SECTIONS 21600-21605

21600.  (a) The purpose of this article is to provide group termlife insurance benefits for members of this system who are employeesof the state or the university. Notwithstanding any other provisionof this part, this article shall not apply to a school member, or anyother local member. (b) If this section is in conflict with the provisions of amemorandum of understanding reached pursuant to Section 3517.5, thememorandum of understanding shall be controlling without furtherlegislative action, except that if the provisions of a memorandum ofunderstanding require the expenditure of funds, the provisions shallnot become effective unless approved by the Legislature in the annualBudget Act.21601.  A separate account shall be established in the retirementfund to be known as the Insurance Benefits Account. Moneys in theaccount shall be expended for the sole purpose of payment ofinsurance benefits under this article. Interest shall be credited tothe account at the annual rate and in the same manner as interest iscredited to employer and employee contributions in the retirementfund.21602.  (a) The board shall transfer annually on July 1 during anyperiod of insurance from accumulated state contributions on accountof current service to the Insurance Benefits Account the amountestimated to be necessary for payment during that fiscal year, of theportion of the insurance benefit prescribed in subdivision (b) ofSection 21605 plus any deficiency in the transfer for the previousfiscal year for that purpose. (b) If this section is in conflict with the provisions of amemorandum of understanding reached pursuant to Section 3517.5, thememorandum of understanding shall be controlling without furtherlegislative action, except that if the provisions of a memorandum ofunderstanding require the expenditure of funds, the provisions shallnot become effective unless approved by the Legislature in the annualBudget Act.21603.  An insured member, for purposes of this part, is a member ofthis system who is a state or university employee and whose deathoccurs under conditions specified in Section 21604.21604.  The insurance benefit shall be paid upon death of an insuredmember of this system to the beneficiary entitled to receive thebasic or special death benefit if all of the following conditionsoccur: (a) Death occurs during any of the following: (1) While in state service. (2) While absent from state service on military service or onapproved leave of absence. (3) Within four months of discontinuance of state service. (4) While physically or mentally incapacitated for performance ofduty continuously from discontinuance of state service. (b) If either of the following exists: (1) Death occurs while a member and before the effective date ofretirement. (2) If an optional settlement 2 or 3 or an optional settlement 4involving payment of an allowance throughout the life of thebeneficiary has not been elected and if an allowance under Section21624, 21627, 21629, or 21630 is not payable, and death occurs on orafter the effective date of retirement and before the mailing of aretirement allowance warrant. (c) Death occurs during a period of insurance. (d) Death occurs under circumstances other than those described insubparagraph (F) of paragraph (1) of subdivision (a) of Section21530. If this section is in conflict with the provisions of a memorandumof understanding reached pursuant to Section 3517.5, the memorandumof understanding shall be controlling without further legislativeaction, except that, if the provisions of a memorandum ofunderstanding require the expenditure of funds, the provisions shallnot become effective unless approved by the Legislature in the annualBudget Act.21605.  The insurance benefit shall be the sum of the followingamounts: (a) Five thousand dollars ($5,000). (b) An amount equal to 50 percent of the annual compensationearnable by the deceased member during the 12 months immediatelypreceding his or her death or the compensation earnable by the memberat the time of becoming eligible for benefits pursuant to Section21160 if higher, or if a member also has state service in anemployment in which employees are ineligible to be insured members, aproportionate part of that amount in the ratio of eligible serviceto total service. No amount shall be paid under this subdivision ifthe member is eligible for service retirement or the member issubject to benefits pursuant to Section 21547. If this section is in conflict with the provisions of a memorandumof understanding reached pursuant to Section 3517.5, the memorandumof understanding shall be controlling without further legislativeaction, except that if the provisions of a memorandum ofunderstanding require the expenditure of funds, the provisions shallnot become effective unless approved by the Legislature in the annualBudget Act.