
receive a service retirement allowance which shall consist of:
(a) The member's service retirement annuity, including, with
respect to patrol members and solely in respect to the portion of the
annuity derived from the normal accumulated contributions of those
members, respectively, automatic continuance to surviving spouse, or
if there is no spouse at retirement, to surviving children, or if
there are no eligible surviving children at retirement, to surviving
dependent parents as provided in this article.
(b) The member's current service pension.
(c) The member's prior service pension.
21351. The actual amount of annuity receivable by a member upon
retirement shall be the actuarial equivalent of his or her
accumulated contributions.
21352. The service retirement annuity is the sum of the annuities
which are the actuarial equivalents of the normal and additional
accumulated contributions of a member at the time of his or her
retirement.
21353. The combined current and prior service pensions for a
local miscellaneous member, a school member, and for a state
miscellaneous member, is a pension derived from the contributions of
the employer sufficient, when added to the service retirement annuity
that is derived from the accumulated normal contributions of the
member at the date of retirement, to equal the fraction of
one-fiftieth of the member's final compensation set forth opposite
the member's age at retirement, taken to the preceding completed
quarter year, in the following table, multiplied by the number of
years of current and prior service except service in a category of
membership other than that of state miscellaneous member or local
miscellaneous member or school member, with which the member is
entitled to be credited at retirement:
Age of Retirement Fraction
50 .................... .546
50 1/4 ................ .554
50 1/2 ................ .562
50 3/4 ................ .570
51 .................... .578
51 1/4 ................ .586
51 1/2 ................ .595
51 3/4 ................ .603
52 .................... .612
52 1/4 ................ .621
52 1/2 ................ .630
52 3/4 ................ .639
53 .................... .648
53 1/4 ................ .658
53 1/2 ................ .668
53 3/4 ................ .678
54 .................... .688
54 1/4 ................ .698
54 1/2 ................ .709
54 3/4 ................ .719
55 .................... .730
55 1/4 ................ .741
55 1/2 ................ .753
55 3/4 ................ .764
56 .................... .776
56 1/4 ................ .788
56 1/2 ................ .800
56 3/4 ................ .813
57 .................... .825
57 1/4 ................ .839
57 1/2 ................ .852
57 3/4 ................ .865
58 .................... .879
58 1/4 ................ .893
58 1/2 ................ .908
58 3/4 ................ .923
59 .................... .937
59 1/4 ................ .953
59 1/2 ................ .969
59 3/4 ................ .985
60 ................... 1.000
60 1/4 ............... 1.017
60 1/2 ............... 1.034
60 3/4 ............... 1.050
61 ................... 1.067
61 1/4 ............... 1.084
61 1/2 ............... 1.101
61 3/4 ............... 1.119
62 ................... 1.136
62 1/4 ............... 1.154
62 1/2 ............... 1.173
62 3/4 ............... 1.191
63 and over .......... 1.209
The fractions specified in the above table shall be reduced by
one-third as applied to that part of final compensation that does not
exceed four hundred dollars ($400) per month for all service of a
member any of whose service has been included in the federal system.
This reduction shall not apply to a member employed by a contracting
agency that enters into a contract after July 1, 1971, and elects
not to be subject to this paragraph or with respect to service
rendered after the termination of coverage under the federal system
with respect to the coverage group to which the member belongs.
This section shall apply only to members whose retirement is
effective on or after July 1, 1971.
The improved retirement allowance provided by this section is
granted subject to future reduction prior to a member's retirement,
by offset of federal system benefits or otherwise, as the Legislature
may from time to time deem appropriate because of changes in the
federal system benefits.
21354. The combined current and prior service pensions for a
local miscellaneous member is a pension derived from the contribution
of the employer sufficient, when added to the service retirement
annuity that is derived from the accumulated normal contributions of
the member at the date of retirement, to equal the fraction of
one-fiftieth of the member's final compensation set forth opposite
the member's age at retirement, taken to the preceding completed
quarter year, in the following table, multiplied by the number of
years of current and prior service except service in a category of
membership other than that of local miscellaneous member with which
the member is entitled to be credited at retirement:
Age of Retirement Fraction
50 ....................................................... 0.713
50 1/4 ................................................... 0.725
50 1/2 ................................................... 0.737
50 3/4 ................................................... 0.749
51 ....................................................... 0.761
51 1/4 ................................................... 0.775
51 1/2 ................................................... 0.788
51 3/4 ................................................... 0.801
52 ....................................................... 0.814
52 1/4 ................................................... 0.828
52 1/2 ................................................... 0.843
52 3/4 ................................................... 0.857
53 ....................................................... 0.871
53 1/4 ................................................... 0.886
53 1/2 ................................................... 0.902
53 3/4 ................................................... 0.917
54 ....................................................... 0.933
54 1/4 ................................................... 0.950
54 1/2 ................................................... 0.966
54 3/4 ................................................... 0.983
55 ....................................................... 1.000
55 1/4 ................................................... 1.007
55 1/2 ................................................... 1.013
55 3/4 ................................................... 1.020
56 ....................................................... 1.026
56 1/4 ................................................... 1.033
56 1/2 ................................................... 1.039
56 3/4 ................................................... 1.046
57 ....................................................... 1.052
57 1/4 ................................................... 1.059
57 1/2 ................................................... 1.065
57 3/4 ................................................... 1.072
58 ....................................................... 1.078
58 1/4 ................................................... 1.085
58 1/2 ................................................... 1.091
58 3/4 ................................................... 1.098
59 ....................................................... 1.105
59 1/4 ................................................... 1.111
59 1/2 ................................................... 1.118
59 3/4 ................................................... 1.124
60 ....................................................... 1.131
60 1/4 ................................................... 1.137
60 1/2 ................................................... 1.144
60 3/4 ................................................... 1.150
61 ....................................................... 1.157
61 1/4 ................................................... 1.163
61 1/2 ................................................... 1.170
61 3/4 ................................................... 1.176
62 ....................................................... 1.183
62 1/4 ................................................... 1.189
62 1/2 ................................................... 1.196
62 3/4 ................................................... 1.202
63 ....................................................... 1.209
The fraction specified in the above table shall be
reduced by one-third as applied to that part of final compensation
that does not exceed four hundred dollars ($400) per month for all
services of a member any of whose service has been included in the
federal system. This reduction shall not apply to a member employed
by a contracting agency that enters into a contract after July 1,
1971, and who elects not to be subject to this paragraph or with
respect to service rendered after the termination of coverage under
the federal system with respect to the coverage group to which the
member belongs.
This section shall supersede Section 21353 with respect to all
local miscellaneous members who retire after the date this section
becomes applicable to their respective employers.
This section shall not apply to a contracting agency nor its
employees until the contracting agency elects to make all local
miscellaneous members subject to it by amendment to its contract made
in the manner prescribed for approval of contracts or in the case of
a new contract, by express provision of the contract. The operative
date of this section with respect to a local miscellaneous member
shall be the effective date of the amendment to his or her employer's
contract electing to be subject to this section.
21355. Notwithstanding Section 21353, if the modification to the
federal-state agreement occurred on or after July 1, 1971, whenever
the fraction of final compensation is reduced pursuant to Section
21353 because service of a member has been included in the federal
system, the reduction shall apply only as to service after the
effective date of the member's coverage under the federal system.
This section shall apply to those members whose effective date of
retirement is on or after July 1, 1971.
21356. (a) A member who elects, pursuant to Article 1.7
(commencing with Section 19996.30) of Chapter 7 of Part 2.6 or
pursuant to Sections 21110 through 21115, to participate in partial
service retirement, while so participating, shall receive a reduced
service retirement allowance. The reduced service retirement
allowance shall be the amount of the service retirement allowance to
which the employee would otherwise have been entitled had he or she
fully retired on the effective date of the partial service
retirement, reduced by the percentage of the employee's full-time
work which the employee has elected to work while on partial service
retirement.
(b) Article 6 (commencing with Section 21450) shall not apply to
an employee who is participating in reduced worktime for partial
service retirement.
(c) For a member who elects pursuant to Article 1.7 (commencing
with Section 19996.30) of Chapter 7 of Part 2.6 or pursuant to
Sections 21110 through 21115 to become fully retired, the current
service pension, or current and prior service pensions, as the case
may be, upon his or her full service retirement shall be (1) the sum
of a current service pension calculated on the basis of service
rendered during participation in reduced worktime in accordance with
the formula applicable to his or her current service pension, plus
his or her current service pension, or current and prior service
pensions, as the case may be, as it was prior to his or her full
service retirement, provided that full service retirement occurs
before he or she renders, while participating in reduced worktime for
partial service retirement, one year of state service credited under
this system; or (2) if he or she has rendered one year or more of
state service while participating in reduced worktime for partial
service retirement, a current service pension, or current and prior
service pensions, as the case may be, based on the total years of
service with which the member is entitled to be credited, calculated
on the basis of the formula currently applicable to the employment in
which the service was rendered. A member shall receive service
credit for service during participation in reduced worktime for
partial retirement and service credited at the time of the election
to participate in reduced worktime for partial retirement.
21357. For a member reinstated from service retirement or partial
service retirement, the current service pension, or current and
prior service pensions, as the case may be, upon his or her service
retirement subsequent to the reinstatement, shall be the sum of (1) a
current service pension calculated on the basis of service rendered
after reinstatement in accordance with the formula applicable to him
or her in that service and membership, plus, if the subsequent
retirement occurs before he or she renders, after his or her
reinstatement, at least one year of state service credited under this
system, (2) his or her current service pension, or current and prior
service pensions, as the case may be, as it was prior to his or her
reinstatement, adjusted for any service on which the pension was
based which was included in coverage of the federal system during
reinstatement according to the formula applicable to the service in
employment for which he or she was retired, and further adjusted
according to any change after reinstatement in the provisions
governing the calculation of his or her pension that would have
applied to him or her had he or she continued in retirement but been
subject to the formula applied in the first adjustment; or, for state
miscellaneous and state industrial service subject to Section 21076,
in lieu of (2), plus (3) a current service pension, or current and
prior service pensions, as the case may be, as it would have been
prior to his or her reinstatement under the formula applicable to
Section 21076, adjusted for any service on which the pension was
based that was included in coverage of the federal system during
reinstatement according to the formula applicable to the service in
employment for which he or she was retired, and further adjusted
according to any change after reinstatement in the provisions
governing the calculations of his or her pension which would have
applied to him or her had he or she continued in retirement and been
subject to the formula applicable to Section 21076, or if he or she
has rendered one year or more of state service after reinstatement,
in lieu of (2) or (3), plus (4), a current service pension based on
current service rendered prior to reinstatement, calculated on the
basis of the formula currently applicable to the employment in which
the service was rendered but on the basis of an age taken to the
preceding completed quarter year but not less than the minimum
retirement age applicable to him or her at his or her last retirement
and determined by deducting from his or her at his or her subsequent
retirement, the aggregate time during which he or she was under
retirement. For a member reinstated from nonindustrial disability
retirement, the current service pension upon his or her service
retirement after attaining an age one year less than the minimum age
at which he or she could have retired without an actuarial discount
because of age in the employment from which he or she was last
retired, or upon his or her disability retirement after attaining the
minimum age, and subsequent to reinstatement, shall be calculated in
the manners described in
the preceding sentence, but the age determined upon subsequent
retirement after rendering at least one year of state service
credited under this system shall not be taken at less than one year
less than the minimum age if the subsequent retirement is for
service, or the minimum age if the retirement is for disability.
The current service pension otherwise payable under this section
to a member whose allowance prior to reinstatement was paid pursuant
to his or her election under Section 21461 shall be reduced by the
actuarial equivalent, on the date of retirement subsequent to
reinstatement, of the amount (converted as below), if any, by which:
(a) The total amount, paid in the period during which a temporary
annuity was included in the payments, the amount being reduced by the
total amount that would have been payable during that period had the
election not been made; exceeds
(b) The excess of the total amount that would have been payable,
had the election not been made, during the time subsequent to that
period and prior to reinstatement over the total amount actually paid
during that time.
The amount determined by the above formula shall be converted to
an amount equaling the actuarial equivalent on the date of
reinstatement and this latter amount shall be the basis of the
actuarial equivalent, on the date of retirement subsequent to
reinstatement.
Actuarial equivalents required by this section shall be based on
the interest rate and mortality tables in use by this system on the
date of retirement subsequent to reinstatement.
Notwithstanding this section, or any other provision of this part,
the current service pension payable to any member subject to this
section who rendered one year or more of state service credited under
this system after reinstatement on retirement for service subsequent
to reinstatement from service retirement for any credited service
for which a current service pension was paid prior to reinstatement
shall not be less than the current service pension that would be
payable on the date of the subsequent retirement had the member not
been reinstated, or for state miscellaneous and state industrial
service subject to Section 21076, the current service pension payable
for any credited service for which a current service pension was
paid prior to reinstatement shall not be less than the current
service pension that would have been payable on the date of the
subsequent retirement had the member's retirement been subject to the
formula under Section 21076 and had not been reinstated, adjusted,
however, by any reduction under this section because of an election
under Section 21461 and, for any service so credited which was
included in coverage of the federal system during reinstatement,
according to the formula applicable to the service in employment from
which he or she was retired.
21358. Notwithstanding Section 21357, the retirement allowance of
a state member, other than a university member, payable upon
retirement within one year of reinstatement from an earlier
retirement of six months or less and based on service prior to
reinstatement shall not include any allowance based on service
credited under Section 20963.
Notwithstanding former Section 20019.1, as amended by Chapter 1110
of the Statutes of 1979, this section shall not apply to school
members.
21359. Notwithstanding Section 21357, in determining the method
of calculation of subsequent retirement benefits for a university
employee who, on the date of reemployment and reinstatement from
retirement, did not have the right to elect membership in this
system, the service rendered under the University of California
Retirement System after reemployment and reinstatement shall be
considered service rendered under this system.
21360. Every current service pension, prior service pension,
disability retirement pension, and special death benefit payable on
or after December 1, 1967, to, or on the account of the death of, any
state patrol member who was retired or who died prior to December 1,
1967, is hereby increased to the amount it would be if Section
20038, as it existed on December 1, 1967, had been in effect on the
date of the actual retirement or death of the member. This section
does not authorize any decrease in any pension or benefit, nor does
this section give any retired member, his or her successors in
interest, or his or her beneficiary, or any payee of any special
death benefit, any claim against the state for any increase in any
pension or benefit paid or payable prior to December 1, 1967.
Notwithstanding former Section 21208, as added by Chapter 1421 of
the Statutes of 1945, and Section 21209, as added by Chapter 1133 of
the Statutes of 1947, this section shall not apply to warden and
forestry members.
21361. The current and prior service pensions for a state
miscellaneous, school and local miscellaneous member retired with an
effective date prior to July 1, 1971, shall be in the amount
determined in accordance with the provisions of this part as they
read and applied to that member on June 30, 1971, subject to
continuing adjustment under Article 3 (commencing with Section
21310).
21362. The current service pension for patrol members and the
combined current and prior service pensions for local safety members
with respect to local safety service rendered to a contracting agency
that is subject to this section is a pension derived from the
contributions of the employer sufficient when added to the service
retirement annuity that is derived from the accumulated normal
contributions of the patrol member at the date of his or her
retirement to equal the fraction of one-fiftieth of his or her final
compensation set forth opposite his or her age at retirement taken to
the preceding completed quarter-year, in the following table,
multiplied by the number of years of patrol service and local safety
service subject to this section with which he or she is credited at
retirement.
Age at retirement Fraction
50 .................. 1.0000
50 1/4 ...............1.0175
50 1/2 ...............1.0350
50 3/4 ...............1.0525
51 ...................1.0700
51 1/4 ...............1.0875
51 1/2 ...............1.1050
51 3/4 ...............1.1225
52 ...................1.1400
52 1/4 ...............1.1575
52 1/2 ...............1.1750
52 3/4 ...............1.1925
53 ...................1.2100
53 1/4 ...............1.2275
53 1/2 ...............1.2450
53 3/4 ...............1.2625
54 ...................1.2800
54 1/4 ...............1.2975
54 1/2 ...............1.3150
54 3/4 ...............1.3325
55 and over ..........1.3500
In no event shall the current service pension and the combined
current and prior service pensions under this section for all service
to all employers exceed an amount that, when added to the service
retirement annuity related to that service, equals 75 percent of
final compensation. For state members who retire on or after January
1, 1995, and with respect to service for all state employers under
this section, the benefit shall not exceed 80 percent of final
compensation. If the pension relates to service to more than one
employer and would otherwise exceed that maximum, the pension payable
with respect to each employer shall be reduced in the same
proportion as the allowance based on service to that employer bears
to the total allowance computed as though there were no limit, so
that the total of the pensions shall equal the maximum. Where a state
member retiring on or after January 1, 1995, has service under this
section with both state and local agency employers, the 80-percent
limit shall apply and the additional benefit shall be funded by
increasing the member's pension payable with respect to the state
employer.
This section shall not apply to any contracting agency, unless and
until the agency elects to be subject to the provisions of this
section by amendment to its contract made in the manner prescribed
for approval of contracts or, in the case of contracts made after the
date this section is operative, by express provision in the contract
making the contracting agency subject to the provisions of this
section.
This section shall supersede Section 21363, 21366, 21368, 21369,
or 21370, whichever is then applicable, with respect to patrol and
local safety members who retire after the date this section becomes
applicable to their respective employers.
Notwithstanding former Section 21208, as added by Chapter 1421 of
the Statutes of 1945, and Section 21209, as added by Chapter 1133 of
the Statutes of 1947, this section shall not apply to warden or
forestry members.
The Legislature reserves, with respect to any member subject to
this section, the right to provide for the adjustment of industrial
disability retirement allowances because of earnings of a retired
person and modification of the conditions and qualifications required
for retirement for disability as it may find appropriate because of
the earlier ages of service retirement made possible by the benefits
under this section.
21363. The combined current and prior service pensions for state
peace officer/firefighter members subject to this section with
respect to state peace officer/firefighter service and the combined
current and prior service pensions for local safety members with
respect to local safety service rendered to a contracting agency that
is subject to this section is a pension derived from the
contributions of the employer sufficient when added to the service
retirement annuity that is derived from the accumulated normal
contributions of the state peace officer/firefighter member at the
date of his or her retirement to equal the fraction of one-fiftieth
of his or her final compensation set forth opposite his or her age at
retirement taken to the preceding completed quarter-year, in the
following table, multiplied by the number of years of state peace
officer/firefighter service subject to this section with which he or
she is credited at retirement.
Age at Retirement Fraction
50 1.0000
50 1/4 1.0125
50 1/2 1.0250
50 3/4 1.0375
51 1.0500
51 1/4 1.0625
51 1/2 1.0750
51 3/4 1.0875
52 1.1000
52 1/4 1.1125
52 1/2 1.1250
52 3/4 1.1375
53 1.1500
53 1/4 1.1625
53 1/2 1.1750
53 3/4 1.1875
54 1.2000
54 1/4 1.2125
54 1/2 1.2250
54 3/4 1.2375
55 and over 1.2500
In no event shall the current service pension and the combined
current and prior service pensions under this section for all service
to all employers exceed an amount that, when added to the service
retirement annuity related to that service, equals 75 percent of
final compensation. For state members who retire on or after January
1, 1995, and with respect to service for all state employers under
this section, the benefit shall not exceed 80 percent of final
compensation. If the pension relates to service to more than one
employer, or this section and Section 21369, and would otherwise
exceed that maximum, the pension payable with respect to each section
or employer shall be reduced in the same proportion as the allowance
bears to the total allowance computed as though there were no limit,
so that the total of the pensions shall equal the maximum. Where a
state member retiring on or after January 1, 1995, has service under
this section with both state and local agency employers, the
80-percent limit shall apply and the additional benefit shall be
funded by increasing the member's pension payable with respect to the
state employer.
The Legislature reserves, with respect to any member subject to
this section, the right to provide for the adjustment of industrial
disability retirement allowances because of earnings of a retired
person and modification of the conditions and qualifications required
for retirement for disability as it may find appropriate because of
the earlier age of service retirement made possible by the benefits
under this section.
This section may be applied to related supervisory classes or
confidential positions for the respective bargaining units specified
in this section.
This section shall be operative with respect to state peace
officer/firefighter members in Corrections Bargaining Unit No. 6,
Protective Services and Public Safety Bargaining Unit No. 7, or
Firefighters Bargaining Unit No. 8, in accordance with a memorandum
of understanding reached between the state and the exclusive
bargaining agent in the respective unit pursuant to Chapter 10.3
(commencing with Section 3512) of Division 4 of Title 1. This
section also shall be operative with respect to the state peace
officer/firefighter members employed by a California State University
police department who are in Public Safety Unit No. 8 in accordance
with a memorandum of understanding reached between the Trustees of
the California State University and the recognized employee
organization pursuant to Chapter 12 (commencing with Section 3560) of
Division 4 of Title 1.
This section shall also be operative with respect to a "state
peace officer/firefighter member" defined in subdivision (a) of
Section 20396 if authorized by, and in accordance with, a memorandum
of understanding reached between the Trustees of the California State
University and the recognized employee organization pursuant to
Chapter 12 (commencing with Section 3560) of Division 4 of Title 1.
Nothing in this section or in any other provision of law affected
by Chapter 1320 of the Statutes of 1984 or Chapter 234 of the
Statutes of 1986 shall be construed as authorizing any future
negotiation with respect to whether or not any bargaining unit
specified in this section whose memorandum of understanding was
previously approved by the Legislature pursuant to law and this
section, shall continue to remain within the state peace
officer/firefighter membership category.
The operative date of this section with respect to members in each
of the bargaining units specified in this section shall be as
provided for in the memorandum of understanding.
This section shall not apply to a person whose effective date of
retirement is prior to the operative date of this section with
respect to the bargaining unit of the person.
This section shall be known as, and may be cited as the State
Peace Officers' and Fire Fighters' Retirement Act.
The Legislature reserves the right to subsequently modify or amend
this part in order to completely effectuate the intent and purposes
of this section and the right to not provide any new comparable
advantages if disadvantages to employees result from any modification
or amendment.
This section shall not apply to a contracting agency nor its
employees until, first, it is agreed to in a written memorandum of
understanding entered into by an employer and representatives of
employees and, second, the contracting agency elects to be subject to
it by amendment to its contract made in the manner prescribed for
approval of contracts or in the case of a new contract, by express
provision of the contract. The operative date of this section with
respect to a local safety member shall be the effective date of the
amendment to his or her employer's contract electing to be subject to
this section.
21364. A contracting agency may elect to be subject to Section
21362 with respect to only those local safety members who are local
police officers, those who are local firefighters, and those who are
local safety members as defined in Section 20421 as local safety
members.
21365. A contracting agency which is a county of the 33rd class,
as defined by Sections 28020 and 28054, as amended by Chapter 1204
of the Statutes of 1971, and which, pursuant to Chapter 10
(commencing with Section 3500) of Division 4 of Title 1, enters into
a binding memorandum of understanding which agrees to the application
of this section may elect to be subject to Section 21361 with
respect to only those local safety members who are county peace
officers as defined by Section 20436.
This section shall not apply to any contracting agency unless and
until the agency elects to be subject to this section by amendment to
its contract made in the manner prescribed for approval of contracts
or, in the case of contracts made on or after January 1, 1988, by
express provision in the contract making the contracting agency
subject to this section.
21366. The combined prior and current service pensions for patrol
members and local safety members, other than local safety members to
whom Section 21362, 21368, or 21369 applies, upon retirement at or
after age 55 is a pension derived from contributions of the employer
that, when added to that portion of the service retirement annuity
that is derived from the accumulated normal contributions of the
member, shall equal a percentage of his or her final compensation,
multiplied by the number of years of patrol, fire, police, or county
peace officer service, the percentage to be 21/2 or, if less, the
percentage obtained by division of 50 percent by the difference
between age 55 and the member's age at his or her birthday nearest to
the date of his or her first entry into any service to which this
section, former Section 21252.10, as amended by Chapter 1657 of the
Statutes of 1971, or former Section 21252.2, as amended by Chapter
752 of the Statutes of 1969, prior to their repeal by Chapter 1098 of
the Statutes of 1972 applied, whether or not the service is credited
at retirement, increased, as to service following an absence from
employment to which any of those sections applies, by the number of
completed years of the absence. Any member entering that service at
or after age 55 shall be deemed, for purposes of this section, to
have entered the service at age 54.
Upon retirement for service prior to attaining age 55, the
percentage of final compensation payable for each year of credited
service that is subject to this section shall be the product of the
percentage that would become payable at age 55 or, if greater, the
age at which the member would complete 20 years of service under
Section 21366 were he or she to continue in employment, multiplied by
the factor set forth in the following table for his or her actual
age at retirement:
If retirement occurs at age: The percent for each year of
credited service is:
50 ......................................... 0.713
50 1/4 ..................................... 0.725
50 1/2 ..................................... 0.737
50 3/4 ..................................... 0.749
51 ......................................... 0.761
51 1/4 ..................................... 0.775
51 1/2 ..................................... 0.788
51 3/4 ..................................... 0.801
52 ......................................... 0.814
52 1/4 ..................................... 0.828
52 1/2 ..................................... 0.843
52 3/4 ..................................... 0.857
53 ......................................... 0.871
53 1/4 ..................................... 0.886
53 1/2 ..................................... 0.902
53 3/4 ..................................... 0.917
54 ......................................... 0.933
54 1/4 ..................................... 0.950
54 1/2 ..................................... 0.966
54 3/4 ..................................... 0.983
The amendment to this section by Chapter 941 of the
Statutes of 1968 shall apply only to those members retiring on and
after December 1, 1968. Current and prior service pensions of those
members retired prior to December 1, 1968 shall be continued in
accordance with the provisions of this part as they existed on
November 30, 1968.
This section shall not apply to any local safety member in the
employ of an employer not subject to this section on March 4, 1972.
21367. The fraction or percentage of final compensation, for
purposes of calculating the combined prior and current service
pensions under Section 21362 or 21366 for a local safety member
retiring after the effective date of his or her coverage under the
federal system, but prior to termination of the coverage for members
in his or her employment, shall be reduced by one-third as applied to
that part of the member's final compensation that does not exceed
four hundred dollars ($400) per month.
This section shall not apply to any contracting agency nor to the
employees of any contracting agency until the agency elects to be
subject to this section by amendment to its contract made in the
manner prescribed for approval of contracts, or, in the case of
contracts made after October 1, 1965, by express provision in the
contract making the contracting agency subject to this section.
This section and Section 21362 or 21366, as the case may be, shall
supersede Section 21368 with respect to all service to a contracting
agency electing to be subject hereto. However, members in
employment of the contracting agency on the effective date of the
contract amendment subjecting the agency and its employees to this
section and Section 21366 may elect, in accordance with board rules,
to continue to be subject to Section 21368, and the contracting
agency shall be subject to Section 21368 rather than this section
with respect to members who so elect. The election shall cease to be
effective if, prior to the member's retirement, his or her employer
elects to be subject to Section 21362 or 21369 or elects to terminate
coverage of the federal system for persons in the member's
employment.
21368. The combined current and prior service pensions for a
local safety member who is an employee of a contracting agency that
is subject to this section, is an annual pension that when added to
the service retirement annuity that is derived from the accumulated
normal contributions of the member shall equal the sum of the
following:
(a) A temporary annuity based on age at retirement and length of
service computed according to the following formula:
(1) 0.50 times the product of his or her age at retirement and his
or her years of credited prior and current service not in excess of
20 years, plus
(2) 0.40 times the product of his or her age at retirement and his
or her years of credited prior and current service in excess of 20
years.
(b) The percentage of final compensation set forth opposite his or
her age at retirement in the following table multiplied by the
number of years of credited current and prior service as a safety
member in the employ of
all contracting agencies subject to this section at the time of his
or her retirement:
If retirement occurs at age: The percent for each year of
credited service is:
50 ......................................... 0.619
50 1/4 ..................................... 0.629
50 1/2 ..................................... 0.640
50 3/4 ..................................... 0.650
51 ......................................... 0.661
51 1/4 ..................................... 0.673
51 1/2 ..................................... 0.684
51 3/4 ..................................... 0.695
52 ......................................... 0.708
52 1/4 ..................................... 0.719
52 1/2 ..................................... 0.731
52 3/4 ..................................... 0.744
53 ......................................... 0.756
53 1/4 ..................................... 0.769
53 1/2 ..................................... 0.783
53 3/4 ..................................... 0.796
54 ......................................... 0.810
54 1/4 ..................................... 0.824
54 1/2 ..................................... 0.839
54 3/4 ..................................... 0.853
55 ......................................... 0.868
55 1/4 ..................................... 0.884
55 1/2 ..................................... 0.900
55 3/4 ..................................... 0.916
56 ......................................... 0.931
56 1/4 ..................................... 0.949
56 1/2 ..................................... 0.966
56 3/4 ..................................... 0.983
57 ......................................... 1.001
57 1/4 ..................................... 1.020
57 1/2 ..................................... 1.039
57 3/4 ..................................... 1.058
58 ......................................... 1.076
58 1/4 ..................................... 1.098
58 1/2 ..................................... 1.118
58 3/4 ..................................... 1.138
59 ......................................... 1.159
59 1/4 ..................................... 1.183
59 1/2 ..................................... 1.205
59 3/4 ..................................... 1.228
60 ......................................... 1.250
60 1/4 ..................................... 1.275
60 1/2 ..................................... 1.300
60 3/4 ..................................... 1.325
61 ......................................... 1.350
61 1/4 ..................................... 1.375
61 1/2 ..................................... 1.400
61 3/4 ..................................... 1.425
62 ......................................... 1.450
62 1/4 ..................................... 1.475
62 1/2 ..................................... 1.500
62 3/4 ..................................... 1.525
63 ......................................... 1.550
63 1/4 ..................................... 1.575
63 1/2 ..................................... 1.600
63 3/4 ..................................... 1.625
64 ......................................... 1.650
64 1/4 ..................................... 1.675
64 1/2 ..................................... 1.700
64 3/4 ..................................... 1.725
65 ......................................... 1.750
The temporary annuity under subdivision (a) of this
section shall not be subject to the optional settlements under
Article 6 (commencing with Section 21450) and shall be payable
monthly until the retired member attains or would have attained age
65. Should his or her death occur prior to age 65, the commuted
value of any remaining installments shall be paid to his or her
designated beneficiary in the manner provided in former Section
21332.5, as added by Chapter 1264 of the Statutes of 1953, for
payment of death benefits under optional settlement one.
The agency's liability for prior service shall be in the same
proportion to the total reserves required as the years of credited
prior service bear to the total years of credited service. The
agency's liability for current service shall consist of the remainder
of the total reserves required after deducting the liability for
prior service and the accumulated normal contributions of the member.
This section shall apply only to a contracting agency that elected
prior to October 1, 1965, by express provision of its contract or
amendment thereto to be subject hereto.
21369. The combined prior and current service pension for a state
safety member, and a local safety member with respect to service to
a contracting agency subject to this section, upon retirement after
attaining age 55, is a pension derived from contributions of an
employer sufficient, when added to that portion of the service
retirement annuity that is derived from the accumulated normal
contributions of the member at the date of his or her retirement, to
equal one-fiftieth of his or her final compensation multiplied by the
number of years of state safety, police, fire, or county peace
officer service that is credited to him or her as a state safety
member or a local safety member subject to this section at
retirement. Notwithstanding the preceding sentence, this section
shall apply to the current and prior service pension for any other
state safety member based on service to which it would have applied
had the member, on July 1, 1971, been in employment described in
Section 20403 or 20404.
Upon retirement for service prior to attaining age 55, the
percentage of final compensation payable for each year of credited
service that is subject to this section shall be the product of 2
percent multiplied by the factor set forth in the following table for
his or her actual age at retirement:
If retirement occurs at age: The percent for each year of
credited service is:
50 ......................................... 0.713
50 1/4 ..................................... 0.725
50 1/2 ..................................... 0.737
50 3/4 ..................................... 0.749
51 ......................................... 0.761
51 1/4 ..................................... 0.775
51 1/2 ..................................... 0.788
51 3/4 ..................................... 0.801
52 ......................................... 0.814
52 1/4 ..................................... 0.828
52 1/2 ..................................... 0.843
52 3/4 ..................................... 0.857
53 ......................................... 0.871
53 1/4 ..................................... 0.886
53 1/2 ..................................... 0.902
53 3/4 ..................................... 0.917
54 ......................................... 0.933
54 1/4 ..................................... 0.950
54 1/2 ..................................... 0.966
54 3/4 ..................................... 0.983
In no event shall the total pension for all service under
this section exceed an amount that, when added to the service
retirement annuity related to that service, equals 75 percent of
final compensation. For state members who retire on or after January
1, 1995, and with respect to service for all state employers under
this section, the benefit shall not exceed 80 percent of final
compensation. If the pension relates to service to more than one
employer and would otherwise exceed that maximum, the pension payable
with respect to each employer shall be reduced in the same
proportion as the allowance based on service to that employer bears
to the total allowance computed as though there were no limit, so
that the total of those pensions shall equal the maximum. Where a
state member retiring on or after January 1, 1995, has service under
this section with both state and local agency employers, the
80-percent limit shall apply and the additional benefit shall be
funded by increasing the member's pension payable with respect to the
state employer.
This section shall not apply to a person whose effective date of
retirement is prior to July 1, 1971.
The Legislature reserves, with respect to any member subject to
this section, the right to provide for the adjustment of industrial
disability retirement allowances because of earnings of a retired
person and modification of the conditions and qualifications required
for retirement for disability as it may find appropriate because of
the earlier age of service retirement made possible by the benefits
under this section.
The percentage of final compensation provided in this section
shall be reduced by one-third as applied to that part of the member's
final compensation that does not exceed four hundred dollars ($400)
per month for service after the effective date of coverage of a
member under the federal system. This paragraph shall not apply to a
member who retires after the date upon which coverage under the
federal system of persons in his or her employment terminates. It
shall not apply to a local safety member employed by a contracting
agency electing to be subject to this section after March 7, 1973,
unless the agency elects to be subject to this paragraph by amendment
to its contract or by appropriate provision of a contract entered
into after this provision is effective and as to any member, the
reduction in the percentage of final compensation shall apply to all
local safety service to the agency, if any of the local safety
service has been included in the federal system.
This section shall not apply to a contracting agency nor its
employees until the agency elects to be subject to it by amendment to
its contract made in the manner prescribed for approval of contracts
or in the case of a new contract, by express provision of the
contract. The operative date of this section with respect to a local
safety member shall be the effective date of the amendment to his or
her employer's contract electing to be subject to this section.
21370. The combined prior and current service pension for local
safety members with respect to service to a contracting agency
subject to this section, upon retirement after attaining 56 years of
age, is a pension derived from contributions of an employer
sufficient, when added to that portion of the service retirement
annuity that is derived from the accumulated normal contributions of
the member at the date of his or her retirement, to equal
one-fiftieth of his or her final compensation set forth opposite his
or her age at retirement taken to the preceding completed quarter
year in the following table, multiplied by the number of years of
service credited to him or her as a local safety member subject to
this section at retirement.
Upon retirement for service prior to attaining 56 years of age,
the percentage of final compensation payable for each year of
credited service that is subject to this section shall be the product
of 2 percent multiplied by the factor set forth in the following
table for the actual age at retirement:
If retirement occurs at age: The percent for each year of
credited service is:
50 .8565
50 1/4 .8650
50 1/2 .8740
50 3/4 .8830
51 .8920
51 1/4 .9020
51 1/2 .9120
51 3/4 .9222
52 .9330
52 1/4 .9410
52 1/2 .9490
52 3/4 .9570
53 .9650
53 1/4 .9675
53 1/2 .9700
53 3/4 .9725
54 .9750
54 1/4 .9810
54 1/2 .9870
54 3/4 .9935
55 1.0000
55 1/4 1.0435
55 1/2 1.0870
55 3/4 1.1310
56 1.1750
This section shall apply only to local police officers
and county peace officers who are local safety members.
This section shall not apply to persons whose effective date of
retirement is prior to January 1, 1985.
The Legislature reserves, with respect to any member subject to
this section, the right to provide for the adjustment of industrial
disability retirement allowances because of earnings of a retired
person and modification of the conditions and qualifications required
for retirement for disability as it may find appropriate because of
the earlier age of service retirement made possible by the benefits
under this section.
The percentage of final compensation provided in this section
shall be reduced by one-third as applied to that part of the member's
final compensation that does not exceed four hundred dollars ($400)
per month for service after the effective date of coverage of a
member under the federal system. This paragraph shall not apply to a
member who retires after the date upon which coverage under the
federal system of persons in his or her employment terminates.
In no event shall the total pension for all service under this
section exceed an amount that, when added to the service retirement
annuity related to the service, equals 75 percent of final
compensation. If the pension relates to service for more than one
employer and would otherwise exceed the maximum, the pension payable
with respect to each employer shall be reduced in the same proportion
as the allowance based on service to the employer bears to the total
allowance computed as though there were no limit, so that the total
of the pensions shall equal the maximum.
This section shall only apply as an optional contributory
retirement formula for this system local safety groups whose group
participated in Federal Old Age and Survivors' Insurance provisions
of the Social Security Act on April 1983.
This section shall not apply to a contracting agency nor its
employees until the agency and the representative employee
organization agree by memorandum of understanding to be subject to it
by amendment to its contract made in the manner prescribed for
approval of contracts. It shall also be required that the
representative employee organizations agree to be subject to this
provision.
The operative date of this section with respect to a local safety
member shall be the effective date of the amendment to the employer's
contract electing to be subject to this section.
21371. The combined current and prior service pensions,
disability retirement allowance or continued allowance with respect
to a retired member whose effective date of retirement was prior to
April 1, 1973, and who was a forestry, warden, or law enforcement
member on March 31, 1973, is his or her current service pension,
prior service pension, or combined prior and current service pension,
disability retirement allowance or continued allowance as it was
under this part as it read and applied to him or her on March 31,
1973, subject to adjustment under Article 3 (commencing with Section
21310).
21372. The combined current and prior service pensions of a state
safety member who on March 31, 1973, was a forestry member not
subject to former Section 21252.3, as added by Chapter 131 of the
Statutes of 1970, shall be determined in accordance with this part as
it read and applied to him or her on March 31, 1973, and the member
shall not become subject to Section 21369 unless he or she thereafter
accepts appointment to a position in another state department in
which he or she is a state safety member, and in that event he or she
shall be subject to Section 21369 with respect to all of his or her
state safety service.
21373. The combined current and prior service pensions for a
state safety member who on March 31, 1973, was a law enforcement
member not subject to Section 21369, shall be determined in
accordance with this part as it read and applied to him or her on
March 31, 1973, rather than Section 21369 if under those provisions
he or she is entitled to a retirement allowance exceeding 2 percent
of final compensation per year of his or her law enforcement service,
unless he or she elects in writing to be subject to Section 21369
and the election is filed in the office of the board within 30
calendar days following April 1, 1973. Any member who does not so
elect and thereafter accepts appointment to a position in another
state department in which he or she is a state safety member shall
become subject, upon that acceptance, to Section 21369 with respect
to all of his or her state safety service.
21374. The combined current and prior service pensions for a
state safety member who on March 31, 1973, was a warden member shall
be determined in accordance with this part as it read and applied to
him or her on March 31, 1973, if on March 31, 1973, he or she was
either: (a) in compensated employment in which he or she was a
warden member, or (b) on leave of absence from that employment and
who either: (1) has attained age 55, or (2), if on that date he or
she was subject to former Section 21252.2, as amended by Chapter 752
of the Statutes of 1969, he or she entered warden service after
attaining age 35, unless he or she elects in writing to be subject to
Section 21369 and the election is filed in the office of the board
within 30 calendar days following April 1, 1973.
Any member who thereafter accepts an appointment to a position in
another state department in which he or she is a state safety member
shall become subject to Section 21369 with respect to all of his or
her state safety service.
21375. Notwithstanding any other provision of law, and with
respect only to an election by a contracting agency to amend its
contract to become subject to Section 21369, 21370, or 21363, instead
of Section 21366, the following shall apply:
(a) Members who are on the amending agency's active payroll on the
effective date of the contract amendment shall elect in writing,
within 90 days after the notification by the board of the amendment,
to be subject to Section 21363, 21366, or 21370, as applicable, or
Section 21369 with respect to all safety service performed for the
contracting agency.
(b) Members on the effective date who are former employees of the
amending agency and whose service for the amending agency was subject
to Section 21366 or Section 21369, shall retain their rights under
the formula in effect at the time their service was credited.
(c) Former members who upon reentry into state service elect to
redeposit contributions, shall be subject to Section 21363, 21369, or
21370, as applicable, with respect to all safety service performed
for the amending agency prior to the effective date of the contract
amendment.
(d) Notwithstanding Section 21357, a former member who reinstates
to the amending agency as a local safety member shall elect within 90
days of the reinstatement whether to be subject to Section 21363,
21369, or 21370, as applicable, or Section 21366 with respect to all
service with that contracting agency prior to the effective date of
the contract amendment. The election shall be effective only if the
reinstated member remains in the employment for at least one year
subsequent to reinstatement.
21376. Whenever a contracting agency amends its contract to
become subject to Section 21370 instead of Section 21369, a member
who previously elected, pursuant to Section 21375, to remain subject
to Section 21366, or a member who entered employment under Section
21366 after attaining age 30 and continued to be subject to that
section, shall elect in writing within 90 days of notification by the
board whether to be subject to Section 21366 or Section 21370.
21377. Any member who, at any time prior to January 1, 1932, was
absent from state service without compensation on military service,
and who returned to state service within six months after discharge
under conditions other than dishonorable or within six months after
any period of rehabilitation afforded by the United States Government
other than a period of rehabilitation for purely educational
purposes, is entitled to have credited as prior service under the
provisions of this part the period of time as would have been
credited to him or her as prior service had he or she not been so
absent. For the purposes of this section, a member who was granted a
leave of absence or placed on a civil service reemployment list as
of the same date he or she was reinstated from military leave shall
be considered as having returned to state service within said six
months, if he or she returned to state service at the end of the
leave of absence or upon offer of employment from the reemployment
list.
This section does not apply to persons absent from state service
by reason of service with the Merchant Marine of the United States,
or on ships operated by or for the United States Government, anything
to the contrary in Section 20990 notwithstanding.
21378. Every prior service pension and disability retirement
pension payable for time commencing on November 1, 1949, to any
member who was retired prior to November 1, 1949, is hereby increased
to the amount it would be if the provisions of Section 21253.2, as
they existed on November 1, 1949, had been in effect on the date of
the actual retirement of the member; but this section does not
authorize any decrease in any such pension, nor does this section
give any retired member, or his or her successors in interest, any
claim against the state for any increase in any pension paid or
payable for time prior to November 1, 1949. Calculation of pensions
under this section shall be made on the basis of current interest
rate and mortality tables.
21379. Every prior service pension and disability retirement
pension payable for time commencing on September 22, 1951, to any
state member who was retired prior to September 22, 1951, is hereby
increased to the amount it would be if Section 20833, as added by
Chapter 123 of the Statutes of 1945 (providing that the prior service
credited under Sections 20930, 20931, and 20932 shall be one-half
year less than the total prior service rendered), had been repealed
prior to the date of retirement of the member; but this section does
not authorize any decrease in any pension, nor does this section give
any retired member, or his or her successors in interest, any claim
against the state for any increase in any pension paid or payable for
time prior to September 22, 1951. Calculation of pensions under
this section shall be made on the basis of current interest rate and
mortality tables.
21380. If a state safety member retires for service before
attaining age 55, or, in the case of the member who continues subject
to the current and prior service pension provision for retirement of
warden and forestry members at age 60, his or her prior and current
service pensions shall
be reduced to that amount that the value of the pensions as deferred
to age 55, or age 60, respectively, will purchase at the actual age
of retirement on the basis of the mortality tables and actuarial
interest rate in effect on December 1, 1970, under this system with
respect to those members.
21381. (a) The retirement allowance referred to in this section
excludes that portion of a member's service retirement annuity that
was purchased by his or her accumulated additional contributions.
(b) If a member entitled to credit for prior service retires on or
after July 1, 1971, and after attaining the compulsory age for
service retirement applicable to him or her, or if there is no
compulsory age for service retirement applicable to the member and
the member attains age 70, or if a member is entitled to be credited
with 20 years of continuous state service and retires after attaining
age 60, and his or her retirement allowance is less than one
thousand two hundred dollars ($1,200) per year and less than his or
her final compensation, his or her prior or current service pension,
as the case may be, shall be increased so as to cause his or her
total retirement allowance from this system, and from the retiring
annuities system of the university, if any, to amount to one thousand
two hundred dollars ($1,200) per year, or his or her final
compensation, whichever is less.
If a member to whom this section applies is employed by more than
one employer, his or her aggregate retirement allowances shall be
taken into account irrespective of the employer.
21382. Every current service pension and every prior service
pension payable for time commencing on October 1, 1955, to any member
who was retired prior to October 1, 1955, is hereby increased to the
amount it would be if the provisions of Section 21258.1, as they
existed on October 1, 1955, had been in effect on the date of the
actual retirement of the member; but this section does not authorize
any decrease in any pension, nor does this section give any retired
member, or his or her successors in interest, any claim against the
state for any increase in any pension paid or payable for time prior
to October 1, 1955. Calculation of pensions under this section shall
be made on the basis of current interest rate and mortality tables.
This section shall not apply to any contracting agency with
respect to its employees who have retired under this system prior to
the effective date the agency elects to be subject to the provisions
of this section, with respect to such employees, by amendment to its
contract with the board, made as provided in Section 20474, and
unless and until the contracting agency also elects to be subject to
the provisions of Section 21381.
21383. The prior service pensions for state members are derived
from contributions of the state.
21384. The prior service pension for local members is a pension
derived from the contributions of the employing contracting agency if
and as provided for in the contract between the board and the
contracting agency.
21385. The prior service pension of a member reinstated from
service retirement, upon his or her subsequent service retirement,
shall be in the same amount as his or her prior service pension prior
to his or her reinstatement, adjusted for any service on which the
pension was based that was included in coverage of the federal system
during reinstatement according to the formula applicable to the
service in employment from which he or she was retired, and further
adjusted according to any change in the provisions governing the
calculation of the pensions, using the formula applied in the first
adjustment, made after the reinstatement and applicable to pensions
being paid at the date of the change if the subsequent retirement
occurs before he or she renders after his or her reinstatement at
least one year of state service credited under this system.
Otherwise, the prior service pension calculated on the basis of an
age, taken to the preceding completed quarter year but not less than
the minimum retirement age applicable to him or her at his or her
last retirement, and determined by deducting from his or her age at
his or her subsequent retirement, the aggregate time during which he
or she was under retirement. For such a member reinstated from
nonindustrial disability retirement, the prior service pension upon
his or her service retirement after attaining an age one year less
than the minimum age at which he or she could have retired without an
actuarial discount because of age in the employment from which he or
she was last retired, or upon his or her disability retirement after
attaining the minimum age, and subsequent to reinstatement, shall be
calculated in the manners described in the preceding sentence, but
the age determined upon subsequent retirement after rendering at
least one year of state service, shall not be taken at less than one
year less than the minimum age if the subsequent retirement is for
service, or the minimum age if the retirement is for disability.
The prior service pension otherwise payable under this section to
a member whose allowance prior to reinstatement was paid pursuant to
his or her election under Section 21461 shall be reduced by the
actuarial equivalent, on the date of retirement subsequent to
reinstatement, of the amount, if any (converted as below), by which:
(a) The total amount paid in the period during which a temporary
annuity was included in the payments, the amount being reduced by the
total amount that would have been payable during the period had the
election not been made; exceeds
(b) The excess of the total amount that would have been payable,
had the election not been made, during the time subsequent to the
period and prior to reinstatement over the total amount actually paid
during that time.
The amount determined by the above formula shall be converted to
an amount equaling the actuarial equivalent on the date of
reinstatement. The latter amount shall be the basis of the actuarial
equivalent, on the date of retirement subsequent to reinstatement.
Actuarial equivalents required by this section shall be based on
the interest rate and mortality tables in use by this system on the
date of retirement subsequent to reinstatement.
Notwithstanding this section, or any other provision of this part,
the prior service pension payable to any member subject to this
section who rendered one year or more of state service credited under
this system after reinstatement on retirement for service subsequent
to reinstatement from service retirement for any credited service
for which a prior service pension was paid prior to reinstatement
shall not be less than the prior service pension that would be
payable on the date of the subsequent retirement had the member not
been reinstated, adjusted, however, by any reduction under this
section because of an election under Section 21461 and, for any
service so credited that was included in coverage of the federal
system during reinstatement, according to the formula applicable to
the service in employment from which he or she was retired.
21386. The retirement allowance payable to a school member, whose
retirement date was before July 1, 1983, and who elected optional
settlement 2 or 3, or an optional settlement involving life
contingency under optional settlement 4 or to a beneficiary of such a
retired member, shall be increased by 15 percent. The percentage
shall be applied to the allowance payable on July 1, 1983, and the
allowance as so increased shall be paid for time on and after that
date and until April 1, 1984. The base allowance for adjustments due
on April 1, 1984, and subsequent annual adjustments under Article 3
(commencing with Section 21310) shall be the allowance as so
increased. The allowance payable to the beneficiary or beneficiaries
of a member described in this section shall be increased by the same
percentage and in the same manner as the increase provided for the
payment to the member.
21387. The retirement allowance payable to a state miscellaneous
member, other than a school member, whose retirement date was
effective before July 1, 1974, with respect to a member who was not
covered by the federal system, and before July 1, 1975, with respect
to a member who was covered under the federal system, and who elected
optional settlement 2 or 3 or an optional settlement involving life
contingency under optional settlement 4, shall be increased by 15
percent. The percentage shall be applied to the allowance payable on
July 1, 1977, and the allowance as so increased shall be paid for
time on and after that date and until April 1, 1978. The base
allowance for adjustments due on April 1, 1978, and subsequent annual
adjustments under Article 3 (commencing with Section 21310) shall be
the allowance as so increased. The allowance payable to the
beneficiary or beneficiaries of a member described in this section
shall be increased by the same percentage and in the same manner as
the increase provided for the payment to the member.
21388. The retirement allowance payable to a patrol or state
safety member retired for nonindustrial disability retirement with an
effective date of retirement prior to April 1, 1972, and who elected
optional settlement 2 or 3 or an optional settlement involving life
contingency under optional settlement 4 shall be increased by 15
percent. The percentage shall be applied to the allowance payable on
January 1, 1980, and the allowance as so increased shall be paid for
time on and after that date until April 1, 1980. The base allowance
for adjustments due on April 1, 1980, and subsequent annual
adjustments under Article 3 (commencing with Section 21310) shall be
the allowance as so increased. The allowance payable to the
beneficiary or beneficiaries of a member described in this section
shall be increased by the same percentage and in the same manner as
the increase provided for the payment to the member. In no event
shall an increase be payable on account of a member whose disability
retirement allowance already includes a continuance allowance as
prescribed under former Section 21624 prior to its repeal by Chapter
1327 of the Statutes of 1972, or former Section 21263.1 prior to its
repeal by Chapter 1328 of the Statutes of 1972.
Article 5. Disability Retirement Benefits
21400. Upon retirement for disability a state miscellaneous
member or school member who has attained age 60 shall receive his or
her service retirement allowance, except as provided in Section
21401.
21401. Upon retirement for disability, a state miscellaneous
member or a state industrial member, other than one subject to
Section 21423, who has attained age 65 shall receive his or her
service retirement allowance.
21402. Upon retirement for nonindustrial disability, a state
industrial member who has attained age 60 shall receive his or her
service retirement allowance.
21403. Upon retirement for nonindustrial disability, a patrol
member or local safety member subject to Section 21362 or 21363 or a
state peace officer/firefighter who has attained age 50, or a state
safety member who has attained age 55, shall receive his or her
service retirement allowance.
21404. Upon retirement for disability, a local miscellaneous
member who has attained the minimum age at which he or she may retire
for service without an actuarial discount because of age, shall
receive his or her service retirement allowance.
21405. Upon retirement for nonindustrial disability, a local
safety member who has attained the minimum age at which he or she may
retire for service without an actuarial discount because of age,
shall receive his or her service retirement allowance.
21406. Upon retirement of a patrol member for industrial
disability he or she shall receive a disability retirement allowance
of 50 per cent of his or her final compensation plus an annuity
purchased with his or her accumulated additional contributions, if
any, or, if qualified for service retirement, he or she shall receive
his or her service retirement allowance if the allowance, after
deducting the annuity, is greater.
21407. Upon retirement of a state peace officer/firefighter
member or a local safety member subject to Section 21363 for
industrial disability the member shall receive a disability allowance
of 50 percent of his or her final compensation plus an annuity
purchased with his or her accumulated additional contributions, if
any, or, if qualified for service retirement, the member shall
receive his or her service retirement allowance if the allowance,
after deducting the annuity, is greater.
21408. Upon the industrial disability retirement of a state
miscellaneous member subject to Section 21151 who is not subject to
Section 21417, the disability allowance shall be 50 percent of his or
her final compensation plus an annuity purchased with his or her
accumulated additional contributions, if any, or, if qualified for
service retirement, he or she shall receive his or her service
retirement allowance, if the allowance, after deducting the annuity,
is greater.
21409. Upon the industrial disability retirement of a state
miscellaneous member within Section 21151, or a state industrial
member, who is not subject to Section 21417, whose service is subject
to Section 21076, the disability allowance shall be 50 percent of
his or her final compensation plus an annuity purchased with his or
her accumulated additional contribution, if any, or if qualified for
service retirement, he or she shall receive his or her service
retirement allowance, if the allowance, after deducting the annuity,
is greater.
21410. Notwithstanding Sections 21406, 21407, 21408, 21409, and
21411, any state member who becomes subject to Section 21159 on or
after January 1, 1993, and retires for industrial disability because
of incapacity for the performance of duties in any employment with
the state employer, as determined by the Department of Personnel
Administration, shall receive a disability retirement allowance of 60
percent of the member's final compensation plus an annuity purchased
with the member's accumulated additional contributions, if any, or,
if qualified for service retirement, the member shall receive the
service retirement allowance if the allowance, after deducting the
annuity, is greater.
Benefits payable under this section shall be subject to Section
21417 and are payable solely to state members employed in state
bargaining units subject to Section 21159.
21411. Upon retirement of a state safety member for industrial
disability he or she shall receive a disability retirement allowance
of 50 percent of his or her final compensation plus an annuity
purchased with his or her accumulated additional contributions, if
any, or, if qualified for service retirement, he or she shall receive
his or her service retirement allowance if the allowance, after
deducting the annuity, is greater.
21412. Upon retirement of a state industrial member for
industrial disability he or she shall receive a disability retirement
allowance of 50 percent of his or her final compensation plus an
annuity purchased with his or her accumulated additional
contributions, if any, or, if qualified for service retirement, he or
she shall receive his or her service retirement allowance if the
allowance, after deducting the annuity, is greater.
21413. Upon retirement of a local safety member for industrial
disability he or she shall receive a disability retirement allowance
of 50 percent of his or her final compensation plus an annuity
purchased with his or her accumulated additional contributions, if
any, or, if qualified for service retirement, he or she shall receive
his or her service retirement allowance if the allowance, after
deducting the annuity, is greater.
21414. Upon retirement of a local miscellaneous member for
industrial disability, he or she shall receive a disability allowance
of 50 percent of his or her final compensation plus an annuity
purchased with his or her accumulated additional contributions, if
any, or, if qualified for service retirement, he or she shall receive
his or her service retirement allowance if the allowance, after
deducting the annuity, is greater.
21415. Notwithstanding any provision of this part to the
contrary, a retired state safety or state peace officer/firefighter
member who, before January 1, 1986, was eligible for an industrial
disability allowance and was living on or after December 30, 1989,
but elected, instead, for a nonindustrial disability allowance may
elect for an industrial disability retirement allowance. A change in
retirement status pursuant to this section does not, in itself,
constitute a basis for a change in the optional settlement or the
beneficiary designation. The industrial disability allowance shall
be calculated as if former Section 21293.5, as repealed by Chapter
557 of the Statutes of 1985, was never enacted and in no event shall
be in an amount less than his or her nonindustrial disability
allowance.
The allowance elected pursuant to this section shall be paid only
on and after the effective date of the election and nothing in this
section shall be construed as providing for any increase in benefits
payable prior to the effective date of the election, or for any claim
for the increase. The effective date of an election shall be no
earlier than the first day of the month following the month in which
the election is received by the board.
Any state safety member who applies for an election pursuant to
this section shall have the burden of proving that he or she was, by
competent medical evidence, industrially disabled at retirement and
the duties of his or her job at retirement.
The board has no duty to identify, locate, or notify any annuitant
who may be eligible for the benefits provided by this section.
21416. Notwithstanding any provision of this part, a state safety
member employed by the Department of Corrections or the Department
of the Youth Authority with 25 years or more of service credit as
such, shall, upon retirement on or after January 1, 1982, for
industrial disability, receive the disability allowance provided for
in Section 21411 or a disability allowance equal to 1/50 th of final
compensation multiplied by the number of years of state safety member
service in the Department of Corrections or the Department of the
Youth Authority with which the member is credited at retirement.
This section shall not become operative for any eligible member,
until it is first agreed to in a memorandum of understanding reached
between the state and the exclusive representatives of the employees
in State Bargaining Unit No. 6 pursuant to Chapter 10.3 (commencing
with Section 3512) of Division 4 of Title 1, and approved by the
Legislature pursuant to law.
Payment of benefits pursuant to this section for any eligible
member shall be retroactive to the effective date of the retirement
of the member.
21417. Notwithstanding any other provision of this part, the
industrial disability retirement allowance of a member whose
membership commenced after January 1, 1980, in the category of
membership in which the member was serving at the time of suffering
the disability or incurring the disease causing retirement for
industrial disability, shall not exceed the service retirement
allowance that would be payable as a result of service in that
category of membership if the member's service had continued to age
55, if a patrol, state peace officer/firefighter, state safety, or
local safety member, age 65, if service is subject to Section 21076,
or age 63, if any other category of member.
This section shall not be applicable to a member who is subject to
Section 21430, or a member whose disability results from an injury
that is a direct consequence of a violent act perpetrated upon his or
her person or occurs during the performance of those portions of his
or her duties that are particularly hazardous and dangerous.
21418. The disability retirement allowance for a patrol, state
safety, state peace officer/firefighter, state industrial, or local
safety member retired because of industrial disability shall be
derived from his or her accumulated normal contributions and the
contributions of his or her employer.
21419. This system shall deduct the amount of advanced disability
pension payments made to a local safety member pursuant to Section
4850.3 of the Labor Code from the member's retroactive disability
allowance, and reimburse the local agency that has made the advanced
disability pension payments. If the retroactive disability allowance
is not sufficient to reimburse the total advanced disability pension
payments, an amount no greater than 10 percent of the member's
monthly disability allowance shall be deducted and reimbursed to the
local agency until the total advanced disability pension payments
have been repaid. The local safety member and this system may agree
to any other arrangement or schedule for the member to repay the
advanced disability pension payments.
21420. If a member retired for industrial disability has made
contributions in respect to service rendered in a category of
membership other than the category in which he or she was at the time
he or she suffered the disability or incurred the disease causing
his or her retirement for industrial disability, in addition to the
disability retirement allowance to which he or she is otherwise
entitled under this article, he or she shall receive an annuity
purchased with his or her accumulated normal contributions made in
respect to service rendered in the other category of membership.
21421. Every retirement allowance payable on account of
industrial disability for time commencing on October 1, 1953, to any
member who was retired prior to October 1, 1953, is hereby increased
to the amount it would be if Sections 20037, 21258, and 21420, as
those sections existed on October 1, 1953, had been in effect on the
date of retirement of the member. This section does not authorize
any decrease in any retirement allowance, nor does this section give
any recipient of any retirement allowance, or his or her successors
in interest, any claims against the state for any increase in any
retirement allowance paid or payable for time prior to October 1,
1953. Calculations under this section shall be made on the basis of
current interest rate and mortality tables.
21422. Every member retired for disability for whom a different
disability retirement allowance is not prescribed by any other
provision of this article, including a member who is entitled to an
industrial disability retirement allowance if the disability is
industrial but who retires for nonindustrial disability shall receive
a disability retirement allowance which shall consist of:
(a) An annuity that is the actuarial equivalent of his or her
accumulated contributions at the time
of retirement; and
(b) If, in the opinion of the board, his or her disability is not
due to intemperance, willful misconduct or violation of law on his or
her part, a disability retirement pension derived from the
contributions of the employer.
21423. The disability retirement pension for a member whose
effective date of retirement is on or after April 1, 1973, shall be
an amount as, with that portion of his or her annuity provided by his
or her accumulated normal contributions, will make his or her
disability retirement allowance equal:
(a) Ninety percent of one-fiftieth of his or her final
compensation multiplied by the number of years of service credited to
him or her; or
(b) If the disability retirement allowance computed under
subdivision (a) does not exceed one-third of his or her final
compensation, 90 percent of one-fiftieth of his or her final
compensation multiplied by the number of years of service that would
be creditable to him or her were his or her service to continue until
attainment by him or her of age 60, but in that case the retirement
allowance shall not exceed one-third of the final compensation.
Subdivision (b) is not applicable to members who are not entitled,
at the time of retirement, to be credited with at least 10 years of
state service.
21424. The disability retirement pension for state miscellaneous
or state industrial service subject to Section 21076 shall be one of
the following:
(a) Ninety percent of the factor applicable at age 65 as set forth
in Section 21076 times final compensation multiplied by the number
of years of service credited to him or her.
(b) If the disability retirement allowance computed under
subdivision (a) does not exceed one-third of his or her final
compensation, 90 percent of the benefit that would be payable to the
member had the member continued in employment until age 65, but in
that case the retirement allowance shall not exceed one-third of the
final compensation. This subdivision is not applicable to members
who are not entitled, at the time of retirement, to be credited with
at least 10 years of state service.
(c) If the disability retirement allowance is derived from this
section and Section 21423, and would otherwise exceed the maximums
provided by these sections, the pension payable with respect to each
section shall be reduced in the same proportion as the allowance
bears to the total allowance computed as though there was no limit,
so that the total of the pensions shall equal the maximum allowed.
21425. Every disability retirement pension payable for a member
whose effective date of retirement was prior to April 1, 1973, and
for time commencing on April 1, 1973, and ending on March 31, 1974,
to a state member, or a local member having the same retirement
allowance for nonindustrial disability as a state member who was
retired prior to that date, is hereby increased to the amount it
would be if the amendment to Section 21296 by Chapter 767 of the
Statutes of 1972 had been in effect on the date of retirement of the
member. This provision does not authorize any decrease in any
pension, nor does this section give any retired member, or his or her
successors in interest, any claim against the state for any increase
in any pension paid or payable for time prior to April 1, 1973.
Calculation of pensions under this section shall be made on the basis
of current interest rate and mortality tables. The "base allowance"
shall be adjusted in the same manner for purposes of annual
adjustments under Article 3 (commencing with Section 21310) on and
after April 1, 1972.
21426. In no event shall the disability retirement pension under
Sections 21422 and 21423 be more than sufficient to make the
disability retirement allowance, exclusive of any annuity provided by
accumulated additional contributions, exceed the service retirement
allowance, exclusive of any annuity purchased by accumulated
additional contributions, receivable by the member should he or she
retire at age 60.
21427. The disability retirement allowance of a local
miscellaneous and local safety member whose effective date of
retirement for nonindustrial disability is after June 14, 1975, and
whose last employment preceding retirement was with an employer
subject to this section shall be increased by an amount that, when
added to the disability retirement allowance otherwise payable under
this part will make his or her disability retirement allowance,
exclusive of the annuity payable from accumulated additional
contributions, equal to 30 percent of final compensation if he or she
has five years of service plus 1 percent of final compensation for
each year of service in excess of five years to a maximum of 50
percent of final compensation.
In no event shall the disability retirement pension be more than
sufficient to make the disability allowance equal the service
retirement allowance, exclusive of any annuity purchased by
accumulated additional contributions, receivable by the member were
he or she to continue in service and retire at age 60.
The added amount payable under this section shall be a liability
solely of employers subject to this section. In the case of a member
who has service with more than one employer, the liability for the
disability retirement pension provided by this section shall be
apportioned on the basis of the member's service to any employers who
have elected to be subject to this section.
This section shall not apply to any contracting agency nor to the
employees of any contracting agency unless and until the agency
elects to be subject to the provisions of this section by amendments
to its contract made in the manner prescribed for approval of
contracts, except that an election among the employees is not
required, or, in the case of contracts made after June 14, 1975, by
express provision in the contract making the contracting agency
subject to the provisions of this section.
This section shall only apply to members who retire for disability
on and after the date the agency elects to be subject to this
section.
21428. Upon retirement of a local safety member or a local
miscellaneous member for industrial disability, if the member is
totally disabled he or she shall receive in lieu of the allowance
otherwise provided by this article a disability retirement allowance
equal to 75 percent of his or her final compensation plus an annuity
purchased with his or her accumulated additional contributions, if
any.
For purposes of this section, "totally disabled" means inability
to perform substantial gainful employment and the presumptions
contained in Section 4662 of the Labor Code shall also be applied to
the determination of total disability.
This section shall not apply to any contracting agency nor to the
employees of any contracting agency unless and until the agency
elects to be subject to the provisions of this section by amendment
to its contract made in the manner prescribed for approval of
contracts, or in the case of contracts made after January 1, 1974, by
express provision in the contract making the contracting agency
subject to the provisions of this section.
21429. Every retirement allowance payable on account of
industrial disability and every allowance payable under Section 21624
for time commencing on the date Section 21428 becomes applicable to
employees of a contracting agency, with respect to a local safety
member retired prior to that date, is hereby increased to the amount
it would be if Section 21428, as it existed on January 1, 1974, had
been in effect on the date of the member's retirement. This section
does not authorize any decrease in any retirement allowance, nor does
it give any recipient of any allowance, or his or her successor in
interest, any claim against this system for time prior to the date
Section 21428 became applicable to his or her employer.
The base allowance shall be adjusted in the same manner for
purposes of adjustments under Article 3 (commencing with Section
21310) beginning with the next following adjustment.
21430. Upon retirement of a local safety member for industrial
disability, the member shall receive in lieu of the allowance
otherwise provided by this article a disability retirement allowance
in the amount of the percentage of final compensation equal to the
percentage of permanent disability determined by the Workers'
Compensation Appeals Board for the purposes of permanent disability
payments pursuant to Article 3 (commencing with Section 4650) of
Chapter 2 of Part 2 of the Labor Code with respect solely to the
injury resulting in the disability retirement and giving effect to
Section 4750 of the Labor Code, but not less than 50 percent nor in
excess of 90 percent of the member's final compensation.
This section shall not apply to any contracting agency nor to the
employees of any contracting agency unless and until the agency
elects to be subject to the provisions of this section by amendment
to its contract made in the manner prescribed for approval of
contracts, or in the case of contracts made after June 14, 1975, by
express provision in such contract making the contracting agency
subject to the provisions of this section.
This section shall only apply to members who retire for disability
on and after the date the agency elects to be subject to this
section.
21431. If, in the opinion of the board, the disability is due to
intemperance, wilful misconduct, or violation of law on the part of
the member, and his or her annuity is less than two hundred forty
dollars ($240) per year, the board may pay the member his or her
accumulated contributions in one lump sum in lieu of his or her
annuity.
21432. If, prior to attaining the minimum age for voluntary
retirement for service applicable to members of his or her class, a
recipient of a disability retirement allowance, other than one for
industrial disability, engages in a gainful occupation not in state
service, the board shall reduce his or her monthly disability
retirement pension to an amount that, when added to the compensation
earned monthly by him or her, shall not exceed the amount of the
maximum compensation earnable by a person holding the position that
he or she held at the time of his or her retirement, or if that
position has been abolished, the maximum compensation earnable by a
person holding it immediately prior to its abolition.
If his or her earnings are further altered, the board may further
alter his or her disability retirement pension to the lower of the
following amounts:
(a) The amount of the disability retirement pension upon which he
or she was originally retired.
(b) An amount that, when added to the compensation earned by him
or her shall equal the amount of the maximum compensation earnable by
a person holding the position that he or she held at the time of his
or her retirement, or, if that position has been abolished, the
maximum compensation earnable by a person holding it immediately
prior to its abolition.
The recipient of a disability allowance shall furnish earnings
information as requested by the board to administer this section. If
the recipient fails to furnish requested information, the disability
retirement pension shall be discontinued until such time as the
requested information is furnished. If the requested information is
furnished, the disability retirement pension shall be reinstated.
When he or she reaches the minimum age for voluntary retirement
for service applicable to members of his or her class his or her
retirement allowance shall be made equal to the amount it would be if
not reduced under this section, and shall not again be modified for
any cause.
Article 6. Optional Settlements
21450. This system shall provide to any member who requests
materials relating to retirement, a written explanation of the
effects, if any, of each possible decision relating to the selection
of optional settlements, beneficiaries, and survivor benefits upon
health benefits that are provided pursuant to Part 5 (commencing with
Section 22751).
21451. In lieu of the retirement allowance for his or her life
alone, a member or retired member may elect, or revoke or change a
previous election prior to the approval of the previous election, to
have the actuarial equivalent of his or her retirement allowance as
of the date of retirement applied to a lesser retirement allowance,
in accordance with one of the optional settlements specified in this
article. The election or revocation or change thereof, with respect
to a member subject to Section 21624 at retirement, shall apply to
all of the retirement allowance, if, at the effective date of
retirement, the member has no spouse, children or dependent parents
who would qualify for an allowance under Section 21624 after the
death of the member; or, if at retirement there are persons who would
so qualify, then the election, or revocation, or change thereof,
with respect to any optional settlement other than optional
settlement one, shall apply only to the portion of the allowance that
exceeds the amount of the allowance payable to the survivor.
An actuarial equivalent under this article shall be computed on
the basis of the mortality tables and actuarial interest rate in
effect under the system on December 1, 1970, for retirements
effective through December 31, 1979. Commencing with retirements
effective January 1, 1980, and at corresponding 10-year intervals
thereafter or more frequently at its discretion, the board shall
change the basis for calculating actuarial equivalents under this
article to agree with the interest rate and mortality tables in
effect at the commencement of each such 10-year interval.
21452. The lesser retirement allowance under an optional
settlement elected at retirement for law enforcement members whose
retirement is effective prior to October 1, 1965, and who are
entitled to receive benefits under the federal system, shall be
actuarially equivalent to that part of the retirement allowance that
is subject to option pursuant to Section 21451 that would have been
payable at retirement had no optional settlement been elected after
taking into consideration the reduction in the allowance provided for
in former Section 21252.10, as amended by Chapter 1657 of the
Statutes of 1971. Upon the election of an optional settlement by a
member who has not attained the federal retirement age the board
shall estimate the federal benefit upon the basis of information then
available to it. If the death of the member should occur before he
or she has attained the federal retirement age payments under the
optional settlement elected shall be as estimated. If the member
attains the federal retirement age, the board shall then recalculate
the lesser retirement allowance payable under the optional settlement
upon the basis of the age of the member and the beneficiary on the
effective date of retirement, actuarial tables then in use and the
federal benefit.
21453. An election, revocation, or change of election shall be
made prior to the making of the first payment on account of any
retirement allowance or, in event of a change of retirement status
after retirement, prior to the making of the first payment on account
of any retirement allowance following the change in retirement
status. "Change in retirement status" includes, but is not limited
to, change from service to disability retirement, from disability
retirement to service retirement, from nonindustrial disability
retirement to industrial disability retirement, or from industrial to
nonindustrial disability retirement.
For purposes of this section, payment shall be deemed to have been
made on the date a warrant is mailed, or the date funds are
electronically transferred to a bank, savings and loan association,
or credit union account for deposit in the member's account.
This section shall not be construed to authorize a member to
change his or her retirement status after the mailing of the first
retirement warrant following the election, revocation, or change of
election provided in this section.
21454. Notwithstanding Section 21453, an election of optional
settlement 2 or 3, or optional settlement 4 involving life
contingency in which a spouse is designated as the beneficiary, may
be modified as provided in this section in the event of a dissolution
or annulment of the marriage or a legal separation in which the
division of the community property awards the total interest in the
retirement system to the retired member. The modification shall
provide that payment shall be continued during the retired person's
lifetime in accordance with the optional settlement then in effect
but that no monthly allowance shall be paid following the retired
person's death, and in lieu thereof there shall be paid in a lump sum
to the member's estate or a beneficiary designated by him or her the
amount, if any, by which the member's accumulated contributions at
retirement exceed the total payments made to the retired person to
the date of his or her death.
21455. Optional settlement 1 consists of the right to have a
retirement allowance paid him or her until his or her death and if he
or she dies before he or she receives in annuity payments the amount
of his or her accumulated contributions at retirement, to have the
balance at death paid to his or her beneficiary or estate.
21456. Optional settlement 2 consists of the right to have a
retirement allowance paid a member until his or her death and
thereafter to his or her beneficiary for life.
If the beneficiary predeceases the member and the member elected
this section to be effective on or after January 1, 1990, the member'
s allowance shall be adjusted effective the first of the month
following the death of the beneficiary, to reflect the benefit that
would have been paid had the member not selected an optional
settlement.
If a nonspouse beneficiary waives entitlement to this allowance
and the member elected this section to be effective on or after
January 1, 1993, the member's allowance shall be adjusted effective
the first of the month following the receipt of the waiver of the
allowance entitlement from the nonspouse beneficiary to reflect the
benefit that would have been paid had the member not selected an
optional settlement.
If the marriage of a member is dissolved or annulled or there is a
legal separation between the member and the beneficiary spouse and
the judgment dividing the community property awards the total
interest in this system to the member, and the member elects this
section to be effective on or after January 1, 1994, the member's
allowance shall be adjusted effective the first of the month
following the filing of the judgment with the board to reflect the
benefit that would have been paid had the member not selected an
optional settlement.
If the beneficiary spouse predeceases the member on or after
January 1, 1990, and the member elected this section to be effective
prior to January 1, 1990, the member's allowance shall be adjusted
effective the first of the month following the death of the
beneficiary spouse to reflect a new allowance as calculated below.
If the nonspouse beneficiary waives entitlement to this allowance
on or after January 1, 1993, and the member elected this section to
be effective prior to January 1, 1993, the member's allowance shall
be adjusted, effective the first of the month following receipt by
the board of the waiver of entitlement from the nonspouse
beneficiary, to reflect a new allowance as calculated below.
If the marriage of a member is dissolved or annulled or there is a
legal separation between the member and the beneficiary spouse and
the judgment dividing the community property awards the total
interest in the retirement system to the member, and the member
elected this section to be effective prior to January 1, 1994, the
member's allowance shall be adjusted, effective the first of the
month following the filing of the judgment with the board to reflect
a new allowance as calculated below. The qualifying event shall be
the date on which the judgment is filed with the board.
A percentage factor shall be applied to the difference between the
member's unmodified allowance and optional settlement 2 allowance,
both of which shall include applicable cost-of-living increases. The
product of this equation shall then be added to the member's
optional settlement 2 allowance and the total amount shall become the
member's base allowance. The percentage factor applicable to each
member shall be determined by the time between the member's
retirement effective date and the date of death of the beneficiary
spouse or by the time between the member's retirement effective date
and the date of the receipt of either the waiver of the allowance
entitlement or the judgment of dissolution, annulment, or legal
separation according to the following table:
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%
Nothing in this section shall result in additional cost to the
employer.
21457. Optional settlement 3 consists of the right to have a
retirement allowance paid a member until his or her death, and
thereafter to have one-half of his or her retirement allowance paid
to his or her beneficiary for life.
If the beneficiary predeceases the member and the member elected
this section to be effective on or after January 1, 1990, the member'
s allowance shall be adjusted effective the first of the month
following the death of the beneficiary, to reflect the benefit that
would have been paid had the member not selected an optional
settlement.
If the marriage of a member is dissolved or annulled or there is a
legal separation between the member and the beneficiary spouse and
the judgment dividing the community property awards the total
interest in this system to the member, and the member elects this
section to be effective on or after January 1, 1994, the member's
allowance shall be adjusted effective the first of the month
following the filing of the judgment with the board to reflect the
benefit that would have been paid had the member not selected an
optional settlement.
If a nonspouse beneficiary waives entitlement to this
allowance and the member elected this section to be effective on or
after January 1, 1993, the member's allowance shall be adjusted,
effective the first of the month following the receipt of the waiver
of the allowance entitlement from the nonspouse beneficiary, to
reflect the benefit that would have been paid had the member not
selected an optional settlement.
If the beneficiary spouse predeceases the member on or after
January 1, 1990, and the member elected this section to be effective
prior to January 1, 1990, the member's allowance shall be adjusted
effective the first of the month following the death of the
beneficiary spouse to reflect a new allowance as calculated below.
If the marriage of a member is dissolved or annulled or there is a
legal separation between the member and the beneficiary spouse and
the judgment dividing the community property awards the total
interest in the retirement system to the member, and the member
elected this section to be effective prior to January 1, 1994, the
member's allowance shall be adjusted, effective the first of the
month following the filing of the judgment with the board to reflect
a new allowance as calculated below. The qualifying event shall be
the date on which the judgment is filed with the board.
If the nonspouse beneficiary waives entitlement to this allowance
on or after January 1, 1993, and the member elected this section to
be effective prior to January 1, 1993, the member's allowance shall
be adjusted, effective the first of the month following receipt by
the board of the waiver of entitlement from the nonspouse
beneficiary, to reflect a new allowance as calculated below.
A percentage factor shall be applied to the difference between the
member's unmodified allowance and optional settlement 3 allowance,
both of which shall include applicable cost-of-living increases. The
product of this equation shall then be added to the member's
optional settlement 3 allowance and the total amount shall become the
member's base allowance. The percentage factor applicable to each
member shall be determined by the time between the member's
retirement effective date and the date of death of the beneficiary
spouse or by the time between the member's retirement effective date
and the date of the receipt of either the waiver of the allowance
entitlement or the judgment of dissolution, annulment, or legal
separation according to the following table:
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%
Nothing in this section shall result in additional cost to the
employer.
21458. Optional settlement 4 consists of such other benefits as
are the actuarial equivalent of a member's retirement allowance, that
he or she may select subject to the approval of the board. However,
the actuarial equivalent of benefits under this optional settlement
payable to the member's beneficiary shall not exceed the actuarial
equivalent of the benefits which would be payable to that beneficiary
if the member had elected optional settlement 2 and Section 21459.
The board shall include in each member benefit booklet a specific
illustration of the benefits available under optional settlement 4.
21459. A member who elects to receive optional settlement 2 or 3
may concurrently and irrevocably elect to waive the provision for an
increase to his or her allowance due to the death of his or her
beneficiary and shall, instead, have his or her allowance based upon
the waiver of this benefit.
21460. A member who elects to receive the unmodified allowance or
optional settlement 1, or optional settlement 2, 3, or 4 with or
without making the election specified in Section 21459, and who names
his or her spouse as the option beneficiary, and whose spouse is
also an eligible survivor for the benefits provided by Section 21624,
21626, 21627, 21628, 21629, or 21630, and where the total benefit to
the surviving spouse is at least 50 percent of the member's
unmodified allowance, may concurrently and irrevocably elect to have
his or her allowance paid as a "qualified joint and survivor annuity."
Notwithstanding any other provision of this part, upon the election,
the survivor allowance shall be paid only to the member's spouse and
shall continue to be paid upon the remarriage of the spouse. Any
cost due to this election shall be paid by the member through an
actuarial reduction to his or her allowance.
For purposes of this section, a member's retirement allowance
shall be determined without regard to any limitation required
pursuant to Section 415 of Title 26 of the United States Code but the
amount payable to the spouse shall be subject to those limits as if
it were the retirement allowance of the member.
21461. (a) A member retiring for service may elect to have the
actuarial equivalent of his or her unmodified service retirement
allowance paid in two parts as follows:
(1) A temporary annuity in an amount specified by the member but
which shall not result in a reduction to his or her unmodified
allowance by more than 50 percent.
(2) A life income consisting of his or her service retirement
annuity plus the pension provided by the actuarial value of his or
her current and prior service pensions remaining after providing the
temporary annuity in paragraph (1).
(b) The temporary annuity under subdivision (a) shall not be
subject to further optional settlement under this article and shall
be payable monthly under one of the following methods of payment, as
designated by the member:
(1) As an addition to his or her monthly life income beginning on
his or her effective date of retirement and continuing until the
member reaches age 591/2 or any whole age between ages 60 and 68, as
designated by the member at the time of his or her retirement. If
his or her death occurs prior to that age, the commuted value of any
remaining installments shall be paid to his or her designated
beneficiary in a lump sum.
(2) As an addition to his or her monthly life income beginning at
least one year after his or her effective date of retirement and at
any whole age between ages 60 and 68, as designated by the member at
the time of his or her retirement, and continuing until the member's
death.
Notwithstanding any other provision of this part, a member whose
allowance would be limited under Section 415 of Title 26 of the
United States Code shall be paid a temporary annuity benefit in an
amount and beginning on a date determined by the board that shall, to
the extent possible, cause the member's allowance to be under the
Section 415 limits and provide him or her with a lifetime allowance
that is actuarially equivalent to that which he or she would have
received had the Section 415 limits not been applied.
21462. Notwithstanding any other provision of this part, a member
who elected to receive optional settlement 2, 3, or 4, involving a
life contingency of the beneficiary, may, if the beneficiary
predeceases the member or if the member marries and the former spouse
was not named as beneficiary, or, if a former spouse was named, in
the event of a dissolution or annulment of the marriage or a legal
separation in which the judgment dividing the community property
awards the total interest in the retirement system to the retired
member, elect to have the actuarial equivalent reflecting any
selection against the fund resulting from the election as of the date
of election of the allowance payable for the remainder of the member'
s lifetime under the optional settlement previously chosen applied to
a lesser allowance during the member's remaining lifetime under one
of the optional settlements specified in this article and name a
different beneficiary. The election shall be made within 12 months
following the death of the beneficiary who predeceased the member or
within 12 months of the date of entry of the judgment dividing the
community property of the parties, or within 12 months following
marriage if the spouse is named as beneficiary, or, in the case of a
member who experienced one of these qualifying events prior to
January 1, 1988, the election shall be made by January 1, 1989. The
election shall become effective on the date specified on the
election, provided that this date is not earlier than the day
following receipt of the election in this system pursuant to this
section.
A member who has a qualifying event prior to January 1, 1988, and
who fails to elect by January 1, 1989, or a member who has a
qualifying event on or after January 1, 1988, and who fails to elect
within 12 months, shall retain the right to make an election under
this section. However, this election shall become effective no
earlier than 12 months after the date it is filed with the board,
provided that neither the member nor the designated beneficiary die
prior to the effective date of the election.
This section shall not be construed to mean that designation of a
new beneficiary causes the selection of an optional settlement. An
optional settlement shall be selected by a member in a writing filed
by the member with the board.
21463. A member who elected to receive optional settlement 2 or 3
and whose beneficiary predeceases him or her, shall be entitled to
receive the increased allowance pursuant to Section 21456 or Section
21457, as applicable, unless the member elected to waive the
provision for an increase to his or her allowance pursuant to Section
21459.
21464. Notwithstanding any provision of this part, a retired
member who chose no optional settlement or optional settlement 1 at
retirement may elect to have the actuarial equivalent, as of the date
of the election, of the allowance payable for the remainder of his
or her lifetime applied to a lesser allowance during his or her
remaining lifetime under one of the optional settlements specified in
this article and name his or her spouse as beneficiary.
The election provided by this section is irrevocable and shall be
made within 12 months following a member's marriage if the spouse is
named as beneficiary, or, in the case of a member who experienced one
of these qualifying events prior to January 1, 1988, the election
shall be made by January 1, 1989. The election shall become
effective on the date specified on the election, provided that this
date is not earlier than the day following receipt of the election in
this system pursuant to this section.
A member who married prior to or after January 1, 1988, who fails
to elect within 12 months, shall retain the right to make an election
under this section. However, the election shall become effective no
earlier than 12 months after the date it is filed with the board,
provided that neither the member nor the designated beneficiary die
prior to the effective date of the election.
This section shall not be construed to mean that designation of a
new beneficiary causes the selection of an optional settlement. An
optional settlement shall be selected by a member in a writing filed
by the member with the board.
CHAPTER 14. DEATH BENEFITS
Article 1. General Provisions
21490. A member may at any time designate a beneficiary to
receive the benefits as may be payable to his or her beneficiary or
estate under this part, by a writing filed with the board, except
that no designation may be made in derogation of the community
property share of any nonmember spouse when any benefit is derived,
in whole or in part, from community property contributions or service
credited during the period of marriage, unless the nonmember spouse
has previously obtained an alternative order for division pursuant to
Section 2610 of the Family Code.
The designation, subject to conditions imposed by board rule, may
be by class, in which case the members of the class at the time of
the member's death shall be entitled as beneficiaries. The
designation shall also be subject to the board's conclusive
determination, upon evidence satisfactory to it, of the existence,
identity or other facts relating to entitlement of any person
designated as beneficiary, and payment made by this system in
reliance on any determination made in good faith, notwithstanding
that it may not have discovered a beneficiary otherwise entitled to
share in the benefit, shall constitute a complete discharge and
release of this system for further liability for the benefit.
21491. A person who is entitled to receive a monthly allowance as
a survivor of a deceased person may designate a beneficiary to
receive the pro rata allowance payable following his or her death.
The beneficiary designation shall be filed by the survivor with the
board in writing in order to be effective, and the designation shall
be subject to all laws applicable to designations of beneficiaries.
A survivor may revoke his or her beneficiary designation at any time.
A beneficiary designation by a survivor shall not be subject to the
automatic revocation of designation provisions of Section 21492.
21492. The designation of a beneficiary under optional
settlements 2 and 3, or if a benefit involving the life contingency
of the beneficiary is provided under optional settlement 4, is
irrevocable from the time of the first payment on account of any
retirement allowance. Otherwise a designation of beneficiary under
this system is revocable at the pleasure of the member who made it.
A member's marriage, dissolution of marriage, annulment of his or her
marriage, the birth of his or her child, or his or her adoption of a
child shall constitute an automatic revocation of his or her
previous revocable designation of beneficiary. A member's
termination of employment and withdrawal of contributions shall
constitute an automatic revocation of the previous revocable
designation of beneficiary and subsequent reemployment in employment
covered by this system shall not reinstate the previous designation
of beneficiary. Any revocable designation of beneficiary in effect
on November 23, 1970, which was filed prior to the occurrence of any
of the conditions specified in this section shall become void and of
no effect on that date.
Upon revocation of any beneficiary designation, a member may
designate the same or another beneficiary by a writing filed with the
board, except as otherwise provided in Section 21490.
21493. (a) If a person had no beneficiary designation in effect
on the date of death, any benefit payable shall be paid to the
survivors of the person in the following order:
(1) The decedent's spouse.
(2) The decedent's natural or adopted children, including a
natural child adopted by another who meets any of the following
criteria:
(A) The natural parent and adopted child lived together at any
time as parent and child.
(B) The natural parent was married to or was cohabitating with the
other natural parent at the time the child was conceived and died
before the birth of the child.
(C) The child was adopted by the spouse of either of the natural
parents or after the death of either of the natural parents.
(D) The child is a natural child adopted by another as that phrase
is defined or construed by the Probate Code.
(3) The decedent's parents.
(4) The decedent's brothers and sisters.
(b) If a deceased person had no effective beneficiary designation
and there are no survivors in the groups specified in subdivision (a)
who are entitled to the benefit under this section, the benefit
shall be paid to the estate of the decedent, if the estate is either
probated or subject to probate. Any benefit payable by this system
may be paid either to the estate or to the duly authorized
representative or representatives of the estate upon receipt by this
system of a court order appointing an executor, administrator, or
personal representative.
(c) If there are no survivors in the groups specified in
subdivision (a) and the estate of the person described by subdivision
(b) does not require probate, irrespective of whether probate is
filed, the benefit shall be paid directly to the surviving next of
kin in the following order.
(1) Stepchildren.
(2) Grandchildren, including stepgrandchildren.
(3) Nieces and nephews.
(4) Great grandchildren.
(5) Cousins.
(d) For purposes of determining the application of subdivisions
(b) and (c), the amount of the benefit payable from this system shall
not be included in calculating the worth of the estate.
(e) For purposes of this section, the term "stepchild" shall mean
a person who had a regular parent-child relationship with the
deceased person.
21494. If, upon the death of a person there is a valid
beneficiary designation on file with the board naming the decedent's
estate as beneficiary, and the estate will be probated, benefits
shall be paid to the estate or to the duly authorized representative
or representatives of the estate upon receipt by this system of a
court order appointing an executor, administrator, or personal
representative.
If the deceased person had a will, but the estate does not require
probate, benefits may, in the judgment of the board, be paid to the
beneficiary or beneficiaries, as specified in the will,
notwithstanding any other provision of law.
If the deceased person left no will and the estate does not
require probate, but the decedent designated his or her estate as the
beneficiary, the benefit shall be paid to the next of kin pursuant
to Section 21493.
21495. (a) Payment of any benefit shall not be made to those
persons covered by Section 21493 if there are eligible recipients who
are living members of a higher ranking class of beneficiaries as set
forth in that section.
(b) Payments made pursuant to Section 21493, 21494, or 21506, upon
the board's good faith determination of entitlement based on
satisfactory evidence of entitlement, shall constitute a complete
discharge and release of this system from liability for those
payments.
21496. The board's good faith determination of entitlement to
payment pursuant to Section 21493, 21494, or 21506 shall be based
upon such evidence as a death certificate, marriage certificate, or
birth certificate for persons in a higher ranking group of statutory
beneficiaries. However, where the evidence is not available, the
board may accept a sworn statement by one claiming to be a
beneficiary that there are no living individuals in any of the higher
ranking groups of statutory beneficiaries, that the estate does not
require probate, or that the relationship of the claimant to the
decedent is as claimed.
21497. If the total value of the benefit to be paid pursuant to
Section 21493, 21494, or 21506 is fifty dollars ($50) or less, the
benefit may be paid to the first member of the entitled class of
beneficiaries who files a claim. If the total value of the benefit
pursuant to any of these sections exceeds fifty dollars ($50), but
the number of qualifying beneficiaries under these sections is such
that any individual benefit will be less than ten dollars ($10), the
board shall limit the number of beneficiaries so that no individual's
benefit will be less than ten dollars ($10). The board shall
determine the recipients on the basis of the order in which claims
are made.
21498. The board may fix such time as it deems reasonable during
which claims for benefits pursuant to Sections 21493, 21494, and
21506 may be made. Anyone who is provided a claim form shall be given
the same amount of time in which to file it as any other claimant.
The board shall have no duty to identify or locate any member of any
class of beneficiaries.
21499. (a) Notwithstanding Section 21498, when either an initial
payment of a preretirement or postretirement death allowance or a
preretirement or postretirement lump-sum benefit is payable in an
amount of ten dollars ($10) or more, it shall be authorized to the
Controller within 45 days of receipt by this system of all the
necessary information, including the return of warrants issued or any
overpayment outstanding after the date of the death of the
annuitant.
(b) If any payment is not made within that time limitation, the
payment shall also include interest at the net earnings rate
(including capital gains and losses) in effect at the time the
payment is made, for time following the expiration of that time
limitation.
(c) This system shall submit, annually, as part of the report
required by Section 20237, to the Legislature and the Governor a
summary of the experience of this system in making payments pursuant
to subdivision (b).
21500. (a) Whenever a person entitled to payment of a member's
accumulated contributions or any other benefit fails to claim the
payment or cannot be located or a warrant in payment is canceled
pursuant to Section 17070, the amount owed from the retirement fund
shall be administered in accordance with subdivision (c).
(b) Whenever the amount of a benefit payable by this system cannot
be determined because the recipient cannot be identified or
information necessary to determination of the benefit to be paid
cannot be ascertained, the accumulated contributions of the member on
whose account the benefit is payable shall be administered in
accordance with subdivision (c).
(c) Notwithstanding any provision of law to the contrary, the
amounts described in subdivisions (a) and (b) shall be held, or if a
warrant has been drawn the warrant shall be redeposited in the
retirement fund and held for the claimant without further
accumulation of interest, and the redeposit shall not operate to
reinstate the membership of the person with respect to whose
membership the refund or benefit was payable in this system. If the
proceeds are not claimed within four years after the date of
redeposit, they shall revert to and become a part of the reserve
established pursuant to Section 20174. Transfer to this reserve
shall be made as of the June 30th next following the expiration of
the four-year period.
The board may at any time after transfer of proceeds to the
described reserve upon receipt of proper information satisfactory to
it, return the proceeds so held in reserve to the credit of the
claimant, to be administered in the manner provided
under this system.
(d) For lump-sum death benefits administered in accordance with
subdivision (c), where this system has made a diligent effort to
identify or locate the person entitled to payment and that person
cannot be found, payment may be made to the next entitled beneficiary
or beneficiaries, upon receipt of valid claims, if two years have
passed since the date of death. Payment made by this system in good
faith and in reliance on those claims, notwithstanding that it may
fail to discover a person otherwise entitled to share in the
benefits, shall constitute a complete discharge and release of this
system for further liability for the benefits.
21501. Notwithstanding any other provision of law, a parent
having custody of surviving children eligible to receive an allowance
or a lump-sum payment payable under this part shall not be required
to become the guardian of those children in order to be paid, on
behalf of their children, the benefits prescribed for those children.
21502. If any person entitled to a benefit from this system is a
minor who has no guardian of the estate, the board, if within the
limits as to amount of payment and value of the minor's estate
specified as of the time of payment under the provisions of the
Probate Code authorizing payment to a parent of a minor entitled to
the minor's custody, may pay it to the person entitled to custody of
the minor to hold for the minor, if the person files with the board a
verified statement that the total estate of the minor does not
exceed the value so specified or, if in excess of those limits, may
pay it to the probate court, and the court may order that the money
be deposited in a bank or banks, or a trust company or companies, or
invested in an account or accounts in an insured savings and loan
association or associations, subject to withdrawal only on order of
the probate court, or it may require a guardian of the estate to be
appointed and the money paid to the guardian, or prescribe other
conditions as the court in its discretion deems to be in the best
interest of the minor. Payment so made is a full discharge of the
board and this system. The person shall account to the minor for the
money when the minor reaches the age of majority.
The term "account in an insured savings and loan association" used
in this section has the same meaning as in Section 23 of the Probate
Code.
21503. The board may select an optional settlement under Article
6 (commencing with Section 21450) of Chapter 13 on behalf of the
surviving spouse of a member who applied for retirement but who died
prior to the mailing of a retirement allowance warrant and prior to
an election in accordance with that article if all of the following
conditions are met:
(a) The application for retirement was received by this system,
prior to the date of death.
(b) The document containing the application for retirement
received by this system did not provide for a temporary election of
the optional settlement 2.
(c) The deceased member had separated from state service at least
one day prior to the effective date of retirement.
(d) The deceased member was alive on the effective date of
retirement.
(e) The beneficiary designated on the application for retirement
is the surviving spouse who requests in writing that the board make
the selection. Upon formal action by the board approving the request,
the request shall become irrevocable.
A retirement allowance provided in accordance with this section
shall be calculated as if the member had elected Section 21459.
21504. If a member dies on or after the effective date of
retirement and prior to the mailing of a retirement allowance warrant
and if the member has elected an optional settlement 2 or 3 or an
optional settlement 4 involving payment of an allowance throughout
the life of the beneficiary, or the member elected the unmodified
allowance or optional settlement 1 and if a partially continued
retirement allowance under Sections 21624 through 21631, is payable,
the death shall be considered to be death after retirement and the
applicable benefits shall be payable.
However, if the beneficiary designated on the election for
retirement is either (1) the surviving unmarried minor child or
children of the member and there is no surviving spouse eligible for
a partially continued retirement allowance under Sections 21624
through 21631, or (2) the surviving spouse of the member, the
surviving spouse so named or the legal representative of the minor
child or children so named may elect to receive benefits that would
have been payable had the death occurred under the conditions of
Section 21530. Except as provided in Section 21503, nothing in this
part permits a surviving spouse, surviving children, or any person
other than a member to elect an optional settlement.
21505. If a member who has been retired for service because he or
she has attained the mandatory age of retirement applicable to
members of his or her category dies within 30 days after the date
upon which his or her retirement was mandatory, and without having
elected an optional settlement 2 or 3 or an optional settlement if
involving payment of an allowance throughout the life of a
beneficiary under Article 6 (commencing with Section 21450) of
Chapter 13, and if no part of the allowance of the member is
automatically continued by this part after his or her death, his or
her death shall be considered as that of a member before retirement,
and the basic death benefit shall be payable, or, if the
circumstances are such that a special death benefit would be payable
if the death had occurred prior to retirement, the special death
benefit shall be payable.
21506. Any monthly allowance payable to a person, that had
accrued and remained unpaid at the time of his or her death, or any
uncashed warrant issued prior to the date of death of the person that
has been returned to this system, or any balance of prepaid
complementary health premiums received pursuant to Section 21691 or
prepaid complementary annuitant health plan premiums received
pursuant to Section 22810.1, shall be paid in the following order:
(a) In the event of the death of a retired person, to one of the
following:
(1) The beneficiary entitled to payment in accordance with an
optional settlement chosen by the member.
(2) The survivor entitled to payment of the survivor continuance
benefit provided under Section 21624.
(3) The beneficiary entitled to receive the lump-sum death benefit
provided upon death of a retired person if the person had not chosen
an optional settlement and there was no survivor who was entitled to
receive the survivor continuance benefit.
(b) In the event of the death of a person receiving a survivor
benefit, that benefit shall be paid to the beneficiary designated by
the survivor of a member under Section 21491.
(c) If there is no beneficiary entitled to receive payment under
either subdivision (a) or (b), the benefit shall be paid to either
the estate of the deceased person or the duly authorized
representative or representatives of the estate upon receipt by this
system of a court order appointing an executor, administrator, or
personal representative.
(d) In the event there is no beneficiary entitled to receive
payment of benefits under subdivision (a), (b), or (c), the benefits
shall be paid to the surviving next of kin of the person pursuant to
the order of distribution specified in Section 21493.
21507. Any lump-sum benefit, or any uncashed lump-sum death
benefit warrant, payable by this system to a beneficiary shall be
paid to the estate of the beneficiary if he or she dies prior to
payment of the benefit. The benefit may be paid to a representative
of the deceased beneficiary's estate, upon demonstration by court
documents that the person is authorized to act in that capacity.
However, if the estate of the beneficiary is not probated, the
benefits shall be paid to the beneficiary's surviving next of kin, in
the order specified in Section 21493.
21508. If any benefit is payable by this system to the estate of
a deceased person, and the estate would not be probated if no amount
were due from this system, but there is no surviving person in any of
the groups specified in Section 21493 or 21494, or if no beneficiary
can be found by the board, the board may in its discretion pay
expenses of the disposition of the body as evidenced by itemized
statements or documents the board may require. Payment may not
exceed the amount payable under this system to the estate or
beneficiary. Payment so made is a full discharge of the board and
system for the amount so paid.
21509. The provisions of Part 5 (commencing with Section 220) of
Division 2 of the Probate Code, when applicable, govern the
distribution of money payable under this system, including but not
limited to retirement allowance accrued but not received prior to
death and refund of member contributions. In applying Part 5
(commencing with Section 220) of Division 2 of the Probate Code with
respect to benefits payable to a beneficiary, membership in this
system shall be considered as having the same status as an insurance
policy issued after December 31, 1984.
Article 2. Preretirement Death Benefits
21530. (a) This system is liable for either the basic or special
death benefit upon the death of a member in any of the following
circumstances:
(1) Before the effective date of retirement, and (A) while in
state service, or (B) while absent on military service, provided the
member has made contributions during the absence under Section 20991
or has had contributions made on his or her behalf under Section
20997, or (C) within four months after discontinuance of state
service, or (D) while on an approved leave of absence, or (E) while
physically or mentally incapacitated for the performance of duty, if
the incapacity has been continuous from discontinuance of state
service, or (F) while employed as a member of a retirement system
established under the County Employees Retirement Law of 1937;
provided, the employment resulting in membership was begun on or
after October 1, 1957, and within 90 days after discontinuance of
state service.
(2) While in state service in partial service retirement pursuant
to Article 1.7 (commencing with Section 19996.30) of Chapter 7 of
Part 2.6 or Sections 21110 through 21115.
(3) On or after the effective date of retirement and before the
mailing of a retirement allowance warrant and either within four
months of discontinuance of state service or while physically or
mentally incapacitated for the performance of duty if the incapacity
has been continuous from discontinuance of state service, and
providing all of the following conditions exist:
(A) The retirement of the member was not compulsory under Article
5 (commencing with Section 21130) of Chapter 12.
(B) The member has not elected optional settlement 2 or 3 or an
optional settlement 4 involving payment of an allowance throughout
the life of a beneficiary under Article 6 (commencing with Section
21450) of Chapter 13.
(C) A partially continued allowance under Sections 21624 through
21631, is not payable.
(b) This system is liable for a limited death benefit, which
consists only of the accumulated contributions of the member payable
to his or her beneficiary or estate, under the following
circumstances:
(1) Upon the death of a member before the effective date of his or
her retirement or, with respect to (A) any member whose retirement
was not compulsory under Article 5 (commencing with Section 21130) of
Chapter 12, and (B) any member who has not elected optional
settlement 2 or 3 or an optional settlement 4 involving payment of an
allowance throughout the life of a beneficiary under Article 6
(commencing with Section 21450) of Chapter 13, on or after that
effective date and before the mailing of the first retirement
allowance warrant.
(2) Under those circumstances in which this system is not liable
for either the basic or special death benefit provided in subdivision
(a) of this section, and a partially continued allowance under
Sections 21624 through 21631, is not payable.
(c) Liability imposed on this system with respect to the death of
a member while on approved leave of absence by amendment to this
section by Chapter 1670 of the Statutes of 1965 shall extend to death
of members occurring on or after July 1, 1964, and to any benefit
for which there would have been liability with respect to the death
had that amendment been effective on that date.
21531. The basic death benefit and the limited death benefit
shall be paid as provided in this article to the beneficiary
designated by the member under Section 21490 or 21492.
21532. The basic death benefit is payable in all cases where the
retirement system is liable under Section 21530 for either the basic
or a special death benefit and the special death benefit is not
payable.
The basic death benefit shall consist of:
(a) The accumulated contributions of the member.
(b) If the member is not an insured member, or is an insured
member eligible for service retirement or the member is subject to
benefits pursuant to Section 21547, an amount, provided from
contributions by the state, or a contracting agency, equal to
one-twelfth of the annual compensation earnable by the deceased
during the 12 months immediately preceding his or her death, or the
compensation earnable by the member at the time of becoming eligible
for benefits pursuant to Section 21160 if higher, multiplied by the
number of completed years of current service credited to the member,
but not to exceed one-half of the annual compensation. If the member
is an insured member who is ineligible for service retirement and is
also credited with service as a local member only that service shall
be used in computing the amount under this subdivision and that
amount shall not be a part of the basic death benefit payable with
respect to the insured member.
(c) If the member is a state member, other than a school member,
who dies after becoming eligible for retirement with more than five
but less than six years credited service, an amount equal to 50
percent of the annual compensation earnable by the deceased member
during the 12 months immediately preceding his or her death.
The basic death benefit for a member who dies under the
circumstances described in subparagraph (F) of paragraph (1) of
subdivision (a) of Section 21530 shall not exceed an amount that,
when added to the death benefit paid for the member under the other
system, equals the maximum death benefit payable under that system,
if the death is not the result of injury or disease arising out of
and in the course of his or her employment under that system.
However, the benefit shall be at least equal to his or her
accumulated contributions. The basic death benefit for the member
shall be the amount of his or her accumulated contributions if death
is the result of disease or injury arising out of and in the course
of employment under the other system.
21533. Notwithstanding Section 20636, if a member who is an
academic employee of the California State University dies while on a
leave with pay, or within 12 months following a leave with pay,
during which the member received compensation in an amount less than
the full compensation earnable by him or her when not on leave with
pay, the benefit payable under subdivision (b) of Section 21532 shall
be based on the full compensation earnable by the member when not on
leave with pay.
21534. Liability imposed on this system with respect to the death
of a member who is an academic employee of the California State
University while on, or within 12 months following, a leave with pay
during which the member received compensation in an amount less than
the full compensation earnable by him or her when not on leave with
pay shall extend to the death of the members occurring on or after
January 1, 1973, and to any benefit for which there would have been
liability with respect to the death had Section 21533 been effective
on that date.
21535. Notwithstanding Section 20178, for member deaths occurring
on or after January 1, 1994, the accumulated contributions of a
member payable pursuant to subdivision (a) of Section 21532 shall be
increased by a factor determined by the board that is based on the
difference, at each June 30 subsequent to January 1, 1994, between
the lesser of the current interest rate or the current annual
interest rate and the 6 percent interest crediting rate on member
contributions.
21536. In the determination of the portion of the basic death
benefit provided in subdivision (b) of Section 21532, for local
members who were members of a local retirement system at the time of
that system's discontinuance wholly or in part as provided in Section
20483, service included in the calculation of the completed years of
service shall not be limited to service under this system, but
instead service rendered as members of the local system, shall also
be included.
This section shall not apply to employees of any contracting
agency nor to any such agency unless and until the contracting agency
elects to be subject to its provisions by amendment to its contract
with the board, made as provided in Section 20461.5, or unless the
agency's contract with the board includes at its effective date, a
provision making the agency and its employees subject to the
provisions of this section.
21537. The special death benefit is payable if the deceased was a
patrol, state peace officer/firefighter, state safety, state
industrial, or local safety member, if his or her death was
industrial and if there is a survivor who qualifies under subdivision
(b) of Section 21541. The Workers' Compensation Appeals Board,
using the same procedures as in workers' compensation hearings, shall
in disputed cases determine whether the death of a member was
industrial.
The jurisdiction of the Workers' Compensation Appeals Board shall
be limited solely to the issue of industrial causation, and this
section shall not be construed to authorize the Workers' Compensation
Appeals Board to award costs against this system pursuant to Section
4600, 5811, or any other provision of the Labor Code.
21538. The special death benefit is also payable if the deceased
was a state member appointed by the Governor, the Director of
Corrections, or the Board of Prison Terms, if his or her death
occurred as a result of injury or disease arising out of and in the
course of his or her official duties within a state prison or
facility of the Department of Corrections, and if there is a survivor
who qualifies under subdivision (b) of Section 21541. The Workers'
Compensation Appeals Board, using the same procedure as in workers'
compensation hearings, shall in disputed cases determine whether the
death of the member occurred as a result of the injury or disease.
The jurisdiction of the Workers' Compensation Appeals Board shall
be limited solely to the issue of industrial causation, and this
section shall not be construed to authorize the Workers' Compensation
Appeals Board to award costs against this system pursuant to Section
4600 or 5811 or any other provision of the Labor Code.
21539. The special death benefit payable with respect to a member
who at death prior to March 7, 1973, was a warden, forestry, harbor
police, or law enforcement member shall be continued in accordance
with the provisions of this part as they read and applied to that
benefit on the day preceding that date.
21540. The special death benefit is also payable if the deceased
was the Secretary of the Youth and Adult Corrections Agency, or was a
state member appointed by the Secretary of the Youth and Adult
Corrections Agency, the Department of the Youth Authority, the
Superintendent of the California Institution for Women, or the Women'
s Board of Terms and Paroles, the Board of Corrections, or was a
member of the Board of Corrections or the Department of the Youth
Authority not already classified as a prison member, provided that
his or her death occurred as a result of misconduct of an inmate of a
state prison, correctional school, or facility of the Department of
Corrections or the Department of the Youth Authority, or a parolee
therefrom.
The special death benefit provided by this section is not payable
unless the death of the member arose out of and was in the course of
his or her official duties and unless there is a survivor who
qualifies under subdivision (b) of Section 21541. The Workers'
Compensation Appeals Board, using the same procedure as in workers'
compensation hearings, shall, in disputed cases, determine whether
the member's death arose out of and in the course of his or her
official duties.
A natural parent of surviving children eligible to receive an
allowance payable under this section shall not be required to become
the guardian of surviving unmarried children under 18 years of age in
order to be paid the benefits prescribed for those children.
The jurisdiction of the Workers' Compensation Appeals Board shall
be limited solely to the issue of industrial causation, and this
section shall not be construed to authorize the Workers' Compensation
Appeals Board to award costs against this system pursuant to Section
4600 or 5811 or any other provision of the Labor Code.
21540.5. The special death benefit is also payable if the
deceased was a state or local miscellaneous member if the death of
the member was a direct consequence of a violent act perpetrated on
his or her person that arose out of and was in the course of his or
her official duties and there is a survivor who qualifies under
subdivision (b) of Section 21541. The Workers' Compensation Appeals
Board, using the same procedure as in workers' compensation hearings,
shall, in disputed cases determine whether the member's death was a
direct consequence of a violent act perpetrated on his or her person
that arose out of and in the course of his or her official duties.
A natural parent of surviving children eligible to receive an
allowance payable under this section shall not be required to become
the guardian of surviving unmarried children under 18 years of age in
order to be paid the benefits prescribed for those children.
The jurisdiction of the Workers' Compensation Appeals shall be
limited solely to the issue of industrial causation, and this section
shall not be construed to authorize the Workers' Compensation
Appeals Board to award costs against this system pursuant to Section
4600 or 5811 or any other provision of the Labor Code.
The benefits provided by this section shall be applicable to any
acts that occurred on and after July 1, 1993.
This section shall not apply to a contracting agency nor its
employees unless and until the agency elects to be subject to it by
amendment to its contract made in the manner prescribed for approval
of contracts, or in the case of a new contract, by express provision
of the contract.
21541. The special death benefit consists of the following:
(a) An amount equal to and derived from the same source as the
basic death benefit exclusive of the contributions from which the
annuity provided under subdivision (d) is paid.
(b) An amount sufficient, when added to the amount provided under
subdivision (a), to provide, when applied according to tables adopted
by the board, a monthly death allowance equal to one-half of his or
her final compensation in the membership category applicable to him
or her at the time of the injury or the onset of the disease causing
death, payable to the surviving spouse to whom he or she was married
prior to sustaining the injury or disease resulting in death, as long
as the surviving spouse lives or until his or her remarriage; or, if
there is no surviving spouse or if the spouse dies or remarries
before all children of the deceased member attain age 22, to his or
her children under 22 collectively until every child shall have died,
married, or attained age 22. However, no child shall receive any
part of the allowance after marrying or attaining age 22.
(c) During the lifetime of the surviving spouse or until the
spouse remarries, an additional percentage of the death benefit
allowed by this section, exclusive of the annuity under subdivision
(d), shall be paid to the spouse of a member who is killed in the
performance of his or her duty or who dies as a result of an accident
or an injury caused by external violence or physical force, incurred
in the performance of his or her duty, for each of his or her
children during the lifetime of the child, or until the child marries
or reaches the age of 22, as follows: for one child, 25 percent;
for two children, 40 percent; and for three or more children, 50
percent.
(d) An annuity that is the actuarial equivalent, assuming monthly
payments for life to the surviving spouse, of the deceased's
accumulated additional contributions at the date of his or her death,
plus his or her accumulated contributions at that date based on
compensation earned in any membership category other than the
category applicable to him or her at the time of the injury or the
onset of the disease causing death.
If the surviving spouse does not have custody of the member's
children, the additional amount payable pursuant to this section
shall be payable to the person having custody of the children for
each child during the lifetime of the child, or until the child
marries or reaches the age of 22.
The computation for time prior to entering the membership category
applicable to the deceased at the time of the injury or the onset of
the disease causing death shall be based on the compensation
earnable by him or her in the position first held by him or her in
that category.
"Spouse," for purposes of this section, means a wife or husband.
(e) On and after October 1, 1965, this section shall apply to all
contracting agencies and to the employees of all contracting agencies
whether or not the agencies have previously elected to be subject to
this section.
Any child whose eligibility for an allowance pursuant to this
section, commenced on or after October 1, 1965, shall lose that
eligibility effective on the date of his or her adoption.
21542. The special death benefit shall begin to accrue on the day
next following the date of the member's death, and shall be paid in
monthly installments to the surviving spouse and children as
prescribed in Section 21541. The surviving spouse or the guardian of
the minor child or children entitled to the special death benefit
may elect, before the first payment, to receive the basic death
benefit in lieu of the special death benefit. The election precludes
a claim to benefits under Section 4707 of the Labor Code as the
special death benefit is deemed payable by this system and is
irrevocable.
21543. If payment of the special death benefit is stopped because
of remarriage or death of the surviving spouse or death, marriage,
or attainment of the age of 22 years by a child before the sum of the
monthly payment made, exclusive of the annuity derived from the
accumulated additional contribution of the deceased, equals the basic
death benefit, a lump sum equal to the difference shall be paid the
remarried surviving spouse, or if there is no surviving spouse, to
the surviving children of the deceased member, share and share alike,
or if there are no children, to the estate of the person last
entitled to the allowance. In that event, or if there is no
surviving spouse, the accumulated additional contributions of the
deceased, as they were at his or her death, less the annuity paid as
derived from those contributions, and plus interest credited to the
accumulated additional contributions, shall be paid in the manner
provided in this article for the payments of amounts due in the
absence of a designated beneficiary.
21544. Upon notice of a death as a result of which the special
death benefit may be payable, and when there is a survivor who would
qualify under subdivision (b) of Section 21541, the board, or in
disputed cases, the Workers' Compensation Appeals Board, shall
determine whether the death was industrial, and pending final
determination of the issue, the board shall temporarily pay special
death benefits. The temporary payments shall be deducted from any
other death benefits otherwise payable if the death is determined not
to be industrial.
21546. Upon the death of a member who has attained the minimum
age for voluntary service retirement applicable to him or her in his
or her last employment preceding death, and who is eligible to retire
and in circumstances in which the basic death benefit is payable
other than solely that of membership in a county retirement system,
or a retirement system maintained by the university, a monthly
allowance equal to one-half of and derived from the same source as
the unmodified retirement allowance which the member would have been
entitled to receive if he or she had retired for service on the date
of his or her death shall be payable:
(a) To the member's surviving spouse as long as he or she lives or
until his or her remarriage.
(b) To the children under age 18 collectively if there is no
surviving spouse or if the surviving spouse dies or remarries before
all children of the deceased member attain age 18, until every child
dies or attains age 18. No child shall receive any allowance after
marrying or attaining the age of 18.
Where a member does not have a surviving spouse nor any children
under the age of 18 years at the time of death, no allowance shall be
payable under this section.
No allowance shall be payable under this section if a special
death benefit is payable.
The allowance provided by this section shall be paid in lieu of
the basic death benefit but a surviving spouse qualifying for the
allowance may elect before the first payment on account of it to
receive the basic death benefit in lieu of the allowance.
The allowance provided by this section shall be paid in lieu of
the basic death benefit but the guardian of the minor child or
children qualifying for the allowance may elect, before the first
payment on account of it, to receive the basic death benefit in lieu
of the allowance. If an election of the basic death benefit is made,
the basic death benefit shall be paid to all the member's surviving
children, regardless of age or marital status, in equal shares.
If the total of the payments made are less than the basic death
benefit that was otherwise payable on account of the member's death,
the amount of the basic death benefit less any payments made pursuant
to this section shall be paid in a lump sum as follows:
(a) If the person last entitled to the allowance is the remarried
spouse of the member, to the remarried spouse.
(b) Otherwise, to the surviving children of the member, share and
share alike, or if there are no children, to the estate of the person
last entitled to the allowance.
The board shall compute the amount by which benefits paid pursuant
to this section exceed the benefits that would otherwise be payable
and shall charge any excess against the contributions of the state so
that there shall be no increase in contributions of members by
reason of benefits paid pursuant to this section. As used in this
section, "a surviving spouse" means a spouse who was married to the
member for at least one year prior to his or her death, and "child"
includes a posthumously born child of the member.
On and after April 1, 1972, this section shall apply to all
contracting agencies and to the employees of those agencies with
respect to deaths occurring after April 1, 1972, whether or not the
agencies have previously elected to be subject to this section.
21547. (a) Notwithstanding any other provision of this article
requiring attainment of the minimum age for voluntary service
retirement to him or her in his or her last employment preceding
death, upon the death of a state member on or after January 1, 1993,
who is credited with 20 years or more of state service, the surviving
spouse, or eligible children if there is no eligible spouse, may
receive a monthly allowance in lieu of the basic death benefit. The
board shall notify the eligible survivor, as defined in Section
21546, of this alternate death benefit, which shall be funded from
the amount that would have been otherwise payable as the basic death
benefit and from the amount of employer contributions that would be
attributed to the state member's period of compensated service. The
board shall determine the present value of the total amount that
shall fund this alternate death benefit for the survivor, and then
calculate the monthly allowance that shall be payable under the terms
and conditions of Section 21546.
(b) This section shall only apply to members employed in state
bargaining units for which a memorandum of understanding has been
agreed to by the state employer and the recognized employee
organization to become subject to this section, members who are
excluded from the definition of state employees in subdivision (c) of
Section 3513, and members employed by the executive branch of
government who are not members of the civil service.
(c) For purposes of this section, "state service" means service
rendered as a state employee, as defined in Section 19815. This
section shall not apply to any contracting agency nor to the
employees of any contracting agency.
21548. The surviving spouse of a member who has attained the
minimum age for voluntary service retirement applicable to him or her
in his or her last employment preceding death, and who is eligible
to receive an allowance pursuant to Section 21546, shall instead
receive an allowance that is equal to the amount that the member
would have received if the member had been retired from service on
the date of death and had elected optional settlement 2 and Section
21459. The surviving spouse of a member who has attained the minimum
age for voluntary service retirement applicable to him or her in his
or her last employment preceding death, and who is eligible to
receive a special death benefit in lieu of an allowance under Section
21546, may elect to instead receive an allowance that is equal to
the amount that the member would have received if the member had been
retired from service on the date of death and had elected optional
settlement 2 and Section 21459.
The allowance shall be payable as long as the surviving spouse
lives or until remarriage. Upon the death or remarriage of the
surviving spouse, the benefit shall be continued to minor children,
as defined in Section 6500 of the Family Code, or a lump sum shall be
paid as provided under circumstances specified in Section 21546 or
in Sections 21541 and 21543, as the case may be.
The allowance provided by this section shall be paid in lieu of
the basic death benefit, but the surviving spouse qualifying for the
allowance may elect before the first payment on account of it to
receive the basic death benefit in lieu of the allowance.
This section shall apply with respect to state members whose death
occurs on and after July 1, 1976.
All references in this code to Section 21546 shall be deemed to
include this section in the alternative.
This section shall not apply to any contracting agency nor to the
employees of any contracting agency unless and until the agency
elects to be subject to this section by amendment to its contract
made in the manner prescribed for approval of contracts, except that
an election among the employees is not required, or, in the case of
contracts made after January 1, 1985, by express provision in the
contract making the contracting agency subject to this section.
21549. When a member, who is eligible to retire and who has
attained the minimum age for voluntary service retirement applicable
to him or her in his or her last employment preceding death, dies in
circumstances in which the basic death benefit is payable other than
solely upon the basis of membership in a county retirement system or
a retirement system maintained by the university, and when the member
has made a preretirement election of the benefits provided by
Section 21546 for his or her surviving spouse and, if none, for any
eligible surviving children or Section 21548, if payable, for his or
her surviving spouse, and the designated spouse or children survive
the member, a monthly allowance equal to the amount provided by the
elected benefit shall be payable to the designated spouse or
children.
No benefit is payable under this section if the special death
benefit is payable.
The allowance provided by this section shall be paid in lieu of
the basic death benefit, but a surviving spouse designated for the
allowance may elect, before the first payment on account of it, to
receive the basic death benefit in lieu of the allowance.
The allowance provided by this section shall be paid in lieu of
the basic death benefit but the guardian of the minor child or
children designated for the allowance may elect, before the first
payment on account of it, to receive the basic death benefit in lieu
of the allowance. If an election of the basic death benefit is made,
the basic death benefit shall be paid to all the member's surviving
children, regardless of age or marital status, in equal shares.
If the accrued allowance paid under this section is less than the
basic death benefit payable, any balance shall be paid as a lump sum
to the remarried spouse; if there is no remarried spouse, then to the
surviving children of the member, share and share alike; if there is
no remarried spouse and no surviving children, then to the estate of
the person last entitled.
This section shall apply only to a member whose death occurs on or
after January 1, 1990.
As used in this section, "a surviving spouse" means a husband or
wife who was married to the member for a continuous period beginning
at least one year prior to his or her death. "Children" means
unmarried children under age 18, until they reach age 18 or marry
prior to age 18.
Nothing in this section is intended to, or shall be construed to,
diminish any rights conferred by Section 21365.5 or 21365.6 or by any
other provision of this part.
21550. For the purpose of Sections 21541, 21546, 21548 and
Article 3 (commencing with Section 21570):
(a) Any surviving spouse of a member whose death occurs on or
after January 1, 1983, may irrevocably elect within 24 months of the
death of the member to receive a reduced lifetime allowance that is
the actuarial equivalent of the benefit otherwise payable.
(b) The allowances payable pursuant to subdivision (a) shall
commence to be payable on the first day of the calendar month
immediately following the calendar month in which the election is
received by this system.
21551. Notwithstanding any other provisions of this part, the
benefits payable to a surviving spouse pursuant to Sections 21541,
21546, 21548, and Article 3 (commencing with Section 21570), shall be
paid as follows:
(a) Any surviving spouse who remarries on or after September 19,
1989, shall continue to receive the lifetime allowance to which he or
she is entitled, without reduction. However, pursuant to Section
22811.5, the surviving spouse who remarries on or after that date may
not enroll his or her new spouse or stepchildren as family members
under the continued health benefits coverage of the surviving spouse.
(b) Any surviving spouse who elected the reduction specified in
Section 21550 shall be restored to the lifetime allowance to which he
or she was originally entitled, for all benefits payable on or after
September 19, 1989.
This section shall not apply to any contracting agency, unless and
until the agency elects to be subject to this section by amendment
to its contract made in the manner prescribed for approval of
contracts or, in the case of contracts made after September 19, 1989,
by express provision in the contract making the contracting agency
subject to this section. This section shall only apply to a
surviving spouse of a local member employed by the contracting agency
whose remarriage occurred on or after the date the agency elects to
be subject to this section. Any surviving spouse of a local member
of the contracting agency, who elected the reduction specified in
Section 21372, shall be restored to the lifetime allowance to which
he or she was originally entitled, for all benefits payable on or
after the election by the contracting agency to be subject to this
section.
This section shall apply to a surviving spouse of a school member
employed by a school district whose remarriage occurred on or after
January 1, 1991. Any surviving spouse of a school member, who
elected the reduction specified in Section 21372, shall be restored
to the lifetime allowance to which he or she was originally entitled,
for all benefits payable on or after January 1, 1991.
The employer is not required to meet and confer with an employee
organization regarding the subject matter of this section, and the
subject matter shall not be included within the scope of
representation pursuant to Section 3504.
Article 3. Preretirement 1959 Survivor Allowance
21570. No person shall receive more than one allowance under this
article and that allowance shall be the largest of the monthly
allowances to which he or she would otherwise be entitled.
21571. (a) If the death benefit provided by Section 21532 is
payable on account of a member's death that occurs under
circumstances other than those described in subparagraph (F) of
paragraph 1 of subdivision (a) of Section 21530, or if an allowance
under Section 21546 is payable, the payment pursuant to subdivision
(b) shall be made, in the following order of priority:
(1) The surviving wife or surviving husband of the member, who has
the care of unmarried children, including stepchildren, of the
member who are under 22 years of age, or are incapacitated because of
disability that began before and has continued without interruption
after attainment of that age.
(2) The guardian or conservator of surviving unmarried children,
including stepchildren, of the member who are under 22 years of age
or are so incapacitated.
(3) The surviving wife or surviving husband of the member, who
does not qualify under paragraph (1).
(4) Each surviving parent of the member.
(b) Regardless of the benefit provided by Section 21532 and of the
beneficiary designated by the member under that section, or
regardless of the allowance provided under Section 21546, the
following applicable 1959 survivor allowance, under the conditions
stated and from contributions of the state, shall be paid:
(1) A surviving spouse who was either continuously married to the
member for at least one year prior to death, or was married to the
member prior to the occurrence of the injury or onset of the illness
that resulted in death, and has the care of unmarried children,
including stepchildren, of the deceased member who are under 22 years
of age or are so incapacitated, shall be paid three hundred sixty
dollars ($360) if there is one child or four hundred thirty dollars
($430) per month if there are two or more children. If there also
are children who are not in the care of the surviving spouse, the
portion of the allowance payable under this paragraph, assuming that
these children were in the care of the surviving spouse, which is in
excess of one hundred eighty dollars ($180) per month, shall be
divided equally among all those children and payments made to the
spouse and other children, as the case may be.
(2) If there is no surviving spouse, or if the surviving spouse
dies or remarries, and if there are unmarried children, including
stepchildren, of the deceased member who are under 22 years of age or
are so incapacitated, or if there are children not in the care of
the spouse, the children shall be paid an allowance as follows:
(A) If there is only one child, the child shall be paid one
hundred eighty dollars ($180) per month.
(B) If there are two children, the children shall be paid three
hundred sixty dollars ($360) per month divided equally between them.
(C) If there are three or more children, the children shall be
paid four hundred thirty dollars ($430) per month divided equally
among them.
(3) A surviving spouse who has attained or attains the age of 62
years and, with respect to that surviving spouse, who was either
continuously married to the member for at least one year prior to
death, or who was married to the member prior to the occurrence of
the injury or onset of the illness which resulted in death and has
not remarried subsequent to the member's death, shall be paid one
hundred eighty dollars ($180) per month. No allowance shall be paid
under this paragraph, while the surviving spouse is receiving an
allowance under paragraph (1), or while an allowance is being paid
under subparagraph (C) of paragraph (2). The allowance paid under
this paragraph shall be seventy dollars ($70) per month while an
allowance is being paid under subparagraph (B) of paragraph (2).
(4) If there is no surviving spouse or surviving child who
qualifies for a 1959 survivor allowance, or if the surviving spouse
dies or remarries and there is no surviving child, or if the
surviving spouse dies or remarries and the children die or marry or,
if not incapacitated, reach age 22, each of the member's dependent
parents who has attained or
attains the age of 62, and who received at least one-half of his or
her support from the member at the time of the member's death, shall
be paid one hundred eighty dollars ($180) per month.
(c) "Stepchildren," for purposes of this section, shall include
only stepchildren of the member living with him or her in a regular
parent-child relationship at the time of his or her death.
(d) The amendments to this section by Chapter 1617 of the Statutes
of 1971 shall apply only to 1959 survivor allowances payable April
1, 1972, and thereafter.
(e) This section shall not apply to any member in the employ of an
employer not subject to this section on January 1, 1994.
21572. (a) In lieu of benefits provided in Section 21571, if the
death benefit provided by Section 21532 is payable on account of a
state member's death that occurs under circumstances other than those
described in subparagraph (F) of paragraph (1) of subdivision (a) of
Section 21530, or if an allowance under Section 21546 is payable,
the payment pursuant to subdivision (b) shall be made, in the
following order of priority:
(1) The surviving wife or surviving husband of the member, who has
the care of unmarried children, including stepchildren, of the
member who are under 22 years of age, or are incapacitated because of
disability that began before and has continued without interruption
after attainment of that age.
(2) The guardian of surviving unmarried children, including
stepchildren, of the member who are under 22 years of age or are so
incapacitated.
(3) The surviving wife or surviving husband of the member, who
does not qualify under paragraph (1).
(4) Each surviving parent of the member.
(b) Regardless of the benefit provided by Section 21532 and of the
beneficiary designated by the member under that section, or
regardless of the allowance provided under Section 21546, the
following applicable 1959 survivor allowance, under the conditions
stated and from contributions of the state, shall be paid:
(1) A surviving spouse who was either continuously married to the
member for at least one year prior to death, or was married to the
member prior to the occurrence of the injury or onset of the illness
that resulted in death, and has the care of unmarried children,
including stepchildren, of the deceased member who are under 22 years
of age or are so incapacitated, shall be paid four hundred fifty
dollars ($450) if there is one child or five hundred thirty-eight
dollars ($538) per month if there are two or more children. If there
also are children who are not in the care of the surviving spouse,
the portion of the allowance payable under this paragraph, assuming
that these children were in the care of the surviving spouse, that is
in excess of two hundred twenty-five dollars ($225) per month, shall
be divided equally among all those children and payments made to the
spouse and other children, as the case may be.
(2) If there is no surviving spouse, or if the surviving spouse
dies or remarries, and if there are unmarried children, including
stepchildren, of the deceased member who are under 22 years of age or
are so incapacitated, or if there are children not in the care of
the spouse, the children shall be paid an allowance as follows:
(A) If there is only one child, the child shall be paid two
hundred twenty-five dollars ($225) per month.
(B) If there are two children, the children shall be paid four
hundred fifty dollars ($450) per month divided equally between them.
(C) If there are three or more children, the children shall be
paid five hundred thirty-eight dollars ($538) per month divided
equally among them.
(3) A surviving spouse who has attained or attains the age of 62
years and, with respect to that surviving spouse, who was either
continuously married to the member for at least one year prior to
death, or was married to the member prior to the occurrence of the
injury or onset of the illness which resulted in death and has not
remarried subsequent to the member's death, shall be paid two hundred
twenty-five dollars ($225) per month. No allowance shall be paid
under this paragraph, while the surviving spouse is receiving an
allowance under paragraph (1), or while an allowance is being paid
under subparagraph (C) of paragraph (2). The allowance paid under
this paragraph shall be eighty-eight dollars ($88) per month while an
allowance is being paid under subparagraph (B) of paragraph (2).
(4) If there is no surviving spouse or surviving child who
qualifies for a 1959 survivor allowance, or if the surviving spouse
dies or remarries and there is no surviving child, or if the
surviving spouse dies or remarries and the children die or marry or,
if not incapacitated, reach age 22, each of the member's dependent
parents who has attained or attains the age of 62, and who received
at least one-half of his or her support from the member at the time
of the member's death, shall be paid two hundred twenty-five dollars
($225) per month.
(c) "Stepchildren," for purposes of this section, shall include
only stepchildren of the member living with him or her in a regular
parent-child relationship at the time of his or her death.
(d) This section shall apply to beneficiaries receiving 1959
survivor allowances on July 1, 1975, as well as to beneficiaries with
respect to the death of a state member occurring on or after July 1,
1975.
(e) This section shall apply, with respect to benefits payable on
and after July 1, 1981, to all members employed by a school employer,
and school safety members employed with a school district or
community college district as defined in subdivision (i) of Section
20057, except that it shall not apply, without contract amendment,
with respect to safety members who became members after July 1, 1981.
All assets and liabilities of all school employers, and their
employees, on account of benefits provided under this article shall
be pooled into a single account, and a single employer rate shall be
established to provide benefits under this section on account of all
miscellaneous members employed by a school employer and all safety
members who are members on July 1, 1981.
(f) This section shall not apply to any member in the employ of an
employer not subject to this section on January 1, 1994.
(g) A contracting agency may, by amending its contract, elect to
make this section applicable to local members employed by the agency.
21573. (a) In lieu of benefits provided in Section 21571 or
Section 21572, if the death benefit provided by Section 21532 is
payable on account of a state member's death that occurs under
circumstances other than those described in subparagraph (F) of
paragraph (1) of subdivision (a) of Section 21530, or if an allowance
under Section 21546 is payable, the payment pursuant to subdivision
(b) shall be made in the following order of priority:
(1) The surviving wife or surviving husband of the member, who has
the care of unmarried children, including stepchildren, of the
member who are under 22 years of age, or are incapacitated because of
disability that began before and has continued without interruption
after attainment of that age.
(2) The guardian of surviving unmarried children, including
stepchildren, of the member who are under 22 years of age or are so
incapacitated.
(3) The surviving wife or surviving husband of the member, who
does not qualify under paragraph (1).
(4) Each surviving parent of the member.
(b) Regardless of the benefit provided by Section 21532 and of the
beneficiary designated by the member under that section, or
regardless of the allowance provided under Section 21546, the
following applicable 1959 survivor allowance, under the conditions
stated and from contributions of the state, shall be paid:
(1) A surviving spouse who was either continuously married to the
member for at least one year prior to death, or who was married to
the member prior to the occurrence of the injury or onset of the
illness which resulted in death, and has the care of unmarried
children, including stepchildren, of the deceased member who are
under 22 years of age or are so incapacitated, shall be paid seven
hundred dollars ($700) per month if there is one child, or eight
hundred forty dollars ($840) per month if there are two or more
children. If there also are children who are not in the care of the
surviving spouse, the portion of the allowance payable under this
paragraph, assuming that these children were in the care of the
surviving spouse, that is in excess of three hundred fifty dollars
($350) per month, shall be divided equally among all those children
and payments made to the spouse and other children, as the case may
be.
(2) If there is no surviving spouse, or if the surviving spouse
dies or remarries, and if there are unmarried children, including
stepchildren, of the deceased member who are under 22 years of age or
are so incapacitated, or if there are children not in the care of
the spouse, the children shall be paid an allowance as follows:
(A) If there is only one child, the child shall be paid three
hundred fifty dollars ($350) per month.
(B) If there are two children, the children shall be paid seven
hundred dollars ($700) per month divided equally between them.
(C) If there are three or more children, the children shall be
paid eight hundred forty dollars ($840) per month divided equally
among them.
(3) A surviving spouse who has attained or attains the age of 62
years, and, with respect to that surviving spouse, who was either
continuously married to the member for at least one year prior to
death, or who was married to the member prior to the occurrence of
the injury or onset of the illness which resulted in death and has
not remarried subsequent to the member's death, shall be paid three
hundred fifty dollars ($350) per month. No allowance shall be paid
under paragraph (1), or while an allowance is being paid under
subparagraph (C) of paragraph (2). The allowance paid under this
paragraph shall be one hundred forty dollars ($140) per month while
an allowance is being paid under subparagraph (B) of paragraph (2).
(4) If there is no surviving spouse or surviving child who
qualifies for the 1959 survivor allowance, or if the surviving spouse
dies or remarries and there is no surviving child, or if the
surviving spouse dies or remarries and the children die or marry or,
if not incapacitated, reach 22 years of age, each of the member's
dependent parents who has attained or attains the age of 62 years,
and who received at least one-half of his or her support from the
member at the time of the member's death, shall be paid three hundred
fifty dollars ($350) per month.
(c) "Stepchildren," for purposes of this section, shall include
only stepchildren of the member living with the member in a regular
parent-child relationship at the time of the death of the member.
(d) This section shall apply to beneficiaries of state members
whose death occurred before January 1, 1985. Where a surviving
spouse attained age 62 prior to January 1, 1987, entitlement shall
exist retroactive to January 1, 1985, or to his or her 62nd birthday,
whichever is later. All assets and liabilities of all state
agencies and their employees on account of benefits provided to
beneficiaries specified in this subdivision shall be pooled into a
single account. The board shall transfer from the reserve for 1959
survivor contributions retained in the retirement fund, an amount
sufficient to pay the cost of the increased benefits provided by this
subdivision for beneficiaries of members who died on or before
December 31, 1984.
(e) This section shall not apply to beneficiaries with respect to
the death of a state member, except as provided in subdivision (i),
occurring on or after January 1, 1985, unless provided for in a
memorandum of understanding reached pursuant to Section 3517.5, or
authorized by the Director of Personnel Administration for
classifications of state employees that are excluded from, or not
subject to, collective bargaining. The memorandum of understanding
adopting this section shall be controlling without further
legislative action, except that if those provisions of a memorandum
of understanding require the expenditure of funds, those provisions
shall not become effective unless approved by the Legislature as
provided by law.
(f) This section shall apply, with respect to benefits payable on
and after January 1, 1985, to school members and to school safety
members, as defined in Section 20444. All assets and liabilities of
all school employers, and their employees, on account of benefits
provided under this article shall be pooled into a single account,
and a single employer rate shall be established to provide benefits
under this section on account of school members employed by a school
employer.
(g) This section shall apply to members of a contracting agency
that, by, in its original contract, or amending its contract, first
elects effective on or after January 1, 1985, to make this article
applicable to local members employed by the agency. On and after
January 1, 1985, contracting agencies already subject to Section
21571 or Section 21572 may elect by contract amendment to be subject
to this section. All assets and liabilities of all contracting
agencies subject to this section, and their employees, on account of
benefits provided under this article shall be pooled into a single
account, and a single employer rate shall be established to provide
benefits under this section on account of members employed by a
contracting agency which is subject to this section. Any public
agency first contracting with the board on and after January 1, 1994,
or any contracting agency amending its contract to remove exclusions
of member classifications on or after January 1, 1994, that has not,
pursuant to Section 418 of Title 42 of the United States Code,
entered into an agreement with the federal government for the
coverage of its employees under the federal system, shall be subject
to this section.
(h) The rate of contribution of an employer subject to this
section shall be figured using the term insurance valuation method.
If a contracting agency that is subject to this section has a surplus
in its 1959 survivor benefit account as of the date the contracting
agency becomes subject to this section, the surplus shall be applied
to reduce its rate of contribution. If a contracting agency that is
subject to this section has a deficit in its 1959 survivor benefit
account as of the date the contracting agency becomes subject to this
section, its rate of contribution shall be increased until the
deficit is paid.
(i) This section shall not apply to beneficiaries with respect to
the death of a state member employed by the California State
University occurring on or after January 1, 1988, unless provided for
in a memorandum of understanding reached pursuant to Chapter 12
(commencing with Section 3560) of Division 4 of Title 1, or
authorized by the Trustees of the California State University for
employees excluded from collective bargaining. The memorandum of
understanding shall be controlling without further legislative
action, except that if the provisions of a memorandum of
understanding require the expenditure of funds, the provisions shall
not become effective unless approved by the Legislature in the annual
Budget Act.
21574. (a) In lieu of benefits provided in Section 21571, 21572,
or 21573, if the death benefit provided by Section 21532 is payable
on account of a local member's death that occurs under circumstances
other than those described in subparagraph (F) of paragraph (1) of
subdivision (a) of Section 21530, or if an allowance under Section
21546 is payable, the payment pursuant to subdivision (b) shall be
made in the following order of priority:
(1) The surviving spouse of the member, who has the care of
unmarried children, including stepchildren, of the member who are
under 22 years of age, or are incapacitated because of disability
that began before and has continued without interruption after the
attainment of that age.
(2) The guardian of surviving unmarried children, including
stepchildren, of the member who are 22 years of age or are so
incapacitated.
(3) The surviving spouse of the member, who does not qualify under
paragraph (1).
(4) Each surviving parent of the member.
(b) Regardless of the benefit provided by Section 21532 and of the
beneficiary designated by the member under that section, or
regardless of the allowance provided under Section 21546, the
following applicable 1959 survivor allowance, under the conditions
stated and from contributions of the contracting agency, shall be
paid:
(1) A surviving spouse who was married to the member prior to the
occurrence of the injury or onset of the illness that resulted in
death, and has the care of unmarried children, including
stepchildren, of the deceased member who are under 22 years of age or
are so incapacitated, shall be paid one thousand nine hundred
dollars ($1,900) per month if there is one child or two thousand two
hundred eighty dollars ($2,280) per month if there are two or more
children. If there also are children who are not in the care of the
surviving spouse, the portion of the allowance payable under this
paragraph, assuming that these children were in the care of the
surviving spouse, that is in excess of nine hundred fifty dollars
($950) per month, shall be divided equally among all those children
and payment made to the spouse and other children, as the case may
be.
(2) If there is no surviving spouse, or if the surviving spouse
dies or remarries, and if there are unmarried children, including
stepchildren, of the deceased member who are under 22 years of age or
are so incapacitated, or if there are children not in the care of
the spouse, the children shall be paid an allowance as follows:
(A) If there is only one child, the child shall be paid nine
hundred fifty dollars ($950) per month.
(B) If there are two children, the children shall be paid one
thousand nine hundred dollars ($1,900) per month divided equally
between them.
(C) If there are three or more children, the children shall be
paid two thousand two hundred eighty dollars ($2,280) per month
divided equally among them.
(3) A surviving spouse who has attained or attains the age of 60
years, and who was married to the member prior to the occurrence of
the injury or onset of the illness that resulted in death and has not
remarried subsequent to the member's death, shall be paid nine
hundred fifty dollars ($950) per month. No allowance shall be paid
under paragraph (1), or while an allowance is being paid under
subparagraph (C) of paragraph (2). The allowance paid under this
paragraph shall be three hundred eighty dollars ($380) per month
while an allowance is being paid under subparagraph (B) of paragraph
(2).
(4) If there is no surviving spouse or surviving child who
qualifies for the 1959 survivor allowance, or if the surviving spouse
dies or remarries and there is no surviving child, or if the
surviving spouse dies or remarries and the children die or marry or,
if not incapacitated, reach 22 years of age, each of the member's
dependent parents who has attained or attains the age of 60 years,
and who received at least one-half of his or her support from the
member at the time of the member's death, shall be paid nine hundred
fifty dollars ($950) per month.
(c) "Stepchildren," for purposes of this section, shall include
only stepchildren of the member living with the member in a regular
parent-child relationship at the time of the death of the member.
(d) This section shall only apply to members of a contracting
agency, which by amending its contract, first elects effective on or
after January 1, 1994, to make this section applicable to local
members employed by the agency. On and after January 1, 1994,
contracting agencies already subject to Section 21571, 21572, or
21573 may elect by contract amendment to be subject to this section.
Notwithstanding Section 21573, a public agency first contracting
with the board on and after January 1, 1994, may include this section
in its contract. All assets and liabilities of all contracting
agencies subject to this section, and their employees, on account of
benefits provided under this article shall be pooled into a single
account, and a single employer rate shall be established to provide
benefits under this section on account of members employed by a
contracting agency which is subject to this section.
(e) The rate of contribution of an employer subject to this
section shall be calculated using the term insurance valuation
method. If a contracting agency which is subject to this section has
a surplus in its 1959 survivor benefit account as of the date the
contracting agency becomes subject to this section, the surplus shall
be applied to reduce its rate of contribution. If a contracting
agency which is subject to this section has a deficit in its 1959
survivor benefit account as of the date the contracting agency
becomes subject to this section, its rate of contribution shall be
increased until the deficit is paid.
21575. When the survivor is entitled to receive a monthly
allowance as a special death benefit provided by Article 1
(commencing with Section 21490), Article 2 (commencing with Section
21530), or Article 5 (commencing with Section 21620) and at the same
time is entitled to receive a 1959 survivor allowance, the 1959
survivor allowance payable in any month shall be reduced by the
amount of the other allowance or benefit.
21576. This article applies from and after January 1, 1960, or
the date of a member's subsequent election, to state members and
local miscellaneous members who are employees of school districts
that are contracting agencies, or who are included in this system
under Chapter 6 (commencing with Section 20610), who entered or enter
membership after November 4, 1959, or who were members on November
4, 1959, and elected, pursuant to rules of the board, to be subject
to this article, or who so elect within 90 days following October 1,
1961, in the manner prescribed. This article shall not apply to any
member with respect to service that is included in the federal
system.
An election pursuant to this section shall be in writing and shall
be effective only when received in the office of the board.
Contributions under this article for the member shall begin on the
first of the month or the payroll period following the filing of the
election. The board may, on the request of any member who on
November 4, 1959, elected to be subject to this article, cancel the
election if it finds that the election was made because of the member'
s mistake or misunderstanding, and that the member has acted
diligently in making the
request. The cancellation shall be effective as of the first day of
the month following the board's action canceling the election.
21577. This article shall not apply to any contracting agency nor
to the employees of any contracting agency until the agency elects
to be subject to this article by amendment to its contract made in
the manner prescribed for approval of contracts, except that an
election among the employees pursuant to Section 20469 is not
required, or, in the case of contracts made after July 20, 1959, by
express provision in the contract making the contracting agency
subject to the provisions of this article. Any public agency first
contracting with the board on and after January 1, 1994, which has
not, pursuant to Section 418 of Title 42 of the United States Code,
entered into an agreement with the federal government for the
coverage of its employees under the federal system shall be subject
to this section.
Except as provided in Section 21578, this article shall not in any
event apply to employees of a contracting agency whose services are
included in the federal system. Members who are employees of a
contracting agency when the agency becomes subject to this article
and whose services are not included in the federal system shall have
the right to elect to be subject to this article, that election to be
made in the manner, and within the time periods, specified in rules
adopted by the board. Employees of that contracting agency becoming
members thereafter shall be subject to this article without election.
21578. This article shall apply to employees of a contracting
agency whose services are included in the federal system when
employees of another contracting agency who are subject to this
article are made by lawful merger of the contracting agencies the
employees of the contracting agency. In that case, the application
of this article shall be limited to those employees to whom it
applied prior to the merger and shall terminate upon expiration of
five years following the date of the merger. This article shall apply
to such persons whether the merger occurs before or after November
13, 1968.
This article shall also apply to employees of a contracting agency
which is a nonprofit organization. The application of this article
shall be limited to those employees to whom it applied prior to
January 1, 1984, and shall terminate on December 31, 1991.
21579. Notwithstanding Sections 21576 and 21577, this article
shall apply to a state member or a local member whose employer is
subject to this article and whose services were included in the
federal system in any period after the inclusion is terminated.
21580. Notwithstanding anything to the contrary in Sections
21571, 21572, 21573, and 21574, this article shall apply to a
surviving spouse of a local member who has attained or attains the
age of 60 years and, with respect to that surviving spouse, who was
either continuously married to the member for at least one year prior
to death, or who was married to the member prior to the occurrence
of the injury or onset of the illness that resulted in death and has
not remarried subsequent to the member's death.
A contracting agency that is already subject to this article, on
and after January 1, 1993, may elect to be subject to this section by
amendment to its contract made in the manner prescribed for approval
of contracts, except that an election among the employees shall not
be required. In the case of contracts made on or after January 1,
1993, this section shall apply to members of a contracting agency
that either expressly includes this section in its contract or
subsequently elects to amend its contract to make this section
applicable to local members employed by the agency.
21581. The rate of contribution of a member subject to this
article shall include, in addition to his or her normal rate, two
dollars ($2) per month or fraction thereof, or ninety-three cents
($0.93) for each biweekly payroll period or fraction thereof, where
salaries are paid on that basis. Those contributions shall not become
a part of a member's accumulated contributions or be treated or
administered as normal contributions and shall not be refundable to a
member under any circumstances. Those contributions shall be
available only for payment of 1959 survivor allowances.
21582. Notwithstanding any other provision of this article, if so
agreed to in a memorandum of understanding reached pursuant to
Chapter 12 (commencing with Section 3560) of Division 4 of Title 1,
as it pertains to represented employees of the California State
University, the employer may pay, in addition to the employer
contributions, all or a portion of the employee contributions
required for the benefit payable pursuant to Section 21573 or the
employees may pay, in addition to the employee contributions, all or
a portion of the employer contributions required for the benefit
payable pursuant to Section 21573.
21583. Notwithstanding any other provision of law, a local member
may elect, within 90 days after the effective date of the amended
contract, to have the 1959 survivor allowance coverage under this
article.
The effective date of coverage shall be the date that the member
first became eligible for the 1959 survivor allowance. The member
shall contribute two dollars ($2) for every month from the date of
original eligibility.
This section shall not apply to any contracting agency unless and
until the agency elects to be subject to this section by amendment to
its contract made in the manner prescribed for the approval of
contracts, except that an election among the employees is not
required.
This section shall not apply to members while their services are
included in the federal system.
Article 4. Preretirement Group Term Life Insurance
21600. (a) The purpose of this article is to provide group term
life insurance benefits for members of this system who are employees
of the state or the university. Notwithstanding any other provision
of this part, this article shall not apply to a school member, or any
other local member.
(b) If this section is in conflict with the provisions of a
memorandum of understanding reached pursuant to Section 3517.5, the
memorandum of understanding shall be controlling without further
legislative action, except that if the provisions of a memorandum of
understanding require the expenditure of funds, the provisions shall
not become effective unless approved by the Legislature in the annual
Budget Act.
21601. A separate account shall be established in the retirement
fund to be known as the Insurance Benefits Account. Moneys in the
account shall be expended for the sole purpose of payment of
insurance benefits under this article. Interest shall be credited to
the account at the annual rate and in the same manner as interest is
credited to employer and employee contributions in the retirement
fund.
21602. (a) The board shall transfer annually on July 1 during any
period of insurance from accumulated state contributions on account
of current service to the Insurance Benefits Account the amount
estimated to be necessary for payment during that fiscal year, of the
portion of the insurance benefit prescribed in subdivision (b) of
Section 21605 plus any deficiency in the transfer for the previous
fiscal year for that purpose.
(b) If this section is in conflict with the provisions of a
memorandum of understanding reached pursuant to Section 3517.5, the
memorandum of understanding shall be controlling without further
legislative action, except that if the provisions of a memorandum of
understanding require the expenditure of funds, the provisions shall
not become effective unless approved by the Legislature in the annual
Budget Act.
21603. An insured member, for purposes of this part, is a member
of this system who is a state or university employee and whose death
occurs under conditions specified in Section 21604.
21604. The insurance benefit shall be paid upon death of an
insured member of this system to the beneficiary entitled to receive
the basic or special death benefit if all of the following conditions
occur:
(a) Death occurs during any of the following:
(1) While in state service.
(2) While absent from state service on military service or on
approved leave of absence.
(3) Within four months of discontinuance of state service.
(4) While physically or mentally incapacitated for performance of
duty continuously from discontinuance of state service.
(b) If either of the following exists:
(1) Death occurs while a member and before the effective date of
retirement.
(2) If an optional settlement 2 or 3 or an optional settlement 4
involving payment of an allowance throughout the life of the
beneficiary has not been elected and if an allowance under Section
21624, 21627, 21629, or 21630 is not payable, and death occurs on or
after the effective date of retirement and before the mailing of a
retirement allowance warrant.
(c) Death occurs during a period of insurance.
(d) Death occurs under circumstances other than those described in
subparagraph (F) of paragraph 1 of subdivision (a) of Section 21530.
If this section is in conflict with the provisions of a memorandum
of understanding reached pursuant to Section 3517.5, the memorandum
of understanding shall be controlling without further legislative
action, except that, if the provisions of a memorandum of
understanding require the expenditure of funds, the provisions shall
not become effective unless approved by the Legislature in the annual
Budget Act.
21605. The insurance benefit shall be the sum of the following
amounts:
(a) Five thousand dollars ($5,000).
(b) An amount equal to 50 percent of the annual compensation
earnable by the deceased member during the 12 months immediately
preceding his or her death or the compensation earnable by the member
at the time of becoming eligible for benefits pursuant to Section
21160 if higher, or if a member also has state service in an
employment in which employees are ineligible to be insured members, a
proportionate part of that amount in the ratio of eligible service
to total service. No amount shall be paid under this subdivision if
the member is eligible for service retirement or the member is
subject to benefits pursuant to Section 21547.
If this section is in conflict with the provisions of a memorandum
of understanding reached pursuant to Section 3517.5, the memorandum
of understanding shall be controlling without further legislative
action, except that if the provisions of a memorandum of
understanding require the expenditure of funds, the provisions shall
not become effective unless approved by the Legislature in the annual
Budget Act.
21606. The effective period of insurance shall be extended by the
board annually to the succeeding fiscal year unless an order of the
Governor promulgated prior to January 1 of the preceding fiscal year
directs that the extension not be made.
Article 5. Postretirement Death Benefits
21620. Upon the death of any person, after retirement and while
receiving a retirement allowance from this system, there shall be
paid to his or her estate or to the beneficiary as he or she shall
nominate by written designation duly executed and filed with the
board, the sum of five hundred dollars ($500), to be provided from
contributions by the state or contracting agency, as the case may be.
On and after December 1, 1969, this section shall apply to all
contracting agencies and to the employees of those agencies whether
or not those agencies have previously elected to be subject to this
section.
21621. If the estate or designated beneficiary of a member
retired under this system is entitled to receive a comparable
lump-sum death benefit from any other retirement system supported, in
whole or in part, by public funds in which he or she was a member in
employment subsequent to his or her last employment in which he or
she was a member of this system, no payment shall be made under
Section 21620, 21622, or 21623 providing for payment of a lump-sum
death benefit to a member's estate or designated beneficiary.
21622. In lieu of benefits provided by Section 21620, upon the
death of any person, after retirement and while receiving a
retirement allowance from this system, there shall be paid to his or
her estate, or to the beneficiary who he or she shall nominate by
written designation duly executed and filed with the board, the sum
of six hundred dollars ($600), to be provided from contributions by
the state.
For the purposes of this section, all contributions, liabilities,
actuarial interest rates, and other valuation factors shall be
determined on the basis of actuarial assumptions and methods that, in
the aggregate, are reasonable and that, in combination, offer the
actuary's best estimate of anticipated experience under this system.
The additional employer contributions required under this section
shall be computed as a level percentage of member compensation. The
additional contribution rate required at the time this section is
added to a contract shall not be less than the sum of (1) the
actuarial normal cost and, (2) the additional contribution required
to amortize the increase in accrued liability attributable to
benefits elected under this section over a period of not more than 30
years from the date this section becomes effective in the public
agency's contract.
This section shall apply to members employed by a school employer.
This section shall not apply to any contracting agency, except for
those contracting agencies that are school employers and those
school districts or community college districts, as defined in
subdivision (i) of Section 20057, until the agency elects to be
subject to this section by amendment to its contract made in the
manner prescribed for approval of contracts, except an election among
the employees is not required, or, in the case of contracts made
after January 1, 1981, by express provision in the contract making
the contracting agency subject to this section.
21623. In lieu of benefits provided by Section 21620 or 21622,
upon the death of any retired state member, after retirement and
while receiving a retirement allowance from this system, there shall
be paid to his or her estate, or to the beneficiary who he or she
shall nominate by written designation duly executed and filed with
the board, the sum of two thousand dollars ($2,000), to be provided
from contributions by the employer.
For the purposes of this section, all contributions, liabilities,
actuarial interest rates, and other valuation factors shall be
determined on the basis of actuarial assumptions and methods which,
in the aggregate, are reasonable and which, in combination, offer the
actuary's best estimate of anticipated experience under this system.
The additional employer contributions required under this section
shall be computed as a level percentage of member compensation.
This section shall not apply to any school employer, school
member, contracting agency, or local member.
21624. Upon the death of a patrol, state peace
officer/firefighter, or state safety member whose retirement for
service or disability is effective on or after April 1, 1973, a
monthly allowance derived from employer contributions equal to a
percentage of the amount of his or her retirement allowance as it was
at his or her death based on service credited to him or her as a
member subject to this section, but excluding any portion of the
retirement allowance derived from additional contributions of the
member, shall be paid to the surviving spouse throughout life or
until remarriage. The percentage shall be 25 percent for an allowance
based on service for which the allowance is reduced because the
service was also covered under the federal system and 50 percent for
an allowance based on any other service. If there is no surviving
spouse, or upon the death or remarriage of the surviving spouse, the
allowance shall be paid collectively to every unmarried child of the
deceased member who has not attained age 18, or who is disabled by a
condition that disabled that child prior to attaining age 18 and that
has continued without interruption after age 18, until the
disability ceases. If, at the time of the retired member's death,
there is no eligible surviving spouse or children, the allowance
shall be paid to a parent, or collectively to parents, of the
deceased member dependent upon him or her for support. If, on the
effective date of his or her retirement, the member has no surviving
spouse, eligible children, or dependent parents and elected an
optional settlement, no allowance under this section shall be paid.
"Surviving spouse," for purposes of service retirements subject to
this section, means a husband or wife who was married to the member
for a continuous period beginning at least one year prior to his or
her retirement and ending on the date of his or her death and, for
purposes of disability retirements subject to this section, means a
husband or wife who was married to the member on the date of his or
her retirement and continuously to the date of his or her death.
21625. Notwithstanding any other provision of this part, upon the
member's election to be subject to Section 21460, the benefits
provided by Section 21624, 21626, 21627, 21628, 21629, or 21630, as
applicable, shall be payable only to the member's eligible surviving
spouse and for his or her lifetime. The benefit shall not cease upon
the remarriage of the surviving spouse.
21626. "Member" for purposes of Section 21624 also includes those
local miscellaneous members and local safety members who on March
31, 1973 were subject to former Sections 21264, as amended by Chapter
249 of the Statutes of 1971 and 21264.1, as added by Chapter 150 of
the Statutes of 1971, as those sections read prior to their repeal on
April 1, 1973. "Member" shall not include any other local
miscellaneous or local safety member or apply to any contracting
agency employing the member until the agency elects to be subject to
Section 21624 by amendment to its contract made in the manner
prescribed for approval of contracts, except that an election among
employees shall not be required or, in the case of contracts made on
or after April 1, 1973, by express provision of the contract. The
election may be exercised separately with respect to local safety
members who are firefighters, local safety members who are police
officers, local safety members other than police officers or
firefighters, and local miscellaneous members. The operative date of
Section 21624 for purposes of application to that section to those
local members shall be the effective date of the contract or contract
amendment.
"Surviving spouse" shall mean, for a member subject to Section
21624, who retires for disability retirement on or after January 1,
1995, a husband or wife who was married to the member on the date of
his or her retirement and continuously to the date of his or her
death.
21627. (a) An eligible survivor of a state safety member who
retired prior to April 1, 1973, and died prior to September 28, 1987,
shall receive a monthly survivor's allowance, derived solely from
employer contributions and not from any contributions from the
member, equal to 50 percent of the amount of the member's retirement
allowance payable to the member at the time of his or her death. The
member's monthly allowance shall have been based on his or her
credited service. An eligible survivor of a state safety member who
retired prior to April 1, 1973, and died on or after September 28,
1987, shall receive a monthly survivor's allowance determined
pursuant to Section 21624.
(b) The benefit provided by this section shall not be offset by
any entitlement of the survivor under the federal system.
(c) The benefit is payable to the surviving spouse for life.
(d) If there is no surviving spouse of the retired member, or upon
the death of a surviving spouse, the benefit authorized by this
section shall be paid to an eligible child or to eligible children.
(e) If, at the time of the death of the retired member there is no
surviving spouse or eligible child or children, the benefit
authorized by this section shall be paid to the parent or parents of
the deceased member who were dependent upon the member for support.
(f) If, at the effective date of his or her retirement, the member
was unmarried, or if, at the time of his or her death, the member
had no eligible child or children, had no dependent parent or
parents, and had elected an optional settlement, no survivor's
allowance authorized by this section shall vest in or be paid to any
individual.
(g) "Surviving spouse," for purposes of this section, means a
husband or wife who was married to the member for a period of time
beginning one year or more prior to his or her retirement and
continuing without interruption until the death of the member.
(h) "Eligible child," for purposes of this section, means an
unmarried child of the deceased member who (1) has not attained age
18, or (2) is over age 18 but disabled due to a condition that
existed and disabled the child prior to his or her 18th birthday and
that has continuously disabled the person after having reached age
18. Eligibility of the child for the benefits of this section shall
terminate upon the earlier of the following:
(1) Attainment of age 18, unless the disability exemption applies.
(2) Marriage of the child prior to age 18.
(3) Cessation of a child's disability.
(4) Death of a child.
(i) The allowance paid pursuant to this section shall be adjusted
to reflect a one-half continuance allowance with no offset by reason
of participation in the federal system. The adjustment provided by
this section shall be applied to any survivor receiving a continuance
allowance on September 28, 1987. Nothing in this section was or is
intended to, or shall be construed to, impair any vested rights of
any eligible survivor of a state safety member who retired prior to
April 1, 1973, and who died on or after September 28, 1987.
21628. The allowance provided by Section 21624 shall be paid with
respect to a local miscellaneous or local safety member whose
retirement was effective prior to his or her employer's election to
be subject to the section with respect to employees in his or her
employment, if at retirement he or she did not elect optional
settlement 2 or 3 or an optional settlement involving life
contingency under optional settlement 4. The retirement allowance
payable to a retired member who elected any of these optional
settlements, or to a beneficiary of a retired member, shall be
increased by 15 percent, for time on and after the operative date and
prior to the next annual adjustment under Article 3 (commencing with
Section 21310 ) of
Chapter 13 and the base allowance shall be increased by 15 percent
for purpose of that and all subsequent annual adjustments. The
amount payable to the beneficiary under the optional settlement shall
be increased by the same percentage and in the same manner as the
increase provided for the payment to the member.
The increased allowance provided by this section shall not be
payable to a beneficiary who is receiving an allowance pursuant to
this article or Article 4 (commencing with Section 21350) of Chapter
13 on September 29, 1980, until the employer of the retired member
elects to be subject to this section as so amended by amendment to
its contract made in the manner prescribed for approval of contracts,
except that an election among employees shall not be required. In
the case of contracts made on or after September 29, 1980, the
operative date of Section 21624, for purposes of application of that
section to local members, shall be the effective date of the contract
or contract amendment.
21629. Upon the death, after the effective date of retirement, of
a state miscellaneous member none of whose service rendered in state
employment has been included in the federal system and whose
retirement is effective on or after July 1, 1974, or of a school
member or school safety member none of whose service rendered in
school service or school safety service has been included in the
federal system and whose retirement is effective on or after July 1,
1983, a monthly allowance derived from employer contributions equal
to 50 percent of the amount of his or her retirement allowance as it
was at his or her death and based on service credited to him or her
as a member subject to this section but excluding any portion of the
retirement allowance derived from additional contributions of the
member shall be paid to the surviving spouse throughout life or until
remarriage. If there is no surviving spouse, or upon the death or
remarriage of the surviving spouse, the allowance shall be paid
collectively to every unmarried child of the deceased member who has
not attained age 18, or who is disabled by a condition which disabled
that child prior to attaining age 18 and which has continued without
interruption after age 18, until the disability ceases. If at the
time of the retired member's death there is no eligible surviving
spouse or children, the allowance shall be paid to a parent, or
collectively to parents, of the deceased member dependent upon him or
her for support. If on the effective date of retirement there is a
person who will be eligible if the person survives, the member's
election of an optional settlement other than optional settlement 1
shall apply only to a portion of his or her allowance as provided in
Section 21451 with respect to allowances under Section 21624. If on
the effective date of his or her retirement the member has no
surviving spouse, eligible children, or dependent parents and elected
an optional settlement, no allowance under this section shall be
paid.
"Surviving spouse," for purposes of service retirement subject to
this section, means a husband or wife who was married to the member
for a continuous period beginning at least one year prior to his or
her retirement and ending on the date of his or her death and, for
purposes of disability retirement subject to this section where the
member retired on or after January 1, 1995, means a husband or wife
who was married to the member on the date of his or her retirement
and continuously to the date of his or her death.
21630. Upon death after the effective date of retirement of a
state miscellaneous member some of whose service rendered in state
employment has been included in the federal system and whose
retirement is effective on or after July 1, 1975, or of a school
member or school safety member some of whose service rendered in
school employment has been included in the federal system and whose
retirement is effective on or after July 1, 1983, a monthly
allowance, derived from employer contributions, equal to a percentage
of the amount of his or her retirement allowance as it was at his or
her death based on service credited to him or her as a member
subject to this section but excluding any portion of the retirement
allowance derived from additional contributions of the member shall
be paid to the surviving spouse throughout life or until remarriage.
The percentage shall be 25 percent for an allowance based on service
that was also covered under the federal system and 50 percent for an
allowance based on any other service, except that the percentage
shall be 50 percent for the allowance of a member whose service was
subject to Section 21076 or 21077 and who had become a member prior
to November 1, 1988. If there is no surviving spouse, or upon the
death or remarriage of the surviving spouse, the allowance shall be
paid collectively to every unmarried child of the deceased member who
has not attained age 18, or who is disabled by a condition that
disabled that child prior to attaining age 18 and that has continued
without interruption after age 18, until the disability ceases. If
at the time of the retired member's death there is no eligible
surviving spouse or children, the allowance shall be paid to a
parent, or collectively to parents, of the deceased member dependent
upon him or her for support. If on the effective date of retirement
there is a person who will be eligible if the person survives, the
member's election of an optional settlement, other than optional
settlement 1, shall apply only to a portion of the allowance as
provided in Section 21451 with respect to allowances under Section
21624. If on the effective date of his or her retirement the member
has no surviving spouse, eligible children, or dependent parents and
elected an optional settlement, no allowance under this section shall
be paid.
"Surviving spouse," for purposes of service retirement subject to
this section, means a husband or wife who was married to the member
for a continuous period beginning at least one year prior to his or
her retirement and ending on the date of his or her death and, for
purposes of disability retirement subject to this section where the
member retired on or after January 1, 1995, means a husband or wife
who was married to the member on the date of his or her retirement
and continuously to the date of his or her death.
21631. (a) The monthly allowance provided by Sections 21629 and
21630 shall be paid on account of retired school members who did not
at retirement elect optional settlement 2 or 3 or an optional
settlement involving life contingency under optional settlement 4.
(b) Upon receipt of a written application for benefits at the
office of the board, the benefits provided by this section shall be
payable to eligible survivors of retired school members who are not
receiving a monthly allowance on account of miscellaneous service as
a state member.
(c) When there are no records in the board's possession that
contain necessary data for determining the retirement benefit
claimed, the applicant or applicants for the benefit shall be
required to establish entitlement to the benefit upon evidence
satisfactory to the board. That data, at a minimum, shall be
sufficient to establish the date of the retired member's death and
the amount of the retired member's monthly allowance payable at the
time of his or her death. The net benefit payable to the retired
school member at the date of death may be determined by the board on
the basis of the evidence submitted or upon other evidence if that
evidence allows the board to determine the unmodified allowance
payable on the date of death. The board shall use available
evidence, whether from information provided by the applicant, partial
records in possession of the board, or from other sources, as the
basis for assumptions that are necessary in order to calculate the
allowance payable to the eligible survivor or survivors.
(d) The benefits provided by this section shall be subject to the
same eligibility and termination provisions that apply to members at
their retirement and shall be paid commencing on the first day of the
month succeeding the month in which the application for the benefits
of this section is received by the board.
(e) The board has no duty to identify, locate, or notify any
survivor of a retired school member who may potentially be eligible
for the benefits of this section. The board has no duty to provide
the name or address of any potential survivor to any person, agency,
or entity for the purpose of notifying survivors who may potentially
be eligible for the benefits of this section.
(f) The cost of the additional benefits provided pursuant to the
trial court decision in California State Employees Association, et
al. v. Board of Administration of the Public Employees' Retirement
System et al. (Sacramento County Superior Court, Case No. 332315)
shall be paid out of the reserve against deficiencies established by
Section 20174.
21632. (a) The monthly allowances provided by Sections 21629 and
21630 shall be paid on account of retired state miscellaneous members
who did not at retirement elect optional settlement 2 or 3 or an
optional settlement involving life contingency under optional
settlement 4 and whose retirement dates were effective before July 1,
1974, with respect to members who were not covered by the federal
system, and before July 1, 1975, with respect to members who were
covered under the federal system. Upon receipt of a written
application by the board, the benefits provided by this section shall
be payable to eligible survivors of retired members who are not
receiving a monthly allowance on account of miscellaneous service as
a state member. However, if, on the date the application is received
by the board, there is no longer in existence a record in the board's
possession setting forth the retirement data relating to the retired
member, the applicant survivor or survivors of the retired member
shall be required, as a condition precedent to his or her entitlement
to the benefit provided by this section, to furnish documentary
evidence satisfactory to the board to enable it to determine the date
of the retired member's death and the amount of the member's
allowance that was currently payable at the time of death. The net
benefit payable to the retired member at the time of death shall be
determined on the basis of the evidence submitted, unless the board
is able to determine the unmodified allowance payable at the time of
death. If the allowance payable to an eligible survivor is based on
evidence furnished by the survivor or partial member records in the
board's possession, or both, the board shall use that information to
assume any additional factors required to calculate the allowance
payable. The benefits shall be subject to the same eligibility and
termination provisions that apply to members at retirement and shall,
subject to subdivision (b), be paid only for the period of time
commencing on the first of the month following receipt by the board
of the application for the benefits. The board has no duty to locate
or notify any potential survivor or to provide the name or address
of any potential survivor to any person, agency, or entity for the
purpose of notifying survivors.
(b) Upon receipt of a written application pursuant to subdivision
(a), the benefits provided by this section shall be paid both
prospectively and retroactively for the period of time commencing
with the first day of the month following receipt of the application.
(c) The payment of benefits pursuant to this section, as amended
by Chapter 788 of the Statutes of 1984, shall commence no sooner than
January 1, 1985.
21633. The monthly allowance provided by Section 21624 shall be
paid on account of patrol and state safety members retired for
nonindustrial disability with effective dates of retirement prior to
April 1, 1972, and who did not at retirement elect optional
settlement 2 or 3 or an optional settlement involving life
contingency under optional settlement 4. Upon receipt of a written
application by the board, the benefits provided by this section shall
also be payable to eligible survivors of retired members who are not
receiving a monthly allowance on account of service as a patrol or
state safety member if the retired member was alive and receiving a
monthly allowance on June 30, 1974. The benefits shall be subject to
the same eligibility and termination provisions that apply to
members at retirement and shall be paid only for the period of time
commencing on the first of the month following receipt by the board
of the application for those benefits.
21634. Any provision of this article or Article 4 (commencing
with Section 21350) of Chapter 13 imposing as a condition for payment
of an allowance to a surviving spouse that he or she have been
married to the member for at least one year prior to retirement shall
be deemed satisfied if the member was required to retire because of
attainment of mandatory retirement age within one year following an
amendment to the retirement law or the contracting agency's contract
lowering the mandatory retirement age for his or her category of
membership, and the surviving spouse was married to the member on the
date of the amendment.
21635. Notwithstanding any other provisions of this part,
survivor continuance allowances payable to surviving spouses upon
death after retirement of a member shall not cease upon remarriage if
the remarriage occurs on or after January 1, 1985. However,
pursuant to Section 22811.5, the surviving spouse may not add the new
spouse or stepchildren as family members under the continued health
benefits coverage of the surviving spouse.
This section shall not apply to any contracting agency, other than
those contracting agencies that are school districts or community
college districts, as defined in subdivision (i) of Section 20057,
until the agency elects to be subject to this section by amendment to
its contract made in the manner prescribed for approval of contracts
or, in the case of contracts made after January 1, 1985, by express
provision in the contract making the contracting agency subject to
this section and, in that case, this section shall only apply to a
surviving spouse of a local member employed by the contracting agency
whose remarriage occurred on or after the date the contracting
agency elects to be subject to this section.
The employer is not required by this section to meet and confer
with an employee organization regarding the subject matter of this
section, and the subject matter shall not be included within the
scope of representation pursuant to Section 3504.
CHAPTER 15. LONG-TERM CARE
21660. This chapter may be cited as the Public Employees'
Long-Term Care Act.
21661. (a) The board shall contract with carriers offering
long-term care insurance plans and enter into health care service
plan contracts covering long-term care.
The long-term care insurance plans and health care service plan
contracts covering long-term care shall be made available on or
before January 1, 1992, and periodically thereafter during open
enrollment periods determined by the board.
(b) The board shall award contracts to carriers who are qualified
to provide long-term care benefits, and may develop and administer
self-funded long-term care insurance plans. The board may offer one
or more long-term care insurance plans or health care service plan
contracts covering long-term care and may offer service or
indemnity-type plans.
(c) The long-term care insurance plans and health care service
plan contracts covering long-term care shall include home, community,
and institutional care and shall, to the extent determined by the
board, provide substantially equivalent coverage to that required
under Chapter 2.6 (commencing with Section 10230) of Part 2 of
Division 2 of the Insurance Code, if the carrier has been approved by
the Department of Corporations pursuant to Chapter 2.2 (commencing
with Section 1340) of Division 2 of the Health and Safety Code.
(d) Active and retired members and annuitants of this system,
their spouses and parents, and active and retired members and
annuitants of any county or district subject to the County Employees
Retirement Law of 1937, their spouses, and their parents, and members
and retirants of the State Teachers' Retirement System, their
spouses, and their parents, shall be eligible to enroll provided they
meet the eligibility and underwriting criteria established by the
board, except that enrollment of state employees shall be subject to
Section 19867.
(e) The board shall establish eligibility criteria for enrollment,
establish appropriate underwriting criteria for potential enrollees,
define the scope of covered benefits, define the criteria to receive
benefits, and set any other standards as needed.
(f) The full cost of enrollment in a long-term care insurance plan
or in health care service plan contracts covering long-term care
shall be paid by the enrollees.
(g) The long-term care insurance plans and health care service
plan contracts covering long-term care shall not become part of, or
subject to, the retirement or health benefits programs administered
by this system.
(h) For any self-funded long-term care plan developed by the
board, the premiums shall be deposited in the Public Employees'
Long-term Care Fund.
21662. The board shall consult with employer and employee
representatives of the state and local government entities for whom
the board administers retirement benefits. The board and each
employer is authorized to recover the administrative costs of the
long-term care insurance program from insurance carriers and premiums
paid by enrollees. Costs recovered by the board from insurance
carriers and premiums paid by enrollees shall be deposited in the
Public Employees' Long-term Care Fund. Prior to implementation of
the proposed long-term care insurance plans, the board shall submit a
report on those plans to the Legislature.
21663. (a) The board may enter into contracts with long-term care
insurance carriers and health care service plans covering long-term
care, pursuant to Section 21661, and with entities offering services
relating to the administration of long-term care plans, without
compliance with any provisions of law relating to competitive
bidding.
(b) The board may fix the beginning and ending dates of the
contracts in a manner it deems consistent with administration of this
part. The board shall periodically review each contract according
to a reasonable schedule mutually agreed upon by the parties.
Irrespective of any agreed-upon termination date or period for
review, the board may terminate a contract at any time under
conditions determined by the board, and may automatically renew a
contract from term to term, or for any lesser period it deems
appropriate.
(c) The Department of General Services shall review and approve
all contracts entered into pursuant to this section, to ensure that
each written instrument contains the principal necessary provisions
and proper technical terms and phrases, is formally correct, is
arranged in proper and methodical order, and is adapted to the
specific requirements of the agreement between the parties. The
department's review and approval does not supersede the board's
authority to negotiate and reach agreement with long-term care
insurance carriers and health care service plans covering long-term
care, or with entities offering services relating to the
administration of long-term care plans, with respect to the rates,
terms, and conditions of contracts entered into pursuant to this
section.
21664. (a) The Public Employees' Long-term Care Fund is
established for the purpose of administering any self-funded
long-term care plan developed by the board and for recovering the
administrative costs of the long-term care program from insurance
carriers and premiums paid by enrollees. Notwithstanding Section
13340, the Public Employees' Long-term Care Fund is continuously
appropriated, without regard to fiscal years, to the board to carry
out the purposes of this article, consistent with its fiduciary duty.
Funding for the board's administrative costs is subject to
appropriation by the Legislature and shall be paid out of the Public
Employees' Long-term Care Fund.
(b) The board may set the premiums for any self-funded long-term
care plan and assess charges against carriers and the premiums of
enrollees to recover the administrative costs of the long-term care
program.
(c) The board shall have the exclusive control of the
administration and investment of the Public Employees' Long-term Care
Fund. The board may invest funds in the Public Employees' Long-term
Care Fund pursuant to the law governing its investment of the
retirement fund. The board may authorize its investment staff, or
may contract with independent investment managers, to manage the
investments of the Public Employees' Long-term Care Fund.
(d) Income, of whatever nature, earned on the Public Employees'
Long-term Care Fund during any fiscal year, shall be credited to the
fund.
(e) The Legislature finds and declares that the Public Employees'
Long-term Care Fund is a trust fund held for the exclusive benefit of
enrollees in the long-term care plans offered pursuant to this
article.
(f) It is the intent of the Legislature to provide, in the future,
appropriate resources to properly administer the long-term care
program.
CHAPTER 16. DEFERRED COMPENSATION
21670. The board may establish a deferred compensation program
for the members of this system. The program shall be made available
to all employees of an employer under procedures established by the
board unless participation is subject to the terms of any memorandums
of understanding between the employer and the employees.
21671. The deferred compensation program may grant the maximum
tax-deferred savings available under current federal law, and may
provide for employer as well as employee contributions. The program
may include, but is not limited to, one or more of the following
plans:
(a) A deferred compensation plan qualified under Section 457 of
Title 26 of the United States Code.
(b) A tax-sheltered annuity qualified under Section 403(b) of
Title 26 of the United States Code. Section 770.3 of the Insurance
Code shall not apply to the board for the purposes of contracting for
those annuities.
(c) Any other form of deferred compensation arrangement authorized
by the provisions of Title 26 of the United States Code and approved
by the board.
21672. The deferred compensation program may include any or all
of the following components:
(a) Investment fund options for state members, as part of the
deferred compensation program administered for state employees by the
Department of Personnel Administration.
(b) Investment fund options for local
members and school members.
(c) Annuity contracts on behalf of all members.
21673. (a) The investment fund options under subdivision (b) of
Section 21672 may include, but not be limited to, any or all of the
following:
(1) Mortgage-backed securities funds, including securities backed
by California residential real estate mortgages.
(2) Equity funds.
(3) Balanced funds.
(4) Corporate bond funds.
(5) Government bond funds.
(6) Stable principal funds, including certificates of deposit and
money market accounts.
(7) Guaranteed investment contracts.
(b) The board shall research any one or combination of investment
options for offer to members, including the feasibility of creating
an option for investment in the program established under Section
20200.
(c) The board, on or before July 1, 1993, shall submit a report to
the Legislature, on its findings and recommendations.
21674. (a) Investment fund options under subdivision (a) of
Section 21672 shall be provided through a written interagency
agreement between the board and the Department of Personnel
Administration that shall be binding on both parties for a minimum
term of 36 months.
(b) Participating employers shall enter into a written contractual
agreement with the board that shall be binding for a minimum term of
36 months.
(c) Employees participating under the deferred compensation
program shall enter into written salary reduction agreements with
their employers, for the purpose of making deferrals or for annuity
contracts.
21675. All development and administration costs of the deferred
compensation program shall be paid by employers and participating
members.
21676. The Public Employees' Deferred Compensation Fund is hereby
established. Notwithstanding any other provision of law, the board
may retain a bank or trust company to serve as repository of the
fund. The board may also retain a bank or trust company to serve as
a custodian for safekeeping, recordkeeping, delivery, securities
valuation, investment performance reporting, or other services in
connection with investment of the fund. Notwithstanding Section
13340, all moneys in the fund are continuously appropriated, without
regard to fiscal years, to the board to carry out the purposes of
this article.
21677. The Public Employees' Deferred Compensation Fund shall
consist of the following sources and receipts and disbursements shall
be accounted for as set forth below:
(a) Premiums determined by the board and paid by employers and
members for the cost of administering the deferred compensation
program.
(b) Asset management fees as determined by the board assessed
against investment earnings of investment options or other
investments funds provided by the board to either the state or other
public employers. Asset management fees shall be disclosed to plan
participants.
(c) Deferrals or contributions to be paid monthly by participating
employers or members for investment by the board pursuant to this
article. The moneys shall be deposited in the investment corpus
account within the Public Employees' Deferred Compensation Fund, and
invested in accordance with the fund option or fund selected by the
members.
(d) Disbursements to participating members shall be paid from a
disbursement account within the Public Employees' Deferred
Compensation Fund, in accordance with current federal law pertaining
to tax-deferred savings plans.
(e) The board shall offer a savings account equivalent plan among
those deferred compensation accounts made payable to plan
participants.
(f) Income, of whatever nature, earned on the Public Employees'
Deferred Compensation Fund shall be credited to the appropriate
account. Member accounts shall be individually posted to reflect net
asset value for each fund in which the member participates.
(g) The board has the exclusive control of the administration and
investment of the Public Employees' Deferred Compensation Fund.
21678. The board, if authorized by another statute, may make
expenditures from the asset management and services account in the
Public Employees' Deferred Compensation Fund to conduct studies of
other retirement-related benefits for the participants in this
system, expend moneys to start up new retirement-related benefit
programs for participants, to fund positions, or compensate
employees.
21679. The officers and employees of this system shall discharge
their duties with respect to the deferred compensation plan solely in
the interest of the members participating in the plan in the
following manner:
(a) For the exclusive purpose of providing deferred compensation
to members and defraying reasonable expenses of administering the
plan.
(b) In the selection of investment options with the care, skill,
prudence, and diligence under the circumstances then prevailing that
a prudent person acting in a like capacity and familiar with those
matters would use in the conduct of an enterprise of a like character
and with like aims.
(c) By diversifying the investment options available to
participants of the plan so as to minimize the risk of large losses
and by using reasonable diligence to accurately inform all employees
and participants as to all plan options.
(d) In accordance with the documents and instruments governing the
plan insofar as those documents and instruments are consistent with
this article.
21680. Except as otherwise provided by law, the officers and
employees of this system shall not engage in a transaction with
regard to a deferred compensation plan if they know or should know
that the transaction constitutes, directly or indirectly, any of the
following:
(a) The sale, exchange, or leasing of any property from the plan
to a participant in the plan for less than adequate consideration, or
from a participant in the plan to the plan for more than adequate
consideration.
(b) The lending of money or other extension of credit from the
plan to a participant in the plan without the receipt of adequate
security and a reasonable rate of interest, or from a participant in
the plan to the plan with the provision of excessive security or an
unreasonably high rate of interest.
(c) The furnishing of goods, services, or facilities from the plan
to a participant in the plan for less than adequate consideration,
or from a participant in the plan to the plan for more than adequate
consideration.
(d) The transfer to, or use by or for the benefit of, a
participant in the plan of any assets of the plan for less than
adequate consideration.
21681. The officers and employees of this system shall not do any
of the following:
(a) Deal with the assets of the plan in their own interest or for
their own account.
(b) In their individual or in any other capacity, act in any
transaction involving the plan on behalf of a party, or represent a
party, whose interests are adverse to the interests of the plan or
the interests of the participants in the plan.
(c) Receive any consideration for their personal account, or any
gift, from any party dealing with the plan in connection with a
transaction involving the assets of the plan.
21682. This chapter shall not be construed to prohibit officers
and employees of this system from participating in the deferred
compensation plan, on the same terms as other state employees or
participants.
21683. This system may require an investment manager or
recordkeeper contracted with, or appointed by, this system be subject
to the duties set forth in Section 21679.
21684. Nothing in this article is intended to lessen the scope of
personal liability of the officers and employees of this system as
it pertains to acts or conduct of a criminal nature or acts or
conduct constituting gross negligence.
CHAPTER 17. COMPLEMENTARY HEALTH PREMIUM PROGRAM FOR RETIRED
MEMBERS
21690. As used in this part, "complementary health premium" means
the additional premium paid by retired members whose health
insurance premiums are paid under Section 21264 and whose allowances
fall below the premium required to continue the health benefits plan
coverage provided by their employers.
21691. (a) Any retired member whose health insurance premium is
paid under Section 21264 and whose allowance is not sufficient to pay
his or her contributions for the health benefits plan coverage
provided by his or her employer may continue that coverage by paying
to the board the balance of the premium owed plus the related
administrative costs, as determined by the board.
(b) The retired member shall pay the complementary health premium
by remitting to the board quarterly payments in advance.
(c) The board has no duty to identify, locate, or notify any
retired member who may be eligible for programs established by this
chapter.
(d) All moneys received pursuant to this chapter shall be
deposited in the Public Employees' Contingency Reserve Fund
established by Section 22840.
21692. (a) Due to the required administrative services necessary
for the implementation of this chapter, permanent staff positions
shall be sought through the normal budgetary process.
(b) The board shall charge each participating retired member who
elects to pay the complementary health premium a one-time setup
charge and a monthly maintenance charge, in amounts sufficient to
ensure the ongoing support of the program.
(c) All development and administrative costs of the program shall
be paid by the participating retired members.
SEC. 3. Part 3.4 (commencing with Section 21750) of Division 5 of
Title 2 of the Government Code is repealed.
SEC. 4. Part 3.4 (commencing with Section 21750) of Division 5 of
Title 2 is added to the Government Code, to read:
PART 3.4. INTERNAL REVENUE CODE COMPLIANCE AND REPLACEMENT
BENEFIT PROGRAM
21750. The purpose of this part is to ensure the federal
tax-exempt status of the Public Employees' Retirement System, and any
other retirement system hereunder administered, to preserve the
deferred treatment of federal income tax on public employer
contributions to public employee pensions, and to ensure that members
are provided with retirement and other related benefits that are
commensurate, to the extent deemed reasonable, with the actuarial
value of the benefits that would have been received but for the
limitations imposed by Section 415 of Title 26 of the United States
Code.
To achieve this purpose, this part incorporates certain pension
payment limitations and elects the "grandfather" option in Section
415(b)(10) of Title 26 of the United States Code. Also, this part
contains certain payment provisions and replacement benefits.
21751. The definitions in Part 3 (commencing with Section 20000)
shall apply to this part. The following definition shall also govern
the interpretation of this part:
"Participating agency" means any public agency which meets the
criteria for becoming a contracting agency in the this system
pursuant to Chapter 5 (commencing with Section 20460) of Part 3, but
that has not elected to participate in this system as a contracting
agency, and that elects to contract with the board to participate in
the replacement benefit program administered pursuant to this part by
the board.
21752. (a) (1) In accordance with Section 21756, a member's
annual retirement benefits, adjusted to the actuarial equivalent of a
straight-life annuity if payable in a form other than a
straight-life annuity or a qualified joint and survivor annuity as
provided under Section 21460, and determined without regard to any
employee contributions or rollover contributions, as defined in
Sections 402(a)(5), 403(a)(4), and 408(d)(3)) of Title 26 of the
United States Code, otherwise payable to the member under Part 3
(commencing with Section 20000) and under any other defined benefit
plan maintained by the employer that is subject to Section 415 of
Title 26 of the United States Code, shall not exceed, in the
aggregate, the lesser of:
(A) The dollar limit applicable pursuant to Section 415(b)(1)(A)
of Title 26 of the United States Code; as appropriately modified by
Section 415(b)(2)(F) and (G) of Title 26 the United States Code.
(B) One hundred percent of the member's average compensation
(within the meaning of Treasury Regulation Section 1.451-2(d)) for
the three consecutive years of service which produces the highest
aggregate amount.
(2) However, the annual retirement benefit payable to a member
shall be deemed not to exceed the limitations prescribed in
subparagraphs (A) and (B) of paragraph (1) if the benefit does not
exceed ten thousand dollars ($10,000) and the member has at no time
participated in a tax qualified defined contribution plan maintained
by the employer.
(b) These limitations shall be applied pursuant to Section 415(b)
(10) of the Title 26 of the United States Code.
(c) Part 3 (commencing with Section 20000) shall be construed as
if it included this section.
21753. Notwithstanding any other provision of law, the retirement
allowance of a member shall be increased to reflect cost-of-living
adjustments to the limits contained in Section 415 of Title 26 of the
United States Code as provided in Section 415(d) of that code,
provided that the member's allowance determined without regard to
Section 415 equals or exceeds the applicable limit as indexed.
Nothing in this section is intended to, nor shall be construed to,
entitle a retired member to a cost-of-living adjustment to his or her
allowance in excess of that provided pursuant to Part 3 (commencing
with Section 20000).
21754. In addition to the benefit limitations specified in this
part, if a member participates in other benefit plans maintained by
the employer, to the extent the aggregation of benefits payable under
those plans and pursuant to Part 3 (commencing with Section 20000)
are subject to and exceed the limits prescribed by Section 415 of
Title 26 of the United States Code, the benefits payable pursuant to
Part 3 shall be reduced, but not below zero, to the extent necessary
to satisfy Section 415, before adjustments under any other plans are
made. Nothing in this section shall limit a member's entitlement to
replacement benefits as provided by Section 21757.
21755. Internal Revenue Service Procedure 92-42 shall apply to
all changes in benefit structure adopted by any employer regardless
of whether the change was adopted before August 3, 1992, or on or
after August 3, 1992. Internal Revenue Service Notice 89-45 shall not
be applied to any changes in benefit structure adopted by any
employer.
21756. (a) Notwithstanding any other provision of law, the
retirement rights conferred by this part upon any person who for the
first time becomes a member on or after January 1, 1990, shall be
subject to, and that person shall not have any retirement right or
benefit that exceeds, and no retirement right or benefit under this
part shall accrue to or vest in that person, that exceeds, the
limitations in the Internal Revenue Code upon public retirement
systems.
(b) The board shall provide to each employer a notice of the
content and effect of subdivision (a) for distribution, prior to
employment, to each person who may become a member and to each person
who for the first time becomes a member on or after January 1, 1990.
(c) Part 3 (commencing with Section 20000) shall be construed as
if it included this section.
21757. (a) If any member's retirement benefits would be limited
by Section 415 of Title 26 of the United States Code, the board
shall, at retirement, adjust the payment of benefits pursuant to Part
3 (commencing with Section 20000), including, but not limited to,
cost-of-living adjustments, cost-of-living banks, temporary
annuities, survivor continuance benefits or any combinations thereof
in order to maximize the member's benefits within the limits of
Section 415.
(b) The board shall establish a program of replacement benefits
for members whose retirement benefits are limited by Section 415 and
cannot be fully maximized pursuant to Part 3. The benefits provided
by that program may consist of deferred compensation, cash payments,
health benefits, or supplemental disability benefits, as shall be
determined by the board to give effect to the purpose of this part.
The factors the board may take into consideration in making its
determination shall include, but not be limited to, the following:
legal constraints, administrative feasibility, and
cost-effectiveness. The board may periodically modify the
replacement benefits program and may add or eliminate any type of
replacement benefits, as necessary, to carry out the purpose of this
part. The administrative costs of the replacement benefits program
shall be satisfied out of funds credited to the accounts of the
participant members, and shall not be paid from the retirement fund
or the retirement trust fund of a participating agency.
(c) The application of Section 415 to benefits provided under Part
3 and this part shall not be taken into account for purposes of
determining employers' or employees' contribution rates, until
replacement benefits are implemented pursuant to Section 21758.
(d) The application of Section 415 to benefits provided under Part
3 shall not be taken into account for purposes of actuarial
calculations. Under no circumstances shall the replacement benefit
program result in increased benefit costs to an employer, member, or
annuitant.
21758. (a) There is in the State Treasury a Replacement Benefit
Custodial Fund, that shall be administered exclusively by the board,
that is separate and apart from the retirement fund or any other
retirement trust fund and that is, notwithstanding Section 13340,
continuously appropriated, without regard to fiscal years, to the
board to carry out the purposes of this part.
(b) The earnings on the assets of the Replacement Benefit
Custodial Fund are continuously appropriated to the board for
expenditure solely to pay the costs of administering this part.
(c) The Replacement Benefit Custodial Fund shall also consist of
employer contributions, in amounts equivalent to the benefits which
are not paid from either the retirement fund or the retirement trust
fund of a participating agency to annuitants because of the
application of the payment limitations under Section 415 of Title 26
of the United States Code; and administrative costs assessed to and
paid by members enrolled in the replacement benefit program.
(d) The board shall determine the amount of employer contributions
required for deposit into the Replacement Benefit Custodial Fund,
based on all of the following:
(1) The amount of benefits which will not be payable from the
retirement fund, or the retirement trust fund of a participating
agency, because of the payment limitations in Section 415.
(2) The amount by which an employer's contributions to the
retirement fund, or the retirement fund of a participating agency
will be reduced, for annuitants whose benefit payments are limited by
Section 415.
(e) The board shall establish within the Replacement Benefit
Custodial Fund an individual account for each annuitant whose benefit
payments are limited by Section 415. Employer contributions shall
be credited to each account as of the date accrued and payable to the
account of each annuitant as of the date on which the contribution
is made. Replacement benefits shall be debited from each account as
of the date paid to each annuitant.
(f) If all sections of this part, except Section 21763 and this
section, become inoperative, pursuant to Section 21763, and all acts
required and authorized by Section 21763 have been fully performed,
any remaining balance in a member's individual account in the
Replacement Benefit Custodial Fund shall revert to, and become part
of, the trust fund of the retirement system from which the member
retired.
21759. This part shall be administered by the board in conformity
with its powers and duties set forth in Part 3 (commencing with
Section 20000). The board shall, to the extent it determines
feasible, follow the procedures set forth in Article 7 (commencing
with Section 20220) of Chapter 2 of Part 3. The power conferred upon
the board by Sections 20134 and 20160 shall encompass any retirement
system under this part, including participating agencies that
contract for board administration of replacement benefits and
employers that are required to enroll members in replacement benefits
pursuant to Section 21757.
21760. The board, in addition to its general rulemaking authority
under Section 20121, may adopt regulations which implement this
part. Those regulations shall be exempt from substantive review by
the Office of Administrative Law, in particular from that office's
review under Sections 11346.5 and 11346.7, subdivision (c) of Section
11346.8, subdivision (b) of Section 11347.3, and Sections 11349.1,
11349.3, and 11349.4. The board may adopt regulations that implement
this part on an emergency basis, without regard to the substantive
review provisions set forth in subdivisions (a) through (c) of
Section 11349.6.
21761. The state and all contracting agencies under this system
shall be deemed to have elected to contract with the board for
administration of the replacement benefit program pursuant to this
part. A participating agency may contract with the board for
administration to participate in the replacement benefit programs
administered by the board, as follows:
(a) A participating agency shall deposit its replacement benefit
contributions into the Replacement Benefit Custodial Fund, as the
board directs.
(b) At the request of the board, the participating agency shall
furnish any data concerning its members the board requires to direct
the payment of replacement benefit contributions.
(c) A public agency that intends to contract under this section
and become a participating agency shall do so only pursuant to the
procedure set forth in Sections 20469 through 20471.
(d) The ordinance or resolution by which a public agency approves
a contract under this section shall be filed with the board. A
participating agency under this section shall not maintain any other
replacement benefit program, except upon the express approval of the
board.
(e) A contract entered into under this section may be amended
pursuant to the procedure set forth in Section 20472.
21762. If the Internal Revenue Service determines that any
provision of Part 3 (commencing with Section 20000) or this part
cannot be given effect without placing a retirement system
administered under this part or Part 3 out of conformity with Section
415 of Title 26 of the United States Code, that provision, only to
the extent that it causes that nonconformity and only with respect to
the affected parties, shall become inoperative with respect to the
payment of benefits pursuant to Part 3 as of the effective date of
the determination. The board shall notify the Secretary of State
whenever a nonconforming provision becomes
inoperative under this section.
21763. (a) If Section 415 of Title 26 of the United States Code
is amended to exclude public retirement systems, or if the
application of Section 415 to public retirement systems is
invalidated by the final decision of an appellate court of proper
jurisdiction, all sections of this part, except this section and
Section 21758, shall become inoperative as of the effective date of
that amendment or decision. The board shall immediately notify the
Secretary of State whenever any provision of this part becomes
inoperative pursuant to this section.
(b) Whenever all sections of this part, except this section and
Section 21758, become inoperative pursuant to this section, and to
the extent not prohibited by the Internal Revenue Code, the board
shall do all of the following:
(1) Remove the pension limitations imposed by Section 415 for
prospective payments to annuitants.
(2) Eliminate the replacement benefits, and reimburse annuitants
for that portion of their pension funds that had been credited to the
Replacement Benefit Custodial Fund but not yet been disbursed, with
accrued interest.
(3) Take any and all other actions it deems necessary or feasible.
21764. It is the sole intent of the Legislature, in enacting this
part, to fully comply with the provisions of the Internal Revenue
Code that apply to public retirement systems in order to maintain and
ensure the federal income tax exempt status of the Public Employees'
Retirement System, to elect the "grandfather" option in Section 415
(b)(10) of Title 26 of the United States Code, and to provide, to the
extent deemed reasonable, commensurate replacement benefits to
affected members of this system and of other participating agencies
that elect to contract with this system for the administration of a
replacement benefits program.
The Legislature finds and declares that all costs of local public
agencies and local public retirement systems of complying with
Section 415 of Title 26 of the United States Code are a federal
mandate within the meaning of Section 6 of Article XIIIB of the
California Constitution and Part 7 (commencing with Section 17500) of
Division 4 of Title 2, as construed in City of Sacramento v. State
of California (50 Cal. 3d 51).
It is the intent of the Legislature, in enacting this part, to not
impose upon local public agencies that are contracting agencies with
this system or upon other local public agencies that elect to
contract with this system for the administration of a replacement
benefits program, state-reimbursable, state-mandated local program
benefit costs within the meaning of Section 6 of Article XIIIB of the
California Constitution and Part 7 (commencing with Section 17500)
of Division 4 of this title.
If either the Commission on State Mandates or a court determines
that this part imposes upon any local agency state-mandated local
program benefit costs, notwithstanding any other provision of law, no
reimbursement therefor shall be made from the State Mandates Claims
Fund pursuant to Part 7 (commencing with Section 17500) of Division 4
of this title or from any other state fund.
21765. The Legislature reserves the power and right to amend this
part, as needed to effect its purposes. This part shall be
controlling over any memorandum of understanding reached between
employers and employees pursuant to Chapter 10 (commencing with
Section 3500), Chapter 10.3 (commencing with Section 3512), or
Chapter 12 (commencing with Section 3560) of Division 4 of Title 1.
SEC. 5. It is the intent of the Legislature in enacting this act
to reorganize the Public Employees' Retirement Law and the Internal
Revenue Code Compliance and Replacement Benefit Program in order to
facilitate administration. It is not the intent of the Legislature
to make any substantive change in the law. Thus, if, in the opinion
of any court or administrative officer, a different result under any
provisions of Part 3 (commencing with Section 20000), or Part 3.4
(commencing with Section 21750) of Division 5 of Title 2 of the
Government Code as read on December 31, 1995, would occur because of
the enactment of this act, the provisions as read on December 31,
1995, shall be followed and the result shall be as it would have been
on December 31, 1995. Further, it is the intent of the Legislature
that no new or additional rights vest in any member, retired person,
or beneficiary of a member as a result of the enactment of this act.
No provision of this act may be interpreted to vest any new or
additional right. No current or future benefit under this act shall
be revised in any way because of this act.
SEC. 6. Any section of any act enacted in 1995 at the 1995-96
Regular Session of the Legislature that amends, adds, or repeals any
section of Part 3 (commencing with Section 20000), or Part 3.4
(commencing with Section 21750) of Division 5 of Title 2 of the
Government Code and that is chaptered either before or after this act
is chaptered shall prevail over this act.