BILL NUMBER: AB 1028 INTRODUCED
BILL TEXT
INTRODUCED BY Committee on Public Employees, Retirement and Social
Security (Furutani (Chair), Allen, Ma, and Wieckowski)
FEBRUARY 18, 2011
An act to amend Sections 20096.5, 20636.1, 20814, 21221, 21224,
21228, 21229, 21490, 21493, 21506, and 21507 of, and to add Section
21533.5 to, the Government Code, relating to state employees'
retirement.
LEGISLATIVE COUNSEL'S DIGEST
AB 1028, as introduced, Committee on Public Employees, Retirement
and Social Security. State employees' retirement.
(1) The Public Employees' Retirement Law (PERL) creates the Public
Employees' Retirement System (PERS), which provides a defined
benefit to its members based on age at retirement, service credit,
and final compensation. PERL vests the Board of Administration of
PERS with management and control of the system. PERL sets forth the
membership of the board, including 6 members elected under the
supervision of the board, as specified. Under PERL, candidates for or
incumbents of those 6 elected seats are required to file campaign
statements with the Secretary of State no later than two days before
the beginning of the ballot period, as determined by the board for
the period ending five days before the beginning of the ballot
period, and no later than January 10, for the period ending December
31. The Political Reform Act of 1974 expressly applies to candidates
for elections to the board and to committees that are formed
primarily to support or oppose those candidates. It requires those
members to file semiannual campaign statements each year no later
than July 31 for the period ending June 30, and no later than January
31 for the period ending December 31.
This bill would clarify that the filing provisions under the
Political Reform Act would apply.
(2) PERL defines "payrate" for school members as the normal
monthly rate of pay or base pay of the member paid in cash to
similarly situated members of the same group or class of employment
for services rendered on a full-time basis during normal working
hours. For other members, PERL specifically includes the amount
deducted from a member's salary for participation in a deferred
compensation plan, a retirement plan or money purchase pension plan
under a specified provision of federal law, and a participation in a
flexible benefits program.
This bill would modify the definition of "payrate" for school
members to include those amounts deducted from a school member's
salary.
(3) PERL requires the state's contribution to be adjusted from
time to time in the annual Budget Act by requiring that the Governor'
s proposed budget include the contribution rates submitted by the
actuary of the liability for benefits on account of employees of the
state, and requiring that the Legislature adopt the actuary's
contribution rates and authorize the appropriation in the Budget Act.
This bill would instead require the board to adopt the state
contribution rates and then requiring the Legislature to adopt the
board's contribution rates and authorize the appropriation in the
Budget Act. The bill would also authorize the board, in its
discretion, to adopt new quarterly employer contribution rates for
future contributions for the state plans to reflect changes in
employee retirement contributions, benefits, or pension plan design
contained in a memorandum of understanding, or similar changes for
unrepresented employees, when those changes go into effect after the
board has adopted its most recent annual employer contribution rates.
(4) PERL generally prohibits any person who has been retired under
PERS from being employed in any capacity unless he or she is first
reinstated from retirement, except as authorized. PERL authorizes a
retired person to serve without reinstatement from retirement or loss
or interruption of benefits provided by PERS, upon appointment by
the governing body of a contracting agency to a position deemed by
the governing body to be of a limited duration and requiring
specialized skills or during an emergency to prevent stoppage of
public business. These appointments are prohibited from exceeding a
total for all employers of 960 hours in any fiscal year.
This bill would require that the appointment be an interim
appointment to a vacant position during recruitment for a permanent
appointment and deemed by the governing body to require specialized
skills or during an emergency to prevent stoppage of public business.
The bill would prohibit the compensation for the interim appointment
from exceeding the maximum published pay schedule for the vacant
position. The bill would prohibit a governing body of a contracting
agency from appointing a retired person under this provision more
than once.
(5) PERL similarly authorizes a retired person to serve without
reinstatement from retirement or loss or interruption of benefits
provided by PERS upon appointment by a school employer, by the
Trustees of the California State University, the appointing power of
a state agency, or public agency employer either during an emergency
to prevent stoppage of public business or because the retired
employee has skills needed in performing work of limited duration.
This bill would clarify that those appointments would be temporary
or interim and that the skills must be specialized.
(6) PERL also authorizes a person retired for disability who has
not attained the mandatory age for retirement applicable to persons
in the employment in which he or she will be employed, and whom the
board finds not disabled for that employment, to be employed by any
employer without reinstatement from retirement in a position other
than that from which he or she retired or a position in the same
member classification.
This bill would prohibit a person employed under that provision
from being concurrently employed under other specified provisions
that allow for employment after retirement.
(7) PERL authorizes a member at any time to designate a
beneficiary to receive the benefits as may be payable to his or her
beneficiary or estate under PERL, by a writing filed with the board.
This bill would authorize a writing filed with the board to
include a will or trust if the document lists the retirement benefit
as an asset. The bill would also authorize a will or trust to be
accepted as a writing filed with the board if the will or trust
disinherits one or all of either the previously designated
beneficiary or closest survivors, as specified. The bill would deem a
will or trust that is accepted as a writing filed with the board as
designating the estate or trust as a beneficiary.
(8) PERL requires a death benefit to be paid to the estate of the
decedent if the decedent had no effective beneficiary designation and
there are no familial survivors, as specified, who are entitled to
the benefit, if the estate is either probated or subject to probate.
PERL also provides for the payment to a decedent's beneficiaries of
any accrued and unpaid monthly allowance payable to a person, any
uncashed warrant, any balance of prepaid complementary health
premiums, any prepaid complementary annuitant health plan premiums,
lump-sum benefit, or any uncashed lump-sum death benefit.
This bill would authorize those benefits to be paid upon receipt
by PERS of a court order authorizing the Public Administrator to
proceed summarily when the estate is handled by a Public
Administrator or does not require probate, otherwise the benefit
would be paid to the decedent's trust or other familial survivors, as
specified.
(9) The federal Heroes Earnings Assistance and Relief Tax Act of
2008 requires survivors of a member who dies while performing
qualified military service to be entitled to any benefits they would
have received had the member remained an active employee.
This bill would make changes to conform California law to that
federal act.
The bill would also make related technical changes to the
above-described provisions.
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 20096.5 of the Government Code is amended to
read:
20096.5. (a) Candidates for
board seats described in subdivision (g) of Section 20090, including
incumbent board members running for reelection, shall file campaign
statements with the Secretary of State no later than two
days before the beginning of the ballot period, as determined by the
board for the period ending five days before the beginning of the
ballot period, and no later than January 10, for the period ending
December 31 and the board pursuant to Article 2
(commencing with Section 84200) of Chapter 4 of Title 9 .
(b) The campaign statements shall contain an itemized report that
is prepared on a form prescribed by the Fair Political Practices
Commission, with the assistance of the board, that provides the
information contained in campaign statements filed under Section
84211 to the extent that that information is applicable to a board
election.
(c) The original of a campaign statement shall be filed with the
Secretary of State and a copy shall be retained by the executive
officer at the board's office in Sacramento and is a public record.
(d) All campaign statements filed under this section shall be
signed and verified by the filer. The verification shall state that
the filer has used reasonable diligence in its preparation, and that
to the best of his or her knowledge it is true and complete. Any
person who violates the requirements of this section shall be subject
to a civil or administrative action brought by the Fair Political
Practices Commission or other agency of concurrent jurisdiction
pursuant to Title 9 (commencing with Section 81000).
SEC. 2. Section 20636.1 of the Government Code is amended to read:
20636.1. (a) Notwithstanding Section 20636, and Section 45102 of
the Education Code, "compensation earnable" by a school member means
the payrate and special compensation of the member, as defined by
subdivisions (b) and (c), and as limited by Section 21752.5.
(b) (1) "Payrate" means the normal monthly rate of pay or base pay
of the member paid in cash to similarly situated members of the same
group or class of employment for services rendered on a full-time
basis during normal working hours. For purposes of this part, for
classified members, full-time employment is 40 hours per week, and
payments for services rendered, not to exceed 40 hours per week,
shall be reported as compensation earnable for all months of the year
in which work is performed. "Payrate," for a member who is not in a
group or class, means the monthly rate of pay or base pay of the
member, paid in cash and pursuant to publicly available pay
schedules, for services rendered on a full-time basis during normal
working hours, subject to the limitations of paragraph (2) of
subdivision (e).
(A) "Payrate" shall include an amount deducted from a member's
salary for any of the following:
(i) Participation in a deferred compensation plan.
(ii) Payment for participation in a retirement plan that meets the
requirements of Section 401(k) or 403(b) of Title 26 of the United
States Code.
(iii) Payment into a money purchase pension plan and trust that
meets the requirements of Section 401(a) of Title 26 of the United
States Code.
(iv) Participation in a flexible benefits program.
(A)
(B) For the purposes of this section, "classified
members" shall mean members who retain membership under this system
while employed with a school employer in positions not subject to
coverage under the Defined Benefit Program under the State Teacher's
Retirement System.
(B)
(C) For the purposes of this section, and Sections
20962 and 20966, "certificated members" shall mean members who retain
membership under this system while employed in positions subject to
coverage under the Defined Benefit Program under the State Teacher's
Retirement System.
(2) The computation for any leave without pay of a member shall be
based on the compensation earnable by him or her at the beginning of
the absence.
(3) The computation for time prior to entering state service shall
be based on the compensation earnable by him or her in the position
first held by him or her in state service.
(c) (1) Special compensation of a school member includes any
payment received for special skills, knowledge, abilities, work
assignment, workdays or hours, or other work conditions.
(2) Special compensation shall be limited to that which is
received by a member pursuant to a labor policy or agreement or as
otherwise required by state or federal law, to similarly situated
members of a group or class of employment that is in addition to
payrate. If an individual is not part of a group or class, special
compensation shall be limited to that which the board determines is
received by similarly situated members in the closest related group
or class that is in addition to payrate, subject to the limitations
of paragraph (2) of subdivision (e).
(3) Special compensation shall be for services rendered during
normal working hours and, when reported to the board, the employer
shall identify the pay period in which the special compensation was
earned.
(4) Special compensation may include the full monetary value of
normal contributions paid to the board by the employer, on behalf of
the member and pursuant to Section 20691, provided that the employer'
s labor policy or agreement specifically provides for the inclusion
of the normal contribution payment in compensation earnable.
(5) The monetary value of any service or noncash advantage
furnished by the employer to the member, except as expressly and
specifically provided in this part, shall not be special compensation
unless regulations promulgated by the board specifically determine
that value to be "special compensation."
(6) The board shall promulgate regulations that delineate more
specifically and exclusively what constitutes "special compensation"
as used in this section. A uniform allowance, the monetary value of
employer-provided uniforms, holiday pay, and premium pay for hours
worked within the normally scheduled or regular working hours that
are in excess of the statutory maximum workweek or work period
applicable to the employee under Section 201 et seq. of Title 29 of
the United States Code shall be included as special compensation and
appropriately defined in those regulations.
(7) Special compensation does not include any of the following:
(A) Final settlement pay.
(B) Payments made for additional services rendered outside of
normal working hours, whether paid in lump sum or otherwise.
(C) Any other payments the board has not affirmatively determined
to be special compensation.
(d) Notwithstanding any other provision of law, payrate and
special compensation schedules, ordinances, or similar documents
shall be public records available for public scrutiny.
(e) (1) As used in this part, "group or class of employment" means
a number of employees considered together because they share
similarities in job duties, work location, collective bargaining
unit, or other logical work-related grouping. Under no circumstances
shall one employee be considered a group or class.
(2) Increases in compensation earnable granted to any employee who
is not in a group or class shall be limited during the final
compensation period applicable to the employees, as well as the two
years immediately preceding the final compensation period, to the
average increase in compensation earnable during the same period
reported by the employer for all employees who are in the same
membership classification, except as may otherwise be determined
pursuant to regulations adopted by the board that establish
reasonable standards for granting exceptions.
(f) As used in this part, "final settlement pay" means any pay or
cash conversions of employee benefits that are in excess of
compensation earnable, that are granted or awarded to a member in
connection with or in anticipation of a separation from employment.
The board shall promulgate regulations that delineate more
specifically what constitutes final settlement pay.
SEC. 3. Section 20814 of the Government Code is amended to read:
20814. (a) Notwithstanding any other provision of law, the state'
s contribution under this chapter shall be adjusted from time to time
in the annual Budget Act according to the following method.
As part of the proposed budget submitted pursuant to Section 12 of
Article IV of the California Constitution, the Governor shall include
the contribution rates submitted by the actuary of the liability for
benefits on account of employees of the state. The Legislature shall
adopt the actuary's . The bo ard shall
adopt the state contribution rates and the Legislature shall adopt
the board's contribution rates and authorize the appropriation
in the Budget Act.
(b) In the event a memorandum of understanding goes into effect
pursuant to the Ralph C. Dills Act (Chapter 10.3 (commencing with
Section 3512) of Division 4 of Title 1) that was not previously
considered by the board in adopting its most recent annual employer
contribution rates and that memorandum of understanding contains a
change in employee retirement contributions, benefits, or pension
plan design, including a change that alters a state employee's
retirement contributions, or there is a change in unrepresented
employees' retirement contributions, benefits, or pension plan design
to be consistent with those of related classifications and groups of
represented employees, the board may, in its discretion, adopt new
quarterly employer contribution rates for future contributions for
the state plans to reflect these changes. If the board adopts new
rates for the state plans to reflect a change in employee retirement
contributions, benefits, or pension plan design, the Director of
Finance shall reduce or increase the percentage levels of the state's
retirement contribution to reflect the new rates. Nothing in this
section shall require the board to take action as described herein
unless the board determines, in good faith, that the action described
herein is consistent with the fiduciary responsibilities of the
board described in Section 17 of Article XVI of the California
Constitution.
(b)
(c) The employer contribution rates for all other
public employers under this system shall be determined on an annual
basis by the actuary and shall be effective on the July 1 following
notice of a change in rate.
SEC. 4. Section 21221 of the Government Code is amended to read:
21221. A retired person may serve without reinstatement from
retirement or loss or interruption of benefits provided by this
system, as follows:
(a) As a member of any board, commission, or advisory committee,
upon appointment by the Governor, the Speaker of the Assembly, the
President pro Tempore of the Senate, director of a state department,
or the governing board of the contracting agency. However, the
appointment shall not be deemed employment within the meaning of
Division 4 (commencing with Section 3200) and Division 4.5
(commencing with Section 6100) of the Labor Code, and shall not
provide a basis for the payment of workers' compensation to a retired
state employee or to his or her dependents.
(b) As a school crossing guard.
(c) As a juror or election officer.
(d) As an elective officer on and after September 15, 1961.
However, all rights and immunities which may have accrued under
Section 21229 as it read prior to that section's repeal during the
1969 Regular Session of the Legislature are hereby preserved.
(e) As an appointive member of the governing body of a contracting
agency. However, the compensation for that office shall not exceed
one hundred dollars ($100) per month.
(f) Upon appointment by the Legislature, or either house, or a
legislative committee to a position deemed by the appointing power to
be temporary in nature.
(g) Upon employment by a contracting agency to a position found by
the governing body, by resolution, to be available because of a
leave of absence granted to a person on payroll status for a period
not to exceed one year and found by the governing body to require
specialized skills. The temporary employment shall be terminated at
the end of the leave of absence. Appointments under this section
shall be reported to the board and shall be accompanied by the
resolution adopted by the governing body.
(h) Upon interim appointment by the governing body of a
contracting agency to a vacant position dur
ing recruitment for a permanent appointment and deemed by
the governing body to be of a limited duration and requiring
to require specialized skills or during an
emergency to prevent stoppage of public business. These appointments,
in addition to including any made
pursuant to Section 21224 or 21229 , shall not exceed a
total for all employers of 960 hours in any fiscal year. The
compensation for the interim appointment shall not exceed the maximum
published pay schedule for the vacant position. When an
appointment is expected to, or will, exceed 960 hours in any fiscal
year, the governing body shall request approval from the board to
extend the temporary employment. The governing body shall present a
resolution to the board requesting action to allow or disallow the
employment extension. The resolution shall be presented prior to the
expiration of the 960 hour maximum for the fiscal year. The
appointment shall continue until notification of the board's decision
is received by the governing body. The appointment shall be deemed
approved if the board fails to take action within 60 days of
receiving the request. Appointments under this subdivision may not
exceed a total of 12 months. The governing body of a contracting
agency shall appoint a retired person only once under this
subdivision. The interim appo intment made under this
subdivision shall not continue under Section 21224 or 21229 after the
12 months.
(i) Upon appointment by the Administrative Director of the Courts
to the position of Court Security Coordinator, a position deemed
temporary in nature and requiring the specialized skills and
experience of a retired professional peace officer.
SEC. 5. Section 21224 of the Government Code is amended to read:
21224. (a) A retired person may serve without reinstatement from
retirement or loss or interruption of benefits provided by this
system upon temporary appointment by the appointing power
of a state agency or public agency employer either during an
emergency to prevent stoppage of public business or because the
retired employee has specialized skills needed in
performing work of limited duration. These appointments shall not
exceed a total for all employers of 960 hours in any fiscal year, and
the rate of pay for the employment shall not be less than the
minimum, nor exceed that paid by the employer to other employees
performing comparable duties.
(b) (1) This section shall not apply to any retired person
otherwise eligible if during the 12-month period prior to an
appointment described in this section the retired person received any
unemployment insurance compensation arising out of prior employment
subject to this section with the same employer.
(2) A retired person who accepts an appointment after receiving
unemployment insurance compensation as described in this subdivision
shall terminate that employment on the last day of the current pay
period and shall not be eligible for reappointment subject to this
section for a period of 12 months following the last day of
employment. The retired person shall not be subject to Section 21202
or subdivision (b) of Section 21220.
SEC. 6. Section 21228 of the Government Code is amended to read:
21228. A person retired for disability who has not attained the
mandatory age for retirement applicable to persons in the employment
in which he or she will be employed, and whom the board finds not
disabled for that employment, may be employed by any employer without
reinstatement from retirement in a position other than that from
which he or she retired or a position in the same member
classification. His or her disability retirement pension shall be
reduced during that employment to an amount that, when added to the
compensation received, shall equal the maximum compensation earnable
by a person holding the position that he or she held at the time of
his or her retirement. Any employment shall terminate upon his or her
attainment of the mandatory retirement age for persons in that
employment. A person employed under this section shall not be
concurrently employed under Section 21224, 21225, 21226,
21227, or 21229, or subdivision (h) of Section 21221.
SEC. 7. Section 21229 of the Government Code is amended to read:
21229. (a) A retired person may serve without reinstatement from
retirement or loss or interruption of benefits provided by this
system upon temporary appointment by a school employer or
by the Trustees of the California State University either during an
emergency to prevent stoppage of public business or because the
retired employee has specialized skills needed in
performing specialized work of limited duration,
if that service does not exceed, in a fiscal year, a total of 960
hours for all employers. The retired person's rate of pay for this
employment shall not be less than the minimum, nor exceed that paid
by the employer to other employees performing comparable duties.
(b) (1) This section shall not apply to a retired person otherwise
eligible to serve without reinstatement from retirement, if during
the 12-month period prior to an appointment described in this
section, that retired person receives unemployment insurance
compensation arising out of prior employment subject to this section
with the same employer.
(2) A retired person who accepts an appointment after receiving
unemployment insurance compensation as described in this subdivision
shall terminate that employment on the last day of the current pay
period and shall not be eligible for reappointment subject to this
section for a period of 12 months following the last day of
employment. The retired person shall not be subject to Section 21202
or subdivision (b) of Section 21220.
SEC. 8. Section 21490 of the Government Code is amended to read:
21490. (a) Except as provided in subdivision (b), a member may at
any time, including, but not limited to, at any time after reaching
retirement age, designate a beneficiary to receive the benefits as
may be payable to his or her beneficiary or estate under this part,
by a writing filed with the board. A writing filed with the
board may include a will or trust if the document lists the
retirement benefit as an asset. A will or trust may also be accepted
as a writing filed with the board if the will or trust disinherits
one or all of either the previously designated beneficiary or closest
survivor as listed in Section 21493. A will or trust that is
accepted as a writing filed with the board shall be deemed to
designate the estate or trust as a beneficiary.
(b) (1) No designation may be made in derogation of the community
property share of any nonmember spouse when any benefit is derived,
in whole or in part, from community property contributions or service
credited during the period of marriage, unless the nonmember spouse
has previously obtained an alternative order for division pursuant to
Section 2610 of the Family Code.
(2) No designation may be made by an unmarried member who has
attained the minimum age for voluntary service retirement applicable
to the member in his or her last employment preceding death if that
designation is in derogation of the rights of the member's unmarried,
dependent children who are under the age of 18 years at the time of
the member's death.
(c) The designation, subject to conditions imposed by board rule,
may be by class, in which case the members of the class at the time
of the member's death shall be entitled as beneficiaries. The
designation shall also be subject to the board's conclusive
determination, upon evidence satisfactory to it, of the existence,
identity or other facts relating to entitlement of any person
designated as beneficiary, and payment made by this system in
reliance on any determination made in good faith, notwithstanding
that it may not have discovered a beneficiary otherwise entitled to
share in the benefit, shall constitute a complete discharge and
release of this system for further liability for the benefit.
SEC. 9. Section 21493 of the Government Code is amended to read:
21493. (a) If a person had no beneficiary designation in effect
on the date of death, any benefit payable shall be paid to the
survivors of the person in the following order:
(1) The decedent's spouse.
(2) The decedent's natural or adopted children, including a
natural child adopted by another who meets the following criteria:
(A) The natural parent and adopted child lived together at any
time as parent and child or the natural parent was married to or was
cohabiting with the other natural parent at the time the child was
conceived and died before the birth of the child; and
(B) The child was adopted by the spouse of either of the natural
parents or after the death of either of the natural parents or the
child is a natural child adopted by another as that phrase is defined
or construed by the Probate Code.
(3) The decedent's parents.
(4) The decedent's brothers and sisters.
(b) If a deceased person had no effective beneficiary designation
and there are no survivors in the groups specified in subdivision (a)
who are entitled to the benefit under this section, the benefit
shall be paid to the estate of the decedent, if the estate is either
probated or subject to probate. Any benefit payable by this system
may be paid either to the estate or to the duly authorized
representative or representatives of the estate upon receipt by this
system of a court order appointing an executor, administrator, or
personal representative. If the estate is handled by a Public
Administrator, the benefit may be paid upon receipt b y
this system of a court order authorizing the Public Administrator to
proceed summarily pursuant to paragraph (1) of subdivision (a) of
Section 7660 of the Probate Code.
(c) If there are no survivors in the groups specified in
subdivision (a) and the estate of the person described in subdivision
(b) does not require probate, irrespective of whether probate is
filed, or is not handled by a Public Administrator pursuant to a
court order authorizing the Public Administrator to proceed
summarily pursuant to paragraph (1) of subdivision (a) of Section
7660 of the Probate Code, the benefit shall be paid directly to
the decedent's trust.
(d) If there are no survivors in the groups specified in
subdivision (a) and the estate of the person described by subdivision
(b) does not require probate, irrespective of whether probate is
filed, or is not handled by a Public Administrator pursuant to a
court order authorizing the Public Administrator to proceed
summarily pursuant to paragraph (1) of subdivision (a) of Section
7660 of the Probate Code and the decedent has not established a
trust as described by subdivision (c), the benefit shall be paid
directly to the surviving next of kin in the following order.
(1) Stepchildren.
(2) Grandchildren, including stepgrandchildren.
(3) Nieces and nephews.
(4) Great grandchildren.
(5) Cousins.
(e) For purposes of determining the application of subdivisions
(b), (c), and (d) the amount of the benefit payable from this system
shall not be included in calculating the worth of the estate.
(f) For purposes of this section, the term "stepchild" shall mean
a person who had a regular parent-child relationship with the
deceased person.
SEC. 10. Section 21506 of the Government Code is amended to read:
21506. Any monthly allowance payable to a person, that had
accrued and remained unpaid at the time of his or her death, or any
uncashed warrant issued prior to the date of death of the person that
has been returned to this system, or any balance of prepaid
complementary health premiums received pursuant to Section 21691 or
prepaid complementary annuitant health plan premiums received
pursuant to Section 22802, shall be paid in the following order:
(a) In the event of the death of a retired person, to one of the
following:
(1) The beneficiary entitled to payment in accordance with an
optional settlement chosen by the member.
(2) The survivor entitled to payment of the survivor continuance
benefit provided under Section 21624.
(3) The beneficiary entitled to receive the lump-sum death benefit
provided upon death of a retired person if the person had not chosen
an optional settlement and there was no survivor who was entitled to
receive the survivor continuance benefit.
(b) In the event of the death of a person receiving a survivor
benefit, that benefit shall be paid to the beneficiary designated by
the survivor of a member under Section 21491.
(c) If there is no beneficiary entitled to receive payment under
either subdivision (a) or (b), the benefit shall be paid to either
the estate of the deceased person or the duly authorized
representative or representatives of the estate upon receipt by this
system of a court order appointing an executor, administrator,
or personal representative or Public
Administrator pursuant to a court order authorizing the Public
Administrator to proceed summarily pursuant to paragraph (1) of
subdivision (a) of Section 7660 of the Probate Code . If the
estate does not require probate or is not handled by a Public
Administrator pursuant to a court order authorizing
the Public Administrator to proceed
summarily pursuant to paragraph (1) of subdivision (a) of Section
7660 of the Probate Code and the deceased person had a trust,
benefits may, in the judgment of the board, be paid to the successor
trustee as named in the trust.
(d) If there is no beneficiary entitled to receive payment of
benefits under subdivision (a), (b), or (c), the benefits shall be
paid to the surviving next of kin of the person pursuant to the order
of distribution specified in Section 21493.
SEC. 11. 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 is handled by a Public Administrator, the benefit may
be paid upon receipt by this system of a court order authorizing the
Public Administrator to proceed summarily pursuant to paragraph (1)
of subdivision (a) of Section 7660 of the Probate Code. If the
estate does not require probate or is not handled by a Public
Administrator pursuant to a court order authorizing the Public
Administrator to proceed summarily pursuant to paragraph (1) of
subdivision (a) of Section 7660 of the Probate Code , 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. 12. Section 21533.5 is added to the Government Code, to read:
21533.5. (a) To the extent required by Section 401(a) of Title 26
of the United States Code, if a member dies while performing
qualified military services, the survivors of the member shall be
entitled to any additional benefits, as determined under Section 401
(a)(37) of Title 26 of the United States Code, that would have been
provided under the system had the member resumed his or her prior
employment with an employer that maintains the system and then
terminated employment on account of death. Death of a member while
performing qualified military service shall not be treated as a
service-connected death or disability. Service for vesting shall be
credited to a member affected by this section for the period of his
or her qualified military service.
(b) "Additional benefits" under this section shall not include
benefit accruals relating to the period of qualified military
service.