25001. (a) The board shall establish a segregated account within
the retirement fund to be known as the Gain and Loss Reserve, and the
board shall have sole authority over the reserve. The Gain and Loss
Reserve shall be maintained for the Defined Benefit Supplement
Program and may be used to credit interest at the minimum interest
rate for plan years in which the board determines that the obligation
cannot be met from investment earnings. The Gain and Loss Reserve
may also be used to provide additions to the Annuitant Reserve for
monthly annuities payable under the Defined Benefit Supplement
Program.
(b) The board shall establish a goal for the balance of the Gain
and Loss Reserve and periodically shall review the sufficiency of the
reserve based on the recommendations of the actuary.
(c) The board may allocate excess earnings of the plan with
respect to assets attributable to the Defined Benefit Supplement
Program to the Gain and Loss Reserve. In addition, the board may
allocate any liability gains and losses attributable to the Defined
Benefit Supplement Program to the Gain and Loss Reserve. Upon the
recommendation of the actuary, the board shall determine annually the
amount, if any, that is to be allocated to the Gain and Loss Reserve
for that plan year. That determination shall be made upon
recommendation of the actuary after adoption of the actuarial
valuation undertaken following the plan year pursuant to Section
22311.5, but no later than June 30 following the end of the plan
year. In determining whether to allocate excess earnings to the Gain
and Loss Reserve, the board shall consider all of the following:
(1) Whether or not the plan has excess earnings attributable to
the Defined Benefit Supplement Program.
(2) The sufficiency of the Gain and Loss Reserve in light of the
goal established pursuant to subdivision (b).
(3) The amount required for the plan's administrative costs with
respect to the Defined Benefit Supplement Program.
(4) The amount required for crediting members' accounts at the
minimum interest rate.
(d) In determining whether to allocate liability gains and losses
to the Gain and Loss Reserve, the board shall consider the matters
described in paragraphs (2), (3), and (4) of subdivision (c).
25002. The board shall establish and maintain a segregated account
within the retirement fund to be known as the Annuitant Reserve and
the board shall have sole authority over the reserve. The Annuitant
Reserve shall be used for the payment of annuities under the Defined
Benefit Supplement Program. The board shall transfer the balance of
credits in a member's accumulated Defined Benefit Supplement account
to the reserve when a benefit is to be paid as an annuity.
25003. The board may transfer amounts between the Gain and Loss
Reserve and the Annuitant Reserve upon the recommendation of the
actuary.
25004. Member accounts under the Defined Benefit Supplement Program
shall be nominal accounts. Member contributions and employer
contributions on behalf of the member that are specifically
identified as creditable to the Defined Benefit Supplement Program
shall be treated as credits to the member's Defined Benefit
Supplement account, together with interest credited at the minimum
interest rate and additional earnings credit thereon. The balance of
credits in a member's account shall determine the amount to which the
member is entitled under the Defined Benefit Supplement Program upon
termination of employment subject to coverage by the plan. The
member shall not have a right or claim to any specific assets of the
account, program, plan, or retirement fund.
25005. (a) Prior to July 1 of the initial plan year, and prior to
the beginning of each plan year thereafter, the board shall adopt a
plan amendment with respect to the Defined Benefit Supplement Program
to declare the rate at which interest shall be credited to Defined
Benefit Supplement accounts for the following plan year.
(b) The minimum interest rate declared annually by the board shall
be in accordance with applicable federal laws and related
regulations and shall not be less than the rate at which interest is
credited under the Defined Benefit Program.
(c) Interest shall be credited to Defined Benefit Supplement
accounts and shall be computed at the minimum interest rate on the
balance of credits in a member's account and shall be compounded
daily.
(d) Credited interest shall not be applied to the balance of
credits in a member's Defined Benefit Supplement account that has
been transferred to the Annuitant Reserve.
25006. (a) The board may declare an additional earnings credit to
be applied to Defined Benefit Supplement accounts for a plan year.
Prior to declaring an additional earnings credit, the board shall
consider all of the following:
(1) Whether the plan's investment earnings with respect to the
Defined Benefit Supplement Program for the plan year exceed the
amount required to meet the liabilities identified in paragraphs (2),
(3), and (4).
(2) The amount required for the plan year to credit interest on
members' nominal accounts at the minimum interest rate.
(3) The amount of the plan's administrative expenses with respect
to the Defined Benefit Supplement Program for the plan year.
(4) The sufficiency of the Gain and Loss Reserve and whether any
additions must be made to that reserve.
(b) For any plan year that the board declares an additional
earnings credit, the board shall specify the amount to be added to
members' accounts as a percentage increase. The additional earnings
credit shall be applied to the balance of credits in each member's
nominal account as of the last day of the plan year and shall be
applied as of the date specified by the board. The additional
earnings credit shall not be added to the balance of credits
transferred from a member's Defined Benefit Supplement account to the
Annuitant Reserve.
(c) The declaration of an additional earnings credit shall be made
as a plan amendment adopted by the board with respect to the Defined
Benefit Supplement Program upon recommendation of the actuary after
adoption of the actuarial valuation undertaken following the plan
year pursuant to Section 22311.5, but no later than June 30 following
the end of the plan year.
25007. When the board declares an additional earnings credit for a
plan year, the board also may declare by plan amendment an additional
annuity credit, for members and annuity beneficiaries who are
receiving an annuity as of the date specified by the board pursuant
to Section 25006, based on the annuity of the member and annuity
beneficiaries for the plan year. The additional annuity credit shall
be paid in a lump sum to the members and annuity beneficiaries on the
date specified by the board. In addition to the considerations
specified in Section 25006, prior to declaring an additional earnings
credit, the board shall consider both of the following:
(a) The amount required for the plan year to apply the additional
earnings credit to the Defined Benefit Supplement accounts of members
who are not receiving an annuity under the Defined Benefit
Supplement Program for the plan year.
(b) Any other obligations incurred by the plan with respect to the
Defined Benefit Supplement Program.
25008. A member's right to an amount equal to the member's Defined
Benefit Supplement account balance shall be vested at the time
contributions are initially credited to the member's account.
25008.5. Notwithstanding any other law, if (a) a member or
beneficiary whose effective date for a benefit received pursuant to
any other chapter of this part was prior to January 1, 2010, (b) the
member or beneficiary was required to receive a distribution of the
balance of credits from the member's Defined Benefit Supplement
account pursuant to this chapter, and (c) the member or beneficiary
failed to submit an application for the distribution of the member's
Defined Benefit Supplement account prior to January 1, 2010, the
system shall distribute the balance of credits in the member's
Defined Benefit Supplement account in a lump-sum payment to the
member or beneficiary, as applicable, by March 31, 2010.
25001. (a) The board shall establish a segregated account within
the retirement fund to be known as the Gain and Loss Reserve, and the
board shall have sole authority over the reserve. The Gain and Loss
Reserve shall be maintained for the Defined Benefit Supplement
Program and may be used to credit interest at the minimum interest
rate for plan years in which the board determines that the obligation
cannot be met from investment earnings. The Gain and Loss Reserve
may also be used to provide additions to the Annuitant Reserve for
monthly annuities payable under the Defined Benefit Supplement
Program.
(b) The board shall establish a goal for the balance of the Gain
and Loss Reserve and periodically shall review the sufficiency of the
reserve based on the recommendations of the actuary.
(c) The board may allocate excess earnings of the plan with
respect to assets attributable to the Defined Benefit Supplement
Program to the Gain and Loss Reserve. In addition, the board may
allocate any liability gains and losses attributable to the Defined
Benefit Supplement Program to the Gain and Loss Reserve. Upon the
recommendation of the actuary, the board shall determine annually the
amount, if any, that is to be allocated to the Gain and Loss Reserve
for that plan year. That determination shall be made upon
recommendation of the actuary after adoption of the actuarial
valuation undertaken following the plan year pursuant to Section
22311.5, but no later than June 30 following the end of the plan
year. In determining whether to allocate excess earnings to the Gain
and Loss Reserve, the board shall consider all of the following:
(1) Whether or not the plan has excess earnings attributable to
the Defined Benefit Supplement Program.
(2) The sufficiency of the Gain and Loss Reserve in light of the
goal established pursuant to subdivision (b).
(3) The amount required for the plan's administrative costs with
respect to the Defined Benefit Supplement Program.
(4) The amount required for crediting members' accounts at the
minimum interest rate.
(d) In determining whether to allocate liability gains and losses
to the Gain and Loss Reserve, the board shall consider the matters
described in paragraphs (2), (3), and (4) of subdivision (c).
25002. The board shall establish and maintain a segregated account
within the retirement fund to be known as the Annuitant Reserve and
the board shall have sole authority over the reserve. The Annuitant
Reserve shall be used for the payment of annuities under the Defined
Benefit Supplement Program. The board shall transfer the balance of
credits in a member's accumulated Defined Benefit Supplement account
to the reserve when a benefit is to be paid as an annuity.
25003. The board may transfer amounts between the Gain and Loss
Reserve and the Annuitant Reserve upon the recommendation of the
actuary.
25004. Member accounts under the Defined Benefit Supplement Program
shall be nominal accounts. Member contributions and employer
contributions on behalf of the member that are specifically
identified as creditable to the Defined Benefit Supplement Program
shall be treated as credits to the member's Defined Benefit
Supplement account, together with interest credited at the minimum
interest rate and additional earnings credit thereon. The balance of
credits in a member's account shall determine the amount to which the
member is entitled under the Defined Benefit Supplement Program upon
termination of employment subject to coverage by the plan. The
member shall not have a right or claim to any specific assets of the
account, program, plan, or retirement fund.
25005. (a) Prior to July 1 of the initial plan year, and prior to
the beginning of each plan year thereafter, the board shall adopt a
plan amendment with respect to the Defined Benefit Supplement Program
to declare the rate at which interest shall be credited to Defined
Benefit Supplement accounts for the following plan year.
(b) The minimum interest rate declared annually by the board shall
be in accordance with applicable federal laws and related
regulations and shall not be less than the rate at which interest is
credited under the Defined Benefit Program.
(c) Interest shall be credited to Defined Benefit Supplement
accounts and shall be computed at the minimum interest rate on the
balance of credits in a member's account and shall be compounded
daily.
(d) Credited interest shall not be applied to the balance of
credits in a member's Defined Benefit Supplement account that has
been transferred to the Annuitant Reserve.
25006. (a) The board may declare an additional earnings credit to
be applied to Defined Benefit Supplement accounts for a plan year.
Prior to declaring an additional earnings credit, the board shall
consider all of the following:
(1) Whether the plan's investment earnings with respect to the
Defined Benefit Supplement Program for the plan year exceed the
amount required to meet the liabilities identified in paragraphs (2),
(3), and (4).
(2) The amount required for the plan year to credit interest on
members' nominal accounts at the minimum interest rate.
(3) The amount of the plan's administrative expenses with respect
to the Defined Benefit Supplement Program for the plan year.
(4) The sufficiency of the Gain and Loss Reserve and whether any
additions must be made to that reserve.
(b) For any plan year that the board declares an additional
earnings credit, the board shall specify the amount to be added to
members' accounts as a percentage increase. The additional earnings
credit shall be applied to the balance of credits in each member's
nominal account as of the last day of the plan year and shall be
applied as of the date specified by the board. The additional
earnings credit shall not be added to the balance of credits
transferred from a member's Defined Benefit Supplement account to the
Annuitant Reserve.
(c) The declaration of an additional earnings credit shall be made
as a plan amendment adopted by the board with respect to the Defined
Benefit Supplement Program upon recommendation of the actuary after
adoption of the actuarial valuation undertaken following the plan
year pursuant to Section 22311.5, but no later than June 30 following
the end of the plan year.
25007. When the board declares an additional earnings credit for a
plan year, the board also may declare by plan amendment an additional
annuity credit, for members and annuity beneficiaries who are
receiving an annuity as of the date specified by the board pursuant
to Section 25006, based on the annuity of the member and annuity
beneficiaries for the plan year. The additional annuity credit shall
be paid in a lump sum to the members and annuity beneficiaries on the
date specified by the board. In addition to the considerations
specified in Section 25006, prior to declaring an additional earnings
credit, the board shall consider both of the following:
(a) The amount required for the plan year to apply the additional
earnings credit to the Defined Benefit Supplement accounts of members
who are not receiving an annuity under the Defined Benefit
Supplement Program for the plan year.
(b) Any other obligations incurred by the plan with respect to the
Defined Benefit Supplement Program.
25008. A member's right to an amount equal to the member's Defined
Benefit Supplement account balance shall be vested at the time
contributions are initially credited to the member's account.
25008.5. Notwithstanding any other law, if (a) a member or
beneficiary whose effective date for a benefit received pursuant to
any other chapter of this part was prior to January 1, 2010, (b) the
member or beneficiary was required to receive a distribution of the
balance of credits from the member's Defined Benefit Supplement
account pursuant to this chapter, and (c) the member or beneficiary
failed to submit an application for the distribution of the member's
Defined Benefit Supplement account prior to January 1, 2010, the
system shall distribute the balance of credits in the member's
Defined Benefit Supplement account in a lump-sum payment to the
member or beneficiary, as applicable, by March 31, 2010.
25001. (a) The board shall establish a segregated account within
the retirement fund to be known as the Gain and Loss Reserve, and the
board shall have sole authority over the reserve. The Gain and Loss
Reserve shall be maintained for the Defined Benefit Supplement
Program and may be used to credit interest at the minimum interest
rate for plan years in which the board determines that the obligation
cannot be met from investment earnings. The Gain and Loss Reserve
may also be used to provide additions to the Annuitant Reserve for
monthly annuities payable under the Defined Benefit Supplement
Program.
(b) The board shall establish a goal for the balance of the Gain
and Loss Reserve and periodically shall review the sufficiency of the
reserve based on the recommendations of the actuary.
(c) The board may allocate excess earnings of the plan with
respect to assets attributable to the Defined Benefit Supplement
Program to the Gain and Loss Reserve. In addition, the board may
allocate any liability gains and losses attributable to the Defined
Benefit Supplement Program to the Gain and Loss Reserve. Upon the
recommendation of the actuary, the board shall determine annually the
amount, if any, that is to be allocated to the Gain and Loss Reserve
for that plan year. That determination shall be made upon
recommendation of the actuary after adoption of the actuarial
valuation undertaken following the plan year pursuant to Section
22311.5, but no later than June 30 following the end of the plan
year. In determining whether to allocate excess earnings to the Gain
and Loss Reserve, the board shall consider all of the following:
(1) Whether or not the plan has excess earnings attributable to
the Defined Benefit Supplement Program.
(2) The sufficiency of the Gain and Loss Reserve in light of the
goal established pursuant to subdivision (b).
(3) The amount required for the plan's administrative costs with
respect to the Defined Benefit Supplement Program.
(4) The amount required for crediting members' accounts at the
minimum interest rate.
(d) In determining whether to allocate liability gains and losses
to the Gain and Loss Reserve, the board shall consider the matters
described in paragraphs (2), (3), and (4) of subdivision (c).
25002. The board shall establish and maintain a segregated account
within the retirement fund to be known as the Annuitant Reserve and
the board shall have sole authority over the reserve. The Annuitant
Reserve shall be used for the payment of annuities under the Defined
Benefit Supplement Program. The board shall transfer the balance of
credits in a member's accumulated Defined Benefit Supplement account
to the reserve when a benefit is to be paid as an annuity.
25003. The board may transfer amounts between the Gain and Loss
Reserve and the Annuitant Reserve upon the recommendation of the
actuary.
25004. Member accounts under the Defined Benefit Supplement Program
shall be nominal accounts. Member contributions and employer
contributions on behalf of the member that are specifically
identified as creditable to the Defined Benefit Supplement Program
shall be treated as credits to the member's Defined Benefit
Supplement account, together with interest credited at the minimum
interest rate and additional earnings credit thereon. The balance of
credits in a member's account shall determine the amount to which the
member is entitled under the Defined Benefit Supplement Program upon
termination of employment subject to coverage by the plan. The
member shall not have a right or claim to any specific assets of the
account, program, plan, or retirement fund.
25005. (a) Prior to July 1 of the initial plan year, and prior to
the beginning of each plan year thereafter, the board shall adopt a
plan amendment with respect to the Defined Benefit Supplement Program
to declare the rate at which interest shall be credited to Defined
Benefit Supplement accounts for the following plan year.
(b) The minimum interest rate declared annually by the board shall
be in accordance with applicable federal laws and related
regulations and shall not be less than the rate at which interest is
credited under the Defined Benefit Program.
(c) Interest shall be credited to Defined Benefit Supplement
accounts and shall be computed at the minimum interest rate on the
balance of credits in a member's account and shall be compounded
daily.
(d) Credited interest shall not be applied to the balance of
credits in a member's Defined Benefit Supplement account that has
been transferred to the Annuitant Reserve.
25006. (a) The board may declare an additional earnings credit to
be applied to Defined Benefit Supplement accounts for a plan year.
Prior to declaring an additional earnings credit, the board shall
consider all of the following:
(1) Whether the plan's investment earnings with respect to the
Defined Benefit Supplement Program for the plan year exceed the
amount required to meet the liabilities identified in paragraphs (2),
(3), and (4).
(2) The amount required for the plan year to credit interest on
members' nominal accounts at the minimum interest rate.
(3) The amount of the plan's administrative expenses with respect
to the Defined Benefit Supplement Program for the plan year.
(4) The sufficiency of the Gain and Loss Reserve and whether any
additions must be made to that reserve.
(b) For any plan year that the board declares an additional
earnings credit, the board shall specify the amount to be added to
members' accounts as a percentage increase. The additional earnings
credit shall be applied to the balance of credits in each member's
nominal account as of the last day of the plan year and shall be
applied as of the date specified by the board. The additional
earnings credit shall not be added to the balance of credits
transferred from a member's Defined Benefit Supplement account to the
Annuitant Reserve.
(c) The declaration of an additional earnings credit shall be made
as a plan amendment adopted by the board with respect to the Defined
Benefit Supplement Program upon recommendation of the actuary after
adoption of the actuarial valuation undertaken following the plan
year pursuant to Section 22311.5, but no later than June 30 following
the end of the plan year.
25007. When the board declares an additional earnings credit for a
plan year, the board also may declare by plan amendment an additional
annuity credit, for members and annuity beneficiaries who are
receiving an annuity as of the date specified by the board pursuant
to Section 25006, based on the annuity of the member and annuity
beneficiaries for the plan year. The additional annuity credit shall
be paid in a lump sum to the members and annuity beneficiaries on the
date specified by the board. In addition to the considerations
specified in Section 25006, prior to declaring an additional earnings
credit, the board shall consider both of the following:
(a) The amount required for the plan year to apply the additional
earnings credit to the Defined Benefit Supplement accounts of members
who are not receiving an annuity under the Defined Benefit
Supplement Program for the plan year.
(b) Any other obligations incurred by the plan with respect to the
Defined Benefit Supplement Program.
25008. A member's right to an amount equal to the member's Defined
Benefit Supplement account balance shall be vested at the time
contributions are initially credited to the member's account.
25008.5. Notwithstanding any other law, if (a) a member or
beneficiary whose effective date for a benefit received pursuant to
any other chapter of this part was prior to January 1, 2010, (b) the
member or beneficiary was required to receive a distribution of the
balance of credits from the member's Defined Benefit Supplement
account pursuant to this chapter, and (c) the member or beneficiary
failed to submit an application for the distribution of the member's
Defined Benefit Supplement account prior to January 1, 2010, the
system shall distribute the balance of credits in the member's
Defined Benefit Supplement account in a lump-sum payment to the
member or beneficiary, as applicable, by March 31, 2010.
