26900. A participant may apply to receive a disability benefit
under this part at any time.
26901. Application for a disability benefit under this part shall
be made by the participant, or the guardian or conservator of the
participant, on a form prescribed by the system.
26902. (a) A disability benefit under this part shall become
payable only upon determination by the board that the participant has
a total and permanent disability. The board shall require current
relevant medical reports by licensed practitioners, including the
report of the treating physician, and may make any inquiries
necessary to the determination of total and permanent disability.
Failure of the participant, or the participant's guardian or
conservator, to provide any documents, complete any forms, or respond
to any questions from the board within 45 days of the request may be
cause for rejection of the application.
(b) Upon determination by the board that the participant does not
have a total and permanent disability, the application for disability
benefit, and any designation of beneficiary for the benefit, shall
be automatically canceled.
26903. All creditable service subject to coverage by the Cash
Balance Benefit Program and Defined Benefit Program shall be
terminated prior to the disability date.
26904. The disability benefit is a benefit for total and permanent
disability that is an amount equal to the sum of the employee account
and the employer account as of the disability date.
26905. The normal form of disability benefit under this part is a
lump-sum payment. Upon distribution of the lump-sum payment to the
participant, no further benefits shall be payable from the Cash
Balance Benefit Program.
26906. (a) Upon application for a disability benefit under this
part, the participant may elect to receive the disability benefit in
the form of an annuity provided the sum of the employee account and
employer account equals or exceeds three thousand five hundred
dollars ($3,500).
(b) If the participant elects to receive the disability benefit as
an annuity, the participant shall elect one of the following forms
of payment:
(1) A single life annuity without a cash refund feature. This form
of payment is the actuarial equivalent of the amount that would be
payable to the participant if the participant elected to receive the
disability benefit in a lump-sum payment. This benefit shall be
payable for the life of the participant. Upon the death of the
participant, no other benefit shall be payable to any beneficiary
under this part.
(2) A single life annuity with a cash refund feature. This form of
payment is the actuarial equivalent of the amount that would be
payable to the participant if the participant elected to receive the
disability benefit in a lump-sum payment. This benefit shall be
payable for the life of the participant and any balance remaining
upon the death of the participant shall be payable in a lump sum to
the participant's beneficiary.
(3) A 100-percent joint and survivor annuity with a "pop-up"
feature. This form of payment is the actuarial equivalent of the
amount that would be payable to the participant if the participant
elected to receive the disability benefit in a lump-sum payment,
modified to be payable over the combined lives of the participant and
the participant's annuity beneficiary. Upon the death of the
participant, the monthly amount that was payable to the participant
shall be paid monthly to the participant's annuity beneficiary.
However, if the annuity beneficiary predeceases the participant, the
annuity payable to the participant shall be the single life annuity
with a cash refund feature that would have been payable had the
participant elected that form of payment at the commencement of the
benefit. That single life annuity shall be payable as of the day
following the date of the annuity beneficiary's death upon receipt by
the system of proof of the annuity beneficiary's death. If the
annuity beneficiary predeceases the participant, the participant may
designate a new annuity beneficiary. The effective date of the new
designation shall be six months following the date notification, on a
properly executed form, is received by the board, provided both the
participant and the new designated annuity beneficiary are then
living. The designation of the new annuity beneficiary under this
paragraph shall be subject to an actuarial modification of the single
life annuity with a cash refund feature and shall not result in any
additional liability to the fund. The new annuity beneficiary shall
not be an existing annuity beneficiary.
(4) A 50-percent joint and survivor annuity with a "pop-up"
feature. This form of payment is the actuarial equivalent of the
amount that would be payable to the participant if the participant
elected to receive the disability benefit in a lump-sum payment,
modified to be payable over the combined lives of the participant and
the participant's annuity beneficiary. Upon the death of the
participant, one-half of the monthly amount that was payable to the
participant shall be paid monthly to the participant's annuity
beneficiary. However, if the annuity beneficiary predeceases the
participant, the annuity payable to the participant shall be the
single life annuity with a cash refund feature that would have been
payable had the participant elected that form of payment at the
commencement of the benefit. That single life annuity shall be
payable as of the day following the date of the annuity beneficiary's
death upon receipt by the system of proof of the annuity beneficiary'
s death. If the annuity beneficiary predeceases the participant, the
participant may designate a new annuity beneficiary. The effective
date of the new designation shall be six months following the date
notification, on a properly executed form, is received by the board,
provided both the participant and the new designated annuity
beneficiary are then living. The designation of the new annuity
beneficiary under this paragraph shall be subject to an actuarial
modification of the single life annuity with a cash refund feature
and shall not result in any additional liability to the fund. The new
annuity beneficiary shall not be an existing annuity beneficiary.
(5) A period certain annuity. This form of payment is an annuity
equal to the actuarial equivalent of the sum of balance of the
employee account and the employer account on the date the disability
benefit becomes payable. The annuity shall be payable in whole year
increments over a period of years specified by the participant, from
a minimum of three years to a maximum of 10 years. However, the
annuity period may not exceed the life expectancy of the participant
or of the participant and the participant's annuity beneficiary. If
the participant's death occurs prior to the end of the period
certain, the remaining balance of payments shall be paid to the
participant's annuity beneficiary pursuant to Section 27007.
(c) Except as described in subdivision (c) of Section 26906.5, on
or after January 1, 2007, a participant may not make a new election
of an annuity described in subdivision (b).
26906.5. (a) Upon application for a disability benefit under this
part, the participant may elect to receive the disabled benefit in
the form of an annuity provided the sum of the employee account and
employer account equals or exceeds three thousand five hundred
dollars ($3,500). If the participant elects to receive the disability
benefit as an annuity, the participant shall elect one of the
following forms of payment:
(1) Participant only annuity. This is a single life annuity with a
cash refund feature that is the actuarial equivalent of the amount
that would be payable to the participant if the participant elected
to receive the disability benefit in a lump-sum payment. Upon the
death of the participant, an amount equal to the remaining balance of
the participant's contributions and interest shall be paid in a lump
sum to the participant's beneficiary.
(2) One hundred percent beneficiary annuity. This is a joint and
survivor annuity that is the actuarial equivalent of the lump-sum
payment modified to be payable over the combined lives of the
participant and the participant's annuity beneficiary. Upon the death
of the participant, 100 percent of the monthly amount that was
payable to the participant shall be paid monthly to the participant's
surviving annuity beneficiary.
(3) Seventy-five percent beneficiary annuity. This is a joint and
survivor annuity that is the actuarial equivalent of the lump-sum
payment modified to be payable over the combined lives of the
participant and the participant's annuity beneficiary. Pursuant to
Section 401(a)(9) of the Internal Revenue Code, unless the annuity
beneficiary is the participant's spouse or former spouse who has been
awarded a community property interest in the participant's benefits
under this part, the participant may not designate an annuity
beneficiary under this annuity who is more than exactly 19 years
younger than the participant. Upon the death of the participant, 75
percent of the monthly amount that was payable to the participant
shall be paid monthly to the participant's surviving annuity
beneficiary.
(4) Fifty percent beneficiary annuity. This is a joint and
survivor annuity that is the actuarial equivalent of the lump-sum
payment modified to be payable over the combined lives of the
participant and the participant's annuity beneficiary. Upon the death
of the participant, 50 percent of the monthly amount that was
payable to the participant shall be paid monthly to the participant's
surviving annuity beneficiary.
(5) A period certain annuity. This form of payment is an annuity
that is equal to the actuarial equivalent of the balance of credits
in the participant's Cash Balance Benefit account on the date the
disability benefit becomes payable. The annuity shall be payable in
whole year increments over a period of years specified by the
participant, from a minimum of three years to a maximum of 10 years.
However, the annuity period may not exceed the life expectancy of the
participant or of the participant and the participant's annuity
beneficiary. If the participant's death occurs prior to the end of
the period certain, the remaining balance of payments shall be paid
to the participant's annuity beneficiary pursuant to Section 27007.
(b) If an annuity beneficiary designated pursuant to paragraph
(2), (3), or (4) of subdivision (a) predeceases the participant, the
annuity shall be paid to the participant as the participant only
annuity described in paragraph (1) of subdivision (a) that would have
been payable had the participant elected that form of payment at the
commencement of the benefit. That participant only annuity shall be
payable as of the day following the date of the annuity beneficiary's
death upon receipt by the system of proof of the annuity beneficiary'
s death. If the annuity beneficiary predeceases the participant, the
participant may designate a new annuity beneficiary. The effective
date of the new designation shall be six months following the date
notification is received by the board, provided both the participant
and the new designated annuity beneficiary are then living. Notice to
the board of the death of the annuity beneficiary shall be on a
properly executed form provided by the system. The designation of the
new annuity beneficiary under this paragraph is subject to an
actuarial modification of the participant only annuity and may not
result in any additional liability to the fund.
(c) Notwithstanding Section 297 or 299.2 of the Family Code, a
spouse as described in paragraph (3) of subdivision (a) does not
include the domestic partner of the participant pursuant to Section 7
of Title 1 of the United States Code.
(d) If there is a determination of community property rights as
described in Chapter 15 (commencing with Section 27400) of this part
on or before December 31, 2006, the participant may elect the annuity
that is required by the judgment or court order. Nothing in this
part shall permit the participant to change the annuity to the
detriment of the community property interest of the nonparticipant
spouse.
26906.6. (a) A participant who is disabled and elected an annuity
pursuant to Section 26906 may elect to change annuities, subject to
all of the following:
(1) A participant who elected a single life annuity with or
without a cash refund feature or a period certain annuity may not
change his or her annuity.
(2) A participant who elected an annuity under paragraph (3) or
(4) of subdivision (b) of Section 26906 may elect an annuity under
paragraph (3) of subdivision (a) of Section 26906.5.
(3) The election by the participant under this section is made on
or after January 1, 2007, and prior to July 1, 2007.
(4) The participant designates the same annuity beneficiary that
was designated under the prior annuity elected by the participant, if
the annuity and the annuity beneficiary designation were effective
on December 31, 2006.
(5) The annuity beneficiary is not afflicted with a known terminal
illness and the participant declares, under penalty of perjury under
the laws of this state, that to the best of his or her knowledge,
the annuity beneficiary is not afflicted with a known terminal
illness.
(6) The annuity beneficiary has not predeceased the participant as
of the effective date of the change in the annuity by the
participant.
(b) The change in the annuity by the participant shall be
effective on the date the election is signed, provided that the
election is on a properly executed form provided by the system and
that election is received at the system's headquarters office as
described in Section 22375 within 30 days after the date the election
is signed.
(c) After receipt of a participant's election document, the system
shall mail an acknowledgment notice to the participant that sets
forth the new annuity elected by the participant.
(d) If the participant and the annuity beneficiary are alive and
not afflicted with a known terminal illness, a participant may cancel
the election to change annuities and elect to receive the benefit
according to the preexisting annuity election. After cancellation,
the participant may elect to make a one-time change from the
preexisting annuity to any other annuity provided by and subject to
the restrictions of paragraph (1), (2), (3), or (4) of subdivision
(a). The cancellation or the cancellation and one-time change shall
be made on a properly executed form provided by the system and shall
be received at the system's headquarters office as described in
Section 22375 no later than 30 calendar days following the date of
mailing of the acknowledgment notice. If the participant elects to
make the one-time change provided by this subdivision, the change
shall be effective as of the participant's signature date on the
initial election to change.
(e) If the system is unable to mail an acknowledgment notice to
the participant on or before June 1, 2007, or prior to the end of the
election period, provided that the participant and the annuity
beneficiary are alive and not afflicted with a known terminal
illness, the system shall allow a participant to cancel the election
to change annuities and elect to receive the benefit according to the
preexisting annuity election. After cancellation, the participant
may elect to make a one-time change from the preexisting annuity to
any other annuity provided by and subject to the restrictions of
paragraph (1), (2), (3), or (4) of subdivision (a). The cancellation
or the cancellation and one-time change may be made after the end of
the election period if it is made on a properly executed form
provided by the system and is received at the system's headquarters
office as described in Section 22375 no later than 30 calendar days
following the date of mailing of the acknowledgment notice. If the
participant elects to make the one-time change provided by this
subdivision, the change shall be effective as of the participant's
signature date on the initial election to change.
(f) If the participant elects to change his or her annuity as
described in subdivision (a) or (d), the participant's annuity shall
be modified in a manner determined by the board to prevent any
additional liability to the plan.
(g) The participant shall not change annuities in derogation of a
spouse's or former spouse's community property rights as specified in
a court order.
26907. The annuity under this chapter shall be determined as a
value actuarially equivalent to the sum of the employee account and
the employer account as of the disability date. The annuity shall be
calculated using the age of the participant and, if the participant
elected a joint and survivor option, the age of the beneficiary on
the disability date.
26908. Upon election of an annuity under this part, the credits in
the participant's employee account and employer account shall be
transferred to the Annuitant Reserve.
26910. The beneficiary under the joint and survivor option elected
pursuant to paragraph (3) or paragraph (4) of subdivision (b) of
Section 26906 or paragraph (2) or (4) of subdivision (a) of Section
26906.5 shall be the person designated by the participant on the
application for a disability benefit and shall not be changed after
the original disability date unless the beneficiary predeceases the
participant.
26911. If a participant who is receiving a disability annuity under
this part becomes reemployed prior to 60 years of age to perform
creditable service subject to coverage by the Cash Balance Benefit
Program or the Defined Benefit Program, the disability annuity shall
be terminated. The participant's employee account and employer
account shall be credited with the actuarial equivalent of the
participant's annuity as of the date of reemployment and the
Annuitant Reserve shall be reduced by the amount credited to those
accounts.
26900. A participant may apply to receive a disability benefit
under this part at any time.
26901. Application for a disability benefit under this part shall
be made by the participant, or the guardian or conservator of the
participant, on a form prescribed by the system.
26902. (a) A disability benefit under this part shall become
payable only upon determination by the board that the participant has
a total and permanent disability. The board shall require current
relevant medical reports by licensed practitioners, including the
report of the treating physician, and may make any inquiries
necessary to the determination of total and permanent disability.
Failure of the participant, or the participant's guardian or
conservator, to provide any documents, complete any forms, or respond
to any questions from the board within 45 days of the request may be
cause for rejection of the application.
(b) Upon determination by the board that the participant does not
have a total and permanent disability, the application for disability
benefit, and any designation of beneficiary for the benefit, shall
be automatically canceled.
26903. All creditable service subject to coverage by the Cash
Balance Benefit Program and Defined Benefit Program shall be
terminated prior to the disability date.
26904. The disability benefit is a benefit for total and permanent
disability that is an amount equal to the sum of the employee account
and the employer account as of the disability date.
26905. The normal form of disability benefit under this part is a
lump-sum payment. Upon distribution of the lump-sum payment to the
participant, no further benefits shall be payable from the Cash
Balance Benefit Program.
26906. (a) Upon application for a disability benefit under this
part, the participant may elect to receive the disability benefit in
the form of an annuity provided the sum of the employee account and
employer account equals or exceeds three thousand five hundred
dollars ($3,500).
(b) If the participant elects to receive the disability benefit as
an annuity, the participant shall elect one of the following forms
of payment:
(1) A single life annuity without a cash refund feature. This form
of payment is the actuarial equivalent of the amount that would be
payable to the participant if the participant elected to receive the
disability benefit in a lump-sum payment. This benefit shall be
payable for the life of the participant. Upon the death of the
participant, no other benefit shall be payable to any beneficiary
under this part.
(2) A single life annuity with a cash refund feature. This form of
payment is the actuarial equivalent of the amount that would be
payable to the participant if the participant elected to receive the
disability benefit in a lump-sum payment. This benefit shall be
payable for the life of the participant and any balance remaining
upon the death of the participant shall be payable in a lump sum to
the participant's beneficiary.
(3) A 100-percent joint and survivor annuity with a "pop-up"
feature. This form of payment is the actuarial equivalent of the
amount that would be payable to the participant if the participant
elected to receive the disability benefit in a lump-sum payment,
modified to be payable over the combined lives of the participant and
the participant's annuity beneficiary. Upon the death of the
participant, the monthly amount that was payable to the participant
shall be paid monthly to the participant's annuity beneficiary.
However, if the annuity beneficiary predeceases the participant, the
annuity payable to the participant shall be the single life annuity
with a cash refund feature that would have been payable had the
participant elected that form of payment at the commencement of the
benefit. That single life annuity shall be payable as of the day
following the date of the annuity beneficiary's death upon receipt by
the system of proof of the annuity beneficiary's death. If the
annuity beneficiary predeceases the participant, the participant may
designate a new annuity beneficiary. The effective date of the new
designation shall be six months following the date notification, on a
properly executed form, is received by the board, provided both the
participant and the new designated annuity beneficiary are then
living. The designation of the new annuity beneficiary under this
paragraph shall be subject to an actuarial modification of the single
life annuity with a cash refund feature and shall not result in any
additional liability to the fund. The new annuity beneficiary shall
not be an existing annuity beneficiary.
(4) A 50-percent joint and survivor annuity with a "pop-up"
feature. This form of payment is the actuarial equivalent of the
amount that would be payable to the participant if the participant
elected to receive the disability benefit in a lump-sum payment,
modified to be payable over the combined lives of the participant and
the participant's annuity beneficiary. Upon the death of the
participant, one-half of the monthly amount that was payable to the
participant shall be paid monthly to the participant's annuity
beneficiary. However, if the annuity beneficiary predeceases the
participant, the annuity payable to the participant shall be the
single life annuity with a cash refund feature that would have been
payable had the participant elected that form of payment at the
commencement of the benefit. That single life annuity shall be
payable as of the day following the date of the annuity beneficiary's
death upon receipt by the system of proof of the annuity beneficiary'
s death. If the annuity beneficiary predeceases the participant, the
participant may designate a new annuity beneficiary. The effective
date of the new designation shall be six months following the date
notification, on a properly executed form, is received by the board,
provided both the participant and the new designated annuity
beneficiary are then living. The designation of the new annuity
beneficiary under this paragraph shall be subject to an actuarial
modification of the single life annuity with a cash refund feature
and shall not result in any additional liability to the fund. The new
annuity beneficiary shall not be an existing annuity beneficiary.
(5) A period certain annuity. This form of payment is an annuity
equal to the actuarial equivalent of the sum of balance of the
employee account and the employer account on the date the disability
benefit becomes payable. The annuity shall be payable in whole year
increments over a period of years specified by the participant, from
a minimum of three years to a maximum of 10 years. However, the
annuity period may not exceed the life expectancy of the participant
or of the participant and the participant's annuity beneficiary. If
the participant's death occurs prior to the end of the period
certain, the remaining balance of payments shall be paid to the
participant's annuity beneficiary pursuant to Section 27007.
(c) Except as described in subdivision (c) of Section 26906.5, on
or after January 1, 2007, a participant may not make a new election
of an annuity described in subdivision (b).
26906.5. (a) Upon application for a disability benefit under this
part, the participant may elect to receive the disabled benefit in
the form of an annuity provided the sum of the employee account and
employer account equals or exceeds three thousand five hundred
dollars ($3,500). If the participant elects to receive the disability
benefit as an annuity, the participant shall elect one of the
following forms of payment:
(1) Participant only annuity. This is a single life annuity with a
cash refund feature that is the actuarial equivalent of the amount
that would be payable to the participant if the participant elected
to receive the disability benefit in a lump-sum payment. Upon the
death of the participant, an amount equal to the remaining balance of
the participant's contributions and interest shall be paid in a lump
sum to the participant's beneficiary.
(2) One hundred percent beneficiary annuity. This is a joint and
survivor annuity that is the actuarial equivalent of the lump-sum
payment modified to be payable over the combined lives of the
participant and the participant's annuity beneficiary. Upon the death
of the participant, 100 percent of the monthly amount that was
payable to the participant shall be paid monthly to the participant's
surviving annuity beneficiary.
(3) Seventy-five percent beneficiary annuity. This is a joint and
survivor annuity that is the actuarial equivalent of the lump-sum
payment modified to be payable over the combined lives of the
participant and the participant's annuity beneficiary. Pursuant to
Section 401(a)(9) of the Internal Revenue Code, unless the annuity
beneficiary is the participant's spouse or former spouse who has been
awarded a community property interest in the participant's benefits
under this part, the participant may not designate an annuity
beneficiary under this annuity who is more than exactly 19 years
younger than the participant. Upon the death of the participant, 75
percent of the monthly amount that was payable to the participant
shall be paid monthly to the participant's surviving annuity
beneficiary.
(4) Fifty percent beneficiary annuity. This is a joint and
survivor annuity that is the actuarial equivalent of the lump-sum
payment modified to be payable over the combined lives of the
participant and the participant's annuity beneficiary. Upon the death
of the participant, 50 percent of the monthly amount that was
payable to the participant shall be paid monthly to the participant's
surviving annuity beneficiary.
(5) A period certain annuity. This form of payment is an annuity
that is equal to the actuarial equivalent of the balance of credits
in the participant's Cash Balance Benefit account on the date the
disability benefit becomes payable. The annuity shall be payable in
whole year increments over a period of years specified by the
participant, from a minimum of three years to a maximum of 10 years.
However, the annuity period may not exceed the life expectancy of the
participant or of the participant and the participant's annuity
beneficiary. If the participant's death occurs prior to the end of
the period certain, the remaining balance of payments shall be paid
to the participant's annuity beneficiary pursuant to Section 27007.
(b) If an annuity beneficiary designated pursuant to paragraph
(2), (3), or (4) of subdivision (a) predeceases the participant, the
annuity shall be paid to the participant as the participant only
annuity described in paragraph (1) of subdivision (a) that would have
been payable had the participant elected that form of payment at the
commencement of the benefit. That participant only annuity shall be
payable as of the day following the date of the annuity beneficiary's
death upon receipt by the system of proof of the annuity beneficiary'
s death. If the annuity beneficiary predeceases the participant, the
participant may designate a new annuity beneficiary. The effective
date of the new designation shall be six months following the date
notification is received by the board, provided both the participant
and the new designated annuity beneficiary are then living. Notice to
the board of the death of the annuity beneficiary shall be on a
properly executed form provided by the system. The designation of the
new annuity beneficiary under this paragraph is subject to an
actuarial modification of the participant only annuity and may not
result in any additional liability to the fund.
(c) Notwithstanding Section 297 or 299.2 of the Family Code, a
spouse as described in paragraph (3) of subdivision (a) does not
include the domestic partner of the participant pursuant to Section 7
of Title 1 of the United States Code.
(d) If there is a determination of community property rights as
described in Chapter 15 (commencing with Section 27400) of this part
on or before December 31, 2006, the participant may elect the annuity
that is required by the judgment or court order. Nothing in this
part shall permit the participant to change the annuity to the
detriment of the community property interest of the nonparticipant
spouse.
26906.6. (a) A participant who is disabled and elected an annuity
pursuant to Section 26906 may elect to change annuities, subject to
all of the following:
(1) A participant who elected a single life annuity with or
without a cash refund feature or a period certain annuity may not
change his or her annuity.
(2) A participant who elected an annuity under paragraph (3) or
(4) of subdivision (b) of Section 26906 may elect an annuity under
paragraph (3) of subdivision (a) of Section 26906.5.
(3) The election by the participant under this section is made on
or after January 1, 2007, and prior to July 1, 2007.
(4) The participant designates the same annuity beneficiary that
was designated under the prior annuity elected by the participant, if
the annuity and the annuity beneficiary designation were effective
on December 31, 2006.
(5) The annuity beneficiary is not afflicted with a known terminal
illness and the participant declares, under penalty of perjury under
the laws of this state, that to the best of his or her knowledge,
the annuity beneficiary is not afflicted with a known terminal
illness.
(6) The annuity beneficiary has not predeceased the participant as
of the effective date of the change in the annuity by the
participant.
(b) The change in the annuity by the participant shall be
effective on the date the election is signed, provided that the
election is on a properly executed form provided by the system and
that election is received at the system's headquarters office as
described in Section 22375 within 30 days after the date the election
is signed.
(c) After receipt of a participant's election document, the system
shall mail an acknowledgment notice to the participant that sets
forth the new annuity elected by the participant.
(d) If the participant and the annuity beneficiary are alive and
not afflicted with a known terminal illness, a participant may cancel
the election to change annuities and elect to receive the benefit
according to the preexisting annuity election. After cancellation,
the participant may elect to make a one-time change from the
preexisting annuity to any other annuity provided by and subject to
the restrictions of paragraph (1), (2), (3), or (4) of subdivision
(a). The cancellation or the cancellation and one-time change shall
be made on a properly executed form provided by the system and shall
be received at the system's headquarters office as described in
Section 22375 no later than 30 calendar days following the date of
mailing of the acknowledgment notice. If the participant elects to
make the one-time change provided by this subdivision, the change
shall be effective as of the participant's signature date on the
initial election to change.
(e) If the system is unable to mail an acknowledgment notice to
the participant on or before June 1, 2007, or prior to the end of the
election period, provided that the participant and the annuity
beneficiary are alive and not afflicted with a known terminal
illness, the system shall allow a participant to cancel the election
to change annuities and elect to receive the benefit according to the
preexisting annuity election. After cancellation, the participant
may elect to make a one-time change from the preexisting annuity to
any other annuity provided by and subject to the restrictions of
paragraph (1), (2), (3), or (4) of subdivision (a). The cancellation
or the cancellation and one-time change may be made after the end of
the election period if it is made on a properly executed form
provided by the system and is received at the system's headquarters
office as described in Section 22375 no later than 30 calendar days
following the date of mailing of the acknowledgment notice. If the
participant elects to make the one-time change provided by this
subdivision, the change shall be effective as of the participant's
signature date on the initial election to change.
(f) If the participant elects to change his or her annuity as
described in subdivision (a) or (d), the participant's annuity shall
be modified in a manner determined by the board to prevent any
additional liability to the plan.
(g) The participant shall not change annuities in derogation of a
spouse's or former spouse's community property rights as specified in
a court order.
26907. The annuity under this chapter shall be determined as a
value actuarially equivalent to the sum of the employee account and
the employer account as of the disability date. The annuity shall be
calculated using the age of the participant and, if the participant
elected a joint and survivor option, the age of the beneficiary on
the disability date.
26908. Upon election of an annuity under this part, the credits in
the participant's employee account and employer account shall be
transferred to the Annuitant Reserve.
26910. The beneficiary under the joint and survivor option elected
pursuant to paragraph (3) or paragraph (4) of subdivision (b) of
Section 26906 or paragraph (2) or (4) of subdivision (a) of Section
26906.5 shall be the person designated by the participant on the
application for a disability benefit and shall not be changed after
the original disability date unless the beneficiary predeceases the
participant.
26911. If a participant who is receiving a disability annuity under
this part becomes reemployed prior to 60 years of age to perform
creditable service subject to coverage by the Cash Balance Benefit
Program or the Defined Benefit Program, the disability annuity shall
be terminated. The participant's employee account and employer
account shall be credited with the actuarial equivalent of the
participant's annuity as of the date of reemployment and the
Annuitant Reserve shall be reduced by the amount credited to those
accounts.
26900. A participant may apply to receive a disability benefit
under this part at any time.
26901. Application for a disability benefit under this part shall
be made by the participant, or the guardian or conservator of the
participant, on a form prescribed by the system.
26902. (a) A disability benefit under this part shall become
payable only upon determination by the board that the participant has
a total and permanent disability. The board shall require current
relevant medical reports by licensed practitioners, including the
report of the treating physician, and may make any inquiries
necessary to the determination of total and permanent disability.
Failure of the participant, or the participant's guardian or
conservator, to provide any documents, complete any forms, or respond
to any questions from the board within 45 days of the request may be
cause for rejection of the application.
(b) Upon determination by the board that the participant does not
have a total and permanent disability, the application for disability
benefit, and any designation of beneficiary for the benefit, shall
be automatically canceled.
26903. All creditable service subject to coverage by the Cash
Balance Benefit Program and Defined Benefit Program shall be
terminated prior to the disability date.
26904. The disability benefit is a benefit for total and permanent
disability that is an amount equal to the sum of the employee account
and the employer account as of the disability date.
26905. The normal form of disability benefit under this part is a
lump-sum payment. Upon distribution of the lump-sum payment to the
participant, no further benefits shall be payable from the Cash
Balance Benefit Program.
26906. (a) Upon application for a disability benefit under this
part, the participant may elect to receive the disability benefit in
the form of an annuity provided the sum of the employee account and
employer account equals or exceeds three thousand five hundred
dollars ($3,500).
(b) If the participant elects to receive the disability benefit as
an annuity, the participant shall elect one of the following forms
of payment:
(1) A single life annuity without a cash refund feature. This form
of payment is the actuarial equivalent of the amount that would be
payable to the participant if the participant elected to receive the
disability benefit in a lump-sum payment. This benefit shall be
payable for the life of the participant. Upon the death of the
participant, no other benefit shall be payable to any beneficiary
under this part.
(2) A single life annuity with a cash refund feature. This form of
payment is the actuarial equivalent of the amount that would be
payable to the participant if the participant elected to receive the
disability benefit in a lump-sum payment. This benefit shall be
payable for the life of the participant and any balance remaining
upon the death of the participant shall be payable in a lump sum to
the participant's beneficiary.
(3) A 100-percent joint and survivor annuity with a "pop-up"
feature. This form of payment is the actuarial equivalent of the
amount that would be payable to the participant if the participant
elected to receive the disability benefit in a lump-sum payment,
modified to be payable over the combined lives of the participant and
the participant's annuity beneficiary. Upon the death of the
participant, the monthly amount that was payable to the participant
shall be paid monthly to the participant's annuity beneficiary.
However, if the annuity beneficiary predeceases the participant, the
annuity payable to the participant shall be the single life annuity
with a cash refund feature that would have been payable had the
participant elected that form of payment at the commencement of the
benefit. That single life annuity shall be payable as of the day
following the date of the annuity beneficiary's death upon receipt by
the system of proof of the annuity beneficiary's death. If the
annuity beneficiary predeceases the participant, the participant may
designate a new annuity beneficiary. The effective date of the new
designation shall be six months following the date notification, on a
properly executed form, is received by the board, provided both the
participant and the new designated annuity beneficiary are then
living. The designation of the new annuity beneficiary under this
paragraph shall be subject to an actuarial modification of the single
life annuity with a cash refund feature and shall not result in any
additional liability to the fund. The new annuity beneficiary shall
not be an existing annuity beneficiary.
(4) A 50-percent joint and survivor annuity with a "pop-up"
feature. This form of payment is the actuarial equivalent of the
amount that would be payable to the participant if the participant
elected to receive the disability benefit in a lump-sum payment,
modified to be payable over the combined lives of the participant and
the participant's annuity beneficiary. Upon the death of the
participant, one-half of the monthly amount that was payable to the
participant shall be paid monthly to the participant's annuity
beneficiary. However, if the annuity beneficiary predeceases the
participant, the annuity payable to the participant shall be the
single life annuity with a cash refund feature that would have been
payable had the participant elected that form of payment at the
commencement of the benefit. That single life annuity shall be
payable as of the day following the date of the annuity beneficiary's
death upon receipt by the system of proof of the annuity beneficiary'
s death. If the annuity beneficiary predeceases the participant, the
participant may designate a new annuity beneficiary. The effective
date of the new designation shall be six months following the date
notification, on a properly executed form, is received by the board,
provided both the participant and the new designated annuity
beneficiary are then living. The designation of the new annuity
beneficiary under this paragraph shall be subject to an actuarial
modification of the single life annuity with a cash refund feature
and shall not result in any additional liability to the fund. The new
annuity beneficiary shall not be an existing annuity beneficiary.
(5) A period certain annuity. This form of payment is an annuity
equal to the actuarial equivalent of the sum of balance of the
employee account and the employer account on the date the disability
benefit becomes payable. The annuity shall be payable in whole year
increments over a period of years specified by the participant, from
a minimum of three years to a maximum of 10 years. However, the
annuity period may not exceed the life expectancy of the participant
or of the participant and the participant's annuity beneficiary. If
the participant's death occurs prior to the end of the period
certain, the remaining balance of payments shall be paid to the
participant's annuity beneficiary pursuant to Section 27007.
(c) Except as described in subdivision (c) of Section 26906.5, on
or after January 1, 2007, a participant may not make a new election
of an annuity described in subdivision (b).
26906.5. (a) Upon application for a disability benefit under this
part, the participant may elect to receive the disabled benefit in
the form of an annuity provided the sum of the employee account and
employer account equals or exceeds three thousand five hundred
dollars ($3,500). If the participant elects to receive the disability
benefit as an annuity, the participant shall elect one of the
following forms of payment:
(1) Participant only annuity. This is a single life annuity with a
cash refund feature that is the actuarial equivalent of the amount
that would be payable to the participant if the participant elected
to receive the disability benefit in a lump-sum payment. Upon the
death of the participant, an amount equal to the remaining balance of
the participant's contributions and interest shall be paid in a lump
sum to the participant's beneficiary.
(2) One hundred percent beneficiary annuity. This is a joint and
survivor annuity that is the actuarial equivalent of the lump-sum
payment modified to be payable over the combined lives of the
participant and the participant's annuity beneficiary. Upon the death
of the participant, 100 percent of the monthly amount that was
payable to the participant shall be paid monthly to the participant's
surviving annuity beneficiary.
(3) Seventy-five percent beneficiary annuity. This is a joint and
survivor annuity that is the actuarial equivalent of the lump-sum
payment modified to be payable over the combined lives of the
participant and the participant's annuity beneficiary. Pursuant to
Section 401(a)(9) of the Internal Revenue Code, unless the annuity
beneficiary is the participant's spouse or former spouse who has been
awarded a community property interest in the participant's benefits
under this part, the participant may not designate an annuity
beneficiary under this annuity who is more than exactly 19 years
younger than the participant. Upon the death of the participant, 75
percent of the monthly amount that was payable to the participant
shall be paid monthly to the participant's surviving annuity
beneficiary.
(4) Fifty percent beneficiary annuity. This is a joint and
survivor annuity that is the actuarial equivalent of the lump-sum
payment modified to be payable over the combined lives of the
participant and the participant's annuity beneficiary. Upon the death
of the participant, 50 percent of the monthly amount that was
payable to the participant shall be paid monthly to the participant's
surviving annuity beneficiary.
(5) A period certain annuity. This form of payment is an annuity
that is equal to the actuarial equivalent of the balance of credits
in the participant's Cash Balance Benefit account on the date the
disability benefit becomes payable. The annuity shall be payable in
whole year increments over a period of years specified by the
participant, from a minimum of three years to a maximum of 10 years.
However, the annuity period may not exceed the life expectancy of the
participant or of the participant and the participant's annuity
beneficiary. If the participant's death occurs prior to the end of
the period certain, the remaining balance of payments shall be paid
to the participant's annuity beneficiary pursuant to Section 27007.
(b) If an annuity beneficiary designated pursuant to paragraph
(2), (3), or (4) of subdivision (a) predeceases the participant, the
annuity shall be paid to the participant as the participant only
annuity described in paragraph (1) of subdivision (a) that would have
been payable had the participant elected that form of payment at the
commencement of the benefit. That participant only annuity shall be
payable as of the day following the date of the annuity beneficiary's
death upon receipt by the system of proof of the annuity beneficiary'
s death. If the annuity beneficiary predeceases the participant, the
participant may designate a new annuity beneficiary. The effective
date of the new designation shall be six months following the date
notification is received by the board, provided both the participant
and the new designated annuity beneficiary are then living. Notice to
the board of the death of the annuity beneficiary shall be on a
properly executed form provided by the system. The designation of the
new annuity beneficiary under this paragraph is subject to an
actuarial modification of the participant only annuity and may not
result in any additional liability to the fund.
(c) Notwithstanding Section 297 or 299.2 of the Family Code, a
spouse as described in paragraph (3) of subdivision (a) does not
include the domestic partner of the participant pursuant to Section 7
of Title 1 of the United States Code.
(d) If there is a determination of community property rights as
described in Chapter 15 (commencing with Section 27400) of this part
on or before December 31, 2006, the participant may elect the annuity
that is required by the judgment or court order. Nothing in this
part shall permit the participant to change the annuity to the
detriment of the community property interest of the nonparticipant
spouse.
26906.6. (a) A participant who is disabled and elected an annuity
pursuant to Section 26906 may elect to change annuities, subject to
all of the following:
(1) A participant who elected a single life annuity with or
without a cash refund feature or a period certain annuity may not
change his or her annuity.
(2) A participant who elected an annuity under paragraph (3) or
(4) of subdivision (b) of Section 26906 may elect an annuity under
paragraph (3) of subdivision (a) of Section 26906.5.
(3) The election by the participant under this section is made on
or after January 1, 2007, and prior to July 1, 2007.
(4) The participant designates the same annuity beneficiary that
was designated under the prior annuity elected by the participant, if
the annuity and the annuity beneficiary designation were effective
on December 31, 2006.
(5) The annuity beneficiary is not afflicted with a known terminal
illness and the participant declares, under penalty of perjury under
the laws of this state, that to the best of his or her knowledge,
the annuity beneficiary is not afflicted with a known terminal
illness.
(6) The annuity beneficiary has not predeceased the participant as
of the effective date of the change in the annuity by the
participant.
(b) The change in the annuity by the participant shall be
effective on the date the election is signed, provided that the
election is on a properly executed form provided by the system and
that election is received at the system's headquarters office as
described in Section 22375 within 30 days after the date the election
is signed.
(c) After receipt of a participant's election document, the system
shall mail an acknowledgment notice to the participant that sets
forth the new annuity elected by the participant.
(d) If the participant and the annuity beneficiary are alive and
not afflicted with a known terminal illness, a participant may cancel
the election to change annuities and elect to receive the benefit
according to the preexisting annuity election. After cancellation,
the participant may elect to make a one-time change from the
preexisting annuity to any other annuity provided by and subject to
the restrictions of paragraph (1), (2), (3), or (4) of subdivision
(a). The cancellation or the cancellation and one-time change shall
be made on a properly executed form provided by the system and shall
be received at the system's headquarters office as described in
Section 22375 no later than 30 calendar days following the date of
mailing of the acknowledgment notice. If the participant elects to
make the one-time change provided by this subdivision, the change
shall be effective as of the participant's signature date on the
initial election to change.
(e) If the system is unable to mail an acknowledgment notice to
the participant on or before June 1, 2007, or prior to the end of the
election period, provided that the participant and the annuity
beneficiary are alive and not afflicted with a known terminal
illness, the system shall allow a participant to cancel the election
to change annuities and elect to receive the benefit according to the
preexisting annuity election. After cancellation, the participant
may elect to make a one-time change from the preexisting annuity to
any other annuity provided by and subject to the restrictions of
paragraph (1), (2), (3), or (4) of subdivision (a). The cancellation
or the cancellation and one-time change may be made after the end of
the election period if it is made on a properly executed form
provided by the system and is received at the system's headquarters
office as described in Section 22375 no later than 30 calendar days
following the date of mailing of the acknowledgment notice. If the
participant elects to make the one-time change provided by this
subdivision, the change shall be effective as of the participant's
signature date on the initial election to change.
(f) If the participant elects to change his or her annuity as
described in subdivision (a) or (d), the participant's annuity shall
be modified in a manner determined by the board to prevent any
additional liability to the plan.
(g) The participant shall not change annuities in derogation of a
spouse's or former spouse's community property rights as specified in
a court order.
26907. The annuity under this chapter shall be determined as a
value actuarially equivalent to the sum of the employee account and
the employer account as of the disability date. The annuity shall be
calculated using the age of the participant and, if the participant
elected a joint and survivor option, the age of the beneficiary on
the disability date.
26908. Upon election of an annuity under this part, the credits in
the participant's employee account and employer account shall be
transferred to the Annuitant Reserve.
26910. The beneficiary under the joint and survivor option elected
pursuant to paragraph (3) or paragraph (4) of subdivision (b) of
Section 26906 or paragraph (2) or (4) of subdivision (a) of Section
26906.5 shall be the person designated by the participant on the
application for a disability benefit and shall not be changed after
the original disability date unless the beneficiary predeceases the
participant.
26911. If a participant who is receiving a disability annuity under
this part becomes reemployed prior to 60 years of age to perform
creditable service subject to coverage by the Cash Balance Benefit
Program or the Defined Benefit Program, the disability annuity shall
be terminated. The participant's employee account and employer
account shall be credited with the actuarial equivalent of the
participant's annuity as of the date of reemployment and the
Annuitant Reserve shall be reduced by the amount credited to those
accounts.
