BILL NUMBER: SB 634 INTRODUCED
BILL TEXT
INTRODUCED BY Committee on Public Employment and Retirement (Correa
(chair), Ashburn (vice chair), Wiggins, Padilla, Benoit, Liu,
Ducheny)
FEBRUARY 27, 2009
An act to amend Sections 22115, 22515, 22661, 22713, 22801, 22802,
22803, 22805, 22820, 22821, 22822, 22823, 22826, 23200, 23201,
23859, 24001, 24101, 24216, 24216.5, 24216.6, 24301, 24309, 25007,
25010, 25011.1, 25017, and 25020 of, to amend the heading of Part 14
(commencing with Section 26000) of Division 1 of Title 1 of, and to
add Section 25008.5 to, the Education Code, relating to teachers'
retirement.
LEGISLATIVE COUNSEL'S DIGEST
SB 634, as introduced, Committee on Public Employment and
Retirement. State Teachers' Retirement System.
(1) Under the State Teachers' Retirement Law, the compensation
earnable for a member of the State Teachers' Retirement System
employed by a community college prior to July 1, 1996, is defined by
a specified number of hours based on provisions in effect on June 30,
1996. That law permits the Teachers' Retirement Board to establish
and implement certain factors and assumptions to determine the
compensation earnable of a member employed by a community college
prior to July 1, 1996, including when the community college
subsequently acts to reduce the minimum standard for full time, as
specified.
This bill would clarify that these provisions apply when the
community college subsequently acts to reduce the minimum standard
for full time for the class of employees, as specified.
(2) That law authorizes substitute teachers and other part-time
employees who perform creditable service, as defined, to elect
membership in the Defined Benefit Program of the State Teachers'
Retirement Plan.
This bill would provide that membership election is irrevocable
and remains in effect until the member terminates employment.
(3) That law prescribes a comprehensive system of rights and
benefits for its members and specifically permits a court, upon legal
separation or dissolution of marriage, to award to a nonmember
spouse, as defined to include a member's registered domestic partner,
a separate account under the Defined Benefit Program pursuant to
that person's community property interest. The nonmember spouse who
is awarded a separate account has the right to a refund of the
accumulated retirement contributions in the account under the Defined
Benefit Program, and a return of the Defined Benefit Supplement
account balance, of the nonmember spouse.
This bill would provide an exception for nonmember domestic
partners in connection with federal tax law limitations.
(4) That law authorizes the governing board of a school district
or a community college district or a county superintendent of schools
to establish regulations that allow an employee who is a member of
the Defined Benefit Program to reduce his or her workload and receive
the service credit for full-time work. Among other things, the
regulations must include a requirement that the member have at least
10 years of credited service, including 5 years of credited service
for full-time employment immediately preceding the reduction in
workload.
This bill would revise the regulation to require the member to
have at least 10 years of credited service prior to the reduction in
workload and to have, in addition, 5 years of credited service for
full-time employment immediately preceding the reduction in workload.
(5) That law permits a member of the Defined Benefit Program to
elect to purchase additional service credit, including out-of-state
service credit, if specified contributions are paid to the State
Teachers' Retirement System. That law provides that regular interest
shall be charged on all contributions from the end of the school year
on which the contributions were based to the date of payment. Among
other things, the law permits the member to purchase as additional
service credit time spent on approved family care or medical leave of
up to 4 months in any 12-month period, as specified.
This bill would instead add regular interest, as specified, only
when the member is not employed to perform creditable service subject
to coverage by the Defined Benefit Program on the date of the
request to purchase additional service credit. The bill would permit
a member of the Defined Benefit Program to request to purchase as
additional service credit time spent on employer-approved leave based
on the guidelines for the Family and Medical Leave Act or the
California Family Rights Act, or both. The bill would make related
technical and conforming changes.
(6) That law permits a member of the Defined Benefit Program to
apply for a disability allowance or disability retirement if the
member has 5 or more years of credited service, and subject to
specified requirements.
This bill would require the member to make that application in
writing to the Teachers' Retirement Board on a properly executed form
provided by the State Teachers' Retirement System.
(7) That law provides that upon termination of a survivor benefit
allowance, if the total allowance paid or payable is less than the
amount of the member's accumulated retirement contributions at the
time of death, the remaining balance of accumulated retirement
contributions shall be paid to the estate of the spouse.
This bill would provide that if there is no spouse, and if there
is a designated beneficiary, as specified, then upon termination of
the survivor benefit allowance payable to all eligible dependent
children, if the total allowance paid or payable is less than the
amount of the member's accumulated retirement contributions at the
time of death, the remaining balance of the accumulated retirement
contributions shall be paid to the member's designated beneficiary,
as specified.
(8) That law limits the amount of postretirement compensation that
may be earned in specified types of employment by a retired member
of the Defined Benefit Program without a reduction in the retirement
benefits of the member. That law, operative until June 30, 2010,
provides exemptions from this limit, as specified. The law requires
the employing school district to submit documentation to substantiate
the eligibility of the temporary employment of a member retired from
service for the exemption. Existing law also provides that the
period of exemption for members who retired for service and are
appointed or assigned to specified positions ends no more than 2
calendar years from the date of appointment or assignment.
This bill would require the documentation to be received by the
system no later than June 30 of the school year for which the
exemption is to apply. The bill would also provide that the exemption
would end no more than 24 consecutive months, rather than 2 calendar
years, from the date the exemption commenced.
(9) Under that law, a member may change or cancel a preretirement
election of an option on a properly executed form provided by the
State Teachers' Retirement System, subject to receipt within 30 days
of the member's signature and on or before the effective date of
retirement or other specified date.
This bill would additionally require the spouse's signature, if
applicable, to be included within that 30-day period.
(10) That law requires the board to establish and maintain a
segregated account within the retirement fund to be known as the
Annuitant Reserve, for the payment of annuities under the Defined
Benefit Supplement Program. Existing law provides that when the board
declares an additional earnings credit for a plan year, the board
may also declare by plan amendment an additional annuity credit, for
members and annuity beneficiaries who are receiving an annuity as of
a specified date, based on the balance of credits transferred from
the member's Defined Benefit Supplement account to the Annuitant
Reserve.
This bill would instead provide that the credit shall be based on
the annuity of the member and annuity beneficiaries for the plan year
and paid to the members and annuity beneficiaries on the date
specified by the board.
(11) That law establishes eligibility criteria for a member to
receive a retirement or a disability benefit under the Defined
Benefit Supplement Program, including that a member submit an
application for the benefit or allowance on a form prescribed by the
system. Existing law also provides that a final benefit under this
program becomes payable when the system receives proof of the member'
s death.
This bill would expand the eligibility criteria to provide that a
member retiring for service, as specified, on or after January 1,
2010, or whose disability allowance or disability retirement
allowance is effective on or after January 1, 2010, shall not receive
an allowance unless the member has submitted a completed application
on a form prescribed by the system. The bill would also provide that
no benefit shall be paid to a beneficiary until the final benefit is
paid.
(12) The bill would make other technical and conforming changes to
related provisions.
(13) The bill would provide that any section of any other act
enacted by the Legislature during the 2009 calendar year that takes
effect on or before January 1, 2010, and that affects a provision of
this act would prevail over this act.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 22115 of the Education Code is amended to read:
22115. (a) "Compensation earnable" means the creditable
compensation a person could earn in a school year for creditable
service performed on a full-time basis, excluding service for which
contributions are credited by the system to the Defined Benefit
Supplement Program.
(b) The board may determine compensation earnable for persons
employed on a part-time basis.
(c) When If service credit for a
school year is less than 1.000, compensation earnable shall be the
quotient obtained when creditable compensation paid in that year is
divided by the service credit for that year, except as provided in
subdivision (d).
(d) When If a member earns
creditable compensation at multiple pay rates during a school year
and service credit at the highest pay rate is at least 0.900 of a
year, compensation earnable shall be determined as if all service
credit for that year had been earned at the highest pay rate. This
subdivision shall be applicable only for purposes of determining
final compensation. When If a member
earns creditable compensation at multiple pay rates during a school
year and service credit at the highest pay rate is less than 0.900 of
a year, compensation earnable shall be determined pursuant to
subdivision (c).
(e) (1) For purposes of determining compensation earnable for a
member employed by a community college prior to July 1, 1996, full
time shall be defined pursuant to Section 22138.5 and pursuant to
Section 20521 of Title 5 of the California Code of Regulations, as
those provisions read on June 30, 1996, if application of that
definition will increase the compensation earnable or otherwise
enhance the benefits of the member.
(2) For purposes of administering this subdivision, the board
shall have the authority to do both of the following:
(A) Establish and implement factors and assumptions necessary to
calculate and compare the benefits payable under the definition of
compensation earnable described in this subdivision. Those factors
and assumptions may be based on information reported by the employer,
including, but not limited to, all of the following:
(i) Base hours.
(ii) Actual earnings.
(iii) Compensation earnable.
(B) Review member benefit calculations that were performed using
the factors and assumptions described in subparagraph (A). If the
board determines that an employer failed to identify part-time
service performed, the board shall consider that part-time service to
be performed in a part-time lecture assignment as defined by the
employer. If the board determines by the review of the member benefit
calculations that the required information reported by the employer
is inaccurate, incomplete, or the factors and assumptions were
applied incorrectly, the board may recalculate member benefits using
additional factors and assumptions that may include, but are not
limited to, all of the following:
(i) Base hours.
(ii) Actual earnings.
(iii) Compensation earnable.
(3) This subdivision shall apply to a member employed by a
community college prior to July 1, 1996, if the community college
subsequently acts to reduce the minimum standard for full time as
described in subdivision (c) of Section 22138.5 for the class of
employees, and that community college provides written notice
to the system of the act of the community college to reduce that
minimum standard.
(4) This subdivision shall not apply to a member employed by a
community college that has not reduced the minimum standard as
described in subdivision (c) of Section 22138.5.
SEC. 2. Section 22515 of the Education Code is amended to read:
22515. Persons excluded from membership pursuant to Sections
22601.5, 22602, and 22604 may elect membership in the Defined Benefit
Program at any time while employed to perform creditable service
subject to coverage under that program. The election shall be in
writing on a form prescribed by this system and shall be filed in the
office of this system prior to submission of contributions. The
election is irrevocable and shall remain in effect until the member
terminates employment. The amendments to this section enacted
during the 1995-96 Regular Session shall be deemed to have become
operative on July 1, 1996.
SEC. 3. Section 22661 of the Education Code is amended to read:
22661. (a) The nonmember spouse who is awarded a separate account
under this part shall have the right to a refund of the accumulated
retirement contributions in the account under the Defined Benefit
Program, and a return of the Defined Benefit Supplement account
balance, of the nonmember spouse under this part.
(b) The nonmember spouse shall file an application on a form
provided by the system to obtain a refund or lump-sum payment.
(c) The refund of accumulated retirement contributions in the
account under the Defined Benefit Program and the return of the
accumulated Defined Benefit Supplement account balance under this
part are effective when the system deposits in the United States mail
an initial warrant drawn in favor of the nonmember spouse and
addressed to the latest address for the nonmember spouse on file with
the system.
(d) If the nonmember spouse has elected on a form provided by the
system to transfer all or a specified portion of the accumulated
retirement contributions or accumulated Defined Benefit Supplement
account balance that are eligible for direct trustee-to-trustee
transfer to the trustee of a qualified plan under Section 402 of the
Internal Revenue Code of 1986 (26 U.S.C.A. Sec. 402), deposit in the
United States mail of a notice that the requested transfer has been
made constitutes a refund of the nonmember spouse's accumulated
retirement contributions as defined in Section 22161.5 or the return
of the accumulated Defined Benefit Supplement account balance.
This subdivision shall not apply to a nonmember domestic
partner, consistent with Section 402 of the Internal Revenue Code.
(e) The nonmember spouse is deemed to have permanently waived all
rights and benefits pertaining to the service credit, accumulated
retirement contributions, and accumulated Defined Benefit Supplement
account balance under this part when the refund and lump-sum payment
become effective.
(f) The nonmember spouse may not cancel a refund or lump-sum
payment under this part after it is effective.
(g) The nonmember spouse shall not have a right to elect to
redeposit the refunded accumulated retirement contributions under
this part after the refund is effective, to redeposit under Section
22662 or purchase additional service credit under Section 22663 after
the refund becomes effective, or to redeposit the accumulated
Defined Benefit Supplement account balance after the lump-sum payment
becomes effective.
(h) If the total service credit in the separate account of the
nonmember spouse under the Defined Benefit Program, including service
credit purchased under Sections 22662 and 22663, is less than two
and one-half years, the board shall refund the accumulated retirement
contributions in the account.
SEC. 4. Section 22713 of the Education Code is amended to read:
22713. (a) Notwithstanding any other provision of this chapter,
the governing board of a school district or a community college
district or a county superintendent of schools may establish
regulations that allow an employee who is a member of the Defined
Benefit Program to reduce his or her workload from full time to part
time, and receive the service credit the member would have received
if the member had been employed on a full-time basis and have his or
her retirement allowance, as well as other benefits that the member
is entitled to under this part, based, in part, on final compensation
determined from the compensation earnable the member would have been
entitled to if the member had been employed on a full-time basis.
(b) The regulations shall include, but may not be limited to, the
following:
(1) The option to reduce the member's workload shall be exercised
at the request of the member and may be revoked only with the mutual
consent of the employer and the member. The agreement to reduce a
member's workload shall be in effect at the beginning of the school
year.
(2) The member shall have been employed on a full-time basis to
perform creditable service subject to coverage under the Defined
Benefit Program and have a minimum of 10 years of credited service
, including five years of credited service for
prior to the reduction in workload. Additionally, the member
shall have five years of full-time employment immediately
preceding the reduction in workload.
(3) The member may not have had a break in service during the five
years immediately preceding the reduction in workload. For purposes
of this subdivision, sabbaticals, other approved leaves of absence,
and unpaid absences from the performance of creditable service for
personal reasons from full time employment do not
constitute a break in service. For purposes of this subdivision, the
period of time during which a member is retired for service shall
constitute a break in service and a member who reinstates from
retirement shall be required to be employed on a full-time basis to
perform creditable service for at least five school years immediately
preceding the reduction in workload.
(4) The member shall have reached 55 years of age prior to the
reduction in workload.
(5) The reduced workload shall be performed for a period of time,
as specified in the regulations, up to and including 10 years. The
period of time specified in the regulations may not exceed 10 years.
(6) The reduced workload shall be equal to at least one-half of
the time the employer requires for full-time employment in accordance
with Section 22138.5 pursuant to the member's contract of employment
during his or her last school year of full-time employment preceding
the reduction in workload.
(7) The member shall be paid creditable compensation that is the
pro rata share of the creditable compensation the member would have
been paid had the member not reduced his or her workload.
(c) Prior to the reduction of a member's workload under this
section, the employer, in conjunction with the administrative staff
of the State Teachers' Retirement Plan and the Public Employees'
Retirement System, shall verify the member's eligibility for the
reduced workload program.
(d) For each school year the member's workload is reduced pursuant
to this section, the member shall make contributions to the Teachers'
Retirement Fund in the amount that the member would have contributed
if the member had performed creditable service on a full-time basis
and if that service was subject to coverage under the Defined Benefit
Program.
(e) For each school year the member's workload is reduced pursuant
to this section, the employer shall contribute to the Teachers'
Retirement Fund at a rate adopted by the board as a plan amendment
with respect to the Defined Benefit Program an amount based upon the
creditable compensation that would have been paid to the member if
the member had performed creditable service on a full-time basis and
if that service was subject to coverage under the Defined Benefit
Program.
(f) The employer shall maintain the necessary records to
separately identify each member who participates in the reduced
workload program pursuant to this section.
(g) A member who retires or otherwise separates from service prior
to the end of the school year shall be in violation of this section
and the member's service credit for that period of the contract shall
be computed in accordance with Section 22701.
SEC. 5. Section 22801 of the Education Code is amended to read:
22801. (a) A member who elects to receive
requests to purchase additional service credit as provided in
this chapter and Chapter 14.2 (commencing with Section 22820)
shall pay, prior to retirement, all contributions with respect
to that service at the contribution rate for additional service
credit, adopted by the board as a plan amendment, in effect
at the time of election on the date of the request to
purchase additional service credit . If the system is unable to
inform the member or beneficiary of the amount required to purchase
additional service credit prior to the effective date of the
applicable allowance, the member or beneficiary may make the required
payment within 30 working days after the date of mailing of the
statement of contributions and interest required or the effective
date of the appropriate allowance, whichever is later. The payment
shall be paid in full before a member or beneficiary receives any
adjustment in the appropriate allowance due because of that payment.
Contributions shall be made in a lump sum, or in not more than 120
monthly installments, not to exceed ten years. No installment, except
the final installment, shall be less than twenty-five dollars ($25).
(b) If the member is employed to perform creditable service
subject to coverage by the Defined Benefit Program at the
time of the election on the date of the request to
purchase additional service credit , the contributions shall be
based upon the compensation earnable in the current school year or
either of the two immediately preceding school years, whichever is
highest.
(c) If the member is not employed to perform creditable service
subject to coverage by the Defined Benefit Program at the
time of the election on the date of the request to
purchase additional service credit , the contributions shall be
based upon the compensation earnable in the last school year of
credited service or either of the two immediately preceding school
years, whichever is highest , and additional regular
interest shall be added to the contributions from July 1 of the
subsequent year in which the member last performed creditable service
subject to coverage by the Defined Benefit Program to 20 days after
the date of the request .
(d) The employer may pay the amount required as employer
contributions for additional service credited under paragraphs
(2), (6), (7), (8), and (9)
, and (10) of subdivision (a) of Section 22803.
(e) The Public Employees' Retirement System shall transfer the
actuarial present value of the assets of a person who makes an
election pursuant to paragraph (10) (11)
of subdivision (a) of Section 22803.
(f) Regular interest shall be charged on all contributions from
the end of the school year on which the contributions were based to
the date of payment.
(g)
(f) Regular interest shall be charged on the monthly
unpaid balance if the member pays in installments. Regular interest
may not be charged or be payable for the period of a delay caused by
the system's inability or failure to determine and inform the member
or beneficiary of the amount of contributions and interest that is
payable. The period of delay shall commence on the 20th day following
the day on which the member or beneficiary who wishes to make
payment evidences in writing to the system that he or she is ready,
willing, and able to make payment to the system. The period of delay
shall cease on the first day of the month following the mailing of
notification of contributions and interest payable.
(h)
(g) If the payment described in subdivision (a) is not
received at the system's headquarters office, as described in Section
22375, within 120 days of the due date, the election pursuant to
this section shall be canceled. The member shall receive credit for
additional service based on the payments that were made or the member
may request a return of his or her payments.
(i)
(h) If the election to purchase additional service
credit is canceled as described in subdivision (h)
(g) , the member may, prior to the effective date of his
or her retirement, elect to purchase additional service credit
pursuant to this section.
SEC. 6. Section 22802 of the Education Code is amended to read:
22802. (a) A member , other than a retired member, who
was previously excluded from membership in the Defined Benefit
Program may elect to receive request to
purchase service credit for:
(1) Service as a substitute excluded under Section 22602.
(2) Creditable service subject to coverage under the Cash Balance
Benefit Program, excluding service credited pursuant to Section
26402, if the member is currently contributing to the Defined
Benefit Program and has terminated all service subject to
coverage under the Cash Balance Benefit Program. Upon
electing to receive requesting to purchase service
credit under this paragraph, the member shall cease to be
eligible for a benefit for the same service or time previously
credited under the Cash Balance Benefit Program pursuant to Part 14
(commencing with Section 26000).
(3) Service performed on a part-time basis excluded under Section
22601.5 or Section 22604, other than service credited under paragraph
(2).
(4) Adult education service excluded under Section 22603, as it
read on December 31, 1995.
(5) Service as a school nurse excluded under Section 22606, as it
read on December 31, 1995.
(6) Service performed in a position prior to the date the position
was made subject to coverage under the Defined Benefit Program.
(7) Service subject to coverage under the Defined Benefit Program
performed while a member of another California public retirement
system, provided the member has ceased to be a member of, and has
ceased to be entitled to benefits from, the other retirement system.
The member shall not receive credit for the service if the member may
redeposit withdrawn contributions and subsequently be eligible for
any benefits based upon the same service or based upon other
full-time service performed during the same period, from another
California public retirement system.
(b) A member who elects to receive
requests to purchase service credit under this part for service
performed while excluded from membership under the Defined Benefit
Program shall pay all of the required contributions for all or the
portion of that service for which the member elects to
receive requests to purchase service credit.
(c) A member may not elect to receive
request to purchase service credit for service or time
described in paragraphs (1) and (3) to (7), inclusive, of subdivision
(a) if, after the election request ,
the member would continue to receive credit for the same service or
time in the Cash Balance Benefit Program under Part 14 (commencing
with Section 26000) or another public retirement system.
SEC. 7. Section 22803 of the Education Code is amended to read:
22803. (a) A member , other than a retired member, may
elect to receive request to purchase service
credit for any of the following:
(1) Service performed in a teaching position in a publicly
supported and administered university or college in this state
the University of California or California
State University that is not covered by another public
retirement system.
(2) Service performed in a certificated teaching position in a
child care center operated by a county superintendent of schools or a
school district in this state.
(3) Service performed in a teaching position in the California
School for the Deaf or the California School for the Blind, or in
special classes maintained by the public schools of this state for
the instruction of the deaf, the hard of hearing, the blind, or the
semisighted.
(4) Service performed in a certificated teaching position in a
federally supported and administered Indian school in this state.
(5) Time served, not to exceed two years, in a certificated
teaching position in a job corps center administered by the United
States government in this state if the member was employed to perform
creditable service subject to coverage under the Defined Benefit
Program within one year prior to entering the job corps and returned
to employment to perform creditable service subject to coverage under
the Defined Benefit Program within six months following the date of
termination of service in the job corps.
(6) Time served, not to exceed two years, in a teaching position
as a member of the Peace Corps if the member was employed to perform
creditable service subject to coverage under the Defined Benefit
Program within one year prior to entering the Peace Corps and
returned to employment to perform creditable service subject to
coverage under the Defined Benefit Program within six months
following the date of termination of service in the Peace Corps.
(7) Time spent on a sabbatical leave, approved by an employer in
this state , after July 1, 1956 after meeting
the requirements of Section 44969 .
(8) Time spent on an approved leave, approved by an employer in
this state, to participate in any program under the federal Mutual
Educational and Cultural Exchange Program.
(9) Time spent on leave approved by an employer in this state as
maternity or paternity leave, not to exceed 24 consecutive months,
regardless of whether or not the leave was taken before or after the
addition of this subdivision.
(10) Time spent on an approved leave
employer-approved leave based on the guidelines for the Family and
Medical Leave Act or the California Family Rights Act, or both
, up to four months in any 12-month period , for family
care or medical leave purposes, as defined by Section 12945.2 of the
Government Code, as it read on the date leave was granted, excluding
maternity and paternity leave .
(11) Time spent employed by the Board of Governors of the
California Community Colleges in a position subject to coverage by
the Public Employees' Retirement System between July 1, 1991, and
December 31, 1997, provided the member has elected to return to
coverage under the State Teachers' Retirement System pursuant to
Section 20309 of the Government Code.
(b) In no event shall the member receive credit for service or
time described in paragraphs (1) to (11), inclusive, of subdivision
(a) if the member has received or is eligible to receive credit for
the same service or time in the Cash Balance Benefit Program under
Part 14 (commencing with Section 26000) or another public
retirement system.
SEC. 8. Section 22805 of the Education Code is amended to read:
22805. (a) A member may elect request
to receive credit under this part for time served in the active
military service of the United States or of this state, including
active service in any uniformed auxiliary to any branch of that
military service authorized as an auxiliary by Congress or the
Legislature, or in the full-time paid service of the American Red
Cross prior to September 1957, if both of the following conditions
exist:
(1) The time served was during war with any foreign power or
during other national emergency, or in time of peace if the member
was drafted for that service by the United States government.
(2) The member was employed to perform creditable service subject
to coverage under the Defined Benefit Program within one year prior
to entering that service. Time included under this section shall be
considered as served in the state in which the member was last
employed before entering that service.
(b) Time during which the member was absent without compensation
for other cause, on leave, or otherwise, shall not be included.
SEC. 9. Section 22820 of the Education Code is amended to read:
22820. (a) A member, other than a retired member, may
elect request to purchase credit for
out-of-state service credit for any of the
following:
(1) Service performed in a position while employed by a public
educational institution located in another state or territory of the
United States.
(2) Educational service performed as an employee of the United
States.
(3) Service performed as an employee of an educational
institution located outside of the United States and its territories
that receives a portion of its funding from any foreign or domestic
public sources and provides a level of education comparable to
kindergarten and grades 1 to 12, inclusive, as determined by the
applicable law of the jurisdiction in which the educational
institution is located.
(4) As an employee of an educational institution that receives
funds under Section 2701 of Title 22 of the United States Code.
(b) The member may not receive credit for this service if the
member retains or is eligible to receive credit for the same service
in the Cash Balance Benefit Program under Part 14 (commencing with
Section 26000) or another public retirement system, excluding social
security.
(c) The amount of out-of-state service for which
credit a member may purchase credit
may not exceed the number of years of service performed by
the member in a position described in subdivision (a).
(d) Out-of-state service credit may be purchased under this
section by means of any of the following actions:
(1) Paying an amount equal to the amount refunded from the other
public retirement system and receiving service credit under the
Defined Benefit Program pursuant to subdivision (a) of Section 22823.
(2) Paying the contributions required under the Defined Benefit
Program pursuant to subdivision (a) of Section 22823 for the service
credited in the other public retirement system.
(3) Paying an amount equal to the amount refunded from the other
public retirement system and an additional amount in accordance with
subdivision (a) of Section 22823 for the service credited in the
other public retirement system.
(4) Paying the contributions required under the Defined Benefit
Program pursuant to subdivision (a) of Section 22823 for the service
not credited to a public retirement system.
(e) Compensation for out-of-state service may not be used in
determining the highest average annual compensation earnable when
calculating final compensation.
(f) The service credit purchased under this section may not be
used to meet the eligibility requirements for benefits provided under
Sections 24001 and 24101.
SEC. 10. Section 22821 of the Education Code is amended to read:
22821. A member's election request
to purchase out-of-state service credit pursuant to this chapter
shall be submitted in writing and shall include
information as required by the board.
SEC. 11. Section 22822 of the Education Code is amended to read:
22822. An election A request
pursuant to Section 22820 to purchase credit for
out-of-state service credit may be made by a member any
time prior to the effective date of a family, survivor, disability,
or retirement allowance.
SEC. 12. Section 22823 of the Education Code is amended to read:
22823. (a) A member who
elects requests to purchase
out-of-state service credit pursuant to Section 22820
shall pay, prior to retirement, all contributions with respect
to that service at the contribution rate for additional service
credit adopted by the board as a plan amendment, in effect
at the time of election on the date of the request, in
accordance with subdivisions (a), (f), (g), and (h) of Section 22801
.
(b) (1) Any payment that a member may make to the system to obtain
credit for out-of-state service shall be paid in full prior to the
effective date of a family, survivor, disability, or retirement
allowance.
(2) If the system is unable to inform the member or beneficiary of
the amount required to purchase out-of-state service prior to the
effective date of the applicable allowance, the member or beneficiary
may make payment in full within 30 working days after the date of
mailing of the statement of contributions and interest required or
the effective date of the appropriate allowance, whichever is later.
The payment shall be paid in full before a member or beneficiary may
receive any adjustment in the appropriate allowance due because of
that payment.
(c) Contributions for out-of-state service credit shall be made in
a lump sum, or in not more than 120 monthly installments, not to
exceed ten years. No installment, except the final installment, shall
be less than twenty-five dollars ($25).
(d) Regular interest shall be charged on the monthly unpaid
balance if the member makes installment payments.
(e) If the payment described in subdivision (a) is not received at
the system's headquarters office, as described in Section 22375,
within 120 days of the due date, the election pursuant to this
section shall be canceled. The member shall receive credit for
out-of-state service based on the payments that were made or the
member may request a return of his or her payments.
(f) If the election to purchase out-of-state service is canceled
as described in subdivision (e), the member may, prior to the
effective date of his or her retirement, elect to purchase
out-of-state service pursuant to this section.
SEC. 13. Section 22826 of the Education Code is amended to read:
22826. (a) A member , other than a retired member, may
elect to receive request to purchase
up to five years of credit for nonqualified
service credit provided the member is vested in the
Defined Benefit Program as provided in Section 22156.
(b) A member who elects to receive credit for
requests to purchase nonqualified service credit
as provided in this chapter shall contribute to the retirement
fund the actuarial cost of the service, including interest as
appropriate, as determined by the board based on the most recent
valuation of the plan with respect to the Defined Benefit Program
in effect on the date of the request, in accordance with
subdivisions (a), (f), (g), and (h) of Section 22801 .
(1) Payment that a member may make to the system to obtain credit
for nonqualified service shall be paid in full prior to the effective
date of a family, survivor, disability, or retirement allowance.
(2) If the system is unable to inform the member of the amount
required to purchase nonqualified service prior to the effective date
of the applicable allowance, the member may make payment in full
within 30 working days after the date of mailing of the statement of
contributions and interest required or the effective date of the
appropriate allowance, whichever is later.
(c) Contributions for nonqualified service credit shall be made in
a lump sum or in not more than 120 monthly installments, not to
exceed ten years. No installment, except the final installment, shall
be less than twenty-five dollars ($25).
(d) Regular interest shall be charged on the monthly unpaid
balance if the member makes installment payments.
(e) If the payment described in subdivision (a) is not received at
the system's headquarters office, as described in Section 22375,
within 120 days of the due date, the election pursuant to this
section shall be canceled. The member shall receive credit for
nonqualified service based on the payments that were made or the
member may request a return of his or her payments.
(f) If the election to purchase nonqualified service is canceled
as described in subdivision (e), the member may, prior to the
effective date of his or her retirement, elect to purchase
nonqualified service pursuant to this section.
SEC. 14. Section 23200 of the Education Code is amended to read:
23200. (a) If a person, whose accumulated retirement
contributions have been refunded, again becomes a member of the
Defined Benefit Program or is subject to Section 23201, the person
may elect request to redeposit all or a
portion of those contributions with regular interest from the date
of refund to the date of payment.
(b) For time prior to July 1, 1944, regular interest shall be at 2
1/2 percent compounded annually.
(c)
(b) If a nonmember spouse, as defined in Section 22651,
withdraws accumulated contributions in accordance with Section
22661, the member may redeposit all or a portion of those
contributions pursuant to subdivision (a), providing he or she is not
receiving an allowance under Chapter 26 (commencing with Section
24100) or Chapter 27 (commencing with Section 24201).
(d)
(c) If a member elects requests
to redeposit a portion of all accumulated retirement
contributions that were previously refunded subject to requirements
imposed by the board, the member shall receive pro rata service
credit in proportion to the amount redeposited.
SEC. 15. Section 23201 of the Education Code is amended to read:
23201. Any person whose accumulated retirement contributions were
refunded, who wishes to establish concurrent membership, and who has
received, or will qualify to receive, a retirement allowance from
one or more of the retirement systems defined in Section 22115.2, may
elect request to redeposit all or a
portion of the accumulated retirement contributions that were
refunded, with regular interest from the date of refund to the date
of payment, without being employed to perform creditable service
subject to coverage under the Defined Benefit Program.
SEC. 16. Section 23859 of the Education Code is amended to read:
23859. (a) Upon termination of a survivor benefit allowance
pursuant to this chapter, if the total allowance paid or payable is
less than the amount of the member's accumulated retirement
contributions at the time of death, the remaining balance of
accumulated retirement contributions shall be paid to the estate of
the spouse.
(b) If there is no spouse, and if there is a designated
beneficiary pursuant to Section 23300, then upon termination of the
survivor benefit allowance payable to all eligible dependent children
pursuant to Section 23852, if the total allowance paid or payable is
less than the amount of the member's accumulated retirement
contributions at the time of death, the remaining balance of the
accumulated retirement contributions shall be paid to the member's
designated beneficiary pursuant to Section 23300.
(b)
(c) Payments provided under this section shall include
credited interest on the unpaid balance calculated from the date the
last survivor benefit allowance payment was made or from the date of
death of the member, if no survivor benefit allowance payments were
made, to the date the balance is paid.
SEC. 17. Section 24001 of the Education Code is amended to read:
24001. (a) A member may apply for a disability allowance under
the Defined Benefit Program , upon written application for
disability allowance to the board on a properly executed form
provided by the system, if the member has five or more years of
credited service and if all of the following requirements are met:
(1) At least four years were credited for actual performance of
service subject to coverage under the Defined Benefit Program. Credit
received because of workers' compensation payments shall be counted
toward the four-year requirement in accordance with Section 22710.
(2) The last five years of credited service were performed in this
state.
(3) Except as described in subdivision (d) of Section 24201.5, at
least one year was credited for service performed subsequent to the
date on which the member terminated the service retirement allowance
under Section 24208.
(4) At least one year was credited for service performed
subsequent to the most recent refund of accumulated retirement
contributions.
(5) The member has neither attained normal retirement age, nor
possesses sufficient unused sick leave days to receive creditable
compensation on account of sick leave to normal retirement age.
(6) The member is not applying for a disability allowance because
of a physical or mental condition known to exist at the time the most
recent membership in the Defined Benefit Program commenced and
remains substantially unchanged at the time of application.
(b) Nothing in subdivision (a) shall affect the right of a member
to a disability allowance under this part if the reason that the
member is credited with less than four years of actual service
performed subject to coverage under the Defined Benefit Program is
due to an on-the-job injury or a disease that occurred while the
member was employed and the four-year requirement can be satisfied by
credit obtained under Chapter 14 (commencing with Section 22800) or
Chapter 14.5 (commencing with Section 22850) in addition to any
credit received from workers' compensation payments.
(c) Nothing in subdivision (a) shall affect the right of a member
under this part who has less than five years of credited service to a
disability allowance if the following conditions are met:
(1) The member has at least one year of credited service performed
in this state.
(2) The disability is the direct result of an unlawful act of
bodily injury that was perpetrated on his or her person by another
human being while the member was performing his or her official
duties in a position subject to coverage under the Defined Benefit
Program.
(3) The member provides documentation of the unlawful act in the
form of an official police report or official employer incident
report.
(d) A member who is eligible to apply for a disability allowance
pursuant to this section may also apply for a service retirement
pending a determination of his or her application for disability as
described in Section 24201.5.
SEC. 18. Section 24101 of the Education Code is amended to read:
24101. (a) A member may apply for a disability retirement under
this part , upon written application for disability retirement
to the board on a properly executed form provided by the system,
if the member has five or more years of credited service and if
all of the following requirements are met:
(1) At least four years were credited for actual service performed
subject to coverage under the Defined Benefit Program. Credit
received because of workers' compensation payments shall be counted
toward the four-year requirement in accordance with Section 22710.
(2) The last five years of credited service were performed in this
state.
(3) Except as described in subdivision (d) of Section 24201.5, at
least one year of credited service was earned subsequent to the date
on which the member terminated the service retirement allowance under
Section 24208.
(4) At least one year of credited service was earned subsequent to
the date on which the member's disability retirement was terminated.
(5) At least one year of credited service was earned subsequent to
the most recent refund of accumulated retirement contributions.
(6) The member is not applying for a disability retirement because
of a physical or mental condition known to exist at the time the
most recent membership in the Defined Benefit Program commenced and
that remains substantially unchanged at the time of application.
(b) Nothing in subdivision (a) shall affect the right of a member
to a disability retirement if the reason that the member has
performed less than four years of actual service is due to an
on-the-job injury or a disease while in employment subject to
coverage by the Defined Benefit Program and the four-year requirement
can be satisfied by credit obtained under Chapter 14 (commencing
with Section 22800) or Chapter 14.5 (commencing with Section 22850)
in addition to any credit received from workers' compensation
payments.
(c) Nothing in subdivision (a) shall affect the right of a member
under this part who has less than five years of credited service to a
disability retirement allowance if the following conditions are met:
(1) The member has at least one year of credited service performed
in this state.
(2) The disability is a direct result of an unlawful act of bodily
injury that was perpetrated on his or her person by another human
being while the member was performing his or her official duties in a
position subject to coverage under the Defined Benefit Program.
(3) The member provides documentation of the unlawful act in the
form of an official police report or official employer incident
report.
(d) A member who is eligible to apply for a disability retirement
pursuant to this section may also apply for a service retirement
pending a determination of his or her application for disability as
described in Section 24201.5.
SEC. 19. Section 24216 of the Education Code is amended to read:
24216. (a) (1) A member retired for service under this part who
is appointed as a trustee or administrator by the Superintendent
pursuant to Section 41320.1, or who is appointed as a trustee
pursuant to the Immediate Intervention/Underperforming Schools
Program (Article 3 (commencing with Section 52053) of Chapter 6.1 of
Part 28) or the High Priority Schools Grant Program (Article 3.5
(commencing with Section 52055.600) of Chapter 6.1 of Part 28), or a
member retired for service who is assigned by a county superintendent
of schools pursuant to Article 2 (commencing with Section 42122) of
Chapter 6 of Part 24, shall be exempt from subdivisions (d) and (f)
of Section 24214 for a maximum period of two years
24 consecutive months .
(2) The period of exemption shall commence on the date the member
retired for service is appointed or assigned and shall end no more
than two calendar years 24 consecutive months
from that date, after which the limitation specified in
subdivisions (d) and (f) of Section 24214 shall apply.
(3) An exemption under this subdivision shall be granted by the
system providing that the Superintendent or the county superintendent
of schools submits documentation required by the system to
substantiate the eligibility of the member retired for service for an
exemption under this subdivision. The documentation shall be
received by the system no later than June 30 of the school year for
which the exemption is to apply.
(b) (1) A member retired for service under this part who is
employed by an employer to perform creditable service in an emergency
situation to fill a vacant administrative position requiring highly
specialized skills shall be exempt from the provisions of
subdivisions (d) and (f) of Section 24214 for creditable service
performed up to one-half of the full-time position, if the vacancy
occurred due to circumstances beyond the control of the employer.
(2) The period of exemption shall commence on the date the member
retired for service is appointed or assigned and shall end no more
than two calendar years 24 consecutive months
from that date, after which the limitation specified in
subdivisions (d) and (f) of Section 24214 shall apply.
(3) An exemption under this subdivision shall be granted by the
system subject to the following conditions:
(A) The recruitment process to fill the vacancy on a permanent
basis is expected to extend over several months.
(B) The employment is reported in a public meeting of the
governing body of the employer.
(C) The employer submits documentation required by the system to
substantiate the eligibility of the member retired for service for an
exemption under this subdivision.
(c) This section does not apply to any person who has received
additional service credit pursuant to Section 22715 or 22716.
(d) A person who has received additional service credit pursuant
to Section 22714 or 22714.5 shall be ineligible for one year from the
effective date of retirement for the exemption provided in this
section for service performed in any school district, community
college district, or county office of education in the state.
(e) This section shall remain in effect only until June 30, 2010,
and shall be repealed on January 1, 2011, unless a later enacted
statute deletes or extends that date.
SEC. 20. Section 24216.5 of the Education Code is amended to read:
24216.5. (a) The compensation earned by a member who retired for
service under this part shall be exempt from subdivisions (d), (f),
and (g) of Section 24214, if all of the following conditions are met:
(1) The member retired for service with an effective date on or
before January 1, 2007.
(2) The member retired for service is employed by a school
district to provide any of the following:
(A) Direct classroom instruction to pupils enrolled in
kindergarten or any of grades 1 to 12, inclusive.
(B) Support and assessment for new teachers through the Beginning
Teacher Support and Assessment program authorized by Section 44279.1.
(C) Support to individuals completing student teaching
assignments.
(D) Support to individuals participating in the following
programs:
(i) Pre-Internship Teaching Program authorized pursuant to Article
5.6 (commencing with Section 44305) of Chapter 2 of Part 25.
(ii) Alternative certification programs authorized pursuant to
Article 11 (commencing with Section 44380) of Chapter 2 of Part 25.
(iii) School Paraprofessional Teacher Training Program established
pursuant to Article 12 (commencing with Section 44390) of Chapter 2
of Part 25.
(E) Instruction and pupil services provided to pupils enrolled in
special education programs authorized pursuant to Part 30 (commencing
with Section 56000) of Division 4 of Title 2.
(F) Instruction to pupils enrolled in English language learner
programs authorized pursuant to Chapter 3 (commencing with Section
300), Chapter 4 (commencing with Section 400), and Chapter 6
(commencing with Section 430) of Part 1 of Division 1.
(3) All members retired for service whose employment with a school
district meets the conditions specified in this section shall be
treated as a distinct class of temporary employees within the
existing bargaining unit whose service may not be included in
computing the service required as a prerequisite to attainment of or
eligibility for classification as a permanent employee of a school
district. The compensation for service performed by this class of
employees shall be established in accordance with subdivision (b) of
Section 24214 and agreed to in the collective bargaining agreement
between the employing school district and the exclusive
representative for the existing bargaining unit within which these
temporary employees of the school district are treated as a distinct
class.
(4) The employing school district submits documentation required
by the system to substantiate the eligibility of the temporary
employment of a member retired for service for the exemption under
this subdivision. The documentation shall be received by the
system no later than June 30 of the school year for which the
exemption is to apply.
(b) A school district that employs a member retired for service
pursuant to this section shall maintain accurate records of the
retired member's compensation earned and shall report that
compensation monthly to the system regardless of the method of
payment or the source of funds from which the compensation is paid.
(c) This section does not apply to the compensation earned for
creditable service performed by a member retired for service for a
community college district.
(d) This section shall remain in effect only until June 30, 2010,
and shall be repealed as of January 1, 2011, unless a later enacted
statute deletes or extends that date.
SEC. 21. Section 24216.6 of the Education Code is amended to read:
24216.6. (a) The compensation earned by a member who retired for
service under this part shall be exempt from subdivisions (d), (f),
and (g) of Section 24214, if all of the following conditions are met:
(1) The member retired for service with an effective date on or
before January 1, 2007.
(2) The member retired for service is employed by a school
district to provide direct remedial instruction to pupils in grades 2
to 12, inclusive. "Remedial instruction" means the programs
specified in Sections 37252 and 37252.2.
(3) All members retired for service whose employment with a school
district meets the conditions specified in this section shall be
treated as a distinct class of temporary employees within the
existing bargaining unit whose service may not be included in
computing the service required as a prerequisite to attainment of or
eligibility for classification as a permanent employee of a school
district. The compensation for service performed by this class of
employees shall be established in accordance with subdivision (b) of
Section 24214 and agreed to in the collective bargaining agreement
between the employing school district and the exclusive
representative for the existing bargaining unit within which these
temporary employees of the school district are treated as a distinct
class.
(4) The employing school district submits documentation required
by the system to substantiate the eligibility of the temporary
employment of a member retired for service for the exemption under
this subdivision. That documentation shall be on a properly executed
form provided by the system and shall be received by the system
no later than June 30 of the school year for which the exemption is
to apply .
(b) A school district that employs a member retired for service
pursuant to this section shall maintain accurate records of the
retired member's compensation earned and shall report that
compensation monthly to the system regardless of the method of
payment or the source of funds from which the compensation is paid.
(c) This section does not apply to the compensation earned for
creditable service performed by a member retired for service for a
county office of education or a community college district.
(d) This section shall remain in effect only until June 30, 2010,
and shall be repealed as of January 1, 2011, unless a later enacted
statute deletes or extends that date.
SEC. 22. Section 24301 of the Education Code is amended to read:
24301. (a) A member who has filed an application under this part
for a disability retirement pursuant to Chapter 26 (commencing with
Section 24100) may elect, as provided in Section 24300 or 24300.1 to
receive an actuarially modified disability retirement allowance.
After receipt of a disability retirement application from a member,
the board shall mail an acknowledgment notice to the member. A 30-day
period shall commence with the mailing of the acknowledgment, during
which time the member may change the option election made on the
disability retirement application.
(b) The option shall become effective on the effective date of the
disability retirement allowance. The modification of the disability
retirement allowance under the option elected shall be based on the
ages of the retired member and the designated option beneficiary as
of the effective date of the disability retirement. The modification
shall be applicable only to the disability retirement allowance
payable pursuant to subdivision (a) of Section 24106.
(c) The Except as provided in Sections
24300, 24300.1, 24300.6, 24305, 24305.5, and 24306, the
elected option may not be revoked or changed after the later of
the effective date of the disability retirement allowance or 30 days
after the mailing of the acknowledgment notice pursuant to this
section.
(d) If a member dies prior to electing an unmodified allowance or
an option, the death benefits shall be payable under Chapter 23
(commencing with Section 23850), regardless of whether the disability
retirement application is or would have been approved.
SEC. 23. Section 24309 of the Education Code is amended to read:
24309. (a) A member may change or cancel the election of an
option made pursuant to Section 24307. The change or cancellation
shall be on a properly executed form provided by the system and
received at the system's headquarters office, as established pursuant
to Section 22375, within 30 days of the date of the member's
signature and, if applicable, the spouse's signature, and
on or before the effective date of retirement under this part or
during the period between termination of the retirement allowance
pursuant to Section 24208 or 24117 and the effective date of the
subsequent retirement under this part. The change or cancellation
shall become effective as of the date of the member's signature.
(1) Any change to an election of an option shall be made
according to Section 24307 and shall be considered a new
preretirement election of an option.
(2) Regardless of how the member elects to receive his or her
retirement allowance, a change made to an election of an option or a
cancellation of an option shall result in the reduction of that
allowance by an amount determined by the board to be the actuarial
equivalent of the coverage the member received as a result of the
preretirement election and that does not result in any adverse
funding to the plan.
(b) If the option beneficiary designated in the preretirement
election of an option pursuant to Section 24307 dies prior to the
member's retirement, the preretirement election shall be canceled as
of the day following the date of death and the member's subsequent
retirement allowance under this part shall be subject to the
allowance reduction prescribed in this section.
(c) If the option elected pursuant to Section 24307 is Option 8 as
described in paragraph (7) of subdivision (a) of Section 24300 or
the compound option as described in paragraph (4) of subdivision (a)
of Section 24300.1, a member may cancel the designation of an option
beneficiary. If the member cancels the designation of the option
beneficiary or the option beneficiary predeceases the member prior to
the member's retirement, the member may elect to receive that
portion of the retirement allowance without modification for the
option or elect one or multiple new or existing option beneficiaries
as described in Section 24307. Any change or cancellation of the
designation of the option beneficiary under this subdivision shall
result in the allowance reduction prescribed in this section.
SEC. 24. Section 25007 of the Education Code is amended to read:
25007. When the board declares an additional earnings credit for
a plan year, the board also may declare by plan amendment an
additional annuity credit, for members and annuity beneficiaries who
are receiving an annuity as of the date specified by the board
pursuant to Section 25006, based on the balance of credits
transferred from the member's Defined Benefit Supplement account to
the Annuitant Reserve. The additional annuity credit, if declared by
the board, shall be paid in a lump sum annuity of the
member and annuity beneficiaries for the plan year. The additional
annuity credit shall be paid in a lump sum to the members and annuity
beneficiaries on the date specified by the board .
In addition to the considerations specified in Section 25006, prior
to declaring an additional earnings credit, the board shall consider
both of the following:
(a) The amount required for the plan year to apply the additional
earnings credit to the Defined Benefit Supplement accounts of members
who are not receiving an annuity under the Defined Benefit
Supplement Program for the plan year.
(b) Any other obligations incurred by the plan with respect to the
Defined Benefit Supplement Program.
SEC. 25. Section 25008.5 is added to the Education Code, to read:
25008.5. Notwithstanding any other law, if (a) a member or
beneficiary whose effective date for a benefit received pursuant to
any other chapter of this part was prior to January 1, 2010, (b) the
member or beneficiary was required to receive a distribution of the
balance of credits from the member's Defined Benefit Supplement
account pursuant to this chapter, and (c) the member or beneficiary
failed to submit an application for the distribution of the member's
Defined Benefit Supplement account prior to January 1, 2010, the
system shall distribute the balance of credits in the member's
Defined Benefit Supplement account in a lump-sum payment to the
member or beneficiary, as applicable, by March 31, 2010.
SEC. 26. Section 25010 of the Education Code is amended to read:
25010. (a) A member who meets the following eligibility
requirements shall receive a retirement benefit under the Defined
Benefit Supplement Program:
(1) The member has terminated all employment to perform creditable
service subject to coverage by the plan. The member's employer, or
employers if the member has multiple employers, shall certify on a
form prescribed by the system that the member's employment has been
terminated.
(2) The member has retired for service under the Defined Benefit
Program pursuant to Chapter 27 (commencing with Section 24201).
(b) A member shall submit an application for a retirement benefit
on a form prescribed by the system.
(c) A member retiring for service pursuant to Chapter 27
(commencing with Section 24201) on or after January 1, 2010, shall
not receive an allowance pursuant to Chapter 27 unless the member has
submitted a completed application pursuant to subdivision (b).
SEC. 27. Section 25011.1 of the Education Code is amended to read:
25011.1. (a) A member may elect to receive the retirement benefit
as an annuity payable in monthly installments, provided the balance
of credits in the member's Defined Benefit Supplement account on the
date the retirement benefit becomes payable equals at least three
thousand five hundred dollars ($3,500) after any lump-sum payments
have been made from the account. If the member elects to receive the
retirement benefit as an annuity, the member shall elect one of the
following forms of payments:
(1) Member only annuity. This is a single life annuity with a cash
refund feature that is the actuarial equivalent of the amount that
would be payable to the retired member if the member elected to
receive the retirement benefit in a lump-sum payment. Upon the death
of the member, an amount equal to the remaining balance of credits,
if any, transferred from the member's Defined Benefit Supplement
account to the annuitant reserve shall be returned in a lump-sum
payment to the beneficiary of the member.
(2) One hundred percent beneficiary annuity. This is a joint and
survivor annuity that is the actuarial equivalent of the lump-sum
payment modified to be payable over the combined lives of the member
and the member's annuity beneficiary or beneficiaries. Upon the death
of the member, 100 percent of the monthly amount that was payable to
the member shall be paid monthly to the surviving annuity
beneficiary or beneficiaries of the member.
(3) Seventy-five percent beneficiary annuity. This is a joint and
survivor annuity that is the actuarial equivalent of the lump-sum
payment modified to be payable over the combined lives of the member
and the member's annuity beneficiary. Pursuant to Section 401(a)(9)
of the Internal Revenue Code, the member shall not elect this annuity
if a beneficiary is more than exactly 19 years younger than the
member, unless the beneficiary is the member's spouse or former
spouse and the election is pursuant to a determination of community
property rights. Upon the death of the member, 75 percent of the
monthly amount that was payable to the member shall be paid monthly
to the surviving annuity beneficiary or beneficiaries of the member.
(4) Fifty percent beneficiary annuity. This is a joint and
survivor annuity that is the actuarial equivalent of the lump-sum
payment modified to be payable over the combined lives of the member
and the member's annuity beneficiary or beneficiaries. Upon the death
of the member, 50 percent of the monthly amount that was payable to
the member shall be paid monthly to the surviving annuity beneficiary
or beneficiaries of the member.
(5) A period certain annuity. This form of payment is an annuity
equal to the actuarial equivalent of the balance of credits in the
member's Defined Benefit Supplement account on the date the
retirement benefit becomes payable. The annuity shall be payable in
whole year increments over a period of years specified by the member,
from a minimum of three years to a maximum of 10 years. However, the
annuity period may not exceed the life expectancy of the member, or
the life expectancy of the member and the member's annuity
beneficiary. If the member's death occurs prior to the end of the
period certain, the remaining balance of payments shall be paid to
the member's annuity beneficiary pursuant to Section 25022.
(b) If an annuity beneficiary designated pursuant to paragraph
(2), (3), or (4) of subdivision (a) predeceases the member, the
annuity shall be paid to the member as the member only annuity that
would have been payable had the member elected that form of payment
at the commencement of the benefit. That member only annuity shall be
payable as of the day following the date of the annuity beneficiary'
s death upon receipt by the system of proof of the annuity
beneficiary's death. If the annuity beneficiary predeceases the
member and the member designates a new option beneficiary pursuant to
Section 24300.1, the new option beneficiary shall be the new annuity
beneficiary. The effective date shall be six months following the
date notification is received by the board, provided both the member
and the new annuity beneficiary are then living. Notice to the board
of the death of the annuity beneficiary shall be on a properly
executed form provided by the system. The new annuity beneficiary
under this paragraph is subject to an actuarial modification of the
member only annuity and may not result in any additional liability to
the fund. The new annuity beneficiary may not be an existing annuity
beneficiary.
(c) If a nonmember spouse elects to receive the retirement benefit
as an annuity, the nonmember spouse shall elect the form of payment
specified in paragraph (1) or (6) (5)
of subdivision (a) and, in those paragraphs, references to a "member"
shall apply to the nonmember spouse.
(d) Notwithstanding Section 297 or 299.2 of the Family Code, a
spouse as described in paragraph (3) or (5) of subdivision (a) does
not include the domestic partner of the member, pursuant to Section 7
of Title 1 of the United States Code.
(e) If there is a determination of community property rights as
described in Chapter 12 (commencing with Section 22650) of this part
on or before December 31, 2006, the member may elect the annuity that
is required by the judgment or court order. Nothing in this part
shall permit the member to change the annuity to the detriment of the
community property interest of the nonmember spouse.
SEC. 28. Section 25017 of the Education Code is amended to read:
25017. (a) A member shall receive a disability benefit under the
Defined Benefit Supplement Program beginning on the effective date of
the member's disability allowance pursuant to Chapter 25 (commencing
with Section 24001) or a disability retirement allowance pursuant to
Chapter 26 (commencing with Section 24100) under the Defined Benefit
Program.
(b) The member, or the member's employer or conservator on behalf
of the member, shall submit an application for a disability benefit
on a form prescribed by the system.
(c) A member whose disability allowance or disability retirement
allowance is effective on or after January 1, 2010, shall not receive
an allowance pursuant to Chapter 25 (commencing with Section 24001)
or Chapter 26 (commencing with Section 24100), as applicable, unless
the member has submitted a completed application pursuant to
subdivision (b).
SEC. 29. Section 25020 of the Education Code is amended to read:
25020. (a) A final benefit under the Defined Benefit Supplement
Program shall become payable when the system receives proof of the
member's death. For a member who died on or after January 1,
2010, no benefit shall be paid to a beneficiary of the member
pursuant to other chapters of this part until the final benefit is
paid pursuant to this article.
(b) If the member's death occurs before an annuity under the
Defined Benefit Supplement Program becomes payable, the final benefit
shall be an amount equal to the balance of credits in the member's
Defined Benefit Supplement account on the date of the member's death,
plus minimum interest credited through the date of payment.
(c) Upon distribution of a final benefit in a lump-sum payment, no
other benefit shall be payable under the Defined Benefit Supplement
Program to the member's beneficiary.
SEC. 30. The heading of Part 14 (commencing with Section 26000) of
Division 1 of Title 1 of the Education Code is amended to read:
PART 14. STATE TEACHERS' RETIREMENT SYSTEM CASH
BALANCE PLAN BENEFIT PROGRAM
SEC. 31. Any section of any other act enacted by the Legislature
during the 2009 calendar year that takes effect on or before January
1, 2010, and that amends, amends and renumbers, adds, repeals and
adds, or repeals a section that is amended, amended and renumbered,
added, repealed and added, or repealed by this act, shall prevail
over this act, whether that act is enacted prior to or subsequent to
the enactment of this act. The repeal, or repeal and addition, of any
article, chapter, part, title, or division of any code by this act
shall not become operative if any section of any other act that is
enacted by the Legislature during the 2009 calendar year and takes
effect on or before January 1, 2010, amends, amends and renumbers,
adds, repeals and adds, or repeals any section contained in that
article, chapter, part, title, or division.
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