Source: http://leginfo.legislature.ca.gov/faces/billCompareClient.xhtml?bill_id=199920000SB1074
Timestamp: 2019-12-10 08:08:08
Document Index: 459638405

Matched Legal Cases: ['art 51', 'art 51', 'art 13', 'art 14', 'art 6', 'art 14', 'art 14', 'art 14', 'art 14', 'art 14', 'art 14', 'art 14', 'art 14', 'art 14']

(b) If the system makes an error that results in incorrect payment to a member, former member, beneficiary, or annuity beneficiary, the system’s right to commence recovery shall expire three years from the date the incorrect payment was made.
(c) If an incorrect payment is made due to lack of information or inaccurate information regarding the eligibility of a member, former member, beneficiary, or annuity beneficiary to receive benefits under the Defined Benefit Program or Defined Benefit Supplement Program, plan, the period of limitation shall commence with the discovery of the incorrect payment.
(d) Notwithstanding any other provision of this section, if an incorrect payment has been made on the basis of fraud or intentional misrepresentation by a member, beneficiary, annuity beneficiary, or other party in relation to or on behalf of a member, beneficiary, member or annuity beneficiary, the three-year period of limitation shall not be deemed to commence or to have commenced until the system discovers the incorrect payment.
(a) “Creditable compensation” means remuneration that is paid salary and other remuneration payable in cash by an employer to all persons in the same class of employees for performing creditable service in that position. a member for creditable service. Creditable compensation shall include:
(1) Salary or wages Money paid in accordance with a publicly available written contractual agreement, including, but not limited to, a salary schedule or employment agreement. salary schedule based on years of training and years of experience for creditable service performed up to and including the full-time equivalent for the position in which the service is performed.
(2) Remuneration that is paid in addition to salary or wages, provided it is paid to all persons who are in the same class of employees in the same dollar amount, the same percentage of salary or wages, or the same percentage of the amount being distributed. For members not paid according to a salary schedule, money paid for creditable service performed up to and including the full-time equivalent for the position in which the service is performed.
(3) Remuneration that is Money paid for the use of sick leave, vacation leave, or an employer-approved compensated leave of absence, member’s absence from performance of creditable service as approved by the employer, except as provided in paragraph (4) (7) of subdivision (c). (b).
(5) Amounts that are deducted from a member’s remuneration, including, but not limited to, deducted by an employer from the member’s salary, including deductions for participation in a deferred compensation plan; deductions to for the purchase an of annuity contract, contracts, tax-deferred retirement plan, plans, or other insurance program; and contributions to programs; and deductions for participation in a plan that meets the requirements of Section 125, 401(a), 401(k), 403(b), 457(b), or 457(f) 403(b) of Title 26 of the United States Code.
(6) (8) Any other payments the board determines to be “creditable compensation.”
(b) Any creditable compensation determined by the system to have been paid to enhance a member’s benefits shall not be credited under the Defined Benefit Program. Contributions on that compensation shall be credited to the Defined Benefit Supplement Program. A presumption by the system that creditable compensation was paid to enhance a member’s benefits may be rebutted by the member or by the employer on behalf of the member. Upon receipt of sufficient evidence to the contrary, a presumption by the system that creditable compensation was paid to enhance the member’s benefits may be reversed.
(c) (b) “Creditable compensation” does not mean and shall not include:
(1) Remuneration that is not paid in cash or is not paid to all persons who are in the same class of employees. Money paid for service performed in excess of the full-time equivalent for the position.
(2) (3) Remuneration that is Money paid for service that is not creditable service pursuant to Section 22119.5 or 22119.6. 22119.5.
(3) (4) Remuneration that is paid Money paid by an employer in addition to salary or wages if it is paid under paragraph (1) or (2) of subdivision (a) if not paid to all persons employees in the same class of employees a class in the same dollar amount, the same percentage of salary salary, or wages, or the same percentage of the amount being distributed pursuant to paragraph (2) distributed, except as provided in paragraph (7) of subdivision (a).
(4) (7) Remuneration that is paid in exchange for the relinquishment of Money paid for unused accumulated leave.
(5) (9) Payments, including, but not limited to, those for participation in a deferred compensation plan; to purchase an annuity contract, tax-deferred retirement plan, or insurance program; and for contributions to a plan that meets Annuity contracts, tax-deferred retirement programs, or other insurance programs, including, but not limited to, plans that meet the requirements of Section 125, 401(a), 401(k), 403(b), 457(b), or 457(f) 403(b) of Title 26 of the United States Code when the cost is covered that are purchased by an employer and is for the member and are not deducted from the member’s salary.
(7) Expenses paid or reimbursed by an employer.
(8) (10) Severance pay, including lump-sum and installment payments, or money paid in excess of salary or wages to a member as compensatory damages or as a compromise settlement. Any payments determined by the board to have been made by an employer for the principal purpose of enhancing a member’s benefits under the Defined Benefit Program. An increase in the salary of a member who is the only employee in a class pursuant to subdivision (b) of Section 22112.5 that arises out of an employer’s restructuring of compensation during the member’s final compensation period shall be presumed to have been granted for the principal purpose of enhancing benefits under the Defined Benefit Program and shall not be creditable compensation. If the board determines sufficient evidence is provided to the system to rebut this presumption, the increase in salary shall be deemed creditable compensation.
(9) (11) Any other payments the board determines not to be “creditable compensation.”
(d) (c) An Any employer or individual person who knowingly or willfully reports compensation in a manner inconsistent with subdivision (a) or (c) (b) shall reimburse the plan for any overpayment of benefits that occurs because of that inconsistent reporting and may be subject to prosecution for fraud, theft, or embezzlement in accordance with the Penal Code. The system may establish procedures to ensure that compensation reported by an employer is in compliance with this section.
(f) (d) This The definition of “creditable compensation” reflects sound in this section is designed in accordance with sound funding principles that support the integrity of the retirement fund. Those These principles include, but are not limited to, consistent treatment of compensation throughout a member’s career, consistent treatment of compensation among an entire class of employees, the career of the individual member, consistent treatment of compensation for the position, preventing an entire class of employees, the prevention of adverse selection, and excluding from compensation earnable remuneration that is paid to enhance a member’s benefits. The system shall determine the appropriate crediting of contributions between the Defined Benefit Program and the Defined Benefit Supplement Program according to these principles, to the extent not otherwise specified pursuant to this part. the exclusion of adjustments to, or increases in, compensation for the principal purpose of enhancing benefits.
(g) (e) The This section shall be deemed to have become operative on July 1, 2002. 1996.
(h) This section shall not apply to a member subject to the California Public Employees’ Pension Reform Act of 2013.
(a) “Final compensation” means the highest average annual compensation earnable, as defined by Section 22115, by earnable by a member during any period of 36 consecutive months of service three consecutive school years while an active member of the Defined Benefit Program or time during which he or she was not a member but for which the member has received credit under the Defined Benefit Program, except time that was so credited for service performed outside this state prior to July 1, 1944. The last three consecutive years of employment shall be used by the system in determining final compensation unless designated to the contrary in writing by the member.
(b) For purposes of this section, periods of service separated by breaks in service or by periods in which a member’s salary was reduced because of a reduction in school funds as certified by the employer may be aggregated, may be aggregated to constitute a period of three consecutive years, if the periods of service are consecutive except for the breaks or periods of salary reduction. breaks.
(d) (c) For purposes of determining the The determination of final compensation of a member who is eligible for concurrent retirement as defined in Section 22115.5, the compensation a person could earn for services rendered on a full-time basis under a retirement system with which the member has concurrent membership, as defined in Section 22115.2, shall be considered compensation earnable, provided that both has concurrent membership in another retirement system pursuant to Section 22115.2 shall take into consideration the compensation earnable while a member of the other system, provided that all of the following exist:
(1) (2) The compensation Service under the other system was not earned during the periods of service determined pursuant to subdivision (c) performed concurrently with service under the Defined Benefit Program.
(2) (3) Retirement for service under the Defined Benefit Program is concurrent with the member’s retirement for service under the other system pursuant to Section 22115.5. system.
(e) (d) The creditable compensation earnable for the first school year position in which a member earned creditable compensation California service was credited shall be used when additional months of creditable compensation are required compensation earnable is required to accumulate three consecutive years for the purpose of determining final compensation. compensation under Section 23805.
(f) (e) If a member has received service credit for part-time service performed prior to July 1, 1956, the member’s final compensation shall be adjusted for that service in excess of one year by the ratio that part-time service bears to full-time service.
(g) (f) For purposes of calculating a benefit that does not include service credit, final compensation shall be the highest average annual creditable compensation earned by a member during any period of 36 consecutive months of service, excluding compensation for which contributions are credited to the Defined Benefit Supplement Program. Final compensation determined pursuant to this subdivision shall not exceed the amount determined pursuant to subdivision (a). The board may specify a different final compensation with respect to disability allowances, disability retirement allowances, family allowances, and children’s portions of survivor benefit allowances payable on and after January 1, 1978. The compensation earnable for periods of part-time service shall be adjusted by the ratio that part-time service bears to full-time service.
(h) (g) The amendment of former Section 22127 made by Chapter 782 of the Statutes of 1982 does not constitute a change in, but is declaratory of, the existing law.
(a) Notwithstanding subdivision subdivisions (a) and (b) of Section 22134, “final compensation” means the highest average annual compensation earnable, as defined by Section 22115, by earnable by an active member who is a classroom teacher not subject to the California Public Employees’ Pension Reform Act of 2013 and who retires, becomes disabled, or dies, after June 30, 1990, during any period of 12 consecutive months while an active member of the during his or her membership in the plan’s Defined Benefit Program. The last 12 consecutive months of employment shall be used by the system in determining final compensation unless designated to the contrary in writing by the member.
(e) This section shall apply only to teachers employed by an employer that has, pursuant to Chapter 10.7 (commencing with Section 3540) of Division 4 of Title 1 of the Government Code, entered into, extended, renewed, or amended into a written agreement with an exclusive representative, prior to January 1, 2014, that makes this section applicable to all of its classroom teachers, as defined in subdivision (c).
(i) For a nonmember spouse, final compensation shall be determined pursuant to paragraph (5) (2) of subdivision (c) of Section 22664. The employer, within 30 days of receiving an invoice from the system, shall reimburse the retirement fund pursuant to subdivision (f). Interest shall be charged at the regular interest rate for payments not received within the prescribed timeframe. Payments not received within 30 days of invoicing may be collected pursuant to Section 23007.
(a) (1) “Full time” means the days or hours of creditable service the employer requires to be performed by a class of employees in a school term year in order to earn the compensation earnable as defined in Section 22115 and specified under the terms of a collective bargaining agreement or employment agreement. For the purpose of crediting service under this part, “full time” may shall not be less than the minimum standard standards specified in this section. Each collective bargaining agreement or employment agreement that applies to a member subject to the minimum standard specified in either paragraph (5) or (6) of subdivision (c) shall specify the number of hours of creditable service that equals “full time” pursuant to this section for each class of employee subject to either paragraph and make specific reference to this section, and the district shall submit a copy of the agreement to the system.
(b) The minimum standard for full time in prekindergarten kindergarten through grade 12 is as follows: shall be:
(1) One hundred seventy-five days per school term year or 1,050 hours per school term, year, except as provided in paragraphs (2) and (3).
(2) (A) One hundred ninety days per school term, year or 1,520 hours per school term year for all principals and program managers, including advisers, coordinators, consultants, and developers or planners of curricula, instructional materials, or programs, and for administrators, except as provided in subparagraph (B).
(B) Two hundred fifteen days per school term year or 1,720 hours per school term year including school and legal holidays pursuant to the policy adopted by the employer’s governing board for administrators at a county office of education.
(3) One thousand fifty hours per school term year for teachers in adult education programs.
(c) The minimum standard for full time in community colleges is as follows: shall be:
(1) One hundred seventy-five days per school term year or 1,050 hours per school term, year, except as provided in paragraphs (2), (3), (4), (5), and (6). Full time includes shall include time for duties the employer requires to be performed as part of the full-time assignment for a particular class of employees.
(2) One hundred ninety days per school term year or 1,520 hours per school term year for all program managers and for administrators, except as provided in paragraph (3).
(3) Two hundred fifteen days per school term year or 1,720 hours per school term year including school and legal holidays pursuant to the policy adopted by the employer’s governing board for administrators at a district office.
(4) One hundred seventy-five days per school term year or 1,050 hours per school term year for all counselors and librarians.
(5) Five hundred twenty-five instructional hours per school term year for all instructors employed on a part-time basis, except instructors specified in paragraph (6). basis. If an instructor receives compensation for office hours pursuant to Article 10 (commencing with Section 87880) of Chapter 3 of Part 51 of Division 7 of Title 3, 51, then the minimum standard established herein shall be increased appropriately by the number of office hours required annually for the class of employees.
(6) Eight hundred seventy-five instructional hours per school term year for all instructors employed in adult education programs. instructors. If an instructor receives compensation for office hours pursuant to Article 10 (commencing with Section 87880) of Chapter 3 of Part 51 of Division 7 of Title 3, 51, then the minimum standard established herein shall be increased appropriately by the number of office hours required annually for the class of employees.
(d) The board has shall have final authority to determine full time for purposes of crediting service under this part if full time is not otherwise specified in this section. herein.
“Nonqualified service” means any time during which a member did not perform creditable service subject to coverage by the plan. Nonqualified service shall not include time for which the Defined Benefit Program is not performed, excluding time a member is eligible to purchase as permissive or additional service credit pursuant to Chapter 14 (commencing with Section 22800), Chapter 14.2 (commencing with Section 22820), or and Chapter 14.5 (commencing with Section 22850).
“Normal retirement” and “normal retirement age” mean 60 years of age, or 62 years of age for a member subject to the California Public Employees’ Pension Reform Act of 2013, the age of 60 years, which is the age upon attainment of which the member becomes eligible under the Defined Benefit Program for a service retirement allowance without reduction because of age and without special qualifications.
(c) A disability allowance pursuant to Section 24004, 24006, 24004 or 24015.
(a) Information filed with the system by a member, participant, or beneficiary of the plan is confidential and shall be used by the system for the sole purpose of carrying into effect the provisions of this part, Part 13.5 (commencing with Section 25900), and Part 14 (commencing with Section 26000). part. No official or employee of the system who has access to the individual records of a member, participant, or beneficiary shall divulge any confidential information concerning those records to any person except in the following instances:
(5) To other individuals or entities as necessary to validate personal information of members, participants, and beneficiaries. locate a person to whom a benefit may be payable.
Notwithstanding any other provision of law, the Employment Development Department shall disclose to the system board information in its possession relating to the earnings of any person who is a member of the Defined Benefit Program, if the member is receiving a disability benefit or performing retired member activities. under the Defined Benefit Program. The earnings information shall be released to the system board only upon written request from the system board specifying that the person is a member of receiving disability benefits under the Defined Benefit Program and is receiving a disability benefit or performing retired member activities. The system shall use the information obtained pursuant to this section only for purposes of Chapter 25 (commencing with Section 24001), Chapter 26 (commencing with the Section 24100), Section 24214, or Section 24214.5. The Program. The request may be made by the chief executive officer of the system or by an employee of the system so authorized and identified by name and title by the chief executive officer in writing. The system board shall notify members receiving a disability benefit or performing retired member activities recipients of disability benefits that earnings information shall be obtained from the Employment Development Department upon request by the system. board. The system board shall not release any earnings information received from the Employment Development Department to any person, agency, or other entity. The system shall reimburse the Employment Development Department for all reasonable administrative expenses incurred pursuant to this section.
(4) That the amount and length of the loans shall be pursuant to a schedule periodically established by the board that shall provide a loan of up to 100 percent of the appraised value. In no event shall the loan amount exceed 200 percent of the conforming loan limit set by the Federal National Mortgage Association (FNMA) or 200 percent of the conforming loan limit set by the Federal Home Loan Mortgage Corporation (FHLMC), whichever is greater. three hundred fifty thousand dollars ($350,000). The portion of any loan exceeding 80 percent of value shall be insured by an admitted mortgage guaranty insurer conforming to Chapter 2A (commencing with Section 12640.01) of Part 6 of Division 2 of the Insurance Code, in an amount so that the unguaranteed portion of the loan does not exceed 75 percent of the market value of the property together with improvements thereon.
(a) Any person employed by a school district or county office of education to perform creditable service on a part-time basis, basis who is not already a member of the Defined Benefit Program, Program shall become a member as of the first day of the pay period following his or her subsequent employment to perform creditable service for 50 percent or more of the full-time equivalent for the position, unless excluded from membership pursuant to Section 22601.
(b) Any person employed by a community college district to perform creditable service on a part-time basis, who is not already a member of the Defined Benefit Program, shall become a member as of the first day of the pay period following his or her employment to perform creditable service that is not subject to Section 87474, 87480, 87481, 87482, or 87482.5, unless excluded from membership pursuant to Section 22601.
(c) (b) This section shall apply to persons who perform service subject to coverage under this part and to persons who are employed by employers who provide benefits for their employees under Part 14 (commencing with Section 26000).
(a) Any person employed to perform creditable service as a substitute employee teacher who is not already a member of the Defined Benefit Program is shall become a member as of the first day of the pay period following the pay period in which the person performed 100 or more complete days of creditable service during the school year in one school district, community college district, or county superintendent’s office, unless excluded from membership pursuant to Section 22601.
(b) This section does shall not apply to persons who are employed by employers who provide benefits for their employees under Part 14 (commencing with Section 26000).
(c) This section is shall be deemed to have become operative on July 1, 1996.
(a) Any person employed by a school district or county office of education to perform creditable service on a part-time basis, basis who is not already a member of the Defined Benefit Program, Program shall become a member as of the first day of the pay period following the pay period in which the person performed at least 60 hours of creditable service, if employed on an hourly basis, or 10 days of creditable service, if employed on a daily basis, during the school year, in one school district district, community college district, or county office of education, superintendent’s office, unless excluded from membership pursuant to Section 22601.
(c) (b) Subdivision (a) does This section shall not apply to persons who perform service subject to coverage under this part and who are employed by employers who provide benefits for their employees under Part 14 (commencing with Section 26000).
(d) (c) Subdivision (b) shall apply to persons who perform service subject to coverage under this part and to persons who are employed by employers who provide benefits for their employees under Part 14 (commencing with Section 26000). This section shall be deemed to have become operative on July 1, 1996.
(a) A member who becomes employed by the same or a different school district or district, community college district, or a county superintendent, or who becomes employed by the state in a position described in subdivision (b), superintendent to perform service that requires membership in a different public retirement system, and who is not excluded from membership in that public retirement system, may elect to have that service subject to coverage by the Defined Benefit Program of this plan and excluded from coverage by the other public retirement system. The election shall be made in writing on a form prescribed by this system within 60 days from the date of hire in the position requiring membership in the other public retirement system. If that election is made, the service performed for the employer in that position as of after the date of hire shall be considered creditable service for purposes of this part.
(c) (b) A member of the Public Employees’ Retirement System who is employed by a school district, community college district, or a county superintendent and who is subsequently employed to perform creditable service requiring subject to coverage by the Defined Benefit Program of this plan may elect to have that subsequent service subject to coverage by the Public Employees’ Retirement System and excluded from coverage by the Defined Benefit Program pursuant to Section 20309 of the Government Code. Program. The election shall be made in writing on a form prescribed by this system within 60 days from the date of hire to perform creditable service. If that election is made, creditable service performed for the employer after the date of hire shall be subject to coverage by the Public Employees’ Retirement System.
(d) (c) An election made by a member pursuant to this section shall be irrevocable.
(a) Any person who is a member of the Defined Benefit Program of the State Teachers’ Retirement Plan employed by a community college district who subsequently is employed by the Board of Governors of the California Community Colleges to perform duties that are subject to membership in a different public retirement system may elect to have that service subject to coverage by system, shall be excluded from membership in that different system if he or she elects, in writing, and files that election in the office of the State Teachers’ Retirement System within 60 days after the person’s entry into the new position, to continue as a member of the Defined Benefit Program of this plan and excluded from coverage by the other public retirement system. Program. Only a person who has achieved plan vesting is eligible to elect to continue as a member of the program.
(b) Service performed after becoming a member of another retirement system shall not be credited to the member under this part, nor shall contributions or benefits under this part be based upon that service or the compensation received by the member during that period of service, except as provided in the definition of “final compensation” contained in Section 22134 or 22134.5. 22134.
(a) Any person employed by a school district or county office of education to perform creditable service who is not already a member in the Defined Benefit Program and whose basis of employment is less than 50 percent of the time an employer requires full-time equivalent for the full-time position is excluded from mandatory membership in the Defined Benefit Program.
(b) Any person employed by a community college district to perform creditable service pursuant to Section 87474, 87480, 87481, 87482, or 87482.5 who is not already a member of the Defined Benefit Program is excluded from mandatory membership in the Defined Benefit Program.
(a) Any person employed to perform creditable service on a part-time basis, basis who is not already a member of in the Defined Benefit Program and who performs less than 60 hours of creditable service in a pay period if employed on an hourly basis, or less than 10 days of creditable service in a pay period if employed on a daily basis, during the school year in one school district district, community college district, or county superintendent’s office of education, is excluded from mandatory membership in the Defined Benefit Program.
(b) Any person employed by a community college district to perform creditable service pursuant to Section 87474, 87480, 87481, 87482, or 87482.5, who is not already a member of the Defined Benefit Program, is excluded from mandatory membership in the Defined Benefit Program.
(d) (c) Subdivision (b) shall apply to persons who perform service subject to coverage under this part and to persons who are employed by employers who provide benefits for their employees under Part 14 (commencing with Section 26000). The amendments to this section enacted during the 1995–96 Regular Session shall be deemed to have become operative on July 1, 1996.
(3) The nonmember spouse has attained the age of 55 years of age or more.
(b) A service retirement allowance of a nonmember spouse under this part shall become effective upon a any date designated by the nonmember spouse, provided:
(3) The effective date is no earlier than the first day of the month that in which the application is received at the system’s headquarters office in Sacramento and the effective date is after the date the judgment or court order pursuant to Section 22652 was entered.
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(4) In computing the retirement allowance of the nonmember spouse, the age of the nonmember spouse on the last day of the month that in which the retirement allowance begins to accrue shall be used.
(5) Final compensation, for purposes of calculating the service retirement allowance of the nonmember spouse under this subdivision, shall be calculated according to the definition of final compensation in Section 22134, 22134.5, 22135, or 22135, 22136, whichever is applicable, and shall be based on the member’s compensation earnable of the member up to the date the parties separated, as established in the judgment or court order pursuant to Section 22652. The nonmember spouse shall not be entitled to use any other calculation of final compensation.
(d) Upon service retirement under this part, the nonmember spouse shall receive a retirement benefit based on an amount equal to the balance of credits in the nonmember spouse’s Defined Benefit Supplement account on the date the retirement benefit becomes payable. If the member is or was receiving a disability allowance under this part with an effective date before or on the date the parties separated as established in the judgment or court order pursuant to Section 22652, or at any time applies for and receives a disability allowance with an effective date that is before or coincides with the date the parties separated as established in the judgment or court order pursuant to Section 22652, the nonmember spouse shall not be eligible to retire until after the disability allowance of the member terminates.
(1) The retirement allowance of the nonmember spouse under this subdivision shall be calculated as follows: the disability allowance the member was receiving, exclusive of the portion benefits for dependent children, shall be divided between the share of the member and the share of the nonmember spouse. The share of the nonmember spouse shall be the amount obtained by multiplying the disability allowance, exclusive of the portion benefits for dependent children, by the years of service credited to the separate account of the nonmember spouse, including service projected to the date of separation, and dividing by the projected service of the member. The nonmember spouse’s retirement allowance shall be the lesser of the share of the nonmember spouse under this subdivision or the retirement allowance under subdivision (c).
(f) (e) The nonmember spouse who receives a retirement allowance is not a retired member under this part. However, the allowance of the nonmember spouse shall be increased by application of the improvement factor and shall be eligible for the application of supplemental increases and other benefit maintenance provisions under this part, including, but not limited to, Sections 24412 24411, 24412, and 24415 based on the same criteria used for the application of these benefit maintenance increases to the service retirement allowances of members.
(g) Paragraphs (1) to (3), inclusive, of subdivision (c) shall not apply to a nonmember spouse of a member subject to the California Public Employees’ Pension Reform Act of 2013. For a person who is a nonmember spouse of a member subject to the California Public Employees’ Pension Reform Act of 2013 and is awarded a separate account, the retirement allowance shall equal the percentage of final compensation for each year of credited service that is equal to the percentage specified in Section 24202.6 based on the age of the nonmember spouse on the effective date of the allowance.
(a) Notwithstanding any other provision of this chapter, if the governing board of a school district or a community college district, district or a county superintendent of schools establishes regulations pursuant to Sections 44922 and 87483, an employer may enter into a written agreement with may establish regulations that allow an employee who is a member of the Defined Benefit Program to reduce his or her workload in a position from full time to part time, and receive the service credit the member would have received if the member had been employed in that position on a full-time basis and have his or her retirement allowance, as well as other benefits that the member is entitled to under this part, based, in part, on the final compensation the determined from the compensation earnable the member would have been entitled to if the member had been employed on a full-time basis. The option to reduce the member’s workload shall be exercised at the request of the member if all of the following conditions are met:
(1) The member is employed by either of the following: option to reduce the member’s workload shall be exercised at the request of the member and can be revoked only with the mutual consent of the employer and the member.
(A) A school district or county office of education as a prekindergarten through grade 12 certificated employee who does not hold a position with a salary above the maximum salary of a school principal for that employer.
(B) A community college district.
(2) The member has a minimum of 10 years of credited service in shall have been employed full time to perform creditable service subject to coverage under the Defined Benefit Program prior to the start of the school term of the first school year of the agreement to reduce the member’s for at least 10 years including five years immediately preceding the reduction in workload.
(3) The member shall have been employed on a full-time basis to perform creditable service under the Defined Benefit Program each year of the five school not have had a break in service during the five years immediately preceding the first school year in which the member’s workload is reduced, without having reduction in workload. For purposes of this subdivision, sabbaticals and other approved leaves of absence shall not constitute a break in service. For the purposes of this paragraph: However, time spent on a sabbatical or other approved leave of absence shall not be used in computing the five-year full-time service requirement prescribed by this subdivision.
(A) Employer-approved leaves of absence, and unpaid absences from the performance of creditable service for personal reasons from full-time employment do not constitute a break in service.
(B) Creditable service that was performed for a school year in which a member reduced his or her workload pursuant to this section shall be treated as full time, provided that the agreement to reduce the member’s workload was not terminated during that year pursuant to subdivision (e).
(C) The period of time during which a member is retired for service shall constitute a break in service.
(4) The member is 55 years of age or older shall have reached the age of 55 years prior to the start of the school term of the first school year of the agreement for which the member’s workload is reduced. reduction in workload.
(b) The employer, in conjunction with the system, shall certify the member’s eligibility for participation in the reduced workload program in accordance with subdivision (a). The employer’s certification shall be submitted in a format prescribed by the system and shall be received in the system’s headquarters office prior to the start of the school term of the first school year of the agreement for which the member’s workload is reduced.
(c) The agreement to reduce the member’s workload shall be in effect prior to the start of the school term of the first school year of the agreement for which the member’s workload is reduced, and shall include the following requirements:
(1) (5) The total amount of time in which a member reduces his or her workload pursuant to this section reduced workload shall be performed for a period of time, as specified in the regulations. The period of time specified in the regulations shall not exceed 10 school years.
(2) (6) The reduced workload shall be equal to at least one-half of the time the employer requires for full-time employment in that position in accordance with Section 22138.5. full-time equivalent required by the member’s contract of employment during his or her final year of full-time employment.
(3) (7) The member shall be paid creditable compensation that is the pro rata share of the creditable compensation the member would have been paid for that position had the member not reduced his or her workload.
(4) (d) For each school year the member’s workload is reduced pursuant to this section, the The member shall make contributions to the Teachers’ Retirement Fund in the amount that the member would have contributed if had the member had performed creditable service for that position on a full-time basis and if that service was subject to coverage under the Defined Benefit Program.
(5) (e) For each school year the member’s workload is reduced pursuant to this section, the The employer shall contribute to the Teachers’ Retirement Fund at a rate adopted by the board as a plan amendment with respect to the Defined Benefit Program an amount based upon the creditable compensation that would have been paid to the member if had the member had performed creditable service for that position on a full-time basis and if that service was subject to coverage under the Defined Benefit Program.
(d) (f) The employer shall maintain the necessary records to separately identify each member who participates in the reduced workload program pursuant to this section.
(e) The agreement to reduce a member’s workload shall be terminated if one of the following actions is taken:
(1) The member’s employment is terminated prior to the end of the school term.
(2) The member performs less than one-half of the days or hours the employer requires for full time in that position pursuant to Section 22138.5.
(3) The member and the employer mutually agree that the member will perform creditable service without making contributions in accordance with paragraphs (4) and (5) of subdivision (c).
(f) Upon termination of the agreement for any of the reasons described in subdivision (e):
(1) The employer shall notify the system that the agreement to reduce a member’s workload has been terminated within 30 days of the agreement being terminated.
(2) The member’s service credit and contributions for that school year in which the agreement is terminated shall be computed in accordance with Section 22701 and Chapters 15 and 16.
(3) That school year in which the agreement is terminated shall not be included in the total amount of time in which a member is allowed to reduce his or her workload pursuant to paragraph (1) of subdivision (c).
(4) Any subsequent agreement to reduce a member’s workload shall meet all of the conditions set forth in this section.
(a) Whenever the governing board of a school district or a community college district or a county office of education, by formal action, action taken prior to January 1, 1999, determines pursuant to Section 44929 or 87488 that, that because of impending curtailment of, of or changes in, in the manner of performing services, the best interests of the district or county office of education would be served by encouraging certificated employees or academic employees to retire for service and that the retirement will either: result in a net savings to the district or county office of education, education; result in a reduction of the number of certificated employees or academic employees as a result of declining enrollment; or result in the retention of certificated employees who are credentialed to teach in, or faculty who are qualified to teach in, teacher shortage disciplines, including, but not limited to, mathematics and science, an additional two years of service credit shall be granted under this part to a member of the Defined Benefit Program if all of the following conditions exist:
(2) The documentation required by this section is received by the system no later than 30 calendar days after the last day of the window period established in paragraph (1).
(3) (2) (A) The employer transfers to the retirement fund an amount determined by the Teachers’ Retirement Board to equal the actuarial equivalent of the difference between the allowance the member receives after receipt of service credit pursuant to this section and the amount the member would have received without the service credit and an amount determined by the Teachers’ Retirement Board to equal the actuarial equivalent of the difference between the purchasing power protection supplemental payment the member receives after receipt of service credit pursuant to this section and the amount the member would have received without the service credit. The payment for purchasing power shall be deposited in the Supplemental Benefit Maintenance Account established by Section 22400 and shall be subject to Section 24415. The transfer to the retirement fund shall be made in a manner manner, and a time period, period not to exceed eight four years, that is acceptable to the Teachers’ Retirement Board. The employer shall transfer the required amount for all eligible employees who retire pursuant to this section.
(4) (3) The employer transmits to the retirement fund the administrative costs incurred by the system in implementing this section, as determined by the Teachers’ Retirement Board.
(5) (4) The employer has considered the availability of teachers or academic employees to fill the positions that would be vacated pursuant to this section.
(b) (1) The school district shall demonstrate and certify to the county superintendent that the formal action taken would result in either: (A) a net savings to the district. district; (B) a reduction of the number of certificated employees as a result of declining enrollment, as computed pursuant to Section 42238.5; or (C) the retention of certificated employees who are credentialed to teach in teacher shortage disciplines.
(2) The county superintendent shall certify to the Teachers’ Retirement Board that the a result specified in paragraph (1) can be demonstrated. The certification shall include, but not be limited to, the information specified in subdivision (c) of Section 14502.1. (b) of Section 14502. A district that qualifies under subparagraph (B) of paragraph (1) shall also certify that it qualifies as a declining enrollment district as computed pursuant to Section 42238.5.
(c) (1) The county office of education shall demonstrate and certify to the Superintendent of Public Instruction that the formal action taken would result in either: (A) a net savings to the county office of education. education; (B) a reduction of the number of certificated employees as a result of declining enrollment; or (C) the retention of certificated employees who are credentialed to teach in teacher shortage disciplines.
(2) The Superintendent of Public Instruction shall certify to the Teachers’ Retirement Board that the a result specified in paragraph (1) can be demonstrated. The certification shall include, but not be limited to, the information specified in subdivision (c) (b) of Section 14502.1. 14502.
(d) (1) The community college district shall demonstrate and certify to the chancellor’s office that the formal action taken would result in either: (A) a net savings to the district. district; (B) a reduction in the number of academic employees as a result of declining enrollment, as computed pursuant to subdivision (c) of Section 84701; or (C) the retention of faculty who are qualified to teach in teacher shortage disciplines.
(2) The chancellor shall certify to the Teachers’ Retirement Board that the a result specified in paragraph (1) can be demonstrated. The certification shall include, but not be limited to, the information specified in subdivision (c) of Section 84040.5. A community college district that qualifies under subparagraph (B) of paragraph (1) of subdivision (b) of this section shall also certify that it qualifies as a declining enrollment district as computed pursuant to subdivision (c) of Section 84701.
(i) (h) This section does shall not apply be applicable to any member otherwise eligible if the member receives any unemployment insurance payments arising out of employment with an employer subject to this part within during a period extending one year following beyond the effective date of the formal action under subdivision (a), action, or if the member is not otherwise eligible to retire for service.
(a) A member shall be granted credit at service retirement for each day of accumulated and unused sick leave days for of absence for illness or injury for which full salary is allowed to which the member was entitled on the member’s final day of employment with the employer or employers subject to coverage by the Defined Benefit Program during the last school term in which he or she earned creditable compensation pursuant to Section 22119.2 or 22119.3. The system shall accept certification from each employer with which the member has accumulated sick leave days for that period, provided this leave has not been transferred to another employer. by which the member was last employed to perform creditable service subject to coverage by the Defined Benefit Program.
(b) The amount of service credit to be granted shall be determined by dividing the number of days of accumulated and unused sick leave days leave of absence for illness or injury by the number of days of service the employer requires the member’s class of employees to perform in a school year during the member’s final year of creditable service subject to coverage by the Defined Benefit Program, which shall not be less than the minimum standard specified in Section 22138.5. The number of days shall not include school and legal holidays. In no event shall the divisor be less than 175. For members employed less than full time, the standards identified in Section 22138.5 shall be considered as the minimum full-time equivalent. For those standards identified in Section 22138.5 that are applicable to teachers or instructors and that are expressed only in terms of hours or instructional hours, the number of hours or instructional hours shall be divided by six to determine the number of days.
(d) (c) When the member has made application for service retirement under this part, the employer shall certify to the board, within 30 days following the effective date of the member’s service retirement or the date the application for retirement is received by the system’s headquarters office, whichever is later, the retirement, the number of days of accumulated and unused sick leave days leave of absence for illness or injury that the member was entitled to on the final day of employment. The board may assess a penalty on delinquent reports.
(e) (d) This section shall be applicable to any person who retires on or after January 1, 1999.
(B) Excess sick leave days granted by an employer other than the member’s last employer shall be deemed to be granted by the last employer and shall be included in the certification if the member was eligible to use those excess sick leave days while he or she was employed by the last employer. If, during the last year a member is employed to perform creditable service subject to coverage by the Defined Benefit Program, that member is employed by more than one employer, unused excess sick leave days shall be certified and paid for by the employer for the period in which the member was eligible to use those excess sick leave days.
(b) If a school employer fails to pay a bill charged according to subdivision (a), the Teachers’ Retirement Board may request the Superintendent of Public Instruction or the Chancellor of the California Community Colleges, as appropriate, to reduce state apportionments to the school employer by an amount equal to the amount billed. The Superintendent superintendent or chancellor shall make the reduction, and if requested by the board, direct the Controller to reduce the amount transferred from the General Fund to Section A or Section B, as appropriate, of the State School Fund by an equal amount, which shall instead be transferred to the Teachers’ Retirement Fund.
(a) A member who requests elects to purchase receive additional service credit as provided in this chapter and Chapter 14.2 (commencing with Section 22820) shall pay, prior to retirement, all contributions with respect to that service at the contribution rate for additional service credit, adopted by the board as a plan amendment, in effect on at the date of the request to purchase additional service credit. time of election. If the system is unable to inform the member or beneficiary of the amount required to purchase additional service credit prior to the effective date of the applicable allowance, the member or beneficiary may make the required payment within 30 working days after the date of mailing of the statement of contributions and interest required or the effective date of the appropriate allowance, whichever is later, except as provided in subdivision (i). later. The payment shall be paid in full before a member or beneficiary receives any adjustment in the appropriate allowance due because of that payment. Contributions shall be made in a lump sum, or in not more than 120 monthly installments, not to exceed ten years. installments. No installment, except the final installment, shall be less than twenty-five dollars ($25).
(b) If the member is employed to perform creditable service subject to coverage by the Defined Benefit Program on at the date time of the request to purchase additional service credit, election, the contributions shall be based upon the compensation earnable in the current school year or either of the two immediately preceding school years, whichever is highest.
(c) If the member is not employed to perform creditable service subject to coverage by the Defined Benefit Program on at the date time of the request to purchase additional service credit, election, the contributions shall be based upon the compensation earnable in the last school year of credited service or either of the two immediately preceding school years, whichever is highest, and additional regular interest shall be added to the contributions from July 1 of the subsequent year in which the member last performed creditable service subject to coverage by the Defined Benefit Program to 20 days after the date of the request. highest.
(d) The employer may pay the amount required as employer contributions for additional service credited under paragraphs (2), (6), (7), (8), (9), and (10) (9) of subdivision (a) of Section 22803.
(e) The Public Employees’ Retirement System shall transfer the actuarial present value of the assets of a person who makes an election pursuant to paragraph (11) (10) of subdivision (a) of Section 22803.
(f) (g) Regular interest shall be charged on the monthly unpaid balance if the member pays in installments. Regular interest may shall not be charged or be payable for the period of a delay caused by the system’s inability or failure to determine and inform the member or beneficiary of the amount of contributions and interest that is payable. The period of delay shall commence on the 20th day following the day on which the member or beneficiary who wishes to make payment evidences in writing to the system that he or she is ready, willing, and able to make payment to the system. The period of delay shall cease on the first day of the month following the mailing of notification of contributions and interest payable.
(i) The measurement of time within which the purchase of additional service credit described in subdivision (a) shall be made is subject to Section 22337.
(a) A member, other than a retired member, may request to purchase service member may elect to receive credit for any of the following:
(1) Service performed in a teaching position in the University of California or California State University that is not covered by another public retirement system. a publicly supported and administered university or college in this state.
(7) (6) Time spent on a sabbatical leave, approved by an employer in this state after meeting the requirements of Section 44969. leave after July 1, 1956.
(8) (7) Time spent on an approved leave, approved by an employer in this state, leave to participate in any program under the federal Mutual Educational and Cultural Exchange Program.
(9) (8) Time spent on leave approved by an employer in this state as an approved maternity or paternity leave, not to exceed 24 consecutive months, leave of two years or less in duration, regardless of whether or not the leave was taken before or after the addition of this subdivision.
(10) (9) Time spent on an employer-approved leave based on the guidelines for the Family and Medical Leave Act or the California Family Rights Act, or both, up to a total of 12 workweeks in any 12-month period. approved leave, up to four months in any 12-month period, for family care or medical leave purposes, as defined by Section 12945.2 of the Government Code, as it read on the date leave was granted, excluding maternity and paternity leave.
(11) (10) Time spent employed by the Board of Governors of the California Community Colleges in a position subject to coverage by the Public Employees’ Retirement System between July 1, 1991, and December 31, 1997, provided the member has elected to return to coverage under the State Teachers’ Retirement System pursuant to Section 20309 of the Government Code.
(b) In no event shall the member receive credit for service or time described in paragraphs (1) to (11), (10), inclusive, of subdivision (a) if the member has received or is eligible to receive credit for the same service or time in the Cash Balance Benefit Program under Part 14 (commencing with Section 26000) or another public retirement system.
(a) A member may request elect to receive credit under this part for time served in the active military service of the United States or of this state, including active service in any uniformed auxiliary to any branch of that military service authorized as an auxiliary by Congress or the Legislature, or in the full-time paid service of the American Red Cross prior to September 1957, if both of the following conditions exist:
(b) Time during which the member was absent without compensation for other cause, on leave leave, or otherwise, shall not be included.
(a) A member, other than a retired member, may request to purchase out-of-state service credit for any of the following:
(1) Service performed in a position while employed by a public educational institution located in another state or territory of the United States.
(2) Educational service performed as an employee of the United States.
(3) Service performed as an employee of an educational institution located outside of the United States and its territories that receives a portion of its funding from any foreign or domestic public sources and provides a level of education comparable to kindergarten and grades 1 to 12, inclusive, as determined by the applicable law of the jurisdiction in which the educational institution is located.
(4) As an employee of an educational institution that receives funds under Section 2701 of Title 22 of the United States Code.
(b) (a) The member may not A member, other than a retired member, may elect to purchase out-of-state service credited in a public retirement system for service covering public education in another state or territory of the United States or by the United States for its citizens. In no event shall the member receive credit for this service if the member retains has credit or is eligible to receive credit for the same service in the Cash Balance Benefit Program under Part 14 (commencing with Section 26000) or another public retirement system, excluding social security.
(c) (b) The amount of out-of-state service credit for which a member may purchase credit may not exceed the number of years of service performed by credited to the member in a position described in subdivision (a). the out-of-state retirement system or 10 years, whichever is less.
(d) (c) Out-of-state service credit may be purchased under this section by means of any of the following actions:
(4) (d) Paying the contributions required under the Defined Benefit Program pursuant to subdivision (a) of Section 22823 for the service not credited to a public retirement system. Contributions made to a plan qualified under Section 403(b) of the Internal Revenue Code may not be used to purchase credit for out-of-state service.
(e) Compensation for out-of-state service may shall not be used in determining the highest average annual compensation earnable when calculating final compensation.
(f) The service credit purchased under this section may shall not be used to meet the eligibility requirements for benefits provided under Sections 24001 and 24101.
(a) A member who requests to purchase out-of-state service credit pursuant to Section 22820 shall pay, prior to retirement, elects to receive credit for out-of-state service as provided in this chapter shall pay all contributions with respect to that service at the contribution rate for additional service credit adopted by the board as a plan amendment, in effect on at the date of the request, in accordance with subdivisions (a), (f), (g), and (h) of Section 22801. time of election.
(a) A member, other than a retired member, may request to purchase member may elect to receive up to five years of credit for nonqualified service credit provided the member is vested in the Defined Benefit Program as provided in Section 22156.
(b) A member who requests to purchase elects to receive credit for nonqualified service credit as provided in this chapter shall contribute to the retirement fund the actuarial cost of the service, including interest as appropriate, as determined by the board based on the most recent valuation of the plan with respect to the Defined Benefit Program in effect on the date of the request, in accordance with subdivisions (a), (f), (g), and (h) of Section 22801. Program.
(c) (2) This section shall apply only to an application If the system is unable to inform the member of the amount required to purchase nonqualified service credit on a properly executed form provided by the system and received at the system’s headquarters office prior to January 1, 2013, that is subsequently approved by the system. prior to the effective date of the applicable allowance, the member may make payment in full within 30 working days after the date of mailing of the statement of contributions and interest required or the effective date of the appropriate allowance, whichever is later.
(a) Notwithstanding Section 13340 of the Government Code, commencing July 1, 2003, 1999, a continuous appropriation is hereby annually made from the General Fund to the Controller, pursuant to this section, for transfer to the Teachers’ Retirement Fund. The total amount of the appropriation for each year shall be equal to 2.017 3.102 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members’ contributions are based, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5, and to be calculated annually on October 1, and shall be divided into four equal payments. The payments shall be made on, or the following business day after, July 1, October 1, December 15, and April 15 of each fiscal year. quarterly payments.
(b) Notwithstanding Section 13340 of the Government Code, commencing October 1, 2003, 1998, a continuous appropriation, in addition to the appropriation made by subdivision (a), is hereby annually made from the General Fund to the Controller for transfer to the Teachers’ Retirement Fund. The total amount of the appropriation for each year shall be equal to 0.524 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members’ contributions are based, as reported annually to the Director of Finance, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst pursuant to Section 22955.5, and to be calculated annually on October 1, and shall be divided into four equal quarterly payments. The percentage shall be adjusted to reflect the contribution required to fund the normal cost deficit or the unfunded obligation as determined by the board based upon a recommendation from its actuary. If a rate increase is required, the adjustment may be for no more than 0.25 percent per year and in no case may the transfer made pursuant to this subdivision exceed 1.505 percent of the total of the creditable compensation of the fiscal year ending in the immediately preceding calendar year upon which members’ contributions are based. At any time when there is neither an unfunded obligation nor a normal cost deficit, the percentage shall be reduced to zero. The funds transferred pursuant to this subdivision shall first be applied to eliminating on or before June 30, 2027, the unfunded actuarial liability of the fund identified in the actuarial valuation as of June 30, 1997.
(g) The provisions of amendments to this section during the 1991–92 Regular Session shall be construed and implemented to be in conformity with the judicial intent expressed by the court in California Teachers’ Association v. Cory, 155 Cal.App.3d 494.
(h) Subdivisions (a) through (g), inclusive, shall be inoperative on and after July 1, 2014, and shall become operative beginning the earlier of July 1, 2046, or July 1 of the first fiscal year after a 30-day notice has been sent to the Joint Legislative Budget Committee and the Controller in compliance with subdivision (d) of Section 22957.
(a) If a county superintendent of schools or employing agency or school district or community college district that reports directly to the system fails to make payment of contributions as provided in Section 23002, the board shall, in accordance with regulations, may assess penalties.
(b) The board shall, in accordance with regulations, may charge regular interest on any delinquent contributions under this part.
The county superintendent of schools or employing agency shall, or a school district or community college district may, with approval of the board, submit a report monthly to the system containing such information as the board may require in the administration of the plan. That monthly report shall be submitted electronically in an encrypted format provided by the system that ensures the security of the transmitted member data.
(a) If a county superintendent of schools or employing agency or school district or community college district that reports directly to the system, submits monthly reports, as specified by Section 23004, late, as defined in Section 23005, reports late or in unacceptable form, the board shall, in accordance with regulations, may assess penalties.
(b) The board shall, in accordance with regulations, may assess penalties, based on the sum of the employer and employee contributions required under this part by the report, report for late or unacceptable submission of reports, at a rate of interest equal to the regular interest rate. rate or a fee of five hundred dollars ($500), whichever is greater.
Any person whose accumulated retirement contributions were refunded, who wishes to establish concurrent membership, and who has received, or will qualify to receive, a retirement allowance from one or more of the retirement systems defined in Section 22115.2, may request elect to redeposit all or a portion of the accumulated retirement contributions that were refunded, with regular interest from the date of refund to the date of payment, without being employed to perform creditable service subject to coverage under the Defined Benefit Program.
(a) A death payment of not less than twenty thousand dollars ($20,000) shall be paid to the beneficiary, as designated pursuant to Section 23300, upon receipt of proof of death of a an active member, who had one or more years of credited service, including service deemed to the member under subparagraph (B) of paragraph (2) of subdivision (a) of Section 22851, at least one of which had been earned performed subsequent to the most recent refund of accumulated retirement contributions, if the member died during any one of the following periods:
(3) Within 12 months of the last day for which creditable compensation was paid, if the member was on an approved leave of absence without creditable compensation for reasons other than disability. disability or military service.
(d) A designated beneficiary may waive the right to the death payment in accordance with the requirements established by the system. The waiver shall be submitted on a properly executed form prescribed by the system. The filing of a waiver by a beneficiary constitutes a complete and immediate discharge of all obligations of the board, the system, or the plan to or on behalf of the beneficiary.
(a) A member may retire for service under this part upon written application for retirement to the board on a properly executed form provided by the system, board, under paragraph (1) or (2) as follows:
(1) The member has attained the age of 55 years of age or more and has at least five years of credited service, at least one year of which has been performed subsequent to the most recent refund of accumulated retirement contributions. The five years of credited service may include out-of-state service purchased pursuant to Section 22820. The number of years of credited service performed in California shall not be less than the number of years necessary to determine final compensation pursuant to Section 22134 or 22135, whichever is applicable to the member.
(2) The member is credited with service that is not used as a basis for benefits under any other public retirement system, excluding the federal social security system, if the member has attained the age of 55 years of age or older and retires concurrently under one or more of the retirement systems with which the member has concurrent membership as defined in Section 22115.2.
(a) The percentage of final compensation used to compute the allowance pursuant to Section 24202.5, 24203, 24205, 24209, 24209.3, 24210, 24211, 24212, or 24213 or 24205 of a member retiring on or after January 1, 1999, who has 30 or more years of credited service, excluding service credited pursuant to Section 22714, 22715, or 22717, shall be increased by two-tenths of 1 percentage point, provided that the sum of the percentage of final compensation used to compute the allowance, allowance in Section 24202.5, 24203, or 24205, including any adjustments for retiring before the normal retirement age, and the additional percentage provided by this section does not exceed 2.40 percent. For purposes of establishing eligibility for the increased allowance pursuant to this section only, credited service shall include credited service that a court has ordered be awarded to a nonmember spouse pursuant to Section 22652. A nonmember spouse shall also be eligible for the increased allowance pursuant to this section if the member had 30 or more years of credited service on the date the parties separated, as established in the judgment or court order pursuant to Section 22652.
(d) (b) Nonqualified service credit for which contributions pursuant to Section 22826 were made in a lump sum on or after January 1, 2000, or for which the first installment was made on or after January 1, 2000, may shall not be included in determining the eligibility for an increased allowance pursuant to this section.
(g) The cancellation of an option election in accordance with Section 24322 shall not cancel the election under this section. Upon cancellation of the joint and survivor option, one-half of the retired member’s retirement allowance as calculated under subdivision (a) shall become payable for the balance of the reduction period specified in subdivision (c).
(i) This section shall not apply to a member who retires for service pursuant to Section 24201.5, 24209, 24209.3, 24210, 24211, or 24212.
(j) This section shall not apply to a member subject to the California Public Employees’ Pension Reform Act of 2013.
(a) Less than three years of creditable service after termination of the most recent disability allowance, the member shall receive a retirement allowance which is the sum of the allowance calculated on credited service credit accrued after the termination date of the disability allowance, excluding credited service accrued or granted pursuant to Section 22717 or 22717.5 or Chapter 14 (commencing with Section 22800) or Chapter 14.2 (commencing with Section 22820) or Chapter 19 (commencing with Section 23200), the age of the member on the last day of the month in which the retirement allowance begins to accrue, and final compensation using compensation earnable or and projected final compensation, or a combination of both, plus the greater of either of the following:
(1) A service retirement allowance calculated on credited service credit accrued as of the effective date of the disability allowance, excluding credited service accrued or granted pursuant to Section 22717 or 22717.5 or Chapter 14 (commencing with Section 22800) or Chapter 14.2 (commencing with Section 22820) or Chapter 19 (commencing with Section 23200), the member’s age the age of the member on the last day of the month in which the retirement allowance begins to accrue, and projected final compensation to excluding service credited pursuant to Section 22717 or Chapter 14 (commencing with Section 22800) or Chapter 14.2 (commencing with Section 22820), to the termination date of the disability allowance.
(2) The disability allowance the member was eligible to receive receiving immediately prior to termination of the most recent disability that allowance, excluding children’s portions.
(1) A service retirement allowance calculated on all actual and projected service, excluding credited service accrued or granted service excluding service credited pursuant to Section 22717 or 22717.5 or Chapter 14 (commencing with Section 22800) or Chapter 14.2 (commencing with Section 22820) or Chapter 19 (commencing with Section 23200), the member’s age 22820), the age of the member on the last day of the month in which the retirement allowance begins to accrue, and final compensation using compensation earnable, or projected final compensation, or a combination of both.
(c) The allowance shall be increased by an amount based on any credited service accrued or granted service credited pursuant to Section 22714, 22715, 22717, or 22717.5 22717 or Chapter 14 (commencing with Section 22800) or Chapter 14.2 (commencing with Section 22820) or Chapter 19 (commencing with Section 23200), the member’s age on the last day of the month in which the retirement allowance begins to accrue, and final compensation using compensation earnable, or projected final compensation, or a combination of both.
(a) If a disability allowance granted under this part after June 30, 1972, is terminated for reasons other than those specified in Section 24213 and the member does not return to employment subject to coverage under the Defined Benefit Program, the member’s service retirement allowance, when payable, shall be based on projected service, excluding credited service accrued or granted service credited pursuant to Section 22717 or 22717.5 or Chapter 14 (commencing with Section 22800) or Chapter 14.2 (commencing with Section 22820), or Chapter 19 (commencing with Section 23200), projected final compensation, and the member’s age age of the member on the last day of the month in which the retirement allowance begins to accrue. The allowance payable under this section, excluding annuities payable from accumulated annuity deposit contributions, shall not be greater than the disability allowance the member was eligible to receive immediately prior to the earlier of the termination of that allowance or at normal retirement age, terminated disability allowance excluding children’s portions.
(b) The allowance shall be increased by an amount based on any credited service accrued or granted service credited pursuant to Section 22714, 22715, or 22717 or 22717.5 or Chapter 14 (commencing with Section 22800) or Chapter 14.2 (commencing with Section 22820) or Chapter 19 (commencing with Section 23200), the member’s age on the last day of the month in which the retirement allowance begins to accrue, and final compensation using compensation earnable, or projected final compensation, or a combination of both.
(c) If the total amount of credited service, other than projected service or credited service that accrued or was granted pursuant to Sections 22717, 22717.5, and 22826, except as provided in subdivision (c) of Section 22121, is equal to or greater than 30 years, the amounts identified in subdivisions (a) and (b) shall be calculated pursuant to Sections 24203.5 and 24203.6.
(a) On the date When a member who has been granted a disability allowance under this part after June 30, 1972, attains normal retirement age, or if the member has an eligible dependent child, on the date the last dependent child becomes ineligible, whichever is later, the at a later date when there is no dependent child, the disability allowance shall be terminated and the member shall be eligible for service retirement. The service retirement allowance shall be calculated on the projected final compensation and projected service to normal retirement age, excluding credited service accrued or granted service credited pursuant to Section 22717 or 22717.5 or Chapter 14 (commencing with Section 22800) or Chapter 14.2 (commencing with Section 22820) or Chapter 19 (commencing with Section 23200), and the member’s age on the last day of the month in which the service retirement allowance begins to accrue. 22820). The allowance payable under this section, excluding annuities payable from accumulated annuity deposit contributions, shall not be greater than the terminated disability allowance the member was eligible to receive immediately prior allowance. The allowance shall be increased by an amount based on any service credited pursuant to Section 22714, 22715, or 22717 or Chapter 14 (commencing with Section 22800) or Chapter 14.2 (commencing with Section 22820) and projected final compensation to normal retirement age, excluding children’s portions. age.
(d) (b) Upon retirement, the member may elect to modify the service retirement allowance payable in accordance with any option provided under this part.
(a) A member may, upon application for retirement, elect an option pursuant to this part Any member prior to the effective date of the member’s retirement under this part may elect an option that would provide an actuarially modified retirement allowance payable throughout the life of the member and the member’s option beneficiary or beneficiaries, as follows:
(1) Option 2.The modified retirement allowance shall be paid to the retired member. Upon member and upon the retired member’s death, an allowance equal to the modified amount that the retired member was receiving shall be paid to the option beneficiary. beneficiary
(2) Option 3.The modified retirement allowance shall be paid to the retired member. Upon member and upon the retired member’s death, an allowance equal to one-half of the modified amount that the retired member was receiving shall be paid to the option beneficiary.
(5) Option 6.The modified retirement allowance shall be paid to the retired member and upon the retired member’s death, an allowance equal to the modified amount that the retired member was receiving shall be paid to the option beneficiary. However, if the option beneficiary predeceases the retired member, the retirement allowance without modification for the option shall be payable to the retired member.
(7) Option 8.(A) A member Any member prior to the effective date of the member’s retirement may designate multiple option beneficiaries. The member who has designated more than one option beneficiary shall elect an option that the member is authorized to elect subject to subdivision (e) select an option for each beneficiary designated that would provide an actuarially modified retirement allowance payable throughout the lives of the member and the member’s option beneficiaries upon the member’s death. beneficiaries.
(B) The modified retirement allowance shall be paid to the retired member as long as the retired member and at least one of the option beneficiaries are living. Upon the retired member’s death, an allowance shall be paid to each surviving option beneficiary in accordance with the option elected respective to that beneficiary. However, if one or more of the option beneficiaries predeceases the retired member, the retired member’s allowance shall be adjusted in accordance with the option elected for the deceased beneficiary. The member shall determine the percentage of the unmodified allowance that will be modified by the election of Option 2, Option 3, Option 4, Option 5, Option 6, or Option 7 within under this option, the aggregate of which shall equal be no greater than 100 percent of the member’s unmodified allowance. The election of this option is subject to approval by the board.
(C) A member who is a party to an action for legal separation or dissolution of marriage and who is required by court order to designate a spouse or former spouse as an option beneficiary may designate his or her spouse or former spouse as a sole option beneficiary under subparagraphs (A) and (B). The member shall specify the option elected for the spouse or former spouse and the percentage of his or her unmodified allowance to be modified by the option, consistent with the court order. The percentage of the member’s unmodified allowance that is not modified by the option shall remain an unmodified allowance payable to the member. The aggregate of the percentages specified for the option beneficiary and the member’s remaining unmodified allowance, if any, shall equal 100 percent.
(b) For The option beneficiary, for purposes of this section, the member shall designate an option beneficiary on a properly executed retirement application. Except as otherwise provided by this chapter, the option shall become effective on the member’s benefit effective date. shall have been designated by the member on a form prescribed by the system and duly executed and filed with the system at the time of the member’s retirement.
(c) A member may revoke or change an election of an option at any time prior to the effective date of the member’s retirement under this part. A revocation or change of an option may not be made in derogation of a spouse’s or former spouse’s community property rights as specified in a court order.
(d) (1) This A member may change the beneficiary designated pursuant to this section without penalty by designating a trust as beneficiary if all of the following requirements are met: section shall become operative on January 1, 2000.
(A) The trust conforms to the definition of trust in Section 22149.
(B) The beneficiary of the trust is the same person as the previously named option beneficiary.
(C) The member files an application and any required documents in a form prescribed by the system.
(2) If a trust is determined to be invalid or terminates after the system commences payment to the trust, beginning on the effective date of termination of the trust, the benefit shall be paid to, and all associated rights and responsibilities shall accrue to, the beneficiary of the trust so long as that beneficiary is eligible to receive a benefit pursuant to this section.
(e) On or before July 1, 2004, the board shall evaluate the existing options and annuities provided pursuant to this section, Chapter 38 (commencing with Section 25000) of this part, and Part 14 (commencing with Section 26000) and adopt, as a plan amendment, any appropriate changes to the options and annuities based on the needs of members, participants, and their beneficiaries, including, but not limited to, providing economic security for beneficiaries and reducing complexity in the election of options and annuities by members and participants. The changes to the options and annuities may have no net actuarial impact on the retirement fund, and the board may establish any eligibility criteria it deems necessary to prevent an adverse actuarial impact to the fund. The board shall designate the effective date of the plan amendment, which shall be at least 18 months after the amendment is adopted by the board, and notwithstanding any other provision of this section, the options and annuities available to members and participants eligible to retire pursuant to this part and Part 14 (commencing with Section 26000), after the effective date of the plan amendment made pursuant to this subdivision, shall reflect the changes adopted as a plan amendment pursuant to this subdivision.
(f) Any member or participant who retired and elected an option or a joint and survivor annuity, or who filed a preretirement election of an option prior to the effective date of the plan amendment made pursuant to subdivision (d), may elect to change to a different option or joint and survivor annuity, as modified by the board as a plan amendment pursuant to subdivision (d), if the member or participant meets all the criteria established by the board to prevent a change in an option or joint and survivor annuity from having an adverse actuarial impact on the retirement fund, including, but not limited to, the effective date of a new designation or limitations on any changes if a member or participant, as the case may be, or beneficiary, or both, is currently not living or afflicted with a known terminal illness. The member or participant shall designate the change during the six-month period that begins with the effective date of the plan amendment, on a form prescribed by the system. Any member changing an option election pursuant to this subdivision is not subject to the allowance reduction prescribed in Section 24309 or 24310 as a result of the election. If a member or participant elects to change his or her option or joint and survivor annuity under this subdivision, the member or participant shall retain the same option beneficiary or beneficiaries as named in the prior designation.
(g) The Legislature reserves the right to modify this section prior to the effective date of the plan amendment made pursuant to subdivision (d) to prevent any actuarial impact to the fund.
(h) Except as described in subdivision (e) of Section 24300.1, on or after January 1, 2007, a member may not make a new election for an option or joint and survivor annuity described in subdivision (a).
(i) Any member with a retirement effective on or after January 1, 2007, shall elect an option from the options described in Section 24300.1. Any member making a new option election under the provisions of Section 24320, 24321, 24322, or 24323 shall elect an option from the options described in Section 24300.1 if the effective date of the new option election is on or after January 1, 2007.
(a) A member who qualifies to apply for retirement under Section 24201 or 24203 may make a preretirement election of an option, as provided in Section 24300.1 24300 without right of revocation or change after the benefit effective date, effective date of retirement, except as provided in this part. The preretirement election of an option shall become effective as of on the date of the member’s signature on a properly executed form prescribed by the system, subject to the following requirements: system is signed, providing the election is received in the system’s office in Sacramento within 30 days after the date of signature.
(1) The form includes the signature of the member’s spouse or registered domestic partner, if applicable, and the signature is dated.
(2) The date the form is received at the system’s headquarters office is within 30 days after the date of the member’s signature and, if applicable, the spouse’s or registered domestic partner’s signature.
(b) A member who makes a preretirement election of an Option 2, Option 3, Option 4, Option 5, Option 6, or Option 7 pursuant to Section 24300, or an election as described in paragraph (1), (2), or (3) of Section 24300.1 may subsequently make a preretirement election of the compound option described in paragraph (4) of subdivision (a) of Section 24300.1. Option 8. The member may retain the same option and the same option beneficiary as named in the prior preretirement election for a designated percentage within the compound option. election, as an option under Option 8.
(c) Upon the member’s death prior to the benefit effective date, effective date of retirement, the beneficiary who was designated under the option elected and who survives shall receive an allowance calculated under the option, under the assumption that the member retired for service pursuant to Chapter 27 (commencing with Section 24201) on the date of death. The payment of the allowance to the option beneficiary shall be in lieu of the family allowance provided in Section 23804, the payment provided in paragraph (1) of subdivision (a) of Section 23802, the survivor benefit allowance provided in Section 23854, and the payment provided in subdivisions (a) and (b) of Section 23852, except that if the beneficiary dies before all of the member’s accumulated retirement contributions are paid, the balance, if any, shall be paid to the estate of the person last receiving or entitled to receive the allowance. The accumulated annuity deposit contributions and the death payment provided in Sections 23801 and 23851 shall be paid to the beneficiary in a lump sum.
(e) The amount of the service retirement allowance prior to applying the option factor shall be calculated as of the earlier of the member’s age at death before retirement or age on the last day of the month in which the member requested service retirement be effective. The modification of the service retirement allowance by under the option elected shall be based on the ages of the member and the beneficiary designated under the option, as of at the date the election was signed.
(f) A member who terminates the service retirement allowance pursuant to Section 24208 shall not be eligible to file a preretirement election of an option until one calendar year elapses from the date the allowance is terminated. If the member retires again within one calendar year of the termination of their benefit pursuant to Section 24208, the retired member shall keep, upon subsequent retirement, the option and beneficiary or the unmodified election in place upon the date the termination of the benefits became effective.
(1) If the member’s option beneficiary or beneficiaries predecease the member within one calendar year of the termination of benefits and before the member has retired again, upon notification to the system, the system shall cancel the option and beneficiary from that portion of the benefit with reduction pursuant to Section 24309. The member shall not elect a new option or beneficiary pursuant to Section 24310 until one calendar year from the termination effective date has elapsed.
(2) If a final decree of dissolution of marriage or a judgment of nullity has been entered or an order of separate maintenance has been made within one calendar year of the termination of benefits and the member has not retired again, upon notification to the system, the system shall cancel or change the option election in accordance with the court order with reduction pursuant to Section 24309. Any additional changes shall not be made until one calendar year from the termination effective date has elapsed.
(g) (1) A member may change the beneficiary designated pursuant to this section without penalty by designating a trust as beneficiary if all of the following requirements are met:
(h) (g) The system shall inform members who are qualified to make a preretirement election of an option, through the annual statements of account, that the election of an option can be made.
(e) A survivor benefit allowance payable to a surviving spouse under this part pursuant to Chapter 23 (commencing with Section 23850) begins to accrue on the day the member would have attained normal retirement 60 years of age or on the day following the day of the member’s death, as elected by the surviving spouse, and ceases on the day of the surviving spouse’s death.
(f) (1) A Except as provided in paragraph (2), a child’s portion of an allowance under this part begins to accrue on the effective date of that allowance and ceases on the earlier of either the termination of the child’s eligibility or the termination of the allowance. An allowance payable because of a full-time student shall terminate on the first day of the month following the end of the school quarter or semester that is in progress in the month the full-time student attains 22 years of age. Any adjustment to an allowance because of a full-time student’s periods of nonattendance shall be made as follows: the allowance shall cease on the first day of the month in which return to full-time attendance was required and shall begin to accrue again on the first day of the month in which full-time attendance resumes.
(2) A child’s portion of a disability retirement allowance under Chapter 26 (commencing with Section 24100) ceases on the earlier of either:
(A) The termination date of the child’s eligibility.
(g) Supplemental payments issued under this part pursuant to Sections 24412 24701, 24702, and 24415 24703 to retired members, disabled members, and beneficiaries shall begin to accrue pursuant to Sections 24412 24701, 24702, and 24415 24703 and shall cease to accrue as of the termination dates specified in subdivisions (a) to (f), inclusive, of this section. inclusive.
(h) Notwithstanding any other provision of this part or other law, distributions payable under from the plan with respect to the Defined Benefit Program and the Defined Benefit Supplement Program shall be made in accordance with Section 401(a)(9) of the Internal Revenue Code of 1986 and related regulations. 1986, as amended, including the incidental death benefit requirements of Section 401(a)(9)(G) and the regulations thereunder, and the required beginning date of benefit payments that represent the entire interest of the member in the plan with respect to the Defined Benefit Program shall be as follows:
(1) In the case of a refund of contributions, as described in Chapter 18 12 (commencing with Section 23100) of this part and distribution of an amount equal to the balance of credits in a member’s Defined Benefit Supplement account, as described in Chapter 38 (commencing with Section 25000) of this part, payments shall commence part, not later than April 1 of the calendar year following the later of (A) the calendar year in which the member attains the age 70 1/2 at which the Internal Revenue Code of 1986 requires a distribution of benefits years of age or (B) the calendar year in which the member terminates employment within the meaning of subdivision (i).
(2) In the case of a retirement allowance, as defined in Section 22166, payments shall commence 22150, beginning not later than April 1 of the calendar year following the later of (A) the calendar year in which the member attains the age 70 1/2 at which the Internal Revenue Code of 1986 requires a distribution of benefits years of age or (B) the calendar year in which the member terminates employment within the meaning of subdivision (i), to continue over the life of the member or the lives of the member and the member’s option beneficiary, or over the life expectancy of the member or the life expectancy of the member and the member’s option beneficiary.
(2) (i) The date the member ceases employment For purposes of subdivision (h), “terminates employment” means the later of the termination of employment subject to coverage by the Defined Benefit Program or the termination of employment in a position subject to coverage under requiring or permitting membership in another public retirement system in this state if the compensation earnable while a member of the other system may be considered in the determination of final compensation pursuant to Section 22134 or 22134.5. the compensation from which may be included in final compensation under Section 22127.
(3) In the case of a monthly allowance resulting from the death of a member:
(A) (j) If the spouse is the sole beneficiary, payments shall commence not later than December 31 of the later of the calendar year in which the member would have attained the age at which the Internal Revenue Code of 1986 requires a distribution of benefits or the calendar year following the calendar year of the member’s death. This section shall become operative on January 1, 2002.
(B) If the spouse is not the sole beneficiary, payments shall commence not later than December 31 of the calendar year following the calendar year of the member’s death.
(4) In the case of a distribution of the member’s accumulated retirement contributions resulting from the death of a member or beneficiary or other lump-sum death benefit that represents the member’s entire interest in the plan, including the death payment, payments shall be completed not later than December 31 of the calendar year of the fifth anniversary of the date of the member’s or beneficiary’s death.
(a) If the system board determines that contributions are due the system under this part from a retired member, disabled member, or a person who has died, died and the person is unable to pay the amount due, the system board may withhold all or part of subsequent payments due the retired member, disabled member, or survivor, until the amounts withheld equal the contributions due plus regular interest to the date of payment. Total contributions plus regular interest due shall be recovered by the system within 18 months.
(b) Any payment of contributions that a member or beneficiary is required by law to make to the system shall be paid upon receipt of written notice from the system, except as provided in subdivision (c). system. Payment may be made either in a lump sum or installments, installments as permitted by the system. Payment of contributions due the system not discovered or unpaid, for whatever reason, prior to the time of or retirement, disability, or death shall be paid prior to granting an allowance or benefit to the member or beneficiary unless, in the opinion of the board, the making of the payment prior to receipt of an allowance or benefit would impose an undue hardship, in which case payment may be made by the system withholding not more than 18 consecutive monthly installments from payments due from the system. Those installments may shall not be less than twenty-five dollars ($25) per month, month except for the last installment, which that may be less than twenty-five dollars ($25). less.
(c) The mode of notice and the measurement of time within which a redeposit described in subdivision (b) shall be made is subject to Section 22337.
(c) In the event that the total amount of investment earnings of the plan with respect to the Cash Balance Benefit Program for any plan year exceeds the sum of the total amount required to credit all employee and employer accounts at the minimum interest rate for the plan year plus the administrative costs of the plan with respect to the Cash Balance Benefit Program for the plan year, the board shall determine the amount, if any, that is to be credited to the Gain and Loss Reserve for the plan year. That determination shall be made upon recommendation of the actuary based on the following the adoption by the board of the actuarial valuation undertaken following the plan year pursuant to Section 26211 26202, but no later than June 30 following the end of the plan year. In determining whether an amount is to be credited to the Gain and Loss Reserve, the board shall consider the sufficiency of the reserve in light of the goal established for the sufficiency and the recommendations of the actuary.
(a) Employers shall report report, on a form prescribed by the system, contributions paid on behalf of each participant in each pay period, along with all other information required by the system no later than 10 working days following the last day of the pay period in which the salary was earned, and the report shall be delinquent immediately thereafter. That report shall be submitted electronically in an encrypted format provided by the system that ensures the security of the transmitted participant data.
(b) The board shall, in accordance with regulations, may assess a penalty against the employer for a report submitted late or in an unacceptable form. The penalty shall be based upon the sum of the employee and employer contributions required to be reported under this part at a rate of interest equal to the regular interest rate, accruing on the balance for the period between the time the report was due and the time an acceptable report is actually received by the system.
(b) Payments shall be delinquent on the 11th working day thereafter, and interest shall begin to accrue at the regular minimum interest rate from that day until payment for the contributions and interest contribution report is received in full by the system. The board, in accordance with regulations, shall board may collect interest for late payment from the employer under this subdivision.
(c) The employee contribution rate shall not be less than the employer contribution rate. If the terms of a collective bargaining agreement that is in effect on January 1, 2014, would be impaired by this subdivision, this subdivision shall not apply to the employer and participants subject to that contract until the expiration of that contract. A renewal, amendment, or any other extension of that contract shall be subject to the requirements of this subdivision.
(d) (c) The employee contribution rate and employer contribution rate shall be the same for each participant employed by the employer.
(e) (d) The employee contribution rate and employer contribution rate shall be in one-quarter percent increments.
(f) (e) The employee contribution rate and employer contribution rate as determined under the collective bargaining agreement shall become effective on the first day of the plan year following notification to the system and shall remain in effect for at least one plan year. However, the employee contribution rate and the employer contribution rate as determined under the collective bargaining agreement may become effective as of the first day of the plan year in which notice is given if it is so provided in the collective bargaining agreement and if a lump-sum contribution is made to the plan equal to the additional employee and employer contributions, if any, that would have been required if the contribution rates had been in effect on the first day of the plan year. Interest shall be credited at the minimum interest rate with respect to the lump-sum contribution commencing with the first month after the contribution is made.
(g) (f) The employer has filed notice of the employee contribution rate and the employer contribution rate on a form prescribed by the system.
(a) All employee contributions shall be credited to employee accounts and all employer contributions shall be credited to employer accounts effective as of the day contributions are required to be transmitted to the plan pursuant to subdivision (a) of Section 26303. first working day following the date all contributions to fully satisfy the contribution report as submitted by the employer are received by the system.
(c) (d) Interest shall not be credited to employee accounts and employer accounts that have been transferred to the Annuitant Reserve for payment of an annuity.
(b) This section shall not be construed to provide the nonparticipant spouse with any right to elect a joint and survivor annuity pursuant to paragraphs (3) and (4) of subdivision (b) of Section 26807 or subdivision (a) of Section 26807.5. 26807.
The compensation earnable during any period of service as a member of the Judges’ Retirement System, the Judges’ Retirement System II, the Legislators’ Retirement System, or the Defined Benefit Program of the State Teachers’ Retirement Plan shall be considered compensation earnable as a member of this system for purposes of computing final compensation for the member, if he or she retires concurrently under both systems.