SECTIONS 25009-25011.5 - California Statutes

EDUCATION CODE

SECTION 25009-25011.5

25009. (a) A member's retirement benefit under the Defined Benefit
Supplement Program shall be an amount equal to the balance of credits
in the member's Defined Benefit Supplement account on the date the
retirement benefit becomes payable.
(b) A retirement benefit shall be a lump-sum payment, or an
annuity payable in monthly installments, or a combination of both a
lump-sum payment and an annuity, as elected by the member on the
application for a retirement benefit. Any retirement benefit paid as
an annuity under this chapter shall be subject to Section 25011 or
25011.1.
(c) Upon distribution of the entire retirement benefit in a
lump-sum payment, no other benefit shall be payable to the member or
the member's beneficiary under the Defined Benefit Supplement
Program.
(d) A member may not apply a lump-sum payment made to the member
pursuant to this section for any of the following purposes:
(1) Purchasing service credit pursuant to Chapter 14 (commencing
with Section 22800), Chapter 14.2 (commencing with Section 22820), or
Chapter 14.5 (commencing with Section 22850).
(2) Redepositing previously refunded retirement contributions
pursuant to Chapter 19 (commencing with Section 23200).

25010. (a) A member who meets the following eligibility
requirements shall receive a retirement benefit under the Defined
Benefit Supplement Program:
(1) The member has terminated all employment to perform creditable
service subject to coverage by the plan. The member's employer, or
employers if the member has multiple employers, shall certify on a
form prescribed by the system that the member's employment has been
terminated.
(2) The member has retired for service under the Defined Benefit
Program pursuant to Chapter 27 (commencing with Section 24201).
(b) A member shall submit an application for a retirement benefit
on a form prescribed by the system.
(c) A member retiring for service pursuant to Chapter 27
(commencing with Section 24201) on or after January 1, 2010, shall
not receive an allowance pursuant to Chapter 27 unless the member has
submitted a completed application pursuant to subdivision (b).

25011. (a) A member or nonmember spouse may elect to receive the
retirement benefit as an annuity payable in monthly installments,
provided the balance of credits in the member's or nonmember spouse's
respective Defined Benefit Supplement account on the date the
retirement benefit becomes payable equals at least three thousand
five hundred dollars ($3,500) after any lump-sum payments have been
made from the account.
(b) If the member elects to receive the retirement benefit as an
annuity, the member 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 member if the member elected to receive the retirement
benefit in a lump-sum payment. Upon the death of the member, no
other benefit shall be payable to the member's beneficiary under the
Defined Benefit Supplement Program.
(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 member if the member elected to receive the retirement
benefit in a lump-sum payment. Upon the death of the member, an
amount equal to the remaining balance, if any, of credits transferred
from the member's Defined Benefit Supplement account to the
Annuitant Reserve shall be returned in a lump-sum payment to the
member'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
lump-sum payment modified to be payable over the combined lives of
the member and the member's annuity beneficiary. Upon the death of
the member, the same monthly amount that was payable to the member
shall be paid monthly to the member's surviving annuity beneficiary.
However, if the annuity beneficiary predeceases the member, the
annuity payable to the member shall be the single life annuity with a
cash refund feature that would have been payable had the member
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 member and the member designates a new option
beneficiary pursuant to Section 24300, the new option beneficiary
shall be the new annuity beneficiary. The effective date shall be six
months following the date notification, on a properly executed form,
is received by the board, provided both the member and the new
annuity beneficiary are then living. The new annuity beneficiary
under this paragraph is subject to an actuarial modification of the
single life annuity with a cash refund feature and may not result in
any additional liability to the fund. The new annuity beneficiary may
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
lump-sum payment modified to be payable over the combined lives of
the member and the member's annuity beneficiary. Upon the death of
the member, one-half of the monthly amount that was payable to the
member shall be paid monthly to the member's surviving annuity
beneficiary. However, if the annuity beneficiary predeceases the
member, the annuity payable to the member shall be the single life
annuity with a cash refund feature that would have been payable had
the member 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 member and the member designates
a new option beneficiary pursuant to Section 24300, the new option
beneficiary shall be the new annuity beneficiary. The effective date
shall be six months following the date notification, on a properly
executed form, is received by the board, provided both the member and
the new annuity beneficiary are then living. The new annuity
beneficiary under this paragraph is subject to an actuarial
modification of the single life annuity with a cash refund feature
and may not result in any additional liability to the fund. The new
annuity beneficiary may 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 balance of credits in the
member's Defined Benefit Supplement account on the date the
retirement benefit becomes payable. The annuity shall be payable in
whole year increments over a period of years specified by the member,
from a minimum of three years to a maximum of 10 years. However, the
annuity period may not exceed the life expectancy of the member, or
the life expectancy of the member and the member's annuity
beneficiary. If the member's death occurs prior to the end of the
period certain, the remaining balance of payments shall be paid to
the member's annuity beneficiary pursuant to Section 25022.
(c) If a nonmember spouse elects to receive the retirement benefit
as an annuity, the nonmember spouse shall elect the form of payment
specified in paragraph (1), (2), or (5) of subdivision (b) and, in
those paragraphs, references to a "member" shall apply to the
nonmember spouse.
(d) On or after January 1, 2007, a member may not make a new
election of a joint and survivor annuity described in subdivision
(b), except as provided by subdivision (e) of Section 25011.1.
(e) Any member with a retirement effective on or after January 1,
2007, shall elect an annuity from the annuities described in Section
25011.1.

25011.1. (a) A member may elect to receive the retirement benefit
as an annuity payable in monthly installments, provided the balance
of credits in the member's Defined Benefit Supplement account on the
date the retirement benefit becomes payable equals at least three
thousand five hundred dollars ($3,500) after any lump-sum payments
have been made from the account. If the member elects to receive the
retirement benefit as an annuity, the member shall elect one of the
following forms of payments:
(1) Member 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 retired member if the member elected to
receive the retirement benefit in a lump-sum payment. Upon the death
of the member, an amount equal to the remaining balance of credits,
if any, transferred from the member's Defined Benefit Supplement
account to the annuitant reserve shall be returned in a lump-sum
payment to the beneficiary of the member.
(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 member
and the member's annuity beneficiary or beneficiaries. Upon the death
of the member, 100 percent of the monthly amount that was payable to
the member shall be paid monthly to the surviving annuity
beneficiary or beneficiaries of the member.
(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 member
and the member's annuity beneficiary. Pursuant to Section 401(a)(9)
of the Internal Revenue Code, the member shall not elect this annuity
if a beneficiary is more than exactly 19 years younger than the
member, unless the beneficiary is the member's spouse or former
spouse and the election is pursuant to a determination of community
property rights. Upon the death of the member, 75 percent of the
monthly amount that was payable to the member shall be paid monthly
to the surviving annuity beneficiary or beneficiaries of the member.
(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 member
and the member's annuity beneficiary or beneficiaries. Upon the death
of the member, 50 percent of the monthly amount that was payable to
the member shall be paid monthly to the surviving annuity beneficiary
or beneficiaries of the member.
(5) A period certain annuity. This form of payment is an annuity
equal to the actuarial equivalent of the balance of credits in the
member's Defined Benefit Supplement account on the date the
retirement benefit becomes payable. The annuity shall be payable in
whole year increments over a period of years specified by the member,
from a minimum of three years to a maximum of 10 years. However, the
annuity period may not exceed the life expectancy of the member, or
the life expectancy of the member and the member's annuity
beneficiary. If the member's death occurs prior to the end of the
period certain, the remaining balance of payments shall be paid to
the member's annuity beneficiary pursuant to Section 25022.
(b) If an annuity beneficiary designated pursuant to paragraph
(2), (3), or (4) of subdivision (a) predeceases the member, the
annuity shall be paid to the member as the member only annuity that
would have been payable had the member elected that form of payment
at the commencement of the benefit. That member 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
member and the member designates a new option beneficiary pursuant to
Section 24300.1, the new option beneficiary shall be the new annuity
beneficiary. The effective date shall be six months following the
date notification is received by the board, provided both the member
and the new 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 new annuity beneficiary
under this paragraph is subject to an actuarial modification of the
member only annuity and may not result in any additional liability to
the fund. The new annuity beneficiary may not be an existing annuity
beneficiary.
(c) If a nonmember spouse elects to receive the retirement benefit
as an annuity, the nonmember spouse shall elect the form of payment
specified in paragraph (1) or (5) of subdivision (a) and, in those
paragraphs, references to a "member" shall apply to the nonmember
spouse.
(d) Notwithstanding Section 297 or 299.2 of the Family Code, a
spouse as described in paragraph (3) or (5) of subdivision (a) does
not include the domestic partner of the member, pursuant to Section 7
of Title 1 of the United States Code.
(e) If there is a determination of community property rights as
described in Chapter 12 (commencing with Section 22650) of this part
on or before December 31, 2006, the member may elect the annuity that
is required by the judgment or court order. Nothing in this part
shall permit the member to change the annuity to the detriment of the
community property interest of the nonmember spouse.

25011.5. (a) A member who retired and elected an annuity pursuant
to Section 25011 may elect to change annuities, subject to all of the
following:
(1) A member who elected a single life annuity with or without a
cash refund feature or elects a period certain annuity may not change
his or her annuity.
(2) A member who elected an annuity under paragraph (3) or (4) of
subdivision (a) of Section 25011 may elect an annuity under paragraph
(3) of subdivision (a) of Section 25011.1.
(3) The election by the member under this section is made on or
after January 1, 2007, and prior to July 1, 2007.
(4) The member designates the same beneficiary that was designated
under the prior annuity election by the member, if the annuity and
annuity designation was effective on December 31, 2006.
(5) The member and the annuity beneficiary are not afflicted with
a known terminal illness and the member declares, under penalty of
perjury under the laws of this state, that to the best of his or her
knowledge, he or she and the annuity beneficiary are not afflicted
with a known terminal illness.
(6) The annuity beneficiary has not predeceased the member as of
the effective date of the change in the annuity by the member.
(b) The change in the annuity by the member 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 member's election document, the system
shall mail an acknowledgment notice to the member that sets forth the
new annuity elected by the member.
(d) If the member and the annuity beneficiary are alive and not
afflicted with a known terminal illness, a member may cancel the
election to change annuities and elect to receive the benefit
according to the preexisting annuity election. After cancellation,
the member 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 member elects to make the one-time
change provided by this subdivision, the change shall be effective
as of the member's signature date on the initial election to change.
(e) If the system is unable to mail an acknowledgment notice to
the member on or before June 1, 2007, or prior to the end of the
election period, provided that the member and the annuity beneficiary
are alive and not afflicted with a known terminal illness, the
system shall allow a member to cancel the election to change
annuities and elect to receive the benefit according to the
preexisting annuity election. After cancellation, the member 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
member elects to make the one-time change provided by this
subdivision, the change shall be effective as of the member's
signature date on the initial election to change.
(f) If the member elects to change his or her annuity as described
in subdivision (a), the annuity of the member shall be modified in a
manner determined by the board to prevent any additional liability
to the plan.
(g) References to a "member" in paragraph (1) of subdivision (a)
shall apply to the nonmember spouse.
(h) The member shall not change annuities in derogation of a
spouse's or former spouse's community property rights as specified in
a court order.