Bill Text: CA SB350 | 2011-2012 | Regular Session | Enrolled
Bill Title: Public Employees' Retirement System: preretirement death
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Vetoed) 2012-02-29 - Consideration of Governor's veto stricken from file. Veto sustained. [SB350 Detail]
Download: California-2011-SB350-Enrolled.html
BILL NUMBER: SB 350 ENROLLED
BILL TEXT
PASSED THE SENATE JUNE 1, 2011
PASSED THE ASSEMBLY AUGUST 15, 2011
INTRODUCED BY Senator Negrete McLeod
FEBRUARY 15, 2011
An act to amend Sections 21571, 21572, 21573, 21574.7, and 21581
of the Government Code, relating to the Public Employees' Retirement
System.
LEGISLATIVE COUNSEL'S DIGEST
SB 350, Negrete McLeod. Public Employees' Retirement System:
preretirement death benefits.
The Public Employees' Retirement Law provides preretirement death
benefits for the surviving spouse or children, or both, as specified,
of state members and specified school members not covered by the
federal Social Security Act. That law prescribes various allowances
for preretirement death benefits, as specified. That law specifies
certain benefits known as the 1959 survivor allowance.
Existing law requires, on and after the date determined by the
board, all assets and liabilities of all contracting agencies subject
to the 1959 survivor allowance, and their employees, on account of
benefits provided, to be pooled into a single account, and a single
employer rate to be established to provide benefits under that
provision on account of members employed by a contracting agency that
is subject to those provisions.
This bill would require assets and liabilities of contracting
agencies subject to those provisions to be pooled, as specified,
after June 30, 2012. The bill would also provide that on and after
July 1, 2012, certain members employed by a contracting agency
entitled to receive benefits under the 1959 survivor allowance
provisions instead receive increased benefits, as specified.
Existing law specifies that if a contracting agency has a surplus
in its 1959 survivor benefit account as of the date the contracting
agency becomes subject to certain provisions of law, the surplus
shall be applied to reduce its rate of contribution. Existing law
also specifies that if a contracting agency that is subject to those
provisions has a deficit in its 1959 survivor benefit account as of
the date the contracting agency becomes subject to these provisions,
its rate of contribution shall be increased until the deficit is
paid.
This bill would delete those provisions.
Existing law requires the rate of contribution of a member subject
to the above-described provisions to include, in addition to his or
her normal rate, $2 per month or fraction thereof, or $0.93 for each
biweekly payroll period or fraction thereof, where salaries are paid
on that basis. Existing law requires that those contributions not
become a part of a member's accumulated contributions or be treated
or administered as normal contributions and not be refundable to a
member under any circumstances. Existing law provides that those
contributions are available only for payment of 1959 survivor
allowances.
Notwithstanding those provisions, with respect to the combined
assets and liabilities that are pooled, as described above, this bill
would provide, if the board determines that there exists a
reasonable actuarial amortization of surplus funds that will fully
pay for total annual premiums for benefits and the surplus exceeds
200% of the total liabilities of the pool, that the rate of
contribution of a member shall be his or her normal rate with no
additional contribution, as specified.
The bill would also make related changes to reflect that these
provisions may apply to nonstate employees, including school members,
as well as contracting agencies.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 21571 of the Government Code is amended to
read:
21571. (a) If the death benefit provided by Section 21532 is
payable on account of a member's death that occurs under
circumstances other than those described in subparagraph (F) of
paragraph (1) of subdivision (a) of Section 21530, or if an allowance
under Section 21546 is payable, the payment pursuant to subdivision
(b) shall be made, in the following order of priority:
(1) The surviving wife or surviving husband of the member, who has
the care of unmarried children, including stepchildren, of the
member who are under 22 years of age, or are incapacitated because of
disability that began before and has continued without interruption
after attainment of that age.
(2) The guardian or conservator of surviving unmarried children,
including stepchildren, of the member who are under 22 years of age
or are so incapacitated.
(3) The surviving wife or surviving husband of the member, who
does not qualify under paragraph (1).
(4) Each surviving parent of the member.
(b) Regardless of the benefit provided by Section 21532 and of the
beneficiary designated by the member under that section, or
regardless of the allowance provided under Section 21546, the
following applicable 1959 survivor allowance, under the conditions
stated and from contributions of the employer, shall be paid:
(1) A surviving spouse who was either continuously married to the
member for at least one year prior to death, or was married to the
member prior to the occurrence of the injury or onset of the illness
that resulted in death, and has the care of unmarried children,
including stepchildren, of the deceased member who are under 22 years
of age or are so incapacitated, shall be paid three hundred sixty
dollars ($360) if there is one child or four hundred thirty dollars
($430) per month if there are two or more children. If there also are
children who are not in the care of the surviving spouse, the
portion of the allowance payable under this paragraph, assuming that
these children were in the care of the surviving spouse, which is in
excess of one hundred eighty dollars ($180) per month, shall be
divided equally among all those children and payments made to the
spouse and other children, as the case may be.
(2) If there is no surviving spouse, or if the surviving spouse
dies, and if there are unmarried children, including stepchildren, of
the deceased member who are under 22 years of age or are so
incapacitated, or if there are children not in the care of the
spouse, the children shall be paid an allowance as follows:
(A) If there is only one child, the child shall be paid one
hundred eighty dollars ($180) per month.
(B) If there are two children, the children shall be paid three
hundred sixty dollars ($360) per month divided equally between them.
(C) If there are three or more children, the children shall be
paid four hundred thirty dollars ($430) per month divided equally
among them.
(3) A surviving spouse who has attained or attains the age of 62
years and, with respect to that surviving spouse, who was either
continuously married to the member for at least one year prior to
death, or who was married to the member prior to the occurrence of
the injury or onset of the illness which resulted in death, shall be
paid one hundred eighty dollars ($180) per month. No allowance shall
be paid under this paragraph while the surviving spouse is receiving
an allowance under paragraph (1), or while an allowance is being paid
under subparagraph (C) of paragraph (2). The allowance paid under
this paragraph shall be seventy dollars ($70) per month while an
allowance is being paid under subparagraph (B) of paragraph (2).
(4) If there is no surviving spouse or surviving child who
qualifies for a 1959 survivor allowance, or if the surviving spouse
dies and there is no surviving child, or if the surviving spouse dies
and the children die or marry or, if not incapacitated, reach 22
years of age, each of the member's dependent parents who has attained
or attains 62 years of age, and who received at least one-half of
his or her support from the member at the time of the member's death,
shall be paid one hundred eighty dollars ($180) per month.
(c) "Stepchildren," for purposes of this section, shall include
only stepchildren of the member living with him or her in a regular
parent-child relationship at the time of his or her death.
(d) The amendments to this section by Chapter 1617 of the Statutes
of 1971 shall apply only to 1959 survivor allowances payable April
1, 1972, and thereafter.
(e) This section does not apply to any member in the employ of an
employer not subject to this section on January 1, 1994.
(f) On and after the date determined by the board, all assets and
liabilities of all contracting agencies subject to this section, and
their employees, on account of benefits provided under this article
shall be pooled into a single account, and a single employer rate
shall be established to provide benefits under this section on
account of members employed by a contracting agency that is subject
to this section. On and after July 1, 2012, assets and liabilities of
contracting agencies subject to this section shall be pooled as
specified in subdivision (g) of Section 21573.
(g) The rate of contribution of an employer subject to this
section shall be figured using the term insurance valuation method,
pursuant to subdivision (h) of Section 21573. If a contracting agency
that is subject to this section is projected to have a surplus in
its 1959 survivor benefit account as of the date the assets and
liabilities are first pooled, the surplus shall be applied to reduce
its rate of contribution. If a contracting agency that is subject to
this section is projected to have a deficit in its 1959 survivor
benefit account as of the date the assets and liabilities are first
pooled, its rate of contribution shall be increased until the
projected deficit is paid.
(h) On and after July 1, 2012, all members employed by a
contracting agency entitled to receive benefits under this section
shall instead receive benefits provided under Section 21573.
SEC. 2. Section 21572 of the Government Code is amended to read:
21572. (a) In lieu of benefits provided in Section 21571, if the
death benefit provided by Section 21532 is payable on account of a
member's death that occurs under circumstances other than those
described in subparagraph (F) of paragraph (1) of subdivision (a) of
Section 21530, or if an allowance under Section 21546 is payable, the
payment pursuant to subdivision (b) shall be made in the following
order of priority:
(1) The surviving wife or surviving husband of the member who has
the care of unmarried children, including stepchildren, of the member
who are under 22 years of age or are incapacitated because of a
disability that began before and has continued without interruption
after attainment of that age.
(2) The guardian of surviving unmarried children, including
stepchildren, of the member who are under 22 years of age or are so
incapacitated.
(3) The surviving wife or surviving husband of the member who does
not qualify under paragraph (1).
(4) Each surviving parent of the member.
(b) Regardless of the benefit provided by Section 21532 and of the
beneficiary designated by the member under that section, or
regardless of the allowance provided under Section 21546, the
following applicable 1959 survivor allowance, under the conditions
stated and from contributions of the employer, shall be paid:
(1) A surviving spouse who was either continuously married to the
member for at least one year prior to death, or was married to the
member prior to the occurrence of the injury or onset of the illness
that resulted in death, and has the care of unmarried children,
including stepchildren, of the deceased member who are under 22 years
of age or are so incapacitated, shall be paid four hundred fifty
dollars ($450) per month if there is one child or five hundred
thirty-eight dollars ($538) per month if there are two or more
children. If there also are children who are not in the care of the
surviving spouse, the portion of the allowance payable under this
paragraph, assuming that these children were in the care of the
surviving spouse, that is in excess of two hundred twenty-five
dollars ($225) per month, shall be divided equally among all those
children and payments made to the spouse and other children, as the
case may be.
(2) If there is no surviving spouse, or if the surviving spouse
dies, and if there are unmarried children, including stepchildren, of
the deceased member who are under 22 years of age or are so
incapacitated, or if there are children not in the care of the
spouse, the children shall be paid an allowance as follows:
(A) If there is only one child, the child shall be paid two
hundred twenty-five dollars ($225) per month.
(B) If there are two children, the children shall be paid four
hundred fifty dollars ($450) per month divided equally between them.
(C) If there are three or more children, the children shall be
paid five hundred thirty-eight dollars ($538) per month divided
equally among them.
(3) A surviving spouse who has attained or attains the age of 62
years and, with respect to that surviving spouse, who was either
continuously married to the member for at least one year prior to
death, or was married to the member prior to the occurrence of the
injury or onset of the illness that resulted in death, shall be paid
two hundred twenty-five dollars ($225) per month. No allowance shall
be paid under this paragraph while the surviving spouse is receiving
an allowance under paragraph (1) or while an allowance is being paid
under subparagraph (C) of paragraph (2). The allowance paid under
this paragraph shall be eighty-eight dollars ($88) per month while an
allowance is being paid under subparagraph (B) of paragraph (2).
(4) If there is no surviving spouse or surviving child who
qualifies for a 1959 survivor allowance, or if the surviving spouse
dies and there is no surviving child, or if the surviving spouse dies
and the children die or marry or, if not incapacitated, reach 22
years of age, each of the member's dependent parents who has attained
or attains the age of 62 years, and who received at least one-half
of his or her support from the member at the time of the member's
death, shall be paid two hundred twenty-five dollars ($225) per
month.
(c) "Stepchildren," for purposes of this section, shall include
only stepchildren of the member living with him or her in a regular
parent-child relationship at the time of his or her death.
(d) This section shall apply to beneficiaries receiving 1959
survivor allowances on July 1, 1975, as well as to beneficiaries with
respect to the death of a state member occurring on or after July 1,
1975.
(e) This section shall apply, with respect to benefits payable on
and after July 1, 1981, to all members employed by a school employer,
and school safety members employed with a school district or
community college district as defined in subdivision (i) of Section
20057, except that it shall not apply, without contract amendment,
with respect to safety members who became members after July 1, 1981.
All assets and liabilities of all school employers, and their
employees, on account of benefits provided under this article shall
be pooled into a single account, and a single employer rate shall be
established to provide benefits under this section on account of all
miscellaneous members employed by a school employer and all safety
members who are members on July 1, 1981.
(f) This section does not apply to any member in the employ of an
employer not subject to this section on January 1, 1994.
(g) On and after January 1, 2000, all state members covered by
this section shall be covered by the benefit provided under Section
21574.7.
(h) On and after the date determined by the board, all assets and
liabilities of all contracting agencies subject to this section, and
their employees, on account of benefits provided under this article
shall be pooled into a single account, and a single employer rate
shall be established to provide benefits under this section on
account of members employed by a contracting agency that is subject
to this section. On and after July 1, 2012, assets and liabilities of
contracting agencies subject to this section shall be pooled as
specified in subdivision (g) of Section 21573.
(i) The rate of contribution of an employer subject to this
section shall be figured using the term insurance valuation method
pursuant to subdivision (h) of Section 21573. If a contracting agency
that is subject to this section is projected to have a surplus in
its 1959 survivor benefit account as of the date the assets and
liabilities are first pooled, the surplus shall be applied to reduce
its rate of contribution. If a contracting agency that is subject to
this section is projected to have a deficit in its 1959 survivor
benefit account as of the date the assets and liabilities are first
pooled, its rate of contribution shall be increased until the
projected deficit is paid.
(j) After June 30, 2012, all members employed by a contracting
agency entitled to receive benefits under this section shall instead
receive benefits provided under Section 21573.
SEC. 3. Section 21573 of the Government Code is amended to read:
21573. (a) In lieu of benefits provided in Section 21571 or
Section 21572, if the death benefit provided by Section 21532 is
payable on account of a member's death that occurs under
circumstances other than those described in subparagraph (F) of
paragraph (1) of subdivision (a) of Section 21530, or if an allowance
under Section 21546 is payable, the payment pursuant to subdivision
(b) shall be made in the following order of priority:
(1) The surviving wife or surviving husband of the member who has
the care of unmarried children, including stepchildren, of the member
who are under 22 years of age or are incapacitated because of a
disability that began before and has continued without interruption
after attainment of that age.
(2) The guardian of surviving unmarried children, including
stepchildren, of the member who are under 22 years of age or are so
incapacitated.
(3) The surviving wife or surviving husband of the member who does
not qualify under paragraph (1).
(4) Each surviving parent of the member.
(b) Regardless of the benefit provided by Section 21532 and of the
beneficiary designated by the member under that section, or
regardless of the allowance provided under Section 21546, the
following applicable 1959 survivor allowance, under the conditions
stated and from contributions of the employer, shall be paid:
(1) A surviving spouse who was either continuously married to the
member for at least one year prior to death, or who was married to
the member prior to the occurrence of the injury or onset of the
illness that resulted in death, and has the care of unmarried
children, including stepchildren, of the deceased member who are
under 22 years of age or are so incapacitated, shall be paid seven
hundred dollars ($700) per month if there is one child, or eight
hundred forty dollars ($840) per month if there are two or more
children. If there also are children who are not in the care of the
surviving spouse, the portion of the allowance payable under this
paragraph, assuming that these children were in the care of the
surviving spouse, that is in excess of three hundred fifty dollars
($350) per month, shall be divided equally among all those children
and payments made to the spouse and other children, as the case may
be.
(2) If there is no surviving spouse, or if the surviving spouse
dies, and if there are unmarried children, including stepchildren, of
the deceased member who are under 22 years of age or are so
incapacitated, or if there are children not in the care of the
spouse, the children shall be paid an allowance as follows:
(A) If there is only one child, the child shall be paid three
hundred fifty dollars ($350) per month.
(B) If there are two children, the children shall be paid seven
hundred dollars ($700) per month divided equally between them.
(C) If there are three or more children, the children shall be
paid eight hundred forty dollars ($840) per month divided equally
among them.
(3) A surviving spouse who has attained or attains the age of 62
years, and, with respect to that surviving spouse, who was either
continuously married to the member for at least one year prior to
death, or who was married to the member prior to the occurrence of
the injury or onset of the illness that resulted in death, shall be
paid three hundred fifty dollars ($350) per month. No allowance shall
be paid under this paragraph while the surviving spouse is receiving
an allowance under paragraph (1) or while an allowance is being paid
under subparagraph (C) of paragraph (2). The allowance paid under
this paragraph shall be one hundred forty dollars ($140) per month
while an allowance is being paid under subparagraph (B) of paragraph
(2).
(4) If there is no surviving spouse or surviving child who
qualifies for the 1959 survivor allowance, or if the surviving spouse
dies and there is no surviving child, or if the surviving spouse
dies and the children die or marry or, if not incapacitated, reach 22
years of age, each of the member's dependent parents who has
attained or attains the age of 62 years, and who received at least
one-half of his or her support from the member at the time of the
member's death, shall be paid three hundred fifty dollars ($350) per
month.
(c) "Stepchildren," for purposes of this section, shall include
only stepchildren of the member living with the member in a regular
parent-child relationship at the time of the death of the member.
(d) This section shall apply to beneficiaries of state members
whose death occurred before January 1, 1985. Where a surviving spouse
attained the age of 62 years prior to January 1, 1987, entitlement
shall exist retroactive to January 1, 1985, or to his or her 62nd
birthday, whichever is later. All assets and liabilities of all state
agencies and their employees on account of benefits provided to
beneficiaries specified in this subdivision shall be pooled into a
single account. The board shall transfer from the reserve for 1959
survivor contributions retained in the retirement fund an amount
sufficient to pay the cost of the increased benefits provided by this
subdivision for beneficiaries of members who died on or before
December 31, 1984.
(e) This section shall not apply to beneficiaries with respect to
the death of a state member, except as provided in subdivision (i),
occurring on or after January 1, 1985, unless provided for in a
memorandum of understanding reached pursuant to Section 3517.5, or
authorized by the Director of Personnel Administration for
classifications of state employees that are excluded from, or not
subject to, collective bargaining. The memorandum of understanding
adopting this section shall be controlling without further
legislative action, except that if those provisions of a memorandum
of understanding require the expenditure of funds, those provisions
shall not become effective unless approved by the Legislature as
provided by law.
(f) This section shall apply, with respect to benefits payable on
and after January 1, 1985, to school members and to school safety
members, as defined in Section 20444. All assets and liabilities of
all school employers, and their employees, on account of benefits
provided under this article shall be pooled into a single account,
and a single employer rate shall be established to provide benefits
under this section on account of school members employed by a school
employer.
(g) This section shall apply to members of a contracting agency
that first elects in its contract with the board to make this article
applicable to its employees prior to July 1, 2001, and has not
subsequently amended its contract to provide benefits pursuant to
Section 21574 or 21574.5. All assets and liabilities of all
contracting agencies subject to this section, and their employees, on
account of benefits provided under this article shall be pooled into
a single account, and a single employer rate shall be established to
provide benefits under this section on account of members employed
by a contracting agency that is subject to this section. Any public
agency first contracting with the board on or after January 1, 1994,
and prior to July 1, 2001, or any contracting agency amending its
contract to remove exclusions of member classifications on or after
January 1, 1994, and prior to July 1, 2001, that has not, pursuant to
Section 418 of Title 42 of the United States Code, entered into an
agreement with the federal government for the coverage of its
employees under the federal system, shall be subject to this section.
(h) The rate of contribution of an employer subject to this
section shall be figured using the term insurance valuation method.
(i) This section shall not apply to beneficiaries with respect to
the death of a state member employed by the California State
University occurring on or after January 1, 1988, unless provided for
in a memorandum of understanding reached pursuant to Chapter 12
(commencing with Section 3560) of Division 4 of Title 1, or
authorized by the Trustees of the California State University for
employees excluded from collective bargaining. The memorandum of
understanding shall be controlling without further legislative
action, except that if the provisions of a memorandum of
understanding require the expenditure of funds, the provisions shall
not become effective unless approved by the Legislature in the annual
Budget Act.
(j) This section shall apply to local members employed by a
contracting agency that has included this benefit in its contract
with the board on or before June 30, 2001.
(k) This section shall not apply to any contracting agency that
first contracts with the board on or after July 1, 2001.
( l ) On and after January 1, 2000, all eligible state
and school members covered by this section shall be covered by the
benefit provided under Section 21574.7.
(m) After June 30, 2012, assets and liabilities of contracting
agencies subject to Sections 21571 and 21572 shall be pooled with
assets and liabilities of contracting agencies subject to this
section into a single account, and a single employer rate shall be
established to provide benefits under this section.
SEC. 4. Section 21574.7 of the Government Code is amended to read:
21574.7. (a) In lieu of benefits provided in Section 21571,
21572, or 21573, if the death benefit provided by Section 21532 is
payable on account of a member's death that occurs under
circumstances other than those described in subparagraph (F) of
paragraph (1) of subdivision (a) of Section 21530, or if an allowance
under Section 21546 is payable, the payment pursuant to subdivision
(b) shall be made in the following order of priority:
(1) The surviving spouse of the member who has the care of
unmarried children, including stepchildren, of the member who are
under 22 years of age or are incapacitated because of a disability
that began before and has continued without interruption after the
attainment of that age.
(2) The guardian of surviving unmarried children, including
stepchildren, of the member who are under 22 years of age or are so
incapacitated.
(3) The surviving spouse of the member who does not qualify under
paragraph (1).
(4) Each surviving parent of the member.
(b) Regardless of the benefit provided by Section 21532 and of the
beneficiary designated by the member under that section, or
regardless of the allowance provided under Section 21546, the
following applicable 1959 survivor allowance, under the conditions
stated and from contributions of the employer, shall be paid:
(1) A surviving spouse who was either continuously married to the
member for at least one year prior to death, or was married to the
member prior to the occurrence of the injury or onset of the illness
that resulted in death, and has the care of unmarried children,
including stepchildren, of the deceased member who are under 22 years
of age or are so incapacitated, shall be paid one thousand five
hundred dollars ($1,500) per month if there is one child or one
thousand eight hundred dollars ($1,800) per month if there are two or
more children. If there also are children who are not in the care of
the surviving spouse, the portion of the allowance payable under
this paragraph, assuming that these children were in the care of the
surviving spouse, that is in excess of seven hundred fifty dollars
($750) per month, shall be divided equally among all those children
and payments made to the spouse and other children, as the case may
be.
(2) If there is no surviving spouse, or if the surviving spouse
dies, and if there are unmarried children, including stepchildren, of
the deceased member who are under 22 years of age or are so
incapacitated, or if there are children not in the care of the
spouse, the children shall be paid an allowance as follows:
(A) If there is only one child, the child shall be paid seven
hundred fifty dollars ($750) per month.
(B) If there are two children, the children shall be paid one
thousand five hundred dollars ($1,500) per month divided equally
between them.
(C) If there are three or more children, the children shall be
paid one thousand eight hundred dollars ($1,800) per month divided
equally among them.
(3) A surviving spouse who has attained or attains the age of 60
years, and who was either continuously married to the member for at
least one year prior to death, or was married to the member prior to
the occurrence of the injury or onset of the illness that resulted in
death, shall be paid seven hundred fifty dollars ($750) per month.
No allowance shall be paid under this paragraph while the surviving
spouse is receiving an allowance under paragraph (1) or while an
allowance is being paid under subparagraph (C) of paragraph (2). The
allowance paid under this paragraph shall be three hundred dollars
($300) per month while an allowance is being paid under subparagraph
(B) of paragraph (2).
(4) If there is no surviving spouse or surviving child who
qualifies for the 1959 survivor allowance, or if the surviving spouse
dies and there is no surviving child, or if the surviving spouse
dies and the children die or marry or, if not incapacitated, reach 22
years of age, each of the member's dependent parents who has
attained or attains the age of 60 years, and who received at
least one-half of his or her
support from the member at the time of the member's death, shall be
paid seven hundred fifty dollars ($750) per month.
(c) "Stepchildren," for purposes of this section, shall include
only stepchildren of the member living with the member in a regular
parent-child relationship at the time of the death of the member.
(d) This section shall only apply to state and school members
effective on or after January 1, 2000.
(e) All assets and liabilities of state employers subject to this
section, and their employees, on account of benefits provided under
this article shall be pooled into a single account, and a single
employer rate shall be established to provide benefits under this
section on account of state members employed by the state.
(f) All assets and liabilities of school employers, as defined in
Section 20063, that are subject to this section, and their employees,
on account of benefits provided under this article shall be pooled
into a single account, and a single employer rate shall be
established to provide benefits under this section.
(g) The rate of contribution of an employer subject to this
section shall be calculated using a method determined by the board.
Surplus assets shall be applied to reduce the rate of contribution.
If a deficit exists, the rate of contribution shall be increased
until the deficit is paid.
(h) On and after January 1, 2000, all state and school members
shall be covered by this section.
SEC. 5. Section 21581 of the Government Code is amended to read:
21581. (a) The rate of contribution of a member subject to this
article shall include, in addition to his or her normal rate, two
dollars ($2) per month or fraction thereof, or ninety-three cents
($0.93) for each biweekly payroll period or fraction thereof, where
salaries are paid on that basis. Those contributions shall not become
a part of a member's accumulated contributions or be treated or
administered as normal contributions and shall not be refundable to a
member under any circumstances. Those contributions shall be
available only for payment of 1959 survivor allowances.
(b) Notwithstanding subdivision (a), with respect to the combined
assets and liabilities under Section 21571, 21572, or 21573 that are
pooled pursuant to subdivision (g) of Section 21573, if the board
determines that there exists a reasonable actuarial amortization of
surplus funds that will fully pay for total annual premiums for
benefits pursuant to Section 21573 and the surplus exceeds 200
percent of the total liabilities of the pool, the rate of
contribution of a member subject to Section 21573 shall be his or her
normal rate with no additional contribution.
(c) Notwithstanding subdivision (a), the total required monthly
premium for Section 21574.5, as determined by the board, shall be
offset by the uniform amortization of surplus assets within this
account. If the total monthly premium is equal to, or less than, four
dollars ($4), the member contribution portion shall be two dollars
($2) per month and the employer shall pay the difference, if any. If
the total monthly premium required exceeds four dollars ($4), the
member and the employer shall evenly share the total required monthly
premium.
(d) Notwithstanding subdivision (a), the total monthly premium
required for Section 21574.7, as determined by the board, shall be
offset by the uniform amortization of surplus assets within this
account. Member contributions shall be two dollars ($2) per month
until such time as the future required monthly premium exceeds four
dollars ($4), and the employer shall pay the difference between the
total required monthly premium and the member's contribution. Once
the total required monthly premium exceeds four dollars ($4), the
member and the employer shall evenly share the required monthly
premium.
