BILL NUMBER: SB 400	CHAPTERED
	BILL TEXT

	CHAPTER   555
	FILED WITH SECRETARY OF STATE   SEPTEMBER 29, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 28, 1999
	PASSED THE SENATE   SEPTEMBER 10, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 9, 1999
	AMENDED IN ASSEMBLY   SEPTEMBER 7, 1999
	AMENDED IN ASSEMBLY   JULY 15, 1999
	AMENDED IN ASSEMBLY   JUNE 24, 1999
	AMENDED IN ASSEMBLY   MAY 19, 1999
	AMENDED IN SENATE   APRIL 22, 1999
	AMENDED IN SENATE   APRIL 6, 1999

INTRODUCED BY   Senator Ortiz
   (Principal coauthor:  Senator Burton)
   (Principal coauthor:  Assembly Member Correa)
   (Coauthors:  Assembly Members Pescetti and Steinberg)

                        FEBRUARY 12, 1999

   An act to amend Sections 20391, 20392, 20393, 20395, 20397, 20398,
20405.1, 20405.3, 20407, 20409, 20677, 20683, 20687, 20822, 21070,
21071, 21072, 21073, 21073.5, 21077, 21130, 21337, 21353, 21353.5,
21362, 21363, 21363.5, 21369, 21372, 21373, 21374, 21403, 21407,
21572, 21573, and 21581 of, and to add Sections 20035.5, 21070.5,
21070.6, 21073.1, 21073.7, 21251.13, 21328, 21354.1, 21362.2,
21363.1, and 21369.1 to, to repeal Sections 21363.6 and 21573.5 of,
and to add and repeal Section 21574.7 of, the Government Code,
relating to the Public Employees' Retirement System, and making an
appropriation therefor.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 400, Ortiz.  Public Employees' Retirement System:  benefits.
   (1) Under the Public Employees' Retirement Law, retirement
allowances for school members are calculated, in part, based on the
highest average compensation earnable during a consecutive 3-year
period.
   This bill would instead base that calculation on the highest
average compensation earnable during a consecutive 12-month period.
   (2) The Public Employees' Retirement Law defines "state peace
officer/firefighter" in terms of employees employed by specified
state departments in specified job classifications and provides
higher retirement benefit formulas and higher employer and employee
contribution rates for state peace officer/firefighter members than
for state miscellaneous members.
   This bill would add the Sergeants-at-Arms of each house of the
State Legislature, excluding the Chief Sergeant-at-Arms, within the
state peace officer/firefighter membership category.
   (3) The Public Employees' Retirement Law establishes retirement
formulas, known as the Second Tier and the modified First Tier, that
are applicable to specified members of the system.
   This bill would provide that state miscellaneous and state
industrial members hired or returning to state service, as specified,
on or after January 1, 2000, shall be subject to First Tier benefits
unless they elect to be subject to Second Tier benefits; authorize
members subject to Second Tier benefits to elect to become subject to
First Tier benefits and contribution rates, thereby making an
appropriation; and provide that  members subject to modified First
Tier  benefits shall become subject to First Tier  benefits, as
specified.  The bill would also establish the means for members
subject to Second Tier benefits, who are employed by the state on or
after January 1, 2000, to elect to have their former Second Tier
service converted to First Tier service.
   (4) The Public Employees' Retirement Law prescribes a 2% at age 60
retirement formula for state miscellaneous, university, state
industrial and school members.
   This bill would make that formula inapplicable to those members
employed by the state on or after January 1, 2000, except as
specified, and would instead prescribe a 2% at age 55 retirement
formula, as specified.  The bill would also provide a 1 to 6%,
inclusive, retirement allowance increase for certain retired state
and school members, as specified, and make related technical changes.

   (5) The Public Employees' Retirement Law prescribes a 2% at age 50
retirement formula for members of the California Highway Patrol and
specified local safety members, a 2.5% at age 55 retirement formula
for state peace officer/firefighter members and specified local
safety members, and a 2% at age 55 retirement formula for state
safety members and specified local safety members, all subject to
maximum benefit limitations based on specified percentages of final
compensation.
   This bill would make those formulas inapplicable to those state
members who are employed by the state on or after January 1, 2000,
and would instead prescribe a 3% at age 50 retirement formula for
members of the California Highway Patrol and a 3% at age 55 for state
peace officer/firefighter members and certain local safety members,
as specified; provide an enhanced retirement formula for state safety
members, as specified; and make related technical changes.  The bill
would also modify the maximum benefit limitations, as specified.
   (6) The Public Employees' Retirement Law, as amended by Chapter 3
of the Statutes of 1999, provides preretirement death benefits for
the surviving spouse or children, or both, as specified, of state
members and specified school members not covered by the federal
Social Security Act and provides that a surviving spouse becomes
eligible for certain of these benefits when he or she attains the age
of 62 years and meets other specified criteria.
   This bill would decrease the surviving spouse's eligibility age to
60 years, would modify the method for funding these benefits, and
would repeal these benefits on January 1, 2010.
   (7) The bill would provide that the operation and application of
certain of its provisions would be subject to specified conditions
and limitations.
   (8) This bill would incorporate additional changes to Sections
20391, 20677, 21337, 21362, 21363, 21369, 21572, 21573, and 21581 of
the Government Code proposed by AB 99, AB 232, AB 813, SB 234, SB
339, SB 800, and SB 401, as applicable, to take effect if this bill
and those bills, as specified, are enacted and become effective on or
before January 1, 2000, and this bill is enacted last.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 20035.5 is added to the Government Code, to
read:
   20035.5.  Notwithstanding Section 20037, "final compensation" for
the purposes of determining any pension or benefit with respect to a
school member who retires or dies on or after January 1, 2000, and
with respect to benefits based on service with a school employer,
means the highest annual compensation that was earnable by the school
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 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.
  SEC. 2.  Section 20391 of the Government Code is amended to read:
   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), 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.
   (e) A member who is employed in a position that is reclassified to
state peace officer/firefighter pursuant to this section may make an
irrevocable election in writing to remain subject to the service
retirement benefit and the normal rate of contribution applicable
prior to reclassification by filing a notice of the election with the
board within 90 days after notification by the board.  A member who
so elects shall be subject to the reduced benefit factors specified
in Section 21353 or 21354.1, as applicable, only for service also
included in the federal system.
  SEC. 2.5.  Section 20391 of the Government Code is amended to read:

   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), 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.
   (e) All persons in the Franchise Tax Board who have been
designated as peace officers in subdivision (s) of Section 830.3 of
the Penal Code.
   (f) A member who is employed in a position that is reclassified to
state peace officer/firefighter pursuant to this section may make an
irrevocable election in writing to remain subject to the service
retirement benefit and the normal rate of contribution applicable
prior to reclassification by filing a notice of 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 or 21354.1, as applicable, only for service included in
the federal system.
  SEC. 3.  Section 20392 of the Government Code is amended to read:
   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)
8997                Arson and Bomb Investigator
9694                Board Coordinating Parole Agent, Youthful
Offender
                    Parole Board
9904                Correctional Counselor I
9903                Correctional Counselor II
9662                Correctional Officer
9911                Case Work Specialist, Youth Authority
9013                Deputy State Fire Marshal III (Specialist)
9086                Deputy State Fire Marshal
9010                Deputy State Fire Marshal III (Supervisor)
1077                Fire Apparatus Engineer
1095                Fire Captain
1072                Fire Control Aid
8979                Firefighter
1083                Firefighter I
1082                Firefighter II
9001                Firefighter (Correctional Institution)
8990                Firefighter/Security Officer
1047                Fire Prevention Officer I
1049                Fire Prevention Officer II
9090                Fire Service Training Specialist III
8418                Fish and Game Patrol, Lieutenant
8421                Fish and Game Warden, Department of Fish and Game

9039                Senior Food and Drug Investigator
9028                Food and Drug Program Specialist
9007                Food Technology Specialist
1060                Forestry Aid
1046                Forestry Pilot (Helicopter)
9579                Group Supervisor
9578                Group Supervisor Trainee
6387                Heavy Fire Equipment Operator
1937                Hospital Peace Officer I
8416                Lieutenant Fish and Game Patrol Boat
0992                Lifeguard
8217                Medical Technical Assistant, Correctional
Facility
1992                Museum Security Officer I
9701                Parole Agent I, Youth Authority
9765                Parole Agent I, Adult Parole
9696                Parole Agent II, Youth Authority (Specialist)
9763                Parole Agent II, Adult Parole (Supervisor)
9762                Parole Agent II, Adult Parole (Specialist)
8215                Senior Medical Technical Assistant
8359                Sergeant, California State Police
8980                State Fire Marshal Trainee
9723                State Forest Ranger I (Nonsupervisory)
9724                State Forest Ranger II (Nonsupervisory)
0983                State Park Ranger I
8464                State Police Officer
8358                State Security Officer
8989                Captain Firefighter/Security Officer
8410                Warden-Pilot Department of Fish and Game
9581                Youth Counselor

   A member who is employed in a position that is reclassified to
state peace officer/firefighter pursuant to this section may make an
irrevocable election in writing to remain subject to the service
retirement benefit and the normal rate of contribution applicable
prior to reclassification by filing a notice of the election with the
board within 90 days after notification by the board.  A member who
so elects shall be subject to the reduced benefit factors specified
in Section 21353 or 21354.1, as applicable, only for service also
included in the federal system.
  SEC. 4.  Section 20393 of the Government Code is amended to read:
   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), 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), 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 the 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 Forester I (Class Code 1054) and Forester II (Class
Code 9721).
   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 or 21354.1, as applicable, only for service also
included in the federal system.
  SEC. 5.  Section 20395 of the Government Code is amended to read:
   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 that 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 or 21354.1, as applicable, 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.
  SEC. 6.  Section 20397 of the Government Code is amended to read:
   20397.  "State peace officer/firefighter member" also includes:
   (1) The Sergeants-at-Arms of each house of the Legislature who
have been designated as peace officers in subdivision (a) of Section
830.36 of the Penal Code, excluding the Chief Sergeant-at-Arms.
   (2) 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
or 21354.1, as applicable, only for service included in the federal
system.
  SEC. 7.  Section 20398 of the Government Code is amended to read:
   20398.  "State peace officer/firefighter member" also includes:
   (a) 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.
   (b) Members who are reclassified pursuant to this section may file
an irrevocable election to remain subject to their prior retirement
formula and the corresponding rate of contributions.  The Director of
Corrections may, upon appointment to that office on or after January
1, 1999, file an irrevocable election to be subject to the
industrial formula and the corresponding rate of contributions.  The
elections must be filed within 90 days of notification by the board.
Members who so elect shall be subject to the reduced benefit factors
specified in Section 21353 or 21354.1, as applicable, only for the
service included in the federal system.
  SEC. 8.  Section 20405.1 of the Government Code is amended to read:

   20405.1.  Notwithstanding Section 20405, this section shall apply
to state employees in State Bargaining Unit 16.
   (a) On and after the effective date of this section, state safety
members shall also include officers and employees whose
classifications or positions are found to meet the state safety
criteria prescribed in Section 19816.20, provided the Department of
Personnel Administration agrees to their inclusion.  The effective
date of safety membership shall be the date on which the department
and the employees' exclusive representative reach agreement by
memorandum of understanding pursuant to Section 3517.5.
   (b) The department shall notify the board as new classes or
positions become eligible for state safety membership, as specified
in subdivision (a), and specify how service prior to the effective
date shall be credited.
   (c) Notwithstanding Section 7550.5, the department shall prepare
and submit to the Legislature an annual report that contains the
classes or positions that are eligible for state safety membership
under this section.
   (d) Any person designated as a state safety member pursuant to
this section may elect, within 90 days of notification by the board,
to remain subject to the miscellaneous or industrial service
retirement benefit and contribution rate by filing an irrevocable
election with the board.  A member who so elects shall be subject to
the reduced benefit factors specified in Section 21076, 21353, or
21354.1, as applicable, only for service also included in the federal
system.
  SEC. 9.  Section 20405.3 of the Government Code is amended to read:

   20405.3.  (a) Notwithstanding Section 20405, this section shall
apply only to state employees in State Bargaining Unit 19.
   (b) On and after the effective date of this section, state safety
members shall also include officers and employees whose
classifications or positions are found to meet the state safety
criteria prescribed in Section 19816.23, provided the Department of
Personnel Administration agrees to their inclusion.  The effective
date of safety membership shall be the date on which the department
and the employees' exclusive representative reach agreement by
memorandum of understanding pursuant to Section 3517.5.
   (c) The department shall notify the board as new classes or
positions become eligible for state safety membership, as specified
in subdivision (a), and specify how service prior to the effective
date shall be credited.
   (d) Notwithstanding Section 7550.5, the department shall prepare
and submit to the Legislature an annual report that contains the
classes or positions that are eligible for state safety membership
under this section.
   (e) Any person designated as a state safety member pursuant to
this section may elect, within 90 days of notification by the board,
to remain subject to the miscellaneous or industrial service
retirement benefit and contribution rate by filing an irrevocable
election with the board.  A member who so elects shall be subject to
the reduced benefit factors specified in Section 21076, 21353, or
21354.1, as applicable, only for service also included in the federal
system.
  SEC. 10.  Section 20407 of the Government Code is amended to read:

   20407.  "State safety member" also includes officers and employees
with the State 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)
        8212            Nurse Practitioner
                          (forensic facility)
        8160            Health Services Specialist
                          (forensic facility)
        7601            Program Director-Medical
                          (forensic facility)

   "State safety member" also includes an officer or employee of the
State Department of Mental Health at Patton State Hospital or
Atascadero State Hospital, the State Department of Mental Health
Psychiatric Program of California Medical Facility at Vacaville, or
any other state hospital that is deemed a forensic facility, 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 the
Public Employees' Retirement 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 or 21354.1, as applicable, only for
service also included in the federal system.
  SEC. 11.  Section 20409 of the Government Code is amended to read:

   20409.  (a) "State safety member" shall also include officers and
employees of the following departments with the following class
titles:


Class
Code           Classification            Department
8330       Aircraft Pilot,            Justice
           Department of Justice
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                      Veterans Affairs
           Firefighter/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
8673       Deputy Division            Alcoholic Beverage Control
           Chief, Alcoholic
           Beverage Control
8677       District Administrator,    Alcoholic Beverage Control
           Alcoholic Beverage
           Control
8990       Firefighter/Security       Veterans Affairs
           Guard
8966       Division Chief,            Fire Marshal
           California State
           Fire Marshal
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
0891       Park Safety and            Parks and Recreation
           Enforcement
           Supervisor
0890       Park Safety and            Parks and Recreation
           Enforcement
           Specialist
8358       State Security Officer     General Services
8999       Chief Arson                Fire Marshal
           and 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 or 21354.1, as
applicable, 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.
  SEC. 12.  Section 20677 of the Government Code is amended to read:

   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 for a state miscellaneous or
industrial member, who has elected to be subject to Section 21353.5
and whose service is not included in the federal system, shall be 6
percent of the member's compensation.
   (3) 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, 21353.5, 21354, or 21354.1 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) (1) 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.
   (2) The normal rate of contribution for a state miscellaneous or
industrial member, who has elected to be subject to Section 21353.5
and whose service has been included in the federal system, shall be 5
percent of compensation, subject to the reduction specified in
paragraph (3) of subdivision (a).
   (c) The normal rate of contribution for a state miscellaneous or
state industrial member who is subject to Section 21076 or Section
21077 shall be 0 percent.
   (d) 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.
   (e) A member who elects to become subject to Section 21353 or
21354.1, as applicable, shall contribute at the rate specified in
paragraph (1) of subdivision (a) or paragraph (1) of subdivision (b),
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 or 21073.1, as
applicable.
  SEC. 12.5.  Section 20677 of the Government Code is amended to
read:
   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 for a state miscellaneous or
industrial member, who has elected to be subject to Section 21353.5
and whose service is not included in the federal system, shall be 6
percent of the member's compensation.
   (3) 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, 21353.5, 21354, or 21354.1 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) (1) 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.
   (2) The normal rate of contribution for a state miscellaneous or
industrial member, who has elected to be subject to Section 21353.5
and whose service has been included in the federal system, shall be 5
percent of compensation, subject to the reduction specified in
paragraph (3) of subdivision (a).
   (c) The normal rate of contribution for a state miscellaneous or
state industrial member who is subject to Section 21076 or Section
21077 shall be 0 percent.
   (d) 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.
   (e) A member who elects to become subject to Section 21353 or
21354.1, as applicable, shall contribute at the rate specified in
paragraph (1) of subdivision (a) or paragraph (1) of subdivision (b),
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 or 21073.1, as
applicable.
   (f) In any fiscal year when the normal rate of contribution for a
school member, as established under paragraph (1) of subdivision (a),
is greater than the rate of contribution required of the school
member pursuant to Section 20817, the amount equivalent to the
difference in the rates shall be directed to the Supplemental
Contributions Program as set forth in Part 8 (commencing with Section
22970).  The provisions of this subdivision shall not take effect
until the date specified by the board pursuant to Section 20817.
  SEC. 13.  Section 20683 of the Government Code is amended to read:

   20683.  (a) For each state member subject to Section 21369 or
21369.1, the normal rate of contribution shall be 6 percent of
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.  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 the memorandum of
understanding require the expenditure of funds, those provisions
shall not become effective unless approved by the Legislature in the
annual Budget Act.
   (b) For each local safety member subject to Section 21369, the
normal rate of contribution shall be 7 percent of compensation.
   (c) 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 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 those services in the federal
system and prior to termination of his or her coverage under the
federal system.
   (d) The operative date of this section with respect to a local
safety member shall be the date upon which he or she becomes subject
to Section 21369.
  SEC. 14.  Section 20687 of the Government Code is amended to read:

   20687.  (a) The normal rate of contribution for state peace
officer/firefighter members and for local safety members subject to
Section 21363 or 21363.1 shall be 8 percent of the compensation in
excess of two hundred thirty-eight dollars ($238) per month paid
those members.
   (b) Notwithstanding subdivision (a), the normal rate of
contribution for local safety members of the City of Sacramento
subject to Section 21363 shall be 9 percent of compensation paid
those members.
   (c) 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.
  SEC. 15.  Section 20822 of the Government Code is amended to read:

   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 and all other categories of
members whose compensation is paid from the Senate Operating Fund or
the Assembly Operating Fund or the Operating Funds of the Assembly
and Senate.
  SEC. 16.  Section 21070 of the Government Code is amended to read:

   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, and until January 1, 2000, 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) Notwithstanding any other provision in subdivisions (a) to
(e), inclusive, this section does not apply to a state miscellaneous
or state industrial member who, on or after January 1, 2000, (1) was
first employed by the state, (2) returned to employment with the
state from a break in service of more than 90 days, or (3) returned
to employment with the state after ceasing to be a member pursuant to
Section 20340 or 21075.
   (g) The amendments to this section enacted during the first year
of the 1999-2000 Regular Session are subject to the limitations set
forth in Section 21251.13.
  SEC. 17.  Section 21070.5 is added to the Government Code, to read:

   21070.5.  (a) Notwithstanding any other provision of this article,
a person who, on or after January 1, 2000, becomes a state
miscellaneous or state industrial member of the system because the
person:  (1) is first employed by the state, (2) returns to
employment with the state from a break in service of more than 90
days, or (3) returns to employment with the state after ceasing to be
a member pursuant to Section 20340 or 21075, shall be subject to the
benefits provided by Section 21354.1, unless the person elects
within 180 days of membership as a state miscellaneous or state
industrial member to be subject to the Second Tier benefits provided
for in Section 21076.  This section shall only apply to state
miscellaneous and state industrial members who are:  (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.
   (b) The effective date of the election shall be the first of the
month following the date the election is received by the system and
shall be applicable to state service rendered on and after that date.
  Any election filed with the board pursuant to this section shall
also be signed by the spouse of the member.
   (c) A member who makes an election authorized by this section
shall not be precluded from making a subsequent election pursuant to
Section 21073.7 to be subject to the benefits provided by Section
21354.1.
   (d) Operation and application of this section are subject to the
limitations set forth in Section 21251.13.
  SEC. 18.  Section 21070.6 is added to the Government Code, to read:

   21070.6.  (a) A member who is subject to Section 21076 or 21077
may be credited at no cost with all previous state miscellaneous or
state industrial service eligible to be credited under Second Tier
benefits.  A member who is entitled to service credit under this
section shall apply for and identify time periods for that service to
the board.
   (b) Operation and application of this section are subject to the
limitations set forth in Section 21251.13.
  SEC. 19.  Section 21071 of the Government Code is amended to read:

   21071.  (a) Notwithstanding any other provision of this article,
except as provided in subdivisions (b) and (c), persons who first
become state miscellaneous or state industrial members of the system
on or after July 1, 1991, and who are (1) excluded from the
definition of state employee in subdivision (c) of Section 3513, (2)
employed by the executive branch of government and 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.
   (b) 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 (c) 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 (c) 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.
   (c) Effective on or after April 1, 1998 state miscellaneous or
industrial members may elect to be subject to the service retirement
formula prescribed in Section 21353.5, as an alternative to Second
Tier membership under Section 21076.  The election shall be provided
to eligible members by the appointing authority, and, to be
effective, an election must be filed with the board.  Eligible
members who must be in the employment of the state are defined as
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 Section
21353.5.  The effective date of a member's election shall be the
first day of the month following the date the election is filed with
the system.
   (d) This section shall not apply to state miscellaneous members
employed by the California State University or employees described in
Section 20324.
   (e) This section shall become inoperative on January 1, 2000.
   (f) The amendments to this section enacted during the first year
of the 1999-2000 Regular Session are subject to the limitations set
forth in Section 21251.13.
  SEC. 20.  Section 21072 of the Government Code is amended to read:

   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.
   (d) This section shall become inoperative on January 1, 2000.
   (e) The amendments to this section enacted during the first year
of the 1999-2000 Regular Session are subject to the limitations set
forth in Section 21251.13.
  SEC. 21.  Section 21073 of the Government Code is amended to read:

   21073.  (a) A member who elects prior to January 1, 2000, 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 prior to January 1, 2000, 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, prior to January 1, 2000, 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.
   (c) The amendments to this section enacted during the first year
of the 1999-2000 Regular Session are subject to the limitations set
forth in Section 21251.13.
  SEC. 22.  Section 21073.1 is added to the Government Code, to read:

   21073.1.  (a) Effective January 1, 2000, a member who elects to
receive service credit under Section 21354.1, as authorized by
Section 21073.7, for time during which the member received service
credit subject to Section 21076 or 21077, shall deposit an amount
equal to any accumulated contributions the member withdrew pursuant
to Section 20737, plus the interest that would have been credited to
the member's account had the contributions not been withdrawn, and
any contributions the member would have made, plus an amount equal to
the interest that would have been credited to those contributions,
had the member not been subject to Section 21076 or 21077.  This
deposit shall be made in a lump sum or by installments, with interest
through the completion of payments, over that period and subject to
minimum payment amounts as may be prescribed by regulations of the
board.  Alternatively, this deposit requirement may be satisfied by
an actuarial equivalent reductions in the member's retirement
allowance.
   (b) The board, in addition to its general rulemaking authority
under Section 20121, may adopt regulations that implement this
section.  Those regulations shall be exempt from review by the Office
of Administrative Law. However, the board shall transmit those
regulations to the Office of Administrative Law for filing with the
Secretary of State and publication in the California Code of
Regulations.
   (c) The amendments to this section enacted during the first year
of the 1999-2000 Regular Session are subject to the limitations set
forth in Section 21251.13.
  SEC. 23.  Section 21073.5 of the Government Code is amended to
read:
   21073.5.  A state Second Tier member, who meets the eligibility
definition prescribed in subdivision (c) of Section 21071 may elect
to be subject to Section 21353.5 while he or she is in the employment
of the state.  Upon becoming subject to Section 21353.5, the active
member may elect, prior to January 1, 2000, to have his or her past
Second Tier service credited
under Section 21353.5.  A member who elects to receive credit for
past service shall pay all reasonable administrative costs and the
amount that will be equivalent to the difference between the
actuarial present value of the Second Tier service that had accrued
to the member's credit and the actuarial present value for the same
service had it been credited under Section 21353.5, including
interest if deemed necessary, in accordance with the method to be
established by the board.  The amount shall be contributed in a 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.
   The amendments to this section enacted during the first year of
the 1999-2000 Regular Session are subject to the limitations set
forth in Section 21251.13.
  SEC. 24.  Section 21073.7 is added to the Government Code, to read:

   21073.7.  (a) A member subject to the Second Tier benefits
provided in Section 21076 or 21077 who is employed by the state on or
after January 1, 2000, may make an irrevocable election, to be filed
with the board, to be subject to the First Tier benefits provided in
Section 21354.1 and to make the contributions specified in Section
20677.  An election shall be effective the first of the month
following the date the election is received by the system and shall
be applicable to state service rendered on and after that date.  An
election to be subject to Section 21354.1 may be made at any time
prior to retirement and shall also be signed by the spouse of the
member.
   (b) A member who is employed by the state on or after January 1,
2000, with past service credited under the Second Tier may make an
irrevocable election, at any time prior to retirement, to have his or
her past Second Tier service credited under Section 21354.1 by
making contributions specified in Section 21073.1.  This subdivision
shall not apply to a Second Tier member eligible to make the election
provided in subdivision (a) until after the effective date of that
election.
   (c) A member subject to modified First Tier benefits pursuant to
Section 21353.5 shall become subject to Section 21353 or 21354.1, as
applicable, and make contributions as specified in Section 20677.
The member's past service and contributions credited as modified
First Tier under Section 21353.5 shall be converted to First Tier
service and contributions and shall be subject to Section 21353 or
21354.1, as applicable.  Contributions previously credited as
modified First Tier and withdrawn by the member may be redeposited
under the conditions specified in Section 20750, with the service
credit and contributions subject to  Section 21353 or 21354.1, as
applicable.
   (d) Operation and application of this section is subject to the
limitations set forth in Section 21251.13.
  SEC. 25.  Section 21077 of the Government Code is amended to read:

   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 under the
Second Tier retirement formula, computed pursuant to Section 21076,
added to the allowance for service rendered as a state miscellaneous
or state industrial member covered under the First Tier formula,
computed pursuant to Section 21353 or 21354.1, as applicable.
  SEC. 26.  Section 21130 of the Government Code is amended to read:

   21130.  Every patrol member subject to Section 21362 or 21362.2,
as applicable, shall be retired on the first day of the calendar
month succeeding that in which he or she attains the age of 60 years.

  SEC. 27.  Section 21251.13 is added to the Government Code, to
read:
   21251.13.  (a) Notwithstanding any other provision of law,
Sections 21070.5, 21070.6, 21073.1, 21073.7, 21354.1, 21362.2,
21363.1, and 21369.1 and the amendments to Sections 21070, 21071,
21072, 21073, 21073.5, and 21353.5, enacted during the first year of
the 1999-2000 Regular Session:
   (1) Shall not become operative unless the board adopts a
resolution that does both of the following:  (A) employs, for the
June 30, 1998, valuation, 95 percent of the market value of assets of
the state employer as the actuarial value of the assets; and (B)
amortizes the June 30, 1998, excess assets over a period of 20 years,
beginning July 1, 1999.
   (2) Shall not apply to a state employee, as defined in subdivision
(c) of Section 3513, in a bargaining unit unless and until
incorporated in a memorandum of understanding, pursuant to Section
3517.5, applicable to that bargaining unit.
   (3) Shall not apply to excluded employees, as defined in Section
3527, unless the Department of Personnel Administration has approved
the application of those provisions to those employees.
   (b) Notwithstanding anything in a memorandum of understanding to
the contrary, (1) the benefits provided under the provisions of those
sections described in subdivision (a), as added or amended during
the first year of the 1999-2000 Regular Session, shall not terminate
upon the expiration or termination of the memorandum of
understanding, and (2) the only conditions to the operation of the
provisions of those sections described in subdivision (a), as added
or amended during the first year of the 1999-2000 Regular Session,
are contained in this section.
   (c) Upon request by the state employer or other entity, or on its
own volition, the board may change the amortization period, or take
any other action the board deems necessary or appropriate, to
mitigate the impact of unforeseen factors that may cause an increase
in the employer contribution by the state.  Nothing in this section
shall be construed to limit the board's authority under Section 17 of
Article 16 of the California Constitution.
  SEC. 28.  Section 21328 is added to the Government Code, to read:
   21328.  In addition to the increase in allowance authorized and
granted pursuant to Section 21313, and notwithstanding the limitation
on that increase imposed by this article and subdivision (b) of
Section 21337, effective January 1, 2000, the monthly allowance paid
with respect to a state or school member who retired or died prior to
January 1, 2000, other than an allowance provided by Article 3
(commencing with Section 21570) of Chapter 14, 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:
    24 months ending Dec. 31, 1999               0.0%
    12 months ending Dec. 31, 1997               1.0%
    24 months ending Dec. 31, 1996               2.0%
    60 months ending Dec. 31, 1994               3.0%
    60 months ending Dec. 31, 1989               4.0%
    120 months ending Dec. 31, 1984              5.0%
    12 months ending Dec. 31, 1974
    or earlier                                   6.0%

   The percentage shall be applied to the allowance payable on
January 1, 2000, 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.
Notwithstanding Section 21337 to the contrary, this increase shall
not be included in determining the initial monthly allowance upon
which a supplemental benefit is payable pursuant to Section 21337.
  SEC. 29.   Section 21337 of the Government Code is amended to read:

   21337.  (a) On an annual basis, the board shall transfer to a
supplemental account, to fund the purchasing power protection
allowance, 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.
   (b) The funds 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, notwithstanding the
benefit provided by Section 21328, 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.
  SEC. 29.5.  Section 21337 of the Government Code is amended to
read:
   21337.  (a) Annually all monthly allowances paid by the system to
retirees of contracting agencies, and to the survivors and
beneficiaries of those retirees, shall be increased to 80 percent of
the purchasing power of the initial monthly allowances as determined
by the board.
   (b) Annually all monthly allowances paid by the system to retirees
of the state, university, and school employers, and to the survivors
and beneficiaries of those retirees, shall be increased to 75
percent of the purchasing power of the initial monthly allowances,
notwithstanding the benefit provided by Section 21328, as determined
by the board.
   (c) The cost of the payment of these benefits to retirees and
beneficiaries of each employer shall be paid from the assets of that
employer in the system.
  SEC. 30.  Section 21353 of the Government Code is amended to read:

   21353.  (a) The combined current and prior service pensions for a
local miscellaneous member, a school member, a state miscellaneous or
state industrial member, or a university 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 or state
industrial member, local miscellaneous member, school member, or a
university member, or service covered under the First Tier retirement
formula, 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

   (b) 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.
   (c) 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.
   (d) With the exception of state miscellaneous members for service
rendered for the California State University or the legislative or
judicial branch of government, this section shall apply to state
miscellaneous and state industrial members who are not employed by
the state on or after January 1, 2000.
  SEC. 31.  Section 21353.5 of the Government Code is amended to
read:
   21353.5.  (a) The combined current and prior service pensions for
a state miscellaneous or state industrial member who has elected to
be subject to the service retirement formula prescribed in this
section, as provided by Sections 21071 and 21073.5, 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
credited under this section, 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 and over ..........................       1.000

   (b) 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.

   (c) The retirement allowance provided by this section, which shall
be effective for members who retire on and after April 1, 1998, 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.
   (d) This section shall become inoperative on January 1, 2000.
   (e) The amendments to this section enacted during the first year
of the 1999-2000 Regular Session are subject to the limitations set
forth in Section 21251.13.
  SEC. 32.  Section 21354.1 is added to the Government Code, to read:

   21354.1.  (a) The combined current and prior service pensions for
school members, state miscellaneous or state industrial members, or
university members who are subject to the provisions of 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 current and
prior service, except service in a category of membership other than
that of a school member, state miscellaneous or state industrial
member, or university member or service covered under this retirement
formula with which the member is entitled to be credited at
retirement:


   Age at
retirement                                        Fraction
      50 ...................................        0.550
      50 1/4 ...............................        0.573
      50 1/2 ...............................        0.595
      50 3/4 ...............................        0.618
      51 ...................................        0.640
      51 1/4 ...............................        0.663
      51 1/2 ...............................        0.685
      51 3/4 ...............................        0.708
      52 ...................................        0.730
      52 1/4 ...............................        0.753
      52 1/2 ...............................        0.775
      52 3/4 ...............................        0.798
      53 ...................................        0.820
      53 1/4 ...............................        0.843
      53 1/2 ...............................        0.865
      53 3/4 ...............................        0.888
      54 ...................................        0.910
      54 1/4 ...............................        0.933
      54 1/2 ...............................        0.955
      54 3/4 ...............................        0.978
      55 ...................................        1.000
      55 1/4 ...............................        1.008
      55 1/2 ...............................        1.016
      55 3/4 ...............................        1.024
      56 ...................................        1.032
      56 1/4 ...............................        1.040
      56 1/2 ...............................        1.048
      56 3/4 ...............................        1.055
      57 ...................................        1.063
      57 1/4 ...............................        1.071
      57 1/2 ...............................        1.079
      57 3/4 ...............................        1.086
      58 ...................................        1.094
      58 1/4 ...............................        1.102
      58 1/2 ...............................        1.110
      58 3/4 ...............................        1.118
      59 ...................................        1.125
      59 1/4 ...............................        1.134
      59 1/2 ...............................        1.141
      59 3/4 ...............................        1.149
      60 ...................................        1.157
      60 1/4 ...............................        1.165
      60 1/2 ...............................        1.173
      60 3/4 ...............................        1.180
      61 ...................................        1.188
      61 1/4 ...............................        1.196
      61 1/2 ...............................        1.203
      61 3/4 ...............................        1.211
      62 ...................................        1.219
      62 1/4 ...............................        1.227
      62 1/2 ...............................        1.235
      62 3/4 ...............................        1.243
      63 and over ..........................        1.250

   (b) 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 any of whose service has been included in the federal system.

   (c) This section shall supersede Section 21353 for all school
members, all university members, and all state miscellaneous members,
with respect to service rendered for the California State University
or the legislative or judicial branch of government, who retire on
or after January 1, 2000.
   (d) This section shall also supersede Section 21353 for state
miscellaneous or state industrial members, for service not subject to
subdivision (c), who are employed by the state on or after January
1, 2000, and who do not elect under Section 21070.5 to be subject to
Second Tier benefits.
   (e) Operation and application of this section are subject to the
limitations set forth in Section 21251.13.
  SEC. 33.  Section 21362 of the Government Code is amended to read:

   21362.  (a) 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

   (b) 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.
   (c) 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.
   (d) 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.
   (e) This section shall not apply to state safety or state peace
officer/firefighter members.
   (f) With respect to patrol members, this section shall only apply
to patrol members who are not employed by the state on or after
January 1, 2000.
   (g) 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.
  SEC. 33.5.  Section 21362 of the Government Code is amended to
read:
   21362.  (a) 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

   (b) 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.  For local members who retire on or after January 1,
2000, the benefit shall not exceed 85 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 or local
member retiring on or after January 1, 1995, has service under this
section with both state and local agency employers, the higher
maximum shall apply and the additional benefit shall be funded by
increasing the member's pension payable with respect to the employer
for whom the member performed the service subject to the higher
maximum.
   (c) 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.
   (d) 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.
   (e) This section shall not apply to state safety or state peace
officer/firefighter members.
   (f) With respect to patrol members, this section shall only apply
to patrol members who are not employed by the state on or after
January 1, 2000.
   (g) 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.
  SEC. 34.  Section 21362.2 is added to the Government Code, to read:

   21362.2.  (a) The combined current and prior service pension for
state patrol members and for local safety members with respect to
local safety service rendered to a contracting agency that is subject
to the provisions of 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 3 percent of his or her final compensation at the age
of 50 years, multiplied by the number of years of patrol service or
local safety service subject to this section with which he or she is
credited at retirement.
   (b) 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 patrol members with respect to
service for all state employers under this section, the benefit shall
not exceed 90 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 patrol member has service under this section
with both state and local agency employers, the 90 percent limit
shall apply and the additional benefit shall be funded by increasing
the member's pension payable with respect to the state employer.
   (c) For patrol members employed by the state on or after January
1, 2000, this section shall supersede Section 21362.
   (d) This section shall not apply to state safety or state peace
officer/firefighter members.
   (e) This section shall not apply to any contracting agency nor its
employees 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 becomes operative, by
express provision in the contract making the contracting agency
subject to this section.  The operative date of this section for 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.
   (f) This section shall supersede Section 21362, 21363, 21363.1,
21366, 21368, 21369, or 21370, whichever is then applicable, with
respect to local safety members who retire after the date this
section becomes applicable to their respective employers.
   (g) 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.
   (h) Operation and application of this section is subject to the
limitations set forth in Section 21251.13.
  SEC. 35.  Section 21363 of the Government Code is amended to read:

   21363.  (a) 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

   (b) 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.
   (c) 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.
   (d) This section may be applied to related supervisory classes or
confidential positions for the respective bargaining units specified
in this section.
   (e) (1) 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.
   (2) 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.
   (3) 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.
   (4) 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.
   (5) 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.
   (6) With the exception of state peace officer/firefighter members
for service rendered for the legislative or judicial branch of
government, this section shall apply to any state peace
officer/firefighter member who is not employed by the state on or
after January 1, 2000.
   (f) This section shall be known as, and may be cited as the State
Peace Officers' and Fire Fighters' Retirement Act.
   (g) 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.
   (h) 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.
  SEC. 35.2.  Section 21363 of the Government Code is amended to
read:
   21363.  (a) 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

   (b) 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.
   (c) 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.
   (d) This section may be applied to related supervisory classes or
confidential positions for the respective bargaining units specified
in this section.
   (e) (1) 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.
   (2) 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.
   (3) 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.
   (4) 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.
   (5) 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.
   (6) With the exception of state peace officer/firefighter members
for service rendered for the legislative or judicial branch of
government, this section shall apply to any state peace
officer/firefighter member who is not employed by the state on or
after January 1, 2000.
   (f) This section shall be known as, and may be cited as the State
Peace Officers' and Fire Fighters' Retirement Act.
   (g) 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.
   (h) 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.  However, this section shall not apply to any local
safety member in the employ of an employer not subject to this
section on January 1, 2000.
  SEC. 35.4.  Section 21363 of the Government Code is amended to
read:
   21363.  (a) 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

   (b) 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 except as provided in Sections 21363.5 and
21363.6, the benefit shall not exceed 80 percent of final
compensation.  For local members who retire on or after January 1,
2000, the benefit shall not exceed 85 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 or local
member retiring on or after January 1, 1995, has service under this
section with both state and local agency employers including, but not
limited to, service subject to Section 21363.5 and 21363.6, the
higher maximum shall apply and the additional benefit, if any, shall
be funded by increasing the member's pension payable with respect to
the employer for whom the member performed the service subject to the
higher maximum.
   (c) 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.
   (d) This section may be applied to related supervisory classes or
confidential positions for the respective bargaining units specified
in this section.
   (e) (1) 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.
   (2) 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.
   (3) 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.
   (4) 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.
   (5) 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.
   (6) With the exception of state peace officer/firefighter members
for service rendered for the legislative or judicial branch of
government, this section shall apply to any state peace
officer/firefighter member who is not employed by the state on or
after January 1, 2000.
   (f) This section shall be known as, and may be cited as the State
Peace Officers' and Fire Fighters' Retirement Act.
   (g) 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.
   (h) 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.
  SEC. 35.6.  Section 21363 of the Government Code is amended to
read:
   21363.  (a) 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

   (b) 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 except as provided in Sections 21363.5 and
21363.6, the benefit shall not exceed 80 percent of final
compensation.  For local members who retire on or after January 1,
2000, the benefit shall not exceed 85 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 or local
member retiring on or after January 1, 1995, has service under this
section with both state and local agency employers including, but not
limited to, service subject to Section 21363.5 or 21363.6, the
higher maximum shall apply and the additional benefit, if any, shall
be funded by increasing the member's pension payable with respect to
the employer for whom the member performed the service subject to the
higher maximum.
   (c) 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.
   (d) This section may be applied to related supervisory classes or
confidential positions for the respective bargaining units specified
in this section.
   (e) (1) 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.
   (2) 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.
   (3) 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.
   (4) 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.
   (5) 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.
   (6) With the exception of state peace officer/firefighter members
for service rendered for the legislative or judicial branch of
government, this section shall apply to any state peace
officer/firefighter member who is not employed by the state on or
after January 1, 2000.
   (f) This section shall be known as, and may be cited as the State
Peace Officers' and Fire Fighters' Retirement Act.
   (g) 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.
   (h) 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.  However, this section shall not apply to any local
safety member in the employ of an employer not subject to this
section on January 1, 2000.
  SEC. 36.  Section 21363.1 is added to the Government Code, to read:

   21363.1.  (a) 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 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 or local safety member at the date of his
or her retirement to equal the fraction of 3 percent 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 or local safety service subject to this
section with which he or she is credited at retirement:


  Age at
Retirement                       Fraction
  50 ............................  .800
  50 1/4 ........................  .810
  50 1/2 ........................  .820
  50 3/4 ........................  .830
  51 ............................  .840
  51 1/4 ........................  .850
  51 1/2 ........................  .860
  51 3/4 ........................  .870
  52 ............................  .880
  52 1/4 ........................  .890
  52 1/2 ........................  .900
  52 3/4 ........................  .910
  53 ............................  .920
  53 1/4 ........................  .930
  53 1/2 ........................  .940
  53 3/4 ........................  .950
  54 ............................  .960
  54 1/4 ........................  .970
  54 1/2 ........................  .980
  54 3/4 ........................  .990
  55 and over ................... 1.000

   (b) 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 peace officer/firefighter members
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.  The 80 percent limit shall
apply to a state peace officer/firefighter member employed by the
state on or after January 1, 2000, who has service under this section
with both state and local agency employers and the additional
benefit shall be funded by increasing the member's pension payable
with respect to the state employer.
   (c) This section shall supersede Section 21363 for state peace
officer/firefighter members with respect to service rendered for the
legislative or judicial branch of government.
   (d) This section shall also supersede Section 21363 for state
peace officer/firefighter members, for service not subject to
subdivision (c), who are employed by the state on or after January 1,
2000.
   (e) This section shall not apply to any contracting agency nor its
employees 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 becomes operative, by
express provision in the contract making the contracting agency
subject to this section.  The operative date of this section for 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.
   (f) This section shall supersede Section 21363, 21366, 21368,
21369, or 21370, whichever is then applicable, with respect to local
safety members who retire after the date this section becomes
applicable to their respective employers.
   (g) 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.
   (h) 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.
   (i) Operation and application of this section are subject to the
limitations set forth in Section 21251.13.
  SEC. 37.  Section 21363.5 of the Government Code is amended to
read:
   21363.5.  (a) Notwithstanding Section 21363 or 21363.1, the
limitation on the service retirement benefit shall be 85 percent for
state peace officer/firefighter members in State Bargaining  Units 6
and 8 who retire on and after January 1, 1999.  This provision may
also be applied to state peace officer/firefighter members in related
supervisory or confidential positions, provided the Department of
Personnel Administration has approved this inclusion in writing to
the board.
   (b) On and after January 1, 2000, 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.
  SEC. 38.  Section 21363.6 of the Government Code is repealed.
  SEC. 39.  Section 21369 of the Government Code is amended to read:

   21369.  (a) 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 the age of 55 years, 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.
   (b) Upon retirement for service prior to attaining the age of 55
years, 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:


                                             The percent for
                                              each year of
                                             credited service
If the retirement age occurs at:                    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

   (c) 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.
   (d) This section shall not apply to a person whose effective date
of retirement is prior to July 1, 1971.
   (e) 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.
   (f) 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 subdivision 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.
   (g) With the exception of state safety members for service
rendered for the California State University, this section shall
apply to state safety members who are not employed by the state on or
after January 1, 2000.
   (h) 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.
  SEC. 39.5.  Section 21369 of the Government Code is amended to
read:
   21369.  (a) 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 the age of 55 years, 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.
   (b) Upon retirement for service prior to attaining the age of 55
years, 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:


                                             The percent for
                                              each year of
                                             credited service
If the retirement age occurs at:                    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

   (c) 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.  For local members who retire on or after January 1,
2000, the benefit shall not exceed 85 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 or local
member retiring on or after January 1, 1995, has service under this
section with both state and local agency employers, the higher
maximum shall apply and the additional benefit shall be funded by
increasing the member's pension payable with respect to the employer
for whom the member performed the service subject to the higher
maximum.
   (d) This section shall not apply to a person whose effective date
of retirement is prior to July 1, 1971.
   (e) 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.
   (f) 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  subdivision 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.
   (g) With the exception of state safety members for service
rendered for the California State University, this section shall
apply to state safety members who are not employed by the state on or
after January 1, 2000.
   (h) 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.
  SEC. 40.  Section 21369.1 is added to the Government Code, to read:

   21369.1. (a) The combined current and prior service pensions for
state safety members subject to this section with respect to state
safety service 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 safety 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 safety service
subject to this section with which he or she is credited at
retirement.


     Age at
   Retirement                                 Fraction
      50 ...................................   0.8500
      50 1/4 ...............................   0.8625
      50 1/2 ...............................   0.8750
      50 3/4 ...............................   0.8875
      51 ...................................   0.9000
      51 1/4 ...............................   0.9125
      51 1/2 ...............................   0.9250
      51 3/4 ...............................   0.9375
      52 ...................................   0.9500
      52 1/4 ...............................   0.9625
      52 1/2 ...............................   0.9750
      52 3/4 ...............................   0.9875
      53 ...................................   1.0000
      53 1/4 ...............................   1.0320
      53 1/2 ...............................   1.0630
      53 3/4 ...............................   1.0940
      54 ...................................   1.1250
      54 1/4 ...............................   1.1570
      54 1/2 ...............................   1.1880
      54 3/4 ...............................   1.2190
      55 and over ..........................   1.2500

   (b) For state safety members 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 section or 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 safety member employed by the state on or
after January 1, 2000, has service with both state and local agency
employers and other local agency service, 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.
   (c) This section shall supersede Section 21369 for state safety
members with respect to service rendered for the California State
University.
   (d) This section shall also supersede Section 21369 for state
safety members, for service not subject to subdivision (c), who are
employed by the state on or after January 1, 2000.
   (e) 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.
   (f) 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.
   (g) Operation and application of this section are subject to the
limitations set forth in Section 21251.13.
  SEC. 41.  Section 21372 of the Government Code is amended to read:

   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 or 21369.1 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 or 21369.1, as
applicable, with respect to all of his or her state safety service.

  SEC. 42.  Section 21373 of the Government Code is amended to read:

   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 or 21369.1,
as applicable, with respect  to all of his or her state safety
service.
  SEC. 43.  Section 21374 of the Government Code is amended to read:

   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  the age of 55 years, 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  the age of 35 years, 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 or 21369.1, as applicable,
with respect to all of his or her state safety service.
  SEC. 44.  Section 21403 of the Government Code is amended to read:

   21403.  Upon retirement for nonindustrial disability, a patrol
member or local safety member subject to Section 21362, 21362.2,
21363, or 21363.1 or a state peace officer/firefighter member who has
attained the age of 50 years, or a state safety member who has
attained the age of 55 years shall receive his or her service
retirement allowance.
  SEC. 45.  Section 21407 of the Government Code is amended to read:

   21407.  Upon retirement of a state peace officer/firefighter
member or a local safety member subject to Section 21363 or 21363.1
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.
  SEC. 46.  Section 21572 of the Government Code is amended to read:

   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
a 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) per month 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 that 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 22 years of age, 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.

   (h) On and after January 1, 2000, and until January 1, 2010, all
state members covered by this section shall be covered by the benefit
provided under Section 21574.7.  On and after January 1, 2010, all
state members not covered by Section 21573 or 21574.7 shall be
covered by this section.
  SEC. 46.5.  Section 21572 of the Government Code is amended to
read:
   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
a 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) per month 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, 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 that resulted in 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 and there is no surviving child, or if the surviving spouse dies
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, 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.

   (h) On and after January 1, 2000, and until January 1, 2010, all
state members covered by this section shall be covered by the benefit
provided under Section 21574.7.  On and after January 1, 2010, all
state members not covered by Section 21573 or 21574.7 shall be
covered by this section.
  SEC. 47.  Section 21573 of the Government Code is amended to read:

   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 a 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 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 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 that 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 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 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 the age of 62 years 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, in its original contract or by 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 that 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.
   (j) On and after January 1, 2000, and until January 1, 2010, all
state and school members covered by this section shall be covered by
the benefit provided under Section 21574.7.  On and after January 1,
2010, all state and school members not covered by Section 21572 or
21574.7 shall be covered by this section.
  SEC. 47.2.  Section 21573 of the Government Code is amended to
read:
   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
a 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 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 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 that 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 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 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 the age of 62 years 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, in its original contract or by 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 that 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.
   (j) On and after January 1, 2000, and until January 1, 2010, all
state and school members covered by this section shall be covered by
the benefit provided under Section 21574.7.  On and after January 1,
2010, all state and school members not covered by Section 21572 or
21574.7 shall be covered by this section.
   (k) This section shall not apply to any member in the employ of a
contracting agency not subject to this section on and after January
1, 2000.
  SEC. 47.4.  Section 21573 of the Government Code is amended to
read:
   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
a 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 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 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, 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 that resulted in death, shall be
paid three hundred fifty dollars ($350) 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 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 and there is no surviving child, or if the surviving spouse
dies 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 the age of 62 years 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, in its original contract or by 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 that 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.
   (j) On and after January 1, 2000, and until January 1, 2010, all
state and school members covered by this section shall be covered by
the benefit provided under Section 21574.7.  On and after January 1,
2010, all state and school members not covered by Section 21572 or
21574.7 shall be covered by this section.
  SEC. 47.6.  Section 21573 of the Government Code is amended to
read:
   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
a 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 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 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, 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 that resulted in death, shall be
paid three hundred fifty dollars ($350) 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 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 and there is no surviving child, or if the surviving spouse
dies 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 the age of 62 years 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, in its original contract or by 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 that 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.
   (j) On and after January 1, 2000, and until January 1, 2010, all
state and school members covered by this section shall be covered by
the benefit provided under Section 21574.7.  On and after January 1,
2010, all state and school members not covered by Section 21572 or
21574.7 shall be covered by this section.
   (k) This section shall not apply to any member in the employ of a
contracting agency not subject to this section on and after January
1, 2000.
  SEC. 48.  Section 21573.5 of the Government Code is repealed.
  SEC. 49.  Section 21574.7 is added to the Government Code, to read:

   21574.7.  (a) In lieu of benefits provided in Section 21571,
21572, 21573, or 21574, 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 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 a 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 employer, 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 one thousand five
hundred dollars ($1,500) per month if there is one child or one
thousand eight hundred dollars ($1,800) 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 seven hundred fifty dollars
($750) 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, 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 seven
hundred fifty dollars ($750) per month.
   (B) If there are two children, the children shall be paid one
thousand five hundred dollars ($1,500) per month divided equally
between them.
   (C) If there are three or more children, the children shall be
paid one thousand eight hundred dollars ($1,800) per month divided
equally among them.
   (3) A surviving spouse who has attained or attains the age of 60
years, and 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, shall be paid seven hundred fifty dollars ($750) 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 three hundred dollars
($300) 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 and there is no surviving child, or if the surviving spouse
dies 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 seven hundred fifty dollars ($750) 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 state and school members
effective on or after January 1,  2000.  All assets and liabilities
of employers 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 state and school
members employed by the state or a school employer.
   (e) The rate of contribution of an employer subject to this
section shall be calculated using a method determined by the board.
Surplus assets shall be applied to reduce the rate of contribution.
If a deficit exists, the rate of contribution shall be increased
until the deficit is paid.
   (f) On and after January 1, 2000, and until January 1, 2010, all
state employees and school members shall be covered by this section.

   (g) This section shall be repealed on January 1, 2010, unless a
later enacted statute, that becomes effective on or before January 1,
2010, deletes or extends that date.
  SEC. 50.  Section 21581 of the Government Code is amended to read:

   21581.  (a) 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.
   (b) Notwithstanding subdivision (a), the total monthly premium
required for Section 21574.7, as determined by the board, shall be
offset by the uniform amortization of surplus assets within this
account.  Member contributions shall be two dollars ($2) per month
until such time as the future required monthly premium exceeds four
dollars ($4), and the employer shall pay the difference between the
total required monthly premium and the member's contribution.  Once
the total required monthly premium exceeds four dollars ($4), the
member and the employer shall evenly share the required monthly
premium.
  SEC. 50.5.  Section 21581 of the Government Code is amended to
read:
   21581.  (a) 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.
   (b) Notwithstanding subdivision (a), the total monthly premium
required for Section 21574.5, as determined by the board, shall be
offset by the uniform amortization of surplus assets within this
account. If the total monthly premium is equal to, or less than, four
dollars ($4), the member contribution portion shall be two dollars
($2) per month and the employer shall pay the difference, if any.  If
the total monthly premium required exceeds four dollars ($4), the
member and the employer shall evenly share the total required monthly
premium.
   (c) Notwithstanding subdivision (a), the total monthly premium
required for Section 21574.7, as determined by the board, shall be
offset by the uniform amortization of surplus assets within this
account.  Member contributions shall be two dollars ($2) per month
until such time as the future required monthly premium exceeds four
dollars ($4), and the employer shall pay the difference between the
total required monthly premium and the member's contribution.  Once
the total required monthly premium exceeds four dollars ($4), the
member and the employer shall evenly share the required monthly
premium.
  SEC. 51.  Section 2.5 of this bill incorporates amendments to
Section 20391 of the Government Code proposed by both this bill and
AB 813.  It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2000, (2) each bill
amends Section 20391 of the Government Code, and (3) this bill is
enacted after AB 813, in which case Section 2 of this bill shall not
become operative.
  SEC. 52.  Section 12.5 of this bill incorporates amendments to
Section 20677 of the Government Code proposed by both this bill and
SB 401.  It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2000, (2) each bill
amends Section 20677 of the Government Code, and (3) this bill is
enacted after SB 401, in which case Section 12 of this bill shall not
become operative.
  SEC. 53.  Section 29.5 of this bill incorporates amendments to
Section 21337 of the Government Code proposed by both this bill and
SB 234.  It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2000, (2) each bill
affects Section 21337 of the Government Code, and (3) this bill is
enacted after SB 234, in which case Section 29 of this bill shall not
become operative.
  SEC. 54.  Section 33.5 of this bill incorporates amendments to
Section 21362 of the Government Code proposed by both this bill and
SB 339.  Except as provided in Section 55, it shall only become
operative if (1) both bills are enacted and become effective on or
before January 1, 2000, (2) each bill amends Section 21362 of the
Government Code, and (3) this bill is enacted after SB 339, in which
case Section 33 of this bill shall not become operative.
  SEC. 55.  Section 33.5 of this bill incorporates amendments to
Section 21362 of the Government Code proposed by both this bill and
SB 800.  Except as provided in Section 54, it shall only become
operative if (1) both bills are enacted and become effective on or
before January 1, 2000, (2) each bill amends Section 21362 of the
Government Code, and (3) this bill is enacted after SB 800, in which
case Section 33 of this bill shall not become operative.
  SEC. 56.  (a) Section 35.2 of this bill incorporates amendments to
Section 21363 of the Government Code proposed by both this bill and
AB 813.  It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2000, (2) each bill
amends Section 21363 of the Government Code, and (3) SB 339 and SB
800 is not enacted or as enacted do not amend that section, and (4)
this bill is enacted after AB 813, in which case Sections 35, 35.4,
and 35.6 of this bill shall not become operative.
   (b) Section 35.4 of this bill incorporates amendments to Section
21363 of the Government Code proposed by both this bill and SB 800.
Except as provided in subdivision (c), it shall only become operative
if (1) both bills are enacted and become effective on or before
January 1, 2000, (2) each bill amends Section 21363 of the Government
Code, (3) AB 813 is not enacted or as enacted does not amend that
section, and (4) this bill is enacted after SB 800 in which case
Sections 35, 35.2, and 35.6 of this bill shall not become operative.

   (c) Section 35.4 of this bill incorporates amendments to Section
21363 of the Government Code proposed by this bill and SB 339.
Except as provided in subdivision (b), it shall only become operative
if (1) both bills are enacted and become effective on or before
January 1, 2000, (2) each bill amends Section 21363 of the Government
Code, (3) AB 813 is not enacted or as enacted does not amend that
section, and (4) this bill is enacted after SB 339, in which case
Sections 35, 35.2, and 35.6 of this bill shall not become operative.

   (d) Section 35.6 of this bill incorporates amendments to Section
21363 of the Government Code proposed by this bill, AB 813, SB 339,
and SB 800.  It shall only become operative if (1) this bill and AB
813 and either SB 339 or SB 800, or both, are enacted and become
effective on or before January 1, 2000, (2) all of the enacted bills
amend Section 21363 of the Government Code, and (3) this bill is
enacted last, in which case Sections 35, 35.2, and 35.4 of this bill
shall not become operative.
  SEC. 57.  Section 39.5 of this bill incorporates amendments to
Section 21369 of the Government Code proposed by both this bill and
SB 339.  Except as provided in Section 58, it shall only become
operative if (1) both bills are enacted and become effective on or
before January 1, 2000, (2) each bill amends Section 21369 of the
Government Code, and (3) this bill is enacted after SB 339, in which
case Section 39 of this bill shall not become operative.
  SEC. 58.  Section 39.5 of this bill incorporates amendments to
Section 21369 of the Government Code proposed by both this bill and
SB 800.  Except as provided in Section 57, it shall only become
operative if (1) both bills are enacted and become effective on or
before January 1, 2000, (2) each bill amends Section 21369 of the
Government Code, and (3) this bill is enacted after SB 800, in which
case Section 39 of this bill shall not become operative.
  SEC. 59.  Section 46.5 of this bill incorporates amendments to
Section 21572 of the Government Code proposed by both this bill and
AB 232.  It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2000, (2) each bill
amends Section 21572 of the Government Code, and (3) this bill is
enacted after AB 232, in which case Section 46 of this bill shall not
become operative.
  SEC. 60.  (a) Section 47.2 of this bill incorporates amendments to
Section 21573 of the Government Code proposed by both this bill and
AB 99.  It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2000, (2) each bill
amends Section 21573 of the Government Code, and (3) AB 232 is not
enacted or as enacted does not amend that section, and (4) this bill
is enacted after AB 99, in which case Sections 47, 47.4, and 47.6 of
this bill shall not become operative.
   (b) Section 47.4 of this bill incorporates amendments to Section
21573 of the Government Code proposed by both this bill and AB 232.
It shall only become operative if (1) both bills are enacted and
become effective on or before January 1, 2000, (2) each bill amends
Section 21573 of the Government Code, (3) AB 99 is not enacted or as
enacted does not amend that section, and (4) this bill is enacted
after AB 232 in which case Sections 47, 47.2, and 47.6 of this bill
shall not become operative.
   (c) Section 47.6 of this bill incorporates amendments to Section
21573 of the Government Code proposed by this bill, AB 99, and AB
232.  It shall only become operative if (1) all three bills are
enacted and become effective on or before January 1, 2000, (2) all
three bills amend Section 21573 of the Government Code, and (3) this
bill is enacted after AB 99 and AB 232, in which case Sections 47,
47.2, and 47.4 of this bill shall not become operative.
  SEC. 61.  Section 50.5 of this bill incorporates amendments to
Section 21581 of the Government Code proposed by both this bill and
AB 99.  It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2000, (2) each bill
amends Section 21581 of the Government Code, and (3) this bill is
enacted after AB 99, in which case Section 50 of this bill shall not
become operative.