31496. (a) The retirement plan created by this article shall be
known as Retirement Plan 3.
(b) This article shall be applicable in the retirement system of
any county of the 10th class, if the board of supervisors executes a
memorandum of understanding with employee representatives and adopts,
by majority vote, a resolution providing that the article shall be
applicable.
(c) The purpose of this article is to provide an optional,
noncontributory retirement plan for general members as an alternative
to the provisions and benefits otherwise contained in this chapter.
(d) The retirement benefits of (1) all general members employed
after the date this article is made operative and who elect the plan
created by this article and (2) existing general members who transfer
to the plan herein created, shall be governed by this article.
(e) In the event of a conflict, this article shall supersede and
prevail over other provisions or application of provisions otherwise
contained in this chapter.
(f) Except as otherwise provided below, the provisions contained
in this chapter shall apply:
(1) Article 9 (commencing with Section 31700) of this chapter
shall not be applicable.
(2) Article 10 (commencing with Section 31720) of this chapter
shall not be applicable.
(3) Article 11 (commencing with Section 31760) of this chapter
shall not be applicable.
(4) Article 12 (commencing with Section 31780) of this chapter
shall not be applicable.
(5) Article 16.5 (commencing with Section 31870) of this chapter
shall not be applicable.
(g) Article 15 (commencing with Section 31830) shall only be
applicable for service retirement. Those provisions of Article 15
dealing with disability retirement, death benefits, and the
requirement relating to the deposit of accumulated member
contributions shall not be applicable.
(h) Except as otherwise provided, any member who upon retirement
receives a retirement pension calculated in accordance with sections
or provisions added to this article subsequent to the effective date
of this article shall have his or her pension calculated under each
such section or provision only for the period of time that those
sections or provisions were in effect, unless otherwise mutually
agreed between the employer and its employee representatives.
(i) Any amendments to or modifications of this chapter subsequent
to the effective date of this article shall not affect the provisions
of this article unless mutually agreed to by the employer and
employee representatives and adopted by majority resolution of the
board of supervisors.
31496.3. Unless the context otherwise requires, the definitions
contained in this section govern the construction of this article.
(a) "Board" means the board of retirement.
(b) "Employer" means the county or district or agency whose
employees are members of the retirement system of the county.
(c) "Federal system" means the Old Age and Survivors Insurance
provisions of the Social Security Act.
(d) "Final compensation" means the average annual compensation
earnable by a general member during any three years, whether or not
consecutive, elected by the member at or before the time an
application for retirement is filed or, if no election is made,
during the three years in which the member or former member last
earned compensation preceding retirement. If a member or former
member has less than three years of service, final compensation shall
be determined by dividing total compensation by the number of months
of service credited to the member or former member and multiplying
by 12. In no event shall final compensation include any disability
benefits received by the member or former member under a disability
plan provided by the employer.
(e) "Member" or "general member" means an employee hired on a
permanent basis, as defined by the employer, except an employee
eligible for safety membership.
(f) "Primary insurance amount" means the monthly retirement
benefit payable under the federal system at the age of 65.
(g) "Service" means the period of uninterrupted employment of a
member and the time in which a member or former member (1) is totally
disabled, and (2) is receiving disability benefits or is eligible to
receive disability benefits either during or after any elimination
or qualifying period, under a disability plan provided by the
employer.
Except as provided, a member may not be credited with service for
any period of time in which the member is absent from work without
pay.
Unless otherwise provided, service may not include military
service or public service other than service with the employer.
Notwithstanding any other provision of this chapter, a member who
has elected or transferred to the plan created by this article and
who terminates for any reason and is later reemployed shall receive
Plan 3 credit for his or her service rendered prior to termination.
31496.7. (a) There shall be no general members' contributions under
the plan created by this article.
(b) A member who transfers to the retirement plan created by this
article shall have refunded, within a reasonable period of time, not
to exceed nine months from the date of receipt of election to
transfer by the board, the member's accumulated contributions,
together with interest thereon, which are credited to the member's
account. Interest shall be credited to the June 30 or December 31
date, whichever is later, immediately preceding the date of the
refund warrant. Any refund under this section shall be payable to the
member.
31497. (a) Except as provided in Section 31498.3 and under
reciprocal provisions of this article, a member who was in public
service prior to becoming a member may not elect to receive credit in
this retirement plan for that public service time, and shall not
receive credit for that prior public service.
(b) Absence from work or termination of employment while an
eligible employee or disability beneficiary, as defined by a
disability plan provided by the employer, shall not be considered as
breaking the continuity of service.
(c) For the purposes of subdivision (b) of Section 31497.3, an
unpaid leave of absence of not to exceed one year, or a leave of
absence for which an employee receives any benefit which has been
approved by the employer, shall not be considered an interruption of
service. However, the period of time of unpaid leave shall not be
considered as service in calculating the benefits otherwise provided
under this article.
31497.3. (a) Retirement of a member or former member who has met
the requirements for age and service shall be made by the board, at
which time the member or former member becomes a retired member.
(b) Any member who has completed 10 years of service shall be
vested under the plan created by this article.
(c) Any vested member or vested former member who has attained the
age of 65 years may be retired upon filing with the board a written
application on a form provided by the board for normal retirement
setting forth the desired effective retirement date.
(d) Any vested member or vested former member who has attained the
age of 55 years may be retired upon filing with the board a written
application on a form provided by the board for early retirement
setting forth the desired effective retirement date.
(e) The normal retirement pension shall consist of an annual
allowance payable in monthly installments for the life of the retired
member equal to 2 percent of his or her final compensation
multiplied by the number of years of service to the preceding
completed month to which the member is entitled to be credited at
retirement, not to exceed 35 years, added to 1 percent of the member'
s final compensation multiplied by the number of years of service in
excess of 35, not to exceed 10 years, reduced by the estimated
primary insurance amount, if any, multiplied by the fraction of the
number of years of service with the employer subject to coverage
under the federal system, not to exceed 35 years, divided by 35.
In no event shall the normal retirement pension, when added to the
estimated primary insurance amount, exceed 70 percent of the member'
s final compensation unless the years of service to which the member
is entitled to be credited at retirement exceeds 35, in which case
the normal retirement pension, when added to the estimated primary
insurance amount, shall not exceed 80 percent of the member's final
compensation.
(f) The early retirement pension shall consist of an annual
allowance payable in monthly installments for the life of the retired
member in an amount which is the actuarial equivalent of the normal
retirement pension to which the retired member would be entitled if
otherwise eligible for normal retirement, which shall be computed by
multiplying the normal retirement pension by the early retirement
adjustment factor set forth opposite the member's age as of the
birthday immediately preceding the date of retirement, in the
following table:
Age ERA Factor
55................................. .39
56................................. .43
57................................. .47
58................................. .51
59................................. .56
60................................. .61
61................................. .67
62................................. .74
63................................. .82
64................................. .90
The ERA Factors set forth in this subdivision shall be used until
adjusted by the board in accordance with the interest and mortality
tables adopted by the board.
(g) The board, upon the advice of the actuary, shall establish and
adjust, as required, the table of estimated primary insurance
amounts, which shall be utilized in computing the retirement benefit.
For purposes of this article, the primary insurance amount shall be
estimated based on the employee's age and salary as of the date of
retirement or the date of termination of a vested member, whichever
is applicable, provided that:
(1) An employee's prior career earnings shall be assumed to have
been subject to the federal system and to have increased on a
year-to-year basis at a rate equivalent to the rate of increase in
the average per worker total wages reported by the Social Security
Administration, and
(2) For those members who have not attained the normal retirement
age under the federal system as of the date of retirement (i) future
earnings in employment covered by the federal system shall be assumed
to continue at the rate of pay received by the employee from the
employer as of the date of retirement or the date of termination of a
vested member, whichever is applicable, and (ii) future wage bases,
as defined by the federal system, shall be assumed to continue at the
wage base in effect in the year of retirement or the year of
termination of a vested member, whichever is applicable, and (iii)
cost-of-living increases in the year of retirement and delayed
retirement credit provided under the federal system shall not be
included in the calculation of the estimated primary insurance
amount.
(h) The employer shall certify the years of service to be credited
at retirement and the final compensation to be utilized in computing
the normal and early retirement pension.
(i) At the time of application for retirement, the member or
former member shall provide adequate proof (1) of age and (2) of the
eligibility of persons, if any, who at that time would otherwise
qualify for the survivor allowance provided for in Section 31497.7.
(j) Notwithstanding subdivision (e) of Section 31497.3, any
retired member receiving a normal retirement pension shall, as soon
as possible but not later than six months following retirement,
present evidence required by the board of the retired member's actual
primary insurance amount. For purposes of this subdivision, the
actual primary insurance amount shall be the amount payable under the
federal system on the retired member's date of retirement without
regard to delayed retirement credit or any deductions on account of
work. Following receipt of that evidence, the board shall adjust the
retired member's pension from the date of retirement to equal the
amount of the pension to which he or she would have been entitled on
that date had the estimated primary insurance amount equaled the
actual primary insurance amount.
31497.7. (a) Upon the death of a retired member, 50 percent of the
retirement pension, if not modified in accordance with the optional
survivor allowance in subdivision (b), shall be continued during and
throughout the life of his or her surviving spouse, if he or she was
married to the member at least one year prior to the date of
retirement. If there is no surviving spouse entitled to this
allowance, or if he or she dies before every child of the deceased
retired member, including stepchild or adopted child, attains the age
of 18 years, then the allowance which the surviving spouse would
have received had she or he lived, shall be paid to the deceased
retired member's child or children under the age of 18 years. If the
survivor allowance is to be paid to surviving children, the allowance
shall be divided among the children in equal amounts. However, the
right of any child to share in the allowance shall cease upon his or
her death, marriage, or upon attaining the age of 18 years.
Notwithstanding any other provisions of this subdivision, the
allowance otherwise payable to the children of the retired member
shall be paid to the children through the age of 21, if the children
remain unmarried and are regularly enrolled as full-time students in
any accredited school as determined by the board.
(b) A vested member, or vested former member, in lieu of the
normal or early retirement pension for the retired member's life
alone, may elect to have the actuarial equivalent of the retired
member's pension as of the date of retirement applied to a lesser
amount payable throughout the retired member's life, and thereafter
to have a survivor allowance as approved by the board, upon the
advice of the actuary, continued throughout the life of and paid to
the person or persons having an insurable interest in the life of the
retired member, as the member or former member nominates by written
designation duly executed and filed with the board at the time of
retirement.
(c) Designations pursuant to subdivision (b) shall not, in the
opinion of the board and the actuary, place any additional burden
upon the retirement system.
31498. (a) Any person employed subsequent to the effective date of
this article who would otherwise qualify as a member shall not become
a member until he or she certifies to the board his or her election
to be covered by the retirement plan established by this article or
to be covered by the retirement provisions and benefits otherwise
available to members on the date preceding the effective date of this
article. As a condition of continued employment, the certification
shall be made within 60 days of employment. The employer shall make
available to the person a disclosure of the elements of each of the
available retirement plans prior to accepting his or her election.
(b) If the person does not elect to be covered by either
Retirement Plan 2 or Retirement Plan 3 within 60 days of employment,
the person shall automatically be covered by Retirement Plan 2 and no
certification shall be required.
31498.3. (a) General members may, within 180 days of the effective
date of this article, elect to transfer to the retirement plan
created by this article upon proper application executed by the
member and filed with the board.
(b) The retirement benefits of the transferred members are
governed and defined by this article.
(c) Transferring members relinquish and waive any and all
previously available vested or accrued retirement, survivor,
disability and death benefits. However, notwithstanding any other
provision of this article, a transferring member shall receive credit
for no more than 24 months of public service performed prior to
December 31, 1969, including service with the employer, military
service, and any other public service to which the member would
otherwise be eligible under this chapter, except that member
contributions shall not be collected.
(d) The transfer by the member is voluntary, and shall be
irrevocable, unless the board of supervisors, by resolution,
authorizes Retirement Plan 3 members to transfer to Retirement Plan
2, under terms and conditions specified in the resolution. These
terms may include, but are not limited to, an eligibility provision
based on the number of years in county service, a provision for
crediting service in Retirement Plan 2 only for that service rendered
after adoption of the resolution, or an eligibility provision
allowing members to transfer to Retirement Plan 2 all county service
rendered under Retirement Plan 3 provided the member deposits into
the retirement fund within a specified time an amount equal to the
contributions he or she would have made during that time, had he or
she been a member of Retirement Plan 2, together with regular
interest on that amount. The resolution may establish different
conditions for different job classifications or groups, and for
represented bargaining units, conditions mutually agreed upon by the
employer and the employee representative. The board of supervisors
may also establish any other conditions it deems necessary or
desirable.
(e) Any member who has elected or transferred to the plan created
by this article and who terminates his or her employment and is later
reemployed shall not be entitled to change his or her election upon
that reemployment, unless a resolution, enacted by the board of
supervisors subsequent to the member's election to transfer to the
new plan, so provides.
31498.7. Until the completion of the next regularly scheduled
actuarial survey of the retirement system, the employer contribution
required to finance the plan created by this article shall be
established by the board, upon the recommendation of the actuary.
31496. (a) The retirement plan created by this article shall be
known as Retirement Plan 3.
(b) This article shall be applicable in the retirement system of
any county of the 10th class, if the board of supervisors executes a
memorandum of understanding with employee representatives and adopts,
by majority vote, a resolution providing that the article shall be
applicable.
(c) The purpose of this article is to provide an optional,
noncontributory retirement plan for general members as an alternative
to the provisions and benefits otherwise contained in this chapter.
(d) The retirement benefits of (1) all general members employed
after the date this article is made operative and who elect the plan
created by this article and (2) existing general members who transfer
to the plan herein created, shall be governed by this article.
(e) In the event of a conflict, this article shall supersede and
prevail over other provisions or application of provisions otherwise
contained in this chapter.
(f) Except as otherwise provided below, the provisions contained
in this chapter shall apply:
(1) Article 9 (commencing with Section 31700) of this chapter
shall not be applicable.
(2) Article 10 (commencing with Section 31720) of this chapter
shall not be applicable.
(3) Article 11 (commencing with Section 31760) of this chapter
shall not be applicable.
(4) Article 12 (commencing with Section 31780) of this chapter
shall not be applicable.
(5) Article 16.5 (commencing with Section 31870) of this chapter
shall not be applicable.
(g) Article 15 (commencing with Section 31830) shall only be
applicable for service retirement. Those provisions of Article 15
dealing with disability retirement, death benefits, and the
requirement relating to the deposit of accumulated member
contributions shall not be applicable.
(h) Except as otherwise provided, any member who upon retirement
receives a retirement pension calculated in accordance with sections
or provisions added to this article subsequent to the effective date
of this article shall have his or her pension calculated under each
such section or provision only for the period of time that those
sections or provisions were in effect, unless otherwise mutually
agreed between the employer and its employee representatives.
(i) Any amendments to or modifications of this chapter subsequent
to the effective date of this article shall not affect the provisions
of this article unless mutually agreed to by the employer and
employee representatives and adopted by majority resolution of the
board of supervisors.
31496.3. Unless the context otherwise requires, the definitions
contained in this section govern the construction of this article.
(a) "Board" means the board of retirement.
(b) "Employer" means the county or district or agency whose
employees are members of the retirement system of the county.
(c) "Federal system" means the Old Age and Survivors Insurance
provisions of the Social Security Act.
(d) "Final compensation" means the average annual compensation
earnable by a general member during any three years, whether or not
consecutive, elected by the member at or before the time an
application for retirement is filed or, if no election is made,
during the three years in which the member or former member last
earned compensation preceding retirement. If a member or former
member has less than three years of service, final compensation shall
be determined by dividing total compensation by the number of months
of service credited to the member or former member and multiplying
by 12. In no event shall final compensation include any disability
benefits received by the member or former member under a disability
plan provided by the employer.
(e) "Member" or "general member" means an employee hired on a
permanent basis, as defined by the employer, except an employee
eligible for safety membership.
(f) "Primary insurance amount" means the monthly retirement
benefit payable under the federal system at the age of 65.
(g) "Service" means the period of uninterrupted employment of a
member and the time in which a member or former member (1) is totally
disabled, and (2) is receiving disability benefits or is eligible to
receive disability benefits either during or after any elimination
or qualifying period, under a disability plan provided by the
employer.
Except as provided, a member may not be credited with service for
any period of time in which the member is absent from work without
pay.
Unless otherwise provided, service may not include military
service or public service other than service with the employer.
Notwithstanding any other provision of this chapter, a member who
has elected or transferred to the plan created by this article and
who terminates for any reason and is later reemployed shall receive
Plan 3 credit for his or her service rendered prior to termination.
31496.7. (a) There shall be no general members' contributions under
the plan created by this article.
(b) A member who transfers to the retirement plan created by this
article shall have refunded, within a reasonable period of time, not
to exceed nine months from the date of receipt of election to
transfer by the board, the member's accumulated contributions,
together with interest thereon, which are credited to the member's
account. Interest shall be credited to the June 30 or December 31
date, whichever is later, immediately preceding the date of the
refund warrant. Any refund under this section shall be payable to the
member.
31497. (a) Except as provided in Section 31498.3 and under
reciprocal provisions of this article, a member who was in public
service prior to becoming a member may not elect to receive credit in
this retirement plan for that public service time, and shall not
receive credit for that prior public service.
(b) Absence from work or termination of employment while an
eligible employee or disability beneficiary, as defined by a
disability plan provided by the employer, shall not be considered as
breaking the continuity of service.
(c) For the purposes of subdivision (b) of Section 31497.3, an
unpaid leave of absence of not to exceed one year, or a leave of
absence for which an employee receives any benefit which has been
approved by the employer, shall not be considered an interruption of
service. However, the period of time of unpaid leave shall not be
considered as service in calculating the benefits otherwise provided
under this article.
31497.3. (a) Retirement of a member or former member who has met
the requirements for age and service shall be made by the board, at
which time the member or former member becomes a retired member.
(b) Any member who has completed 10 years of service shall be
vested under the plan created by this article.
(c) Any vested member or vested former member who has attained the
age of 65 years may be retired upon filing with the board a written
application on a form provided by the board for normal retirement
setting forth the desired effective retirement date.
(d) Any vested member or vested former member who has attained the
age of 55 years may be retired upon filing with the board a written
application on a form provided by the board for early retirement
setting forth the desired effective retirement date.
(e) The normal retirement pension shall consist of an annual
allowance payable in monthly installments for the life of the retired
member equal to 2 percent of his or her final compensation
multiplied by the number of years of service to the preceding
completed month to which the member is entitled to be credited at
retirement, not to exceed 35 years, added to 1 percent of the member'
s final compensation multiplied by the number of years of service in
excess of 35, not to exceed 10 years, reduced by the estimated
primary insurance amount, if any, multiplied by the fraction of the
number of years of service with the employer subject to coverage
under the federal system, not to exceed 35 years, divided by 35.
In no event shall the normal retirement pension, when added to the
estimated primary insurance amount, exceed 70 percent of the member'
s final compensation unless the years of service to which the member
is entitled to be credited at retirement exceeds 35, in which case
the normal retirement pension, when added to the estimated primary
insurance amount, shall not exceed 80 percent of the member's final
compensation.
(f) The early retirement pension shall consist of an annual
allowance payable in monthly installments for the life of the retired
member in an amount which is the actuarial equivalent of the normal
retirement pension to which the retired member would be entitled if
otherwise eligible for normal retirement, which shall be computed by
multiplying the normal retirement pension by the early retirement
adjustment factor set forth opposite the member's age as of the
birthday immediately preceding the date of retirement, in the
following table:
Age ERA Factor
55................................. .39
56................................. .43
57................................. .47
58................................. .51
59................................. .56
60................................. .61
61................................. .67
62................................. .74
63................................. .82
64................................. .90
The ERA Factors set forth in this subdivision shall be used until
adjusted by the board in accordance with the interest and mortality
tables adopted by the board.
(g) The board, upon the advice of the actuary, shall establish and
adjust, as required, the table of estimated primary insurance
amounts, which shall be utilized in computing the retirement benefit.
For purposes of this article, the primary insurance amount shall be
estimated based on the employee's age and salary as of the date of
retirement or the date of termination of a vested member, whichever
is applicable, provided that:
(1) An employee's prior career earnings shall be assumed to have
been subject to the federal system and to have increased on a
year-to-year basis at a rate equivalent to the rate of increase in
the average per worker total wages reported by the Social Security
Administration, and
(2) For those members who have not attained the normal retirement
age under the federal system as of the date of retirement (i) future
earnings in employment covered by the federal system shall be assumed
to continue at the rate of pay received by the employee from the
employer as of the date of retirement or the date of termination of a
vested member, whichever is applicable, and (ii) future wage bases,
as defined by the federal system, shall be assumed to continue at the
wage base in effect in the year of retirement or the year of
termination of a vested member, whichever is applicable, and (iii)
cost-of-living increases in the year of retirement and delayed
retirement credit provided under the federal system shall not be
included in the calculation of the estimated primary insurance
amount.
(h) The employer shall certify the years of service to be credited
at retirement and the final compensation to be utilized in computing
the normal and early retirement pension.
(i) At the time of application for retirement, the member or
former member shall provide adequate proof (1) of age and (2) of the
eligibility of persons, if any, who at that time would otherwise
qualify for the survivor allowance provided for in Section 31497.7.
(j) Notwithstanding subdivision (e) of Section 31497.3, any
retired member receiving a normal retirement pension shall, as soon
as possible but not later than six months following retirement,
present evidence required by the board of the retired member's actual
primary insurance amount. For purposes of this subdivision, the
actual primary insurance amount shall be the amount payable under the
federal system on the retired member's date of retirement without
regard to delayed retirement credit or any deductions on account of
work. Following receipt of that evidence, the board shall adjust the
retired member's pension from the date of retirement to equal the
amount of the pension to which he or she would have been entitled on
that date had the estimated primary insurance amount equaled the
actual primary insurance amount.
31497.7. (a) Upon the death of a retired member, 50 percent of the
retirement pension, if not modified in accordance with the optional
survivor allowance in subdivision (b), shall be continued during and
throughout the life of his or her surviving spouse, if he or she was
married to the member at least one year prior to the date of
retirement. If there is no surviving spouse entitled to this
allowance, or if he or she dies before every child of the deceased
retired member, including stepchild or adopted child, attains the age
of 18 years, then the allowance which the surviving spouse would
have received had she or he lived, shall be paid to the deceased
retired member's child or children under the age of 18 years. If the
survivor allowance is to be paid to surviving children, the allowance
shall be divided among the children in equal amounts. However, the
right of any child to share in the allowance shall cease upon his or
her death, marriage, or upon attaining the age of 18 years.
Notwithstanding any other provisions of this subdivision, the
allowance otherwise payable to the children of the retired member
shall be paid to the children through the age of 21, if the children
remain unmarried and are regularly enrolled as full-time students in
any accredited school as determined by the board.
(b) A vested member, or vested former member, in lieu of the
normal or early retirement pension for the retired member's life
alone, may elect to have the actuarial equivalent of the retired
member's pension as of the date of retirement applied to a lesser
amount payable throughout the retired member's life, and thereafter
to have a survivor allowance as approved by the board, upon the
advice of the actuary, continued throughout the life of and paid to
the person or persons having an insurable interest in the life of the
retired member, as the member or former member nominates by written
designation duly executed and filed with the board at the time of
retirement.
(c) Designations pursuant to subdivision (b) shall not, in the
opinion of the board and the actuary, place any additional burden
upon the retirement system.
31498. (a) Any person employed subsequent to the effective date of
this article who would otherwise qualify as a member shall not become
a member until he or she certifies to the board his or her election
to be covered by the retirement plan established by this article or
to be covered by the retirement provisions and benefits otherwise
available to members on the date preceding the effective date of this
article. As a condition of continued employment, the certification
shall be made within 60 days of employment. The employer shall make
available to the person a disclosure of the elements of each of the
available retirement plans prior to accepting his or her election.
(b) If the person does not elect to be covered by either
Retirement Plan 2 or Retirement Plan 3 within 60 days of employment,
the person shall automatically be covered by Retirement Plan 2 and no
certification shall be required.
31498.3. (a) General members may, within 180 days of the effective
date of this article, elect to transfer to the retirement plan
created by this article upon proper application executed by the
member and filed with the board.
(b) The retirement benefits of the transferred members are
governed and defined by this article.
(c) Transferring members relinquish and waive any and all
previously available vested or accrued retirement, survivor,
disability and death benefits. However, notwithstanding any other
provision of this article, a transferring member shall receive credit
for no more than 24 months of public service performed prior to
December 31, 1969, including service with the employer, military
service, and any other public service to which the member would
otherwise be eligible under this chapter, except that member
contributions shall not be collected.
(d) The transfer by the member is voluntary, and shall be
irrevocable, unless the board of supervisors, by resolution,
authorizes Retirement Plan 3 members to transfer to Retirement Plan
2, under terms and conditions specified in the resolution. These
terms may include, but are not limited to, an eligibility provision
based on the number of years in county service, a provision for
crediting service in Retirement Plan 2 only for that service rendered
after adoption of the resolution, or an eligibility provision
allowing members to transfer to Retirement Plan 2 all county service
rendered under Retirement Plan 3 provided the member deposits into
the retirement fund within a specified time an amount equal to the
contributions he or she would have made during that time, had he or
she been a member of Retirement Plan 2, together with regular
interest on that amount. The resolution may establish different
conditions for different job classifications or groups, and for
represented bargaining units, conditions mutually agreed upon by the
employer and the employee representative. The board of supervisors
may also establish any other conditions it deems necessary or
desirable.
(e) Any member who has elected or transferred to the plan created
by this article and who terminates his or her employment and is later
reemployed shall not be entitled to change his or her election upon
that reemployment, unless a resolution, enacted by the board of
supervisors subsequent to the member's election to transfer to the
new plan, so provides.
31498.7. Until the completion of the next regularly scheduled
actuarial survey of the retirement system, the employer contribution
required to finance the plan created by this article shall be
established by the board, upon the recommendation of the actuary.
31496. (a) The retirement plan created by this article shall be
known as Retirement Plan 3.
(b) This article shall be applicable in the retirement system of
any county of the 10th class, if the board of supervisors executes a
memorandum of understanding with employee representatives and adopts,
by majority vote, a resolution providing that the article shall be
applicable.
(c) The purpose of this article is to provide an optional,
noncontributory retirement plan for general members as an alternative
to the provisions and benefits otherwise contained in this chapter.
(d) The retirement benefits of (1) all general members employed
after the date this article is made operative and who elect the plan
created by this article and (2) existing general members who transfer
to the plan herein created, shall be governed by this article.
(e) In the event of a conflict, this article shall supersede and
prevail over other provisions or application of provisions otherwise
contained in this chapter.
(f) Except as otherwise provided below, the provisions contained
in this chapter shall apply:
(1) Article 9 (commencing with Section 31700) of this chapter
shall not be applicable.
(2) Article 10 (commencing with Section 31720) of this chapter
shall not be applicable.
(3) Article 11 (commencing with Section 31760) of this chapter
shall not be applicable.
(4) Article 12 (commencing with Section 31780) of this chapter
shall not be applicable.
(5) Article 16.5 (commencing with Section 31870) of this chapter
shall not be applicable.
(g) Article 15 (commencing with Section 31830) shall only be
applicable for service retirement. Those provisions of Article 15
dealing with disability retirement, death benefits, and the
requirement relating to the deposit of accumulated member
contributions shall not be applicable.
(h) Except as otherwise provided, any member who upon retirement
receives a retirement pension calculated in accordance with sections
or provisions added to this article subsequent to the effective date
of this article shall have his or her pension calculated under each
such section or provision only for the period of time that those
sections or provisions were in effect, unless otherwise mutually
agreed between the employer and its employee representatives.
(i) Any amendments to or modifications of this chapter subsequent
to the effective date of this article shall not affect the provisions
of this article unless mutually agreed to by the employer and
employee representatives and adopted by majority resolution of the
board of supervisors.
31496.3. Unless the context otherwise requires, the definitions
contained in this section govern the construction of this article.
(a) "Board" means the board of retirement.
(b) "Employer" means the county or district or agency whose
employees are members of the retirement system of the county.
(c) "Federal system" means the Old Age and Survivors Insurance
provisions of the Social Security Act.
(d) "Final compensation" means the average annual compensation
earnable by a general member during any three years, whether or not
consecutive, elected by the member at or before the time an
application for retirement is filed or, if no election is made,
during the three years in which the member or former member last
earned compensation preceding retirement. If a member or former
member has less than three years of service, final compensation shall
be determined by dividing total compensation by the number of months
of service credited to the member or former member and multiplying
by 12. In no event shall final compensation include any disability
benefits received by the member or former member under a disability
plan provided by the employer.
(e) "Member" or "general member" means an employee hired on a
permanent basis, as defined by the employer, except an employee
eligible for safety membership.
(f) "Primary insurance amount" means the monthly retirement
benefit payable under the federal system at the age of 65.
(g) "Service" means the period of uninterrupted employment of a
member and the time in which a member or former member (1) is totally
disabled, and (2) is receiving disability benefits or is eligible to
receive disability benefits either during or after any elimination
or qualifying period, under a disability plan provided by the
employer.
Except as provided, a member may not be credited with service for
any period of time in which the member is absent from work without
pay.
Unless otherwise provided, service may not include military
service or public service other than service with the employer.
Notwithstanding any other provision of this chapter, a member who
has elected or transferred to the plan created by this article and
who terminates for any reason and is later reemployed shall receive
Plan 3 credit for his or her service rendered prior to termination.
31496.7. (a) There shall be no general members' contributions under
the plan created by this article.
(b) A member who transfers to the retirement plan created by this
article shall have refunded, within a reasonable period of time, not
to exceed nine months from the date of receipt of election to
transfer by the board, the member's accumulated contributions,
together with interest thereon, which are credited to the member's
account. Interest shall be credited to the June 30 or December 31
date, whichever is later, immediately preceding the date of the
refund warrant. Any refund under this section shall be payable to the
member.
31497. (a) Except as provided in Section 31498.3 and under
reciprocal provisions of this article, a member who was in public
service prior to becoming a member may not elect to receive credit in
this retirement plan for that public service time, and shall not
receive credit for that prior public service.
(b) Absence from work or termination of employment while an
eligible employee or disability beneficiary, as defined by a
disability plan provided by the employer, shall not be considered as
breaking the continuity of service.
(c) For the purposes of subdivision (b) of Section 31497.3, an
unpaid leave of absence of not to exceed one year, or a leave of
absence for which an employee receives any benefit which has been
approved by the employer, shall not be considered an interruption of
service. However, the period of time of unpaid leave shall not be
considered as service in calculating the benefits otherwise provided
under this article.
31497.3. (a) Retirement of a member or former member who has met
the requirements for age and service shall be made by the board, at
which time the member or former member becomes a retired member.
(b) Any member who has completed 10 years of service shall be
vested under the plan created by this article.
(c) Any vested member or vested former member who has attained the
age of 65 years may be retired upon filing with the board a written
application on a form provided by the board for normal retirement
setting forth the desired effective retirement date.
(d) Any vested member or vested former member who has attained the
age of 55 years may be retired upon filing with the board a written
application on a form provided by the board for early retirement
setting forth the desired effective retirement date.
(e) The normal retirement pension shall consist of an annual
allowance payable in monthly installments for the life of the retired
member equal to 2 percent of his or her final compensation
multiplied by the number of years of service to the preceding
completed month to which the member is entitled to be credited at
retirement, not to exceed 35 years, added to 1 percent of the member'
s final compensation multiplied by the number of years of service in
excess of 35, not to exceed 10 years, reduced by the estimated
primary insurance amount, if any, multiplied by the fraction of the
number of years of service with the employer subject to coverage
under the federal system, not to exceed 35 years, divided by 35.
In no event shall the normal retirement pension, when added to the
estimated primary insurance amount, exceed 70 percent of the member'
s final compensation unless the years of service to which the member
is entitled to be credited at retirement exceeds 35, in which case
the normal retirement pension, when added to the estimated primary
insurance amount, shall not exceed 80 percent of the member's final
compensation.
(f) The early retirement pension shall consist of an annual
allowance payable in monthly installments for the life of the retired
member in an amount which is the actuarial equivalent of the normal
retirement pension to which the retired member would be entitled if
otherwise eligible for normal retirement, which shall be computed by
multiplying the normal retirement pension by the early retirement
adjustment factor set forth opposite the member's age as of the
birthday immediately preceding the date of retirement, in the
following table:
Age ERA Factor
55................................. .39
56................................. .43
57................................. .47
58................................. .51
59................................. .56
60................................. .61
61................................. .67
62................................. .74
63................................. .82
64................................. .90
The ERA Factors set forth in this subdivision shall be used until
adjusted by the board in accordance with the interest and mortality
tables adopted by the board.
(g) The board, upon the advice of the actuary, shall establish and
adjust, as required, the table of estimated primary insurance
amounts, which shall be utilized in computing the retirement benefit.
For purposes of this article, the primary insurance amount shall be
estimated based on the employee's age and salary as of the date of
retirement or the date of termination of a vested member, whichever
is applicable, provided that:
(1) An employee's prior career earnings shall be assumed to have
been subject to the federal system and to have increased on a
year-to-year basis at a rate equivalent to the rate of increase in
the average per worker total wages reported by the Social Security
Administration, and
(2) For those members who have not attained the normal retirement
age under the federal system as of the date of retirement (i) future
earnings in employment covered by the federal system shall be assumed
to continue at the rate of pay received by the employee from the
employer as of the date of retirement or the date of termination of a
vested member, whichever is applicable, and (ii) future wage bases,
as defined by the federal system, shall be assumed to continue at the
wage base in effect in the year of retirement or the year of
termination of a vested member, whichever is applicable, and (iii)
cost-of-living increases in the year of retirement and delayed
retirement credit provided under the federal system shall not be
included in the calculation of the estimated primary insurance
amount.
(h) The employer shall certify the years of service to be credited
at retirement and the final compensation to be utilized in computing
the normal and early retirement pension.
(i) At the time of application for retirement, the member or
former member shall provide adequate proof (1) of age and (2) of the
eligibility of persons, if any, who at that time would otherwise
qualify for the survivor allowance provided for in Section 31497.7.
(j) Notwithstanding subdivision (e) of Section 31497.3, any
retired member receiving a normal retirement pension shall, as soon
as possible but not later than six months following retirement,
present evidence required by the board of the retired member's actual
primary insurance amount. For purposes of this subdivision, the
actual primary insurance amount shall be the amount payable under the
federal system on the retired member's date of retirement without
regard to delayed retirement credit or any deductions on account of
work. Following receipt of that evidence, the board shall adjust the
retired member's pension from the date of retirement to equal the
amount of the pension to which he or she would have been entitled on
that date had the estimated primary insurance amount equaled the
actual primary insurance amount.
31497.7. (a) Upon the death of a retired member, 50 percent of the
retirement pension, if not modified in accordance with the optional
survivor allowance in subdivision (b), shall be continued during and
throughout the life of his or her surviving spouse, if he or she was
married to the member at least one year prior to the date of
retirement. If there is no surviving spouse entitled to this
allowance, or if he or she dies before every child of the deceased
retired member, including stepchild or adopted child, attains the age
of 18 years, then the allowance which the surviving spouse would
have received had she or he lived, shall be paid to the deceased
retired member's child or children under the age of 18 years. If the
survivor allowance is to be paid to surviving children, the allowance
shall be divided among the children in equal amounts. However, the
right of any child to share in the allowance shall cease upon his or
her death, marriage, or upon attaining the age of 18 years.
Notwithstanding any other provisions of this subdivision, the
allowance otherwise payable to the children of the retired member
shall be paid to the children through the age of 21, if the children
remain unmarried and are regularly enrolled as full-time students in
any accredited school as determined by the board.
(b) A vested member, or vested former member, in lieu of the
normal or early retirement pension for the retired member's life
alone, may elect to have the actuarial equivalent of the retired
member's pension as of the date of retirement applied to a lesser
amount payable throughout the retired member's life, and thereafter
to have a survivor allowance as approved by the board, upon the
advice of the actuary, continued throughout the life of and paid to
the person or persons having an insurable interest in the life of the
retired member, as the member or former member nominates by written
designation duly executed and filed with the board at the time of
retirement.
(c) Designations pursuant to subdivision (b) shall not, in the
opinion of the board and the actuary, place any additional burden
upon the retirement system.
31498. (a) Any person employed subsequent to the effective date of
this article who would otherwise qualify as a member shall not become
a member until he or she certifies to the board his or her election
to be covered by the retirement plan established by this article or
to be covered by the retirement provisions and benefits otherwise
available to members on the date preceding the effective date of this
article. As a condition of continued employment, the certification
shall be made within 60 days of employment. The employer shall make
available to the person a disclosure of the elements of each of the
available retirement plans prior to accepting his or her election.
(b) If the person does not elect to be covered by either
Retirement Plan 2 or Retirement Plan 3 within 60 days of employment,
the person shall automatically be covered by Retirement Plan 2 and no
certification shall be required.
31498.3. (a) General members may, within 180 days of the effective
date of this article, elect to transfer to the retirement plan
created by this article upon proper application executed by the
member and filed with the board.
(b) The retirement benefits of the transferred members are
governed and defined by this article.
(c) Transferring members relinquish and waive any and all
previously available vested or accrued retirement, survivor,
disability and death benefits. However, notwithstanding any other
provision of this article, a transferring member shall receive credit
for no more than 24 months of public service performed prior to
December 31, 1969, including service with the employer, military
service, and any other public service to which the member would
otherwise be eligible under this chapter, except that member
contributions shall not be collected.
(d) The transfer by the member is voluntary, and shall be
irrevocable, unless the board of supervisors, by resolution,
authorizes Retirement Plan 3 members to transfer to Retirement Plan
2, under terms and conditions specified in the resolution. These
terms may include, but are not limited to, an eligibility provision
based on the number of years in county service, a provision for
crediting service in Retirement Plan 2 only for that service rendered
after adoption of the resolution, or an eligibility provision
allowing members to transfer to Retirement Plan 2 all county service
rendered under Retirement Plan 3 provided the member deposits into
the retirement fund within a specified time an amount equal to the
contributions he or she would have made during that time, had he or
she been a member of Retirement Plan 2, together with regular
interest on that amount. The resolution may establish different
conditions for different job classifications or groups, and for
represented bargaining units, conditions mutually agreed upon by the
employer and the employee representative. The board of supervisors
may also establish any other conditions it deems necessary or
desirable.
(e) Any member who has elected or transferred to the plan created
by this article and who terminates his or her employment and is later
reemployed shall not be entitled to change his or her election upon
that reemployment, unless a resolution, enacted by the board of
supervisors subsequent to the member's election to transfer to the
new plan, so provides.
31498.7. Until the completion of the next regularly scheduled
actuarial survey of the retirement system, the employer contribution
required to finance the plan created by this article shall be
established by the board, upon the recommendation of the actuary.
