Amended IN Senate April 17, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 885Introduced by Committee on Labor, Public Employment and Retirement (Senators Cortese (Chair), Durazo, Laird, Smallwood-Cuevas, and Wilk)March 14, 2023An act to add Section 22338 to the Education Code, to amend Sections 20537, 31462, 31462.05, 31462.2, 31593, 31706, 31725.7, 31726, 31776.3, 75571, and 75571.5 of, and to add Section 21714.5 to, the Government Code, relating to public employees retirement, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGESTSB 885, as amended, Committee on Labor, Public Employment and Retirement. Public employees retirement.(1) The Teachers Retirement Law establishes the State Teachers Retirement System (STRS) and creates the Defined Benefit Program of the State Teachers Retirement Plan, which provides a defined benefit to members of the program, based on final compensation, credited service, and age at retirement, subject to certain variations. STRS is administrated by the Teachers Retirement Board. The Defined Benefit Program is funded by employer and employee contributions, as well as investment returns and state appropriations, which are deposited or credited to the Teachers Retirement Fund, which is continuously appropriated for the purposes of the system.Existing law, the California Fair Employment and Housing Act (FEHA), prohibits an employer from engaging in various defined forms of discriminatory employment practices. Existing law makes it an unlawful employment practice under FEHA for an employer with 5 or more employees to, among other things, include on any application for employment any question that seeks the disclosure of an applicants conviction history, to inquire into or consider the conviction history of an applicant until that applicant has received a conditional offer, and, when conducting a conviction history background check, to consider, distribute, or disseminate information related to specified prior arrests, diversions, and convictions. Existing law specifies situations an employer is authorized to request this information, including when hiring for a position for which a state or local agency is otherwise required by law to conduct a conviction history background check.This bill would authorize STRS to collect specified criminal history information in the prescribed manner for employees of STRS and each applicant for employment while a tentative offer is still pending if the position includes specified duties.(2) Existing law, the Public Employees Retirement Law (PERL), creates the Public Employees Retirement System (PERS) for the purpose of providing pension benefits to state employees and employees of contracting agencies and prescribes the rights and duties of members of the system and their beneficiaries. Under PERL, benefits are funded by investment income and employer and employee contributions, which are deposited into the Public Employees Retirement Fund, a continuously appropriated trust fund administered by the systems board of administration. Existing law vests management and control of PERS in its board of administration. PERS provides a defined benefit to members of the program, based on final compensation, credited service, and age at retirement, subject to certain variations.Existing law permits the board to charge interest on payments due and unpaid by a contracting agency at the greater of the annual return on the systems investments for the year prior to the year in which payments are not timely made or a simple annual rate of 10%.This bill would remove the boards option to charge interest at the annual return on the systems investments for the year prior in which payments are not timely made, and instead require the board to charge interest at a simple annual rate of 10%.(3) Existing law creates the California Employers Pension Prefunding Trust Program and the California Employers Pension Prefunding Trust Fund to allow state and local public agency employers that provide a defined benefit pension plan to their employees to prefund their required pension contributions. Existing law authorizes an employer, upon terms and conditions set by the board, to elect to participate in the prefunding plan by entering into a contract with the board relative to the prefunding plan.This bill would authorize an employer participating in the program, upon terms and conditions established by the board, to request a disbursement of funds from its account in the California Employers Pension Prefunding Trust Fund and transfer those funds directly into the Public Employees Retirement Fund. By authorizing the transfer of funds from the continuously appropriated California Employers Pension Prefunding Trust Fund to the continuously appropriated Public Employees Retirement Fund, this bill would make an appropriation.(4) The Judges Retirement System II is administered by the board of PERS. Existing law permits a member of this retirement system to select from various optional settlements for the purpose of structuring their retirement benefits. Existing law, under optional settlement 1, provides for payment of a retirement allowance until death and the payment of any remaining contributions at death to their surviving spouse or estate.Under an optional settlement 1 retirement, this bill would allow, if there is no surviving spouse, for the remaining contributions at death to be paid to a judges designated beneficiary.(5) Existing law, the County Employees Retirement Law of 1937 (CERL), authorizes counties to establish retirement systems pursuant to its provisions in order to provide pension benefits to county, city, and district employees and their beneficiaries. Under existing law, CERL provides for a defined retirement benefit based upon credited service, final compensation, and age at retirement subject to specified formulas relating to membership classification.This bill would clarify the definition of final compensation for specified members, members who are subject to the California Public Employees Pension Reform Act of 2013, and members whose services are on a tenure that is temporary, seasonal, intermittent, or part time in the CERL, as described.Under existing law, CERL prescribes requirements regarding notification of members who have left service and elected to leave accumulated contributions in the retirement fund or have been deemed to have elected deferred retirement, as specified. Existing law requires the retirement system to begin paying an unmodified retirement allowance to a member, or a one-time distribution of all accumulated contributions and interest if the member is otherwise ineligible for a deferred retirement allowance, not later than April 1 following the calendar year in which the member attains 72 years of age, if the member can be located but does not submit a proper application for a deferred retirement allowance, as specified. Existing law prescribes alternate requirements if a member cannot be located and attains 72 years of age. Existing law establishes the Deferred Retirement Option Program, which a county or district may elect to offer and which provides an additional benefit on retirement to participating members.This bill would clarify that the above-described notice shall be provided by the board. The bill would revise the age at which the retirement system is required to either start payment of an unmodified retirement allowance or make a one-time distribution of accumulated contributions and interest to the age specified by federal law. The bill would change the age threshold from April 1 of the calendar year in which the member attains 72 years of age to the age specified by federal law with regard to requirements that apply when members cannot be located and with reference to when distributions are to be made to members who are participating in a Deferred Retirement Option Program.This bill would correct several erroneous references and also make other technical, nonsubstantive changes to these provisions.Digest Key Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 22338 is added to the Education Code, to read:22338.(a)For purposes of this section, the following definitions apply:(1)Department means the Department of Justice, as described in Section 15000 of the Government Code.(2)FBI means the Federal Bureau of Investigation.(b)In addition to requesting state summary criminal history information pursuant to Section 11105 of the Penal Code and local agency criminal history information pursuant to Section 13300 of the Penal Code, the system may obtain national criminal history check information from the FBI.(c)The system shall submit a request for national criminal history check information to the department in a manner specified by the department. Each employee of, and applicant for employment while a tentative offer is still pending with, the system shall electronically submit or cause to be electronically submitted fingerprint images and related information directly to the department. The department shall transmit those fingerprint images and related information received to the FBI for the purpose of obtaining national criminal history check information.(d)Upon receipt of the national criminal history check information from the FBI, the department shall compile and disseminate a response to the system. If national criminal history check information has not been recorded, the department shall provide the system with a statement of that fact.(e)The system shall request from the department subsequent disposition notification service, as described in Section 11105.2 of the Penal Code, for an employee of, or applicant for employment while a tentative offer is still pending with, the system. The department shall only provide subsequent disposition information to the system if the disposition resulted in a conviction.(f)The system shall use the records and information received from the FBI pursuant to subdivisions (d) and (e) exclusively for the purposes of employment subject to Section 19572 of the Government Code and to screen applicants for employment while a tentative offer is still pending with the system.(g)The department may charge a fee, payable by the system, sufficient to cover the reasonable administrative costs of processing requests pursuant to this section.(h)22338. (a) (1) This section applies to current employees of the system as a condition of their employment as well as applicants who apply to become employees of the system while a tentative offer is still pending. (2) The criminal history check authorized by this section is limited to those employees and applicants whose duties include, or would include, any of the following:(A) Access to confidential or sensitive information and data maintained by the system or submitted to the system by its members and others.(B) Executive, managerial, supervisorial, career executive assignment, specialist, and exempt classifications. The systems chief executive officer performing duties pursuant to Section 22301.(C) Legal services and operations.(D) Actuarial, investment, audit, accounting, and financial services.(E) A position that requires driving as an essential function of the position.(b) The system shall submit to the Department of Justice fingerprint images and related information required by the department of each employee and applicant for employment, specified in subdivision (a), in accordance with subdivision (u) of Section 11105 of the Penal Code.(c) The Department of Justice shall provide a state or federal response to the system pursuant to subdivision (p) of Section 11105 of the Penal Code.(d) The system shall use the records and information received from the Department of Justice pursuant to subdivisions (b) and (c) exclusively for the purposes of employment subject to Section 19572 of the Government Code and to screen applicants for employment while a tentative offer is still pending with the system.SEC. 2. Section 20537 of the Government Code is amended to read:20537. The board may charge interest on the amount of any payment due and unpaid by a contracting agency until payment is received. Interest shall be charged at a simple annual rate of 10 percent. The interest shall be deemed interest earnings for the year in which the late payment is received.SEC. 3. Section 21714.5 is added to the Government Code, to read:21714.5. Pursuant to terms and conditions established by the board, an employer may request a disbursement of funds from its account in the California Employers Pension Prefunding Trust Fund, as set forth in Section 21711, and transfer those funds directly into the Public Employees Retirement Fund, as set forth in Section 20170. The board shall certify to the Controller the total amount to be transferred and the Controller shall transfer that amount from the California Employers Pension Prefunding Trust Fund to the Public Employees Retirement FundSEC. 4. Section 31462 of the Government Code is amended to read:31462. (a) Final compensation means the average annual compensation earnable by a member during any three years elected by a member at or before the time he or she the member files an application for retirement, or, if he or she the member fails to elect, during the three years immediately preceding his or her their retirement. If a member has less than three years of service, his or her their final compensation shall be determined by dividing his or her their total compensation earnable by the number of months of service credited to him or her them and multiplying by 12.(b) This section shall not apply to a member who is subject to the California Public Employees Pension Reform Act of 2013 for all or any portion of his or her their membership in the county retirement system.SEC. 5. Section 31462.05 of the Government Code is amended to read:31462.05. (a) For a member who is subject to the California Public Employees Pension Reform Act of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of Division 7 of Title 1) for all or any portion of his or her their membership in the county retirement system, final compensation as defined in Section 7522.32 shall apply.(b) If a member has less than three years of service, that members final compensation shall be determined by dividing the total pensionable compensation by the number of months of service credited to the member and multiplying by 12.(c) When determining final compensation for a member who does not have three consecutive years of earned pensionable compensation due to an absence, the compensation for any absence shall be based on the pensionable compensation of the position held by the member immediately prior to the absence.SEC. 6. Section 31462.2 of the Government Code is amended to read:31462.2. (a) Final compensation for members whose service is on a tenure that is temporary, seasonal, intermittent, or for part time only means one-third of the total compensation earnable earned for that period of time during which the member rendered the equivalent of three years of full-time service.(b) The member may elect at or before the time he or she the member files an application for retirement the period of time during which he or she the member has earned three full years of credit upon which final compensation shall be calculated. If he or she the member does not so elect, that period of time immediately preceding his or her their retirement shall be used.(c) This section also applies to a member meeting the conditions specified in subdivision (a), whose service is described in subdivision (a), and who is subject to the California Public Employees Pension Reform Act of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of Division 7 of Title 1).SEC. 7. Section 31593 of the Government Code is amended to read:31593. The retirement board shall conduct an audit of the retirement system at least once every 12 months and report upon its financial condition. The retirement board may retain the services of a certified public accountant to perform the annual audit. That audit shall be performed in accordance with generally accepted auditing standards. The cost of the audit shall be considered a cost of the administration of the retirement system. The audit report shall address the financial condition of the retirement system, internal accounting controls, and compliance with applicable laws and regulations. A copy of the audit report shall he be filed with the board of supervisors.Nothing in this section shall preclude the retirement board from selecting the county auditor to perform the annual audit, and if so done, the cost of that audit shall he be considered a cost of the administration of the retirement system.At the request of the county board of supervisors, the county auditor may audit the accounts of the retirement system. The expense of that audit shall not be a cost chargeable by the county to the retirement system.SEC. 8. Section 31706 of the Government Code is amended to read:31706. Any member who has left county service and has elected to leave accumulated contributions in the retirement fund, or who is deemed to have elected a deferred retirement pursuant to subdivision (b) of Section 31700, and who has attained 70 years of age but has not yet applied for a deferred retirement allowance, and who is not a reciprocal member of a retirement system established pursuant to this chapter or the Public Employees Retirement Law, shall be notified in writing by the treasurer, or other entity authorized by the board, board that the member is eligible to apply for, and shall begin receiving, either a deferred retirement allowance by April 1 of the year following the year in which the member attains 72 years of age the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code or a one-time distribution of all accumulated contributions and interest. The notification shall be made at the time the deferred member attains 70 years of age and shall be sent by certified mail to the members last known address, or to the members last known employer, as shown by the records of the retirement system. If the member can be located but does not make proper application for a deferred retirement allowance with retirement to be effective by April 1 of the year following the year in which the member attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, the retirement system shall commence paying either an unmodified allowance to the member, if the member was eligible to begin receiving a deferred retirement allowance under the provisions of 31485.22, or a one-time distribution of all accumulated contributions and interest if the member is otherwise ineligible for a deferred retirement allowance. If the member cannot be located by April 1 of the year following the year in which the member attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, all of the members accumulated contributions and interest thereon shall be deposited in, and become a part of, the current pension reserve fund of the retirement system. The board may at any time after transfer of proceeds to the reserve fund upon receipt of proper information satisfactory to it, redeposit the proceeds to the credit of the claimant, to be administered in the manner provided under this law. This section shall not apply to a member while the member is actively employed past mandatory retirement age in a retirement system established under the provisions of this chapter or the Public Employees Retirement Law.SEC. 9. Section 31725.7 of the Government Code is amended to read:31725.7. (a) Except as provided in subdivision (b), at any time after filing an application for disability retirement with the board, the member may, if eligible, apply for, and the board in its discretion may grant, a service retirement allowance pending the determination of their entitlement to disability retirement. If the member is found to be eligible for disability retirement, appropriate adjustments shall be made in their retirement allowance retroactive to the effective date of their disability retirement as provided in Section 31724.(b) Notwithstanding subdivision (a), this section shall also apply to a member retired for service who subsequently files an application for disability retirement with the board. If the member retired for service is found to be eligible for disability retirement, appropriate adjustments shall be made in their retirement allowance retroactive to the effective date of their disability retirement, as provided in Section 31724.(c) This section shall not be construed to authorize a member to receive more than one type of retirement allowance for the same period of time nor to entitle any beneficiary to receive benefits which the beneficiary would not otherwise have been entitled to receive under the type of retirement which the member is finally determined to have been entitled. In the event a member retired for service is found not to be entitled to disability retirement, they shall not be entitled to return to their job as provided in Section 31725.(d) If the retired member should die before a final determination is made concerning entitlement to disability retirement, the rights of the beneficiary shall be as selected by the member at the time of retirement for service. The optional or unmodified type of allowance selected by the member at the time of retirement for service shall also be binding as to the type of allowance the member receives if the member is awarded a disability retirement.(e) Notwithstanding subdivision (d), if the retired member should die before a final determination is made concerning entitlement to disability retirement, the rights of the beneficiary may be as selected by the member at the time of retirement for service, or as if the member had selected an unmodified allowance. The optional or unmodified type of allowance selected by the member at the time of retirement for service shall not be binding as to the type of allowance the member receives if the member is awarded a disability retirement. A change to the optional or unmodified type of allowance shall be made only at the time a member is awarded a disability retirement and the change shall be retroactive to the service retirement date and benefits previously paid shall be adjusted. If a change to the optional or unmodified type of allowance is not made, the benefit shall be adjusted to reflect the differences in retirement benefits previously received. This paragraph subdivision shall only apply to members who retire on or after January 1, 1999.SEC. 10. Section 31726 of the Government Code is amended to read:31726. (a) Upon retirement for nonservice-connected disability a member who has attained age 65 shall receive their service retirement allowance.(b) Every member under age 65 who is retired for nonservice-connected disability and who is not simultaneously retired as a member on deferred retirement of the Public Employees Retirement System or a retirement system established under this chapter in another county shall receive a disability retirement allowance which shall be the greater of the following:(1) The sum to which the member would be entitled as service retirement; or(2) A sum which shall consist of any of the following:(A) An annuity which is the actuarial equivalent of the members accumulated contributions at the time of retirement.(B) If, in the opinion of the board, the members disability is not due to intemperate use of alcoholic liquor or drugs, willful misconduct, or violation of law on the members part, a disability retirement pension purchased by contributions of the county or district.(C) If, in the opinion of the board, the members disability is not due to conviction of a felony or criminal activity which caused or resulted in the members disability, a disability retirement pension purchased by contributions of the county or district. This subparagraph shall only apply to a person who becomes a member of the system on or after January 1, 1988.SEC. 11. Section 31776.3 of the Government Code is amended to read:31776.3. (a) Unless the implementing ordinance otherwise provides, the balance in the participants program account shall be distributed to the participant in a single lump-sum payment at the time of retirement. If requested by the participant, the payment may be immediately deposited into a qualified tax-deferred account established by the participant.(b) The implementing ordinance may provide one or more of the following optional forms of distribution for a participants account:(1) Substantially level installment payments over 240 months starting with the date that the member leaves DROP. The balance in the participants account during the installment payout period shall be credited with interest at the same rate, if any, as is being credited to program accounts for currently active members. A cost-of-living adjustment may not be made to the monthly amount being paid pursuant to this paragraph.(2) An annuity in a form established by the board and subject to the applicable provisions of the Internal Revenue Code that shall be the actuarial equivalent of the balance in the participants program account on the retirement date. The actuarial equivalent under this paragraph shall be determined on the same basis as is used for determining optional settlements at retirement for a members monthly retirement allowance.(c) Notwithstanding any other provision of this article, a participant, nonparticipant spouse, or beneficiary may not be permitted to elect a distribution under this article that does not satisfy the requirements of Section 401(a)(9) of Title 26 of the United States Code, including the incidental death benefit requirements of Section 401(a)(9)(G) and the regulations thereunder.(d) The required beginning date of distributions that reflect the entire interest of the participant shall be as follows:(1) In the case of a lump-sum distribution to the participant, the lump-sum payment shall be made, at the participants option, not later than April 1 of the calendar year following the later of the calendar year in which the participant attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, or an age determined by the Internal Revenue Service, or the calendar year in which the participant terminates all employment for the employer.(2) In the case of a distribution to the participant in the form of installment payments or an annuity, payment shall begin, at the participants option, not later than April 1 of the calendar year following the later of the calendar year in which the participant attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, or an age determined by the Internal Revenue Service, or the calendar year in which the participant terminates all employment subject to coverage by the plan.(3) In the case of a benefit payable on account of the participants death, distribution shall be paid at the option of the beneficiary, no later than December 31 of the calendar year in which the first anniversary of the participants date of death occurs unless the beneficiary is the participants spouse in which case distributions shall commence on or before the later of either of the following:(A) December 31 of the calendar year immediately following the calendar year in which the participant dies.(B) December 31 of the calendar year in which the participant would have attained 72 years of age the applicable age that determines the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, or an age determined by the Internal Revenue Service.SEC. 4.SEC. 12. 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 their death and if they die before they receive the amount of their accumulated contributions at retirement, to have the balance at death paid to their surviving spouse, or if none, to their designated beneficiary, or if none, to their estate.(b) (1) Optional settlement two consists of the right to have a retirement allowance paid to the judge until their death and thereafter to their surviving spouse for life.(2) If the judges spouse predeceases the judge and the judge elected this optional settlement to be effective on or after January 1, 2002, the judges 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 a legal separation is filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, and the retired judge elected this optional settlement to be effective on or after January 1, 2002, the retired judges 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 their death, and thereafter to have one-half of their retirement allowance paid to their surviving spouse for life.(2) If the judges spouse predeceases the judge and the judge elected this optional settlement to be effective on or after January 1, 2002, the judges 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 a legal separation is filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, and the retired judge elected this optional settlement to be effective on or after January 1, 2002, the retired judges 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 their retirement allowance, that they may select subject to the approval of the board.SEC. 5.SEC. 13. Section 75571.5 of the Government Code is amended 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 their 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 their life alone and if they die before they receive in annuity payments the amount of their accumulated contributions at retirement, to have the balance at death paid to their surviving spouse, or if none, to their designated beneficiary, or if none, to their estate.(c) (1) The 100 Percent Beneficiary Option 2 consists of the right to have a retirement allowance paid to the judge until their death and thereafter to have the same monthly allowance paid to their 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 judges 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 judges 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 their death and thereafter to have the same monthly allowance paid to their 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 judges monthly allowance that exceeds the amount of the allowance deemed payable pursuant to subdivision (b) of Section 75590.(2) If the judges spouse predeceases the judge and the judge elected this optional settlement, the judges 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 a legal separation filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, the retired judges 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 their death and thereafter to have one-half of the monthly allowance paid to their 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 judges 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 judges 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 their death and thereafter to have one-half of the monthly allowance paid to their 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 judges monthly allowance that exceeds the amount of the allowance deemed payable pursuant to subdivision (b) of Section 75590.(2) If the judges spouse predeceases the judge and the judge elected this optional settlement, the judges 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 a legal separation filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, the retired judges 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 their death, and thereafter to have a monthly allowance paid to their 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 their death after retirement, a monthly allowance in an amount determined by the judge be paid to their surviving spouse for life.(2) Specific Percentage to a Surviving Spouse. The judge may specify that upon their death after retirement, a monthly allowance in an amount equivalent to a specified percentage of the judges allowance be paid to their surviving spouse for life.
Amended IN Senate April 17, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 885Introduced by Committee on Labor, Public Employment and Retirement (Senators Cortese (Chair), Durazo, Laird, Smallwood-Cuevas, and Wilk)March 14, 2023An act to add Section 22338 to the Education Code, to amend Sections 20537, 31462, 31462.05, 31462.2, 31593, 31706, 31725.7, 31726, 31776.3, 75571, and 75571.5 of, and to add Section 21714.5 to, the Government Code, relating to public employees retirement, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGESTSB 885, as amended, Committee on Labor, Public Employment and Retirement. Public employees retirement.(1) The Teachers Retirement Law establishes the State Teachers Retirement System (STRS) and creates the Defined Benefit Program of the State Teachers Retirement Plan, which provides a defined benefit to members of the program, based on final compensation, credited service, and age at retirement, subject to certain variations. STRS is administrated by the Teachers Retirement Board. The Defined Benefit Program is funded by employer and employee contributions, as well as investment returns and state appropriations, which are deposited or credited to the Teachers Retirement Fund, which is continuously appropriated for the purposes of the system.Existing law, the California Fair Employment and Housing Act (FEHA), prohibits an employer from engaging in various defined forms of discriminatory employment practices. Existing law makes it an unlawful employment practice under FEHA for an employer with 5 or more employees to, among other things, include on any application for employment any question that seeks the disclosure of an applicants conviction history, to inquire into or consider the conviction history of an applicant until that applicant has received a conditional offer, and, when conducting a conviction history background check, to consider, distribute, or disseminate information related to specified prior arrests, diversions, and convictions. Existing law specifies situations an employer is authorized to request this information, including when hiring for a position for which a state or local agency is otherwise required by law to conduct a conviction history background check.This bill would authorize STRS to collect specified criminal history information in the prescribed manner for employees of STRS and each applicant for employment while a tentative offer is still pending if the position includes specified duties.(2) Existing law, the Public Employees Retirement Law (PERL), creates the Public Employees Retirement System (PERS) for the purpose of providing pension benefits to state employees and employees of contracting agencies and prescribes the rights and duties of members of the system and their beneficiaries. Under PERL, benefits are funded by investment income and employer and employee contributions, which are deposited into the Public Employees Retirement Fund, a continuously appropriated trust fund administered by the systems board of administration. Existing law vests management and control of PERS in its board of administration. PERS provides a defined benefit to members of the program, based on final compensation, credited service, and age at retirement, subject to certain variations.Existing law permits the board to charge interest on payments due and unpaid by a contracting agency at the greater of the annual return on the systems investments for the year prior to the year in which payments are not timely made or a simple annual rate of 10%.This bill would remove the boards option to charge interest at the annual return on the systems investments for the year prior in which payments are not timely made, and instead require the board to charge interest at a simple annual rate of 10%.(3) Existing law creates the California Employers Pension Prefunding Trust Program and the California Employers Pension Prefunding Trust Fund to allow state and local public agency employers that provide a defined benefit pension plan to their employees to prefund their required pension contributions. Existing law authorizes an employer, upon terms and conditions set by the board, to elect to participate in the prefunding plan by entering into a contract with the board relative to the prefunding plan.This bill would authorize an employer participating in the program, upon terms and conditions established by the board, to request a disbursement of funds from its account in the California Employers Pension Prefunding Trust Fund and transfer those funds directly into the Public Employees Retirement Fund. By authorizing the transfer of funds from the continuously appropriated California Employers Pension Prefunding Trust Fund to the continuously appropriated Public Employees Retirement Fund, this bill would make an appropriation.(4) The Judges Retirement System II is administered by the board of PERS. Existing law permits a member of this retirement system to select from various optional settlements for the purpose of structuring their retirement benefits. Existing law, under optional settlement 1, provides for payment of a retirement allowance until death and the payment of any remaining contributions at death to their surviving spouse or estate.Under an optional settlement 1 retirement, this bill would allow, if there is no surviving spouse, for the remaining contributions at death to be paid to a judges designated beneficiary.(5) Existing law, the County Employees Retirement Law of 1937 (CERL), authorizes counties to establish retirement systems pursuant to its provisions in order to provide pension benefits to county, city, and district employees and their beneficiaries. Under existing law, CERL provides for a defined retirement benefit based upon credited service, final compensation, and age at retirement subject to specified formulas relating to membership classification.This bill would clarify the definition of final compensation for specified members, members who are subject to the California Public Employees Pension Reform Act of 2013, and members whose services are on a tenure that is temporary, seasonal, intermittent, or part time in the CERL, as described.Under existing law, CERL prescribes requirements regarding notification of members who have left service and elected to leave accumulated contributions in the retirement fund or have been deemed to have elected deferred retirement, as specified. Existing law requires the retirement system to begin paying an unmodified retirement allowance to a member, or a one-time distribution of all accumulated contributions and interest if the member is otherwise ineligible for a deferred retirement allowance, not later than April 1 following the calendar year in which the member attains 72 years of age, if the member can be located but does not submit a proper application for a deferred retirement allowance, as specified. Existing law prescribes alternate requirements if a member cannot be located and attains 72 years of age. Existing law establishes the Deferred Retirement Option Program, which a county or district may elect to offer and which provides an additional benefit on retirement to participating members.This bill would clarify that the above-described notice shall be provided by the board. The bill would revise the age at which the retirement system is required to either start payment of an unmodified retirement allowance or make a one-time distribution of accumulated contributions and interest to the age specified by federal law. The bill would change the age threshold from April 1 of the calendar year in which the member attains 72 years of age to the age specified by federal law with regard to requirements that apply when members cannot be located and with reference to when distributions are to be made to members who are participating in a Deferred Retirement Option Program.This bill would correct several erroneous references and also make other technical, nonsubstantive changes to these provisions.Digest Key Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: NO
Amended IN Senate April 17, 2023
Amended IN Senate April 17, 2023
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Senate Bill
No. 885
Introduced by Committee on Labor, Public Employment and Retirement (Senators Cortese (Chair), Durazo, Laird, Smallwood-Cuevas, and Wilk)March 14, 2023
Introduced by Committee on Labor, Public Employment and Retirement (Senators Cortese (Chair), Durazo, Laird, Smallwood-Cuevas, and Wilk)
March 14, 2023
An act to add Section 22338 to the Education Code, to amend Sections 20537, 31462, 31462.05, 31462.2, 31593, 31706, 31725.7, 31726, 31776.3, 75571, and 75571.5 of, and to add Section 21714.5 to, the Government Code, relating to public employees retirement, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 885, as amended, Committee on Labor, Public Employment and Retirement. Public employees retirement.
(1) The Teachers Retirement Law establishes the State Teachers Retirement System (STRS) and creates the Defined Benefit Program of the State Teachers Retirement Plan, which provides a defined benefit to members of the program, based on final compensation, credited service, and age at retirement, subject to certain variations. STRS is administrated by the Teachers Retirement Board. The Defined Benefit Program is funded by employer and employee contributions, as well as investment returns and state appropriations, which are deposited or credited to the Teachers Retirement Fund, which is continuously appropriated for the purposes of the system.Existing law, the California Fair Employment and Housing Act (FEHA), prohibits an employer from engaging in various defined forms of discriminatory employment practices. Existing law makes it an unlawful employment practice under FEHA for an employer with 5 or more employees to, among other things, include on any application for employment any question that seeks the disclosure of an applicants conviction history, to inquire into or consider the conviction history of an applicant until that applicant has received a conditional offer, and, when conducting a conviction history background check, to consider, distribute, or disseminate information related to specified prior arrests, diversions, and convictions. Existing law specifies situations an employer is authorized to request this information, including when hiring for a position for which a state or local agency is otherwise required by law to conduct a conviction history background check.This bill would authorize STRS to collect specified criminal history information in the prescribed manner for employees of STRS and each applicant for employment while a tentative offer is still pending if the position includes specified duties.(2) Existing law, the Public Employees Retirement Law (PERL), creates the Public Employees Retirement System (PERS) for the purpose of providing pension benefits to state employees and employees of contracting agencies and prescribes the rights and duties of members of the system and their beneficiaries. Under PERL, benefits are funded by investment income and employer and employee contributions, which are deposited into the Public Employees Retirement Fund, a continuously appropriated trust fund administered by the systems board of administration. Existing law vests management and control of PERS in its board of administration. PERS provides a defined benefit to members of the program, based on final compensation, credited service, and age at retirement, subject to certain variations.Existing law permits the board to charge interest on payments due and unpaid by a contracting agency at the greater of the annual return on the systems investments for the year prior to the year in which payments are not timely made or a simple annual rate of 10%.This bill would remove the boards option to charge interest at the annual return on the systems investments for the year prior in which payments are not timely made, and instead require the board to charge interest at a simple annual rate of 10%.(3) Existing law creates the California Employers Pension Prefunding Trust Program and the California Employers Pension Prefunding Trust Fund to allow state and local public agency employers that provide a defined benefit pension plan to their employees to prefund their required pension contributions. Existing law authorizes an employer, upon terms and conditions set by the board, to elect to participate in the prefunding plan by entering into a contract with the board relative to the prefunding plan.This bill would authorize an employer participating in the program, upon terms and conditions established by the board, to request a disbursement of funds from its account in the California Employers Pension Prefunding Trust Fund and transfer those funds directly into the Public Employees Retirement Fund. By authorizing the transfer of funds from the continuously appropriated California Employers Pension Prefunding Trust Fund to the continuously appropriated Public Employees Retirement Fund, this bill would make an appropriation.(4) The Judges Retirement System II is administered by the board of PERS. Existing law permits a member of this retirement system to select from various optional settlements for the purpose of structuring their retirement benefits. Existing law, under optional settlement 1, provides for payment of a retirement allowance until death and the payment of any remaining contributions at death to their surviving spouse or estate.Under an optional settlement 1 retirement, this bill would allow, if there is no surviving spouse, for the remaining contributions at death to be paid to a judges designated beneficiary.(5) Existing law, the County Employees Retirement Law of 1937 (CERL), authorizes counties to establish retirement systems pursuant to its provisions in order to provide pension benefits to county, city, and district employees and their beneficiaries. Under existing law, CERL provides for a defined retirement benefit based upon credited service, final compensation, and age at retirement subject to specified formulas relating to membership classification.This bill would clarify the definition of final compensation for specified members, members who are subject to the California Public Employees Pension Reform Act of 2013, and members whose services are on a tenure that is temporary, seasonal, intermittent, or part time in the CERL, as described.Under existing law, CERL prescribes requirements regarding notification of members who have left service and elected to leave accumulated contributions in the retirement fund or have been deemed to have elected deferred retirement, as specified. Existing law requires the retirement system to begin paying an unmodified retirement allowance to a member, or a one-time distribution of all accumulated contributions and interest if the member is otherwise ineligible for a deferred retirement allowance, not later than April 1 following the calendar year in which the member attains 72 years of age, if the member can be located but does not submit a proper application for a deferred retirement allowance, as specified. Existing law prescribes alternate requirements if a member cannot be located and attains 72 years of age. Existing law establishes the Deferred Retirement Option Program, which a county or district may elect to offer and which provides an additional benefit on retirement to participating members.This bill would clarify that the above-described notice shall be provided by the board. The bill would revise the age at which the retirement system is required to either start payment of an unmodified retirement allowance or make a one-time distribution of accumulated contributions and interest to the age specified by federal law. The bill would change the age threshold from April 1 of the calendar year in which the member attains 72 years of age to the age specified by federal law with regard to requirements that apply when members cannot be located and with reference to when distributions are to be made to members who are participating in a Deferred Retirement Option Program.This bill would correct several erroneous references and also make other technical, nonsubstantive changes to these provisions.
(1) The Teachers Retirement Law establishes the State Teachers Retirement System (STRS) and creates the Defined Benefit Program of the State Teachers Retirement Plan, which provides a defined benefit to members of the program, based on final compensation, credited service, and age at retirement, subject to certain variations. STRS is administrated by the Teachers Retirement Board. The Defined Benefit Program is funded by employer and employee contributions, as well as investment returns and state appropriations, which are deposited or credited to the Teachers Retirement Fund, which is continuously appropriated for the purposes of the system.
Existing law, the California Fair Employment and Housing Act (FEHA), prohibits an employer from engaging in various defined forms of discriminatory employment practices. Existing law makes it an unlawful employment practice under FEHA for an employer with 5 or more employees to, among other things, include on any application for employment any question that seeks the disclosure of an applicants conviction history, to inquire into or consider the conviction history of an applicant until that applicant has received a conditional offer, and, when conducting a conviction history background check, to consider, distribute, or disseminate information related to specified prior arrests, diversions, and convictions. Existing law specifies situations an employer is authorized to request this information, including when hiring for a position for which a state or local agency is otherwise required by law to conduct a conviction history background check.
This bill would authorize STRS to collect specified criminal history information in the prescribed manner for employees of STRS and each applicant for employment while a tentative offer is still pending if the position includes specified duties.
(2) Existing law, the Public Employees Retirement Law (PERL), creates the Public Employees Retirement System (PERS) for the purpose of providing pension benefits to state employees and employees of contracting agencies and prescribes the rights and duties of members of the system and their beneficiaries. Under PERL, benefits are funded by investment income and employer and employee contributions, which are deposited into the Public Employees Retirement Fund, a continuously appropriated trust fund administered by the systems board of administration. Existing law vests management and control of PERS in its board of administration. PERS provides a defined benefit to members of the program, based on final compensation, credited service, and age at retirement, subject to certain variations.
Existing law permits the board to charge interest on payments due and unpaid by a contracting agency at the greater of the annual return on the systems investments for the year prior to the year in which payments are not timely made or a simple annual rate of 10%.
This bill would remove the boards option to charge interest at the annual return on the systems investments for the year prior in which payments are not timely made, and instead require the board to charge interest at a simple annual rate of 10%.
(3) Existing law creates the California Employers Pension Prefunding Trust Program and the California Employers Pension Prefunding Trust Fund to allow state and local public agency employers that provide a defined benefit pension plan to their employees to prefund their required pension contributions. Existing law authorizes an employer, upon terms and conditions set by the board, to elect to participate in the prefunding plan by entering into a contract with the board relative to the prefunding plan.
This bill would authorize an employer participating in the program, upon terms and conditions established by the board, to request a disbursement of funds from its account in the California Employers Pension Prefunding Trust Fund and transfer those funds directly into the Public Employees Retirement Fund. By authorizing the transfer of funds from the continuously appropriated California Employers Pension Prefunding Trust Fund to the continuously appropriated Public Employees Retirement Fund, this bill would make an appropriation.
(4) The Judges Retirement System II is administered by the board of PERS. Existing law permits a member of this retirement system to select from various optional settlements for the purpose of structuring their retirement benefits. Existing law, under optional settlement 1, provides for payment of a retirement allowance until death and the payment of any remaining contributions at death to their surviving spouse or estate.
Under an optional settlement 1 retirement, this bill would allow, if there is no surviving spouse, for the remaining contributions at death to be paid to a judges designated beneficiary.
(5) Existing law, the County Employees Retirement Law of 1937 (CERL), authorizes counties to establish retirement systems pursuant to its provisions in order to provide pension benefits to county, city, and district employees and their beneficiaries. Under existing law, CERL provides for a defined retirement benefit based upon credited service, final compensation, and age at retirement subject to specified formulas relating to membership classification.
This bill would clarify the definition of final compensation for specified members, members who are subject to the California Public Employees Pension Reform Act of 2013, and members whose services are on a tenure that is temporary, seasonal, intermittent, or part time in the CERL, as described.
Under existing law, CERL prescribes requirements regarding notification of members who have left service and elected to leave accumulated contributions in the retirement fund or have been deemed to have elected deferred retirement, as specified. Existing law requires the retirement system to begin paying an unmodified retirement allowance to a member, or a one-time distribution of all accumulated contributions and interest if the member is otherwise ineligible for a deferred retirement allowance, not later than April 1 following the calendar year in which the member attains 72 years of age, if the member can be located but does not submit a proper application for a deferred retirement allowance, as specified. Existing law prescribes alternate requirements if a member cannot be located and attains 72 years of age. Existing law establishes the Deferred Retirement Option Program, which a county or district may elect to offer and which provides an additional benefit on retirement to participating members.
This bill would clarify that the above-described notice shall be provided by the board. The bill would revise the age at which the retirement system is required to either start payment of an unmodified retirement allowance or make a one-time distribution of accumulated contributions and interest to the age specified by federal law. The bill would change the age threshold from April 1 of the calendar year in which the member attains 72 years of age to the age specified by federal law with regard to requirements that apply when members cannot be located and with reference to when distributions are to be made to members who are participating in a Deferred Retirement Option Program.
This bill would correct several erroneous references and also make other technical, nonsubstantive changes to these provisions.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 22338 is added to the Education Code, to read:22338.(a)For purposes of this section, the following definitions apply:(1)Department means the Department of Justice, as described in Section 15000 of the Government Code.(2)FBI means the Federal Bureau of Investigation.(b)In addition to requesting state summary criminal history information pursuant to Section 11105 of the Penal Code and local agency criminal history information pursuant to Section 13300 of the Penal Code, the system may obtain national criminal history check information from the FBI.(c)The system shall submit a request for national criminal history check information to the department in a manner specified by the department. Each employee of, and applicant for employment while a tentative offer is still pending with, the system shall electronically submit or cause to be electronically submitted fingerprint images and related information directly to the department. The department shall transmit those fingerprint images and related information received to the FBI for the purpose of obtaining national criminal history check information.(d)Upon receipt of the national criminal history check information from the FBI, the department shall compile and disseminate a response to the system. If national criminal history check information has not been recorded, the department shall provide the system with a statement of that fact.(e)The system shall request from the department subsequent disposition notification service, as described in Section 11105.2 of the Penal Code, for an employee of, or applicant for employment while a tentative offer is still pending with, the system. The department shall only provide subsequent disposition information to the system if the disposition resulted in a conviction.(f)The system shall use the records and information received from the FBI pursuant to subdivisions (d) and (e) exclusively for the purposes of employment subject to Section 19572 of the Government Code and to screen applicants for employment while a tentative offer is still pending with the system.(g)The department may charge a fee, payable by the system, sufficient to cover the reasonable administrative costs of processing requests pursuant to this section.(h)22338. (a) (1) This section applies to current employees of the system as a condition of their employment as well as applicants who apply to become employees of the system while a tentative offer is still pending. (2) The criminal history check authorized by this section is limited to those employees and applicants whose duties include, or would include, any of the following:(A) Access to confidential or sensitive information and data maintained by the system or submitted to the system by its members and others.(B) Executive, managerial, supervisorial, career executive assignment, specialist, and exempt classifications. The systems chief executive officer performing duties pursuant to Section 22301.(C) Legal services and operations.(D) Actuarial, investment, audit, accounting, and financial services.(E) A position that requires driving as an essential function of the position.(b) The system shall submit to the Department of Justice fingerprint images and related information required by the department of each employee and applicant for employment, specified in subdivision (a), in accordance with subdivision (u) of Section 11105 of the Penal Code.(c) The Department of Justice shall provide a state or federal response to the system pursuant to subdivision (p) of Section 11105 of the Penal Code.(d) The system shall use the records and information received from the Department of Justice pursuant to subdivisions (b) and (c) exclusively for the purposes of employment subject to Section 19572 of the Government Code and to screen applicants for employment while a tentative offer is still pending with the system.SEC. 2. Section 20537 of the Government Code is amended to read:20537. The board may charge interest on the amount of any payment due and unpaid by a contracting agency until payment is received. Interest shall be charged at a simple annual rate of 10 percent. The interest shall be deemed interest earnings for the year in which the late payment is received.SEC. 3. Section 21714.5 is added to the Government Code, to read:21714.5. Pursuant to terms and conditions established by the board, an employer may request a disbursement of funds from its account in the California Employers Pension Prefunding Trust Fund, as set forth in Section 21711, and transfer those funds directly into the Public Employees Retirement Fund, as set forth in Section 20170. The board shall certify to the Controller the total amount to be transferred and the Controller shall transfer that amount from the California Employers Pension Prefunding Trust Fund to the Public Employees Retirement FundSEC. 4. Section 31462 of the Government Code is amended to read:31462. (a) Final compensation means the average annual compensation earnable by a member during any three years elected by a member at or before the time he or she the member files an application for retirement, or, if he or she the member fails to elect, during the three years immediately preceding his or her their retirement. If a member has less than three years of service, his or her their final compensation shall be determined by dividing his or her their total compensation earnable by the number of months of service credited to him or her them and multiplying by 12.(b) This section shall not apply to a member who is subject to the California Public Employees Pension Reform Act of 2013 for all or any portion of his or her their membership in the county retirement system.SEC. 5. Section 31462.05 of the Government Code is amended to read:31462.05. (a) For a member who is subject to the California Public Employees Pension Reform Act of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of Division 7 of Title 1) for all or any portion of his or her their membership in the county retirement system, final compensation as defined in Section 7522.32 shall apply.(b) If a member has less than three years of service, that members final compensation shall be determined by dividing the total pensionable compensation by the number of months of service credited to the member and multiplying by 12.(c) When determining final compensation for a member who does not have three consecutive years of earned pensionable compensation due to an absence, the compensation for any absence shall be based on the pensionable compensation of the position held by the member immediately prior to the absence.SEC. 6. Section 31462.2 of the Government Code is amended to read:31462.2. (a) Final compensation for members whose service is on a tenure that is temporary, seasonal, intermittent, or for part time only means one-third of the total compensation earnable earned for that period of time during which the member rendered the equivalent of three years of full-time service.(b) The member may elect at or before the time he or she the member files an application for retirement the period of time during which he or she the member has earned three full years of credit upon which final compensation shall be calculated. If he or she the member does not so elect, that period of time immediately preceding his or her their retirement shall be used.(c) This section also applies to a member meeting the conditions specified in subdivision (a), whose service is described in subdivision (a), and who is subject to the California Public Employees Pension Reform Act of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of Division 7 of Title 1).SEC. 7. Section 31593 of the Government Code is amended to read:31593. The retirement board shall conduct an audit of the retirement system at least once every 12 months and report upon its financial condition. The retirement board may retain the services of a certified public accountant to perform the annual audit. That audit shall be performed in accordance with generally accepted auditing standards. The cost of the audit shall be considered a cost of the administration of the retirement system. The audit report shall address the financial condition of the retirement system, internal accounting controls, and compliance with applicable laws and regulations. A copy of the audit report shall he be filed with the board of supervisors.Nothing in this section shall preclude the retirement board from selecting the county auditor to perform the annual audit, and if so done, the cost of that audit shall he be considered a cost of the administration of the retirement system.At the request of the county board of supervisors, the county auditor may audit the accounts of the retirement system. The expense of that audit shall not be a cost chargeable by the county to the retirement system.SEC. 8. Section 31706 of the Government Code is amended to read:31706. Any member who has left county service and has elected to leave accumulated contributions in the retirement fund, or who is deemed to have elected a deferred retirement pursuant to subdivision (b) of Section 31700, and who has attained 70 years of age but has not yet applied for a deferred retirement allowance, and who is not a reciprocal member of a retirement system established pursuant to this chapter or the Public Employees Retirement Law, shall be notified in writing by the treasurer, or other entity authorized by the board, board that the member is eligible to apply for, and shall begin receiving, either a deferred retirement allowance by April 1 of the year following the year in which the member attains 72 years of age the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code or a one-time distribution of all accumulated contributions and interest. The notification shall be made at the time the deferred member attains 70 years of age and shall be sent by certified mail to the members last known address, or to the members last known employer, as shown by the records of the retirement system. If the member can be located but does not make proper application for a deferred retirement allowance with retirement to be effective by April 1 of the year following the year in which the member attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, the retirement system shall commence paying either an unmodified allowance to the member, if the member was eligible to begin receiving a deferred retirement allowance under the provisions of 31485.22, or a one-time distribution of all accumulated contributions and interest if the member is otherwise ineligible for a deferred retirement allowance. If the member cannot be located by April 1 of the year following the year in which the member attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, all of the members accumulated contributions and interest thereon shall be deposited in, and become a part of, the current pension reserve fund of the retirement system. The board may at any time after transfer of proceeds to the reserve fund upon receipt of proper information satisfactory to it, redeposit the proceeds to the credit of the claimant, to be administered in the manner provided under this law. This section shall not apply to a member while the member is actively employed past mandatory retirement age in a retirement system established under the provisions of this chapter or the Public Employees Retirement Law.SEC. 9. Section 31725.7 of the Government Code is amended to read:31725.7. (a) Except as provided in subdivision (b), at any time after filing an application for disability retirement with the board, the member may, if eligible, apply for, and the board in its discretion may grant, a service retirement allowance pending the determination of their entitlement to disability retirement. If the member is found to be eligible for disability retirement, appropriate adjustments shall be made in their retirement allowance retroactive to the effective date of their disability retirement as provided in Section 31724.(b) Notwithstanding subdivision (a), this section shall also apply to a member retired for service who subsequently files an application for disability retirement with the board. If the member retired for service is found to be eligible for disability retirement, appropriate adjustments shall be made in their retirement allowance retroactive to the effective date of their disability retirement, as provided in Section 31724.(c) This section shall not be construed to authorize a member to receive more than one type of retirement allowance for the same period of time nor to entitle any beneficiary to receive benefits which the beneficiary would not otherwise have been entitled to receive under the type of retirement which the member is finally determined to have been entitled. In the event a member retired for service is found not to be entitled to disability retirement, they shall not be entitled to return to their job as provided in Section 31725.(d) If the retired member should die before a final determination is made concerning entitlement to disability retirement, the rights of the beneficiary shall be as selected by the member at the time of retirement for service. The optional or unmodified type of allowance selected by the member at the time of retirement for service shall also be binding as to the type of allowance the member receives if the member is awarded a disability retirement.(e) Notwithstanding subdivision (d), if the retired member should die before a final determination is made concerning entitlement to disability retirement, the rights of the beneficiary may be as selected by the member at the time of retirement for service, or as if the member had selected an unmodified allowance. The optional or unmodified type of allowance selected by the member at the time of retirement for service shall not be binding as to the type of allowance the member receives if the member is awarded a disability retirement. A change to the optional or unmodified type of allowance shall be made only at the time a member is awarded a disability retirement and the change shall be retroactive to the service retirement date and benefits previously paid shall be adjusted. If a change to the optional or unmodified type of allowance is not made, the benefit shall be adjusted to reflect the differences in retirement benefits previously received. This paragraph subdivision shall only apply to members who retire on or after January 1, 1999.SEC. 10. Section 31726 of the Government Code is amended to read:31726. (a) Upon retirement for nonservice-connected disability a member who has attained age 65 shall receive their service retirement allowance.(b) Every member under age 65 who is retired for nonservice-connected disability and who is not simultaneously retired as a member on deferred retirement of the Public Employees Retirement System or a retirement system established under this chapter in another county shall receive a disability retirement allowance which shall be the greater of the following:(1) The sum to which the member would be entitled as service retirement; or(2) A sum which shall consist of any of the following:(A) An annuity which is the actuarial equivalent of the members accumulated contributions at the time of retirement.(B) If, in the opinion of the board, the members disability is not due to intemperate use of alcoholic liquor or drugs, willful misconduct, or violation of law on the members part, a disability retirement pension purchased by contributions of the county or district.(C) If, in the opinion of the board, the members disability is not due to conviction of a felony or criminal activity which caused or resulted in the members disability, a disability retirement pension purchased by contributions of the county or district. This subparagraph shall only apply to a person who becomes a member of the system on or after January 1, 1988.SEC. 11. Section 31776.3 of the Government Code is amended to read:31776.3. (a) Unless the implementing ordinance otherwise provides, the balance in the participants program account shall be distributed to the participant in a single lump-sum payment at the time of retirement. If requested by the participant, the payment may be immediately deposited into a qualified tax-deferred account established by the participant.(b) The implementing ordinance may provide one or more of the following optional forms of distribution for a participants account:(1) Substantially level installment payments over 240 months starting with the date that the member leaves DROP. The balance in the participants account during the installment payout period shall be credited with interest at the same rate, if any, as is being credited to program accounts for currently active members. A cost-of-living adjustment may not be made to the monthly amount being paid pursuant to this paragraph.(2) An annuity in a form established by the board and subject to the applicable provisions of the Internal Revenue Code that shall be the actuarial equivalent of the balance in the participants program account on the retirement date. The actuarial equivalent under this paragraph shall be determined on the same basis as is used for determining optional settlements at retirement for a members monthly retirement allowance.(c) Notwithstanding any other provision of this article, a participant, nonparticipant spouse, or beneficiary may not be permitted to elect a distribution under this article that does not satisfy the requirements of Section 401(a)(9) of Title 26 of the United States Code, including the incidental death benefit requirements of Section 401(a)(9)(G) and the regulations thereunder.(d) The required beginning date of distributions that reflect the entire interest of the participant shall be as follows:(1) In the case of a lump-sum distribution to the participant, the lump-sum payment shall be made, at the participants option, not later than April 1 of the calendar year following the later of the calendar year in which the participant attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, or an age determined by the Internal Revenue Service, or the calendar year in which the participant terminates all employment for the employer.(2) In the case of a distribution to the participant in the form of installment payments or an annuity, payment shall begin, at the participants option, not later than April 1 of the calendar year following the later of the calendar year in which the participant attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, or an age determined by the Internal Revenue Service, or the calendar year in which the participant terminates all employment subject to coverage by the plan.(3) In the case of a benefit payable on account of the participants death, distribution shall be paid at the option of the beneficiary, no later than December 31 of the calendar year in which the first anniversary of the participants date of death occurs unless the beneficiary is the participants spouse in which case distributions shall commence on or before the later of either of the following:(A) December 31 of the calendar year immediately following the calendar year in which the participant dies.(B) December 31 of the calendar year in which the participant would have attained 72 years of age the applicable age that determines the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, or an age determined by the Internal Revenue Service.SEC. 4.SEC. 12. 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 their death and if they die before they receive the amount of their accumulated contributions at retirement, to have the balance at death paid to their surviving spouse, or if none, to their designated beneficiary, or if none, to their estate.(b) (1) Optional settlement two consists of the right to have a retirement allowance paid to the judge until their death and thereafter to their surviving spouse for life.(2) If the judges spouse predeceases the judge and the judge elected this optional settlement to be effective on or after January 1, 2002, the judges 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 a legal separation is filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, and the retired judge elected this optional settlement to be effective on or after January 1, 2002, the retired judges 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 their death, and thereafter to have one-half of their retirement allowance paid to their surviving spouse for life.(2) If the judges spouse predeceases the judge and the judge elected this optional settlement to be effective on or after January 1, 2002, the judges 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 a legal separation is filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, and the retired judge elected this optional settlement to be effective on or after January 1, 2002, the retired judges 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 their retirement allowance, that they may select subject to the approval of the board.SEC. 5.SEC. 13. Section 75571.5 of the Government Code is amended 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 their 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 their life alone and if they die before they receive in annuity payments the amount of their accumulated contributions at retirement, to have the balance at death paid to their surviving spouse, or if none, to their designated beneficiary, or if none, to their estate.(c) (1) The 100 Percent Beneficiary Option 2 consists of the right to have a retirement allowance paid to the judge until their death and thereafter to have the same monthly allowance paid to their 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 judges 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 judges 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 their death and thereafter to have the same monthly allowance paid to their 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 judges monthly allowance that exceeds the amount of the allowance deemed payable pursuant to subdivision (b) of Section 75590.(2) If the judges spouse predeceases the judge and the judge elected this optional settlement, the judges 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 a legal separation filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, the retired judges 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 their death and thereafter to have one-half of the monthly allowance paid to their 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 judges 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 judges 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 their death and thereafter to have one-half of the monthly allowance paid to their 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 judges monthly allowance that exceeds the amount of the allowance deemed payable pursuant to subdivision (b) of Section 75590.(2) If the judges spouse predeceases the judge and the judge elected this optional settlement, the judges 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 a legal separation filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, the retired judges 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 their death, and thereafter to have a monthly allowance paid to their 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 their death after retirement, a monthly allowance in an amount determined by the judge be paid to their surviving spouse for life.(2) Specific Percentage to a Surviving Spouse. The judge may specify that upon their death after retirement, a monthly allowance in an amount equivalent to a specified percentage of the judges allowance be paid to their surviving spouse for life.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 22338 is added to the Education Code, to read:22338.(a)For purposes of this section, the following definitions apply:(1)Department means the Department of Justice, as described in Section 15000 of the Government Code.(2)FBI means the Federal Bureau of Investigation.(b)In addition to requesting state summary criminal history information pursuant to Section 11105 of the Penal Code and local agency criminal history information pursuant to Section 13300 of the Penal Code, the system may obtain national criminal history check information from the FBI.(c)The system shall submit a request for national criminal history check information to the department in a manner specified by the department. Each employee of, and applicant for employment while a tentative offer is still pending with, the system shall electronically submit or cause to be electronically submitted fingerprint images and related information directly to the department. The department shall transmit those fingerprint images and related information received to the FBI for the purpose of obtaining national criminal history check information.(d)Upon receipt of the national criminal history check information from the FBI, the department shall compile and disseminate a response to the system. If national criminal history check information has not been recorded, the department shall provide the system with a statement of that fact.(e)The system shall request from the department subsequent disposition notification service, as described in Section 11105.2 of the Penal Code, for an employee of, or applicant for employment while a tentative offer is still pending with, the system. The department shall only provide subsequent disposition information to the system if the disposition resulted in a conviction.(f)The system shall use the records and information received from the FBI pursuant to subdivisions (d) and (e) exclusively for the purposes of employment subject to Section 19572 of the Government Code and to screen applicants for employment while a tentative offer is still pending with the system.(g)The department may charge a fee, payable by the system, sufficient to cover the reasonable administrative costs of processing requests pursuant to this section.(h)22338. (a) (1) This section applies to current employees of the system as a condition of their employment as well as applicants who apply to become employees of the system while a tentative offer is still pending. (2) The criminal history check authorized by this section is limited to those employees and applicants whose duties include, or would include, any of the following:(A) Access to confidential or sensitive information and data maintained by the system or submitted to the system by its members and others.(B) Executive, managerial, supervisorial, career executive assignment, specialist, and exempt classifications. The systems chief executive officer performing duties pursuant to Section 22301.(C) Legal services and operations.(D) Actuarial, investment, audit, accounting, and financial services.(E) A position that requires driving as an essential function of the position.(b) The system shall submit to the Department of Justice fingerprint images and related information required by the department of each employee and applicant for employment, specified in subdivision (a), in accordance with subdivision (u) of Section 11105 of the Penal Code.(c) The Department of Justice shall provide a state or federal response to the system pursuant to subdivision (p) of Section 11105 of the Penal Code.(d) The system shall use the records and information received from the Department of Justice pursuant to subdivisions (b) and (c) exclusively for the purposes of employment subject to Section 19572 of the Government Code and to screen applicants for employment while a tentative offer is still pending with the system.
SECTION 1. Section 22338 is added to the Education Code, to read:
### SECTION 1.
22338.(a)For purposes of this section, the following definitions apply:(1)Department means the Department of Justice, as described in Section 15000 of the Government Code.(2)FBI means the Federal Bureau of Investigation.(b)In addition to requesting state summary criminal history information pursuant to Section 11105 of the Penal Code and local agency criminal history information pursuant to Section 13300 of the Penal Code, the system may obtain national criminal history check information from the FBI.(c)The system shall submit a request for national criminal history check information to the department in a manner specified by the department. Each employee of, and applicant for employment while a tentative offer is still pending with, the system shall electronically submit or cause to be electronically submitted fingerprint images and related information directly to the department. The department shall transmit those fingerprint images and related information received to the FBI for the purpose of obtaining national criminal history check information.(d)Upon receipt of the national criminal history check information from the FBI, the department shall compile and disseminate a response to the system. If national criminal history check information has not been recorded, the department shall provide the system with a statement of that fact.(e)The system shall request from the department subsequent disposition notification service, as described in Section 11105.2 of the Penal Code, for an employee of, or applicant for employment while a tentative offer is still pending with, the system. The department shall only provide subsequent disposition information to the system if the disposition resulted in a conviction.(f)The system shall use the records and information received from the FBI pursuant to subdivisions (d) and (e) exclusively for the purposes of employment subject to Section 19572 of the Government Code and to screen applicants for employment while a tentative offer is still pending with the system.(g)The department may charge a fee, payable by the system, sufficient to cover the reasonable administrative costs of processing requests pursuant to this section.(h)22338. (a) (1) This section applies to current employees of the system as a condition of their employment as well as applicants who apply to become employees of the system while a tentative offer is still pending. (2) The criminal history check authorized by this section is limited to those employees and applicants whose duties include, or would include, any of the following:(A) Access to confidential or sensitive information and data maintained by the system or submitted to the system by its members and others.(B) Executive, managerial, supervisorial, career executive assignment, specialist, and exempt classifications. The systems chief executive officer performing duties pursuant to Section 22301.(C) Legal services and operations.(D) Actuarial, investment, audit, accounting, and financial services.(E) A position that requires driving as an essential function of the position.(b) The system shall submit to the Department of Justice fingerprint images and related information required by the department of each employee and applicant for employment, specified in subdivision (a), in accordance with subdivision (u) of Section 11105 of the Penal Code.(c) The Department of Justice shall provide a state or federal response to the system pursuant to subdivision (p) of Section 11105 of the Penal Code.(d) The system shall use the records and information received from the Department of Justice pursuant to subdivisions (b) and (c) exclusively for the purposes of employment subject to Section 19572 of the Government Code and to screen applicants for employment while a tentative offer is still pending with the system.
(a)For purposes of this section, the following definitions apply:
(1)Department means the Department of Justice, as described in Section 15000 of the Government Code.
(2)FBI means the Federal Bureau of Investigation.
(b)In addition to requesting state summary criminal history information pursuant to Section 11105 of the Penal Code and local agency criminal history information pursuant to Section 13300 of the Penal Code, the system may obtain national criminal history check information from the FBI.
(c)The system shall submit a request for national criminal history check information to the department in a manner specified by the department. Each employee of, and applicant for employment while a tentative offer is still pending with, the system shall electronically submit or cause to be electronically submitted fingerprint images and related information directly to the department. The department shall transmit those fingerprint images and related information received to the FBI for the purpose of obtaining national criminal history check information.
(d)Upon receipt of the national criminal history check information from the FBI, the department shall compile and disseminate a response to the system. If national criminal history check information has not been recorded, the department shall provide the system with a statement of that fact.
(e)The system shall request from the department subsequent disposition notification service, as described in Section 11105.2 of the Penal Code, for an employee of, or applicant for employment while a tentative offer is still pending with, the system. The department shall only provide subsequent disposition information to the system if the disposition resulted in a conviction.
(f)The system shall use the records and information received from the FBI pursuant to subdivisions (d) and (e) exclusively for the purposes of employment subject to Section 19572 of the Government Code and to screen applicants for employment while a tentative offer is still pending with the system.
(g)The department may charge a fee, payable by the system, sufficient to cover the reasonable administrative costs of processing requests pursuant to this section.
(h)
22338. (a) (1) This section applies to current employees of the system as a condition of their employment as well as applicants who apply to become employees of the system while a tentative offer is still pending. (2) The criminal history check authorized by this section is limited to those employees and applicants whose duties include, or would include, any of the following:(A) Access to confidential or sensitive information and data maintained by the system or submitted to the system by its members and others.(B) Executive, managerial, supervisorial, career executive assignment, specialist, and exempt classifications. The systems chief executive officer performing duties pursuant to Section 22301.(C) Legal services and operations.(D) Actuarial, investment, audit, accounting, and financial services.(E) A position that requires driving as an essential function of the position.(b) The system shall submit to the Department of Justice fingerprint images and related information required by the department of each employee and applicant for employment, specified in subdivision (a), in accordance with subdivision (u) of Section 11105 of the Penal Code.(c) The Department of Justice shall provide a state or federal response to the system pursuant to subdivision (p) of Section 11105 of the Penal Code.(d) The system shall use the records and information received from the Department of Justice pursuant to subdivisions (b) and (c) exclusively for the purposes of employment subject to Section 19572 of the Government Code and to screen applicants for employment while a tentative offer is still pending with the system.
22338. (a) (1) This section applies to current employees of the system as a condition of their employment as well as applicants who apply to become employees of the system while a tentative offer is still pending. (2) The criminal history check authorized by this section is limited to those employees and applicants whose duties include, or would include, any of the following:(A) Access to confidential or sensitive information and data maintained by the system or submitted to the system by its members and others.(B) Executive, managerial, supervisorial, career executive assignment, specialist, and exempt classifications. The systems chief executive officer performing duties pursuant to Section 22301.(C) Legal services and operations.(D) Actuarial, investment, audit, accounting, and financial services.(E) A position that requires driving as an essential function of the position.(b) The system shall submit to the Department of Justice fingerprint images and related information required by the department of each employee and applicant for employment, specified in subdivision (a), in accordance with subdivision (u) of Section 11105 of the Penal Code.(c) The Department of Justice shall provide a state or federal response to the system pursuant to subdivision (p) of Section 11105 of the Penal Code.(d) The system shall use the records and information received from the Department of Justice pursuant to subdivisions (b) and (c) exclusively for the purposes of employment subject to Section 19572 of the Government Code and to screen applicants for employment while a tentative offer is still pending with the system.
22338. (a) (1) This section applies to current employees of the system as a condition of their employment as well as applicants who apply to become employees of the system while a tentative offer is still pending.
(2) The criminal history check authorized by this section is limited to those employees and applicants whose duties include, or would include, any of the following:
(A) Access to confidential or sensitive information and data maintained by the system or submitted to the system by its members and others.
(B) Executive, managerial, supervisorial, career executive assignment, specialist, and exempt classifications. The systems chief executive officer performing duties pursuant to Section 22301.
(C) Legal services and operations.
(D) Actuarial, investment, audit, accounting, and financial services.
(E) A position that requires driving as an essential function of the position.
(b) The system shall submit to the Department of Justice fingerprint images and related information required by the department of each employee and applicant for employment, specified in subdivision (a), in accordance with subdivision (u) of Section 11105 of the Penal Code.
(c) The Department of Justice shall provide a state or federal response to the system pursuant to subdivision (p) of Section 11105 of the Penal Code.
(d) The system shall use the records and information received from the Department of Justice pursuant to subdivisions (b) and (c) exclusively for the purposes of employment subject to Section 19572 of the Government Code and to screen applicants for employment while a tentative offer is still pending with the system.
SEC. 2. Section 20537 of the Government Code is amended to read:20537. The board may charge interest on the amount of any payment due and unpaid by a contracting agency until payment is received. Interest shall be charged at a simple annual rate of 10 percent. The interest shall be deemed interest earnings for the year in which the late payment is received.
SEC. 2. Section 20537 of the Government Code is amended to read:
### SEC. 2.
20537. The board may charge interest on the amount of any payment due and unpaid by a contracting agency until payment is received. Interest shall be charged at a simple annual rate of 10 percent. The interest shall be deemed interest earnings for the year in which the late payment is received.
20537. The board may charge interest on the amount of any payment due and unpaid by a contracting agency until payment is received. Interest shall be charged at a simple annual rate of 10 percent. The interest shall be deemed interest earnings for the year in which the late payment is received.
20537. The board may charge interest on the amount of any payment due and unpaid by a contracting agency until payment is received. Interest shall be charged at a simple annual rate of 10 percent. The interest shall be deemed interest earnings for the year in which the late payment is received.
20537. The board may charge interest on the amount of any payment due and unpaid by a contracting agency until payment is received. Interest shall be charged at a simple annual rate of 10 percent. The interest shall be deemed interest earnings for the year in which the late payment is received.
SEC. 3. Section 21714.5 is added to the Government Code, to read:21714.5. Pursuant to terms and conditions established by the board, an employer may request a disbursement of funds from its account in the California Employers Pension Prefunding Trust Fund, as set forth in Section 21711, and transfer those funds directly into the Public Employees Retirement Fund, as set forth in Section 20170. The board shall certify to the Controller the total amount to be transferred and the Controller shall transfer that amount from the California Employers Pension Prefunding Trust Fund to the Public Employees Retirement Fund
SEC. 3. Section 21714.5 is added to the Government Code, to read:
### SEC. 3.
21714.5. Pursuant to terms and conditions established by the board, an employer may request a disbursement of funds from its account in the California Employers Pension Prefunding Trust Fund, as set forth in Section 21711, and transfer those funds directly into the Public Employees Retirement Fund, as set forth in Section 20170. The board shall certify to the Controller the total amount to be transferred and the Controller shall transfer that amount from the California Employers Pension Prefunding Trust Fund to the Public Employees Retirement Fund
21714.5. Pursuant to terms and conditions established by the board, an employer may request a disbursement of funds from its account in the California Employers Pension Prefunding Trust Fund, as set forth in Section 21711, and transfer those funds directly into the Public Employees Retirement Fund, as set forth in Section 20170. The board shall certify to the Controller the total amount to be transferred and the Controller shall transfer that amount from the California Employers Pension Prefunding Trust Fund to the Public Employees Retirement Fund
21714.5. Pursuant to terms and conditions established by the board, an employer may request a disbursement of funds from its account in the California Employers Pension Prefunding Trust Fund, as set forth in Section 21711, and transfer those funds directly into the Public Employees Retirement Fund, as set forth in Section 20170. The board shall certify to the Controller the total amount to be transferred and the Controller shall transfer that amount from the California Employers Pension Prefunding Trust Fund to the Public Employees Retirement Fund
21714.5. Pursuant to terms and conditions established by the board, an employer may request a disbursement of funds from its account in the California Employers Pension Prefunding Trust Fund, as set forth in Section 21711, and transfer those funds directly into the Public Employees Retirement Fund, as set forth in Section 20170. The board shall certify to the Controller the total amount to be transferred and the Controller shall transfer that amount from the California Employers Pension Prefunding Trust Fund to the Public Employees Retirement Fund
SEC. 4. Section 31462 of the Government Code is amended to read:31462. (a) Final compensation means the average annual compensation earnable by a member during any three years elected by a member at or before the time he or she the member files an application for retirement, or, if he or she the member fails to elect, during the three years immediately preceding his or her their retirement. If a member has less than three years of service, his or her their final compensation shall be determined by dividing his or her their total compensation earnable by the number of months of service credited to him or her them and multiplying by 12.(b) This section shall not apply to a member who is subject to the California Public Employees Pension Reform Act of 2013 for all or any portion of his or her their membership in the county retirement system.
SEC. 4. Section 31462 of the Government Code is amended to read:
### SEC. 4.
31462. (a) Final compensation means the average annual compensation earnable by a member during any three years elected by a member at or before the time he or she the member files an application for retirement, or, if he or she the member fails to elect, during the three years immediately preceding his or her their retirement. If a member has less than three years of service, his or her their final compensation shall be determined by dividing his or her their total compensation earnable by the number of months of service credited to him or her them and multiplying by 12.(b) This section shall not apply to a member who is subject to the California Public Employees Pension Reform Act of 2013 for all or any portion of his or her their membership in the county retirement system.
31462. (a) Final compensation means the average annual compensation earnable by a member during any three years elected by a member at or before the time he or she the member files an application for retirement, or, if he or she the member fails to elect, during the three years immediately preceding his or her their retirement. If a member has less than three years of service, his or her their final compensation shall be determined by dividing his or her their total compensation earnable by the number of months of service credited to him or her them and multiplying by 12.(b) This section shall not apply to a member who is subject to the California Public Employees Pension Reform Act of 2013 for all or any portion of his or her their membership in the county retirement system.
31462. (a) Final compensation means the average annual compensation earnable by a member during any three years elected by a member at or before the time he or she the member files an application for retirement, or, if he or she the member fails to elect, during the three years immediately preceding his or her their retirement. If a member has less than three years of service, his or her their final compensation shall be determined by dividing his or her their total compensation earnable by the number of months of service credited to him or her them and multiplying by 12.(b) This section shall not apply to a member who is subject to the California Public Employees Pension Reform Act of 2013 for all or any portion of his or her their membership in the county retirement system.
31462. (a) Final compensation means the average annual compensation earnable by a member during any three years elected by a member at or before the time he or she the member files an application for retirement, or, if he or she the member fails to elect, during the three years immediately preceding his or her their retirement. If a member has less than three years of service, his or her their final compensation shall be determined by dividing his or her their total compensation earnable by the number of months of service credited to him or her them and multiplying by 12.
(b) This section shall not apply to a member who is subject to the California Public Employees Pension Reform Act of 2013 for all or any portion of his or her their membership in the county retirement system.
SEC. 5. Section 31462.05 of the Government Code is amended to read:31462.05. (a) For a member who is subject to the California Public Employees Pension Reform Act of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of Division 7 of Title 1) for all or any portion of his or her their membership in the county retirement system, final compensation as defined in Section 7522.32 shall apply.(b) If a member has less than three years of service, that members final compensation shall be determined by dividing the total pensionable compensation by the number of months of service credited to the member and multiplying by 12.(c) When determining final compensation for a member who does not have three consecutive years of earned pensionable compensation due to an absence, the compensation for any absence shall be based on the pensionable compensation of the position held by the member immediately prior to the absence.
SEC. 5. Section 31462.05 of the Government Code is amended to read:
### SEC. 5.
31462.05. (a) For a member who is subject to the California Public Employees Pension Reform Act of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of Division 7 of Title 1) for all or any portion of his or her their membership in the county retirement system, final compensation as defined in Section 7522.32 shall apply.(b) If a member has less than three years of service, that members final compensation shall be determined by dividing the total pensionable compensation by the number of months of service credited to the member and multiplying by 12.(c) When determining final compensation for a member who does not have three consecutive years of earned pensionable compensation due to an absence, the compensation for any absence shall be based on the pensionable compensation of the position held by the member immediately prior to the absence.
31462.05. (a) For a member who is subject to the California Public Employees Pension Reform Act of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of Division 7 of Title 1) for all or any portion of his or her their membership in the county retirement system, final compensation as defined in Section 7522.32 shall apply.(b) If a member has less than three years of service, that members final compensation shall be determined by dividing the total pensionable compensation by the number of months of service credited to the member and multiplying by 12.(c) When determining final compensation for a member who does not have three consecutive years of earned pensionable compensation due to an absence, the compensation for any absence shall be based on the pensionable compensation of the position held by the member immediately prior to the absence.
31462.05. (a) For a member who is subject to the California Public Employees Pension Reform Act of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of Division 7 of Title 1) for all or any portion of his or her their membership in the county retirement system, final compensation as defined in Section 7522.32 shall apply.(b) If a member has less than three years of service, that members final compensation shall be determined by dividing the total pensionable compensation by the number of months of service credited to the member and multiplying by 12.(c) When determining final compensation for a member who does not have three consecutive years of earned pensionable compensation due to an absence, the compensation for any absence shall be based on the pensionable compensation of the position held by the member immediately prior to the absence.
31462.05. (a) For a member who is subject to the California Public Employees Pension Reform Act of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of Division 7 of Title 1) for all or any portion of his or her their membership in the county retirement system, final compensation as defined in Section 7522.32 shall apply.
(b) If a member has less than three years of service, that members final compensation shall be determined by dividing the total pensionable compensation by the number of months of service credited to the member and multiplying by 12.
(c) When determining final compensation for a member who does not have three consecutive years of earned pensionable compensation due to an absence, the compensation for any absence shall be based on the pensionable compensation of the position held by the member immediately prior to the absence.
SEC. 6. Section 31462.2 of the Government Code is amended to read:31462.2. (a) Final compensation for members whose service is on a tenure that is temporary, seasonal, intermittent, or for part time only means one-third of the total compensation earnable earned for that period of time during which the member rendered the equivalent of three years of full-time service.(b) The member may elect at or before the time he or she the member files an application for retirement the period of time during which he or she the member has earned three full years of credit upon which final compensation shall be calculated. If he or she the member does not so elect, that period of time immediately preceding his or her their retirement shall be used.(c) This section also applies to a member meeting the conditions specified in subdivision (a), whose service is described in subdivision (a), and who is subject to the California Public Employees Pension Reform Act of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of Division 7 of Title 1).
SEC. 6. Section 31462.2 of the Government Code is amended to read:
### SEC. 6.
31462.2. (a) Final compensation for members whose service is on a tenure that is temporary, seasonal, intermittent, or for part time only means one-third of the total compensation earnable earned for that period of time during which the member rendered the equivalent of three years of full-time service.(b) The member may elect at or before the time he or she the member files an application for retirement the period of time during which he or she the member has earned three full years of credit upon which final compensation shall be calculated. If he or she the member does not so elect, that period of time immediately preceding his or her their retirement shall be used.(c) This section also applies to a member meeting the conditions specified in subdivision (a), whose service is described in subdivision (a), and who is subject to the California Public Employees Pension Reform Act of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of Division 7 of Title 1).
31462.2. (a) Final compensation for members whose service is on a tenure that is temporary, seasonal, intermittent, or for part time only means one-third of the total compensation earnable earned for that period of time during which the member rendered the equivalent of three years of full-time service.(b) The member may elect at or before the time he or she the member files an application for retirement the period of time during which he or she the member has earned three full years of credit upon which final compensation shall be calculated. If he or she the member does not so elect, that period of time immediately preceding his or her their retirement shall be used.(c) This section also applies to a member meeting the conditions specified in subdivision (a), whose service is described in subdivision (a), and who is subject to the California Public Employees Pension Reform Act of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of Division 7 of Title 1).
31462.2. (a) Final compensation for members whose service is on a tenure that is temporary, seasonal, intermittent, or for part time only means one-third of the total compensation earnable earned for that period of time during which the member rendered the equivalent of three years of full-time service.(b) The member may elect at or before the time he or she the member files an application for retirement the period of time during which he or she the member has earned three full years of credit upon which final compensation shall be calculated. If he or she the member does not so elect, that period of time immediately preceding his or her their retirement shall be used.(c) This section also applies to a member meeting the conditions specified in subdivision (a), whose service is described in subdivision (a), and who is subject to the California Public Employees Pension Reform Act of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of Division 7 of Title 1).
31462.2. (a) Final compensation for members whose service is on a tenure that is temporary, seasonal, intermittent, or for part time only means one-third of the total compensation earnable earned for that period of time during which the member rendered the equivalent of three years of full-time service.
(b) The member may elect at or before the time he or she the member files an application for retirement the period of time during which he or she the member has earned three full years of credit upon which final compensation shall be calculated. If he or she the member does not so elect, that period of time immediately preceding his or her their retirement shall be used.
(c) This section also applies to a member meeting the conditions specified in subdivision (a), whose service is described in subdivision (a), and who is subject to the California Public Employees Pension Reform Act of 2013 (Article 4 (commencing with Section 7522) of Chapter 21 of Division 7 of Title 1).
SEC. 7. Section 31593 of the Government Code is amended to read:31593. The retirement board shall conduct an audit of the retirement system at least once every 12 months and report upon its financial condition. The retirement board may retain the services of a certified public accountant to perform the annual audit. That audit shall be performed in accordance with generally accepted auditing standards. The cost of the audit shall be considered a cost of the administration of the retirement system. The audit report shall address the financial condition of the retirement system, internal accounting controls, and compliance with applicable laws and regulations. A copy of the audit report shall he be filed with the board of supervisors.Nothing in this section shall preclude the retirement board from selecting the county auditor to perform the annual audit, and if so done, the cost of that audit shall he be considered a cost of the administration of the retirement system.At the request of the county board of supervisors, the county auditor may audit the accounts of the retirement system. The expense of that audit shall not be a cost chargeable by the county to the retirement system.
SEC. 7. Section 31593 of the Government Code is amended to read:
### SEC. 7.
31593. The retirement board shall conduct an audit of the retirement system at least once every 12 months and report upon its financial condition. The retirement board may retain the services of a certified public accountant to perform the annual audit. That audit shall be performed in accordance with generally accepted auditing standards. The cost of the audit shall be considered a cost of the administration of the retirement system. The audit report shall address the financial condition of the retirement system, internal accounting controls, and compliance with applicable laws and regulations. A copy of the audit report shall he be filed with the board of supervisors.Nothing in this section shall preclude the retirement board from selecting the county auditor to perform the annual audit, and if so done, the cost of that audit shall he be considered a cost of the administration of the retirement system.At the request of the county board of supervisors, the county auditor may audit the accounts of the retirement system. The expense of that audit shall not be a cost chargeable by the county to the retirement system.
31593. The retirement board shall conduct an audit of the retirement system at least once every 12 months and report upon its financial condition. The retirement board may retain the services of a certified public accountant to perform the annual audit. That audit shall be performed in accordance with generally accepted auditing standards. The cost of the audit shall be considered a cost of the administration of the retirement system. The audit report shall address the financial condition of the retirement system, internal accounting controls, and compliance with applicable laws and regulations. A copy of the audit report shall he be filed with the board of supervisors.Nothing in this section shall preclude the retirement board from selecting the county auditor to perform the annual audit, and if so done, the cost of that audit shall he be considered a cost of the administration of the retirement system.At the request of the county board of supervisors, the county auditor may audit the accounts of the retirement system. The expense of that audit shall not be a cost chargeable by the county to the retirement system.
31593. The retirement board shall conduct an audit of the retirement system at least once every 12 months and report upon its financial condition. The retirement board may retain the services of a certified public accountant to perform the annual audit. That audit shall be performed in accordance with generally accepted auditing standards. The cost of the audit shall be considered a cost of the administration of the retirement system. The audit report shall address the financial condition of the retirement system, internal accounting controls, and compliance with applicable laws and regulations. A copy of the audit report shall he be filed with the board of supervisors.Nothing in this section shall preclude the retirement board from selecting the county auditor to perform the annual audit, and if so done, the cost of that audit shall he be considered a cost of the administration of the retirement system.At the request of the county board of supervisors, the county auditor may audit the accounts of the retirement system. The expense of that audit shall not be a cost chargeable by the county to the retirement system.
31593. The retirement board shall conduct an audit of the retirement system at least once every 12 months and report upon its financial condition. The retirement board may retain the services of a certified public accountant to perform the annual audit. That audit shall be performed in accordance with generally accepted auditing standards. The cost of the audit shall be considered a cost of the administration of the retirement system. The audit report shall address the financial condition of the retirement system, internal accounting controls, and compliance with applicable laws and regulations. A copy of the audit report shall he be filed with the board of supervisors.
Nothing in this section shall preclude the retirement board from selecting the county auditor to perform the annual audit, and if so done, the cost of that audit shall he be considered a cost of the administration of the retirement system.
At the request of the county board of supervisors, the county auditor may audit the accounts of the retirement system. The expense of that audit shall not be a cost chargeable by the county to the retirement system.
SEC. 8. Section 31706 of the Government Code is amended to read:31706. Any member who has left county service and has elected to leave accumulated contributions in the retirement fund, or who is deemed to have elected a deferred retirement pursuant to subdivision (b) of Section 31700, and who has attained 70 years of age but has not yet applied for a deferred retirement allowance, and who is not a reciprocal member of a retirement system established pursuant to this chapter or the Public Employees Retirement Law, shall be notified in writing by the treasurer, or other entity authorized by the board, board that the member is eligible to apply for, and shall begin receiving, either a deferred retirement allowance by April 1 of the year following the year in which the member attains 72 years of age the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code or a one-time distribution of all accumulated contributions and interest. The notification shall be made at the time the deferred member attains 70 years of age and shall be sent by certified mail to the members last known address, or to the members last known employer, as shown by the records of the retirement system. If the member can be located but does not make proper application for a deferred retirement allowance with retirement to be effective by April 1 of the year following the year in which the member attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, the retirement system shall commence paying either an unmodified allowance to the member, if the member was eligible to begin receiving a deferred retirement allowance under the provisions of 31485.22, or a one-time distribution of all accumulated contributions and interest if the member is otherwise ineligible for a deferred retirement allowance. If the member cannot be located by April 1 of the year following the year in which the member attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, all of the members accumulated contributions and interest thereon shall be deposited in, and become a part of, the current pension reserve fund of the retirement system. The board may at any time after transfer of proceeds to the reserve fund upon receipt of proper information satisfactory to it, redeposit the proceeds to the credit of the claimant, to be administered in the manner provided under this law. This section shall not apply to a member while the member is actively employed past mandatory retirement age in a retirement system established under the provisions of this chapter or the Public Employees Retirement Law.
SEC. 8. Section 31706 of the Government Code is amended to read:
### SEC. 8.
31706. Any member who has left county service and has elected to leave accumulated contributions in the retirement fund, or who is deemed to have elected a deferred retirement pursuant to subdivision (b) of Section 31700, and who has attained 70 years of age but has not yet applied for a deferred retirement allowance, and who is not a reciprocal member of a retirement system established pursuant to this chapter or the Public Employees Retirement Law, shall be notified in writing by the treasurer, or other entity authorized by the board, board that the member is eligible to apply for, and shall begin receiving, either a deferred retirement allowance by April 1 of the year following the year in which the member attains 72 years of age the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code or a one-time distribution of all accumulated contributions and interest. The notification shall be made at the time the deferred member attains 70 years of age and shall be sent by certified mail to the members last known address, or to the members last known employer, as shown by the records of the retirement system. If the member can be located but does not make proper application for a deferred retirement allowance with retirement to be effective by April 1 of the year following the year in which the member attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, the retirement system shall commence paying either an unmodified allowance to the member, if the member was eligible to begin receiving a deferred retirement allowance under the provisions of 31485.22, or a one-time distribution of all accumulated contributions and interest if the member is otherwise ineligible for a deferred retirement allowance. If the member cannot be located by April 1 of the year following the year in which the member attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, all of the members accumulated contributions and interest thereon shall be deposited in, and become a part of, the current pension reserve fund of the retirement system. The board may at any time after transfer of proceeds to the reserve fund upon receipt of proper information satisfactory to it, redeposit the proceeds to the credit of the claimant, to be administered in the manner provided under this law. This section shall not apply to a member while the member is actively employed past mandatory retirement age in a retirement system established under the provisions of this chapter or the Public Employees Retirement Law.
31706. Any member who has left county service and has elected to leave accumulated contributions in the retirement fund, or who is deemed to have elected a deferred retirement pursuant to subdivision (b) of Section 31700, and who has attained 70 years of age but has not yet applied for a deferred retirement allowance, and who is not a reciprocal member of a retirement system established pursuant to this chapter or the Public Employees Retirement Law, shall be notified in writing by the treasurer, or other entity authorized by the board, board that the member is eligible to apply for, and shall begin receiving, either a deferred retirement allowance by April 1 of the year following the year in which the member attains 72 years of age the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code or a one-time distribution of all accumulated contributions and interest. The notification shall be made at the time the deferred member attains 70 years of age and shall be sent by certified mail to the members last known address, or to the members last known employer, as shown by the records of the retirement system. If the member can be located but does not make proper application for a deferred retirement allowance with retirement to be effective by April 1 of the year following the year in which the member attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, the retirement system shall commence paying either an unmodified allowance to the member, if the member was eligible to begin receiving a deferred retirement allowance under the provisions of 31485.22, or a one-time distribution of all accumulated contributions and interest if the member is otherwise ineligible for a deferred retirement allowance. If the member cannot be located by April 1 of the year following the year in which the member attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, all of the members accumulated contributions and interest thereon shall be deposited in, and become a part of, the current pension reserve fund of the retirement system. The board may at any time after transfer of proceeds to the reserve fund upon receipt of proper information satisfactory to it, redeposit the proceeds to the credit of the claimant, to be administered in the manner provided under this law. This section shall not apply to a member while the member is actively employed past mandatory retirement age in a retirement system established under the provisions of this chapter or the Public Employees Retirement Law.
31706. Any member who has left county service and has elected to leave accumulated contributions in the retirement fund, or who is deemed to have elected a deferred retirement pursuant to subdivision (b) of Section 31700, and who has attained 70 years of age but has not yet applied for a deferred retirement allowance, and who is not a reciprocal member of a retirement system established pursuant to this chapter or the Public Employees Retirement Law, shall be notified in writing by the treasurer, or other entity authorized by the board, board that the member is eligible to apply for, and shall begin receiving, either a deferred retirement allowance by April 1 of the year following the year in which the member attains 72 years of age the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code or a one-time distribution of all accumulated contributions and interest. The notification shall be made at the time the deferred member attains 70 years of age and shall be sent by certified mail to the members last known address, or to the members last known employer, as shown by the records of the retirement system. If the member can be located but does not make proper application for a deferred retirement allowance with retirement to be effective by April 1 of the year following the year in which the member attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, the retirement system shall commence paying either an unmodified allowance to the member, if the member was eligible to begin receiving a deferred retirement allowance under the provisions of 31485.22, or a one-time distribution of all accumulated contributions and interest if the member is otherwise ineligible for a deferred retirement allowance. If the member cannot be located by April 1 of the year following the year in which the member attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, all of the members accumulated contributions and interest thereon shall be deposited in, and become a part of, the current pension reserve fund of the retirement system. The board may at any time after transfer of proceeds to the reserve fund upon receipt of proper information satisfactory to it, redeposit the proceeds to the credit of the claimant, to be administered in the manner provided under this law. This section shall not apply to a member while the member is actively employed past mandatory retirement age in a retirement system established under the provisions of this chapter or the Public Employees Retirement Law.
31706. Any member who has left county service and has elected to leave accumulated contributions in the retirement fund, or who is deemed to have elected a deferred retirement pursuant to subdivision (b) of Section 31700, and who has attained 70 years of age but has not yet applied for a deferred retirement allowance, and who is not a reciprocal member of a retirement system established pursuant to this chapter or the Public Employees Retirement Law, shall be notified in writing by the treasurer, or other entity authorized by the board, board that the member is eligible to apply for, and shall begin receiving, either a deferred retirement allowance by April 1 of the year following the year in which the member attains 72 years of age the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code or a one-time distribution of all accumulated contributions and interest. The notification shall be made at the time the deferred member attains 70 years of age and shall be sent by certified mail to the members last known address, or to the members last known employer, as shown by the records of the retirement system. If the member can be located but does not make proper application for a deferred retirement allowance with retirement to be effective by April 1 of the year following the year in which the member attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, the retirement system shall commence paying either an unmodified allowance to the member, if the member was eligible to begin receiving a deferred retirement allowance under the provisions of 31485.22, or a one-time distribution of all accumulated contributions and interest if the member is otherwise ineligible for a deferred retirement allowance. If the member cannot be located by April 1 of the year following the year in which the member attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, all of the members accumulated contributions and interest thereon shall be deposited in, and become a part of, the current pension reserve fund of the retirement system. The board may at any time after transfer of proceeds to the reserve fund upon receipt of proper information satisfactory to it, redeposit the proceeds to the credit of the claimant, to be administered in the manner provided under this law. This section shall not apply to a member while the member is actively employed past mandatory retirement age in a retirement system established under the provisions of this chapter or the Public Employees Retirement Law.
SEC. 9. Section 31725.7 of the Government Code is amended to read:31725.7. (a) Except as provided in subdivision (b), at any time after filing an application for disability retirement with the board, the member may, if eligible, apply for, and the board in its discretion may grant, a service retirement allowance pending the determination of their entitlement to disability retirement. If the member is found to be eligible for disability retirement, appropriate adjustments shall be made in their retirement allowance retroactive to the effective date of their disability retirement as provided in Section 31724.(b) Notwithstanding subdivision (a), this section shall also apply to a member retired for service who subsequently files an application for disability retirement with the board. If the member retired for service is found to be eligible for disability retirement, appropriate adjustments shall be made in their retirement allowance retroactive to the effective date of their disability retirement, as provided in Section 31724.(c) This section shall not be construed to authorize a member to receive more than one type of retirement allowance for the same period of time nor to entitle any beneficiary to receive benefits which the beneficiary would not otherwise have been entitled to receive under the type of retirement which the member is finally determined to have been entitled. In the event a member retired for service is found not to be entitled to disability retirement, they shall not be entitled to return to their job as provided in Section 31725.(d) If the retired member should die before a final determination is made concerning entitlement to disability retirement, the rights of the beneficiary shall be as selected by the member at the time of retirement for service. The optional or unmodified type of allowance selected by the member at the time of retirement for service shall also be binding as to the type of allowance the member receives if the member is awarded a disability retirement.(e) Notwithstanding subdivision (d), if the retired member should die before a final determination is made concerning entitlement to disability retirement, the rights of the beneficiary may be as selected by the member at the time of retirement for service, or as if the member had selected an unmodified allowance. The optional or unmodified type of allowance selected by the member at the time of retirement for service shall not be binding as to the type of allowance the member receives if the member is awarded a disability retirement. A change to the optional or unmodified type of allowance shall be made only at the time a member is awarded a disability retirement and the change shall be retroactive to the service retirement date and benefits previously paid shall be adjusted. If a change to the optional or unmodified type of allowance is not made, the benefit shall be adjusted to reflect the differences in retirement benefits previously received. This paragraph subdivision shall only apply to members who retire on or after January 1, 1999.
SEC. 9. Section 31725.7 of the Government Code is amended to read:
### SEC. 9.
31725.7. (a) Except as provided in subdivision (b), at any time after filing an application for disability retirement with the board, the member may, if eligible, apply for, and the board in its discretion may grant, a service retirement allowance pending the determination of their entitlement to disability retirement. If the member is found to be eligible for disability retirement, appropriate adjustments shall be made in their retirement allowance retroactive to the effective date of their disability retirement as provided in Section 31724.(b) Notwithstanding subdivision (a), this section shall also apply to a member retired for service who subsequently files an application for disability retirement with the board. If the member retired for service is found to be eligible for disability retirement, appropriate adjustments shall be made in their retirement allowance retroactive to the effective date of their disability retirement, as provided in Section 31724.(c) This section shall not be construed to authorize a member to receive more than one type of retirement allowance for the same period of time nor to entitle any beneficiary to receive benefits which the beneficiary would not otherwise have been entitled to receive under the type of retirement which the member is finally determined to have been entitled. In the event a member retired for service is found not to be entitled to disability retirement, they shall not be entitled to return to their job as provided in Section 31725.(d) If the retired member should die before a final determination is made concerning entitlement to disability retirement, the rights of the beneficiary shall be as selected by the member at the time of retirement for service. The optional or unmodified type of allowance selected by the member at the time of retirement for service shall also be binding as to the type of allowance the member receives if the member is awarded a disability retirement.(e) Notwithstanding subdivision (d), if the retired member should die before a final determination is made concerning entitlement to disability retirement, the rights of the beneficiary may be as selected by the member at the time of retirement for service, or as if the member had selected an unmodified allowance. The optional or unmodified type of allowance selected by the member at the time of retirement for service shall not be binding as to the type of allowance the member receives if the member is awarded a disability retirement. A change to the optional or unmodified type of allowance shall be made only at the time a member is awarded a disability retirement and the change shall be retroactive to the service retirement date and benefits previously paid shall be adjusted. If a change to the optional or unmodified type of allowance is not made, the benefit shall be adjusted to reflect the differences in retirement benefits previously received. This paragraph subdivision shall only apply to members who retire on or after January 1, 1999.
31725.7. (a) Except as provided in subdivision (b), at any time after filing an application for disability retirement with the board, the member may, if eligible, apply for, and the board in its discretion may grant, a service retirement allowance pending the determination of their entitlement to disability retirement. If the member is found to be eligible for disability retirement, appropriate adjustments shall be made in their retirement allowance retroactive to the effective date of their disability retirement as provided in Section 31724.(b) Notwithstanding subdivision (a), this section shall also apply to a member retired for service who subsequently files an application for disability retirement with the board. If the member retired for service is found to be eligible for disability retirement, appropriate adjustments shall be made in their retirement allowance retroactive to the effective date of their disability retirement, as provided in Section 31724.(c) This section shall not be construed to authorize a member to receive more than one type of retirement allowance for the same period of time nor to entitle any beneficiary to receive benefits which the beneficiary would not otherwise have been entitled to receive under the type of retirement which the member is finally determined to have been entitled. In the event a member retired for service is found not to be entitled to disability retirement, they shall not be entitled to return to their job as provided in Section 31725.(d) If the retired member should die before a final determination is made concerning entitlement to disability retirement, the rights of the beneficiary shall be as selected by the member at the time of retirement for service. The optional or unmodified type of allowance selected by the member at the time of retirement for service shall also be binding as to the type of allowance the member receives if the member is awarded a disability retirement.(e) Notwithstanding subdivision (d), if the retired member should die before a final determination is made concerning entitlement to disability retirement, the rights of the beneficiary may be as selected by the member at the time of retirement for service, or as if the member had selected an unmodified allowance. The optional or unmodified type of allowance selected by the member at the time of retirement for service shall not be binding as to the type of allowance the member receives if the member is awarded a disability retirement. A change to the optional or unmodified type of allowance shall be made only at the time a member is awarded a disability retirement and the change shall be retroactive to the service retirement date and benefits previously paid shall be adjusted. If a change to the optional or unmodified type of allowance is not made, the benefit shall be adjusted to reflect the differences in retirement benefits previously received. This paragraph subdivision shall only apply to members who retire on or after January 1, 1999.
31725.7. (a) Except as provided in subdivision (b), at any time after filing an application for disability retirement with the board, the member may, if eligible, apply for, and the board in its discretion may grant, a service retirement allowance pending the determination of their entitlement to disability retirement. If the member is found to be eligible for disability retirement, appropriate adjustments shall be made in their retirement allowance retroactive to the effective date of their disability retirement as provided in Section 31724.(b) Notwithstanding subdivision (a), this section shall also apply to a member retired for service who subsequently files an application for disability retirement with the board. If the member retired for service is found to be eligible for disability retirement, appropriate adjustments shall be made in their retirement allowance retroactive to the effective date of their disability retirement, as provided in Section 31724.(c) This section shall not be construed to authorize a member to receive more than one type of retirement allowance for the same period of time nor to entitle any beneficiary to receive benefits which the beneficiary would not otherwise have been entitled to receive under the type of retirement which the member is finally determined to have been entitled. In the event a member retired for service is found not to be entitled to disability retirement, they shall not be entitled to return to their job as provided in Section 31725.(d) If the retired member should die before a final determination is made concerning entitlement to disability retirement, the rights of the beneficiary shall be as selected by the member at the time of retirement for service. The optional or unmodified type of allowance selected by the member at the time of retirement for service shall also be binding as to the type of allowance the member receives if the member is awarded a disability retirement.(e) Notwithstanding subdivision (d), if the retired member should die before a final determination is made concerning entitlement to disability retirement, the rights of the beneficiary may be as selected by the member at the time of retirement for service, or as if the member had selected an unmodified allowance. The optional or unmodified type of allowance selected by the member at the time of retirement for service shall not be binding as to the type of allowance the member receives if the member is awarded a disability retirement. A change to the optional or unmodified type of allowance shall be made only at the time a member is awarded a disability retirement and the change shall be retroactive to the service retirement date and benefits previously paid shall be adjusted. If a change to the optional or unmodified type of allowance is not made, the benefit shall be adjusted to reflect the differences in retirement benefits previously received. This paragraph subdivision shall only apply to members who retire on or after January 1, 1999.
31725.7. (a) Except as provided in subdivision (b), at any time after filing an application for disability retirement with the board, the member may, if eligible, apply for, and the board in its discretion may grant, a service retirement allowance pending the determination of their entitlement to disability retirement. If the member is found to be eligible for disability retirement, appropriate adjustments shall be made in their retirement allowance retroactive to the effective date of their disability retirement as provided in Section 31724.
(b) Notwithstanding subdivision (a), this section shall also apply to a member retired for service who subsequently files an application for disability retirement with the board. If the member retired for service is found to be eligible for disability retirement, appropriate adjustments shall be made in their retirement allowance retroactive to the effective date of their disability retirement, as provided in Section 31724.
(c) This section shall not be construed to authorize a member to receive more than one type of retirement allowance for the same period of time nor to entitle any beneficiary to receive benefits which the beneficiary would not otherwise have been entitled to receive under the type of retirement which the member is finally determined to have been entitled. In the event a member retired for service is found not to be entitled to disability retirement, they shall not be entitled to return to their job as provided in Section 31725.
(d) If the retired member should die before a final determination is made concerning entitlement to disability retirement, the rights of the beneficiary shall be as selected by the member at the time of retirement for service. The optional or unmodified type of allowance selected by the member at the time of retirement for service shall also be binding as to the type of allowance the member receives if the member is awarded a disability retirement.
(e) Notwithstanding subdivision (d), if the retired member should die before a final determination is made concerning entitlement to disability retirement, the rights of the beneficiary may be as selected by the member at the time of retirement for service, or as if the member had selected an unmodified allowance. The optional or unmodified type of allowance selected by the member at the time of retirement for service shall not be binding as to the type of allowance the member receives if the member is awarded a disability retirement. A change to the optional or unmodified type of allowance shall be made only at the time a member is awarded a disability retirement and the change shall be retroactive to the service retirement date and benefits previously paid shall be adjusted. If a change to the optional or unmodified type of allowance is not made, the benefit shall be adjusted to reflect the differences in retirement benefits previously received. This paragraph subdivision shall only apply to members who retire on or after January 1, 1999.
SEC. 10. Section 31726 of the Government Code is amended to read:31726. (a) Upon retirement for nonservice-connected disability a member who has attained age 65 shall receive their service retirement allowance.(b) Every member under age 65 who is retired for nonservice-connected disability and who is not simultaneously retired as a member on deferred retirement of the Public Employees Retirement System or a retirement system established under this chapter in another county shall receive a disability retirement allowance which shall be the greater of the following:(1) The sum to which the member would be entitled as service retirement; or(2) A sum which shall consist of any of the following:(A) An annuity which is the actuarial equivalent of the members accumulated contributions at the time of retirement.(B) If, in the opinion of the board, the members disability is not due to intemperate use of alcoholic liquor or drugs, willful misconduct, or violation of law on the members part, a disability retirement pension purchased by contributions of the county or district.(C) If, in the opinion of the board, the members disability is not due to conviction of a felony or criminal activity which caused or resulted in the members disability, a disability retirement pension purchased by contributions of the county or district. This subparagraph shall only apply to a person who becomes a member of the system on or after January 1, 1988.
SEC. 10. Section 31726 of the Government Code is amended to read:
### SEC. 10.
31726. (a) Upon retirement for nonservice-connected disability a member who has attained age 65 shall receive their service retirement allowance.(b) Every member under age 65 who is retired for nonservice-connected disability and who is not simultaneously retired as a member on deferred retirement of the Public Employees Retirement System or a retirement system established under this chapter in another county shall receive a disability retirement allowance which shall be the greater of the following:(1) The sum to which the member would be entitled as service retirement; or(2) A sum which shall consist of any of the following:(A) An annuity which is the actuarial equivalent of the members accumulated contributions at the time of retirement.(B) If, in the opinion of the board, the members disability is not due to intemperate use of alcoholic liquor or drugs, willful misconduct, or violation of law on the members part, a disability retirement pension purchased by contributions of the county or district.(C) If, in the opinion of the board, the members disability is not due to conviction of a felony or criminal activity which caused or resulted in the members disability, a disability retirement pension purchased by contributions of the county or district. This subparagraph shall only apply to a person who becomes a member of the system on or after January 1, 1988.
31726. (a) Upon retirement for nonservice-connected disability a member who has attained age 65 shall receive their service retirement allowance.(b) Every member under age 65 who is retired for nonservice-connected disability and who is not simultaneously retired as a member on deferred retirement of the Public Employees Retirement System or a retirement system established under this chapter in another county shall receive a disability retirement allowance which shall be the greater of the following:(1) The sum to which the member would be entitled as service retirement; or(2) A sum which shall consist of any of the following:(A) An annuity which is the actuarial equivalent of the members accumulated contributions at the time of retirement.(B) If, in the opinion of the board, the members disability is not due to intemperate use of alcoholic liquor or drugs, willful misconduct, or violation of law on the members part, a disability retirement pension purchased by contributions of the county or district.(C) If, in the opinion of the board, the members disability is not due to conviction of a felony or criminal activity which caused or resulted in the members disability, a disability retirement pension purchased by contributions of the county or district. This subparagraph shall only apply to a person who becomes a member of the system on or after January 1, 1988.
31726. (a) Upon retirement for nonservice-connected disability a member who has attained age 65 shall receive their service retirement allowance.(b) Every member under age 65 who is retired for nonservice-connected disability and who is not simultaneously retired as a member on deferred retirement of the Public Employees Retirement System or a retirement system established under this chapter in another county shall receive a disability retirement allowance which shall be the greater of the following:(1) The sum to which the member would be entitled as service retirement; or(2) A sum which shall consist of any of the following:(A) An annuity which is the actuarial equivalent of the members accumulated contributions at the time of retirement.(B) If, in the opinion of the board, the members disability is not due to intemperate use of alcoholic liquor or drugs, willful misconduct, or violation of law on the members part, a disability retirement pension purchased by contributions of the county or district.(C) If, in the opinion of the board, the members disability is not due to conviction of a felony or criminal activity which caused or resulted in the members disability, a disability retirement pension purchased by contributions of the county or district. This subparagraph shall only apply to a person who becomes a member of the system on or after January 1, 1988.
31726. (a) Upon retirement for nonservice-connected disability a member who has attained age 65 shall receive their service retirement allowance.
(b) Every member under age 65 who is retired for nonservice-connected disability and who is not simultaneously retired as a member on deferred retirement of the Public Employees Retirement System or a retirement system established under this chapter in another county shall receive a disability retirement allowance which shall be the greater of the following:
(1) The sum to which the member would be entitled as service retirement; or
(2) A sum which shall consist of any of the following:
(A) An annuity which is the actuarial equivalent of the members accumulated contributions at the time of retirement.
(B) If, in the opinion of the board, the members disability is not due to intemperate use of alcoholic liquor or drugs, willful misconduct, or violation of law on the members part, a disability retirement pension purchased by contributions of the county or district.
(C) If, in the opinion of the board, the members disability is not due to conviction of a felony or criminal activity which caused or resulted in the members disability, a disability retirement pension purchased by contributions of the county or district. This subparagraph shall only apply to a person who becomes a member of the system on or after January 1, 1988.
SEC. 11. Section 31776.3 of the Government Code is amended to read:31776.3. (a) Unless the implementing ordinance otherwise provides, the balance in the participants program account shall be distributed to the participant in a single lump-sum payment at the time of retirement. If requested by the participant, the payment may be immediately deposited into a qualified tax-deferred account established by the participant.(b) The implementing ordinance may provide one or more of the following optional forms of distribution for a participants account:(1) Substantially level installment payments over 240 months starting with the date that the member leaves DROP. The balance in the participants account during the installment payout period shall be credited with interest at the same rate, if any, as is being credited to program accounts for currently active members. A cost-of-living adjustment may not be made to the monthly amount being paid pursuant to this paragraph.(2) An annuity in a form established by the board and subject to the applicable provisions of the Internal Revenue Code that shall be the actuarial equivalent of the balance in the participants program account on the retirement date. The actuarial equivalent under this paragraph shall be determined on the same basis as is used for determining optional settlements at retirement for a members monthly retirement allowance.(c) Notwithstanding any other provision of this article, a participant, nonparticipant spouse, or beneficiary may not be permitted to elect a distribution under this article that does not satisfy the requirements of Section 401(a)(9) of Title 26 of the United States Code, including the incidental death benefit requirements of Section 401(a)(9)(G) and the regulations thereunder.(d) The required beginning date of distributions that reflect the entire interest of the participant shall be as follows:(1) In the case of a lump-sum distribution to the participant, the lump-sum payment shall be made, at the participants option, not later than April 1 of the calendar year following the later of the calendar year in which the participant attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, or an age determined by the Internal Revenue Service, or the calendar year in which the participant terminates all employment for the employer.(2) In the case of a distribution to the participant in the form of installment payments or an annuity, payment shall begin, at the participants option, not later than April 1 of the calendar year following the later of the calendar year in which the participant attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, or an age determined by the Internal Revenue Service, or the calendar year in which the participant terminates all employment subject to coverage by the plan.(3) In the case of a benefit payable on account of the participants death, distribution shall be paid at the option of the beneficiary, no later than December 31 of the calendar year in which the first anniversary of the participants date of death occurs unless the beneficiary is the participants spouse in which case distributions shall commence on or before the later of either of the following:(A) December 31 of the calendar year immediately following the calendar year in which the participant dies.(B) December 31 of the calendar year in which the participant would have attained 72 years of age the applicable age that determines the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, or an age determined by the Internal Revenue Service.
SEC. 11. Section 31776.3 of the Government Code is amended to read:
### SEC. 11.
31776.3. (a) Unless the implementing ordinance otherwise provides, the balance in the participants program account shall be distributed to the participant in a single lump-sum payment at the time of retirement. If requested by the participant, the payment may be immediately deposited into a qualified tax-deferred account established by the participant.(b) The implementing ordinance may provide one or more of the following optional forms of distribution for a participants account:(1) Substantially level installment payments over 240 months starting with the date that the member leaves DROP. The balance in the participants account during the installment payout period shall be credited with interest at the same rate, if any, as is being credited to program accounts for currently active members. A cost-of-living adjustment may not be made to the monthly amount being paid pursuant to this paragraph.(2) An annuity in a form established by the board and subject to the applicable provisions of the Internal Revenue Code that shall be the actuarial equivalent of the balance in the participants program account on the retirement date. The actuarial equivalent under this paragraph shall be determined on the same basis as is used for determining optional settlements at retirement for a members monthly retirement allowance.(c) Notwithstanding any other provision of this article, a participant, nonparticipant spouse, or beneficiary may not be permitted to elect a distribution under this article that does not satisfy the requirements of Section 401(a)(9) of Title 26 of the United States Code, including the incidental death benefit requirements of Section 401(a)(9)(G) and the regulations thereunder.(d) The required beginning date of distributions that reflect the entire interest of the participant shall be as follows:(1) In the case of a lump-sum distribution to the participant, the lump-sum payment shall be made, at the participants option, not later than April 1 of the calendar year following the later of the calendar year in which the participant attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, or an age determined by the Internal Revenue Service, or the calendar year in which the participant terminates all employment for the employer.(2) In the case of a distribution to the participant in the form of installment payments or an annuity, payment shall begin, at the participants option, not later than April 1 of the calendar year following the later of the calendar year in which the participant attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, or an age determined by the Internal Revenue Service, or the calendar year in which the participant terminates all employment subject to coverage by the plan.(3) In the case of a benefit payable on account of the participants death, distribution shall be paid at the option of the beneficiary, no later than December 31 of the calendar year in which the first anniversary of the participants date of death occurs unless the beneficiary is the participants spouse in which case distributions shall commence on or before the later of either of the following:(A) December 31 of the calendar year immediately following the calendar year in which the participant dies.(B) December 31 of the calendar year in which the participant would have attained 72 years of age the applicable age that determines the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, or an age determined by the Internal Revenue Service.
31776.3. (a) Unless the implementing ordinance otherwise provides, the balance in the participants program account shall be distributed to the participant in a single lump-sum payment at the time of retirement. If requested by the participant, the payment may be immediately deposited into a qualified tax-deferred account established by the participant.(b) The implementing ordinance may provide one or more of the following optional forms of distribution for a participants account:(1) Substantially level installment payments over 240 months starting with the date that the member leaves DROP. The balance in the participants account during the installment payout period shall be credited with interest at the same rate, if any, as is being credited to program accounts for currently active members. A cost-of-living adjustment may not be made to the monthly amount being paid pursuant to this paragraph.(2) An annuity in a form established by the board and subject to the applicable provisions of the Internal Revenue Code that shall be the actuarial equivalent of the balance in the participants program account on the retirement date. The actuarial equivalent under this paragraph shall be determined on the same basis as is used for determining optional settlements at retirement for a members monthly retirement allowance.(c) Notwithstanding any other provision of this article, a participant, nonparticipant spouse, or beneficiary may not be permitted to elect a distribution under this article that does not satisfy the requirements of Section 401(a)(9) of Title 26 of the United States Code, including the incidental death benefit requirements of Section 401(a)(9)(G) and the regulations thereunder.(d) The required beginning date of distributions that reflect the entire interest of the participant shall be as follows:(1) In the case of a lump-sum distribution to the participant, the lump-sum payment shall be made, at the participants option, not later than April 1 of the calendar year following the later of the calendar year in which the participant attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, or an age determined by the Internal Revenue Service, or the calendar year in which the participant terminates all employment for the employer.(2) In the case of a distribution to the participant in the form of installment payments or an annuity, payment shall begin, at the participants option, not later than April 1 of the calendar year following the later of the calendar year in which the participant attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, or an age determined by the Internal Revenue Service, or the calendar year in which the participant terminates all employment subject to coverage by the plan.(3) In the case of a benefit payable on account of the participants death, distribution shall be paid at the option of the beneficiary, no later than December 31 of the calendar year in which the first anniversary of the participants date of death occurs unless the beneficiary is the participants spouse in which case distributions shall commence on or before the later of either of the following:(A) December 31 of the calendar year immediately following the calendar year in which the participant dies.(B) December 31 of the calendar year in which the participant would have attained 72 years of age the applicable age that determines the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, or an age determined by the Internal Revenue Service.
31776.3. (a) Unless the implementing ordinance otherwise provides, the balance in the participants program account shall be distributed to the participant in a single lump-sum payment at the time of retirement. If requested by the participant, the payment may be immediately deposited into a qualified tax-deferred account established by the participant.(b) The implementing ordinance may provide one or more of the following optional forms of distribution for a participants account:(1) Substantially level installment payments over 240 months starting with the date that the member leaves DROP. The balance in the participants account during the installment payout period shall be credited with interest at the same rate, if any, as is being credited to program accounts for currently active members. A cost-of-living adjustment may not be made to the monthly amount being paid pursuant to this paragraph.(2) An annuity in a form established by the board and subject to the applicable provisions of the Internal Revenue Code that shall be the actuarial equivalent of the balance in the participants program account on the retirement date. The actuarial equivalent under this paragraph shall be determined on the same basis as is used for determining optional settlements at retirement for a members monthly retirement allowance.(c) Notwithstanding any other provision of this article, a participant, nonparticipant spouse, or beneficiary may not be permitted to elect a distribution under this article that does not satisfy the requirements of Section 401(a)(9) of Title 26 of the United States Code, including the incidental death benefit requirements of Section 401(a)(9)(G) and the regulations thereunder.(d) The required beginning date of distributions that reflect the entire interest of the participant shall be as follows:(1) In the case of a lump-sum distribution to the participant, the lump-sum payment shall be made, at the participants option, not later than April 1 of the calendar year following the later of the calendar year in which the participant attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, or an age determined by the Internal Revenue Service, or the calendar year in which the participant terminates all employment for the employer.(2) In the case of a distribution to the participant in the form of installment payments or an annuity, payment shall begin, at the participants option, not later than April 1 of the calendar year following the later of the calendar year in which the participant attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, or an age determined by the Internal Revenue Service, or the calendar year in which the participant terminates all employment subject to coverage by the plan.(3) In the case of a benefit payable on account of the participants death, distribution shall be paid at the option of the beneficiary, no later than December 31 of the calendar year in which the first anniversary of the participants date of death occurs unless the beneficiary is the participants spouse in which case distributions shall commence on or before the later of either of the following:(A) December 31 of the calendar year immediately following the calendar year in which the participant dies.(B) December 31 of the calendar year in which the participant would have attained 72 years of age the applicable age that determines the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, or an age determined by the Internal Revenue Service.
31776.3. (a) Unless the implementing ordinance otherwise provides, the balance in the participants program account shall be distributed to the participant in a single lump-sum payment at the time of retirement. If requested by the participant, the payment may be immediately deposited into a qualified tax-deferred account established by the participant.
(b) The implementing ordinance may provide one or more of the following optional forms of distribution for a participants account:
(1) Substantially level installment payments over 240 months starting with the date that the member leaves DROP. The balance in the participants account during the installment payout period shall be credited with interest at the same rate, if any, as is being credited to program accounts for currently active members. A cost-of-living adjustment may not be made to the monthly amount being paid pursuant to this paragraph.
(2) An annuity in a form established by the board and subject to the applicable provisions of the Internal Revenue Code that shall be the actuarial equivalent of the balance in the participants program account on the retirement date. The actuarial equivalent under this paragraph shall be determined on the same basis as is used for determining optional settlements at retirement for a members monthly retirement allowance.
(c) Notwithstanding any other provision of this article, a participant, nonparticipant spouse, or beneficiary may not be permitted to elect a distribution under this article that does not satisfy the requirements of Section 401(a)(9) of Title 26 of the United States Code, including the incidental death benefit requirements of Section 401(a)(9)(G) and the regulations thereunder.
(d) The required beginning date of distributions that reflect the entire interest of the participant shall be as follows:
(1) In the case of a lump-sum distribution to the participant, the lump-sum payment shall be made, at the participants option, not later than April 1 of the calendar year following the later of the calendar year in which the participant attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, or an age determined by the Internal Revenue Service, or the calendar year in which the participant terminates all employment for the employer.
(2) In the case of a distribution to the participant in the form of installment payments or an annuity, payment shall begin, at the participants option, not later than April 1 of the calendar year following the later of the calendar year in which the participant attains 72 years of age, the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, or an age determined by the Internal Revenue Service, or the calendar year in which the participant terminates all employment subject to coverage by the plan.
(3) In the case of a benefit payable on account of the participants death, distribution shall be paid at the option of the beneficiary, no later than December 31 of the calendar year in which the first anniversary of the participants date of death occurs unless the beneficiary is the participants spouse in which case distributions shall commence on or before the later of either of the following:
(A) December 31 of the calendar year immediately following the calendar year in which the participant dies.
(B) December 31 of the calendar year in which the participant would have attained 72 years of age the applicable age that determines the required beginning date specified in Section 401(a)(9) of Title 26 of the United States Code, or an age determined by the Internal Revenue Service.
SEC. 4.SEC. 12. 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 their death and if they die before they receive the amount of their accumulated contributions at retirement, to have the balance at death paid to their surviving spouse, or if none, to their designated beneficiary, or if none, to their estate.(b) (1) Optional settlement two consists of the right to have a retirement allowance paid to the judge until their death and thereafter to their surviving spouse for life.(2) If the judges spouse predeceases the judge and the judge elected this optional settlement to be effective on or after January 1, 2002, the judges 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 a legal separation is filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, and the retired judge elected this optional settlement to be effective on or after January 1, 2002, the retired judges 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 their death, and thereafter to have one-half of their retirement allowance paid to their surviving spouse for life.(2) If the judges spouse predeceases the judge and the judge elected this optional settlement to be effective on or after January 1, 2002, the judges 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 a legal separation is filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, and the retired judge elected this optional settlement to be effective on or after January 1, 2002, the retired judges 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 their retirement allowance, that they may select subject to the approval of the board.
SEC. 4.SEC. 12. Section 75571 of the Government Code is amended to read:
### SEC. 4.SEC. 12.
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 their death and if they die before they receive the amount of their accumulated contributions at retirement, to have the balance at death paid to their surviving spouse, or if none, to their designated beneficiary, or if none, to their estate.(b) (1) Optional settlement two consists of the right to have a retirement allowance paid to the judge until their death and thereafter to their surviving spouse for life.(2) If the judges spouse predeceases the judge and the judge elected this optional settlement to be effective on or after January 1, 2002, the judges 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 a legal separation is filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, and the retired judge elected this optional settlement to be effective on or after January 1, 2002, the retired judges 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 their death, and thereafter to have one-half of their retirement allowance paid to their surviving spouse for life.(2) If the judges spouse predeceases the judge and the judge elected this optional settlement to be effective on or after January 1, 2002, the judges 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 a legal separation is filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, and the retired judge elected this optional settlement to be effective on or after January 1, 2002, the retired judges 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 their retirement allowance, that they may select subject to the approval of the board.
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 their death and if they die before they receive the amount of their accumulated contributions at retirement, to have the balance at death paid to their surviving spouse, or if none, to their designated beneficiary, or if none, to their estate.(b) (1) Optional settlement two consists of the right to have a retirement allowance paid to the judge until their death and thereafter to their surviving spouse for life.(2) If the judges spouse predeceases the judge and the judge elected this optional settlement to be effective on or after January 1, 2002, the judges 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 a legal separation is filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, and the retired judge elected this optional settlement to be effective on or after January 1, 2002, the retired judges 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 their death, and thereafter to have one-half of their retirement allowance paid to their surviving spouse for life.(2) If the judges spouse predeceases the judge and the judge elected this optional settlement to be effective on or after January 1, 2002, the judges 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 a legal separation is filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, and the retired judge elected this optional settlement to be effective on or after January 1, 2002, the retired judges 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 their retirement allowance, that they may select subject to the approval of the board.
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 their death and if they die before they receive the amount of their accumulated contributions at retirement, to have the balance at death paid to their surviving spouse, or if none, to their designated beneficiary, or if none, to their estate.(b) (1) Optional settlement two consists of the right to have a retirement allowance paid to the judge until their death and thereafter to their surviving spouse for life.(2) If the judges spouse predeceases the judge and the judge elected this optional settlement to be effective on or after January 1, 2002, the judges 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 a legal separation is filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, and the retired judge elected this optional settlement to be effective on or after January 1, 2002, the retired judges 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 their death, and thereafter to have one-half of their retirement allowance paid to their surviving spouse for life.(2) If the judges spouse predeceases the judge and the judge elected this optional settlement to be effective on or after January 1, 2002, the judges 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 a legal separation is filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, and the retired judge elected this optional settlement to be effective on or after January 1, 2002, the retired judges 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 their retirement allowance, that they may select subject to the approval of the board.
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 their death and if they die before they receive the amount of their accumulated contributions at retirement, to have the balance at death paid to their surviving spouse, or if none, to their designated beneficiary, or if none, to their estate.
(b) (1) Optional settlement two consists of the right to have a retirement allowance paid to the judge until their death and thereafter to their surviving spouse for life.
(2) If the judges spouse predeceases the judge and the judge elected this optional settlement to be effective on or after January 1, 2002, the judges 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 a legal separation is filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, and the retired judge elected this optional settlement to be effective on or after January 1, 2002, the retired judges 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 their death, and thereafter to have one-half of their retirement allowance paid to their surviving spouse for life.
(2) If the judges spouse predeceases the judge and the judge elected this optional settlement to be effective on or after January 1, 2002, the judges 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 a legal separation is filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, and the retired judge elected this optional settlement to be effective on or after January 1, 2002, the retired judges 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 their retirement allowance, that they may select subject to the approval of the board.
SEC. 5.SEC. 13. Section 75571.5 of the Government Code is amended 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 their 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 their life alone and if they die before they receive in annuity payments the amount of their accumulated contributions at retirement, to have the balance at death paid to their surviving spouse, or if none, to their designated beneficiary, or if none, to their estate.(c) (1) The 100 Percent Beneficiary Option 2 consists of the right to have a retirement allowance paid to the judge until their death and thereafter to have the same monthly allowance paid to their 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 judges 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 judges 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 their death and thereafter to have the same monthly allowance paid to their 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 judges monthly allowance that exceeds the amount of the allowance deemed payable pursuant to subdivision (b) of Section 75590.(2) If the judges spouse predeceases the judge and the judge elected this optional settlement, the judges 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 a legal separation filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, the retired judges 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 their death and thereafter to have one-half of the monthly allowance paid to their 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 judges 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 judges 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 their death and thereafter to have one-half of the monthly allowance paid to their 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 judges monthly allowance that exceeds the amount of the allowance deemed payable pursuant to subdivision (b) of Section 75590.(2) If the judges spouse predeceases the judge and the judge elected this optional settlement, the judges 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 a legal separation filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, the retired judges 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 their death, and thereafter to have a monthly allowance paid to their 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 their death after retirement, a monthly allowance in an amount determined by the judge be paid to their surviving spouse for life.(2) Specific Percentage to a Surviving Spouse. The judge may specify that upon their death after retirement, a monthly allowance in an amount equivalent to a specified percentage of the judges allowance be paid to their surviving spouse for life.
SEC. 5.SEC. 13. Section 75571.5 of the Government Code is amended to read:
### SEC. 5.SEC. 13.
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 their 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 their life alone and if they die before they receive in annuity payments the amount of their accumulated contributions at retirement, to have the balance at death paid to their surviving spouse, or if none, to their designated beneficiary, or if none, to their estate.(c) (1) The 100 Percent Beneficiary Option 2 consists of the right to have a retirement allowance paid to the judge until their death and thereafter to have the same monthly allowance paid to their 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 judges 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 judges 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 their death and thereafter to have the same monthly allowance paid to their 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 judges monthly allowance that exceeds the amount of the allowance deemed payable pursuant to subdivision (b) of Section 75590.(2) If the judges spouse predeceases the judge and the judge elected this optional settlement, the judges 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 a legal separation filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, the retired judges 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 their death and thereafter to have one-half of the monthly allowance paid to their 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 judges 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 judges 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 their death and thereafter to have one-half of the monthly allowance paid to their 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 judges monthly allowance that exceeds the amount of the allowance deemed payable pursuant to subdivision (b) of Section 75590.(2) If the judges spouse predeceases the judge and the judge elected this optional settlement, the judges 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 a legal separation filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, the retired judges 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 their death, and thereafter to have a monthly allowance paid to their 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 their death after retirement, a monthly allowance in an amount determined by the judge be paid to their surviving spouse for life.(2) Specific Percentage to a Surviving Spouse. The judge may specify that upon their death after retirement, a monthly allowance in an amount equivalent to a specified percentage of the judges allowance be paid to their surviving spouse for life.
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 their 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 their life alone and if they die before they receive in annuity payments the amount of their accumulated contributions at retirement, to have the balance at death paid to their surviving spouse, or if none, to their designated beneficiary, or if none, to their estate.(c) (1) The 100 Percent Beneficiary Option 2 consists of the right to have a retirement allowance paid to the judge until their death and thereafter to have the same monthly allowance paid to their 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 judges 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 judges 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 their death and thereafter to have the same monthly allowance paid to their 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 judges monthly allowance that exceeds the amount of the allowance deemed payable pursuant to subdivision (b) of Section 75590.(2) If the judges spouse predeceases the judge and the judge elected this optional settlement, the judges 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 a legal separation filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, the retired judges 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 their death and thereafter to have one-half of the monthly allowance paid to their 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 judges 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 judges 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 their death and thereafter to have one-half of the monthly allowance paid to their 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 judges monthly allowance that exceeds the amount of the allowance deemed payable pursuant to subdivision (b) of Section 75590.(2) If the judges spouse predeceases the judge and the judge elected this optional settlement, the judges 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 a legal separation filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, the retired judges 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 their death, and thereafter to have a monthly allowance paid to their 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 their death after retirement, a monthly allowance in an amount determined by the judge be paid to their surviving spouse for life.(2) Specific Percentage to a Surviving Spouse. The judge may specify that upon their death after retirement, a monthly allowance in an amount equivalent to a specified percentage of the judges allowance be paid to their surviving spouse for life.
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 their 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 their life alone and if they die before they receive in annuity payments the amount of their accumulated contributions at retirement, to have the balance at death paid to their surviving spouse, or if none, to their designated beneficiary, or if none, to their estate.(c) (1) The 100 Percent Beneficiary Option 2 consists of the right to have a retirement allowance paid to the judge until their death and thereafter to have the same monthly allowance paid to their 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 judges 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 judges 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 their death and thereafter to have the same monthly allowance paid to their 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 judges monthly allowance that exceeds the amount of the allowance deemed payable pursuant to subdivision (b) of Section 75590.(2) If the judges spouse predeceases the judge and the judge elected this optional settlement, the judges 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 a legal separation filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, the retired judges 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 their death and thereafter to have one-half of the monthly allowance paid to their 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 judges 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 judges 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 their death and thereafter to have one-half of the monthly allowance paid to their 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 judges monthly allowance that exceeds the amount of the allowance deemed payable pursuant to subdivision (b) of Section 75590.(2) If the judges spouse predeceases the judge and the judge elected this optional settlement, the judges 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 a legal separation filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, the retired judges 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 their death, and thereafter to have a monthly allowance paid to their 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 their death after retirement, a monthly allowance in an amount determined by the judge be paid to their surviving spouse for life.(2) Specific Percentage to a Surviving Spouse. The judge may specify that upon their death after retirement, a monthly allowance in an amount equivalent to a specified percentage of the judges allowance be paid to their surviving spouse for life.
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 their 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 their life alone and if they die before they receive in annuity payments the amount of their accumulated contributions at retirement, to have the balance at death paid to their surviving spouse, or if none, to their designated beneficiary, or if none, to their estate.
(c) (1) The 100 Percent Beneficiary Option 2 consists of the right to have a retirement allowance paid to the judge until their death and thereafter to have the same monthly allowance paid to their 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 judges 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 judges 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 their death and thereafter to have the same monthly allowance paid to their 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 judges monthly allowance that exceeds the amount of the allowance deemed payable pursuant to subdivision (b) of Section 75590.
(2) If the judges spouse predeceases the judge and the judge elected this optional settlement, the judges 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 a legal separation filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, the retired judges 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 their death and thereafter to have one-half of the monthly allowance paid to their 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 judges 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 judges 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 their death and thereafter to have one-half of the monthly allowance paid to their 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 judges monthly allowance that exceeds the amount of the allowance deemed payable pursuant to subdivision (b) of Section 75590.
(2) If the judges spouse predeceases the judge and the judge elected this optional settlement, the judges 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 a legal separation filed, and the judgment dividing the community property between the judge and the surviving spouse awards the total interest in this system to the retired judge, or the marriage is annulled and confirmed by a court, the retired judges 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 their death, and thereafter to have a monthly allowance paid to their 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 their death after retirement, a monthly allowance in an amount determined by the judge be paid to their surviving spouse for life.
(2) Specific Percentage to a Surviving Spouse. The judge may specify that upon their death after retirement, a monthly allowance in an amount equivalent to a specified percentage of the judges allowance be paid to their surviving spouse for life.