21450. This system shall provide to any member who requests
materials relating to retirement, a written explanation of the
effects, if any, of each possible decision relating to the selection
of optional settlements, beneficiaries, and survivor benefits upon
health benefits that are provided pursuant to Part 5 (commencing with
Section 22750).
21451. In lieu of the retirement allowance for his or her life
alone, a member or retired member may elect, or revoke or change a
previous election prior to the approval of the previous election, to
have the actuarial equivalent of his or her retirement allowance as
of the date of retirement applied to a lesser retirement allowance,
in accordance with one of the optional settlements specified in this
article. The election or revocation or change thereof, with respect
to a member subject to Section 21624 at retirement, shall apply to
all of the retirement allowance, if, at the effective date of
retirement, the member has no spouse, children or dependent parents
who would qualify for an allowance under Section 21624 after the
death of the member; or, if at retirement there are persons who would
so qualify, then the election, or revocation, or change thereof,
with respect to any optional settlement other than optional
settlement one, shall apply only to the portion of the allowance that
exceeds the amount of the allowance payable to the survivor.
An actuarial equivalent under this article may be adjusted by the
board for the intervals and upon the effective dates determined by
the board.
21452. The lesser retirement allowance under an optional settlement
elected at retirement for law enforcement members whose retirement
is effective prior to October 1, 1965, and who are entitled to
receive benefits under the federal system, shall be actuarially
equivalent to that part of the retirement allowance that is subject
to option pursuant to Section 21451 that would have been payable at
retirement had no optional settlement been elected after taking into
consideration the reduction in the allowance provided for in former
Section 21252.10, as amended by Chapter 1657 of the Statutes of 1971.
Upon the election of an optional settlement by a member who has not
attained the federal retirement age the board shall estimate the
federal benefit upon the basis of information then available to it.
If the death of the member should occur before he or she has attained
the federal retirement age payments under the optional settlement
elected shall be as estimated. If the member attains the federal
retirement age, the board shall then recalculate the lesser
retirement allowance payable under the optional settlement upon the
basis of the age of the member and the beneficiary on the effective
date of retirement, actuarial tables then in use and the federal
benefit.
21453. An election, revocation, or change of election shall be made
prior to the making of the first payment on account of any
retirement allowance or, in event of a change of retirement status
after retirement, prior to the making of the first payment on account
of any retirement allowance following the change in retirement
status. "Change in retirement status" includes, but is not limited
to, change from service to disability retirement, from disability
retirement to service retirement, from nonindustrial disability
retirement to industrial disability retirement, or from industrial to
nonindustrial disability retirement.
For purposes of this section, payment shall be deemed to have been
made on the date a warrant is mailed, or the date funds are
electronically transferred to a bank, savings and loan association,
or credit union account for deposit in the member's account.
This section shall not be construed to authorize a member to
change his or her retirement status after the mailing of the first
retirement warrant following the election, revocation, or change of
election provided in this section.
21454. Notwithstanding Section 21453, an election of optional
settlement 2 or 3, or optional settlement 4 involving life
contingency in which a spouse is designated as the beneficiary, may
be modified as provided in this section in the event of a dissolution
or annulment of the marriage or a legal separation in which the
division of the community property awards the total interest in the
retirement system to the retired member. The modification shall
provide that payment shall be continued during the retired person's
lifetime in accordance with the optional settlement then in effect
but that no monthly allowance shall be paid following the retired
person's death, and in lieu thereof there shall be paid in a lump sum
to the member's estate or a beneficiary designated by him or her the
amount, if any, by which the member's accumulated contributions at
retirement exceed the total payments made to the retired person to
the date of his or her death.
21455. Optional settlement 1 consists of the right to have a
retirement allowance paid him or her until his or her death and if he
or she dies before he or she receives in annuity payments the amount
of his or her accumulated contributions at retirement, to have the
balance at death paid to his or her beneficiary or estate.
21456. Optional settlement 2 consists of the right to have a
retirement allowance paid a member until his or her death and
thereafter to his or her beneficiary for life.
If the beneficiary predeceases the member and the member elected
this section to be effective on or after January 1, 1990, the member'
s allowance shall be adjusted effective the first of the month
following the death of the beneficiary, to reflect the benefit that
would have been paid had the member not selected an optional
settlement.
If a nonspouse beneficiary waives entitlement to this allowance
and the member elected this section to be effective on or after
January 1, 1993, the member's allowance shall be adjusted effective
the first of the month following the receipt of the waiver of the
allowance entitlement from the nonspouse beneficiary to reflect the
benefit that would have been paid had the member not selected an
optional settlement.
If the marriage of a member is dissolved or annulled or there is a
legal separation between the member and the beneficiary spouse and
the judgment dividing the community property awards the total
interest in this system to the member, and the member elects this
section to be effective on or after January 1, 1994, the member's
allowance shall be adjusted effective the first of the month
following the filing of the judgment with the board to reflect the
benefit that would have been paid had the member not selected an
optional settlement.
If the beneficiary spouse predeceases the member on or after
January 1, 1990, and the member elected this section to be effective
prior to January 1, 1990, the member's allowance shall be adjusted
effective the first of the month following the death of the
beneficiary spouse to reflect a new allowance as calculated below.
If the nonspouse beneficiary waives entitlement to this allowance
on or after January 1, 1993, and the member elected this section to
be effective prior to January 1, 1993, the member's allowance shall
be adjusted, effective the first of the month following receipt by
the board of the waiver of entitlement from the nonspouse
beneficiary, to reflect a new allowance as calculated below.
If the marriage of a member is dissolved or annulled or there is a
legal separation between the member and the beneficiary spouse and
the judgment dividing the community property awards the total
interest in the retirement system to the member, and the member
elected this section to be effective prior to January 1, 1994, the
member's allowance shall be adjusted, effective the first of the
month following the filing of the judgment with the board to reflect
a new allowance as calculated below. The qualifying event shall be
the date on which the judgment is filed with the board.
A percentage factor shall be applied to the difference between the
member's unmodified allowance and optional settlement 2 allowance,
both of which shall include applicable cost-of-living increases. The
product of this equation shall then be added to the member's optional
settlement 2 allowance and the total amount shall become the member'
s base allowance. The percentage factor applicable to each member
shall be determined by the time between the member's retirement
effective date and the date of death of the beneficiary spouse or by
the time between the member's retirement effective date and the date
of the receipt of either the waiver of the allowance entitlement or
the judgment of dissolution, annulment, or legal separation according
to the following table:
Period between the
member's retirement
effective date and the
date of the qualifying
event Percentage
Less than 12 months 95%
12 months through 23 months 85%
24 months through 35 months 75%
36 months through 47 months 65%
48 months through 59 months 55%
60 months through 71 months 45%
72 months through 83 months 35%
84 months through 95 months 25%
96 months through 107 15%
months
108 months through 119 5%
months
120 months or more 0%
Nothing in this section shall result in additional cost to the
employer.
21457. Optional settlement 3 consists of the right to have a
retirement allowance paid a member until his or her death, and
thereafter to have one-half of his or her retirement allowance paid
to his or her beneficiary for life.
If the beneficiary predeceases the member and the member elected
this section to be effective on or after January 1, 1990, the member'
s allowance shall be adjusted effective the first of the month
following the death of the beneficiary, to reflect the benefit that
would have been paid had the member not selected an optional
settlement.
If the marriage of a member is dissolved or annulled or there is a
legal separation between the member and the beneficiary spouse and
the judgment dividing the community property awards the total
interest in this system to the member, and the member elects this
section to be effective on or after January 1, 1994, the member's
allowance shall be adjusted effective the first of the month
following the filing of the judgment with the board to reflect the
benefit that would have been paid had the member not selected an
optional settlement.
If a nonspouse beneficiary waives entitlement to this allowance
and the member elected this section to be effective on or after
January 1, 1993, the member's allowance shall be adjusted, effective
the first of the month following the receipt of the waiver of the
allowance entitlement from the nonspouse beneficiary, to reflect the
benefit that would have been paid had the member not selected an
optional settlement.
If the beneficiary spouse predeceases the member on or after
January 1, 1990, and the member elected this section to be effective
prior to January 1, 1990, the member's allowance shall be adjusted
effective the first of the month following the death of the
beneficiary spouse to reflect a new allowance as calculated below.
If the marriage of a member is dissolved or annulled or there is a
legal separation between the member and the beneficiary spouse and
the judgment dividing the community property awards the total
interest in the retirement system to the member, and the member
elected this section to be effective prior to January 1, 1994, the
member's allowance shall be adjusted, effective the first of the
month following the filing of the judgment with the board to reflect
a new allowance as calculated below. The qualifying event shall be
the date on which the judgment is filed with the board.
If the nonspouse beneficiary waives entitlement to this allowance
on or after January 1, 1993, and the member elected this section to
be effective prior to January 1, 1993, the member's allowance shall
be adjusted, effective the first of the month following receipt by
the board of the waiver of entitlement from the nonspouse
beneficiary, to reflect a new allowance as calculated below.
A percentage factor shall be applied to the difference between the
member's unmodified allowance and optional settlement 3 allowance,
both of which shall include applicable cost-of-living increases. The
product of this equation shall then be added to the member's optional
settlement 3 allowance and the total amount shall become the member'
s base allowance. The percentage factor applicable to each member
shall be determined by the time between the member's retirement
effective date and the date of death of the beneficiary spouse or by
the time between the member's retirement effective date and the date
of the receipt of either the waiver of the allowance entitlement or
the judgment of dissolution, annulment, or legal separation according
to the following table:
Period between the
member's retirement
effective date and the
date of the qualifying
event Percentage
Less than 12 months 95%
12 months through 23 months 85%
24 months through 35 months 75%
36 months through 47 months 65%
48 months through 59 months 55%
60 months through 71 months 45%
72 months through 83 months 35%
84 months through 95 months 25%
96 months through 107 15%
months
108 months through 119 5%
months
120 months or more 0%
Nothing in this section shall result in additional cost to the
employer.
21458. Optional settlement 4 consists of such other benefits as are
the actuarial equivalent of a member's retirement allowance, that he
or she may select subject to the approval of the board. However, the
actuarial equivalent of benefits under this optional settlement
payable to the member's beneficiary shall not exceed the actuarial
equivalent of the benefits which would be payable to that beneficiary
if the member had elected optional settlement 2 and Section 21459.
The board shall include in each member benefit booklet a specific
illustration of the benefits available under optional settlement 4.
21459. A member who elects to receive optional settlement 2 or 3
may concurrently and irrevocably elect to waive the provision for an
increase to his or her allowance due to the death of his or her
beneficiary and shall, instead, have his or her allowance based upon
the waiver of this benefit.
21460. A member who elects to receive the unmodified allowance or
optional settlement 1, or optional settlement 2, 3, or 4 with or
without making the election specified in Section 21459, and who names
his or her spouse as the option beneficiary, and whose spouse is
also an eligible survivor for the benefits provided by Section 21624,
21626, 21627, 21628, 21629, or 21630, and where the total benefit to
the surviving spouse is at least 50 percent of the member's
unmodified allowance, may concurrently and irrevocably elect to have
his or her allowance paid as a "qualified joint and survivor annuity."
Notwithstanding any other provision of this part, upon the election,
the survivor allowance shall be paid only to the member's spouse and
shall continue to be paid upon the remarriage of the spouse. Any
cost due to this election shall be paid by the member through an
actuarial reduction to his or her allowance.
For purposes of this section, a member's retirement allowance
shall be determined without regard to any limitation required
pursuant to Section 415 of Title 26 of the United States Code but the
amount payable to the spouse shall be subject to those limits as if
it were the retirement allowance of the member.
21461. (a) A member retiring for service may elect to have the
actuarial equivalent of his or her unmodified service retirement
allowance paid in two parts as follows:
(1) A temporary annuity in an amount specified by the member but
which shall not result in a reduction to his or her unmodified
allowance by more than 50 percent.
(2) A life income consisting of his or her service retirement
annuity plus the pension provided by the actuarial value of his or
her current and prior service pensions remaining after providing the
temporary annuity in paragraph (1).
(b) The temporary annuity under subdivision (a) shall not be
subject to further optional settlement under this article and shall
be payable monthly as an addition to the member's monthly life income
beginning on his or her effective date of retirement and continuing
until the member reaches age 59 1/2 or any whole age between ages 60
and 68, as designated by the member at the time of his or her
retirement. If his or her death occurs prior to that age, the
commuted value of any remaining installments shall be paid to his or
her designated beneficiary in a lump sum.
21461.5. (a) Notwithstanding Section 21461, a member retiring for
service who became a member of the system on or after January 1,
2002, and who is covered under the federal system but is not yet
receiving a retirement or disability benefit under that system, may
elect to have the actuarial equivalent of his or her unmodified
service retirement allowance paid in two parts as follows:
(1) A temporary annuity that shall not exceed the primary social
security benefit that is anticipated the member shall be entitled to
receive at social security retirement age, which age shall be
designated by the member.
(2) A life income consisting of the member's service retirement
annuity plus the pension provided by the actuarial value of the
member's current and prior service pensions remaining after providing
the temporary annuity in paragraph (1).
(b) The temporary annuity under paragraph (1) of subdivision (a)
shall not be subject to further optional settlement under this
article and shall be payable monthly as an addition to the member's
monthly life income beginning on the member's effective date of
retirement and continuing until the retired member attains the age
designated by the member under subdivision (a). If the member dies
prior to the designated age, the commuted value of any installments
payable for the period remaining until the member would have attained
that age shall be paid to the member's designated beneficiary in a
lump sum.
21462. Notwithstanding any other provision of this part, a member
who elected to receive optional settlement 2, 3, or 4, involving a
life contingency of the beneficiary, may, if the beneficiary
predeceases the member or if the member marries and the former spouse
was not named as beneficiary, or, if a former spouse was named, in
the event of a dissolution or annulment of the marriage or a legal
separation in which the judgment dividing the community property
awards the total interest in the retirement system to the retired
member, elect to have the actuarial equivalent reflecting any
selection against the fund resulting from the election as of the date
of election of the allowance payable for the remainder of the member'
s lifetime under the optional settlement previously chosen applied to
a lesser allowance during the member's remaining lifetime under one
of the optional settlements specified in this article and name a
different beneficiary. The election shall be made within 12 months
following the death of the beneficiary who predeceased the member or
within 12 months of the date of entry of the judgment dividing the
community property of the parties, or within 12 months following
marriage if the spouse is named as beneficiary. The election shall
become effective on the date specified on the election, provided that
this date is not earlier than the day following receipt of the
election in this system pursuant to this section.
A member who has a qualifying event prior to January 1, 1988, and
who fails to elect by January 1, 1989, or a member who has a
qualifying event on or after January 1, 1988, and who fails to elect
within 12 months, shall retain the right to make an election under
this section. However, this election shall become effective no
earlier than 12 months after the date it is filed with the board,
provided that neither the member nor the designated beneficiary die
prior to the effective date of the election.
This section shall not be construed to mean that designation of a
new beneficiary causes the selection of an optional settlement. An
optional settlement shall be selected by a member in a writing filed
by the member with the board.
21463. A member who elected to receive optional settlement 2 or 3
and whose beneficiary predeceases him or her, shall be entitled to
receive the increased allowance pursuant to Section 21456 or Section
21457, as applicable, unless the member elected to waive the
provision for an increase to his or her allowance pursuant to Section
21459.
21464. Notwithstanding any provision of this part, a retired member
who chose no optional settlement or optional settlement 1 at
retirement may elect to have the actuarial equivalent, as of the date
of the election, of the allowance payable for the remainder of his
or her lifetime applied to a lesser allowance during his or her
remaining lifetime under one of the optional settlements specified in
this article and name his or her spouse as beneficiary.
The election provided by this section is irrevocable and shall be
made within 12 months following a member's marriage if the spouse is
named as beneficiary. The election shall become effective on the date
specified on the election, provided that this date is not earlier
than the day following receipt of the election in this system
pursuant to this section.
A member who married prior to or after January 1, 1988, who fails
to elect within 12 months, shall retain the right to make an election
under this section. However, the election shall become effective no
earlier than 12 months after the date it is filed with the board,
provided that neither the member nor the designated beneficiary die
prior to the effective date of the election.
This section shall not be construed to mean that designation of a
new beneficiary causes the selection of an optional settlement. An
optional settlement shall be selected by a member in a writing filed
by the member with the board.
21465. (a) Optional settlement 5 consists of a partial distribution
of the actuarial present value of the portion, as specified in this
section, of the member's unmodified monthly allowance, as prescribed
in Section 21362, 21362.2, 21363, 21363.1, 21363.4, or 21423, when a
service retirement allowance is payable. The actuarial present value
shall be based upon the investment return and postretirement
mortality assumptions adopted by the board for that purpose. The
member may elect to receive the actuarial present value of no less
than 20 percent and no more than 50 percent of his or her unmodified
allowance. The member may elect to receive the remaining portion of
the unmodified allowance, not distributed as a lump-sum payment,
under one of the settlements specified in this article for the
remainder of his or her lifetime and thereafter to his or her
designated beneficiary, unless this amount is solely limited to the
survivor continuance portion. The portion of the unmodified allowance
equivalent to the survivor continuance pursuant to Section 21624 may
not be distributed as a lump-sum payment. The benefits provided
under this section may not exceed the benefits that would have
otherwise been provided under any other section in this article.
(b) This section shall only apply to the following members who
retire on or after January 1, 1999:
(1) State peace officer/firefighter members in State Bargaining
Unit 6.
(2) State peace officer/firefighter members in State Bargaining
Unit 8 and state patrol members in State Bargaining Unit 5, if a
memorandum of understanding has been agreed upon by the state and the
recognized employee organization to become subject to this section.
(3) This section shall also apply to state peace
officer/firefighter members and state patrol members in related
supervisory and confidential positions, if the Department of
Personnel Administration has approved their inclusion.
21450. This system shall provide to any member who requests
materials relating to retirement, a written explanation of the
effects, if any, of each possible decision relating to the selection
of optional settlements, beneficiaries, and survivor benefits upon
health benefits that are provided pursuant to Part 5 (commencing with
Section 22750).
21451. In lieu of the retirement allowance for his or her life
alone, a member or retired member may elect, or revoke or change a
previous election prior to the approval of the previous election, to
have the actuarial equivalent of his or her retirement allowance as
of the date of retirement applied to a lesser retirement allowance,
in accordance with one of the optional settlements specified in this
article. The election or revocation or change thereof, with respect
to a member subject to Section 21624 at retirement, shall apply to
all of the retirement allowance, if, at the effective date of
retirement, the member has no spouse, children or dependent parents
who would qualify for an allowance under Section 21624 after the
death of the member; or, if at retirement there are persons who would
so qualify, then the election, or revocation, or change thereof,
with respect to any optional settlement other than optional
settlement one, shall apply only to the portion of the allowance that
exceeds the amount of the allowance payable to the survivor.
An actuarial equivalent under this article may be adjusted by the
board for the intervals and upon the effective dates determined by
the board.
21452. The lesser retirement allowance under an optional settlement
elected at retirement for law enforcement members whose retirement
is effective prior to October 1, 1965, and who are entitled to
receive benefits under the federal system, shall be actuarially
equivalent to that part of the retirement allowance that is subject
to option pursuant to Section 21451 that would have been payable at
retirement had no optional settlement been elected after taking into
consideration the reduction in the allowance provided for in former
Section 21252.10, as amended by Chapter 1657 of the Statutes of 1971.
Upon the election of an optional settlement by a member who has not
attained the federal retirement age the board shall estimate the
federal benefit upon the basis of information then available to it.
If the death of the member should occur before he or she has attained
the federal retirement age payments under the optional settlement
elected shall be as estimated. If the member attains the federal
retirement age, the board shall then recalculate the lesser
retirement allowance payable under the optional settlement upon the
basis of the age of the member and the beneficiary on the effective
date of retirement, actuarial tables then in use and the federal
benefit.
21453. An election, revocation, or change of election shall be made
prior to the making of the first payment on account of any
retirement allowance or, in event of a change of retirement status
after retirement, prior to the making of the first payment on account
of any retirement allowance following the change in retirement
status. "Change in retirement status" includes, but is not limited
to, change from service to disability retirement, from disability
retirement to service retirement, from nonindustrial disability
retirement to industrial disability retirement, or from industrial to
nonindustrial disability retirement.
For purposes of this section, payment shall be deemed to have been
made on the date a warrant is mailed, or the date funds are
electronically transferred to a bank, savings and loan association,
or credit union account for deposit in the member's account.
This section shall not be construed to authorize a member to
change his or her retirement status after the mailing of the first
retirement warrant following the election, revocation, or change of
election provided in this section.
21454. Notwithstanding Section 21453, an election of optional
settlement 2 or 3, or optional settlement 4 involving life
contingency in which a spouse is designated as the beneficiary, may
be modified as provided in this section in the event of a dissolution
or annulment of the marriage or a legal separation in which the
division of the community property awards the total interest in the
retirement system to the retired member. The modification shall
provide that payment shall be continued during the retired person's
lifetime in accordance with the optional settlement then in effect
but that no monthly allowance shall be paid following the retired
person's death, and in lieu thereof there shall be paid in a lump sum
to the member's estate or a beneficiary designated by him or her the
amount, if any, by which the member's accumulated contributions at
retirement exceed the total payments made to the retired person to
the date of his or her death.
21455. Optional settlement 1 consists of the right to have a
retirement allowance paid him or her until his or her death and if he
or she dies before he or she receives in annuity payments the amount
of his or her accumulated contributions at retirement, to have the
balance at death paid to his or her beneficiary or estate.
21456. Optional settlement 2 consists of the right to have a
retirement allowance paid a member until his or her death and
thereafter to his or her beneficiary for life.
If the beneficiary predeceases the member and the member elected
this section to be effective on or after January 1, 1990, the member'
s allowance shall be adjusted effective the first of the month
following the death of the beneficiary, to reflect the benefit that
would have been paid had the member not selected an optional
settlement.
If a nonspouse beneficiary waives entitlement to this allowance
and the member elected this section to be effective on or after
January 1, 1993, the member's allowance shall be adjusted effective
the first of the month following the receipt of the waiver of the
allowance entitlement from the nonspouse beneficiary to reflect the
benefit that would have been paid had the member not selected an
optional settlement.
If the marriage of a member is dissolved or annulled or there is a
legal separation between the member and the beneficiary spouse and
the judgment dividing the community property awards the total
interest in this system to the member, and the member elects this
section to be effective on or after January 1, 1994, the member's
allowance shall be adjusted effective the first of the month
following the filing of the judgment with the board to reflect the
benefit that would have been paid had the member not selected an
optional settlement.
If the beneficiary spouse predeceases the member on or after
January 1, 1990, and the member elected this section to be effective
prior to January 1, 1990, the member's allowance shall be adjusted
effective the first of the month following the death of the
beneficiary spouse to reflect a new allowance as calculated below.
If the nonspouse beneficiary waives entitlement to this allowance
on or after January 1, 1993, and the member elected this section to
be effective prior to January 1, 1993, the member's allowance shall
be adjusted, effective the first of the month following receipt by
the board of the waiver of entitlement from the nonspouse
beneficiary, to reflect a new allowance as calculated below.
If the marriage of a member is dissolved or annulled or there is a
legal separation between the member and the beneficiary spouse and
the judgment dividing the community property awards the total
interest in the retirement system to the member, and the member
elected this section to be effective prior to January 1, 1994, the
member's allowance shall be adjusted, effective the first of the
month following the filing of the judgment with the board to reflect
a new allowance as calculated below. The qualifying event shall be
the date on which the judgment is filed with the board.
A percentage factor shall be applied to the difference between the
member's unmodified allowance and optional settlement 2 allowance,
both of which shall include applicable cost-of-living increases. The
product of this equation shall then be added to the member's optional
settlement 2 allowance and the total amount shall become the member'
s base allowance. The percentage factor applicable to each member
shall be determined by the time between the member's retirement
effective date and the date of death of the beneficiary spouse or by
the time between the member's retirement effective date and the date
of the receipt of either the waiver of the allowance entitlement or
the judgment of dissolution, annulment, or legal separation according
to the following table:
Period between the
member's retirement
effective date and the
date of the qualifying
event Percentage
Less than 12 months 95%
12 months through 23 months 85%
24 months through 35 months 75%
36 months through 47 months 65%
48 months through 59 months 55%
60 months through 71 months 45%
72 months through 83 months 35%
84 months through 95 months 25%
96 months through 107 15%
months
108 months through 119 5%
months
120 months or more 0%
Nothing in this section shall result in additional cost to the
employer.
21457. Optional settlement 3 consists of the right to have a
retirement allowance paid a member until his or her death, and
thereafter to have one-half of his or her retirement allowance paid
to his or her beneficiary for life.
If the beneficiary predeceases the member and the member elected
this section to be effective on or after January 1, 1990, the member'
s allowance shall be adjusted effective the first of the month
following the death of the beneficiary, to reflect the benefit that
would have been paid had the member not selected an optional
settlement.
If the marriage of a member is dissolved or annulled or there is a
legal separation between the member and the beneficiary spouse and
the judgment dividing the community property awards the total
interest in this system to the member, and the member elects this
section to be effective on or after January 1, 1994, the member's
allowance shall be adjusted effective the first of the month
following the filing of the judgment with the board to reflect the
benefit that would have been paid had the member not selected an
optional settlement.
If a nonspouse beneficiary waives entitlement to this allowance
and the member elected this section to be effective on or after
January 1, 1993, the member's allowance shall be adjusted, effective
the first of the month following the receipt of the waiver of the
allowance entitlement from the nonspouse beneficiary, to reflect the
benefit that would have been paid had the member not selected an
optional settlement.
If the beneficiary spouse predeceases the member on or after
January 1, 1990, and the member elected this section to be effective
prior to January 1, 1990, the member's allowance shall be adjusted
effective the first of the month following the death of the
beneficiary spouse to reflect a new allowance as calculated below.
If the marriage of a member is dissolved or annulled or there is a
legal separation between the member and the beneficiary spouse and
the judgment dividing the community property awards the total
interest in the retirement system to the member, and the member
elected this section to be effective prior to January 1, 1994, the
member's allowance shall be adjusted, effective the first of the
month following the filing of the judgment with the board to reflect
a new allowance as calculated below. The qualifying event shall be
the date on which the judgment is filed with the board.
If the nonspouse beneficiary waives entitlement to this allowance
on or after January 1, 1993, and the member elected this section to
be effective prior to January 1, 1993, the member's allowance shall
be adjusted, effective the first of the month following receipt by
the board of the waiver of entitlement from the nonspouse
beneficiary, to reflect a new allowance as calculated below.
A percentage factor shall be applied to the difference between the
member's unmodified allowance and optional settlement 3 allowance,
both of which shall include applicable cost-of-living increases. The
product of this equation shall then be added to the member's optional
settlement 3 allowance and the total amount shall become the member'
s base allowance. The percentage factor applicable to each member
shall be determined by the time between the member's retirement
effective date and the date of death of the beneficiary spouse or by
the time between the member's retirement effective date and the date
of the receipt of either the waiver of the allowance entitlement or
the judgment of dissolution, annulment, or legal separation according
to the following table:
Period between the
member's retirement
effective date and the
date of the qualifying
event Percentage
Less than 12 months 95%
12 months through 23 months 85%
24 months through 35 months 75%
36 months through 47 months 65%
48 months through 59 months 55%
60 months through 71 months 45%
72 months through 83 months 35%
84 months through 95 months 25%
96 months through 107 15%
months
108 months through 119 5%
months
120 months or more 0%
Nothing in this section shall result in additional cost to the
employer.
21458. Optional settlement 4 consists of such other benefits as are
the actuarial equivalent of a member's retirement allowance, that he
or she may select subject to the approval of the board. However, the
actuarial equivalent of benefits under this optional settlement
payable to the member's beneficiary shall not exceed the actuarial
equivalent of the benefits which would be payable to that beneficiary
if the member had elected optional settlement 2 and Section 21459.
The board shall include in each member benefit booklet a specific
illustration of the benefits available under optional settlement 4.
21459. A member who elects to receive optional settlement 2 or 3
may concurrently and irrevocably elect to waive the provision for an
increase to his or her allowance due to the death of his or her
beneficiary and shall, instead, have his or her allowance based upon
the waiver of this benefit.
21460. A member who elects to receive the unmodified allowance or
optional settlement 1, or optional settlement 2, 3, or 4 with or
without making the election specified in Section 21459, and who names
his or her spouse as the option beneficiary, and whose spouse is
also an eligible survivor for the benefits provided by Section 21624,
21626, 21627, 21628, 21629, or 21630, and where the total benefit to
the surviving spouse is at least 50 percent of the member's
unmodified allowance, may concurrently and irrevocably elect to have
his or her allowance paid as a "qualified joint and survivor annuity."
Notwithstanding any other provision of this part, upon the election,
the survivor allowance shall be paid only to the member's spouse and
shall continue to be paid upon the remarriage of the spouse. Any
cost due to this election shall be paid by the member through an
actuarial reduction to his or her allowance.
For purposes of this section, a member's retirement allowance
shall be determined without regard to any limitation required
pursuant to Section 415 of Title 26 of the United States Code but the
amount payable to the spouse shall be subject to those limits as if
it were the retirement allowance of the member.
21461. (a) A member retiring for service may elect to have the
actuarial equivalent of his or her unmodified service retirement
allowance paid in two parts as follows:
(1) A temporary annuity in an amount specified by the member but
which shall not result in a reduction to his or her unmodified
allowance by more than 50 percent.
(2) A life income consisting of his or her service retirement
annuity plus the pension provided by the actuarial value of his or
her current and prior service pensions remaining after providing the
temporary annuity in paragraph (1).
(b) The temporary annuity under subdivision (a) shall not be
subject to further optional settlement under this article and shall
be payable monthly as an addition to the member's monthly life income
beginning on his or her effective date of retirement and continuing
until the member reaches age 59 1/2 or any whole age between ages 60
and 68, as designated by the member at the time of his or her
retirement. If his or her death occurs prior to that age, the
commuted value of any remaining installments shall be paid to his or
her designated beneficiary in a lump sum.
21461.5. (a) Notwithstanding Section 21461, a member retiring for
service who became a member of the system on or after January 1,
2002, and who is covered under the federal system but is not yet
receiving a retirement or disability benefit under that system, may
elect to have the actuarial equivalent of his or her unmodified
service retirement allowance paid in two parts as follows:
(1) A temporary annuity that shall not exceed the primary social
security benefit that is anticipated the member shall be entitled to
receive at social security retirement age, which age shall be
designated by the member.
(2) A life income consisting of the member's service retirement
annuity plus the pension provided by the actuarial value of the
member's current and prior service pensions remaining after providing
the temporary annuity in paragraph (1).
(b) The temporary annuity under paragraph (1) of subdivision (a)
shall not be subject to further optional settlement under this
article and shall be payable monthly as an addition to the member's
monthly life income beginning on the member's effective date of
retirement and continuing until the retired member attains the age
designated by the member under subdivision (a). If the member dies
prior to the designated age, the commuted value of any installments
payable for the period remaining until the member would have attained
that age shall be paid to the member's designated beneficiary in a
lump sum.
21462. Notwithstanding any other provision of this part, a member
who elected to receive optional settlement 2, 3, or 4, involving a
life contingency of the beneficiary, may, if the beneficiary
predeceases the member or if the member marries and the former spouse
was not named as beneficiary, or, if a former spouse was named, in
the event of a dissolution or annulment of the marriage or a legal
separation in which the judgment dividing the community property
awards the total interest in the retirement system to the retired
member, elect to have the actuarial equivalent reflecting any
selection against the fund resulting from the election as of the date
of election of the allowance payable for the remainder of the member'
s lifetime under the optional settlement previously chosen applied to
a lesser allowance during the member's remaining lifetime under one
of the optional settlements specified in this article and name a
different beneficiary. The election shall be made within 12 months
following the death of the beneficiary who predeceased the member or
within 12 months of the date of entry of the judgment dividing the
community property of the parties, or within 12 months following
marriage if the spouse is named as beneficiary. The election shall
become effective on the date specified on the election, provided that
this date is not earlier than the day following receipt of the
election in this system pursuant to this section.
A member who has a qualifying event prior to January 1, 1988, and
who fails to elect by January 1, 1989, or a member who has a
qualifying event on or after January 1, 1988, and who fails to elect
within 12 months, shall retain the right to make an election under
this section. However, this election shall become effective no
earlier than 12 months after the date it is filed with the board,
provided that neither the member nor the designated beneficiary die
prior to the effective date of the election.
This section shall not be construed to mean that designation of a
new beneficiary causes the selection of an optional settlement. An
optional settlement shall be selected by a member in a writing filed
by the member with the board.
21463. A member who elected to receive optional settlement 2 or 3
and whose beneficiary predeceases him or her, shall be entitled to
receive the increased allowance pursuant to Section 21456 or Section
21457, as applicable, unless the member elected to waive the
provision for an increase to his or her allowance pursuant to Section
21459.
21464. Notwithstanding any provision of this part, a retired member
who chose no optional settlement or optional settlement 1 at
retirement may elect to have the actuarial equivalent, as of the date
of the election, of the allowance payable for the remainder of his
or her lifetime applied to a lesser allowance during his or her
remaining lifetime under one of the optional settlements specified in
this article and name his or her spouse as beneficiary.
The election provided by this section is irrevocable and shall be
made within 12 months following a member's marriage if the spouse is
named as beneficiary. The election shall become effective on the date
specified on the election, provided that this date is not earlier
than the day following receipt of the election in this system
pursuant to this section.
A member who married prior to or after January 1, 1988, who fails
to elect within 12 months, shall retain the right to make an election
under this section. However, the election shall become effective no
earlier than 12 months after the date it is filed with the board,
provided that neither the member nor the designated beneficiary die
prior to the effective date of the election.
This section shall not be construed to mean that designation of a
new beneficiary causes the selection of an optional settlement. An
optional settlement shall be selected by a member in a writing filed
by the member with the board.
21465. (a) Optional settlement 5 consists of a partial distribution
of the actuarial present value of the portion, as specified in this
section, of the member's unmodified monthly allowance, as prescribed
in Section 21362, 21362.2, 21363, 21363.1, 21363.4, or 21423, when a
service retirement allowance is payable. The actuarial present value
shall be based upon the investment return and postretirement
mortality assumptions adopted by the board for that purpose. The
member may elect to receive the actuarial present value of no less
than 20 percent and no more than 50 percent of his or her unmodified
allowance. The member may elect to receive the remaining portion of
the unmodified allowance, not distributed as a lump-sum payment,
under one of the settlements specified in this article for the
remainder of his or her lifetime and thereafter to his or her
designated beneficiary, unless this amount is solely limited to the
survivor continuance portion. The portion of the unmodified allowance
equivalent to the survivor continuance pursuant to Section 21624 may
not be distributed as a lump-sum payment. The benefits provided
under this section may not exceed the benefits that would have
otherwise been provided under any other section in this article.
(b) This section shall only apply to the following members who
retire on or after January 1, 1999:
(1) State peace officer/firefighter members in State Bargaining
Unit 6.
(2) State peace officer/firefighter members in State Bargaining
Unit 8 and state patrol members in State Bargaining Unit 5, if a
memorandum of understanding has been agreed upon by the state and the
recognized employee organization to become subject to this section.
(3) This section shall also apply to state peace
officer/firefighter members and state patrol members in related
supervisory and confidential positions, if the Department of
Personnel Administration has approved their inclusion.
21450. This system shall provide to any member who requests
materials relating to retirement, a written explanation of the
effects, if any, of each possible decision relating to the selection
of optional settlements, beneficiaries, and survivor benefits upon
health benefits that are provided pursuant to Part 5 (commencing with
Section 22750).
21451. In lieu of the retirement allowance for his or her life
alone, a member or retired member may elect, or revoke or change a
previous election prior to the approval of the previous election, to
have the actuarial equivalent of his or her retirement allowance as
of the date of retirement applied to a lesser retirement allowance,
in accordance with one of the optional settlements specified in this
article. The election or revocation or change thereof, with respect
to a member subject to Section 21624 at retirement, shall apply to
all of the retirement allowance, if, at the effective date of
retirement, the member has no spouse, children or dependent parents
who would qualify for an allowance under Section 21624 after the
death of the member; or, if at retirement there are persons who would
so qualify, then the election, or revocation, or change thereof,
with respect to any optional settlement other than optional
settlement one, shall apply only to the portion of the allowance that
exceeds the amount of the allowance payable to the survivor.
An actuarial equivalent under this article may be adjusted by the
board for the intervals and upon the effective dates determined by
the board.
21452. The lesser retirement allowance under an optional settlement
elected at retirement for law enforcement members whose retirement
is effective prior to October 1, 1965, and who are entitled to
receive benefits under the federal system, shall be actuarially
equivalent to that part of the retirement allowance that is subject
to option pursuant to Section 21451 that would have been payable at
retirement had no optional settlement been elected after taking into
consideration the reduction in the allowance provided for in former
Section 21252.10, as amended by Chapter 1657 of the Statutes of 1971.
Upon the election of an optional settlement by a member who has not
attained the federal retirement age the board shall estimate the
federal benefit upon the basis of information then available to it.
If the death of the member should occur before he or she has attained
the federal retirement age payments under the optional settlement
elected shall be as estimated. If the member attains the federal
retirement age, the board shall then recalculate the lesser
retirement allowance payable under the optional settlement upon the
basis of the age of the member and the beneficiary on the effective
date of retirement, actuarial tables then in use and the federal
benefit.
21453. An election, revocation, or change of election shall be made
prior to the making of the first payment on account of any
retirement allowance or, in event of a change of retirement status
after retirement, prior to the making of the first payment on account
of any retirement allowance following the change in retirement
status. "Change in retirement status" includes, but is not limited
to, change from service to disability retirement, from disability
retirement to service retirement, from nonindustrial disability
retirement to industrial disability retirement, or from industrial to
nonindustrial disability retirement.
For purposes of this section, payment shall be deemed to have been
made on the date a warrant is mailed, or the date funds are
electronically transferred to a bank, savings and loan association,
or credit union account for deposit in the member's account.
This section shall not be construed to authorize a member to
change his or her retirement status after the mailing of the first
retirement warrant following the election, revocation, or change of
election provided in this section.
21454. Notwithstanding Section 21453, an election of optional
settlement 2 or 3, or optional settlement 4 involving life
contingency in which a spouse is designated as the beneficiary, may
be modified as provided in this section in the event of a dissolution
or annulment of the marriage or a legal separation in which the
division of the community property awards the total interest in the
retirement system to the retired member. The modification shall
provide that payment shall be continued during the retired person's
lifetime in accordance with the optional settlement then in effect
but that no monthly allowance shall be paid following the retired
person's death, and in lieu thereof there shall be paid in a lump sum
to the member's estate or a beneficiary designated by him or her the
amount, if any, by which the member's accumulated contributions at
retirement exceed the total payments made to the retired person to
the date of his or her death.
21455. Optional settlement 1 consists of the right to have a
retirement allowance paid him or her until his or her death and if he
or she dies before he or she receives in annuity payments the amount
of his or her accumulated contributions at retirement, to have the
balance at death paid to his or her beneficiary or estate.
21456. Optional settlement 2 consists of the right to have a
retirement allowance paid a member until his or her death and
thereafter to his or her beneficiary for life.
If the beneficiary predeceases the member and the member elected
this section to be effective on or after January 1, 1990, the member'
s allowance shall be adjusted effective the first of the month
following the death of the beneficiary, to reflect the benefit that
would have been paid had the member not selected an optional
settlement.
If a nonspouse beneficiary waives entitlement to this allowance
and the member elected this section to be effective on or after
January 1, 1993, the member's allowance shall be adjusted effective
the first of the month following the receipt of the waiver of the
allowance entitlement from the nonspouse beneficiary to reflect the
benefit that would have been paid had the member not selected an
optional settlement.
If the marriage of a member is dissolved or annulled or there is a
legal separation between the member and the beneficiary spouse and
the judgment dividing the community property awards the total
interest in this system to the member, and the member elects this
section to be effective on or after January 1, 1994, the member's
allowance shall be adjusted effective the first of the month
following the filing of the judgment with the board to reflect the
benefit that would have been paid had the member not selected an
optional settlement.
If the beneficiary spouse predeceases the member on or after
January 1, 1990, and the member elected this section to be effective
prior to January 1, 1990, the member's allowance shall be adjusted
effective the first of the month following the death of the
beneficiary spouse to reflect a new allowance as calculated below.
If the nonspouse beneficiary waives entitlement to this allowance
on or after January 1, 1993, and the member elected this section to
be effective prior to January 1, 1993, the member's allowance shall
be adjusted, effective the first of the month following receipt by
the board of the waiver of entitlement from the nonspouse
beneficiary, to reflect a new allowance as calculated below.
If the marriage of a member is dissolved or annulled or there is a
legal separation between the member and the beneficiary spouse and
the judgment dividing the community property awards the total
interest in the retirement system to the member, and the member
elected this section to be effective prior to January 1, 1994, the
member's allowance shall be adjusted, effective the first of the
month following the filing of the judgment with the board to reflect
a new allowance as calculated below. The qualifying event shall be
the date on which the judgment is filed with the board.
A percentage factor shall be applied to the difference between the
member's unmodified allowance and optional settlement 2 allowance,
both of which shall include applicable cost-of-living increases. The
product of this equation shall then be added to the member's optional
settlement 2 allowance and the total amount shall become the member'
s base allowance. The percentage factor applicable to each member
shall be determined by the time between the member's retirement
effective date and the date of death of the beneficiary spouse or by
the time between the member's retirement effective date and the date
of the receipt of either the waiver of the allowance entitlement or
the judgment of dissolution, annulment, or legal separation according
to the following table:
Period between the
member's retirement
effective date and the
date of the qualifying
event Percentage
Less than 12 months 95%
12 months through 23 months 85%
24 months through 35 months 75%
36 months through 47 months 65%
48 months through 59 months 55%
60 months through 71 months 45%
72 months through 83 months 35%
84 months through 95 months 25%
96 months through 107 15%
months
108 months through 119 5%
months
120 months or more 0%
Nothing in this section shall result in additional cost to the
employer.
21457. Optional settlement 3 consists of the right to have a
retirement allowance paid a member until his or her death, and
thereafter to have one-half of his or her retirement allowance paid
to his or her beneficiary for life.
If the beneficiary predeceases the member and the member elected
this section to be effective on or after January 1, 1990, the member'
s allowance shall be adjusted effective the first of the month
following the death of the beneficiary, to reflect the benefit that
would have been paid had the member not selected an optional
settlement.
If the marriage of a member is dissolved or annulled or there is a
legal separation between the member and the beneficiary spouse and
the judgment dividing the community property awards the total
interest in this system to the member, and the member elects this
section to be effective on or after January 1, 1994, the member's
allowance shall be adjusted effective the first of the month
following the filing of the judgment with the board to reflect the
benefit that would have been paid had the member not selected an
optional settlement.
If a nonspouse beneficiary waives entitlement to this allowance
and the member elected this section to be effective on or after
January 1, 1993, the member's allowance shall be adjusted, effective
the first of the month following the receipt of the waiver of the
allowance entitlement from the nonspouse beneficiary, to reflect the
benefit that would have been paid had the member not selected an
optional settlement.
If the beneficiary spouse predeceases the member on or after
January 1, 1990, and the member elected this section to be effective
prior to January 1, 1990, the member's allowance shall be adjusted
effective the first of the month following the death of the
beneficiary spouse to reflect a new allowance as calculated below.
If the marriage of a member is dissolved or annulled or there is a
legal separation between the member and the beneficiary spouse and
the judgment dividing the community property awards the total
interest in the retirement system to the member, and the member
elected this section to be effective prior to January 1, 1994, the
member's allowance shall be adjusted, effective the first of the
month following the filing of the judgment with the board to reflect
a new allowance as calculated below. The qualifying event shall be
the date on which the judgment is filed with the board.
If the nonspouse beneficiary waives entitlement to this allowance
on or after January 1, 1993, and the member elected this section to
be effective prior to January 1, 1993, the member's allowance shall
be adjusted, effective the first of the month following receipt by
the board of the waiver of entitlement from the nonspouse
beneficiary, to reflect a new allowance as calculated below.
A percentage factor shall be applied to the difference between the
member's unmodified allowance and optional settlement 3 allowance,
both of which shall include applicable cost-of-living increases. The
product of this equation shall then be added to the member's optional
settlement 3 allowance and the total amount shall become the member'
s base allowance. The percentage factor applicable to each member
shall be determined by the time between the member's retirement
effective date and the date of death of the beneficiary spouse or by
the time between the member's retirement effective date and the date
of the receipt of either the waiver of the allowance entitlement or
the judgment of dissolution, annulment, or legal separation according
to the following table:
Period between the
member's retirement
effective date and the
date of the qualifying
event Percentage
Less than 12 months 95%
12 months through 23 months 85%
24 months through 35 months 75%
36 months through 47 months 65%
48 months through 59 months 55%
60 months through 71 months 45%
72 months through 83 months 35%
84 months through 95 months 25%
96 months through 107 15%
months
108 months through 119 5%
months
120 months or more 0%
Nothing in this section shall result in additional cost to the
employer.
21458. Optional settlement 4 consists of such other benefits as are
the actuarial equivalent of a member's retirement allowance, that he
or she may select subject to the approval of the board. However, the
actuarial equivalent of benefits under this optional settlement
payable to the member's beneficiary shall not exceed the actuarial
equivalent of the benefits which would be payable to that beneficiary
if the member had elected optional settlement 2 and Section 21459.
The board shall include in each member benefit booklet a specific
illustration of the benefits available under optional settlement 4.
21459. A member who elects to receive optional settlement 2 or 3
may concurrently and irrevocably elect to waive the provision for an
increase to his or her allowance due to the death of his or her
beneficiary and shall, instead, have his or her allowance based upon
the waiver of this benefit.
21460. A member who elects to receive the unmodified allowance or
optional settlement 1, or optional settlement 2, 3, or 4 with or
without making the election specified in Section 21459, and who names
his or her spouse as the option beneficiary, and whose spouse is
also an eligible survivor for the benefits provided by Section 21624,
21626, 21627, 21628, 21629, or 21630, and where the total benefit to
the surviving spouse is at least 50 percent of the member's
unmodified allowance, may concurrently and irrevocably elect to have
his or her allowance paid as a "qualified joint and survivor annuity."
Notwithstanding any other provision of this part, upon the election,
the survivor allowance shall be paid only to the member's spouse and
shall continue to be paid upon the remarriage of the spouse. Any
cost due to this election shall be paid by the member through an
actuarial reduction to his or her allowance.
For purposes of this section, a member's retirement allowance
shall be determined without regard to any limitation required
pursuant to Section 415 of Title 26 of the United States Code but the
amount payable to the spouse shall be subject to those limits as if
it were the retirement allowance of the member.
21461. (a) A member retiring for service may elect to have the
actuarial equivalent of his or her unmodified service retirement
allowance paid in two parts as follows:
(1) A temporary annuity in an amount specified by the member but
which shall not result in a reduction to his or her unmodified
allowance by more than 50 percent.
(2) A life income consisting of his or her service retirement
annuity plus the pension provided by the actuarial value of his or
her current and prior service pensions remaining after providing the
temporary annuity in paragraph (1).
(b) The temporary annuity under subdivision (a) shall not be
subject to further optional settlement under this article and shall
be payable monthly as an addition to the member's monthly life income
beginning on his or her effective date of retirement and continuing
until the member reaches age 59 1/2 or any whole age between ages 60
and 68, as designated by the member at the time of his or her
retirement. If his or her death occurs prior to that age, the
commuted value of any remaining installments shall be paid to his or
her designated beneficiary in a lump sum.
21461.5. (a) Notwithstanding Section 21461, a member retiring for
service who became a member of the system on or after January 1,
2002, and who is covered under the federal system but is not yet
receiving a retirement or disability benefit under that system, may
elect to have the actuarial equivalent of his or her unmodified
service retirement allowance paid in two parts as follows:
(1) A temporary annuity that shall not exceed the primary social
security benefit that is anticipated the member shall be entitled to
receive at social security retirement age, which age shall be
designated by the member.
(2) A life income consisting of the member's service retirement
annuity plus the pension provided by the actuarial value of the
member's current and prior service pensions remaining after providing
the temporary annuity in paragraph (1).
(b) The temporary annuity under paragraph (1) of subdivision (a)
shall not be subject to further optional settlement under this
article and shall be payable monthly as an addition to the member's
monthly life income beginning on the member's effective date of
retirement and continuing until the retired member attains the age
designated by the member under subdivision (a). If the member dies
prior to the designated age, the commuted value of any installments
payable for the period remaining until the member would have attained
that age shall be paid to the member's designated beneficiary in a
lump sum.
21462. Notwithstanding any other provision of this part, a member
who elected to receive optional settlement 2, 3, or 4, involving a
life contingency of the beneficiary, may, if the beneficiary
predeceases the member or if the member marries and the former spouse
was not named as beneficiary, or, if a former spouse was named, in
the event of a dissolution or annulment of the marriage or a legal
separation in which the judgment dividing the community property
awards the total interest in the retirement system to the retired
member, elect to have the actuarial equivalent reflecting any
selection against the fund resulting from the election as of the date
of election of the allowance payable for the remainder of the member'
s lifetime under the optional settlement previously chosen applied to
a lesser allowance during the member's remaining lifetime under one
of the optional settlements specified in this article and name a
different beneficiary. The election shall be made within 12 months
following the death of the beneficiary who predeceased the member or
within 12 months of the date of entry of the judgment dividing the
community property of the parties, or within 12 months following
marriage if the spouse is named as beneficiary. The election shall
become effective on the date specified on the election, provided that
this date is not earlier than the day following receipt of the
election in this system pursuant to this section.
A member who has a qualifying event prior to January 1, 1988, and
who fails to elect by January 1, 1989, or a member who has a
qualifying event on or after January 1, 1988, and who fails to elect
within 12 months, shall retain the right to make an election under
this section. However, this election shall become effective no
earlier than 12 months after the date it is filed with the board,
provided that neither the member nor the designated beneficiary die
prior to the effective date of the election.
This section shall not be construed to mean that designation of a
new beneficiary causes the selection of an optional settlement. An
optional settlement shall be selected by a member in a writing filed
by the member with the board.
21463. A member who elected to receive optional settlement 2 or 3
and whose beneficiary predeceases him or her, shall be entitled to
receive the increased allowance pursuant to Section 21456 or Section
21457, as applicable, unless the member elected to waive the
provision for an increase to his or her allowance pursuant to Section
21459.
21464. Notwithstanding any provision of this part, a retired member
who chose no optional settlement or optional settlement 1 at
retirement may elect to have the actuarial equivalent, as of the date
of the election, of the allowance payable for the remainder of his
or her lifetime applied to a lesser allowance during his or her
remaining lifetime under one of the optional settlements specified in
this article and name his or her spouse as beneficiary.
The election provided by this section is irrevocable and shall be
made within 12 months following a member's marriage if the spouse is
named as beneficiary. The election shall become effective on the date
specified on the election, provided that this date is not earlier
than the day following receipt of the election in this system
pursuant to this section.
A member who married prior to or after January 1, 1988, who fails
to elect within 12 months, shall retain the right to make an election
under this section. However, the election shall become effective no
earlier than 12 months after the date it is filed with the board,
provided that neither the member nor the designated beneficiary die
prior to the effective date of the election.
This section shall not be construed to mean that designation of a
new beneficiary causes the selection of an optional settlement. An
optional settlement shall be selected by a member in a writing filed
by the member with the board.
21465. (a) Optional settlement 5 consists of a partial distribution
of the actuarial present value of the portion, as specified in this
section, of the member's unmodified monthly allowance, as prescribed
in Section 21362, 21362.2, 21363, 21363.1, 21363.4, or 21423, when a
service retirement allowance is payable. The actuarial present value
shall be based upon the investment return and postretirement
mortality assumptions adopted by the board for that purpose. The
member may elect to receive the actuarial present value of no less
than 20 percent and no more than 50 percent of his or her unmodified
allowance. The member may elect to receive the remaining portion of
the unmodified allowance, not distributed as a lump-sum payment,
under one of the settlements specified in this article for the
remainder of his or her lifetime and thereafter to his or her
designated beneficiary, unless this amount is solely limited to the
survivor continuance portion. The portion of the unmodified allowance
equivalent to the survivor continuance pursuant to Section 21624 may
not be distributed as a lump-sum payment. The benefits provided
under this section may not exceed the benefits that would have
otherwise been provided under any other section in this article.
(b) This section shall only apply to the following members who
retire on or after January 1, 1999:
(1) State peace officer/firefighter members in State Bargaining
Unit 6.
(2) State peace officer/firefighter members in State Bargaining
Unit 8 and state patrol members in State Bargaining Unit 5, if a
memorandum of understanding has been agreed upon by the state and the
recognized employee organization to become subject to this section.
(3) This section shall also apply to state peace
officer/firefighter members and state patrol members in related
supervisory and confidential positions, if the Department of
Personnel Administration has approved their inclusion.
