BILL NUMBER: AB 813 CHAPTERED 10/10/99 CHAPTER 785 FILED WITH SECRETARY OF STATE OCTOBER 10, 1999 APPROVED BY GOVERNOR OCTOBER 7, 1999 PASSED THE ASSEMBLY SEPTEMBER 10, 1999 PASSED THE SENATE SEPTEMBER 9, 1999 AMENDED IN SENATE SEPTEMBER 7, 1999 AMENDED IN SENATE JUNE 22, 1999 INTRODUCED BY Committee on Public Employees, Retirement and Social Security (Correa (Chair), Firebaugh, Honda, Knox, and Pescetti) FEBRUARY 24, 1999 An act to amend Sections 20350, 20391, 21073.5, 21201, 21357, 21363, 21370, 21461, 21465, 21497, 21507, 21751, 22774, 22970.2, 75101, 75520, 75521, and 75523 of, to add Section 22013.77 to, and to repeal Sections 20417, 20736, and 20992 of, the Government Code, relating to retirement. LEGISLATIVE COUNSEL'S DIGEST AB 813, Committee on Public Employees, Retirement and Social Security. Public Employees' and Judges' Retirement Systems: benefits: administration. (1) Under the Public Employees' Retirement Law, if a member retires from both the Public Employees' Retirement System and from a county retirement system, the member's highest final compensation from either system may be used to calculate his or her retirement allowance if the member retires from both systems concurrently. Existing law also provides that if a member on deferred retirement from PERS retires from a county retirement system between the ages of 50 and 55, when that member subsequently becomes eligible to retire from PERS, the member shall be deemed to have retired from both systems concurrently for purposes of computing final compensation. This bill would instead provide that when a member on deferred retirement from PERS retires, at any eligible age, from a reciprocal county retirement system, he or she shall be deemed to have retired from both systems concurrently for purposes of computing final compensation. (2) Under existing law, if a member of the Public Employees' Retirement System goes on an unpaid or military leave of absence for 6 or more months, the member can request a refund of his or her accumulated contributions. This bill would repeal these provisions. (3) Under the Public Employees' Retirement Law, a member of State Bargaining Unit 6 who retires on or after January 1, 1999, may elect to receive a lump-sum distribution of up to 50% of the actuarial present value of his or her retirement allowance. Existing law also provides a formula for calculation of retirement benefits for a member who retires after being reinstated from service or disability retirement. This bill would provide that the lump-sum distribution shall be not less than 20% of the actuarial present value of the member's retirement allowance and would also specify that the portion of the member's retirement allowance that is subject to survivor continuance benefits may not be distributed as, or a portion of, the lump-sum distribution. The bill would also make the formula for retirement benefits following reinstatement applicable to a member who retires following reinstatement from a service or disability retirement when the member elected the lump-sum distribution. (4) Under the Public Employees' Retirement Law, contracting public agencies may elect one of specified formulas for calculation of retirement allowances for local safety members. This bill would provide that 2 of the specified formulas shall not be available to local safety employees of public agencies who enter into contracts after January 1, 2000. (5) Existing law, the Public Employees' Retirement Law, provides that those officers and employees who are members of State Bargaining Unit 16 or 19 and whose classifications or positions are found to meet specified state safety criteria shall be included within the classification of state safety officers, if the Department of Personnel Administration has agreed to their inclusion. This bill would authorize those officers and employees who are so included in that classification, and specified retirees and beneficiaries, to elect to receive credit under that classification for their past Second Tier retirement service, as specified. (6) The Judges' Retirement System II Law prescribes specified annual cost-of-living increases for the monthly service retirement allowances of retired judges and provides that a judge's account is credited monthly with interest at a rate equal to the net earning rate achieved by the retirement system fund on its investments during the preceding fiscal year. This bill would provide those cost-of-living increases for judges' disability retirement allowances, clarify that the interest rate shall not be less than zero, and make other technical changes. (7) Under the Public Employees' Medical and Hospital Care Act, the member of the Board of Administration of the Public Employees' Retirement System who is an officer of a life insurer may not vote on whether the board shall approve a health benefit plan or contract with a carrier. This bill would permit that board member to vote on those matters so long as he or she has no financial interest therein, as specified. (8) This bill would make other technical changes. (9) The bill would incorporate additional changes to Section 20391 of the Government Code, made by this bill and SB 400 to take effect only if both bills are enacted and this bill is enacted last. (10) The bill would incorporate additional changes to Section 21363 of the Government Code, made by this bill and SB 400 and SB 800 to take effect only if this bill and either or both of the other bills are enacted and this bill is enacted last. (11) The bill would incorporate additional changes to Section 21370 of the Government Code, made by this bill and SB 800 to take effect only if both bills are enacted and this bill is enacted last. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 20350 of the Government Code is amended to read: 20350. Notwithstanding Section 20638, if a member on deferred retirement from this system is eligible to retire for service from a reciprocal retirement system and does so retire prior to the time the member becomes entitled to retire under this system, his or her retirement shall be deemed a concurrent retirement for purposes of computing final compensation under Section 20638. 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. Any person so designated may elect, within 90 days of notification by the board, to remain subject to the service retirement benefit and normal rate of contribution applicable prior to July 3, 1984, by filing an irrevocable notice of election with the board. A member who so elects shall be subject to the reduced benefit factors specified in Section 21353 only for service also included in the federal system. (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. A member who is reclassified from state miscellaneous to state peace officer/firefighter pursuant to this subdivision 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 election with the board within 90 days of notification by the board. A member who so elects shall be subject to the reduced benefit factors specified in Section 21353 only for service included in the federal system. 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 20417 of the Government Code is repealed. SEC. 4. Section 20736 of the Government Code is repealed. SEC. 5. Section 20992 of the Government Code is repealed. SEC. 6. Section 21073.5 of the Government Code is amended to read: 21073.5. (a) 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 at any time while he or she is in the employment of the state. Upon becoming subject to Section 21353.5, the active member may elect to have his or her past Second Tier service credited under Section 21353.5. (b) (1) Notwithstanding any other provision of this article, a member designated as a state safety member pursuant to Section 20405.1 or 20405.3 may elect to have past Second Tier service subject to Section 21076 or 21077 credited under Section 21353.5. This election may be made at any time while the member is employed by the state, subject to election procedures to be established and communicated by the board. (2) The election described in paragraph (1) shall also be provided to a member designated as a state safety member pursuant to Section 20405.1 or 20405.3 who retired before the date the election was actually made available by the board. (3) The election described in paragraph (1) shall also be provided to the beneficiary eligible for a continuing allowance upon the death of a member, provided the member had been designated as a state safety member pursuant to Section 20405.1 or 20405.3 but had died before making the election that would have been provided by the board. (4) The election described in paragraph (2) or (3) shall be made within 60 days after the mailing date on the election notice sent by the board to the retired member or the member's beneficiary. (c) A member or beneficiary 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. SEC. 7. Section 21201 of the Government Code is amended to read: 21201. When any person is reinstated from industrial disability retirement under Sections 21191 and 21197, his or her retirement allowance shall be canceled immediately, and he or she shall become a member of this system as of the date of reinstatement. His or her individual account shall be credited with an amount that is the actuarial equivalent of his or her annuity at the date of reinstatement, not to exceed the amount of his or her accumulated contributions as it was at the date of retirement. Upon subsequent retirement, the board shall resume the payment of his or her previous industrial disability retirement allowance using the highest compensation earnable during any period of membership, notwithstanding Section 20036, to recalculate the industrial disability retirement allowance. The member shall receive, in addition to the disability retirement allowance from the employment in which he or she was granted the industrial disability retirement, an annuity purchased with his or her accumulated normal contributions made in respect to other employment covered by this system. If the member is qualified for service retirement, he or she shall receive his or her service retirement allowance, in lieu of the industrial retirement allowance, if the service retirement allowance is greater. SEC. 8. Section 21357 of the Government Code is amended to read: 21357. (a) For a member reinstated from service retirement or partial service retirement, the current service pension, or current and prior service pensions, as the case may be, upon his or her service retirement subsequent to the reinstatement, shall be the sum of (1) a current service pension calculated on the basis of service rendered after reinstatement in accordance with the formula applicable to him or her in that service and membership, plus, (2) if the subsequent retirement occurs before he or she renders, after his or her reinstatement, at least one year of state service credited under this system, or if the subsequent service or disability retirement occurs after his or her reinstatement from service or disability retirement pursuant to an election under Section 21465 or 21465.5, his or her current service pension, or current and prior service pensions, as the case may be, as it was prior to his or her reinstatement, adjusted for any service on which the pension was based that was included in coverage of the federal system during reinstatement according to the formula applicable to the service in employment for which he or she was retired, and further adjusted according to any change after reinstatement in the provisions governing the calculation of his or her pension that would have applied to him or her had he or she continued in retirement but been subject to the formula applied in the first adjustment; or, for state miscellaneous and state industrial service subject to Section 21076, in lieu of (2), plus (3) a current service pension, or current and prior service pensions, as the case may be, as it would have been prior to his or her reinstatement under the formula applicable to Section 21076, adjusted for any service on which the pension was based that was included in coverage of the federal system during reinstatement according to the formula applicable to the service in employment for which he or she was retired, and further adjusted according to any change after reinstatement in the provisions governing the calculations of his or her pension that would have applied to him or her had he or she continued in retirement and been subject to the formula applicable to Section 21076, or if he or she has rendered one year or more of state service after reinstatement, in lieu of (2) or (3), plus (4), a current service pension based on current service rendered prior to reinstatement, calculated on the basis of the formula currently applicable to the employment in which the service was rendered but on the basis of an age taken to the preceding completed quarter year but not less than the minimum retirement age applicable to him or her at his or her last retirement and determined by deducting from his or her age at his or her subsequent retirement, the aggregate time during which he or she was under retirement. For a member reinstated from nonindustrial disability retirement, the current service pension upon his or her service retirement after attaining an age one year less than the minimum age at which he or she could have retired without an actuarial discount because of age in the employment from which he or she was last retired, or upon his or her disability retirement after attaining the minimum age, and subsequent to reinstatement, shall be calculated in the manners described in the preceding sentence, but the age determined upon subsequent retirement after rendering at least one year of state service credited under this system shall not be taken at less than one year less than the minimum age if the subsequent retirement is for service, or the minimum age if the retirement is for disability. (b) The current service pension otherwise payable under this section to a member whose allowance prior to reinstatement was paid pursuant to his or her election under Section 21461 shall be reduced by the actuarial equivalent, on the date of retirement subsequent to reinstatement, of the amount (converted as below), if any, by which: (1) The total amount paid in the period during which a temporary annuity was included in the payments, reduced by the total amount that would have been payable during that period had the election not been made, exceeds (2) The excess of the total amount that would have been payable, had the election not been made, during the time subsequent to that period and prior to reinstatement, over the total amount actually paid during that time. The amount determined by the above formula shall be converted to an amount equaling the actuarial equivalent on the date of reinstatement and this latter amount shall be the basis of the actuarial equivalent on the date of retirement subsequent to reinstatement. Actuarial equivalents required by this section shall be based on the interest rate and mortality tables in use by this system on the date of retirement subsequent to reinstatement. (c) Notwithstanding this section, or any other provision of this part, the current service pension payable to any member subject to this section who rendered one year or more of state service credited under this system after reinstatement on retirement for service subsequent to reinstatement from service retirement for any credited service for which a current service pension was paid prior to reinstatement shall not be less than the current service pension that would be payable on the date of the subsequent retirement had the member not been reinstated. For state miscellaneous and state industrial service subject to Section 21076, the current service pension payable for any credited service for which a current service pension was paid prior to reinstatement shall not be less than the current service pension that would have been payable on the date of the subsequent retirement had the member's retirement been subject to the formula under Section 21076 and had not been reinstated, adjusted, however, by any reduction under this section because of an election under Section 21461 and, for any service so credited that was included in coverage of the federal system during reinstatement, according to the formula applicable to the service in employment from which he or she was retired. SEC. 9. 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) This section shall not apply to a person whose effective date of retirement is prior to the operative date of this section with respect to the bargaining unit of the person. (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. 9.2. 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 Legislature or judicial branch of government, this section shall apply to state peace officer/firefighter members who are 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. 9.4. 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 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) This section shall not apply to a person whose effective date of retirement is prior to the operative date of this section with respect to the bargaining unit of the person. (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. 9.6. 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 Legislature or judicial branch of government, this section shall apply to state peace officer/firefighter members who are 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. 10. Section 21370 of the Government Code is amended to read: 21370. (a) The combined prior and current service pension for local safety members with respect to service to a contracting agency subject to this section, upon retirement after attaining 56 years of age, is a pension derived from contributions of an employer sufficient, when added to that portion of the service retirement annuity that is derived from the accumulated normal contributions of the member at the date of his or her retirement, to equal one-fiftieth of his or her final compensation set forth opposite his or her age at retirement taken to the preceding completed quarter year in the following table, multiplied by the number of years of service credited to him or her as a local safety member subject to this section at retirement. (b) Upon retirement for service prior to attaining 56 years of age, the percentage of final compensation payable for each year of credited service that is subject to this section shall be the product of 2 percent multiplied by the factor set forth in the following table for the actual age at retirement: The percent for each year of credited service If retirement occurs at age: is: 50 ................................ .8565 50 1/4 ............................ .8650 50 1/2 ............................ .8740 50 3/4 ............................ .8830 51 ................................ .8920 51 1/4 ............................ .9020 51 1/2 ............................ .9120 51 3/4 ............................ .9222 52 ................................ .9330 52 1/4 ............................ .9410 52 1/2 ............................ .9490 52 3/4 ............................ .9570 53 ................................ .9650 53 1/4 ............................ .9675 53 1/2 ............................ .9700 53 3/4 ............................ .9725 54 ................................ .9750 54 1/4 ............................ .9810 54 1/2 ............................ .9870 54 3/4 ............................ .9935 55 ................................ 1.0000 55 1/4 ............................ 1.0435 55 1/2 ............................ 1.0870 55 3/4 ............................ 1.1310 56 ................................ 1.1750 (c) This section shall apply only to local police officers and county peace officers who are local safety members. (d) This section shall not apply to persons whose effective date of retirement is prior to January 1, 1985. (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 paragraph shall not apply to a member who retires after the date upon which coverage under the federal system of persons in his or her employment terminates. (g) In no event shall the total pension for all service under this section exceed an amount that, when added to the service retirement annuity related to the service, equals 75 percent of final compensation. If the pension relates to service for more than one employer and would otherwise exceed the maximum, the pension payable with respect to each employer shall be reduced in the same proportion as the allowance based on service to the employer bears to the total allowance computed as though there were no limit, so that the total of the pensions shall equal the maximum. (h) This section shall only apply as an optional contributory retirement formula for this system for local safety groups whose group participated in Federal Old Age and Survivors' Insurance provisions of the Social Security Act on April 1983. (i) This section shall not apply to a contracting agency nor its employees until the agency and the representative employee organization agree by memorandum of understanding to be subject to it by amendment to its contract made in the manner prescribed for approval of contracts. It shall also be required that the representative employee organizations agree to be subject to this provision. (j) The operative date of this section with respect to a local safety member shall be the effective date of the amendment to the employer's contract electing to be subject to this section. 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. 10.5. Section 21370 of the Government Code is amended to read: 21370. (a) The combined prior and current service pension for local safety members with respect to service to a contracting agency subject to this section, upon retirement after attaining 56 years of age, is a pension derived from contributions of an employer sufficient, when added to that portion of the service retirement annuity that is derived from the accumulated normal contributions of the member at the date of his or her retirement, to equal one-fiftieth of his or her final compensation set forth opposite his or her age at retirement taken to the preceding completed quarter year in the following table, multiplied by the number of years of service credited to him or her as a local safety member subject to this section at retirement. (b) Upon retirement for service prior to attaining 56 years of age, the percentage of final compensation payable for each year of credited service that is subject to this section shall be the product of 2 percent multiplied by the factor set forth in the following table for the actual age at retirement: The percent for each year of credited service If retirement occurs at age: is: 50 ................................ .8565 50 1/4 ............................ .8650 50 1/2 ............................ .8740 50 3/4 ............................ .8830 51 ................................ .8920 51 1/4 ............................ .9020 51 1/2 ............................ .9120 51 3/4 ............................ .9222 52 ................................ .9330 52 1/4 ............................ .9410 52 1/2 ............................ .9490 52 3/4 ............................ .9570 53 ................................ .9650 53 1/4 ............................ .9675 53 1/2 ............................ .9700 53 3/4 ............................ .9725 54 ................................ .9750 54 1/4 ............................ .9810 54 1/2 ............................ .9870 54 3/4 ............................ .9935 55 ................................ 1.0000 55 1/4 ............................ 1.0435 55 1/2 ............................ 1.0870 55 3/4 ............................ 1.1310 56 ................................ 1.1750 (c) This section shall apply only to local police officers and county peace officers who are local safety members. (d) This section shall not apply to persons whose effective date of retirement is prior to January 1, 1985. (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 paragraph shall not apply to a member who retires after the date upon which coverage under the federal system of persons in his or her employment terminates. (g) For members who retire prior to January 1, 2000, in no event shall the total pension for all service under this section exceed an amount that, when added to the service retirement annuity related to the service, equals 75 percent of final compensation. For members who retire on or after January 1, 2000, the allowance shall not exceed 85 percent of final compensation. If the pension relates to service for more than one employer and would otherwise exceed the maximum, the pension payable with respect to each employer shall be reduced in the same proportion as the allowance based on service to the employer bears to the total allowance computed as though there were no limit, so that the total of the pensions shall equal the maximum. (h) This section shall only apply as an optional contributory retirement formula for this system local safety groups whose group participated in Federal Old Age and Survivors' Insurance provisions of the Social Security Act on April 1983. (i) This section shall not apply to a contracting agency nor its employees until the agency and the representative employee organization agree by memorandum of understanding to be subject to it by amendment to its contract made in the manner prescribed for approval of contracts. It shall also be required that the representative employee organizations agree to be subject to this provision. (j) The operative date of this section with respect to a local safety member shall be the effective date of the amendment to the employer's contract electing to be subject to this section. 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. 11. Section 21461 of the Government Code is amended to read: 21461. (a) A member retiring for service may elect to have the actuarial equivalent of his or her unmodified service retirement allowance paid in two parts as follows: (1) A temporary annuity in an amount specified by the member but which shall not result in a reduction to his or her unmodified allowance by more than 50 percent. (2) A life income consisting of his or her service retirement annuity plus the pension provided by the actuarial value of his or her current and prior service pensions remaining after providing the temporary annuity in paragraph (1). (b) The temporary annuity under subdivision (a) shall not be subject to further optional settlement under this article and shall be payable monthly as an addition to the member's monthly life income beginning on his or her effective date of retirement and continuing until the member reaches age 591/2 or any whole age between ages 60 and 68, as designated by the member at the time of his or her retirement. If his or her death occurs prior to that age, the commuted value of any remaining installments shall be paid to his or her designated beneficiary in a lump sum. SEC. 12. Section 21465 of the Government Code is amended to read: 21465. Optional settlement 5 consists of a partial distribution of the actuarial present value of the portion, as specified in this section, of the member's unmodified monthly allowance, as prescribed in Section 21363 or 21403. The actuarial present value shall be based upon the investment return and postretirement mortality assumptions adopted by the board for that purpose. The member may elect to receive the actuarial present value of no less than 20 percent and no more than 50 percent of his or her unmodified allowance. The member may elect to receive the remaining portion of the unmodified allowance, not distributed as a lump sum, under one of the settlements specified in this article for the remainder of his or her lifetime and thereafter to his or her designated beneficiary, unless this amount is solely limited to the survivor continuance portion. Under no circumstances shall the portion of the unmodified allowance equivalent to the survivor continuance pursuant to Section 21624 be distributed as, of, the lump sum. Under no circumstances shall the benefits provided under this section exceed the benefits that would have otherwise been provided under any other section in this article. This section shall only apply to state peace officer/firefighter members in State Bargaining Unit 6 who retire on and after January 1, 1999, as well as to state peace officer/firefighter members in related supervisory and confidential positions, provided the Department of Personnel Administration has approved their inclusion. SEC. 13. Section 21497 of the Government Code is amended to read: 21497. If the total value of the benefit to be paid pursuant to Section 21493, 21494, or 21506 is less than an amount determined by the board, the benefit may be paid to the first member of the entitled class of beneficiaries who files a claim. If the total value of the benefit pursuant to any of these sections exceeds the amount established by the board but the number of qualifying beneficiaries under these sections is such that any individual benefit will be less than the amount established by the board, the board shall limit the number of beneficiaries so that no individual's benefit will be less than the amount established by the board. The board shall determine the recipients on the basis of the order in which claims are made. SEC. 14. Section 21507 of the Government Code is amended to read: 21507. Any lump-sum benefit, or any uncashed lump-sum death benefit warrant, payable by this system to a beneficiary shall be paid to the estate of the beneficiary if he or she dies prior to payment of the benefit. The benefit may be paid to a representative of the deceased beneficiary's estate, upon demonstration by court documents that the person is authorized to act in that capacity. If the estate does not require probate, and the deceased person was the trustor of a trust, benefits may, in the judgment of the board, be paid to the trustee as named in the trust. If the estate is not probated, and the beneficiary was not the trustor of a trust, benefits shall be paid to the beneficiary's surviving next of kin, in the order specified in Section 21493. SEC. 15. Section 21751 of the Government Code is amended to read: 21751. The definitions in Part 3 (commencing with Section 20000) shall apply to this part. The following definition shall also govern the interpretation of this part: "Participating agency" means any public agency that meets the criteria for becoming a contracting agency in this system pursuant to Chapter 5 (commencing with Section 20460) of Part 3, but that has not elected to participate in this system as a contracting agency, and that elects to contract with the board to participate in the replacement benefit program administered pursuant to this part by the board. SEC. 16. Section 22013.77 is added to the Government Code, to read: 22013.77. "Policeman," as used in this part, also includes persons designated as peace officers by subdivision (e) of Section 20391 for the purposes of Section 218(d)(5)(A) of Title 42 of the United States Code. SEC. 17. Section 22774 of the Government Code is amended to read: 22774. The board shall, in accordance with this part, approve health benefits plans and may contract with carriers offering health benefits plans. Irrespective of the provisions of Sections 1090 and 1091 of this code, the board member who is an officer of a life insurer may participate in all board activities in administering the provisions of this part, except that he or she shall not vote on the question of whether a contract should be entered into or approval should be given concerning any plan in which the board member has a financial interest, as defined in the Political Reform Act of 1974 (Title 9 (commencing with Section 81000)). SEC. 18. Section 22970.2 of the Government Code, as added by Senate Bill 522 of the 1999-2000 Regular Session, is amended to read: 22970.2. The design and administration of the Supplemental Contributions Program shall conform with the applicable provisions of Title 26 of the United States Code and the Revenue and Taxation Code. SEC. 19. Section 75101 of the Government Code is amended to read: 75101. The Controller shall at the end of each month ascertain the aggregate amount of the annual salaries of judges covered by the system, and out of the General Fund he or she shall transfer monthly into the Judges' Retirement Fund a sum equal to 8 percent of one-twelfth of the aggregate amount of those salaries. SEC. 20. Section 75520 of the Government Code is amended to read: 75520. (a) A judge shall, monthly, accrue monetary credits equal to 18 percent of the judge's monthly salary. (b) To the total monetary credits in each judge's account, an additional amount shall be credited monthly at a rate, not less than zero, equal to the annual net earnings rate achieved by the Judges' Retirement System II Fund on its investments of moneys in the Judges' Retirement System II Fund during the preceding fiscal year. SEC. 21. Section 75521 of the Government Code is amended to read: 75521. (a) A judge who leaves judicial office before accruing at least five years of service shall be paid the amount of his or her contributions to the system, and no other amount. (b) A judge who leaves judicial office after accruing five or more years of service and who is not eligible to elect to retire under Section 75522 shall be paid the amount of his or her monetary credits determined pursuant to Section 75520, including the credits added under subdivision (b) of that section computed to the last day of the month preceding the date of distribution, and no other amount. (c) Judges who leave office as described in subdivision (b) are "retired judges" for purposes of assignment pursuant to Article 2 (commencing with Section 66540) of Chapter 2 of this division and are eligible for benefits provided under Section 22816.31. (d) After a judge has withdrawn his or her accumulated contributions or the amount of his or her monetary credits upon leaving judicial office, the service shall not count in the event he or she later becomes a judge again, until he or she pays into the Judges' Retirement System II Fund the amount withdrawn, plus interest thereon at the rate of interest then being required to be paid by members of the Public Employees' Retirement System under Section 20750 from the date of withdrawal to the date of payment. SEC. 22. Section 75523 of the Government Code is amended to read: 75523. (a) The retirement allowance of retired judges who have elected to receive a monthly allowance under subdivision (d) of Section 75522 or who have retired for disability and are receiving an allowance under Section 75560.4 shall be adjusted effective in January of each year after a judge has been retired under this chapter for more than six months, to reflect any increase in the cost of living occurring after January 1 of the immediately preceding fiscal year. The United States city average of the "Consumer Price Index for all Urban Consumers," as published by the United States Bureau of Statistics, shall be used as the basis for determining changes in the cost of living. (b) No adjustment shall be made unless the cost-of-living increase equals or exceeds 1 percent. The allowance shall not be increased more than 3 percent in a single year. Increases shall be compounded. (c) The allowance shall not be decreased as a result of the cost-of-living adjustment. (d) The board shall provide, by rule, any details needed for the implementation of this section. SEC. 23. Section 6 of this bill shall not become operative if either Senate Bill 399 or Senate Bill 400 of the 1999-2000 Regular Session is enacted and becomes operative. SEC. 24. Section 2.5 of this bill incorporates amendments to Section 20391 of the Government Code proposed by both this bill and SB 400. 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 SB 400, in which case Section 2 of this bill shall not become operative. SEC. 25. (a) Section 9.2 of this bill incorporates amendments to Section 21363 of the Government Code proposed by both this bill and SB 400. 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) SB 800 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after SB 400, in which case Sections 9, 9.4, and 9.6 of this bill shall not become operative. (b) Section 9.4 of this bill incorporates amendments to Section 21363 of the Government Code proposed by both this bill and SB 800. 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) SB 400 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after SB 800, in which case Sections 9, 9.2, and 9.6 of this bill shall not become operative. (c) Section 9.6 of this bill incorporates amendments to Section 21363 of the Government Code proposed by this bill, SB 400, and SB 800. 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 21363 of the Government Code, and (3) this bill is enacted after SB 400, and SB 800, in which case Sections 9, 9.2, and 9.4 of this bill shall not become operative. SEC. 26. Section 10.5 of this bill incorporates amendments to Section 21370 of the Government Code proposed by both this bill and SB 800. 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 21370 of the Government Code, and (3) this bill is enacted after SB 800, in which case Section 10 of this bill shall not become operative. SEC. 27. Section 18 of this bill shall become operative only if Senate Bill 522 of the 1999-2000 Regular Session is enacted and becomes operative on or before January 1, 2000 and, as enacted, adds Section 22970.2 to the Government Code.