Bill Text: CA AB2404 | 2015-2016 | Regular Session | Chaptered
Bill Title: Public Employees' Retirement System: optional settlements.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2016-08-26 - Chaptered by Secretary of State - Chapter 199, Statutes of 2016. [AB2404 Detail]
Download: California-2015-AB2404-Chaptered.html
BILL NUMBER: AB 2404 CHAPTERED
BILL TEXT
CHAPTER 199
FILED WITH SECRETARY OF STATE AUGUST 26, 2016
APPROVED BY GOVERNOR AUGUST 26, 2016
PASSED THE SENATE AUGUST 11, 2016
PASSED THE ASSEMBLY AUGUST 15, 2016
AMENDED IN SENATE AUGUST 2, 2016
AMENDED IN SENATE JUNE 13, 2016
AMENDED IN ASSEMBLY APRIL 12, 2016
AMENDED IN ASSEMBLY MARCH 15, 2016
INTRODUCED BY Assembly Member Cooley
FEBRUARY 19, 2016
An act to amend Sections 21356, 21357, 21385, 21450, 21451, 21452,
21453, 21454, 21455, 21456, 21457, 21458, 21459, 21460, 21461,
21461.5, 21462, 21463, 21464, 21465, 21492, 21503, 21504, 21505,
21530, 21547, 21547.7, 21548, 21604, 21625, 21628, 21629, 21630,
21631, 21632, 21633, 21752, 75070, 75071, 75073, 75094, 75522, 75570,
75571, 75573, and 75590, to amend the heading of Article 6
(commencing with Section 21450) of Chapter 13 of Part 3 of Division 5
of Title 2 of, to add Sections 75070.5, 75071.5, 75570.5, and
75571.5 to, and to add Article 7 (commencing with Section 21470) to
Chapter 13 of Part 3 of Division 5 of Title 2 of, the Government
Code, relating to retirement benefits.
LEGISLATIVE COUNSEL'S DIGEST
AB 2404, Cooley. Public Employees' Retirement System: optional
settlements.
Existing law creates the Public Employees' Retirement System
(PERS), the Judges' Retirement System, and the Judges' Retirement
System II, all of which are administrated by the Board of
Administration of the Public Employees' Retirement System. Existing
law permits a member of the Public Employees' Retirement System to
elect from among several optional settlements for the purpose of
structuring his or her retirement allowance, which may result in a
reduction of the allowance paid to the member in relation to the
payments to his or her beneficiary after the member's death. Existing
law includes among these options the following: optional settlement
1, which provides for payment of a retirement allowance until death
and the payment of any remaining contributions at death to his or her
beneficiary or estate; optional settlement 2, which provides an
allowance for life to the member and thereafter to his or her
beneficiary; optional settlement 3, which provides an allowance for
life to the member and thereafter 1/2 of his or her allowance to his
or her beneficiary; optional settlement 4, which provides for such
other benefits that are the actuarial equivalent of a member's
retirement allowance, subject to approval of the board and that the
benefits payable not exceed actuarial equivalent of benefits under
optional settlement 2, as specified; and optional settlement 5, which
provides for a partial present distribution of the actuarial present
value of a portion of a member's unmodified monthly allowance, as
specified. Existing law entitles a member to elect certain variations
within these settlements and, in certain instances, to a
recalculated, increased allowance if the beneficiary predeceases the
member, subject to a specified, sinking percentage. Existing law
similarly permits a member of the Judges' Retirement System or the
Judges' Retirement System II to select from various optional
settlements for the purpose of structuring his or her retirement
benefits.
This bill would limit the application of the optional settlements
and variations described above to PERS members who retire on or
before December 31, 2017. For members who retire on or after January
1, 2018, the bill would revise and recast the optional retirement
settlements, which would be termed the Return of Remaining
Contributions Option 1, the 100 Percent Beneficiary Option 2, the 100
Percent Beneficiary Option 2 with Benefit Allowance Increase, the 50
Percent Beneficiary Option 3, the 50 Percent Beneficiary Option 3
with Benefit Allowance Increase, and the Flexible Beneficiary Option
4. The bill would revise and bring forward various administrative
provisions in connection with these settlements, including those
relating to adjustments of actuarial equivalents by the board, the
effective dates for elections and revocations and dates of payments,
the effect of dissolution of marriage, and of a beneficiary
predeceasing a member, among others. The bill would similarly limit
application of current optional settlements and variations described
above to members of the Judges' Retirement System or the Judges'
Retirement System II who retire on or before December 31, 2017, and
would provide to members of those systems who retire on and after
January 1, 2018, optional retirement settlements analogous to those
provided to PERS members, as described above. The bill would make
conforming and technical changes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 21356 of the Government Code is amended to
read:
21356. (a) A member who elects, pursuant to Article 1.7
(commencing with Section 19996.30) of Chapter 7 of Part 2.6 or
pursuant to Sections 21110 through 21115, to participate in partial
service retirement, while so participating, shall receive a reduced
service retirement allowance. The reduced service retirement
allowance shall be the amount of the service retirement allowance to
which the employee would otherwise have been entitled had he or she
fully retired on the effective date of the partial service
retirement, reduced by the percentage of the employee's full-time
work which the employee has elected to work while on partial service
retirement.
(b) Article 6 (commencing with Section 21450) and Article 7
(commencing with Section 21470) shall not apply to an employee who is
participating in reduced worktime for partial service retirement.
(c) For a member who elects pursuant to Article 1.7 (commencing
with Section 19996.30) of Chapter 7 of Part 2.6 or pursuant to
Sections 21110 through 21115 to become fully retired, the current
service pension, or current and prior service pensions, as the case
may be, upon his or her full service retirement shall be (1) the sum
of a current service pension calculated on the basis of service
rendered during participation in reduced worktime in accordance with
the formula applicable to his or her current service pension, plus
his or her current service pension, or current and prior service
pensions, as the case may be, as it was prior to his or her full
service retirement, provided that full service retirement occurs
before he or she renders, while participating in reduced worktime for
partial service retirement, one year of state service credited under
this system; or (2) if he or she has rendered one year or more of
state service while participating in reduced worktime for partial
service retirement, a current service pension, or current and prior
service pensions, as the case may be, based on the total years of
service with which the member is entitled to be credited, calculated
on the basis of the formula currently applicable to the employment in
which the service was rendered. A member shall receive service
credit for service during participation in reduced worktime for
partial retirement and service credited at the time of the election
to participate in reduced worktime for partial retirement.
SEC. 2. Section 21357 of the Government Code is amended to read:
21357. (a) For a member reinstated from service retirement or
partial service retirement, the current service pension, or current
and prior service pensions, as the case may be, upon his or her
service retirement subsequent to the reinstatement, shall be the sum
of (1) a current service pension calculated on the basis of service
rendered after reinstatement in accordance with the formula
applicable to him or her in that service and membership, plus, (2) if
the subsequent retirement occurs before he or she renders, after his
or her reinstatement, at least one year of state service credited
under this system, or if the subsequent service or disability
retirement occurs after his or her reinstatement from service or
disability retirement pursuant to an election under Section 21465 or
21483, his or her current service pension, or current and prior
service pensions, as the case may be, as it was prior to his or her
reinstatement, adjusted for any service on which the pension was
based that was included in coverage of the federal system during
reinstatement according to the formula applicable to the service in
employment for which he or she was retired, and further adjusted
according to any change after reinstatement in the provisions
governing the calculation of his or her pension that would have
applied to him or her had he or she continued in retirement but been
subject to the formula applied in the first adjustment; or, for state
miscellaneous and state industrial service subject to Section 21076,
in lieu of (2), plus (3) a current service pension, or current and
prior service pensions, as the case may be, as it would have been
prior to his or her reinstatement under the formula applicable to
Section 21076, adjusted for any service on which the pension was
based that was included in coverage of the federal system during
reinstatement according to the formula applicable to the service in
employment for which he or she was retired, and further adjusted
according to any change after reinstatement in the provisions
governing the calculations of his or her pension that would have
applied to him or her had he or she continued in retirement and been
subject to the formula applicable to Section 21076, or if he or she
has rendered one year or more of state service after reinstatement,
in lieu of (2) or (3), plus (4), a current service pension based on
current service rendered prior to reinstatement, calculated on the
basis of the formula currently applicable to the employment in which
the service was rendered but on the basis of an age taken to the
preceding completed quarter year but not less than the minimum
retirement age applicable to him or her at his or her last retirement
and determined by deducting from his or her age at his or her
subsequent retirement, the aggregate time during which he or she was
under retirement. For a member reinstated from nonindustrial
disability retirement, the current service pension upon his or her
service retirement after attaining an age one year less than the
minimum age at which he or she could have retired without an
actuarial discount because of age in the employment from which he or
she was last retired, or upon his or her disability retirement after
attaining the minimum age, and subsequent to reinstatement, shall be
calculated in the manners described in the preceding sentence, but
the age determined upon subsequent retirement after rendering at
least one year of state service credited under this system shall not
be taken at less than one year less than the minimum age if the
subsequent retirement is for service, or the minimum age if the
retirement is for disability.
(b) The current service pension otherwise payable under this
section to a member whose allowance prior to reinstatement was paid
pursuant to his or her election under Section 21461, 21461.5, 21479,
or 21480 shall be reduced by the actuarial equivalent, on the date of
retirement subsequent to reinstatement, of the amount (converted as
below), if any, by which:
(1) The total amount paid in the period during which a temporary
annuity was included in the payments, reduced by the total amount
that would have been payable during that period had the election not
been made, exceeds
(2) The excess of the total amount that would have been payable,
had the election not been made, during the time subsequent to that
period and prior to reinstatement, over the total amount actually
paid during that time.
The amount determined by the above formula shall be converted to
an amount equaling the actuarial equivalent on the date of
reinstatement and this latter amount shall be the basis of the
actuarial equivalent on the date of retirement subsequent to
reinstatement.
Actuarial equivalents required by this section shall be based on
the interest rate and mortality tables in use by this system on the
date of retirement subsequent to reinstatement.
(c) Notwithstanding this section, or any other provision of this
part, the current service pension payable to any member subject to
this section who rendered one year or more of state service credited
under this system after reinstatement on retirement for service
subsequent to reinstatement from service retirement for any credited
service for which a current service pension was paid prior to
reinstatement shall not be less than the current service pension that
would be payable on the date of the subsequent retirement had the
member not been reinstated. For state miscellaneous and state
industrial service subject to Section 21076, the current service
pension payable for any credited service for which a current service
pension was paid prior to reinstatement shall not be less than the
current service pension that would have been payable on the date of
the subsequent retirement had the member's retirement been subject to
the formula under Section 21076 and had not been reinstated,
adjusted, however, by any reduction under this section because of an
election under Section 21461, 21461.5, 21479, or 21480 and, for any
service so credited that was included in coverage of the federal
system during reinstatement, according to the formula applicable to
the service in employment from which he or she was retired.
SEC. 3. Section 21385 of the Government Code is amended to read:
21385. The prior service pension of a member reinstated from
service retirement, upon his or her subsequent service retirement,
shall be in the same amount as his or her prior service pension prior
to his or her reinstatement, adjusted for any service on which the
pension was based that was included in coverage of the federal system
during reinstatement according to the formula applicable to the
service in employment from which he or she was retired, and further
adjusted according to any change in the provisions governing the
calculation of the pensions, using the formula applied in the first
adjustment, made after the reinstatement and applicable to pensions
being paid at the date of the change if the subsequent retirement
occurs before he or she renders after his or her reinstatement at
least one year of state service credited under this system.
Otherwise, the prior service pension calculated on the basis of an
age, taken to the preceding completed quarter year but not less than
the minimum retirement age applicable to him or her at his or her
last retirement, and determined by deducting from his or her age at
his or her subsequent retirement, the aggregate time during which he
or she was under retirement. For such a member reinstated from
nonindustrial disability retirement, the prior service pension upon
his or her service retirement after attaining an age one year less
than the minimum age at which he or she could have retired without an
actuarial discount because of age in the employment from which he or
she was last retired, or upon his or her disability retirement after
attaining the minimum age, and subsequent to reinstatement, shall be
calculated in the manners described in the preceding sentence, but
the age determined upon subsequent retirement after rendering at
least one year of state service, shall not be taken at less than one
year less than the minimum age if the subsequent retirement is for
service, or the minimum age if the retirement is for disability.
The prior service pension otherwise payable under this section to
a member whose allowance prior to reinstatement was paid pursuant to
his or her election under Section 21461, 21461.5, 21479, or 21480
shall be reduced by the actuarial equivalent, on the date of
retirement subsequent to reinstatement, of the amount, if any
(converted as below), by which:
(a) The total amount paid in the period during which a temporary
annuity was included in the payments, the amount being reduced by the
total amount that would have been payable during the period had the
election not been made; exceeds
(b) The excess of the total amount that would have been payable,
had the election not been made, during the time subsequent to the
period and prior to reinstatement over the total amount actually paid
during that time.
The amount determined by the above formula shall be converted to
an amount equaling the actuarial equivalent on the date of
reinstatement. The latter amount shall be the basis of the actuarial
equivalent, on the date of retirement subsequent to reinstatement.
Actuarial equivalents required by this section shall be based on
the interest rate and mortality tables in use by this system on the
date of retirement subsequent to reinstatement.
Notwithstanding this section, or any other provision of this part,
the prior service pension payable to any member subject to this
section who rendered one year or more of state service credited under
this system after reinstatement on retirement for service subsequent
to reinstatement from service retirement for any credited service
for which a prior service pension was paid prior to reinstatement
shall not be less than the prior service pension that would be
payable on the date of the subsequent retirement had the member not
been reinstated, adjusted, however, by any reduction under this
section because of an election under Section 21461, 21461.5, 21479,
or 21480 and, for any service so credited that was included in
coverage of the federal system during reinstatement, according to the
formula applicable to the service in employment from which he or she
was retired.
SEC. 4. The heading of Article 6 (commencing with Section 21450)
of Chapter 13 of Part 3 of Division 5 of Title 2 of the Government
Code is amended to read:
Article 6. Optional Settlements Prior to January 1, 2018
SEC. 5. Section 21450 of the Government Code is amended to read:
21450. This system shall provide to any member who requests
materials relating to retirement, a written explanation of the
effects, if any, of each possible decision relating to the selection
of optional settlements, beneficiaries, and survivor benefits upon
health benefits that are provided pursuant to Part 5 (commencing with
Section 22750).
This section shall apply to any member who retires on or before
December 31, 2017.
SEC. 6. Section 21451 of the Government Code is amended to read:
21451. In lieu of the retirement allowance for his or her life
alone, a member or retired member may elect, or revoke or change a
previous election prior to the approval of the previous election, to
have the actuarial equivalent of his or her retirement allowance as
of the date of retirement applied to a lesser retirement allowance,
in accordance with one of the optional settlements specified in this
article. The election or revocation or change thereof, with respect
to a member subject to Section 21624, 21629, or 21630 at retirement,
shall apply to all of the retirement allowance, if, at the effective
date of retirement, the member has no spouse, children, or dependent
parents who would qualify for an allowance under Section 21624,
21629, or 21630, as applicable, after the death of the member; or, if
at retirement there are persons who would so qualify, then the
election, or revocation, or change thereof, with respect to any
optional settlement other than optional settlement one, shall apply
only to the portion of the allowance that exceeds the amount of the
allowance payable to the survivor.
An actuarial equivalent under this article may be adjusted by the
board for the intervals and upon the effective dates determined by
the board.
This section shall apply to any member who retires on or before
December 31, 2017.
SEC. 7. Section 21452 of the Government Code is amended to read:
21452. The lesser retirement allowance under an optional
settlement elected at retirement for law enforcement members whose
retirement is effective prior to October 1, 1965, and who are
entitled to receive benefits under the federal system, shall be
actuarially equivalent to that part of the retirement allowance that
is subject to option pursuant to Section 21451 that would have been
payable at retirement had no optional settlement been elected after
taking into consideration the reduction in the allowance provided for
in former Section 21252.10, as amended by Chapter 1657 of the
Statutes of 1971. Upon the election of an optional settlement by a
member who has not attained the federal retirement age the board
shall estimate the federal benefit upon the basis of information then
available to it. If the death of the member should occur before he
or she has attained the federal retirement age payments under the
optional settlement elected shall be as estimated. If the member
attains the federal retirement age, the board shall then recalculate
the lesser retirement allowance payable under the optional settlement
upon the basis of the age of the member and the beneficiary on the
effective date of retirement, actuarial tables then in use and the
federal benefit.
This section shall apply to any member who retires on or before
December 31, 2017.
SEC. 8. Section 21453 of the Government Code is amended to read:
21453. An election, revocation, or change of election shall be
made within 30 calendar days after the making of the first payment on
account of any retirement allowance or, in the event of a change of
retirement status after retirement, within 30 calendar days after the
making of the first payment on account of any retirement allowance
following the change in retirement status. "Change in retirement
status" includes, but is not limited to, change from service to
disability retirement, from disability retirement to service
retirement, from nonindustrial disability retirement to industrial
disability retirement, or from industrial to nonindustrial disability
retirement.
For purposes of this section, payment shall be deemed to have been
made on the date a warrant is mailed, or the date funds are
electronically transferred to a bank, savings and loan association,
or credit union account for deposit in the member's account.
This section shall not be construed to authorize a member to
change his or her retirement status after the election, revocation,
or change of election provided in this section.
This section shall apply to any member who retires on or before
December 31, 2017.
SEC. 9. Section 21454 of the Government Code is amended to read:
21454. Notwithstanding Section 21453, an election of optional
settlement 2 or 3, or optional settlement 4 involving life
contingency in which a spouse is designated as the beneficiary, may
be modified as provided in this section in the event of a dissolution
or annulment of the marriage or a legal separation in which the
division of the community property awards the total interest in the
retirement system to the retired member. The modification shall
provide that payment shall be continued during the retired person's
lifetime in accordance with the optional settlement then in effect
but that no monthly allowance shall be paid following the retired
person's death, and in lieu thereof there shall be paid in a lump sum
to the member's estate or a beneficiary designated by him or her the
amount, if any, by which the member's accumulated contributions at
retirement exceed the total payments made to the retired person to
the date of his or her death.
This section shall apply to any member who retires on or before
December 31, 2017.
SEC. 10. Section 21455 of the Government Code is amended to read:
21455. Optional settlement 1 consists of the right to have a
retirement allowance paid to the member until his or her death and if
the member dies before he or she receives in annuity payments the
amount of his or her accumulated contributions at retirement, to have
the balance at death paid to his or her beneficiary or estate.
This section shall apply to any member who retires on or before
December 31, 2017.
SEC. 11. Section 21456 of the Government Code is amended to read:
21456. Optional settlement 2 consists of the right to have a
retirement allowance paid to a member until his or her death and
thereafter to his or her beneficiary for life.
If the beneficiary predeceases the member and the member elected
this section to be effective on or after January 1, 1990, the member'
s allowance shall be adjusted effective the first of the month
following the death of the beneficiary, to reflect the benefit that
would have been paid had the member not selected an optional
settlement.
If a nonspouse beneficiary waives entitlement to this allowance
and the member elected this section to be effective on or after
January 1, 1993, the member's allowance shall be adjusted effective
the first of the month following the receipt of the waiver of the
allowance entitlement from the nonspouse beneficiary to reflect the
benefit that would have been paid had the member not selected an
optional settlement.
If the marriage of a member is dissolved or annulled or there is a
legal separation between the member and the beneficiary spouse and
the judgment dividing the community property awards the total
interest in this system to the member, and the member elects this
section to be effective on or after January 1, 1994, the member's
allowance shall be adjusted effective the first of the month
following the filing of the judgment with the board to reflect the
benefit that would have been paid had the member not selected an
optional settlement.
If the beneficiary spouse predeceases the member on or after
January 1, 1990, and the member elected this section to be effective
prior to January 1, 1990, the member's allowance shall be adjusted
effective the first of the month following the death of the
beneficiary spouse to reflect a new allowance as calculated below.
If the nonspouse beneficiary waives entitlement to this allowance
on or after January 1, 1993, and the member elected this section to
be effective prior to January 1, 1993, the member's allowance shall
be adjusted, effective the first of the month following receipt by
the board of the waiver of entitlement from the nonspouse
beneficiary, to reflect a new allowance as calculated below.
If the marriage of a member is dissolved or annulled or there is a
legal separation between the member and the beneficiary spouse and
the judgment dividing the community property awards the total
interest in the retirement system to the member, and the member
elected this section to be effective prior to January 1, 1994, the
member's allowance shall be adjusted, effective the first of the
month following the filing of the judgment with the board to reflect
a new allowance as calculated below. The qualifying event shall be
the date on which the judgment is filed with the board.
A percentage factor shall be applied to the difference between the
member's unmodified allowance and optional settlement 2 allowance,
both of which shall include applicable cost-of-living increases. The
product of this equation shall then be added to the member's optional
settlement 2 allowance and the total amount shall become the member'
s base allowance. The percentage factor applicable to each member
shall be determined by the time between the member's retirement
effective date and the date of death of the beneficiary spouse or by
the time between the member's retirement effective date and the date
of the receipt of either the waiver of the allowance entitlement or
the judgment of dissolution, annulment, or legal separation according
to the following table:
Period between the
member's retirement
effective date and the
date of the qualifying
event Percentage
Less than 12 months 95%
12 months through 23 months 85%
24 months through 35 months 75%
36 months through 47 months 65%
48 months through 59 months 55%
60 months through 71 months 45%
72 months through 83 35%
months
84 months through 95 months 25%
96 months through 107 15%
months
108 months through 119 5%
months
120 months or more 0%
Nothing in this section shall result in additional cost to the
employer.
This section shall apply to any member who retires on or before
December 31, 2017.
SEC. 12. Section 21457 of the Government Code is amended to read:
21457. Optional settlement 3 consists of the right to have a
retirement allowance paid to a member until his or her death, and
thereafter to have one-half of his or her retirement allowance paid
to his or her beneficiary for life.
If the beneficiary predeceases the member and the member elected
this section to be effective on or after January 1, 1990, the member'
s allowance shall be adjusted effective the first of the month
following the death of the beneficiary, to reflect the benefit that
would have been paid had the member not selected an optional
settlement.
If the marriage of a member is dissolved or annulled or there is a
legal separation between the member and the beneficiary spouse and
the judgment dividing the community property awards the total
interest in this system to the member, and the member elects this
section to be effective on or after January 1, 1994, the member's
allowance shall be adjusted effective the first of the month
following the filing of the judgment with the board to reflect the
benefit that would have been paid had the member not selected an
optional settlement.
If a nonspouse beneficiary waives entitlement to this allowance
and the member elected this section to be effective on or after
January 1, 1993, the member's allowance shall be adjusted, effective
the first of the month following the receipt of the waiver of the
allowance entitlement from the nonspouse beneficiary, to reflect the
benefit that would have been paid had the member not selected an
optional settlement.
If the beneficiary spouse predeceases the member on or after
January 1, 1990, and the member elected this section to be effective
prior to January 1, 1990, the member's allowance shall be adjusted
effective the first of the month following the death of the
beneficiary spouse to reflect a new allowance as calculated below.
If the marriage of a member is dissolved or annulled or there is a
legal separation between the member and the beneficiary spouse and
the judgment dividing the community property awards the total
interest in the retirement system to the member, and the member
elected this section to be effective prior to January 1, 1994, the
member's allowance shall be adjusted, effective the first of the
month following the filing of the judgment with the board to reflect
a new allowance as calculated below. The qualifying event shall be
the date on which the judgment is filed with the board.
If the nonspouse beneficiary waives entitlement to this allowance
on or after January 1, 1993, and the member elected this section to
be effective prior to January 1, 1993, the member's allowance shall
be adjusted, effective the first of the month following receipt by
the board of the waiver of entitlement from the nonspouse
beneficiary, to reflect a new allowance as calculated below.
A percentage factor shall be applied to the difference between the
member's unmodified allowance and optional settlement 3 allowance,
both of which shall include
applicable cost-of-living increases. The product of this equation
shall then be added to the member's optional settlement 3 allowance
and the total amount shall become the member's base allowance. The
percentage factor applicable to each member shall be determined by
the time between the member's retirement effective date and the date
of death of the beneficiary spouse or by the time between the member'
s retirement effective date and the date of the receipt of either the
waiver of the allowance entitlement or the judgment of dissolution,
annulment, or legal separation according to the following table:
Period between the
member's retirement
effective date and the
date of the qualifying
event Percentage
Less than 12 months 95%
12 months through 23 months 85%
24 months through 35 months 75%
36 months through 47 months 65%
48 months through 59 months 55%
60 months through 71 months 45%
72 months through 83 35%
months
84 months through 95 months 25%
96 months through 107 15%
months
108 months through 119 5%
months
120 months or more 0%
Nothing in this section shall result in additional cost to the
employer.
This section shall apply to any member who retires on or before
December 31, 2017.
SEC. 13. Section 21458 of the Government Code is amended to read:
21458. Optional settlement 4 consists of such other benefits as
are the actuarial equivalent of a member's retirement allowance, that
he or she may select subject to the approval of the board. However,
the actuarial equivalent of benefits under this optional settlement
payable to the member's beneficiary shall not exceed the actuarial
equivalent of the benefits which would be payable to that beneficiary
if the member had elected optional settlement 2 and Section 21459.
The board shall include in each member benefit booklet a specific
illustration of the benefits available under optional settlement 4.
This section shall apply to any member who retires on or before
December 31, 2017.
SEC. 14. Section 21459 of the Government Code is amended to read:
21459. A member who elects to receive optional settlement 2 or 3
may concurrently and irrevocably elect to waive the provision for an
increase to his or her allowance due to the death of his or her
beneficiary and shall, instead, have his or her allowance based upon
the waiver of this benefit.
This section shall apply to any member who retires on or before
December 31, 2017.
SEC. 15. Section 21460 of the Government Code is amended to read:
21460. A member who elects to receive the unmodified allowance or
optional settlement 1, or optional settlement 2, 3, or 4 with or
without making the election specified in Section 21459, and who names
his or her spouse as the option beneficiary, and whose spouse is
also an eligible survivor for the benefits provided by Section 21624,
21626, 21627, 21628, 21629, or 21630, and where the total benefit to
the surviving spouse is at least 50 percent of the member's
unmodified allowance, may concurrently and irrevocably elect to have
his or her allowance paid as a "qualified joint and survivor annuity."
Notwithstanding any other provision of this part, upon the election,
the survivor allowance shall be paid only to the member's spouse and
shall continue to be paid upon the remarriage of the spouse. Any
cost due to this election shall be paid by the member through an
actuarial reduction to his or her allowance.
For purposes of this section, a member's retirement allowance
shall be determined without regard to any limitation required
pursuant to Section 415 of Title 26 of the United States Code but the
amount payable to the spouse shall be subject to those limits as if
it were the retirement allowance of the member.
This section shall apply to any member who retires on or before
December 31, 2017.
SEC. 16. Section 21461 of the Government Code is amended to read:
21461. (a) A member retiring for service may elect to have the
actuarial equivalent of his or her unmodified service retirement
allowance paid in two parts as follows:
(1) A temporary annuity in an amount specified by the member but
which shall not result in a reduction to his or her unmodified
allowance by more than 50 percent.
(2) A life income consisting of his or her service retirement
annuity plus the pension provided by the actuarial value of his or
her current and prior service pensions remaining after providing the
temporary annuity in paragraph (1).
(b) The temporary annuity under subdivision (a) shall not be
subject to further optional settlement under this article and shall
be payable monthly as an addition to the member's monthly life income
beginning on his or her effective date of retirement and continuing
until the member reaches 59 years and six months of age or any whole
age between 60 and 68 years of age, as designated by the member at
the time of his or her retirement. If his or her death occurs prior
to that age, the commuted value of any remaining installments shall
be paid to his or her designated beneficiary in a lump sum.
This section shall apply to any member who retires on or before
December 31, 2017.
SEC. 17. Section 21461.5 of the Government Code is amended to
read:
21461.5. (a) Notwithstanding Section 21461, a member retiring for
service who became a member of the system on or after January 1,
2002, and who is covered under the federal system but is not yet
receiving a retirement or disability benefit under that system, may
elect to have the actuarial equivalent of his or her unmodified
service retirement allowance paid in two parts as follows:
(1) A temporary annuity that shall not exceed the primary social
security benefit that is anticipated the member shall be entitled to
receive at social security retirement age, which age shall be
designated by the member.
(2) A life income consisting of the member's service retirement
annuity plus the pension provided by the actuarial value of the
member's current and prior service pensions remaining after providing
the temporary annuity in paragraph (1).
(b) The temporary annuity under paragraph (1) of subdivision (a)
shall not be subject to further optional settlement under this
article and shall be payable monthly as an addition to the member's
monthly life income beginning on the member's effective date of
retirement and continuing until the retired member attains the age
designated by the member under subdivision (a). If the member dies
prior to the designated age, the commuted value of any installments
payable for the period remaining until the member would have attained
that age shall be paid to the member's designated beneficiary in a
lump sum.
This section shall apply to any member who retires on or before
December 31, 2017.
SEC. 18. Section 21462 of the Government Code is amended to read:
21462. (a) (1) Notwithstanding any other provision of this part,
a member who elected to receive optional settlement 2, 3, or 4,
involving a life contingency of the beneficiary, may, if the
beneficiary predeceases the member or if the member marries and the
former spouse was not named as beneficiary, or, if a former spouse
was named, in the event of a dissolution or annulment of the marriage
or a legal separation in which the judgment dividing the community
property awards the total interest in the retirement system to the
retired member, elect to have the actuarial equivalent reflecting any
selection against the fund resulting from the election as of the
date of election of the allowance payable for the remainder of the
member's lifetime under the optional settlement previously chosen
applied to a lesser allowance during the member's remaining lifetime
under one of the optional settlements specified in this article and
name a different beneficiary.
(2) Notwithstanding paragraph (1), for an election pursuant to
this section that occurs on or after January 1, 2014, a member may
name the same beneficiary as previously designated, provided that the
resulting benefit to the member and the named beneficiary otherwise
meets the requirements of this section.
(b) The election shall be made within 12 months following the
death of the beneficiary who predeceased the member or within 12
months of the date of entry of the judgment dividing the community
property of the parties, or within 12 months following marriage if
the spouse is named as beneficiary. The election shall become
effective on the date specified on the election, provided that this
date is not earlier than the day following receipt of the election in
this system pursuant to this section.
(c) A member who has a qualifying event prior to January 1, 1988,
and who fails to elect by January 1, 1989, or a member who has a
qualifying event on or after January 1, 1988, and who fails to elect
within 12 months, shall retain the right to make an election under
this section. However, this election shall become effective no
earlier than 12 months after the date it is filed with the board,
provided that neither the member nor the designated beneficiary die
prior to the effective date of the election.
(d) This section shall not be construed to mean that designation
of a new beneficiary causes the selection of an optional settlement.
An optional settlement shall be selected by a member in a writing
filed by the member with the board.
This section shall apply to any member who retires on or before
December 31, 2017.
SEC. 19. Section 21463 of the Government Code is amended to read:
21463. A member who elected to receive optional settlement 2 or 3
and whose beneficiary predeceases him or her, shall be entitled to
receive the increased allowance pursuant to Section 21456 or Section
21457, as applicable, unless the member elected to waive the
provision for an increase to his or her allowance pursuant to Section
21459.
This section shall apply to any member who retires on or before
December 31, 2017.
SEC. 20. Section 21464 of the Government Code is amended to read:
21464. Notwithstanding any provision of this part, a retired
member who chose no optional settlement or optional settlement 1 at
retirement may elect to have the actuarial equivalent, as of the date
of the election, of the allowance payable for the remainder of his
or her lifetime applied to a lesser allowance during his or her
remaining lifetime under one of the optional settlements specified in
this article and name his or her spouse as beneficiary.
The election provided by this section is irrevocable and shall be
made within 12 months following a member's marriage if the spouse is
named as beneficiary. The election shall become effective on the date
specified on the election, provided that this date is not earlier
than the day following receipt of the election in this system
pursuant to this section.
A member who married prior to or after January 1, 1988, who fails
to elect within 12 months, shall retain the right to make an election
under this section. However, the election shall become effective no
earlier than 12 months after the date it is filed with the board,
provided that neither the member nor the designated beneficiary die
prior to the effective date of the election.
This section shall not be construed to mean that designation of a
new beneficiary causes the selection of an optional settlement. An
optional settlement shall be selected by a member in a writing filed
by the member with the board.
This section shall apply to any member who retires on or before
December 31, 2017.
SEC. 21. Section 21465 of the Government Code is amended to read:
21465. (a) Optional settlement 5 consists of a partial
distribution of the actuarial present value of the portion, as
specified in this section, of the member's unmodified monthly
allowance, as prescribed in Section 21362, 21362.2, 21363, 21363.1,
21363.4, or 21423, when a service retirement allowance is payable.
The actuarial present value shall be based upon the investment return
and postretirement mortality assumptions adopted by the board for
that purpose. The member may elect to receive the actuarial present
value of no less than 20 percent and no more than 50 percent of his
or her unmodified allowance. The member may elect to receive the
remaining portion of the unmodified allowance, not distributed as a
lump-sum payment, under one of the settlements specified in this
article for the remainder of his or her lifetime and thereafter to
his or her designated beneficiary, unless this amount is solely
limited to the survivor continuance portion. The portion of the
unmodified allowance equivalent to the survivor continuance pursuant
to Section 21624 may not be distributed as a lump-sum payment. The
benefits provided under this section may not exceed the benefits that
would have otherwise been provided under any other section in this
article.
(b) This section shall only apply to the following members who
retire on or after January 1, 1999, and on or before December 31,
2017:
(1) State peace officer/firefighter members in State Bargaining
Unit 6.
(2) State peace officer/firefighter members in State Bargaining
Unit 8 and state patrol members in State Bargaining Unit 5, if a
memorandum of understanding has been agreed upon by the state and the
recognized employee organization to become subject to this section.
(3) This section shall also apply to state peace
officer/firefighter members and state patrol members in related
supervisory and confidential positions, if the Department of Human
Resources has approved their inclusion.
SEC. 22. Article 7 (commencing with Section 21470) is added to
Chapter 13 of Part 3 of Division 5 of Title 2 of the Government Code,
to read:
Article 7. Optional Settlements On and After January 1, 2018
21470. This system shall provide to any member who retires on or
after January 1, 2018, and requests materials relating to retirement,
a written explanation of the effects, if any, of each possible
decision relating to the selection of optional settlements,
beneficiaries, and survivor benefits upon health benefits that are
provided pursuant to Part 5 (commencing with Section 22750).
21471. (a) The unmodified allowance consists of the right to have
the maximum retirement allowance paid to a member until his or her
death. There is no continuing allowance to a beneficiary and there is
no return of unused accumulated contributions after the death of the
member.
(b) This section shall apply to any member who retires on or after
January 1, 2018.
21471.1. (a) In lieu of electing the unmodified allowance, a
member may elect to have the actuarial equivalent of his or her
unmodified allowance as of the date of retirement applied to a lesser
retirement allowance, in accordance with one of the optional
settlements specified in this article. The election with respect to a
member subject to Section 21624, 21629, or 21630 at retirement,
shall apply to all of the retirement allowance, if, at the effective
date of retirement, the member has no spouse, children, or dependent
parents who would qualify for an allowance under Section 21624,
21629, or 21630, as applicable, after the death of the member; or, if
at retirement there are persons who would so qualify, then the
election with respect to any optional settlement other than the
optional settlement in Section 21474, shall apply only to the portion
of the allowance that exceeds the amount of the allowance payable to
the survivor.
(b) An actuarial equivalent under this article may be adjusted by
the board for the intervals and upon the effective dates determined
by the board.
(c) This section shall apply to any member who retires on or after
January 1, 2018.
21471.2. If a member elects an optional settlement that provides
for a monthly allowance for his or her named beneficiary or
beneficiaries, the combined allowance payable to the member's named
beneficiary or beneficiaries and the member's survivor pursuant to
Section 21624, 21629, or 21630, if applicable, cannot exceed the
amount of the member's monthly allowance.
21472. (a) An election, revocation, or change of election shall
be made within 30 calendar days after the making of the first payment
on account of any retirement allowance or, in the event of a change
of retirement status after retirement, within 30 calendar days after
the making of the first payment on account of any retirement
allowance following the change in retirement status. "Change in
retirement status" includes, but is not limited to, change from
service to disability retirement, from disability retirement to
service retirement, from nonindustrial disability retirement to
industrial disability retirement, or from industrial to nonindustrial
disability retirement
(b) For purposes of this section, payment shall be deemed to have
been made on the date a warrant is mailed, or the date funds are
electronically transferred to a bank, savings and loan association,
or credit union account for deposit in the member's account.
(c) This section shall not be construed to authorize a member to
change his or her retirement status after the election, revocation,
or change of election provided in this section.
(d) This section shall apply to any member who retires on or after
January 1, 2018.
21473. (a) Notwithstanding Section 21472, the election of an
optional settlement in Section 21475, 21475.5, 21476, 21476.5, or
21477 in which a spouse is designated as the beneficiary, may be
modified as provided in this section in the event of a dissolution or
annulment of the marriage or a legal separation in which the
division of the community property awards the total interest in the
retirement system to the retired member. The modification shall
provide that payment shall be continued during the retired member's
lifetime in accordance with the optional settlement then in effect
but that no monthly allowance shall be paid following the retired
member's death, and in lieu thereof there shall be paid in a lump sum
to the member's estate or a beneficiary designated by him or her the
amount, if any, by which the member's accumulated contributions at
retirement exceed the total payments made to the retired member to
the date of his or her death.
(b) This section shall apply to any member who retires on or after
January 1, 2018.
21474. (a) The Return of Remaining Contributions Option 1
consists of the right to have a retirement allowance paid to a member
until his or her death and if he or she dies before he or she
receives in annuity payments the amount of his or her accumulated
contributions at retirement, to have the balance at death paid to his
or her beneficiary or beneficiaries.
(b) This section shall apply to any member who retires on or after
January 1, 2018.
21475. (a) The 100 Percent Beneficiary Option 2 consists of the
right to have a retirement allowance paid to a member until his or
her death, and thereafter to have the same monthly allowance paid to
his or her named beneficiary for life; provided that with respect to
a member subject to Section 21624, 21629, or 21630 at retirement, the
named beneficiary shall receive a monthly allowance equal to that
portion of the member's allowance that exceeds the amount of the
allowance deemed payable to a survivor.
(b) Upon the death of both the member and the named beneficiary,
any remaining balance of the member's accumulated contributions at
retirement not used to fund the allowances paid to the member and the
named beneficiary will be paid in a lump sum to a secondary
beneficiary or beneficiaries named by the member.
(c) This section shall apply to any member who retires on or after
January 1, 2018.
21475.5. (a) The 100 Percent Beneficiary Option 2 with Benefit
Allowance Increase consists of the right to have a retirement
allowance paid to a member until his or her death and thereafter to
have the same monthly allowance paid to his or her named beneficiary
for life; provided that with respect to a member subject to Section
21624, 21629, or 21630 at retirement, the named beneficiary shall
receive a monthly allowance equal to that portion of the member's
allowance that exceeds the amount of the allowance deemed payable to
a survivor.
(1) If the beneficiary predeceases the member, the member's
allowance shall be adjusted effective the first of the month
following the death of the beneficiary, to reflect the benefit that
would have been paid had the member not selected an optional
settlement.
(2) If a nonspouse beneficiary waives entitlement to this
allowance, the member's allowance shall be adjusted effective the
first of the month following the receipt of the waiver of the
allowance entitlement from the nonspouse beneficiary to reflect the
benefit that would have been paid had the member not selected an
optional settlement.
(3) If the marriage of a member is dissolved or annulled or there
is a legal separation between the member and the beneficiary spouse
and the judgment dividing the community property awards the total
interest in this system to the member, the member's allowance shall
be adjusted effective the first of the month following the filing of
the judgment with the board to reflect the benefit that would have
been paid had the member not selected an optional settlement.
(b) Nothing in this section shall result in additional cost to the
employer.
(c) This section shall apply to any member who retires on or after
January 1, 2018.
21476. (a) The 50 Percent Beneficiary Option 3 consists of the
right to have a retirement allowance paid to a member until his or
her death, and thereafter to have one-half of the member's monthly
allowance paid to his or her named beneficiary for life; provided
that with respect to a member subject to Section 21624, 21629, or
21630 at retirement, the named beneficiary shall receive a monthly
allowance equal to one-half of that portion of the member's allowance
that exceeds the amount of the allowance deemed payable to a
survivor.
(b) Upon the death of both the member and the named beneficiary,
any remaining balance of the member's accumulated contributions at
retirement not used to fund the allowances paid to the member and the
named beneficiary will be paid in a lump sum to the secondary
beneficiary or beneficiaries named by the member.
(c) This section shall apply to any member who retires on or after
January 1, 2018.
21476.5. (a) The 50 Percent Beneficiary Option 3 with Benefit
Allowance Increase consists of the right to have a retirement
allowance paid to a member until his or her death, and thereafter to
have one-half of the member's monthly allowance paid to his or her
named beneficiary for life; provided that with respect to a member
subject to Section 21624, 21629, or 21630 at retirement, the named
beneficiary shall receive a monthly allowance equal to one-half of
that portion of the member's allowance that exceeds the amount of the
allowance deemed payable to a survivor.
(1) If the beneficiary predeceases the member, the member's
allowance shall be adjusted effective the first of the month
following the death of the beneficiary, to reflect the benefit that
would have been paid had the member not selected an optional
settlement.
(2) If the marriage of a member is dissolved or annulled or there
is a legal separation between the member and the beneficiary spouse
and the judgment dividing the community property awards the total
interest in this system to the member, the member's allowance shall
be adjusted effective the first of the month following the filing of
the judgment with the board to reflect the benefit that would have
been paid had the member not selected an optional settlement.
(3) If a nonspouse beneficiary waives entitlement to this
allowance, the member's allowance shall be adjusted, effective the
first of the month following the receipt of the waiver of the
allowance entitlement from the nonspouse beneficiary, to reflect the
benefit that would have been paid had the member not selected an
optional settlement.
(b) Nothing in this section shall result in additional cost to the
employer.
(c) This section shall apply to any member who retires on or after
January 1, 2018.
21477. (a) The Flexible Beneficiary Option 4 consists of the
right to have a retirement allowance paid to a member until his or
her death, and thereafter to have a monthly allowance paid to his or
her named beneficiary or beneficiaries for life. Subject to Section
21471.2, the member may select the monthly allowance payable to the
named beneficiary or beneficiaries from the options below:
(1) Specific Dollar Amount to a Beneficiary or Beneficiaries. The
member may specify that upon his or her death after retirement, a
monthly allowance in an amount determined by the member be paid to a
named beneficiary or beneficiaries for life.
(2) Specific Percentage to a Beneficiary or Beneficiaries. The
member may specify that upon his or her death after retirement, a
monthly allowance in an amount equivalent to a specified percentage
of the member's allowance be paid to a named beneficiary or
beneficiaries for life.
(b) This section shall apply to any member who retires on or after
January 1, 2018.
21478. (a) A member who elects to receive the unmodified
allowance or the optional settlement in Section 21474, or the
optional settlement in Section 21475, 21475.5, 21476, 21476.5, or
21477, and who names his or her spouse as the option beneficiary, and
whose spouse is also an eligible survivor for the benefits provided
by Section 21624, 21626, 21627, 21628, 21629, or 21630, and if the
total benefit to the surviving spouse is at least 50 percent of the
member's unmodified allowance, may concurrently and irrevocably elect
to have his or her allowance paid as a "qualified joint and survivor
annuity." Notwithstanding any other provision of this part, upon the
election, the survivor allowance shall be paid only to the member's
spouse and shall continue to be paid upon the remarriage of the
spouse. Any cost due to this election shall be paid by the member
through an actuarial reduction to his or her allowance.
(b) For purposes of this section, a member's retirement allowance
shall be determined without regard to any limitation required
pursuant to Section 415 of Title 26 of the United States Code but the
amount payable to the spouse shall be subject to those limits as if
it were the retirement allowance of the member.
(c) This section shall apply to any member who retires on or after
January 1, 2018.
21479. (a) A member retiring for service may
elect to have the actuarial equivalent of his or her unmodified
service retirement allowance paid in two parts as follows:
(1) A temporary annuity in an amount specified by the member but
which shall not result in a reduction to his or her unmodified
allowance by more than 50 percent.
(2) A life income consisting of his or her service retirement
annuity plus the pension provided by the actuarial value of his or
her current and prior service pensions remaining after providing the
temporary annuity in paragraph (1).
(b) The temporary annuity under subdivision (a) shall not be
subject to further optional settlement under this article and shall
be payable monthly as an addition to the member's monthly life income
beginning on his or her effective date of retirement and continuing
until the member reaches 59 years and six months of age or any whole
age between 60 and 68 years of age, as designated by the member at
the time of his or her retirement. If his or her death occurs prior
to that age, the commuted value of any remaining installments shall
be paid to his or her designated beneficiary in a lump sum.
(c) This section shall apply to any member who retires on or after
January 1, 2018.
21480. (a) Notwithstanding Section 21479, a member retiring for
service who became a member of the system on or after January 1,
2002, and who is covered under the federal system but is not yet
receiving a retirement or disability benefit under that system, may
elect to have the actuarial equivalent of his or her unmodified
service retirement allowance paid in two parts as follows:
(1) A temporary annuity that shall not exceed the primary social
security benefit that is anticipated the member shall be entitled to
receive at social security retirement age, which age shall be
designated by the member.
(2) A life income consisting of the member's service retirement
annuity plus the pension provided by the actuarial value of the
member's current and prior service pensions remaining after providing
the temporary annuity in paragraph (1).
(b) The temporary annuity under paragraph (1) of subdivision (a)
shall not be subject to further optional settlement under this
article and shall be payable monthly as an addition to the member's
monthly life income beginning on the member's effective date of
retirement and continuing until the retired member attains the age
designated by the member under subdivision (a). If the member dies
prior to the designated age, the commuted value of any installments
payable for the period remaining until the member would have attained
that age shall be paid to the member's designated beneficiary in a
lump sum.
(c) This section shall apply to any member who retires on or after
January 1, 2018.
21481. (a) (1) Notwithstanding any other provision of this part,
a member who elected the optional settlement in Section 21475,
21475.5, 21476, 21476.5, or 21477, may, if the beneficiary
predeceases the member or if the member marries and the former spouse
was not named as beneficiary, or, if a former spouse was named, in
the event of a dissolution or annulment of the marriage or a legal
separation in which the judgment dividing the community property
awards the total interest in the retirement system to the retired
member, elect to have the actuarial equivalent reflecting any
selection against the fund resulting from the election as of the date
of election of the allowance payable for the remainder of the member'
s lifetime under the optional settlement previously chosen applied to
a lesser allowance during the member's remaining lifetime under one
of the optional settlements specified in this article and name a
different beneficiary.
(2) Notwithstanding paragraph (1), for an election pursuant to
this section that occurs on or after January 1, 2014, a member may
name the same beneficiary as previously designated, provided that the
resulting benefit to the member and the named beneficiary otherwise
meets the requirements of this section.
(b) The election shall be made within 12 months following the
death of the beneficiary who predeceased the member or within 12
months of the date of entry of the judgment dividing the community
property of the parties, or within 12 months following marriage if
the spouse is named as beneficiary. The election shall become
effective on the date specified on the election, provided that this
date is not earlier than the day following receipt of the election in
this system pursuant to this section.
(c) A member who has a qualifying event prior to January 1, 1988,
and who fails to elect by January 1, 1989, or a member who has a
qualifying event on or after January 1, 1988, and who fails to elect
within 12 months, shall retain the right to make an election under
this section. However, this election shall become effective no
earlier than 12 months after the date it is filed with the board,
provided that neither the member nor the designated beneficiary die
prior to the effective date of the election.
(d) This section shall not be construed to mean that designation
of a new beneficiary causes the selection of an optional settlement.
An optional settlement shall be selected by a member in a writing
filed by the member with the board.
(e) This section shall apply to any member who retires on or after
January 1, 2018.
21482. (a) Notwithstanding any provision of this part, a retired
member who chose no optional settlement or the optional settlement in
Section 21474 at retirement may elect to have the actuarial
equivalent, as of the date of the election, of the allowance payable
for the remainder of his or her lifetime applied to a lesser
allowance during his or her remaining lifetime under one of the
optional settlements specified in this article and name his or her
spouse as beneficiary.
(b) The election provided by this section is irrevocable and shall
be made within 12 months following a member's marriage if the spouse
is named as beneficiary. The election shall become effective on the
date specified on the election, provided that this date is not
earlier than the day following receipt of the election in this system
pursuant to this section.
(c) A member who married prior to or after January 1, 1988, who
fails to elect within 12 months, shall retain the right to make an
election under this section. However, the election shall become
effective no earlier than 12 months after the date it is filed with
the board, provided that neither the member nor the designated
beneficiary die prior to the effective date of the election.
(d) This section shall not be construed to mean that designation
of a new beneficiary causes the selection of an optional settlement.
An optional settlement shall be selected by a member in a writing
filed by the member with the board.
(e) This section shall apply to any member who retires on or after
January 1, 2018.
21483. (a) Optional settlement 5 consists of a partial
distribution of the actuarial present value of the portion, as
specified in this section, of the member's unmodified monthly
allowance, as prescribed in Section 21362, 21362.2, 21363, 21363.1,
21363.4, or 21423, when a service retirement allowance is payable.
The actuarial present value shall be based upon the investment return
and postretirement mortality assumptions adopted by the board for
that purpose. The member may elect to receive the actuarial present
value of no less than 20 percent and no more than 50 percent of his
or her unmodified allowance. The member may elect to receive the
remaining portion of the unmodified allowance, not distributed as a
lump-sum payment, under one of the settlements specified in this
article for the remainder of his or her lifetime and thereafter to
his or her designated beneficiary, unless this amount is solely
limited to the survivor continuance portion. The portion of the
unmodified allowance equivalent to the survivor continuance pursuant
to Section 21624 may not be distributed as a lump-sum payment. The
benefits provided under this section may not exceed the benefits that
would have otherwise been provided under any other section in this
article.
(b) This section shall only apply to the following members who
retire on or after January 1, 2018:
(1) State peace officer/firefighter members in State Bargaining
Unit 6.
(2) State peace officer/firefighter members in State Bargaining
Unit 8 and state patrol members in State Bargaining Unit 5, if a
memorandum of understanding has been agreed upon by the state and the
recognized employee organization to become subject to this section.
(3) State peace officer/firefighter members and state patrol
members in supervisory and confidential positions related to the
members described in paragraph (1) or (2), if the Department of Human
Resources has approved their inclusion.
SEC. 23. Section 21492 of the Government Code is amended to read:
21492. The designation of a beneficiary under the optional
settlements in Sections 21456, 21457, 21459, 21475, 21475.5, 21476,
21476.5, and 21477, and in Section 21458, if a benefit involving the
life contingency of the beneficiary is provided, is irrevocable from
the time of the first payment on account of any retirement allowance.
Otherwise a designation of beneficiary under this system is
revocable at the pleasure of the member who made it. A member's
marriage, dissolution of marriage, annulment of his or her marriage,
the birth of his or her child, or his or her adoption of a child
shall constitute an automatic revocation of his or her previous
revocable designation of beneficiary. A member's termination of
employment and withdrawal of contributions shall constitute an
automatic revocation of the previous revocable designation of
beneficiary. Subsequent reemployment or reinstatement from retirement
to employment covered by this system shall not reinstate the
previous designation of beneficiary.
Upon revocation of any beneficiary designation, a member may
designate the same or another beneficiary by a writing filed with the
board, except as otherwise provided in Section 21490.
SEC. 24. Section 21503 of the Government Code is amended to read:
21503. The board may select an optional settlement under Article
6 (commencing with Section 21450) or Article 7 (commencing with
Section 21470) of Chapter 13, as applicable, on behalf of the
surviving spouse of a member who applied for retirement but who died
prior to the mailing of a retirement allowance warrant and prior to
an election in accordance with that article if all of the following
conditions are met:
(a) The application for retirement was received by this system,
prior to the date of death.
(b) The document containing the application for retirement
received by this system did not provide for a temporary election of
the optional settlement in Sections 21456 and 21459, or in Section
21475.
(c) The deceased member had separated from state service at least
one day prior to the effective date of retirement.
(d) The deceased member was alive on the effective date of
retirement.
(e) The beneficiary designated on the application for retirement
is the surviving spouse who requests in writing that the board make
the selection. Upon formal action by the board approving the request,
the request shall become irrevocable.
A retirement allowance provided in accordance with this section
shall be calculated as if the member had elected Sections 21456 and
21459 if his or her retirement date is on or before December 31,
2017, or Section 21475 if his or her retirement date is on or after
January 1, 2018.
SEC. 25. Section 21504 of the Government Code is amended to read:
21504. If a member dies on or after the effective date of
retirement and prior to the mailing of a retirement allowance warrant
and if the member has elected the optional settlement in Section
21456, 21457, 21459, 21475, 21475.5, 21476, 21476.5, or 21477, or an
optional settlement in Section 21458, involving payment of an
allowance throughout the life of the beneficiary, or the member
elected the unmodified allowance or the optional settlement in either
Section 21455 or 21474 and if a partially continued retirement
allowance under Sections 21624 through 21631, is payable, the death
shall be considered to be death after retirement and the applicable
benefits shall be payable.
However, if the beneficiary designated on the election for
retirement is either (1) the surviving unmarried minor child or
children of the member and there is no surviving spouse eligible for
a partially continued retirement allowance under Sections 21624
through 21631, or (2) the surviving spouse of the member, the
surviving spouse so named or the legal representative of the minor
child or children so named may elect to receive benefits that would
have been payable had the death occurred under the conditions of
Section 21530. Except as provided in Section 21503, nothing in this
part permits a surviving spouse, surviving children, or any person
other than a member to elect an optional settlement.
SEC. 26. Section 21505 of the Government Code is amended to read:
21505. If a member who has been retired for service because he or
she has attained the mandatory age of retirement applicable to
members of his or her category dies within 30 days after the date
upon which his or her retirement was mandatory, and without having
elected the optional settlement in Section 21456, 21457, 21459,
21475, 21475.5, 21476, 21476.5, or 21477, or an optional settlement
in Section 21458, involving payment of an allowance throughout the
life of a beneficiary, and if no part of the allowance of the member
is automatically continued by this part after his or her death, his
or her death shall be considered as that of a member before
retirement, and the basic death benefit shall be payable, or, if the
circumstances are such that a special death benefit would be payable
if the death had occurred prior to retirement, the special death
benefit shall be payable.
SEC. 27. Section 21530 of the Government Code is amended to read:
21530. (a) This system is liable for either the basic or special
death benefit upon the death of a member in any of the following
circumstances:
(1) Before the effective date of retirement, and (A) while in
state service, or (B) while absent on military service, provided the
member has made contributions during the absence under Section 20991
or has had contributions made on his or her behalf under Section
20997, or (C) within four months after discontinuance of state
service, or (D) while on an approved leave of absence, or (E) while
physically or mentally incapacitated for the performance of duty, if
the incapacity has been continuous from discontinuance of state
service, or (F) while employed as a member of a county retirement
system; provided, the employment resulting in membership was begun on
or after October 1, 1957, and within 90 days after discontinuance of
state service.
(2) While in state service in partial service retirement pursuant
to Article 1.7 (commencing with Section 19996.30) of Chapter 7 of
Part 2.6 or Sections 21110 through 21115.
(3) On or after the effective date of retirement and before the
mailing of a retirement allowance warrant and either within four
months of discontinuance of state service or while physically or
mentally incapacitated for the performance of duty if the incapacity
has been continuous from discontinuance of state service, and
providing all of the following conditions exist:
(A) The retirement of the member was not compulsory under Article
5 (commencing with Section 21130) of Chapter 12.
(B) The member has not elected the optional settlement in Section
21456, 21457, 21459, 21475, 21475.5, 21476, 21476.5, or 21477, or an
optional settlement in Section 21458, involving payment of an
allowance throughout the life of a beneficiary.
(C) A partially continued allowance under Sections 21624 through
21631, is not payable.
(b) This system is liable for a limited death benefit, which
consists only of the accumulated contributions of the member payable
to his or her beneficiary or estate, under the following
circumstances:
(1) Upon the death of a member before the effective date of his or
her retirement or, with respect to (A) any member whose retirement
was not compulsory under Article 5 (commencing with Section 21130) of
Chapter 12, and (B) any member who has not elected the optional
settlement in Section 21456, 21457, 21459, 21475, 21475.5, 21476,
21476.5, or 21477, or an optional settlement in Section 21458
involving payment of an allowance throughout the life of a
beneficiary, on or after that effective date and before the mailing
of the first retirement allowance warrant.
(2) Under those circumstances in which this system is not liable
for either the basic or special death benefit provided in subdivision
(a) of this section, and a partially continued allowance under
Sections 21624 through 21631, is not payable.
SEC. 28. Section 21547 of the Government Code is amended to read:
21547. (a) Notwithstanding any other provision of this article
requiring attainment of the minimum age for voluntary service
retirement to the member in his or her last employment preceding
death, upon the death of a state member on or after January 1, 1993,
who is credited with 20 years or more of state service, the surviving
spouse, or eligible children if there is no surviving spouse, may
receive a monthly allowance in lieu of the basic death benefit. The
board shall notify the eligible survivor, as defined in Section
21546, of this alternate death benefit. The board shall calculate the
monthly allowance that shall be payable as follows:
(1) To the member's surviving spouse, an amount equal to the
amount the member would have received if the member had retired for
service at minimum retirement age on the date of death and had
elected the optional settlement in Section 21456 and Section 21459.
(2) If the member made a specific beneficiary designation under
Section 21490, the monthly allowance shall be based only on that
portion of the amount the member would have received described in
paragraph (1) that would have been derived from the nonmember spouse'
s community property interest in the member's contributions and
service credit.
(3) If there is no surviving spouse or the spouse dies before all
of the children of the deceased member attain the age of 18 years, to
the surviving children, under the age of 18 years, collectively, an
amount equal to one-half of, and derived from the same source as, the
unmodified allowance the member would have received if he or she had
retired for service at minimum retirement age on the date of death.
No child shall receive any allowance after marrying or attaining the
age of 18 years. As used in this paragraph, "surviving children"
includes a posthumously born child or children of the member.
(b) This section shall only apply to members employed in state
bargaining units for which a memorandum of understanding has been
agreed to by the state employer and the recognized employee
organization to become subject to this section, members who are
excluded from the definition of state employees in subdivision (c) of
Section 3513, and members employed by the executive branch of
government who are not members of the civil service.
(c) For purposes of this section, "state service" means service
rendered as a state employee, as defined in Section 19815. This
section shall not apply to any contracting agency nor to the
employees of any contracting agency.
(d) For purposes of this section, "state service" includes service
to the state for which the member, pursuant to Section 20281.5, did
not receive credit.
SEC. 29. Section 21547.7 of the Government Code is amended to
read:
21547.7. (a) Notwithstanding any other provision of this article
requiring attainment of the minimum age for voluntary service
retirement applicable to him or her in his or her last employment
preceding death, upon the death of a local firefighter member while
in the employ of an agency subject to this section on or after
January 1, 2001, who is credited with 20 years or more of state
service, the surviving spouse, or eligible children, if there is no
eligible spouse, may receive a monthly allowance in lieu of the basic
death benefit. The board shall notify the eligible survivor, as
defined in Section 21546, of this alternate death benefit. The board
shall calculate the monthly allowance that shall be payable as
follows:
(1) To the member's surviving spouse, an amount equal to the
amount the member would have received if he or she had retired for
service at the minimum retirement age on the date of death and had
elected the optional settlement in Section 21456 and Section 21459.
The retirement allowance shall be calculated using all service earned
by the member in this system.
(2) If the member made a specific beneficiary designation under
Section 21490, the monthly allowance shall be based only on that
portion of the amount the member would have received described in
paragraph (1) that would have been derived from the nonmember spouse'
s community property interest in the member's contributions and
service credit.
(3) If there is no surviving spouse or the spouse dies before all
of the children of the deceased member attain the age of 18 years, to
the surviving children, under the age of 18 years, collectively, an
amount equal to one-half of, and derived from the same source as, the
unmodified allowance the member would have received if he or she had
retired for service at the minimum retirement age on the date of
death. No child shall receive any allowance after marrying or
attaining the age of 18 years. As used in this paragraph, "surviving
children" includes a posthumously born child or children of the
member. The retirement allowance shall be calculated using all
service earned by the member in this system.
(4) The cost of the allowance paid pursuant to this subdivision
shall be paid from the assets of the employer at the member's date of
death. All member contributions made by the member to this system
shall be transferred to the plan assets of the employer liable for
the funding of this benefit.
(b) (1) Upon the death of a local firefighter member while in the
employ of an agency subject to this section on or after January 1,
2001, who is credited with 20 years or more of state service and who
has attained the minimum age for voluntary service retirement
applicable to him or her in his or her last employment preceding
death, the surviving spouse may elect to receive a monthly allowance
that is equal to the amount that member would have received if the
member had been retired from service on the date of death and had
elected the optional settlement in Section 21456 and Section 21459 in
lieu of the basic death benefit. The retirement allowance shall be
calculated using all service earned by the member in this system.
(2) If the member made a specific beneficiary designation under
Section 21490, the monthly allowance shall be based only on that
portion of the amount the member would have received described in
paragraph (1) that would have been derived from the nonmember spouse'
s community property interest in the member's contributions and
service credit.
(3) If there is no surviving spouse or the spouse dies before all
of the children of the deceased member attain the age of 18 years,
the allowance shall continue to the surviving children, under the age
of 18 years, collectively, in an amount equal to one-half of, and
derived from the same source as, the unmodified allowance the member
would have received if he or she had been retired from service on the
date of death. No child shall receive any allowance after marrying
or attaining the age of 18 years. As used in this paragraph,
"surviving children" includes a posthumously born child or children
of the member. The retirement allowance will be calculated using all
service earned by the member in this system.
(4) The cost of the increase in service allowance paid pursuant to
this subdivision shall be paid from the assets of the employer at
the member's date of death.
(c) This section shall not apply to any contracting agency, nor
to the employees of any contracting agency, unless and until the
agency elects to be subject to this section by amendment to its
contract made in the manner prescribed for approval of contracts,
except that an election among the employees is not required.
SEC. 30. Section 21548 of the Government Code is amended to read:
21548. (a) The surviving spouse of a member who has attained the
minimum age for voluntary service retirement applicable to the member
in his or her last employment preceding death, and who is eligible
to receive an allowance pursuant to Section 21546, shall instead
receive an allowance that is equal to the amount that the member
would have received if the member had been retired from service on
the date of death and had elected the optional settlement in Section
21456 and Section 21459.
(b) The surviving spouse of a member who has attained the minimum
age for voluntary service retirement applicable to the member in his
or her last employment preceding death, and who is eligible to
receive a special death benefit in lieu of an allowance under Section
21546, may elect to instead receive an allowance that is equal to
the amount that the member would have received if the member had been
retired from service on the date of death and had elected the
optional settlement in Section 21456 and Section 21459.
(c) If the member made a specific beneficiary designation under
Section 21490, the allowance under this section shall be based only
on that portion of the amount the member would have received
described in subdivision (a) or (b) that would have been derived from
the nonmember spouse's community property interest in the member's
contributions and service credit.
(d) The allowance provided by this section shall be payable as
long as the surviving spouse lives. Upon the death of the surviving
spouse, the benefit shall be continued to minor children, as defined
in Section 6500 of the Family Code, or a lump sum shall be paid as
provided under circumstances specified in Section 21546 or in
Sections 21541 and 21543, as the case may be.
(e) The allowance provided by this section shall be paid in lieu
of the basic death benefit, but the surviving spouse qualifying for
the allowance may elect before the first payment on account of it to
receive the basic death benefit in lieu of the allowance.
(f) This section shall apply
with respect to state members whose death occurs on and after July 1,
1976.
(g) All references in this code to Section 21546 shall be deemed
to include this section in the alternative.
(h) This section shall not apply to any contracting agency nor to
the employees of any contracting agency unless and until the agency
elects to be subject to this section by amendment to its contract
made in the manner prescribed for approval of contracts, except that
an election among the employees is not required, or, in the case of
contracts made after January 1, 1985, by express provision in the
contract making the contracting agency subject to this section.
SEC. 31. Section 21604 of the Government Code is amended to read:
21604. The insurance benefit shall be paid upon death of an
insured member of this system to the beneficiary entitled to receive
the basic or special death benefit if all of the following conditions
occur:
(a) Death occurs during any of the following:
(1) While in state service.
(2) While absent from state service on military service or on
approved leave of absence.
(3) Within four months of discontinuance of state service.
(4) While physically or mentally incapacitated for performance of
duty continuously from discontinuance of state service.
(b) If either of the following exists:
(1) Death occurs while a member and before the effective date of
retirement.
(2) If the optional settlement in Section 21456, 21457, 21459,
21475, 21475.5, 21476, 21476.5, or 21477, or an optional settlement
in Section 21458, involving payment of an allowance throughout the
life of the beneficiary, has not been elected and if an allowance
under Section 21624, 21627, 21629, or 21630 is not payable, and death
occurs on or after the effective date of retirement and before the
mailing of a retirement allowance warrant.
(c) Death occurs during a period of insurance.
(d) Death occurs under circumstances other than those described in
subparagraph (F) of paragraph (1) of subdivision (a) of Section
21530.
If this section is in conflict with the provisions of a memorandum
of understanding reached pursuant to Section 3517.5, the memorandum
of understanding shall be controlling without further legislative
action, except that, if the provisions of a memorandum of
understanding require the expenditure of funds, the provisions shall
not become effective unless approved by the Legislature in the annual
Budget Act.
SEC. 32. Section 21625 of the Government Code is amended to read:
21625. Notwithstanding any other provision of this part, upon the
member's election to be subject to Section 21460 or 21478, the
benefits provided by Section 21624, 21626, 21627, 21628, 21629, or
21630, as applicable, shall be payable only to the member's eligible
surviving spouse and for his or her lifetime. The benefit shall not
cease upon the remarriage of the surviving spouse.
SEC. 33. Section 21628 of the Government Code is amended to read:
21628. The allowance provided by Section 21624 shall be paid with
respect to a local miscellaneous or local safety member whose
retirement was effective prior to his or her employer's election to
be subject to the section with respect to employees in his or her
employment, if at retirement he or she did not elect the optional
settlement in Section 21456, 21457, 21459, 21475, 21475.5, 21476,
21476.5, or 21477 or an optional settlement involving life
contingency in Section 21458. The retirement allowance payable to a
retired member who elected any of these optional settlements, or to a
beneficiary of a retired member, shall be increased by 15 percent,
for time on and after the operative date and prior to the next annual
adjustment under Article 3 (commencing with Section 21310) of
Chapter 13 and the base allowance shall be increased by 15 percent
for purpose of that and all subsequent annual adjustments. The amount
payable to the beneficiary under the optional settlement shall be
increased by the same percentage and in the same manner as the
increase provided for the payment to the member.
The increased allowance provided by this section shall not be
payable to a beneficiary who is receiving an allowance pursuant to
this article or Article 4 (commencing with Section 21350) of Chapter
13 on September 29, 1980, until the employer of the retired member
elects to be subject to this section as so amended by amendment to
its contract made in the manner prescribed for approval of contracts,
except that an election among employees shall not be required. In
the case of contracts made on or after September 29, 1980, the
operative date of Section 21624, for purposes of application of that
section to local members, shall be the effective date of the contract
or contract amendment.
SEC. 34. Section 21629 of the Government Code is amended to read:
21629. Upon the death, after the effective date of retirement, of
a state miscellaneous member none of whose service rendered in state
employment has been included in the federal system and whose
retirement is effective on or after July 1, 1974, or of a school
member or school safety member none of whose service rendered in
school service or school safety service has been included in the
federal system and whose retirement is effective on or after July 1,
1983, a monthly allowance derived from employer contributions equal
to 50 percent of the amount of his or her retirement allowance as it
was at his or her death and based on service credited to him or her
as a member subject to this section but excluding any portion of the
retirement allowance derived from additional contributions of the
member shall be paid to the surviving spouse throughout life. If
there is no surviving spouse, or upon the death of the surviving
spouse, the allowance shall be paid collectively to every unmarried
child of the deceased member who has not attained age 18, or who is
disabled by a condition which disabled that child prior to attaining
age 18 and which has continued without interruption after age 18,
until the disability ceases. If at the time of the retired member's
death there is no eligible surviving spouse or children, the
allowance shall be paid to a parent, or collectively to parents, of
the deceased member dependent upon him or her for support. If on the
effective date of retirement there is a person who will be eligible
if the person survives, the member's election of an optional
settlement other than the optional settlement in Section 21455 or
21474 shall apply only to a portion of his or her allowance as
provided in Section 21451 or 21471.1. If on the effective date of his
or her retirement the member has no surviving spouse, eligible
children, or dependent parents and elected an optional settlement, no
allowance under this section shall be paid.
"Surviving spouse," for purposes of service retirement subject to
this section, means a husband or wife who was married to the member
for a continuous period beginning at least one year prior to his or
her retirement and ending on the date of his or her death and, for
purposes of disability retirement subject to this section where the
member retired on or after January 1, 1995, means a husband or wife
who was married to the member on the date of his or her retirement
and continuously to the date of his or her death.
SEC. 35. Section 21630 of the Government Code is amended to read:
21630. Upon death after the effective date of retirement of a
state miscellaneous member some of whose service rendered in state
employment has been included in the federal system and whose
retirement is effective on or after July 1, 1975, or of a school
member or school safety member some of whose service rendered in
school employment has been included in the federal system and whose
retirement is effective on or after July 1, 1983, a monthly
allowance, derived from employer contributions, equal to a percentage
of the amount of his or her retirement allowance as it was at his or
her death based on service credited to him or her as a member
subject to this section but excluding any portion of the retirement
allowance derived from additional contributions of the member shall
be paid to the surviving spouse throughout life. The percentage shall
be 25 percent for an allowance based on service that was also
covered under the federal system and 50 percent for an allowance
based on any other service, except that the percentage shall be 50
percent for the allowance of a member whose service was subject to
Section 21076 or 21077 and who had become a member prior to November
1, 1988. If there is no surviving spouse, or upon the death of the
surviving spouse, the allowance shall be paid collectively to every
unmarried child of the deceased member who has not attained age 18,
or who is disabled by a condition that disabled that child prior to
attaining age 18 and that has continued without interruption after
age 18, until the disability ceases. If at the time of the retired
member's death there is no eligible surviving spouse or children, the
allowance shall be paid to a parent, or collectively to parents, of
the deceased member dependent upon him or her for support. If on the
effective date of retirement there is a person who will be eligible
if the person survives, the member's election of an optional
settlement, other than the optional settlement in Section 21455 or
21474, shall apply only to a portion of the allowance as provided in
Section 21451 or 21471.1. If on the effective date of his or her
retirement the member has no surviving spouse, eligible children, or
dependent parents and elected an optional settlement, no allowance
under this section shall be paid.
"Surviving spouse," for purposes of service retirement subject to
this section, means a husband or wife who was married to the member
for a continuous period beginning at least one year prior to his or
her retirement and ending on the date of his or her death and, for
purposes of disability retirement subject to this section where the
member retired on or after January 1, 1995, means a husband or wife
who was married to the member on the date of his or her retirement
and continuously to the date of his or her death.
SEC. 36. Section 21631 of the Government Code is amended to read:
21631. (a) The monthly allowance provided by Sections 21629 and
21630 shall be paid on account of retired school members who did not
at retirement elect the optional settlement in Section 21456, 21457,
21459, 21475, 21475.5, 21476, 21476.5, or 21477 or an optional
settlement involving life contingency in Section 21458.
(b) Upon receipt of a written application for benefits at the
office of the board, the benefits provided by this section shall be
payable to eligible survivors of retired school members who are not
receiving a monthly allowance on account of miscellaneous service as
a state member.
(c) When there are no records in the board's possession that
contain necessary data for determining the retirement benefit
claimed, the applicant or applicants for the benefit shall be
required to establish entitlement to the benefit upon evidence
satisfactory to the board. That data, at a minimum, shall be
sufficient to establish the date of the retired member's death and
the amount of the retired member's monthly allowance payable at the
time of his or her death. The net benefit payable to the retired
school member at the date of death may be determined by the board on
the basis of the evidence submitted or upon other evidence if that
evidence allows the board to determine the unmodified allowance
payable on the date of death. The board shall use available evidence,
whether from information provided by the applicant, partial records
in possession of the board, or from other sources, as the basis for
assumptions that are necessary in order to calculate the allowance
payable to the eligible survivor or survivors.
(d) The benefits provided by this section shall be subject to the
same eligibility and termination provisions that apply to members at
their retirement and shall be paid commencing on the first day of the
month succeeding the month in which the application for the benefits
of this section is received by the board.
(e) The board has no duty to identify, locate, or notify any
survivor of a retired school member who may potentially be eligible
for the benefits of this section. The board has no duty to provide
the name or address of any potential survivor to any person, agency,
or entity for the purpose of notifying survivors who may potentially
be eligible for the benefits of this section.
(f) The cost of the additional benefits provided pursuant to the
trial court decision in California State Employees Association, et
al. v. Board of Administration of the Public Employees' Retirement
System et al. (Sacramento County Superior Court, Case No. 332315)
shall be paid out of the reserve against deficiencies established by
Section 20174.
SEC. 37. Section 21632 of the Government Code is amended to read:
21632. (a) The monthly allowances provided by Sections 21629 and
21630 shall be paid on account of retired state miscellaneous members
who did not at retirement elect the optional settlement in Section
21456, 21457, or 21459, or an optional settlement involving life
contingency in Section 21458, and whose retirement dates were
effective before July 1, 1974, with respect to members who were not
covered by the federal system, and before July 1, 1975, with respect
to members who were covered under the federal system. Upon receipt of
a written application by the board, the benefits provided by this
section shall be payable to eligible survivors of retired members who
are not receiving a monthly allowance on account of miscellaneous
service as a state member. However, if, on the date the application
is received by the board, there is no longer in existence a record in
the board's possession setting forth the retirement data relating to
the retired member, the applicant survivor or survivors of the
retired member shall be required, as a condition precedent to his or
her entitlement to the benefit provided by this section, to furnish
documentary evidence satisfactory to the board to enable it to
determine the date of the retired member's death and the amount of
the member's allowance that was currently payable at the time of
death. The net benefit payable to the retired member at the time of
death shall be determined on the basis of the evidence submitted,
unless the board is able to determine the unmodified allowance
payable at the time of death. If the allowance payable to an eligible
survivor is based on evidence furnished by the survivor or partial
member records in the board's possession, or both, the board shall
use that information to assume any additional factors required to
calculate the allowance payable. The benefits shall be subject to the
same eligibility and termination provisions that apply to members at
retirement and shall, subject to subdivision (b), be paid only for
the period of time commencing on the first of the month following
receipt by the board of the application for the benefits. The board
has no duty to locate or notify any potential survivor or to provide
the name or address of any potential survivor to any person, agency,
or entity for the purpose of notifying survivors.
(b) Upon receipt of a written application pursuant to subdivision
(a), the benefits provided by this section shall be paid both
prospectively and retroactively for the period of time commencing
with the first day of the month following receipt of the application.
(c) The payment of benefits pursuant to this section, as amended
by Chapter 788 of the Statutes of 1984, shall commence no sooner than
January 1, 1985.
SEC. 38. Section 21633 of the Government Code is amended to read:
21633. The monthly allowance provided by Section 21624 shall be
paid on account of patrol and state safety members retired for
nonindustrial disability with effective dates of retirement prior to
April 1, 1972, and who did not at retirement elect the optional
settlement in Section 21456, 21457, or 21459 or an optional
settlement involving life contingency in Section 21458. Upon receipt
of a written application by the board, the benefits provided by this
section shall also be payable to eligible survivors of retired
members who are not receiving a monthly allowance on account of
service as a patrol or state safety member if the retired member was
alive and receiving a monthly allowance on June 30, 1974. The
benefits shall be subject to the same eligibility and termination
provisions that apply to members at retirement and shall be paid only
for the period of time commencing on the first of the month
following receipt by the board of the application for those benefits.
SEC. 39. Section 21752 of the Government Code is amended to read:
21752. (a) (1) In accordance with Section 21756, a member's
annual retirement benefits, adjusted to the actuarial equivalent of a
straight-life annuity if payable in a form other than a
straight-life annuity or a qualified joint and survivor annuity as
provided under Section 21460 or 21478 and determined without regard
to any employee contributions or rollover contributions, as defined
in Sections 402(a)(5), 403(a)(4), and 408(d)(3) of Title 26 of the
United States Code, otherwise payable to the member under Part 3
(commencing with Section 20000) and under any other defined benefit
plan maintained by the employer that is subject to Section 415 of
Title 26 of the United States Code, shall not exceed, in the
aggregate, the dollar limit applicable pursuant to Section 415(b)(1)
(A) of Title 26 of the United States Code, as appropriately modified
by Section 415(b)(2)(F) and (G) of Title 26 of the United States
Code.
(2) A member who receives benefits based on credited service with
multiple employers shall not exceed the limitations set forth in this
subdivision with regard to his or her annual retirement benefits.
(3) However, the annual retirement benefit payable to a member
shall be deemed not to exceed the limitations prescribed in paragraph
(1) if the benefit does not exceed ten thousand dollars ($10,000)
and the member has at no time participated in a tax qualified defined
contribution plan maintained by the employer.
(b) These limitations shall be applied pursuant to Section 415(b)
(10) of Title 26 of the United States Code.
(c) Part 3 (commencing with Section 20000) shall be construed as
if it included this section.
SEC. 40. Section 75070 of the Government Code is amended to read:
75070. In lieu of electing the unmodified allowance for his or
her life alone, a judge may elect to have the actuarial equivalent of
his or her retirement allowance as of the date of retirement applied
to a lesser retirement allowance, in accordance with one of the
optional settlements specified in Section 75071 when the judge
retires on or before December 31, 2017, or Section 75071.5 when the
judge retires on or after January 1, 2018.
That election, revocation, or change of election shall be made by
a writing filed with the Judges' Retirement System within 30 calendar
days after the making of the first payment on account of any
retirement allowance.
If a person qualifies for the survivor allowance under Section
75077 or 75096.3, then the election with respect to any optional
settlement other than the optional settlement in subdivision (a) of
Section 75071 or subdivision (b) of Section 75071.5, shall apply only
to the portion of the retirement allowance that exceeds the amount
of the allowance deemed payable to the survivor.
SEC. 41. Section 75070.5 is added to the Government Code, to read:
75070.5. If a judge elects an optional settlement that provides
for a monthly allowance for his or her named beneficiary or
beneficiaries, the combined allowance payable to the judge's named
beneficiary or beneficiaries and the judge's survivor pursuant to
Section 75077 or 75096.3, if applicable, shall not exceed the amount
of the judge's monthly allowance.
SEC. 42. Section 75071 of the Government Code is amended to read:
75071. This section shall apply to any judge who retires on or
before December 31, 2017.
(a) Optional settlement one consists of the right to have a
retirement allowance paid to the judge for life and if he or she dies
before receiving the amount of his or her accumulated contributions
at retirement, to have the balance at death paid to his or her
designated beneficiary or, if no beneficiary designation is in effect
on the date of death, to his or her estate.
(b) (1) Optional settlement two consists of the right to have a
retirement allowance paid to him or her for life and thereafter to
his or her designated beneficiary for life.
(2) If the judge's designated beneficiary predeceases the judge
and the judge elected this optional settlement to be effective on or
after January 1, 2002, the judge's allowance shall be adjusted
effective the first day of the month following the death of the
beneficiary to reflect the benefit that would have been paid had the
judge not elected an optional settlement.
(3) If the marriage of a retired judge is dissolved or annulled or
if the retired judge and his or her beneficiary spouse are legally
separated and the judgment dividing their community property awards
the total interest in this system to the retired judge, and the
retired judge elected this optional settlement to be effective on or
after January 1, 2002, the retired judge's allowance shall be
adjusted effective the first day of the month following the filing of
the judgment with the board to reflect the benefit that would have
been paid had the judge not elected an optional settlement.
(c) (1) Optional settlement three consists of the right to have a
retirement allowance paid him or her for life, and thereafter to have
one-half of his or her retirement allowance paid to his or her
designated beneficiary for life.
(2) If the judge's designated beneficiary predeceases the judge
and the judge elected this optional settlement to be effective on or
after January 1, 2002, the judge's allowance shall be adjusted
effective the first day of the month following the death of the
beneficiary to reflect the benefit that would have been paid had the
judge not elected an optional settlement.
(3) If the marriage of a retired judge is dissolved or annulled or
if the retired judge and his or her beneficiary spouse are legally
separated and the judgment dividing their community property awards
the total interest in this system to the retired judge, and the
retired judge elected this optional settlement to be effective on or
after January 1, 2002, the retired judge's allowance shall be
adjusted effective the first day of the month following the filing of
the judgment with the board to reflect the benefit that would have
been paid had the judge not elected an optional settlement.
(d) Optional settlement four consists of other benefits that are
the actuarial equivalent of his or her retirement allowance, that he
or she may select subject to the approval of the Judges' Retirement
System.
(e) When a judge elects, on or after January 1, 2003, to receive
benefits provided by paragraph (2) of subdivision (b) or paragraph
(2) of subdivision (c), and the judge and his or her optional
settlement beneficiary both die before receiving in annuity payments
the full amount of the judge's accumulated contributions at
retirement, the balance of the judge's accumulated contributions
shall be paid to the beneficiary designated by the judge. If the
judge had no designated beneficiary in effect on the date of death,
payment shall be made to the judge's estate.
SEC. 43. Section 75071.5 is added to the Government Code, to read:
75071.5. This section shall apply to any judge who retires on or
after January 1, 2018.
(a) The unmodified allowance consists of the right to have the
maximum retirement allowance paid to the judge for his or her life
alone. There is no continuing allowance to a beneficiary and there is
no return of unused accumulated contributions after the death of the
judge.
(b) The Return of Remaining Contributions Option 1 consists of the
right to have a retirement allowance paid to the judge until his or
her death and, if he or she dies before he or she receives in annuity
payments the amount of his or her accumulated contributions at
retirement, to have the balance at death paid to his or her
designated beneficiary or estate.
(c) (1) The 100 Percent Beneficiary Option 2 consists of the right
to have a retirement allowance paid to the judge until his or her
death, and thereafter to have the same monthly allowance paid to his
or her designated beneficiary for life; provided that with respect to
a judge subject to Section 75077 or 75096.3 at retirement, the
beneficiary shall receive a monthly allowance equal to that portion
of the judge's monthly allowance that exceeds the amount of the
allowance deemed payable to the judge's survivor.
(2) Upon the death of both the judge and the designated
beneficiary, any remaining balance of the judge's accumulated
contributions at retirement not used to fund the allowances paid to
the judge and the designated beneficiary will be paid in a lump sum
to the secondary beneficiary or beneficiaries designated by the
judge.
(d) (1) The 100 Percent Beneficiary Option 2 with Benefit
Allowance Increase consists of the right to have a retirement
allowance paid to the judge until his or her death and thereafter to
have the same monthly allowance paid to his or her designated
beneficiary for life; provided that with respect to a judge subject
to Section 75077 or 75096.3 at retirement, the beneficiary shall
receive a monthly allowance equal to that portion of the judge's
monthly allowance that exceeds the amount of the allowance deemed
payable to the judge's survivor.
(2) If the judge's designated beneficiary predeceases the judge
and the judge elected this optional settlement, the judge's allowance
shall be adjusted effective the first day of the month following the
death of the beneficiary to reflect the benefit that would have been
paid had the judge not elected an optional settlement.
(3) If the marriage of a retired judge is dissolved or annulled or
if the retired judge and his or her beneficiary spouse are legally
separated and the judgment dividing their community property awards
the total interest in this system to the retired judge, and the
retired judge elected this optional settlement, the retired judge's
allowance shall be adjusted effective the first day of the month
following the filing of the judgment with the board to reflect the
benefit that would have
been paid had the judge not elected an optional settlement.
(e) (1) The 50 Percent Beneficiary Option 3 consists of the right
to have a retirement allowance paid to the judge until his or her
death, and thereafter to have one-half of the monthly allowance paid
to his or her designated beneficiary for life, provided that, with
respect to a judge subject to Section 75077 or 75096.3 at retirement,
the beneficiary shall receive a monthly allowance equal to one-half
of that portion of the judge's allowance that exceeds the amount of
the allowance deemed payable to the judge's survivor.
(2) Upon the death of both the judge and the designated
beneficiary, any remaining balance of the judge's accumulated
contributions at retirement not used to fund the allowances paid to
the judge and the designated beneficiary will be paid in a lump sum
to the secondary beneficiary or beneficiaries designated by the
judge.
(f) (1) The 50 Percent Beneficiary Option 3 with Benefit Allowance
Increase consists of the right to have a retirement allowance paid
to the judge until his or her death and thereafter to have one-half
of the monthly allowance paid to his or her designated beneficiary
for life; provided that with respect to a judge subject to Section
75077 or 75096.3 at retirement, the beneficiary shall receive a
monthly allowance equal to one-half of that portion of the judge's
monthly allowance that exceeds the amount of the allowance deemed
payable to the judge's survivor.
(2) If the judge's designated beneficiary predeceases the judge
and the judge elected this optional settlement, the judge's allowance
shall be adjusted effective the first day of the month following the
death of the beneficiary to reflect the benefit that would have been
paid had the judge not elected an optional settlement.
(3) If the marriage of a retired judge is dissolved or annulled or
if the retired judge and his or her beneficiary spouse are legally
separated and the judgment dividing their community property awards
the total interest in this system to the retired judge, and the
retired judge elected this optional settlement, the retired judge's
allowance shall be adjusted effective the first day of the month
following the filing of the judgment with the board to reflect the
benefit that would have been paid had the judge not elected an
optional settlement.
(g) The Flexible Beneficiary Option 4 consists of the right to
have a retirement allowance paid to a judge until his or her death,
and thereafter to have a monthly allowance paid to his or her
designated beneficiary or beneficiaries for life. Subject to Section
75070.5, the judge may select the monthly allowance payable to the
designated beneficiary or beneficiaries from the options below:
(1) Specific Dollar Amount to a Beneficiary or Beneficiaries. The
judge may specify that upon his or her death after retirement, a
monthly allowance in an amount determined by the judge be paid to a
designated beneficiary or beneficiaries for life.
(2) Specific Percentage to a Beneficiary or Beneficiaries. The
judge may specify that upon his or her death after retirement, a
monthly allowance in an amount equivalent to a specified percentage
of the judge's allowance be paid to a designated beneficiary or
beneficiaries for life.
SEC. 44. Section 75073 of the Government Code is amended to read:
75073. A judge who elects to receive optional settlement two or
three in Section 75071 may concurrently and irrevocably elect to
waive the provision for an increase to his or her allowance, as
specified in subdivisions (b) and (c) of Section 75071, and shall,
instead, have his or her allowance based upon the waiver of this
benefit.
This section shall apply to any judge who retires on or before
December 31, 2017.
SEC. 45. Section 75094 of the Government Code is amended to read:
75094. (a) Notwithstanding any other provision of this article to
the contrary, the surviving spouse of a judge shall receive an
allowance that is equal to the amount that the judge would have
received had the judge been retired from service on the date of his
or her death and had elected the optional settlement specified in
subdivision (b) of Section 75071 and 75073, if all of the following
apply to the judge:
(1) The judge died in office on or after January 1, 2005.
(2) The judge had attained the minimum age for service retirement
applicable to the judge preceding his or her death, with a minimum of
20 years of service.
(3) The judge was eligible to receive an allowance pursuant to
Section 75025 or 75033.5.
(b) A surviving spouse receiving an allowance pursuant to this
section shall have no other claim to benefits with respect to the
Judges' Retirement Fund or with respect to any other provision of the
Judges' Retirement Law.
(c) The benefits provided by this section are only payable to the
surviving spouse of a judge who elects to come within this section.
Notwithstanding Section 75090, that election may be made at any time
while the judge is in office and, once made, the election is
irrevocable.
(d) This section does not prevent a surviving spouse from claiming
or receiving any payments to which he or she may be entitled as a
beneficiary under the Extended Service Incentive Program set forth in
Article 4.5 (commencing with Section 75085).
SEC. 46. Section 75522 of the Government Code is amended to read:
75522. (a) A judge is eligible to retire pursuant to this section
upon attaining both 65 years of age and 20 or more years of service,
or upon attaining 70 years of age with a minimum of five years of
service.
(b) The office of a judge who retires under this section becomes
vacant on the date of the retirement.
(c) A judge who retires pursuant to this section shall, within 30
days after the effective date of the retirement, elect to receive
either the benefits provided by subdivision (d) or the benefits
provided by subdivision (e). Under rules adopted by the board, the
time for the election may be extended in cases of illness or other
hardship, but once made, the election shall be final and irrevocable.
(d) The judge may elect to receive for life a monthly retirement
allowance equal to the benefit factor multiplied by the judge's final
compensation multiplied by the number of years of service credit.
(1) The benefit factor for a judge eligible to retire pursuant to
this section equals 3.75 percent per year of service.
(2) In no event shall the retirement allowance at the time of
retirement exceed 75 percent of the judge's final compensation.
(e) The judge may elect to receive the amount of his or her
monetary credits determined pursuant to Section 75520, including the
credits added under subdivision (b) of that section computed to the
last day of the month preceding the date of distribution. Under rules
adopted by the board, the judge may elect to receive that amount in
a single payment, or may direct that it be paid in an annuity of
actuarially equivalent value for the judge's life or in one of the
optional forms provided for in Section 75571 if the judge retires on
or before December 31, 2017, or Section 75571.5 if the judge retires
on or after January 1, 2018.
(f) If a retired judge fails or refuses to make an election
pursuant to subdivision (c) within the time allowed, he or she shall
be deemed to have elected to receive a monthly retirement allowance
under subdivision (d).
SEC. 47. Section 75570 of the Government Code is amended to read:
75570. (a) In lieu of electing the unmodified allowance under
subdivision (d) of Section 75522 for his or her life alone, a judge
who elects to retire with a monthly allowance under subdivision (d)
of Section 75522 may elect to have the actuarial equivalent of his or
her retirement allowance as of the date of retirement applied to a
lesser retirement allowance, in accordance with one of the optional
settlements specified in Section 75571 if the judge retires on or
before December 31, 2017, or Section 75571.5 if the judge retires on
or after January 1, 2018.
(b) That election, revocation, or change of election shall be made
by a writing filed with the system within 30 calendar days after the
making of the first payment on account of any retirement allowance.
(c) If there is a spouse who would qualify for the survivor
allowance under subdivision (b) of Section 75590, then the election,
with respect to any optional settlement other than the optional
settlement in subdivision (a) of Section 75571 or subdivision (b) of
Section 75571.5, shall apply only to the portion of the retirement
allowance that exceeds the amount of the allowance deemed payable to
the surviving spouse.
SEC. 48. Section 75570.5 is added to the Government Code, to read:
75570.5. If a judge elects an optional settlement that provides
for a monthly allowance for his or her surviving spouse, the combined
allowance payable to the surviving spouse pursuant to the optional
settlement and Section 75590, if applicable, cannot exceed the amount
of the judge's monthly allowance.
SEC. 49. Section 75571 of the Government Code is amended to read:
75571. This section shall apply to any judge who retires on or
before December 31, 2017.
(a) Optional settlement one consists of the right to have a
retirement allowance paid to the judge until his or her death and if
he or she dies before he or she receives the amount of his or her
accumulated contributions at retirement, to have the balance at death
paid to his or her surviving spouse or estate.
(b) (1) Optional settlement two consists of the right to have a
retirement allowance paid to the judge until his or her death and
thereafter to his or her surviving spouse for life.
(2) If the judge's spouse predeceases the judge and the judge
elected this optional settlement to be effective on or after January
1, 2002, the judge's allowance shall be adjusted effective the first
day of the month following the death of the spouse to reflect the
benefit that would have been paid had the judge not elected an
optional settlement.
(3) If the marriage of a retired judge is dissolved or annulled or
if the retired judge and his or her spouse are legally separated and
the judgment dividing their community property awards the total
interest in this system to the retired judge, and the retired judge
elected this optional settlement to be effective on or after January
1, 2002, the retired judge's allowance shall be adjusted effective
the first day of the month following the filing of the judgment with
the board to reflect the benefit that would have been paid had the
judge not elected an optional settlement.
(c) (1) Optional settlement three consists of the right to have a
retirement allowance paid to the judge until his or her death, and
thereafter to have one-half of his or her retirement allowance paid
to his or her surviving spouse for life.
(2) If the judge's spouse predeceases the judge and the judge
elected this optional settlement to be effective on or after January
1, 2002, the judge's allowance shall be adjusted effective the first
day of the month following the death of the spouse to reflect the
benefit that would have been paid had the judge not elected an
optional settlement.
(3) If the marriage of a retired judge is dissolved or annulled or
if the retired judge and his or her spouse are legally separated and
the judgment dividing their community property awards the total
interest in this system to the retired judge, and the retired judge
elected this optional settlement to be effective on or after January
1, 2002, the retired judge's allowance shall be adjusted effective
the first day of the month following the filing of the judgment with
the board to reflect the benefit that would have been paid had the
judge not elected an optional settlement.
(d) Optional settlement four consists of other benefits that are
the actuarial equivalent of his or her retirement allowance, that he
or she may select subject to the approval of the board.
SEC. 50. Section 75571.5 is added to the Government Code, to read:
75571.5. This section shall apply to any judge who retires on or
after January 1, 2018.
(a) The unmodified allowance consists of the right to have the
maximum retirement allowance paid to the judge for his or her life
alone. A continuing allowance to the surviving spouse, other than the
benefit provided in subdivision (b) of Section 75590, is not
provided and there is not a return of unused accumulated
contributions after the death of the judge.
(b) The Return of Remaining Contributions Option 1 consists of the
right to have a retirement allowance paid to the judge for his or
her life alone and if he or she dies before he or she receives in
annuity payments the amount of his or her accumulated contributions
at retirement, to have the balance at death paid to his or her
surviving spouse, or if none, to his or her estate.
(c) (1) The 100 Percent Beneficiary Option 2 consists of the right
to have a retirement allowance paid to the judge until his or her
death and thereafter to have the same monthly allowance paid to his
or her surviving spouse for life; provided that with respect to a
judge subject to subdivision (b) of Section 75590, the surviving
spouse shall receive that portion of the judge's monthly allowance
that exceeds the amount of the allowance deemed payable pursuant to
subdivision (b) of Section 75590.
(2) Upon the death of both the judge and the surviving spouse, any
remaining balance of the judge's accumulated contributions at
retirement not used to fund the allowances paid to the judge and the
surviving spouse pursuant to this subdivision will be paid in a lump
sum to the estate of the deceased.
(d) (1) The 100 Percent Beneficiary Option 2 with Benefit
Allowance Increase consists of the right to have a retirement
allowance paid to the judge until his or her death and thereafter to
have the same monthly allowance paid to his or her surviving spouse
for life; provided that with respect to a judge subject to
subdivision (b) of Section 75590, the surviving spouse shall receive
that portion of the judge's monthly allowance that exceeds the amount
of the allowance deemed payable pursuant to subdivision (b) of
Section 75590.
(2) If the judge's spouse predeceases the judge and the judge
elected this optional settlement, the judge's allowance shall be
adjusted effective the first day of the month following the death of
the spouse to reflect the benefit that would have been paid had the
judge not elected an optional settlement.
(3) If the marriage of a retired judge is dissolved or annulled or
if the retired judge and his or her spouse are legally separated and
the judgment dividing their community property awards the total
interest in this system to the retired judge, and the retired judge
elected this optional settlement, the retired judge's allowance shall
be adjusted effective the first day of the month following the
filing of the judgment with the board to reflect the benefit that
would have been paid had the judge not elected an optional
settlement.
(e) (1) The 50 Percent Beneficiary Option 3 consists of the right
to have a retirement allowance paid to the judge until his or her
death and thereafter to have one-half of the monthly allowance paid
to his or her surviving spouse for life; provided that with respect
to a judge subject to subdivision (b) of Section 75590, the surviving
spouse shall receive one-half of that portion of the judge's monthly
allowance that exceeds the amount of the allowance deemed payable
pursuant to subdivision (b) of Section 75590.
(2) Upon the death of both the judge and the surviving spouse, any
remaining balance of the judge's accumulated contributions at
retirement not used to fund the allowances paid to the judge and the
surviving spouse pursuant to this subdivision will be paid in a lump
sum to the estate of the deceased.
(f) (1) The 50 Percent Beneficiary Option 3 with Benefit Allowance
Increase consists of the right to have a retirement allowance paid
to the judge until his or her death and thereafter to have one-half
of the monthly allowance paid to his or her surviving spouse for
life; provided that with respect to a judge subject to subdivision
(b) of Section 75590, the surviving spouse shall receive one-half of
that portion of the judge's monthly allowance that exceeds the amount
of the allowance deemed payable pursuant to subdivision (b) of
Section 75590.
(2) If the judge's spouse predeceases the judge and the judge
elected this optional settlement, the judge's allowance shall be
adjusted effective the first day of the month following the death of
the spouse to reflect the benefit that would have been paid had the
judge not elected an optional settlement.
(3) If the marriage of a retired judge is dissolved or annulled or
if the retired judge and his or her spouse are legally separated and
the judgment dividing their community property awards the total
interest in this system to the retired judge, and the retired judge
elected this optional settlement, the retired judge's allowance shall
be adjusted effective the first day of the month following the
filing of the judgment with the board to reflect the benefit that
would have been paid had the judge not elected an optional
settlement.
(g) The Flexible Beneficiary Option 4 consists of the right to
have a retirement allowance paid to a judge until his or her death,
and thereafter to have a monthly allowance paid to his or her
surviving spouse for life. Subject to Section 75570.5, the judge may
select the monthly allowance payable to the surviving spouse from the
options below:
(1) Specific Dollar Amount to a Surviving Spouse. The judge may
specify that upon his or her death after retirement, a monthly
allowance in an amount determined by the judge be paid to his or her
surviving spouse for life.
(2) Specific Percentage to a Surviving Spouse. The judge may
specify that upon his or her death after retirement, a monthly
allowance in an amount equivalent to a specified percentage of the
judge's allowance be paid to his or her surviving spouse for life.
SEC. 51. Section 75573 of the Government Code is amended to read:
75573. A judge who elects to receive optional settlement two or
three in Section 75571 may concurrently and irrevocably elect to
waive the provision for an increase to his or her allowance, as
specified in subdivisions (b) and (c) of Section 75571, and shall,
instead, have his or her allowance based upon the waiver of this
benefit.
This section shall apply to any judge who retires on or before
December 31, 2017.
SEC. 52. Section 75590 of the Government Code is amended to read:
75590. (a) A surviving spouse of a judge who was eligible to
retire pursuant to subdivision (a) of Section 75522 shall, within 90
days after the judge's death, elect to receive either of the
following:
(1) A monthly retirement allowance equal to one-half of the judge'
s benefit factor computed as stated in subdivision (d) of Section
75522 as of the date of death, multiplied by the judge's final
compensation multiplied by the number of years of service credit.
This allowance shall be adjusted for changes in the cost of living as
provided in Section 75523.
(2) The judge's monetary credits determined pursuant to Section
75520, including the credits added under subdivision (b) of that
section computed to the last day of the month preceding the date of
distribution.
(b) A surviving spouse of a retired judge who elected to receive a
monthly allowance under subdivision (d) of Section 75522 or who was
retired for disability and receiving an allowance under Section
75560.4 shall receive a monthly allowance equal to 50 percent of the
deceased judge's last monthly retirement allowance. This allowance
shall be adjusted for changes in the cost of living as provided in
Section 75523.
(c) (1) Notwithstanding any other provision of this article to the
contrary, the surviving spouse of a judge who (A) died in office,
(B) had attained the minimum age for service retirement applicable to
the judge preceding his or her death, with a minimum of 20 years of
service, and (C) was eligible to receive an allowance pursuant to
Section 75522, shall receive an allowance that is equal to the amount
that the judge would have received if the judge had been retired
from service on the date of death and had elected the optional
settlement specified in subdivision (b) of Section 75571 and in
Section 75573.
(2) A surviving spouse receiving an allowance pursuant to this
subdivision shall have no other claim to benefits with respect to the
Judges' Retirement Fund or with respect to any other provision of
the Judges' Retirement System II Law.
(3) The benefits provided by this subdivision are only payable to
the surviving spouse of a judge who elects to come within this
subdivision. That election may be made at any time while the judge is
in office and, once made, the election is irrevocable.
(d) A monthly allowance payable to a surviving spouse pursuant to
this section is payable commencing upon the death of the judge and
continuing until the death of the surviving spouse.
