text:
(a) Upon request by the system, a participant or beneficiary with respect to the Cash Balance Benefit Program shall provide to the system any information affecting his or her status as a participant or beneficiary.

(b) Upon request by the system, the participant shall provide proof of his or her date of birth.

(c) A participant who has not contributed to the Cash Balance Benefit Program during the immediately preceding plan year shall provide the system with his or her current mailing address and beneficiary information.

(d) For a trust as defined in subdivision (b) of Section 26106.5 that is designated as a joint and survivor annuity beneficiary, the following documentation is required:

(1) The participant shall provide an acknowledged certification that includes each declaration prescribed by clause A-6 of Section 1.401(a)(9)-4 of Title 26 of the Code of Federal Regulations and a declaration that the trust meets the requirements and conditions as defined in subdivision (b) of Section 26106.5. The certification shall be submitted to the system at the time of election of the beneficiary and is required for the election to be valid. The certification shall be in the form of an acknowledged declaration signed by the participant and by all then-acting trustees of the trust.

(2) After the participant’s death, the then-acting trustee or trustees of the trust shall provide an acknowledged certification that includes each of the declarations prescribed by clause A-6 of Section 1.401(a)(9)-4 of Title 26 of the Code of Federal Regulations and a declaration that the trust meets the requirements and conditions as defined in subdivision (b) of Section 26106.5. The certification by the trustee or trustees of the trust shall be submitted to the system upon the participant’s death and shall additionally certify that the trust has not been revoked, modified, or amended in any manner which would cause the representations contained in the certification to be incorrect. The certification shall contain a statement that it is being signed by all of the then-acting trustees of the trust and shall be in the form of an acknowledged declaration signed by all the then-acting trustees.

(3) At any time, upon demand by the system, the participant or trustee of the trust shall provide a copy of the trust instrument.

history: (History: Amended by Stats. 2016, Ch. 559, Sec. 14. (AB 1875) Effective January 1, 2017.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


kind: section

code: EDC

text:
(a) (1) Any person who is not already a member of the Defined Benefit Program and who is employed to perform creditable service by an employer that provides the Cash Balance Benefit Program shall become a participant in the Cash Balance Benefit Program for creditable service performed for that employer if the person is not excluded from participation pursuant to Section 22601 and all employment to perform creditable service for that employer meets either of the following conditions:

(A) The person is employed by an employer, excluding a community college district, to perform creditable service on a part-time basis for less than 50 percent of the time the employer requires for the full-time position, or on a substitute, part-time hourly or part-time daily basis.

(B) The person is employed by a community college district to perform creditable service on a temporary basis pursuant to Section 87474, 87478, 87480, 87481, 87482, or 87482.5.

(2) Participation shall begin as of the first day of employment or the effective date of the employer’s governing board’s action to provide the Cash Balance Benefit Program, whichever is later.

(b) If the employer’s governing board’s action to provide the Cash Balance Benefit Program gives employees the right to elect coverage by the federal Social Security Act or an alternative retirement plan offered by the employer in addition to the Cash Balance Benefit Program, the employee may elect coverage by the federal Social Security Act or the alternative retirement plan in lieu of participating in the Cash Balance Benefit Program.

(1) The election shall be made in writing on a properly executed form prescribed by the system and filed with the employer within 60 calendar days after the first day of employment, or the date of the employer’s governing board’s action to provide the Cash Balance Benefit Program, or the effective date of the employer’s governing board’s action to provide the Cash Balance Benefit Program, whichever occurs later.

(2) The election form shall be received at the system’s headquarters office within 60 calendar days after the date of the employee’s signature. The employer shall retain a copy of the signed election form.

(3) The election shall become effective as of the first day of employment or the effective date of the employer’s governing board’s action to provide the Cash Balance Benefit Program, whichever occurs later.

(c) If the employer’s governing board subsequently provides coverage by the federal Social Security Act, a person who becomes a participant in the Cash Balance Benefit Program pursuant to subdivision (a) may elect coverage by the federal Social Security Act in lieu of participating in the Cash Balance Benefit Program.

(1) The election shall be made in writing on a properly executed form prescribed by the system and filed with the employer within 60 calendar days after the date of the employer’s governing board’s action to provide coverage by the federal Social Security Act or the effective date of the employer’s governing board’s action to provide coverage by the federal Social Security Act, whichever occurs later.

(2) The election form shall be received by the system’s headquarters office within 60 calendar days after the date of the employee’s signature. The employer shall retain a copy of the signed election form.

(3) The election shall become effective as of the effective date of the employer’s governing board’s action to provide coverage by the federal Social Security Act.

(d) If the governing board of an employer provided federal Social Security Act coverage with an effective date prior to January 1, 2007, and the employer offered the Cash Balance Benefit Program as of the effective date of the governing board’s action to provide federal Social Security Act coverage, a participant who was performing creditable service for that employer may elect to be covered by the federal Social Security Act in lieu of the Cash Balance Benefit Program. The participant’s election shall be made on or after March 1, 2008, and on or before May 1, 2008. The election to participate in the federal Social Security Act shall be effective on July 1, 2008.

(e) An election made pursuant to subdivision (b), (c), or (d) shall not preclude an employee from electing to participate in the Cash Balance Benefit Program for creditable service performed for that employer at a later date if the employer still provides the Cash Balance Benefit Program and the employee is eligible for participation as described in paragraph (1) of subdivision (a).

(1) The election shall be made in writing on a properly executed form prescribed by the system and filed with the employer.

(2) The election form shall be received by the system’s headquarters office within 60 calendar days after the date of the employee’s signature and prior to the submission of contributions. The employer shall retain a copy of the signed election form.

(3) The election shall be effective no earlier than the first day of the pay period in which the election is made and may not be canceled.

history: (History: Repealed and added by Stats. 2019, Ch. 318, Sec. 9. (AB 1452) Effective January 1, 2020.)

division: 1. GENERAL EDUCATION CODE PROVISIONS

title: 1. GENERAL EDUCATION CODE PROVISIONS

chapter: 5. Eligibility

path: 1. GENERAL EDUCATION CODE PROVISIONS > 1. GENERAL EDUCATION CODE PROVISIONS > 14. STATE TEACHERS’ RETIREMENT SYSTEM CASH BENEFIT PROGRAM > 5. Eligibility


text:
(a) (1) A member of the Defined Benefit Program who is employed by an employer that provides the Cash Balance Benefit Program may elect to become a participant of the Cash Balance Benefit Program for creditable service performed for that employer if all employment to perform creditable service for that employer meets either of the following conditions:

(A) The member is employed by an employer, excluding a community college district, to perform creditable service on a part-time basis for less than 50 percent of the time the employer requires for the full-time position or on a substitute, part-time hourly, or part-time daily basis.

(B) The member is employed by a community college district to perform creditable service on a temporary basis pursuant to Section 87474, 87478, 87480, 87481, 87482, or 87482.5.

(2) The election shall be made in writing on a properly executed form prescribed by the system and filed with the employer within 60 calendar days after the first day of employment, or the date of the employer’s governing board’s action to provide the Cash Balance Benefit Program, or the effective date of the employer’s governing board’s action to provide the Cash Balance Benefit Program, whichever occurs later.

(3) The election form shall be received at the system’s headquarters office within 60 calendar days after the date of the employee’s signature and prior to the submission of contributions. The employer shall retain a copy of the signed election form.

(4) The election shall become effective as of the first day of employment or the effective date of the employer’s governing board’s action to provide the Cash Balance Benefit Program, whichever occurs later.

(b) (1) If an employee was excluded from participation in the Cash Balance Benefit Program pursuant to Section 26401.5, as that section read on December 31, 2000, for the same service, the employee may elect to become a participant for creditable service subject to coverage under the Cash Balance Benefit Program for that employer, provided all of the following conditions are met:

(A) The employment is pursuant to Section 87474, 87478, 87480, 87481, 87482, or 87482.5.

(B) The employer offers the Cash Balance Benefit Program.

(C) The creditable service is not also subject to mandatory membership in the Defined Benefit Program.

(2) Employers shall, on or before May 1, 2007, make available to employees described in this subdivision, information and forms provided by the system for making an election regarding participation. The employee shall submit the form to the employer within a 60-day election period designated by the employer. The employer shall retain a copy of the employee’s signed election form and mail the original signed election form to the system’s headquarters office. The election shall become effective on the first day of the pay period following the pay period in which the election is made.

(c) A member who elects to participate in the Cash Balance Benefit Program pursuant to this section may subsequently elect that creditable service performed for the employer be subject to coverage by the Defined Benefit Program in lieu of the Cash Balance Benefit Program.

(1) The election shall be made in writing on a properly executed form prescribed by the system and filed with the employer at any time while employed to perform creditable service.

(2) The election form shall be received at the system’s headquarters office within 60 calendar days after the date of the employee’s signature and prior to the submission of contributions. The employer shall retain a copy of the signed election form.

(3) The election shall become effective no earlier than the first day of the pay period in which the election is made and is irrevocable.

history: (History: Amended by Stats. 2019, Ch. 318, Sec. 10. (AB 1452) Effective January 1, 2020.)

part: 14. STATE TEACHERS’ RETIREMENT SYSTEM CASH BENEFIT PROGRAM

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) A person who performs trustee service for an employer who has elected to provide benefits pursuant to this part to its employees may elect to participate in the Cash Balance Benefit Program for that service.

(1) The election shall be made in writing on a properly executed form prescribed by the system and filed with the employer at any time while performing trustee service.

(2) The election form shall be received at the system’s headquarters office within 60 calendar days after the date of the trustee’s signature and prior to the submission of contributions. The employer shall retain a copy of the election form.

(3) The election shall become effective no earlier than the first day of the pay period in which the election is made.

(b) An election made pursuant to this section is irrevocable.

history: (History: Amended by Stats. 2019, Ch. 318, Sec. 11. (AB 1452) Effective January 1, 2020.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: Acceptance of employment subject to coverage by the Cash Balance Benefit Program constitutes consent to have contributions deducted from the employee’s salary as required by Section 26501.

history: (History: Amended by Stats. 1998, Ch. 965, Sec. 264. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS

chapter: 6. Contributions

path: 1. GENERAL EDUCATION CODE PROVISIONS > 1. GENERAL EDUCATION CODE PROVISIONS > 14. STATE TEACHERS’ RETIREMENT SYSTEM CASH BENEFIT PROGRAM > 6. Contributions


text: Except as provided in Section 26504, the participant shall contribute an amount equivalent to 4 percent of salary.

history: (History: Amended by Stats. 1998, Ch. 1048, Sec. 38. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: A person who elects, pursuant to Section 26403, to participate in the Cash Balance Benefit Program shall make contributions, as provided in Section 26501, based on his or her salary or other compensation earned for trustee service.

history: (History: Added by Stats. 2000, Ch. 1020, Sec. 14. Effective January 1, 2001.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: Notwithstanding Section 26301.5, the employer may pick up, for the sole purpose of and in accordance with the requirements of Section 414(h)(2) of Title 26 of the United States Code and Section 17501 of the Revenue and Taxation Code, all of the amounts otherwise due as employee contributions, which shall be paid by the employer in lieu of employee contributions and which shall be deducted from the employee’s salary.

history: (History: Amended by Stats. 1998, Ch. 965, Sec. 265. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: Except as provided in Sections 26504 and 26507, the employer shall contribute an amount equivalent to 4 percent of salary for each participant employed by the employer.

history: (History: Amended by Stats. 1998, Ch. 1048, Sec. 39. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: If a person elects, pursuant to Section 26403, to participate in the Cash Balance Benefit Program, his or her employer shall make contributions, as provided in Section 26503, based on the salary or other compensation paid for trustee service. For a participant subject to the California Public Employees’ Pension Reform Act of 2013, other compensation paid for trustee service is subject to the same requirements as “salary” as defined in Section 26139.5.

history: (History: Amended by Stats. 2013, Ch. 559, Sec. 38. (AB 1381) Effective January 1, 2014. Deemed operative January 1, 2013, by Sec. 1 of Ch. 559.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
The employer may enter into a collective bargaining agreement to pay a different employer contribution rate and a different employee contribution rate, provided all of the following conditions are met:

(a) The sum of the employee contributions and employer contributions for each participant shall equal or exceed 8 percent of salary.

(b) The employee contribution rate may exceed the employer contribution rate but in no event shall the employer contribution rate be less than 4 percent.

(c) The employee contribution rate shall not be less than the employer contribution rate. If the terms of a collective bargaining agreement that is in effect on January 1, 2014, would be impaired by this subdivision, this subdivision shall not apply to the employer and participants subject to that contract until the expiration of that contract. A renewal, amendment, or any other extension of that contract shall be subject to the requirements of this subdivision.

(d) The employee contribution rate and employer contribution rate shall be the same for each participant employed by the employer.

(e) The employee contribution rate and employer contribution rate shall be in one-quarter percent increments.

(f) The employee contribution rate and employer contribution rate as determined under the collective bargaining agreement shall become effective on the first day of the plan year following notification to the system and shall remain in effect for at least one plan year. However, the employee contribution rate and the employer contribution rate as determined under the collective bargaining agreement may become effective as of the first day of the plan year in which notice is given if it is so provided in the collective bargaining agreement and if a lump-sum contribution is made to the plan equal to the additional employee and employer contributions, if any, that would have been required if the contribution rates had been in effect on the first day of the plan year. Interest shall be credited at the minimum interest rate with respect to the lump-sum contribution commencing with the first month after the contribution is made.

(g) The employer has filed notice of the employee contribution rate and the employer contribution rate on a form prescribed by the system.

history: (History: Amended by Stats. 2013, Ch. 559, Sec. 39. (AB 1381) Effective January 1, 2014. Deemed operative January 1, 2013, by Sec. 1 of Ch. 559.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) Except as provided in subdivision (b), participants shall not make voluntary pretax or post-tax contributions into the Cash Balance Benefit Program, nor shall participants redeposit amounts previously distributed from employee accounts or employer accounts.

(b) Pursuant to terms and conditions established by the board, participants may be permitted to transfer funds from eligible retirement plans into the Cash Balance Benefit Program to the extent that the transfers are allowable under and are completed in a manner prescribed by applicable federal and state laws, and any related regulations.

(c) Funds deposited with the Cash Balance Benefit Program by a participant pursuant to subdivision (b) shall be credited to the participant and identified separately from credits in the participant’s employee and employer accounts. Funds so deposited shall be treated as credits to the participant’s employee account for all other purposes under this part.

history: (History: Amended by Stats. 2015, Ch. 123, Sec. 34. (AB 991) Effective January 1, 2016.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) The board may adjust the mandatory employer contribution rate specified under Section 26503 for a fixed period of plan years when it has determined based upon the recommendation of the actuary, that increased contributions are required. The adjustment shall not exceed one-fourth of one percent for any plan year. The mandatory employer contribution rate as adjusted shall not exceed 4.25 percent of salary in any plan year for each participant employed by the employer, except as provided in subdivision (b).

(b) The adjustment to the employer contribution rate specified in subdivision (a) shall be applied to the employer contribution rate specified in a collective bargaining agreement pursuant to Section 26504 and in effect on the first day of the plan year in which the adjustment to the employer contribution rate takes effect.

(c) The adjusted employer contribution rate shall become effective no earlier than the first day of the plan year immediately following adoption by the board.

history: (History: Amended by Stats. 1998, Ch. 965, Sec. 268. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: All contributions based on salary earned by a participant, together with amounts credited under the minimum interest rate and additional earnings credit amounts, shall be treated as credits to individual accounts in the name of the participant. These accounts shall be nominal accounts used to determine the amount of retirement benefit, disability benefit, death benefit, or termination benefit of the participant or beneficiary. The participant shall have no actual individual account and shall have no claim to any particular assets of the plan or the fund.

history: (History: Added by Stats. 1995, Ch. 592, Sec. 16. Effective January 1, 1996.)

title: 1. GENERAL EDUCATION CODE PROVISIONS

chapter: 7. Employee and Employer Accounts

path: 1. GENERAL EDUCATION CODE PROVISIONS > 1. GENERAL EDUCATION CODE PROVISIONS > 14. STATE TEACHERS’ RETIREMENT SYSTEM CASH BENEFIT PROGRAM > 7. Employee and Employer Accounts


text: All employee contributions and interest credited under the minimum interest rate and additional earnings credits in respect of those contributions shall be treated as credits to the participant’s employee account.

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: All employer contributions on behalf of the participant and interest credited under the minimum interest rate and additional earnings credits in respect of those contributions shall be treated as credits to the participant’s employer account.

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) All employee contributions shall be credited to employee accounts and all employer contributions shall be credited to employer accounts effective as of the day contributions are required to be transmitted to the plan pursuant to subdivision (a) of Section 26303.

(b) This section shall become operative on July 1, 2018.

history: (History: Repealed (in Sec. 41) and added by Stats. 2016, Ch. 218, Sec. 42. (SB 1352) Effective January 1, 2017. Section operative July 1, 2018, by its own provisions.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) Beginning June 1, 1996, prior to the Cash Balance Plan becoming effective, and prior to the beginning of each plan year thereafter, the board, by plan amendment with respect to the Cash Balance Benefit Program, shall declare the minimum interest rate for crediting employee accounts and employer accounts with respect to the Cash Balance Benefit Program during the following plan year.

(b) All interest shall be computed at the minimum interest rate on the balance of the employee account and the employer account and shall be compounded daily.

(c) Interest shall not be credited to employee accounts and employer accounts that have been transferred to the Annuitant Reserve for payment of an annuity.

history: (History: Amended by Stats. 2016, Ch. 218, Sec. 43. (SB 1352) Effective January 1, 2017.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: In the event that the total amount of investment earnings of the plan for any plan year exceeds the sum of the total amount required to credit all employee and employer accounts at the minimum interest rate for the plan year plus the administrative costs of the plan for the plan year, then following the determination by the board with respect to additions to the Gain and Loss Reserve described in subdivision (c) of Section 26202 the board may declare by means of plan amendment an additional earnings credit for the plan year with respect to the employee and employer accounts of the plan participants.

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: Any additional earnings credit declared shall be determined as a specified percentage increase in the closing balance of each employee account and employer account with respect to the Cash Balance Benefit Program measured as of the last day of the plan year. The additional earnings credit shall be credited to employee account and employer account balances as of the date the board declares the additional earnings credit is to be applied. The additional earnings credit shall not be credited to employee accounts and employer accounts that have been transferred to the Annuitant Reserve for payment of an annuity under the Cash Balance Benefit Program.

history: (History: Amended by Stats. 1998, Ch. 965, Sec. 270. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) The board may declare by means of plan amendment with respect to the Cash Balance Benefit Program an additional annuity credit applicable to annuities being paid under the Cash Balance Benefit Program.

(b) The declaration authorized by subdivision (a) may be made only when the board by plan amendment with respect to the Cash Balance Benefit Program declares an additional earnings credit as provided in Section 26605 and if the total amount of investment earnings of the plan with respect to the Cash Balance Benefit Program for the plan year exceeds the sum of the total amount required to credit all employee and employer accounts at the minimum interest rate, the administrative costs of the plan with respect to the Cash Balance Benefit Program for the plan year, any addition to be made to the Gain and Loss Reserve under subdivision (c) of Section 26202, the total amount required to credit all employee and employer accounts in respect of the additional earnings credit so declared, and any other obligations incurred by the plan with respect to the Cash Balance Benefit Program.

(c) Any additional annuity credit with respect to the Cash Balance Benefit Program shall be based upon the annuity of the participant or beneficiary for the plan year and shall be paid as a lump sum to the participant or beneficiary on the date specified by the board.

history: (History: Amended by Stats. 1998, Ch. 965, Sec. 271. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: A participant has a vested right to a retirement benefit equal in amount to the total balance of credits in his or her employee account and employer account. The right accrues when a person becomes a participant.

title: 1. GENERAL EDUCATION CODE PROVISIONS

chapter: 8. Rights to Benefits

path: 1. GENERAL EDUCATION CODE PROVISIONS > 1. GENERAL EDUCATION CODE PROVISIONS > 14. STATE TEACHERS’ RETIREMENT SYSTEM CASH BENEFIT PROGRAM > 8. Rights to Benefits


text: The right of a participant to a benefit under this part, whether by lump sum or annuity, is not subject to execution or any other process whatsoever, except to the extent permitted by Section 704.110 of the Code of Civil Procedure, and is unassignable except as specifically provided under this part.

history: (History: Amended by Stats. 1998, Ch. 1048, Sec. 43. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) For the purpose of payments into or out of the fund for adjustments of errors or omissions with respect to the Cash Balance Benefit Program, the period of limitation shall be applied as follows:

(1) No action may be commenced by or against the board, the system, or the plan more than three years after all obligations to or on behalf of the participant or beneficiary have been discharged.

(2) In cases where the system makes an error resulting in incorrect payment to the participant or beneficiary, the system’s right to commence recovery shall expire three years from the date of payment.

(3) If an erroneous payment is made due to lack of information or inaccurate information regarding eligibility of a participant or beneficiary to receive a benefit from the Cash Balance Benefit Program, the period of limitation shall commence when the system discovers the erroneous payment.

(b) Notwithstanding any other provision of this section, if any erroneous payment has been made on the basis of fraud or intentional misrepresentation by a participant or beneficiary, or other party in relation to or on behalf of a participant or beneficiary, the three-year period of limitation shall not be deemed to commence or to have commenced until the system discovers the erroneous payment.

history: (History: Amended by Stats. 1998, Ch. 1048, Sec. 44. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
The signature of the spouse of a participant shall be required on a designation of beneficiary form, an election, change, or termination of an annuity, or an application for a retirement benefit, disability benefit, or termination benefit under this part, unless the participant declares in writing, under penalty of perjury, that one of the following conditions exists:

(a) The participant is not married.

(b) The participant does not know, and has taken all reasonable steps to determine, the whereabouts of the spouse.

(c) The spouse is incapable of executing the acknowledgment because of an incapacitating mental or physical condition.

(d) The participant and spouse have executed a marriage settlement agreement pursuant to Part 5 (commencing with Section 1500) of Division 4 of the Family Code that makes the community property law inapplicable to the marriage.

(e) The current spouse has no identifiable community property interest in the benefit.

history: (History: Amended by Stats. 2014, Ch. 755, Sec. 75. (SB 1220) Effective January 1, 2015.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: If a spouse refuses to sign a beneficiary designation, an election, change, or termination of an annuity, or an application for a retirement benefit, disability benefit, or termination benefit payable under this part, the participant may bring an action in court to enforce the spousal signature requirement or to waive the spousal signature requirement. Either party may bring an action pursuant to Section 1101 of the Family Code to determine the rights of the party.

history: (History: Amended by Stats. 2014, Ch. 755, Sec. 76. (SB 1220) Effective January 1, 2015.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The normal retirement age for the Cash Balance Benefit Program is 60 years of age, or 62 years of age for a participant subject to the California Public Employees’ Pension Reform Act of 2013.

history: (History: Amended by Stats. 2013, Ch. 559, Sec. 40. (AB 1381) Effective January 1, 2014. Deemed operative January 1, 2013, by Sec. 1 of Ch. 559.)

title: 1. GENERAL EDUCATION CODE PROVISIONS

chapter: 9. Retirement Benefit

path: 1. GENERAL EDUCATION CODE PROVISIONS > 1. GENERAL EDUCATION CODE PROVISIONS > 14. STATE TEACHERS’ RETIREMENT SYSTEM CASH BENEFIT PROGRAM > 9. Retirement Benefit


text: Except as provided under Section 26802, a participant’s retirement date shall not be earlier than either the date on which the participant attains 55 years of age or the first day of the month in which an application is received at the system’s headquarters office, whichever is later.

history: (History: Amended by Stats. 2020, Ch. 275, Sec. 18. (AB 2101) Effective January 1, 2021.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: Distribution of the retirement benefit under this part shall commence no later than the required beginning date specified in subdivision (c) of Section 26004.

history: (History: Amended by Stats. 1998, Ch. 965, Sec. 273. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) All creditable service subject to coverage by the Cash Balance Benefit Program and the Defined Benefit Program, which does not include retired member activities as defined in Section 22164.5 or retired participant activities as defined in Section 26135.7, shall be terminated prior to the retirement date.

(b) All employers with which the participant is employed to perform creditable service subject to coverage by the plan shall certify in a format prescribed by the system that the participant’s employment has been terminated unless the employment was terminated 12 months or more prior to the participant’s retirement date.

history: (History: Amended by Stats. 2022, Ch. 231, Sec. 3. (AB 1824) Effective January 1, 2023.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
Application for a retirement benefit under this part shall be made on a form prescribed by the system. A participant who files an application for a retirement benefit may change or cancel the retirement application if all of the following are met:

(a) The form provided by the system is received in the system’s headquarters office no later than 30 days from the date of the participant’s initial benefit payment.

(b) The participant returns the total gross distribution amount of all payments for any canceled retirement benefit, including a lump-sum payment being changed to an annuity, to the system’s headquarters office no later than 45 days from the date of the participant’s initial benefit payment. The participant shall be liable for any adverse tax consequences that may result from these actions.

history: (History: Amended by Stats. 2021, Ch. 186, Sec. 5. (SB 634) Effective January 1, 2022.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The retirement benefit under this part is a benefit payable in the event of retirement that is an amount equal to the sum of the employee account and the employer account as of the retirement date.

history: (History: Amended by Stats. 1998, Ch. 965, Sec. 276. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) The normal form of retirement benefit under this part is a lump-sum payment. Upon distribution of the lump-sum payment to the participant, no further benefits shall be payable from the plan with respect to the Cash Balance Benefit Program.

(b) The lump-sum payment in subdivision (a) shall not be payable before 180 calendar days have elapsed following the date of termination of employment.

(c) Except as provided in subdivision (d) or subdivision (e) of Section 26812, the application for the retirement benefit in the form of a lump-sum payment shall be automatically canceled if the participant performs creditable service within 180 calendar days following the date of termination of employment.

(d) Subdivision (c) does not apply if the participant has reached that age at which the Internal Revenue Code of 1986 requires a distribution of benefits. A participant who has reached this age shall receive a distribution commencing on the earlier of the date that the participant has met the conditions of subdivision (b) or the conditions of subdivision (c) of Section 26004.

history: (History: Amended by Stats. 2015, Ch. 123, Sec. 35. (AB 991) Effective January 1, 2016.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) Upon application for a retirement benefit under this part, the participant may elect to receive the retirement benefit in the form of an annuity, provided the sum of the employee account and employer account equals or exceeds three thousand five hundred dollars ($3,500).

(b) If the participant elects to receive the retirement benefit as an annuity, the participant shall elect one of the following forms of payment:

(1) A single life annuity without a cash refund feature. This form of payment is the actuarial equivalent of the amount that would be payable to the participant if the participant elected to receive the retirement benefit in a lump-sum payment. This benefit shall be payable for the life of the participant. Upon the death of the participant, no other benefit shall be payable to any beneficiary under this part.

(2) A single life annuity with a cash refund feature. This form of payment is the actuarial equivalent of the amount that would be payable to the participant if the participant elected to receive the retirement benefit in a lump-sum payment. This benefit shall be payable for the life of the participant and any balance remaining upon the death of the participant shall be payable in a lump sum to the participant’s beneficiary.

(3) A 100-percent joint and survivor annuity with a “pop-up” feature. This form of payment is the actuarial equivalent of the amount that would be payable to the participant if the participant elected to receive the retirement benefit in a lump-sum payment, modified to be payable over the combined lives of the participant and the participant’s annuity beneficiary. Upon the death of the participant, the monthly amount that was payable to the participant shall be paid monthly to the participant’s annuity beneficiary. However, if the annuity beneficiary predeceases the participant, the annuity payable to the participant shall be the single life annuity with a cash refund feature that would have been payable had the participant elected that form of payment at the commencement of the benefit. That single life annuity shall be payable as of the day following the date of the annuity beneficiary’s death upon receipt by the system of proof of the annuity beneficiary’s death. If the annuity beneficiary predeceases the participant, the participant may designate a new annuity beneficiary. The effective date of the new designation shall be six months following the date notification, on a properly executed form, is received by the board, provided both the participant and the new designated annuity beneficiary are then living. The designation of the new annuity beneficiary under this paragraph shall be subject to an actuarial modification of the single life annuity with a cash refund feature and shall not result in any additional liability to the fund. The new annuity beneficiary shall not be an existing annuity beneficiary.

(4) A 50-percent joint and survivor annuity with a “pop-up” feature. This form of payment is the actuarial equivalent of the amount that would be payable to the participant if the participant elected to receive the retirement benefit in a lump-sum payment, modified to be payable over the combined lives of the participant and the participant’s annuity beneficiary. Upon the death of the participant, one-half of the monthly amount that was payable to the participant shall be paid monthly to the participant’s annuity beneficiary. However, if the annuity beneficiary predeceases the participant, the annuity payable to the participant shall be the single life annuity with a cash refund feature that would have been payable had the participant elected that form of payment at the commencement of the benefit. That single life annuity shall be payable as of the day following the date of the annuity beneficiary’s death upon receipt by the system of proof of the annuity beneficiary’s death. If the annuity beneficiary predeceases the participant, the participant may designate a new annuity beneficiary. The effective date of the new designation shall be six months following the date notification, on a properly executed form, is received by the board, provided both the participant and the new designated annuity beneficiary are then living. The designation of the new annuity beneficiary under this paragraph shall be subject to an actuarial modification of the single life annuity with a cash refund feature and shall not result in any additional liability to the fund. The new annuity beneficiary shall not be an existing annuity beneficiary.

(5) A period certain annuity. This form of payment is an annuity equal to the actuarial equivalent of the sum of the balance of the employee account and the employer account on the date the retirement benefit becomes payable. The annuity shall be payable in whole year increments over a period of years specified by the participant, from a minimum of three years to a maximum of 10 years subject to life expectancy tables promulgated pursuant to Section 401(a)(9) of the Internal Revenue Code. If the participant’s death occurs prior to the end of the period certain, the remaining balance of payments shall be paid to the participant’s beneficiary pursuant to Section 27007.

(c) Except as described in subdivision (e) of Section 26807.5, on or after January 1, 2007, a participant may not make a new election of an annuity described in subdivision (b).

(d) Any participant with a retirement effective on or after January 1, 2007, shall elect an annuity from the annuities described in Section 26807.5.

history: (History: Amended by Stats. 2017, Ch. 298, Sec. 23. (AB 1325) Effective January 1, 2018.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) Upon application for a retirement benefit under this part, the participant may elect to receive the retirement benefit as an annuity payable in monthly installments, provided the sum of the employee account and employer account equals or exceeds three thousand five hundred dollars ($3,500). If the participant elects to receive the retirement benefit as an annuity, the participant shall elect one of the following forms of payment:

(1) Participant only annuity. This is a single life annuity with a cash refund feature that is the actuarial equivalent of the amount that would be payable to the participant if the participant elected to receive the retirement benefit in a lump-sum payment. Upon the death of the participant, an amount equal to the remaining balance of the participant’s contributions and interest shall be paid in a lump-sum to the participant’s beneficiary.

(2) One hundred percent beneficiary annuity. This is a joint and survivor annuity that is the actuarial equivalent of the lump-sum payment modified to be payable over the combined lives of the participant and the participant’s annuity beneficiary. Upon the death of the participant, 100 percent of the monthly amount that was payable to the participant shall be paid monthly to the participant’s surviving annuity beneficiary.

(3) Seventy-five percent beneficiary annuity. This is a joint and survivor annuity that is the actuarial equivalent of the lump-sum payment modified to be payable over the combined lives of the participant and the participant’s annuity beneficiary. Pursuant to Section 401(a)(9) of the Internal Revenue Code, unless the annuity beneficiary is the participant’s spouse or former spouse who has been awarded a community property interest in the participant’s benefits under this part, the participant may not designate an annuity beneficiary under this annuity who is more than exactly 19 years younger than the participant. Upon the death of the participant, 75 percent of the monthly amount that was payable to the participant shall be paid monthly to the participant’s surviving annuity beneficiary.

(4) Fifty percent beneficiary annuity. This is a joint and survivor annuity that is the actuarial equivalent of the lump-sum payment modified to be payable over the combined lives of the participant and the participant’s annuity beneficiary. Upon the death of the participant, 50 percent of the monthly amount that was payable to the participant shall be paid monthly to the participant’s surviving annuity beneficiary.

(5) A period certain annuity. This form of payment is an annuity that is equal to the actuarial equivalent of the balance of credits in the participant’s Cash Balance Benefit account on the date the retirement benefit becomes payable. The annuity shall be payable in whole year increments over a period of years specified by the participant, from a minimum of three years to a maximum of 10 years subject to life expectancy tables promulgated pursuant to Section 401(a)(9) of the Internal Revenue Code. If the participant’s death occurs prior to the end of the period certain, the remaining balance of payments shall be paid to the participant’s beneficiary pursuant to Section 27007.

(b) If an annuity beneficiary designated pursuant to paragraph (2), (3), or (4) of subdivision (a) predeceases the participant, the annuity shall be paid to the participant as the participant only annuity described in paragraph (1) of subdivision (a) that would have been payable had the participant elected that form of payment at the commencement of the benefit. That participant only annuity shall be payable as of the day following the date of the annuity beneficiary’s death upon receipt by the system of proof of the annuity beneficiary’s death. If the annuity beneficiary predeceases the participant, the participant may designate a new annuity beneficiary. The effective date of the new designation shall be six months following the date notification is received by the board, provided both the participant and the new designated annuity beneficiary are then living. Notice to the board of the death of the annuity beneficiary shall be on a properly executed form provided by the system. The designation of the new annuity beneficiary under this paragraph is subject to an actuarial modification of the participant only annuity and may not result in any additional liability to the fund.

(c) If a nonparticipant spouse elects to receive the retirement benefit as an annuity, the nonparticipant spouse shall elect the form of payment specified in paragraph (1) or (5) of subdivision (a) and, in those paragraphs, references to a “participant” shall apply to the nonparticipant spouse.

(d) Notwithstanding Section 297 or 299.2 of the Family Code, a spouse as described in paragraph (3) of subdivision (a) does not include the domestic partner of the participant, pursuant to Section 7 of Title 1 of the United States Code.

(e) If there is a determination of community property rights as described in Chapter 15 (commencing with Section 27400) of this part on or before December 31, 2006, the participant may elect the annuity that is required by the judgment or court order. Nothing in this part shall permit the participant to change the annuity to the detriment of the community property interest of the nonparticipant spouse.

history: (History: Amended by Stats. 2017, Ch. 298, Sec. 24. (AB 1325) Effective January 1, 2018.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) A participant who retired and elected an annuity pursuant to Section 26807 may elect to change annuities, subject to all of the following:

(1) A participant who elected a single life annuity with or without a cash refund feature or a period certain annuity may not change his or her annuity.

(2) A participant who elected an annuity under paragraph (3) or (4) of subdivision (b) of Section 26807 may elect an annuity under paragraph (3) of subdivision (a) of Section 26807.5.

(3) The election of the participant under this section is made on or after January 1, 2007, and prior to July 1, 2007.

(4) The participant designates the same annuity beneficiary that was designated under the prior annuity elected by the participant, if the annuity and annuity designation were effective on December 31, 2006.

(5) The annuity beneficiary is not afflicted with a known terminal illness and the participant declares, under penalty of perjury under the laws of this state, that to the best of his or her knowledge, the annuity beneficiary is not afflicted with a known terminal illness.

(6) The annuity beneficiary has not predeceased the participant as of the effective date of the change in the annuity by the participant.

(b) The change in the annuity by the participant shall be effective on the date the election is signed, provided that the election is on a properly executed form provided by the system and that election is received at the system’s headquarters office within 30 days after the date the election is signed.

(c) After receipt of a participant’s election document, the system shall mail an acknowledgment notice to the participant that sets forth the new annuity elected by the participant.

(d) If the participant and the annuity beneficiary are alive and not afflicted with a known terminal illness, a participant may cancel the election to change annuities and elect to receive the benefit according to the preexisting annuity election. After cancellation, the participant may elect to make a one-time change from the preexisting annuity to any other annuity provided by and subject to the restrictions of paragraph (1), (2), (3), or (4) of subdivision (a). The cancellation or the cancellation and one-time change shall be made on a properly executed form provided by the system and shall be received at the system’s headquarters office no later than 30 calendar days following the date of mailing of the acknowledgment notice. If the participant elects to make the one-time change provided by this subdivision, the change shall be effective as of the participant’s signature date on the initial election to change.

(e) If the system is unable to mail an acknowledgment notice to the participant on or before June 1, 2007, or prior to the end of the election period, provided that the participant and the annuity beneficiary are alive and not afflicted with a known terminal illness, the system shall allow a participant to cancel the election to change annuities and elect to receive the benefit according to the preexisting annuity election. After cancellation, the participant may elect to make a one-time change from the preexisting annuity to any other annuity provided by and subject to the restrictions of paragraph (1), (2), (3), or (4) of subdivision (a). The cancellation or the cancellation and one-time change may be made after the end of the election period if it is made on a properly executed form provided by the system and is received at the system’s headquarters office no later than 30 calendar days following the date of mailing of the acknowledgment notice. If the participant elects to make the one-time change provided by this subdivision, the change shall be effective as of the participant’s signature date on the initial election to change.

(f) If the participant elects to change his or her annuity as described in subdivision (a) or (d), the participant’s annuity shall be modified in a manner determined by the board to prevent any additional liability to the plan.

(g) References to a “participant” in paragraph (1) of subdivision (a) shall apply to the nonmember spouse.

(h) The participant shall not change annuities in derogation of a spouse’s or former spouse’s community property rights as specified in a court order.

history: (History: Amended by Stats. 2015, Ch. 123, Sec. 36. (AB 991) Effective January 1, 2016.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) A participant who retired and elected a beneficiary annuity pursuant to Section 26807.5 and designated his or her same-sex spouse or same-sex former spouse as annuity beneficiary may elect to change his or her annuity subject to all of the following:

(1) A participant who elected the 100 percent beneficiary annuity or the 50 percent beneficiary annuity may elect to change his or her beneficiary annuity to the 75 percent beneficiary annuity described in paragraph (3) of subdivision (a) of Section 26807.5, provided the participant’s same-sex spouse or same-sex former spouse is more than exactly 19 years younger than the participant.

(2) The annuity change made by the participant pursuant to this section is made on or after July 1, 2015, and on or before December 31, 2015.

(3) The participant married a same-sex spouse, the marriage is or was recognized by the United States government, any state government, or any foreign government, and his or her same-sex spouse or same-sex former spouse was designated as his or her annuity beneficiary prior to July 1, 2015.

(4) The same-sex spouse or same-sex former spouse is the current annuity beneficiary and remains the annuity beneficiary following the annuity change made pursuant to this section.

(5) The annuity beneficiary has not predeceased the participant as of the effective date of the annuity change made by the participant pursuant to this section.

(b) The annuity change made by a participant pursuant to subdivision (a) shall be deemed effective as of the effective date of the prior annuity election or June 26, 2013, whichever is later.

(c) The annuity change made by the participant pursuant to subdivision (a) shall be on a properly executed form provided by the system subject to the following requirements:

(1) The form is signed and dated by the participant and the participant’s spouse, if applicable, on or after July 1, 2015, and on or before December 31, 2015.

(2) The date the form is received at the system’s headquarters office is within 30 calendar days after the date of the participant’s signature and within 30 calendar days after the date of the spouse’s signature, if applicable.

(d) After receipt of a participant’s election, the system shall mail an acknowledgment notice to the participant that sets forth the new annuity elected by the participant.

(e) A participant may cancel an annuity change made pursuant to subdivision (a) and elect to receive his or her benefit according to his or her prior annuity election provided the requirements of paragraphs (4) and (5) of subdivision (a) are still met. The cancellation shall become effective as of the date of the initial option change pursuant to subdivision (b) subject to the following requirements:

(1) The cancellation is made on a properly executed form provided by the system.

(2) The form includes the signatures of the participant and his or her spouse, if applicable, and the signatures are dated.

(3) The form is received at the system’s headquarters office within 30 calendar days after the date of the acknowledgment notice described in subdivision (d), regardless of whether the form is received after December 31, 2015.

(f) If a participant elects to change his or her annuity pursuant to subdivision (a), the participant’s annuity shall be modified in a manner determined by the board to prevent any additional liability to the plan.

(g) A participant shall not change his or her annuity in derogation of a spouse’s or former spouse’s community property rights as specified in a court order.

history: (History: Added by Stats. 2014, Ch. 755, Sec. 78. (SB 1220) Effective January 1, 2015.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) The annuity elected under this chapter shall be determined as a value actuarially equivalent to the sum of the employee account and the employer account as of the retirement date. The annuity shall be calculated using the age of the participant and, if the participant elected a joint and survivor option, the age of the beneficiary on the retirement date.

(b) In the case of a participant who previously received an annuity that was terminated pursuant to Section 26810, the portion of the annuity derived from the amounts credited to the employee account and employer account as of the date the participant terminates the annuity shall be calculated using the actuarial assumptions in effect on the previous retirement date using the age of the participant and, if the participant elected a joint and survivor option, the age of the beneficiary on the current retirement date.

history: (History: Amended by Stats. 2020, Ch. 275, Sec. 21. (AB 2101) Effective January 1, 2021.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: Upon election of an annuity under this part, the credits in the participant’s employee account and employer account shall be transferred to the Annuitant Reserve.

history: (History: Amended by Stats. 1998, Ch. 965, Sec. 279. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) A participant who is employed to perform creditable service subject to coverage by the Cash Balance Benefit Program while receiving an annuity under the program may terminate the annuity upon written request to the system, effective upon a date designated by the participant, and make contributions to the program based on salary paid by the employer for the employment, subject to the following conditions:

(1) The request for termination of the annuity is filed on a form prescribed by the system, and the form is executed no earlier than six months before the effective date of the termination.

(2) The effective date of the termination of the annuity shall be no earlier than the first day of the month in which the request for termination is received in the system’s headquarters office.

(b) A participant who files a request for termination of the annuity may cancel or change the termination upon written request to the system. The request for cancellation or change must be on a form provided by the system and shall be received in the system’s headquarters office no later than the last day of the month in which the request for termination to be canceled or changed is effective.

(c) Upon termination of the annuity, the employee and employer account of the participant shall be credited with respective balances that reflect the actuarial equivalent of the participant’s retirement benefit as of the date the participant terminates the annuity and the Annuitant Reserve shall be reduced by the amount of the credits.

(d) Upon election of a subsequent annuity, the credits in the participant’s employee account and employer account shall be transferred to the Annuitant Reserve.

history: (History: Amended by Stats. 2020, Ch. 275, Sec. 22. (AB 2101) Effective January 1, 2021.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) Except as provided in subdivision (b), the annuity beneficiary under the joint and survivor annuity elected pursuant to paragraph (3) or (4) of subdivision (b) of Section 26807 or paragraph (2), (3), or (4) of subdivision (a) of Section 26807.5 shall be the person designated by the participant on the application for a retirement benefit under this part, and shall not be changed after the original retirement date unless the beneficiary has predeceased the participant.

(b) (1) A participant may change the annuity beneficiary designated pursuant to this section without penalty by designating a trust as beneficiary if all of the following requirements are met:

(A) The trust conforms to the definition of trust in Section 26105.5.

(B) The beneficiary of the trust is the same person as the previously named annuity beneficiary.

(C) The member files an application and any required documents in a form prescribed by the system.

(2) If a trust is determined to be invalid or terminates after the system commences payment to the trust, beginning on the effective date of termination of the trust, the benefit shall be paid to, and all associated rights and responsibilities shall accrue to, the beneficiary of the trust so long as that beneficiary is eligible to receive a benefit pursuant to this section.

history: (History: Amended by Stats. 2016, Ch. 559, Sec. 15. (AB 1875) Effective January 1, 2017.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) A participant retired for service under this part may perform retired participant activities, but the participant shall not make contributions to the plan or accrue service credit under the Defined Benefit Program based on compensation earned from that service. The employer shall maintain accurate records of the earnings of the retired participant and report those earnings monthly to the system and retired participant.

(b) If a participant is retired for service under this part, the annualized rate of pay for retired participant activities performed by that participant shall not be less than the minimum, nor exceed the maximum, paid by the employer to other employees performing comparable duties.

(c) A participant retired for service under this part shall not be required to reinstate for performing retired participant activities.

(d) (1) If all of the following apply to a participant retired for service under this part, the participant’s annuity shall be reduced by the amount of the compensation:

(A) The participant is receiving an annuity under the Cash Balance Benefit Program.

(B) The participant is below normal retirement age or retired on or after January 1, 2014.

(C) The participant earns compensation paid in cash for performing retired participant activities, excluding reimbursements paid by an employer for expenses incurred by the participant in which payment of the expenses by the participant is substantiated.

(2) The reduction in paragraph (1) shall only be made for compensation paid in cash during the first 180 calendar days after a participant retired for service under this part. The amount of the reduction in an individual month shall be no more than the monthly annuity payable in that month, and the total amount of the reduction shall not exceed the amount of the annuity payable during the first 180 calendar days after a participant retired for service under this part. For written agreements pertaining to the performance of retired participant activities entered into, extended, renewed, or amended on or after January 1, 2014, the reduction in paragraph (1) shall also be made for payments made for the performance of retired participant activities, including, but not limited to, those for participation in a deferred compensation plan; to purchase an annuity contract, tax-deferred retirement plan, or insurance program; and for contributions to a plan that meets the requirements of Section 125, 401(a), 401(k), 403(b), 457(b), or 457(f) of Title 26 of the United States Code when the cost is covered by an employer.

(3) Subject to the limitation described in paragraph (4), if all of the following apply to a participant retired for service under this part, the participant’s application for the retirement benefit shall automatically be canceled:

(A) The participant is anticipated to receive the retirement benefit in the form of a lump-sum payment.

(B) The participant earns compensation for performing creditable service within 180 calendar days following the date of termination of employment.

(4) Paragraph (3) does not apply if the participant has reached that age at which the Internal Revenue Code of 1986 requires a distribution of benefits. A participant who has reached that age shall receive a distribution commencing on the earlier of the date that the participant has met the conditions of subdivision (b) of Section 26806 or the conditions of subdivision (c) of Section 26004.

(e) If the participant has attained normal retirement age at the time the compensation is earned, subdivision (d) shall not apply if the appointment has been approved by the governing body of the employer in a public meeting, as reflected in a resolution adopted by the governing body of the employer prior to the performance of retired participant activities, expressing its intent to seek an exemption from the limitation specified in subdivision (d). Approval of the appointment shall not be placed on a consent calendar. Notwithstanding any other provision of Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code or any state or federal law incorporated by Section 7927.705 of the Government Code, the resolution shall be subject to disclosure by the entity adopting the resolution and the system. The resolution shall include the following specific information and findings:

(1) The nature of the employment.

(2) A finding that the appointment is necessary to fill a critically needed position before 180 calendar days have passed.

(3) A finding that the participant is not ineligible for application of this subdivision pursuant to subdivision (g).

(4) A finding that the termination of employment of the retired participant with the employer is not the basis for the need to acquire the services of the participant.

(f) Subdivision (e) shall not apply to a retired participant whose termination of employment with the employer is the basis for the need to acquire the services of the participant.

(g) Subdivision (e) shall not apply if the participant received additional service credit pursuant to Section 22714 or 22715 or received from any public employer any financial inducement to retire. For purposes of this section, “financial inducement to retire” includes, but is not limited to, any form of compensation or other payment that is paid directly or indirectly by a public employer to the participant, even if not in cash, either before or after retirement, if the participant retires for service on or before a specific date or specific range of dates established by a public employer on or before the date the inducement is offered. The system shall liberally interpret this subdivision to further the Legislature’s intent to make subdivision (e) inapplicable to participants if the participant received a financial incentive from any public employer to retire or otherwise terminate employment with a public employer.

(h) The superintendent, the county superintendent of schools, or the chief executive officer of a community college shall submit all documentation required by the system to substantiate the eligibility of the retired participant for application of subdivision (e), including, but not limited to, the resolution adopted pursuant to that subdivision.

(i) The documentation required by this section shall be received by the system prior to the retired participant’s performance of retired participant activities.

(j) Within 30 calendar days of the receipt of all documentation required by the system pursuant to this section, the system shall inform the entity seeking application of the exemption specified in subdivision (e) and the retired participant whether the compensation paid to the participant will be subject to the limitation specified in subdivision (d).

(k) This section shall become inoperative on July 1, 2024, and shall become operative on July 1, 2026.

history: (History: Amended by Stats. 2023, Ch. 885, Sec. 6. (SB 765) Effective January 1, 2024. Inoperative on July 1, 2024, and will resume operation on July 1, 2026, by its own provisions. See later operative version added by Sec. 7 of Stats. 2023, Ch. 885.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) A participant retired for service under this part may perform retired participant activities, but the participant shall not make contributions to the plan or accrue service credit under the Defined Benefit Program based on compensation earned from that service. The employer shall maintain accurate records of the earnings of the retired participant and report those earnings monthly to the system and retired participant.

(b) If a participant is retired for service under this part, the annualized rate of pay for retired participant activities performed by that participant shall not be less than the minimum, nor exceed the maximum, paid by the employer to other employees performing comparable duties.

(c) A participant retired for service under this part shall not be required to reinstate for performing retired participant activities.

(d) (1) If all of the following apply to a participant retired for service under this part, the participant’s annuity shall be reduced by the amount of the compensation:

(A) The participant is receiving an annuity under the Cash Balance Benefit Program.

(B) The participant is below normal retirement age or retired on or after January 1, 2014.

(C) The participant earns compensation paid in cash for performing retired participant activities, excluding reimbursements paid by an employer for expenses incurred by the participant in which payment of the expenses by the participant is substantiated.

(2) The reduction in paragraph (1) shall only be made for compensation paid in cash during the first 180 calendar days after a participant retired for service under this part. The amount of the reduction in an individual month shall be no more than the monthly annuity payable in that month, and the total amount of the reduction shall not exceed the amount of the annuity payable during the first 180 calendar days after a participant retired for service under this part. For written agreements pertaining to the performance of retired participant activities entered into, extended, renewed, or amended on or after January 1, 2014, the reduction in paragraph (1) shall also be made for payments made for the performance of retired participant activities, including, but not limited to, those for participation in a deferred compensation plan; to purchase an annuity contract, tax-deferred retirement plan, or insurance program; and for contributions to a plan that meets the requirements of Section 125, 401(a), 401(k), 403(b), 457(b), or 457(f) of Title 26 of the United States Code when the cost is covered by an employer.

(3) Subject to the limitation described in paragraph (4), if all of the following apply to a participant retired for service under this part, the participant’s application for the retirement benefit shall automatically be canceled:

(A) The participant is anticipated to receive the retirement benefit in the form of a lump-sum payment.

(B) The participant earns compensation for performing creditable service within 180 calendar days following the date of termination of employment.

(4) Paragraph (3) does not apply if the participant has reached that age at which the Internal Revenue Code of 1986 requires a distribution of benefits. A participant who has reached that age shall receive a distribution commencing on the earlier of the date that the participant has met the conditions of subdivision (b) of Section 26806 or the conditions of subdivision (c) of Section 26004.

(e) Subdivision (d) shall not apply if the Superintendent, the county superintendent of schools, or the chief executive officer of a community college submits a request for exemption to the system with certification, under penalty of perjury, of the following:

(1) The nature of the employment.

(2) That the appointment is necessary to fill a critically needed position before 180 calendar days have passed.

(3) That the participant is not ineligible for application of this subdivision pursuant to subdivision (g).

(4) That the termination of employment of the retired participant with the employer is not the basis for the need to acquire the services of the participant.

(5) That the employer did not have a reduction-in-force layoff pursuant to Section 45117, 44955, or 44955.5, or pursuant to any other similar state law authorizing the termination of its employees, within the prior 18 months.

(f) The Superintendent, a county superintendent of schools, or a chief executive officer of a community college district shall provide a written copy or written copies of the completed documentation required by this section submitted to the system pursuant to subdivision (e) that substantiates the need for the exemption to the exclusive representative of employees prior to the retired participant’s performance of retired participant activities.

(g) Subdivision (e) shall not apply to a retired participant if any of the following conditions exist:

(1) The participant has not attained normal retirement age at the time the compensation is earned.

(2) The participant’s termination of employment with the employer is the basis for the need to acquire the services of the participant.

(3) The participant received additional service credit pursuant to Section 22714 or 22715 or received from any public employer any financial inducement to retire. For purposes of this section, “financial inducement to retire” includes, but is not limited to, any form of compensation or other payment that is paid directly or indirectly by a public employer to the participant, even if not in cash, either before or after retirement, if the participant retires for service on or before a specific date or specific range of dates established by a public employer on or before the date the inducement is offered. The system shall liberally interpret this paragraph to further the Legislature’s intent to make subdivision (e) inapplicable to participants if the participant received a financial incentive from any public employer to retire or otherwise terminate employment with a public employer.

(h) The completed documentation required by this section shall be received by the system prior to the retired participant’s performance of retired participant activities.

(i) Within 30 calendar days of the receipt of all documentation required by the system pursuant to this section, the system shall inform the entity seeking application of the exemption specified in subdivision (e) and the retired participant whether the compensation paid to the participant will be subject to the limitation specified in subdivision (d).

(j) This section shall become operative on July 1, 2024. This section shall become inoperative as of July 1, 2026, and as of January 1, 2027, is repealed.

history: (History: Added by Stats. 2023, Ch. 885, Sec. 7. (SB 765) Effective January 1, 2024. Operative July 1, 2024, by its own provisions. Inoperative July 1, 2026, by its own provisions. Repealed as of January 1, 2027, by its own provisions.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: A member retired for service under the Defined Benefit Program may perform retired participant activities in any one school year up to the limitation specified in Sections 24214 and 24214.5, but the member shall not make contributions to the fund. The employer shall maintain accurate records of the earnings of the retired member and report those earnings monthly to the system and retired member as described in Section 22461.

history: (History: Amended by Stats. 2013, Ch. 559, Sec. 43. (AB 1381) Effective January 1, 2014. Deemed operative January 1, 2013, by Sec. 1 of Ch. 559.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: A participant may apply to receive a disability benefit under this part at any time.

history: (History: Amended by Stats. 1998, Ch. 965, Sec. 282. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS

chapter: 10. Disability Benefit

path: 1. GENERAL EDUCATION CODE PROVISIONS > 1. GENERAL EDUCATION CODE PROVISIONS > 14. STATE TEACHERS’ RETIREMENT SYSTEM CASH BENEFIT PROGRAM > 10. Disability Benefit


text: Application for a disability benefit under this part shall be made by the participant, or the guardian or conservator of the participant, on a form prescribed by the system.

history: (History: Amended by Stats. 1998, Ch. 965, Sec. 283. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) A disability benefit under this part shall become payable only upon determination by the board that the participant has a total and permanent disability. The board shall require current relevant medical reports by licensed practitioners, including the report of the treating physician, and may make any inquiries necessary to the determination of total and permanent disability. Failure of the participant, or the participant’s guardian or conservator, to provide any documents, complete any forms, or respond to any questions from the board within 45 days of the request may be cause for rejection of the application.

(b) Upon determination by the board that the participant does not have a total and permanent disability, the application for disability benefit, and any designation of beneficiary for the benefit, shall be automatically canceled.

history: (History: Amended by Stats. 1998, Ch. 965, Sec. 284. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: All creditable service subject to coverage by the Cash Balance Benefit Program and Defined Benefit Program shall be terminated prior to the disability date.

history: (History: Amended by Stats. 1998, Ch. 965, Sec. 285. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The disability benefit is a benefit for total and permanent disability that is an amount equal to the sum of the employee account and the employer account as of the disability date.

history: (History: Added by Stats. 1995, Ch. 592, Sec. 16. Effective January 1, 1996.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The normal form of disability benefit under this part is a lump-sum payment. Upon distribution of the lump-sum payment to the participant, no further benefits shall be payable from the Cash Balance Benefit Program.

history: (History: Amended by Stats. 1998, Ch. 965, Sec. 286. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) Upon application for a disability benefit under this part, the participant may elect to receive the disability benefit in the form of an annuity provided the sum of the employee account and employer account equals or exceeds three thousand five hundred dollars ($3,500).

(b) If the participant elects to receive the disability benefit as an annuity, the participant shall elect one of the following forms of payment:

(1) A single life annuity without a cash refund feature. This form of payment is the actuarial equivalent of the amount that would be payable to the participant if the participant elected to receive the disability benefit in a lump-sum payment. This benefit shall be payable for the life of the participant. Upon the death of the participant, no other benefit shall be payable to any beneficiary under this part.

(2) A single life annuity with a cash refund feature. This form of payment is the actuarial equivalent of the amount that would be payable to the participant if the participant elected to receive the disability benefit in a lump-sum payment. This benefit shall be payable for the life of the participant and any balance remaining upon the death of the participant shall be payable in a lump sum to the participant’s beneficiary.

(3) A 100-percent joint and survivor annuity with a “pop-up” feature. This form of payment is the actuarial equivalent of the amount that would be payable to the participant if the participant elected to receive the disability benefit in a lump-sum payment, modified to be payable over the combined lives of the participant and the participant’s annuity beneficiary. Upon the death of the participant, the monthly amount that was payable to the participant shall be paid monthly to the participant’s annuity beneficiary. However, if the annuity beneficiary predeceases the participant, the annuity payable to the participant shall be the single life annuity with a cash refund feature that would have been payable had the participant elected that form of payment at the commencement of the benefit. That single life annuity shall be payable as of the day following the date of the annuity beneficiary’s death upon receipt by the system of proof of the annuity beneficiary’s death. If the annuity beneficiary predeceases the participant, the participant may designate a new annuity beneficiary. The effective date of the new designation shall be six months following the date notification, on a properly executed form, is received by the board, provided both the participant and the new designated annuity beneficiary are then living. The designation of the new annuity beneficiary under this paragraph shall be subject to an actuarial modification of the single life annuity with a cash refund feature and shall not result in any additional liability to the fund. The new annuity beneficiary shall not be an existing annuity beneficiary.

(4) A 50-percent joint and survivor annuity with a “pop-up” feature. This form of payment is the actuarial equivalent of the amount that would be payable to the participant if the participant elected to receive the disability benefit in a lump-sum payment, modified to be payable over the combined lives of the participant and the participant’s annuity beneficiary. Upon the death of the participant, one-half of the monthly amount that was payable to the participant shall be paid monthly to the participant’s annuity beneficiary. However, if the annuity beneficiary predeceases the participant, the annuity payable to the participant shall be the single life annuity with a cash refund feature that would have been payable had the participant elected that form of payment at the commencement of the benefit. That single life annuity shall be payable as of the day following the date of the annuity beneficiary’s death upon receipt by the system of proof of the annuity beneficiary’s death. If the annuity beneficiary predeceases the participant, the participant may designate a new annuity beneficiary. The effective date of the new designation shall be six months following the date notification, on a properly executed form, is received by the board, provided both the participant and the new designated annuity beneficiary are then living. The designation of the new annuity beneficiary under this paragraph shall be subject to an actuarial modification of the single life annuity with a cash refund feature and shall not result in any additional liability to the fund. The new annuity beneficiary shall not be an existing annuity beneficiary.

(5) A period certain annuity. This form of payment is an annuity equal to the actuarial equivalent of the sum of balance of the employee account and the employer account on the date the disability benefit becomes payable. The annuity shall be payable in whole year increments over a period of years specified by the participant, from a minimum of three years to a maximum of 10 years subject to life expectancy tables promulgated pursuant to Section 401(a)(9) of the Internal Revenue Code. If the participant’s death occurs prior to the end of the period certain, the remaining balance of payments shall be paid to the participant’s beneficiary pursuant to Section 27007.

(c) Except as described in subdivision (c) of Section 26906.5, on or after January 1, 2007, a participant may not make a new election of an annuity described in subdivision (b).

history: (History: Amended by Stats. 2017, Ch. 298, Sec. 25. (AB 1325) Effective January 1, 2018.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) Upon application for a disability benefit under this part, the participant may elect to receive the disabled benefit in the form of an annuity provided the sum of the employee account and employer account equals or exceeds three thousand five hundred dollars ($3,500). If the participant elects to receive the disability benefit as an annuity, the participant shall elect one of the following forms of payment:

(1) Participant only annuity. This is a single life annuity with a cash refund feature that is the actuarial equivalent of the amount that would be payable to the participant if the participant elected to receive the disability benefit in a lump-sum payment. Upon the death of the participant, an amount equal to the remaining balance of the participant’s contributions and interest shall be paid in a lump sum to the participant’s beneficiary.

(2) One hundred percent beneficiary annuity. This is a joint and survivor annuity that is the actuarial equivalent of the lump-sum payment modified to be payable over the combined lives of the participant and the participant’s annuity beneficiary. Upon the death of the participant, 100 percent of the monthly amount that was payable to the participant shall be paid monthly to the participant’s surviving annuity beneficiary.

(3) Seventy-five percent beneficiary annuity. This is a joint and survivor annuity that is the actuarial equivalent of the lump-sum payment modified to be payable over the combined lives of the participant and the participant’s annuity beneficiary. Pursuant to Section 401(a)(9) of the Internal Revenue Code, unless the annuity beneficiary is the participant’s spouse or former spouse who has been awarded a community property interest in the participant’s benefits under this part, the participant may not designate an annuity beneficiary under this annuity who is more than exactly 19 years younger than the participant. Upon the death of the participant, 75 percent of the monthly amount that was payable to the participant shall be paid monthly to the participant’s surviving annuity beneficiary.

(4) Fifty percent beneficiary annuity. This is a joint and survivor annuity that is the actuarial equivalent of the lump-sum payment modified to be payable over the combined lives of the participant and the participant’s annuity beneficiary. Upon the death of the participant, 50 percent of the monthly amount that was payable to the participant shall be paid monthly to the participant’s surviving annuity beneficiary.

(5) A period certain annuity. This form of payment is an annuity that is equal to the actuarial equivalent of the balance of credits in the participant’s Cash Balance Benefit account on the date the disability benefit becomes payable. The annuity shall be payable in whole year increments over a period of years specified by the participant, from a minimum of three years to a maximum of 10 years subject to life expectancy tables promulgated pursuant to Section 401(a)(9) of the Internal Revenue Code. If the participant’s death occurs prior to the end of the period certain, the remaining balance of payments shall be paid to the participant’s beneficiary pursuant to Section 27007.

(b) If an annuity beneficiary designated pursuant to paragraph (2), (3), or (4) of subdivision (a) predeceases the participant, the annuity shall be paid to the participant as the participant only annuity described in paragraph (1) of subdivision (a) that would have been payable had the participant elected that form of payment at the commencement of the benefit. That participant only annuity shall be payable as of the day following the date of the annuity beneficiary’s death upon receipt by the system of proof of the annuity beneficiary’s death. If the annuity beneficiary predeceases the participant, the participant may designate a new annuity beneficiary. The effective date of the new designation shall be six months following the date notification is received by the board, provided both the participant and the new designated annuity beneficiary are then living. Notice to the board of the death of the annuity beneficiary shall be on a properly executed form provided by the system. The designation of the new annuity beneficiary under this paragraph is subject to an actuarial modification of the participant only annuity and may not result in any additional liability to the fund.

(c) Notwithstanding Section 297 or 299.2 of the Family Code, a spouse as described in paragraph (3) of subdivision (a) does not include the domestic partner of the participant pursuant to Section 7 of Title 1 of the United States Code.

(d) If there is a determination of community property rights as described in Chapter 15 (commencing with Section 27400) of this part on or before December 31, 2006, the participant may elect the annuity that is required by the judgment or court order. Nothing in this part shall permit the participant to change the annuity to the detriment of the community property interest of the nonparticipant spouse.

history: (History: Amended by Stats. 2017, Ch. 298, Sec. 26. (AB 1325) Effective January 1, 2018.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) A participant who is disabled and elected an annuity pursuant to Section 26906 may elect to change annuities, subject to all of the following:

(1) A participant who elected a single life annuity with or without a cash refund feature or a period certain annuity may not change his or her annuity.

(2) A participant who elected an annuity under paragraph (3) or (4) of subdivision (b) of Section 26906 may elect an annuity under paragraph (3) of subdivision (a) of Section 26906.5.

(3) The election by the participant under this section is made on or after January 1, 2007, and prior to July 1, 2007.

(4) The participant designates the same annuity beneficiary that was designated under the prior annuity elected by the participant, if the annuity and the annuity beneficiary designation were effective on December 31, 2006.

(5) The annuity beneficiary is not afflicted with a known terminal illness and the participant declares, under penalty of perjury under the laws of this state, that to the best of his or her knowledge, the annuity beneficiary is not afflicted with a known terminal illness.

(6) The annuity beneficiary has not predeceased the participant as of the effective date of the change in the annuity by the participant.

(b) The change in the annuity by the participant shall be effective on the date the election is signed, provided that the election is on a properly executed form provided by the system and that election is received at the system’s headquarters office within 30 days after the date the election is signed.

(c) After receipt of a participant’s election document, the system shall mail an acknowledgment notice to the participant that sets forth the new annuity elected by the participant.

(d) If the participant and the annuity beneficiary are alive and not afflicted with a known terminal illness, a participant may cancel the election to change annuities and elect to receive the benefit according to the preexisting annuity election. After cancellation, the participant may elect to make a one-time change from the preexisting annuity to any other annuity provided by and subject to the restrictions of paragraph (1), (2), (3), or (4) of subdivision (a). The cancellation or the cancellation and one-time change shall be made on a properly executed form provided by the system and shall be received at the system’s headquarters office no later than 30 calendar days following the date of mailing of the acknowledgment notice. If the participant elects to make the one-time change provided by this subdivision, the change shall be effective as of the participant’s signature date on the initial election to change.

(e) If the system is unable to mail an acknowledgment notice to the participant on or before June 1, 2007, or prior to the end of the election period, provided that the participant and the annuity beneficiary are alive and not afflicted with a known terminal illness, the system shall allow a participant to cancel the election to change annuities and elect to receive the benefit according to the preexisting annuity election. After cancellation, the participant may elect to make a one-time change from the preexisting annuity to any other annuity provided by and subject to the restrictions of paragraph (1), (2), (3), or (4) of subdivision (a). The cancellation or the cancellation and one-time change may be made after the end of the election period if it is made on a properly executed form provided by the system and is received at the system’s headquarters office no later than 30 calendar days following the date of mailing of the acknowledgment notice. If the participant elects to make the one-time change provided by this subdivision, the change shall be effective as of the participant’s signature date on the initial election to change.

(f) If the participant elects to change his or her annuity as described in subdivision (a) or (d), the participant’s annuity shall be modified in a manner determined by the board to prevent any additional liability to the plan.

(g) The participant shall not change annuities in derogation of a spouse’s or former spouse’s community property rights as specified in a court order.

history: (History: Amended by Stats. 2015, Ch. 123, Sec. 38. (AB 991) Effective January 1, 2016.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The annuity under this chapter shall be determined as a value actuarially equivalent to the sum of the employee account and the employer account as of the disability date. The annuity shall be calculated using the age of the participant and, if the participant elected a joint and survivor option, the age of the beneficiary on the disability date.

title: 1. GENERAL EDUCATION CODE PROVISIONS


history: (History: Amended by Stats. 1998, Ch. 965, Sec. 288. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) Except as provided in subdivision (b), the beneficiary under the joint and survivor option elected pursuant to paragraph (3) or (4) of subdivision (b) of Section 26906 or paragraph (2), (3), or (4) of subdivision (a) of Section 26906.5 shall be the person or trust designated by the participant on the application for a disability benefit under this part, and shall not be changed after the original disability date unless the beneficiary has predeceased the participant.

(b) (1) A participant may change the annuity beneficiary designated pursuant to this section without penalty by designating a trust as beneficiary if all of the following requirements are met:

(A) The trust conforms to the definition of trust in Section 26105.5.

(B) The beneficiary of the trust is the same person as the previously named annuity beneficiary.

(C) The member files an application and any required documents in a form prescribed by the system.

(2) If a trust is determined to be invalid or terminates after the system commences payment to the trust, beginning on the effective date of termination of the trust, the benefit shall be paid to, and all associated rights and responsibilities shall accrue to, the beneficiary of the trust so long as that beneficiary is eligible to receive a benefit pursuant to this section.

history: (History: Amended by Stats. 2016, Ch. 559, Sec. 16. (AB 1875) Effective January 1, 2017.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: If a participant who is receiving a disability annuity under this part becomes reemployed to perform creditable service subject to coverage by the Cash Balance Benefit Program or the Defined Benefit Program, the disability annuity shall be terminated. The participant’s employee account and employer account shall be credited with the actuarial equivalent of the participant’s annuity as of the date of reemployment and the Annuitant Reserve shall be reduced by the amount credited to those accounts.

history: (History: Amended by Stats. 2013, Ch. 558, Sec. 55. (AB 1379) Effective January 1, 2014.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The death benefit shall become payable to the beneficiary upon receipt of proof of the participant’s death.

title: 1. GENERAL EDUCATION CODE PROVISIONS

chapter: 11. Death Benefit

path: 1. GENERAL EDUCATION CODE PROVISIONS > 1. GENERAL EDUCATION CODE PROVISIONS > 14. STATE TEACHERS’ RETIREMENT SYSTEM CASH BENEFIT PROGRAM > 11. Death Benefit


text: Notwithstanding Chapter 3 (commencing with Section 13100) of Part 1 of Division 8 of the Probate Code or any other provision of law to the contrary, the death benefit payable under the Cash Balance Benefit Program may be requested by the beneficiary and paid by the system as soon as practicable after the system receives proof of the participant’s death.

history: (History: Amended by Stats. 2017, Ch. 298, Sec. 27. (AB 1325) Effective January 1, 2018.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: If the participant died prior to commencement of an annuity, the death benefit shall be an amount that is equal to the sum of the participant’s employee account and employer account.

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The normal form of death benefit under this part is a lump-sum payment. Upon distribution of the lump-sum payment to the beneficiary, no further benefits shall be payable from the plan with respect to the Cash Balance Benefit Program.

history: (History: Amended by Stats. 1998, Ch. 965, Sec. 291. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) A beneficiary, other than an entity except a trust as defined in Section 26106.5, may elect to receive the final benefit payable under the Cash Balance Benefit Program as an annuity payable in monthly installments provided that the sum of the employee account and the employer account that is payable to the beneficiary equals at least three thousand five hundred dollars ($3,500).

(b) A beneficiary who elects to receive an annuity pursuant to this section shall elect a period certain annuity. This form of payment is an annuity equal to the actuarial equivalent of the sum of the balance of the employee account and the employer account on the date of the participant’s death. The annuity shall be payable in whole year increments over a period of years specified by the beneficiary, from a minimum of three years to a maximum of 10 years. However, the annuity period shall not exceed the life expectancy of the beneficiary of the trust that is beneficiary with respect to the trust’s interest in the plan.

(c) The beneficiary may designate a payee to receive the remaining balance of payments if the beneficiary dies prior to the end of the period certain. Unless otherwise specified in the trust instrument, the trustee or beneficiary of the trust that is an annuity beneficiary is entitled to name a subsequent beneficiary if the trust is valid. If the trust is determined to be invalid or terminated, any election by the trustee pursuant to this subdivision shall be void and the beneficiary shall be entitled to exercise all rights provided to annuity beneficiaries under this part.

history: (History: Amended by Stats. 2016, Ch. 559, Sec. 17. (AB 1875) Effective January 1, 2017.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The annuity elected under this chapter shall be determined as a value actuarially equivalent to the sum of the participant’s employee account and employer account as of the date the death benefit becomes payable. The annuity shall be calculated using the age of the beneficiary on the date the benefit becomes payable.

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: Upon the beneficiary’s election to receive the death benefit under this part in the form of an annuity, the credits in the participant’s employee account and employer account shall be transferred to the Annuitant Reserve.

history: (History: Amended by Stats. 1998, Ch. 965, Sec. 292. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS