SECTIONS 24250-24275 - California Statutes

EDUCATION CODE

SECTION 24250-24275

24250. It is the intent of the Legislature in repealing Sections
22316 and 22317 and adding Section 24275 to revoke the election made
on behalf of the plan under Section 415(b)(10) of the Internal
Revenue Code of 1986 and to provide for restoration of benefits
pursuant to Section 24275.

24255. (a) There is in the State Treasury a trust fund to be known
as the Teachers' Replacement Benefits Program Fund. There shall be
deposited directly in that fund, and not transferred from the
Teachers' Retirement Fund, that portion of employer contributions
determined by the board as necessary to fund the replacement benefits
program.
(b) Notwithstanding Section 13340 of the Government Code, moneys
in the Teachers' Replacement Benefits Program Fund are continuously
appropriated without regard to fiscal years to pay benefits to
members and beneficiaries of the Defined Benefit Program, and to pay
related administrative expenses.
(c) The board may authorize the transfer and disbursement of funds
from the Teachers' Replacement Benefits Program Fund for the purpose
of carrying into effect this chapter upon the signature of either or
both of its chairperson and vice chairperson or the chief executive
officer or any employee of the system designated by the chief
executive officer.
(d) Disbursements of money from the Teachers' Replacement Benefits
Program Fund of whatever nature shall be made upon claims duly
audited in the manner prescribed for the disbursement of other public
funds except that, notwithstanding the foregoing, disbursements may
be made to return funds deposited in the fund in error.

24260. (a) A replacement benefits program is hereby established
under this chapter for the exclusive purpose of providing to members
or their beneficiaries in accordance with subdivisions (c) and (d)
that portion of the annual benefit of the member or the member's
beneficiaries otherwise payable under the provisions of this part
that exceeds the limitations on the dollar amount of annual benefit
under Section 415 of the Internal Revenue Code of 1986 (26 U.S.C.
Sec. 415) as applicable to a governmental plan, as defined in
subdivision (d) of Section 414.
(b) The replacement benefits program established by this chapter
is intended to comply with the provisions of Section 415(m) of the
Internal Revenue Code of 1986 (26 U.S.C. Sec. 415(m)).
(c) In any case in which (1) the annual benefit of the member or
the member's beneficiaries for the calendar year otherwise payable
under the terms of this part, as measured under the provisions of
Section 415(b)(2) of the Internal Revenue Code of 1986 (26 U.S.C.
Sec. 415(b)(2)) and adjusted to exclude the portion of the annual
benefit attributable to employee contributions that are not "picked
up" under Section 414(h)(2) of the Internal Revenue Code of 1986 (26
U.S.C. Sec. 414(h)(2)) or attributable to rollover contributions
described in Section 415(b)(2) of the Internal Revenue Code of 1986,
exceeds (2) the limitation on the dollar amount of an annual benefit
applicable for the calendar year under Section 415(b)(1)(A) or
subdivision (e) as applicable to a governmental plan, as defined in
Section 414(d) of the Internal Revenue Code of 1986 (26 U.S.C. Sec.
414(d)), the amount of the portion of the annual benefit shall be
paid to the member or the member's beneficiaries under the
replacement benefit program in the manner described in subdivision
(d). In no event shall the portion of the annual benefit from the
replacement benefits program be payable from the assets of the
Teachers' Retirement Fund. In no event shall the replacement benefits
program provide to the member or the member's beneficiaries,
directly or indirectly, any election to defer compensation.
(d) Any portion of the annual benefit of a member or the member's
beneficiaries for the year described in subdivision (c) shall be
payable, at the same time and in the same form as the remainder of
the annual benefit and subject to the terms and conditions of this
part except as otherwise provided under this section, from the
proceeds of the employer contributions due under Section 22950, and,
notwithstanding Section 22956, prior to the deposit of those employer
contributions in the State Treasury to the Teachers' Retirement
Fund. Upon receipt of the warrants for the employer contributions as
described in Section 23001, the board shall retain and place in the
Teachers' Replacement Benefits Program Fund only the amounts of
employer contributions as are necessary for the exclusive purpose of
paying currently the monthly installment next due of the portion of
the annual benefit payable from the replacement benefits program to
the member or the member's beneficiaries as well as any
administrative expenses associated with the replacement benefits
program. Amounts shall not be accumulated in the Teachers'
Replacement Benefits Program Fund for the payment of future benefits,
and a member or the member's beneficiaries who are to receive the
portion of his or her annual benefit under the replacement benefits
program shall have no entitlement to amounts in the Teachers'
Replacement Benefits Program Fund until distributed to him or her as
a benefit.
(e) The portion of the annual benefit payable under the
replacement benefits program shall be subject to withholding for any
applicable income or employment taxes.
(f) The administrative expenses of the replacement benefits
program may include the employer portion of the Medicare payroll tax
on the replacement benefits program payments of a retired member who
is required to contribute to Medicare. The employee portion of the
Medicare payroll tax on the replacement benefits program payments to
retired members in this program who are required to contribute to
Medicare shall be withheld from the replacement benefits program
payments to the retired member.
(g) The board may by plan amendment amend the terms of the
replacement benefits program established under this section as
appropriate to comply with applicable federal or state law.
(h) All references to sections of the Internal Revenue Code of
1986 are to those sections as are amended from time to time or their
successor sections.

24270. In the case of any member or member's beneficiaries whose
annual benefit otherwise payable under the provisions of this part
has been reduced for any year by reason of application of the 100
percent of compensation limitation on benefits under Section 415(b)
(1)(B) of the Internal Revenue Code of 1986 (26 U.S.C. Sec. 415(b)(1)
(B)) the reduced annual benefit shall be restored to its full amount
otherwise payable for that year. In the case of restorations in
respect of annual benefits that were paid prior to January 1, 2000,
the additional benefit amount shall be paid by the system to the
member or the member's beneficiaries on or before April 1, 2000.

24275. (a) Notwithstanding any other provision of this part, the
benefits payable to any person shall be subject to the limitations of
Section 415 (other than Section 415(b)(1)(B)) of the Internal
Revenue Code of 1986 (26 U.S.C. Sec. 415) as applicable to a
governmental plan as those sections are amended from time to time or
their successor sections.
(b) This section and Section 24270 shall be applicable to benefits
payable in all plan years beginning before, on, or after enactment
of this chapter.