SECTIONS 25016-25019 - California Statutes

EDUCATION CODE

SECTION 25016-25019

25016. (a) A member's disability 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
disability benefit becomes payable.
(b) A disability 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 disability benefit. Any retirement benefit paid as
an annuity under this chapter shall be subject to Section 25018 or
25018.1.
(c) Upon distribution of the entire disability 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.

25017. (a) A member shall receive a disability benefit under the
Defined Benefit Supplement Program beginning on the effective date of
the member's disability allowance pursuant to Chapter 25 (commencing
with Section 24001) or a disability retirement allowance pursuant to
Chapter 26 (commencing with Section 24100) under the Defined Benefit
Program.
(b) The member, or the member's employer or conservator on behalf
of the member, shall submit an application for a disability benefit
on a form prescribed by the system.
(c) A member whose disability allowance or disability retirement
allowance is effective on or after January 1, 2010, shall not receive
an allowance pursuant to Chapter 25 (commencing with Section 24001)
or Chapter 26 (commencing with Section 24100), as applicable, unless
the member has submitted a completed application pursuant to
subdivision (b).

25018. (a) A member may elect to receive the disability 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 disability benefit becomes payable equals at least three
thousand five hundred dollars ($3,500) after any lump-sum payment has
been made from this account.
(b) If the member elects to receive the disability 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 disability
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 disability
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
member's beneficiary.
(3) For a member receiving an allowance pursuant to Chapter 26
(commencing with Section 24100), 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 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) For a member receiving an allowance pursuant to Chapter 26
(commencing with Section 24100), 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 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 balance of credits in the
member's Defined Benefit Supplement 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 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) Except as described in subdivision (e) of Section 25018.1, on
or after January 1, 2007, a member may not make a new election for an
annuity described in subdivision (b).
(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 25018.1.
(e) Any member with a disability benefit effective on or after
January 1, 2007, shall elect an annuity from the annuities described
in Section 25018.1.

25018.1. (a) A member may elect to receive the disability 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 disability benefit becomes payable equals at least three
thousand five hundred dollars ($3,500) after any lump-sum payment has
been made from this account. If the member elects to receive the
disability benefit as an annuity, the member shall elect one of the
following forms of payment:
(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 member if the member elected to receive the
disability 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
member's beneficiary.
(2) One hundred percent beneficiary annuity. 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 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 member's surviving annuity beneficiary
or beneficiaries.
(3) Seventy-five percent beneficiary annuity. 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 or beneficiaries. 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 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 or beneficiaries. 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 or
beneficiaries.
(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
disability 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 a 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) 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.
(d) 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.

25018.2. (a) A member who is disabled and elected an annuity
pursuant to Section 25018 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 elected 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 (b) of Section 25018 may elect an annuity under paragraph
(3) of subdivision (a) of Section 25018.1.
(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 annuity beneficiary that was
designated under the prior annuity election by the member, if the
annuity and the annuity designation were 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), (d), or (e), the annuity of the member shall be
modified in a manner determined by the board to prevent any
additional liability to the plan.
(g) 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.

25018.5. When a disabled member returns to work in his or her
former position of employment or in a comparable level position and
within six months of return experiences a recurrence of the original
disability, it shall be considered, for the purpose of determining
the duration of the disability, that the condition had its onset as
of the date the member first became disabled. The former Defined
Benefit Supplement disability benefit under this chapter shall again
become payable as of the later of the first day of the month in which
the recurrence of the disability occurred or the last day of service
for which compensation is payable to the member provided the member
complies with the provisions of Section 24003 or 24103, as
applicable.

25019. (a) If a member's disability allowance or disability
retirement allowance under this part is terminated, payment of a
disability annuity based on the balance of credits transferred from
the member's Defined Benefit Supplement account to the Annuitant
Reserve also shall terminate. The member's Defined Benefit Supplement
account shall be credited with the actuarial equivalent of the
member's annuity as of the date the annuity is terminated and the
Annuitant Reserve shall be reduced by the amount credited to the
member's account.
(b) If a disability allowance or a service or disability
retirement allowance subsequently becomes payable again, an annuity
or lump-sum payment based on the remaining balance of credits in the
member's Defined Benefit Supplement account at the time of the
subsequent disability or service or disability retirement becomes
payable and the balance of credits in the member's Defined Benefit
Supplement account shall be transferred to the Annuitant Reserve or
paid to the member in the form of a lump-sum payment.