SECTIONS 21050-21054 - California Statutes

GOVERNMENT CODE

SECTION 21050-21054

21050. (a) An election by a member to receive credit for service
under this part, in addition to his or her current and prior service
credit, shall be effective only if accompanied by a lump-sum payment
or an authorization for payments, other than a lump-sum payment, in
accordance with regulations of the board.
(b) If a member electing to receive credit for service under this
part is authorized to pay for that service in installment payments
beginning on or after January 1, 2004, the amount of the installment
payments shall include an actuarial adjustment, as determined by the
chief actuary, as necessary to take into account the provisions of
Section 21037. The amount of the actuarial adjustment may not exceed
one-half of 1 percent of the total installment payment.
(c) (1) A member authorized to pay for credit for service in
after-tax installments may elect in writing, including by verified
electronic transaction, at any time prior to retirement, to suspend
after-tax installment payments for a period not to exceed 12 months.
Installment payments shall automatically resume at the end of the
suspension period, or earlier if requested by the member. A member
may not elect an additional suspension of those installment payments
for the same service for three years following the resumption of
installment payments.
(2) The balance due at the end of a suspension period shall be
recalculated to include interest accrued during the suspension.
(3) (A) A member who retires during the suspension period may,
prior to retirement, do either of the following:
(i) Make a lump-sum payment for the recalculated balance due.
(ii) Cancel installment payments in the manner specified in
subdivision (d).
(B) Failure by a member to make the lump-sum payment or the
election to cancel installment payments, will result in the
resumption of installment payments as of his or her date of
retirement.
(d) A member authorized to pay for credit for service in after-tax
installments may elect in writing, including by verified electronic
transaction, at any time prior to retirement, to prospectively cancel
payment of the remaining unpaid balance for those installment
payments.
(1) An election shall be effective upon the earlier of the member'
s retirement date, or the first day of the month following approval
by the system of the election.
(2) Service credited to the member's account will be reduced in
proportion to the balance of the total amount remaining unpaid on the
effective date of the cancellation. If the member elects to cancel
during or at the end of a suspension period, the balance shall
include any interest accrued and unpaid during the suspension period.
(3) Installment payments shall not be canceled for any of the
following:
(A) Contribution or service credit adjustments required by law or
agreement.
(B) A tier election pursuant to Article 2 (commencing with Section
21070) of Chapter 12 of Part 3 of Division 5 of Title 2.
(C) The purchase of service credit subject to a community property
division by way of court judgment, domestic relations, or other
court order or settlement agreement.
(e) If a member who has not elected to suspend installment
payments pursuant to subdivision (c) fails to make after-tax
installment payments when due for a period of 12 months, the board
may cancel the remaining unpaid balance in the same manner and with
the same effect as if the member had elected to cancel his or her
installment payments pursuant to subdivision (d).
(f) Prior to retirement, a member may elect to purchase that
portion of the service credit not credited to his or her account as a
result of a cancellation executed pursuant to subdivision (d) or
(e). A member shall not make an election for three years following
the effective date of the cancellation unless the member retires
before the conclusion of that period.
(1) A member who elects to purchase that service credit shall
contribute an amount equal to the sum of the following:
(A) The remaining unpaid balance of the canceled installment
payments.
(B) Interest from the effective date of the cancellation until the
date of completion of payment.
(C) If the member elects to contribute in installment payments,
interest on the unpaid balance of the amount payable, beginning on
the date of the election to receive credit through completion of
payments.
(2) Notwithstanding Section 575.1 of Title 2 of the California
Code of Regulations, the interest rate applicable to the amount due
for this election shall be the interest rate applicable to the
canceled installment payments.

21051. (a) A member electing to receive credit for service subject
to this section shall contribute, in accordance with Section 21050,
an amount equal to the following:
(1) The contributions the member would have made to the system for
the period for which current service credit is granted, assuming
that the rate of contribution under his or her employer's formula at
the rate age applicable to him or her at the beginning of his or her
first subsequent period of service in membership and his or her
compensation earnable on that date had applied to the member during
the period for which credit is granted.
(2) The interest that would have accrued on those contributions if
they had been deposited at the beginning date of his or her first
subsequent period of service in membership, from that date until the
date of completion of payments.
(3) If the member is authorized under Section 21050 to contribute
in other than a lump-sum payment, interest on the unpaid balance of
the amounts payable under paragraphs (1) and (2), which interest
shall begin to accrue as of the date of the election to receive
credit.
(b) The beginning date of the first subsequent period of service,
for purposes of computation of contributions and interest, shall be
deemed to be the end of the period of service credited for a member
who has no subsequent return to service.

21052. A member or retired former employee who elects to receive
service credit subject to this section shall contribute, in
accordance with Section 21050, an amount equal to the increase in
employer liability, using the payrate and other factors affecting
liability on the date of the request for costing of the service
credit. The methodology for calculating the amount of the
contribution shall be determined by the chief actuary and approved by
the board. A member or retired former employee electing to receive
service credit for service subject to Section 21076 or 21077 shall
pay the contributions as described.

21052.5. A person who is solely a National Guard member or who
retires from membership in this system solely as a National Guard
member may elect to receive service credit under either of the
following:
(a) The National Guard member elects to receive service credit
pursuant to Section 20750, 20751, 20751.5, or 20753.
(b) The National Guard member elects to receive service credit
pursuant to a provision that requires the member to pay contributions
as described in Sections 21050 and 21052.

21053. All contributions of a member under this article shall be
deemed to be and shall be administered as normal contributions.

21054. Notwithstanding any other provision of law, a member or
retired member who elected to purchase military service credit under
Section 21024 or 21027 on or after January 1, 1999, and prior to
January 1, 2001, may, at any time prior to making the final payment
for the service credit, elect to have the cost of that service credit
recalculated pursuant to Section 21052. If that cost as recalculated
under Section 21052 is less than the cost as originally calculated,
the member or retired member shall pay the lesser amount, with credit
for the payments previously made. However, no refund shall be
payable to a member or retired member as a result of the
recalculation of cost pursuant to this section.