Today's Law As Amended

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AB-816 State Teachers’ Retirement System.(1999-2000)



SECTION 1.

 Section 22106 of the Education Code is amended to read:

22106.
 “Annuity deposit contributions” means additional contributions made by a member prior to July 1, 1972, above those required for credited service for the purpose of providing additional retirement income.

SEC. 2.

 Section 22128 of the Education Code is amended to read:

22128.
 “Early retirement” and “early retirement age” mean the age of 55 years, which is the age upon attainment of which the member becomes eligible under the Defined Benefit Program for a service retirement allowance with reduction because of age and without special qualifications.

SEC. 3.

 Section 22138.5 of the Education Code is amended to read:

22138.5.
 (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. 
(2) The copies of each agreement shall be submitted electronically in a format determined by the system that ensures the security of the transmitted member data.
(3) The copies shall be electronically submitted annually to the system on or before July 1, or on or before the effective date of the agreement, whichever is later.
(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). 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. 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. 
(e) This section shall become operative on July 1, 2013.

SEC. 4.

 Section 22141 of the Education Code is amended to read:

22141.
 (a)  Notwithstanding Section 22140, “improvement factor” means an increase of 2 percent in benefits provided under Sections 24408 and 24409 for each year commencing on  September 1, 1981, and under Section 24410.5 for each year commencing September 1, 2001, and under Sections 24410.6 and 24410.7 for each year commencing September 1, 2002. The improvement  2002. The  factor shall not be compounded nor shall it be applicable to annuities payable from the accumulated annuity deposit contributions or the accumulated tax-sheltered annuity contributions. The Legislature reserves the right to adjust the amount of the improvement factor up or down as the economic conditions dictate. No adjustments of the improvement factor shall reduce the monthly retirement allowance or benefit below that which would be payable to the recipient under this part had this section not been enacted.
(b) Beginning July 1, 2014, the improvement factor shall vest for an active member in any calendar year in which active members paid increased member contributions pursuant to Section 22901.7.
(c) If, for any reason, the increased employee contribution referenced in subdivision (b), and as required by subdivisions (a) and (b) of Section 22901.7, ceases to be legally required to be made pursuant to the act that added this subdivision, then the Legislature reserves the right to adjust the amount of the improvement factor up or down as the economic conditions dictate for all members who retire on or after January 1, 2014. No adjustments of the improvement factor shall reduce the monthly retirement allowance or benefit below that which would be payable to the recipient under this part had this section not been enacted.
(d) For members who retired before the calendar year in which Section 22901.7 was added, the Legislature reserves the right to adjust the amount of the improvement factor up or down as the economic conditions dictate. No adjustments of the improvement factor shall reduce the monthly retirement allowance or benefit below that which would be payable to the recipient under this part had this section not been enacted.

SEC. 5.

 Section 22146 of the Education Code is amended to read:

22146.
 “Member” means any person, unless excluded under other provisions of this part, who has performed creditable service as defined in Section 22119.5 or 22119.6  and has earned creditable compensation for that service and has not received a refund for that service and, as a result, is subject to the Defined Benefit Program. A member’s rights and obligations under this part with respect to the Defined Benefit Program shall be determined by the applicability of subdivision (a), (b), (c), or (d), and subject to any applicable exceptions under other provisions of this part.
(a) An active member is a member who is not retired or disabled and who earns creditable compensation during the school year.
(b) An inactive member is a member who is not retired or disabled and who has not earned creditable compensation during the current or preceding school year. school year immediately prior to and the school year during which the member retires for service. 
(c) A disabled member is a member to whom a disability allowance is payable under Chapter 25 (commencing with Section 24001).
(d) A retired member is a member who has terminated employment and has retired for service under the provisions of Chapter 27 (commencing with Section 24201), or has retired for disability under the provisions of Chapter 26 (commencing with Section 24100) or retired for service or disability under the provisions of Chapter 21 (commencing with Section 23400), and to whom a retirement allowance is therefore payable.

SEC. 6.

 Section 22147.5 of the Education Code is amended to read:

22147.5.
 “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 member is eligible to purchase credit pursuant to Chapter 14 (commencing with Section 22800), Chapter 14.2 (commencing with Section 22820), or Chapter 14.5 (commencing with Section 22850).

SEC. 7.

 Section 22148 of the Education Code is amended to read:

22148.
 “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.

SEC. 8.

 Section 22149 of the Education Code is amended to read:

22149.
 (a)  “Option beneficiary” means the person or trust  designated by a member to receive a retirement allowance under the Defined Benefit Program upon the member’s death.
(b) For purposes of this section, “trust” means an irrevocable trust with the following characteristics:
(1) The trust satisfies the requirements of subparagraph (A) or (C) of paragraph (4) of subdivision (d) of Section 1396p of Title 42 of the United States Code.
(2) The trust satisfies the requirements of Section 1.401(a)(9)-4 of Title 26 of the Code of Federal Regulations.
(3) The trust, or the account in a pooled trust, is for the sole benefit of a single beneficiary and other beneficiaries to the trust, if any, are successor beneficiaries.
(4) The beneficiary of the trust who is beneficiary with respect to the trust’s interest in the member’s benefit shall be considered the designated option beneficiary for the purpose of determining eligibility for, and the amount and duration of, benefits under the plan.

SEC. 9.

 Section 22151 of the Education Code is amended to read:

22151.
 “Overtime” means the aggregate creditable service in excess of one year (1.000) of creditable service that is performed by a member person  in a school year.

SEC. 10.

 Section 22156 of the Education Code is amended to read:

22156.
 “Plan vesting,” with respect to benefits payable under the Defined Benefit Program, means the member has met the credited service requirement for receipt of a benefit, and has a right to receive the benefit at a future date provided all other conditions required to receive the benefit are also met.

SEC. 11.

 Section 22156.1 of the Education Code is amended to read:

22156.1.
 “Present value,” for purposes of Section 22718, means the amount of money needed on the effective date of retirement to reimburse the system for the actuarially determined cost of the portion of a member’s retirement allowance attributable to unused excess sick leave days. The present value on the effective date of retirement shall equal the number of unused excess sick leave days divided by the number of base days, multiplied by the prior year’s compensation earnable multiplied by the present value factor.

SEC. 12.

 Section 22160 of the Education Code is amended to read:

22160.
 “Provisional vesting” means the member has reached the minimum age requirement and has attained the credited service required under the Defined Benefit Program for eligibility to receive a retirement allowance, and the member is entitled to terminate employment and retire at any time to receive a retirement allowance.

SEC. 13.

 Section 22163 of the Education Code is amended to read:

22163.
 “Reinstatement” means the change in status with respect to the Defined Benefit Program under this part from a disabled or retired member to an active or inactive member and termination of one of the following:
(a) A service retirement allowance pursuant to Section 24208.
(b) A disability retirement allowance pursuant to Section 24117.
(c) A disability allowance pursuant to Section 24004, 24006, or 24015.
(d) A service retirement allowance or disability retirement allowance pursuant to Section 23404.

SEC. 14.

 Section 22165 of the Education Code is amended to read:

22165.
 “Retirement” means termination of employment subject to coverage by the plan and a change in status from an inactive member, an active member, or a disabled member to a retired member.

SEC. 15.

 Section 22307 of the Education Code is amended to read:

22307.
 (a) The board may authorize the transfer and disbursement of funds from the retirement fund for the purpose of carrying into effect this part and Part 14 (commencing with Section 26000). That action shall require signatures of either the board chairperson and vice chairperson, or the signatures of the board chairperson or vice chairperson and the chief executive officer or any employee of the system designated by the chief executive officer.
(b) Notwithstanding Section 13340 of the Government Code, the board may disburse funds for benefits payable under this part and Part 14 (commencing with Section 26000), for the payment of refunds and for investment transactions. Funds for these purposes shall not require appropriation by the annual Budget Act.
(c) Funds for the payment of administrative expenses are not continuously appropriated, and funds for that purpose shall be appropriated by the annual Budget Act.

SEC. 16.

 Section 22402 of the Education Code is amended to read:

22402.
 Earned interest on plan assets with respect to the Defined Benefit Program that is not credited to member accounts under the Defined Benefit Program and the plan’s other income with respect to the Defined Benefit Program shall be allocated to provide benefits payable under the Defined Benefit Program.

SEC. 17.

 Section 22500 of the Education Code is amended to read:

22500.
 All persons who were members of the California State Teachers’ Retirement System on June 30, 1996, are members of the Defined Benefit Program under the plan, in accordance with Section 401(a) of the Internal Revenue Code of 1986, as amended.

SEC. 18.

 Section 22508 of the Education Code is amended to read:

22508.
 (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.
(b) Subdivision (a) shall apply to a member who becomes employed by the state only if the member is also one of the following:
(1) Represented by a state bargaining unit that represents educational consultants, professional educators, or librarians employed by the state.
(2) Excluded from the definition of “state employee” in subdivision (c) of Section 3513 of the Government Code, but performing, supervising, or managing work similar to work performed by employees described in paragraph (1).
(3) In a position not covered by civil service and in the executive branch of government, but performing, supervising, or managing work similar to work performed by employees described in paragraph (1).
(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, if the employer offers coverage by the Public Employees’ Retirement System. 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.

SEC. 19.

 Section 22701 of the Education Code is amended to read:

22701.
 (a) Service performed prior to July 1, 1972, shall be credited according to the provisions of law in effect at the time service was performed.
(b) Creditable service performed on or after July 1, 1972, and credited under the Defined Benefit Program, shall be credited in the proportion that the member’s creditable compensation for that service bears to the member’s compensation earnable.

SEC. 20.

 Section 22713 of the Education Code is amended to read:

22713.
 (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: 
(b) The regulations shall include, but shall not be limited to, the following:
(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 of full-time employment 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 a break in service. For the purposes of this paragraph: reduction in workload. For purposes of this subdivision, sabbaticals and other approved leaves of absence shall not constitute a break in service. 
(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, up to and including 10 years. 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.
(c) Prior to the reduction of a member’s workload under this section, the employer in conjunction with the administrative staff of the State Teachers’ Retirement System and the Public Employees’ Retirement System, shall verify the member’s eligibility for the reduced workload program.
(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.

SEC. 21.

 Section 22900 of the Education Code is amended to read:

22900.
 By accepting employment to perform creditable service,  employment,  a person consents to make contributions pursuant to Sections Section  22901 and 22901.7  for service and compensation credited under this part.

SEC. 22.

 Section 22951 of the Education Code is amended to read:

22951.
 In addition to any other contributions required by this part, employers shall, on account of liability for benefits pursuant to Section 22717, contribute monthly to the Teachers’ Retirement Fund 0.25 percent of the creditable compensation upon which members’ contributions under this part are based.

SEC. 23.

 Section 22956 of the Education Code is amended to read:

22956.
 Employer and state contributions made to the plan pursuant to this part for service credited under the Defined Benefit Program shall not be credited to the individual member accounts. These contributions shall be held in the reserves of the plan to finance the employers’ share of the cost of all benefits payable under the plan with respect to the Defined Benefit Program. Under no circumstances shall these employer and state contributions be allocated or awarded to individual members, their spouses, or beneficiaries.

SEC. 24.

 Section 23001 of the Education Code is amended to read:

23001.
 Each county superintendent, district superintendent, chancellor of a community college district, or other employing agency that reports directly to the system shall draw requisitions for contributions required by Sections 22901, 22901.7, 22950, and 22950.5 22901 and 22950  in favor of the State Teachers’ Retirement System, and the requisitions, when allowed and signed by the county auditor, shall constitute a warrant against the county treasury. The county superintendent, district superintendent, chancellor of a community college district, or other employing agency thereupon shall forward the warrants to the board in the system’s headquarters office.  Sacramento.  The amounts received shall be deposited immediately in the State Treasury to the Teachers’ Retirement Fund.

SEC. 25.

 Section 23008 of the Education Code is amended to read:

23008.
 (a) If more or less than the required contributions specified in this part and Section 44987 are paid to the system based on any payment of creditable compensation to a member, proper adjustments shall be made on a monthly report, by the county superintendent, district superintendent, chancellor of a community college district, or other employing agency who submitted the report, within 60 days after discovery or notification by the system and any refunds shall be made to the member within the same time period by the employing agency.
(b) The board shall, in accordance with regulations,  may  assess penalties for late or improper adjustments pursuant to Section 23006. These penalties shall be no more than the regular interest as defined in Section 22162. The penalty so assessed shall be deemed interest earned in the year in which it was received.
(c) If a required report contains erroneous information and the system, acting in good faith, disburses funds from the Teacher’s Retirement Fund based on that information, the county superintendent, district superintendent, chancellor of a community college district, or other employing agency who submitted the report shall reimburse the retirement fund in full for the amount of the erroneous disbursement. Reimbursement shall be made immediately upon notification by the system.

SEC. 26.

 Section 23102 of the Education Code is amended to read:

23102.
 Prior to the system paying a refund of accumulated retirement contributions under this part, the employer shall certify that the member’s employment has been terminated unless the employment was terminated 12 months or more prior to the date the member signed the refund application.

SEC. 27.

 Section 23300 of the Education Code is repealed.

23300.
 (a) A member of the Defined Benefit Program may designate a beneficiary to receive benefits payable under this part upon the member’s death. A beneficiary designation may not be made in derogation of a community property interest of a nonmember spouse, as defined by Section 25000.9, with respect to service or contributions credited under this part, unless the nonmember spouse has previously obtained an alternative order pursuant to Section 2610 of the Family Code.
(b) A member’s beneficiary designation for benefits payable under the Defined Benefit Program, including a designation made pursuant to Section 24300 or 24300.1, shall also apply to benefits payable under the Defined Benefit Supplement Program. A beneficiary designation shall be in writing on a form prescribed by the system and executed by the member.
(c) A beneficiary designation shall not be valid unless it is received in the system’s headquarters office prior to the member’s death.
(d) A member may change or revoke a beneficiary designation at any time by making a new designation pursuant to this section.
(e) This section is not applicable to the designation of an option beneficiary or an annuity beneficiary under this part.
(f) An option beneficiary may designate a death beneficiary who would, upon the death of the option beneficiary, be entitled to receive the option beneficiary’s accrued monthly allowance.

SEC. 28.

 Section 23300 is added to the Education Code, to read:

23300.
 (a) A member of the Defined Benefit Program may at any time designate a beneficiary, or change the designation of a beneficiary, to receive benefits payable under this part, except that no beneficiary designation may be made in derogation of the community property share of any nonmember spouse under this part when any benefit is derived, in whole or in part, from community property contributions or service credited during the period of marriage, unless the nonmember spouse has previously obtained an alternative order for distribution pursuant to Section 2610 of the Family Code. A designation of beneficiary shall be in writing on a form prescribed by the system, executed by the member, witnessed by two witnesses, neither of whom may be beneficiaries. To be valid the instrument shall be received in the office of the system in Sacramento before the member’s death.
(b) Except as otherwise stated in this section, the designation of beneficiary, other than an option beneficiary, may be revoked by the party making the designation, and a different beneficiary designated in the same manner as provided in this section.
(c) An option beneficiary may designate a death beneficiary who would, upon the death of the option beneficiary, be entitled to receive the option beneficiary’s accrued monthly allowance.

SEC. 28.5.

 Section 23300 is added to the Education Code, to read:

23300.
 (a) A member of the Defined Benefit Program may designate a beneficiary to receive benefits payable under this part upon the member’s death. A beneficiary designation may not be made in derogation of a nonmember spouse’s community property interest with respect to service or contributions credited under this part unless the nonmember spouse has previously obtained an alternative order pursuant to Section 2610 of the Family Code.
(b) A member’s beneficiary designation for benefits payable under the Defined Benefit Program, including a designation made pursuant to Section 24300, shall also apply to benefits payable under the Defined Benefit Supplement Program. A beneficiary designation shall be in writing on a form prescribed by the system, executed by the member, and witnessed by two witnesses who are not designated as a beneficiary for benefits payable under either the Defined Benefit Program or the Defined Benefit Supplement Program.
(c) A beneficiary designation shall not be valid unless it is received in the office of the system in Sacramento prior to the member’s death.
(d) A member may change or revoke a beneficiary designation at any time by making a new designation pursuant to this section.
(e) This section shall not be applicable to the designation of an option beneficiary or an annuity beneficiary under this part.
(f) An option beneficiary may designate a death beneficiary who would, upon the death of the option beneficiary, be entitled to receive the option beneficiary’s accrued monthly allowance.

SEC. 29.

 Section 23800 of the Education Code is amended to read:

23800.
 (a) This chapter governs the eligibility provisions, benefit provisions, allowance computations, and related provisions for the benefits payable under this part with respect to the Defined Benefit Program upon the death of eligible members. “Members,” as used in this chapter, means all members who were receiving a disability allowance on October 15, 1992, and all persons who were members of the plan under this part on October 15, 1992, who were not receiving an allowance and who did not elect, pursuant to Chapter 21.5 (commencing with Section 23700), to be covered under Chapter 23 (commencing with Section 23850).
(b) This chapter also contains three sections related to survivor benefits payable on account of deaths that occurred prior to July 1, 1972.

SEC. 30.

 Section 23850 of the Education Code is amended to read:

23850.
 This chapter governs the eligibility provisions, benefit provisions, allowance computations, and related provisions for the benefits payable under this part with respect to the Defined Benefit Program upon the death of eligible members. “Member,” as used in this chapter, means all persons who become members of the plan under this part on or after October 16, 1992, and all persons who were members as of October 15, 1992, who elected, pursuant to Chapter 21.5 (commencing with Section 23700), to be covered under the death benefit provisions of this chapter.

SEC. 31.

 Section 24201 of the Education Code is amended to read:

24201.
 (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.
(b) Application for retirement under paragraph (2) of subdivision (a) may be made even if the member has not earned five years of credited service.

SEC. 32.

 Section 24209 of the Education Code is amended to read:

24209.
 (a) Upon retirement for service following reinstatement, the member shall receive a service retirement allowance equal to the sum of both of the following:
(1) An amount equal to the monthly allowance the member was eligible to receive  receiving  immediately preceding the most recent  reinstatement, exclusive of any amounts payable pursuant to Section 22714 or 22715, increased by the improvement factor that would have been applied to the allowance if the member had not reinstated.
(2) An amount calculated pursuant to Section 24202, 24202.5, 24202.6,  24203, 24203.5, or 24206 based  on credited service accrued, including any service granted pursuant to Section 22717 or 22717.5,  service credited  subsequent to the most recent reinstatement, the member’s age on the last day of the month in which the retirement allowance begins to accrue,  at retirement,  and final compensation.
(b) If the total amount of credited service accrued,  service,  other than that accrued pursuant to Sections 22714, 22715, 22717, 22717.5, and 22826, except as provided in subdivision (c) of Section 22121,  and 22826,  is equal to or greater than 30 years, the amounts identified in paragraphs (1), for members who initially retired on or after January 1, 1999,  (1)  and (2) of subdivision (a) shall be calculated pursuant to Section 24203.5. The improvement factor required in paragraph (1) of subdivision (a) shall be based on the allowance calculated pursuant to this subdivision. 
(c) If the total amount of credited service accrued,  service,  other than that accrued pursuant to Sections 22714, 22715, 22717, 22717.5, and 22826, except as provided in subdivision (c) of Section 22121,  and 22826,  is equal to or greater than 30 years, upon retirement for service following reinstatement, a member who retired pursuant to Section 24213, and received the terminated disability allowance for the prior retirement, shall receive a service retirement allowance equal to the sum of the following:
(1) An amount based on the credited service accrued, including any service granted pursuant to Section 22717 or 22717.5,  service credit accrued  prior to the effective date of the disability allowance, the member’s age at the prior retirement increased by the factor provided in Section 24203.5, and projected final compensation.
(2) An amount calculated pursuant to Section 24202, 24202.5, 24202.6,  24203.5, or 24206 based  on credited service accrued, including any service granted pursuant to Section 22717 or 22717.5,  service credited  subsequent to the reinstatement, 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. at retirement, and final compensation. 
(d) For purposes of this section, final compensation shall not be based on a determination of compensation earnable as described in subdivision (f) of Section 22115.

SEC. 33.

 Section 24211 of the Education Code is amended to read:

24211.
 When a member who has been granted a disability allowance under this part after June 30, 1972, returns to employment subject to coverage under the Defined Benefit Program and performs:
(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.
(b) Three or more years of creditable service after termination of the most recent  disability allowance, the member shall receive a retirement allowance that is the greater of the following:
(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.
(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.
(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.
(d) If the total amount of credited service, other than projected service or credited  service that accrued or was granted  pursuant to Sections 22714, 22715, 22717, 22717.5, and 22826, except as provided in subdivision (c) of Section 22121,  and 22826,  is equal to or greater than 30 years, the amounts identified in subdivisions (a) to (c), inclusive,  and (b)  shall be calculated pursuant to Sections 24203.5 and 24203.6. Section 24203.5. 
(e) For purposes of this section, final compensation shall not be based on a determination of compensation earnable as described in subdivision (f) of Section 22115.
(f) Upon retirement, the member may elect to modify the service retirement allowance payable in accordance with any option provided under this part.

SEC. 34.

 Section 24307 of the Education Code is amended to read:

24307.
 (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)  Section 24202, 24202.5, 24203, 24203.5, 24206, 24209, 24210, 24211, or 24212  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.
(d) If the member subsequently retires for service, and the elected option has not been canceled pursuant to Section 24309, a modified service retirement allowance computed under Section 24300 or 24300.1  and the option elected shall be paid.
(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 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:
(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.
(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.
(h) This section shall become operative on January 1, 2000.

SEC. 35.

 Section 24410.5 of the Education Code is amended to read:

24410.5.
 (a) Notwithstanding any provision of this part, including, but not limited to, subdivision (e) of Section 22664, the annual allowance payable on the effective date of this section to a retired member, an option beneficiary, or a surviving spouse receiving an allowance pursuant to either Section 23805 or 23855 shall not be less than the amount identified in the following schedule for the number of years of the member’s credited service under the Defined Benefit Program at the time of the member’s retirement, disability, or death, excluding service credited pursuant to Sections 22714, 22715, 22717, 22717  and 22826, after the application of all allowances and allowance increases authorized by this part, including those specified in Sections 24412 and 24415, as those sections read on December 31, 1999, and  excluding annuities payable from the accumulated annuity deposit contributions or the accumulated tax-sheltered annuity contributions:
 20 years of credited service ........................
$15,000
 21 years of credited service ........................
$15,500
 22 years of credited service ........................
$16,000
 23 years of credited service ........................
$16,500
 24 years of credited service ........................
$17,000
 25 years of credited service ........................
$17,500
 26 years of credited service ........................
$18,000
 27 years of credited service ........................
$18,500
 28 years of credited service ........................
$19,000
 29 years of credited service ........................
$19,500
 30 years or more of credited service ........................
$20,000
(b) Notwithstanding subdivision (a), the amount identified in the schedule in subdivision (a) shall be reduced:
(1) By 50 percent for a beneficiary receiving an allowance under Option 3 or Option 7.
(2) By one-third for an option beneficiary receiving an allowance under Option 4 after the death of the member or for a member receiving an allowance under Option 4 after the death of the option beneficiary.
(3) By 50 percent for an option beneficiary receiving an allowance under Option 5 after the death of the member or for a member receiving an allowance under Option 5 after the death of the option beneficiary.
(4) By a percentage equal to 100 percent minus the percentage of the member’s modified allowance received by the option beneficiary for each option beneficiary receiving an allowance under Option 8.
(5) By 60 percent for a surviving spouse receiving an allowance pursuant to subdivision (a) of Section 23805.
(6) By 50 percent for a surviving spouse receiving an allowance pursuant to subdivision (c) of Section 23805 or Section 23855.
(c) A member to whom a disability allowance is payable on January 1, 2000, who subsequently receives a service retirement allowance pursuant to Section 24213 shall, upon the retirement for service, receive an increase in the service retirement allowance pursuant to this section.
(d) A member, beneficiary, or surviving spouse may receive an allowance pursuant to this section only if the member was an active member at the time of the member’s retirement, or death and, for those members who retired for service, the member retired on or after age 55, unless the member’s allowance was not subject to a reduction due to retirement prior to an age specified in this part.
(e) A retired member, option beneficiary, or surviving spouse subject to this section shall receive the annual minimum allowance pursuant to this section unless the system receives in writing, on a form prescribed by the system, notification from the member, option beneficiary, or surviving spouse before May 1, 2000, of his or her election not to receive the increase provided under this section.
(f) Benefits payable under this section shall be initially paid by the system on July 1, 2000.

SEC. 36.

 Section 24415 of the Education Code is amended to read:

24415.
 (a) The proceeds of the Supplemental Benefit Maintenance Account shall be distributed annually in quarterly supplemental payments commencing on September 1, 1990, to retired members, disabled members, and beneficiaries, as defined in subdivision (a) of Section 22107.  beneficiaries.  The amount available for distribution in any fiscal year shall not exceed the amount necessary to restore purchasing power up to 85 75  percent of the purchasing power of the base allowance,  initial monthly allowance  after the application of all allowance increases authorized by this part, including those specified in Section 24412, and excluding those provided pursuant to Sections 24410.5, 24410.6, and 24410.7. Section 24410.5. 
(b) The net revenues to be distributed shall be allocated among those retired members, disabled members, and beneficiaries, as defined in subdivision (a) of Section 22107,  beneficiaries  whose allowances, after sequentially applying the annual improvement factor as defined in Sections 22140 and 22141, and the annual supplemental payment as specified defined  in Section 24412, have the lowest purchasing power percentage. The purchasing power calculation for each individual shall be based on the change in the All Urban California Consumer Price Index between June of the calendar year of retirement and June of the fiscal year preceding the fiscal year of distribution. In any year in which the purchasing power of the allowances of all retired members, disabled members, and beneficiaries, as defined in subdivision (a) of Section 22107,  beneficiaries  equals not less than 85 75  percent and additional funds remain from the allocation authorized by this section, those funds shall remain in the Supplemental Benefit Maintenance Account for allocation in future years.
(c) The allowance increase shall not be applicable to annuities payable from the accumulated annuity deposit contributions or the accumulated tax-sheltered annuity contributions.
(d) The increases benefits  provided by subdivision (b) are not cumulative, not part of the base allowance, and will be payable only to the extent that funds are available from the Supplemental Benefit Maintenance Account. The board shall inform each recipient of the contents of this subdivision.
(e) The adjustments authorized by this section are vested only up to the amount payable as a result of the annual appropriation made pursuant to Section 22954 and the adjustments made by the board pursuant to Section 24415.5. The adjustments authorized by this section  shall not be included in the base allowance for purposes of calculating the annual improvement defined by Sections 22140 and 22141.
(f) Notwithstanding subdivision (b), for purposes of restoring the purchasing power of benefits provided pursuant to Section 24410.5 for members and beneficiaries receiving benefits pursuant to subdivision (b), the purchasing power calculation shall be based on 85 75  percent of the change in the All Urban California Consumer Price Index between January 2000 2000,  and June of the fiscal year preceding the fiscal year of distribution, after the application of increases authorized by Section 24412 that are made to the allowances provided pursuant to Section 24410.5.  
(g) Notwithstanding subdivision (b), for purposes of restoring the purchasing power of benefits provided pursuant to Sections 24410.6 and 24410.7 for members and beneficiaries receiving benefits pursuant to subdivision (b), the purchasing power calculation shall be based on 85 percent of the change in the All Urban California Consumer Price Index between January 2001 and June of the fiscal year preceding the fiscal year of distribution, after the application of increases authorized by Section 24412 that are made to the allowances provided pursuant to Sections 24410.6 and 24410.7.

SEC. 36.5.

 Section 24415 of the Education Code is amended to read:

24415.
 (a) The proceeds of the Supplemental Benefit Maintenance Account shall be distributed annually in quarterly supplemental payments commencing on September 1, 1990, to retired members, disabled members, and beneficiaries, as defined in subdivision (a) of Section 22107. The amount available for distribution in any fiscal year shall not exceed the amount necessary to restore purchasing power up to 85 75  percent of the purchasing power of the base allowance,  initial monthly allowance  after the application of all allowance increases authorized by this part, including those specified in Section 24412, and excluding those provided pursuant to Sections 24410.5, 24410.6, and 24410.7. Section 24410.5. 
(b) The net revenues to be distributed shall be allocated among those retired members, disabled members, and beneficiaries, as defined in subdivision (a) of Section 22107, whose allowances, after sequentially applying the annual improvement factor as defined specified  in Sections 22140 and 22141, and the annual supplemental payment as specified defined  in Section 24412, have the lowest purchasing power percentage. The purchasing power calculation for each individual shall be based on the change in the All Urban California Consumer Price Index between June of the calendar year of retirement and June of the fiscal year preceding the fiscal year of distribution. In any year in which the purchasing power of the allowances of all retired members, disabled members, and beneficiaries, as defined in subdivision (a) of Section 22107, equals not less than 85 75  percent and additional funds remain from the allocation authorized by this section, those funds shall remain in the Supplemental Benefit Maintenance Account for allocation in future years.
(c) The allowance increase shall not be applicable to annuities payable from the accumulated annuity deposit contributions or the accumulated tax-sheltered annuity contributions.
(d) The increases provided by subdivision (b) are not cumulative, not part of the base allowance, and will be payable only to the extent that funds are available from the Supplemental Benefit Maintenance Account. The board shall inform each recipient of the contents of this subdivision.
(e) The adjustments authorized by this section are vested only up to the amount payable as a result of the annual appropriation made pursuant to Section 22954 and the adjustments made by the board pursuant to Section 24415.5. The adjustments authorized by this section  shall not be included in the base allowance for purposes of calculating the annual improvement defined by Sections 22140 and 22141.
(f) Notwithstanding subdivision (b), for purposes of restoring the purchasing power of benefits provided pursuant to Section 24410.5 for members and beneficiaries receiving benefits pursuant to subdivision (b), the purchasing power calculation shall be based on 85 75  percent of the change in the All Urban California Consumer Price Index between January 2000 2000,  and June of the fiscal year preceding the fiscal year of distribution, after the application of increases authorized by Section 24412 that are made to the allowances provided pursuant to Section 24410.5.
(g) Notwithstanding subdivision (b), for purposes of restoring the purchasing power of benefits provided pursuant to Sections 24410.6 and 24410.7 for members and beneficiaries receiving benefits pursuant to subdivision (b), the purchasing power calculation shall be based on 85 percent of the change in the All Urban California Consumer Price Index between January 2001 and June of the fiscal year preceding the fiscal year of distribution, after the application of increases authorized by Section 24412 that are made to the allowances provided pursuant to Sections 24410.6 and 24410.7.

SEC. 37.

 Section 24417 of the Education Code is amended to read:

24417.
 (a) The proceeds of an auxiliary Supplemental Benefit Maintenance Account shall be distributed annually in quarterly supplemental payments, commencing when funds in the Supplemental Benefit Maintenance Account are insufficient to support 85 75  percent, to retired members, disabled members, and beneficiaries, as defined in subdivision (a) of Section 22107.  beneficiaries.  The amount available for distribution in any fiscal year shall not exceed the amount necessary to restore purchasing power up to 85 75  percent of the purchasing power of the initial monthly allowance after the application of all allowance increases authorized by this part, including those specified in Sections 24412 and 24415, and excluding those provided pursuant to Sections 24410.5, 24410.6, and 24410.7. Section 24410.5. 
(b) The net revenues to be distributed shall be allocated among those retired members, disabled members, and beneficiaries, as defined in subdivision (a) of Section 22107,  beneficiaries  whose allowances, after sequentially applying the annual improvement factor as defined in Sections 22140 and 22141, and the annual supplemental payment as specified defined  in Sections 24412 and 24415, have the lowest purchasing power percentage. The purchasing power calculation for each individual shall be based on the change in the All Urban California Consumer Price Index between June of the calendar year of the  benefit effective date and June of the fiscal year preceding the fiscal year of distribution.
(c) The allowance increase shall not be applicable to annuities payable from the accumulated annuity deposit contributions or the accumulated tax-sheltered annuity contributions.
(d) The increases benefits  provided by subdivision (b) are not cumulative, nor part of the base allowance, and will be payable only to the extent that funds are available from the Supplemental Benefit Maintenance Account and the auxiliary Supplemental Benefit Maintenance Account. The board shall inform each recipient of the contents of this subdivision.
(e) The distributions authorized by this section are vested only up to the amount payable as a result of the annual appropriation made pursuant to Section 22954 and the adjustments made by the board pursuant to Section 24415.5. The distributions authorized by this section  shall not be included in the base allowance for purposes of calculating the annual improvement defined by Sections Section  22140 and 22141.
(f) Notwithstanding subdivision (b), for purposes of restoring the purchasing power of benefits provided pursuant to Section 24410.5 for members and beneficiaries receiving benefits pursuant to subdivision (b), the purchasing power calculation shall be based on 85 75  percent of the change in the All Urban California Consumer Price Index between January 2000 2000,  and June of the fiscal year preceding the fiscal year of distribution, after the application of increases authorized by Section 24412 that are made to the allowances provided pursuant to Section 24410.5.
(g) Notwithstanding subdivision (b), for purposes of restoring the purchasing power of benefits provided pursuant to Sections 24410.6 and 24410.7 for members and beneficiaries receiving benefits pursuant to subdivision (b), the purchasing power calculation shall be based on 85 percent of the change in the All Urban California Consumer Price Index between January 2001 and June of the fiscal year preceding the fiscal year of distribution, after the application of increases authorized by Section 24412 that are made to the allowances provided pursuant to Sections 24410.6 and 24410.7.

SEC. 37.5.

 Section 24417 of the Education Code is amended to read:

24417.
 (a) The proceeds of an auxiliary Supplemental Benefit Maintenance Account shall be distributed annually in quarterly supplemental payments, commencing when funds in the Supplemental Benefit Maintenance Account are insufficient to support 85 75  percent, to retired members, disabled members, and beneficiaries, as defined in subdivision (a) of Section 22107. The amount available for distribution in any fiscal year shall not exceed the amount necessary to restore purchasing power up to 85 75  percent of the purchasing power of the initial monthly allowance after the application of all allowance increases authorized by this part, including those specified in Sections 24412 and 24415, and excluding those provided pursuant to Sections 24410.5, 24410.6, and 24410.7. Section 24410.5. 
(b) The net revenues to be distributed shall be allocated among those retired members, disabled members, and beneficiaries, as defined in subdivision (a) of Section 22107, whose allowances, after sequentially applying the annual improvement factor as defined in Sections 22140 and 22141, and the annual supplemental payment as specified in Sections 24412 and 24415, have the lowest purchasing power percentage. The purchasing power calculation for each individual shall be based on the change in the All Urban California Consumer Price Index between June of the calendar year of the  benefit effective date and June of the fiscal year preceding the fiscal year of distribution.
(c) The allowance increase shall not be applicable to annuities payable from the accumulated annuity deposit contributions or the accumulated tax-sheltered annuity contributions.
(d) The increases provided by subdivision (b) are not cumulative, nor part of the base allowance, and will be payable only to the extent that funds are available from the Supplemental Benefit Maintenance Account and the auxiliary Supplemental Benefit Maintenance Account. The board shall inform each recipient of the contents of this subdivision.
(e) The distributions authorized by this section are vested only up to the amount payable as a result of the annual appropriation made pursuant to Section 22954 and the adjustments made by the board pursuant to Section 24415.5. The distributions authorized by this section  shall not be included in the base allowance for purposes of calculating the annual improvement defined by Sections Section  22140 and 22141.
(f) Notwithstanding subdivision (b), for purposes of restoring the purchasing power of benefits provided pursuant to Section 24410.5 for members and beneficiaries receiving benefits pursuant to subdivision (b), the purchasing power calculation shall be based on 85 75  percent of the change in the All Urban California Consumer Price Index between January 2000 2000,  and June of the fiscal year preceding the fiscal year of distribution, after the application of increases authorized by Section 24412 that are made to the allowances provided pursuant to Section 24410.5.  
(g) Notwithstanding subdivision (b), for purposes of restoring the purchasing power of benefits provided pursuant to Sections 24410.6 and 24410.7 for members and beneficiaries receiving benefits pursuant to subdivision (b), the purchasing power calculation shall be based on 85 percent of the change in the All Urban California Consumer Price Index between January 2001 and June of the fiscal year preceding the fiscal year of distribution, after the application of increases authorized by Section 24412 that are made to the allowances provided pursuant to Sections 24410.6 and 24410.7.

SEC. 38.

 Section 26104 of the Education Code is amended to read:

26104.
 “Administrative costs” means the costs of administering the Cash Balance Benefit Program for the plan year as determined by the board.

SEC. 39.

 Section 44922 of the Education Code is amended to read:

44922.
 Notwithstanding any other provision, the governing board of a school district or a county superintendent of schools may establish regulations which allow their certificated employees to reduce their workload from full-time to part-time duties.
The regulations shall include, but shall not be limited to, the following, if the employees wish to reduce their workload and maintain retirement benefits pursuant to Section 22713 22724  of this code or Section 20900 20815  of the Government Code:
(a) For employees subject to coverage under the Defined Benefit Program under the State Teachers’ Retirement Plan, the regulations shall include all requirements for participation in the reduced workload program pursuant to Section 22713.
(b) For employees subject to coverage under the Public Employees’ Retirement System:
(1) (a)  The employee shall have reached the age of 55 years of age  prior to reduction in workload.
(2) (b)  The employee shall have been employed full time in a position requiring certification for at least 10 years of which the immediately preceding five years were full-time employment.
(3) (c)  During the period immediately preceding a request for a reduction in workload, the employee shall have been employed full time in a position requiring certification for a total of at least five years without a break in service. For purposes of this subdivision, sabbaticals and other approved leaves of absence shall not constitute a break in service.
(4) (d)  The option of part-time employment shall be exercised at the request of the employee and can be revoked only with the mutual consent of the employer and the employee.
(e) The employee shall be paid a salary which is the pro rata share of the salary he or she would be earning had he or she not elected to exercise the option of part-time employment but shall retain all other rights and benefits for which he or she makes the payments that would be required if he or she remained in full-time employment.
The employee shall receive health benefits as provided in Section 53201 of the Government Code in the same manner as a full-time employee.
(5) (f)  The minimum part-time employment shall be the equivalent of one-half of the number of days of service required by the employee’s contract of employment during his or her final year of service in a full-time position.
(6) (g)  This option is limited in prekindergarten through grade 12 to certificated employees who do not hold positions with salaries above that of a school principal.
(7) (h)  The period of this part-time employment shall include a period of time, as specified in the regulations, which shall be up to and include five years. years for employees subject to Section 20815 of the Government Code or 10 years for employees subject to Section 22724 of this code. 
(8) (i)  The period of part-time employment of employees subject to Section 20815 of the Government Code  shall not extend beyond the end of the school year during which the employee reaches his or her 70th birthday. This subdivision shall not apply to any employee subject to Section 22724 of this code. 
(c) (1) The employee shall be paid a salary that is the pro rata share of the salary he or she would be earning had he or she not elected to exercise the option of part-time employment but shall retain all other rights and benefits for which he or she makes the payments that would be required if he or she remained in full-time employment.
(2) The employee shall receive health benefits as provided in Section 53201 of the Government Code in the same manner as a full-time employee.

SEC. 40.

 Section 47611 of the Education Code is amended to read:

47611.
 (a) If a charter school chooses to make the State Teacher’s Retirement Plan available, all employees of the charter school who perform creditable service shall be entitled to have that service covered under the plan’s Defined Benefit Program or Cash Balance Benefit Program, and all provisions of Part 13 (commencing with Section 22000) and Part 14 (commencing with Section 26000) shall apply in the same manner as the provisions apply to other public schools in the school district that granted the charter.
(b) (1) If a charter school offers its employees coverage by the State Teachers’ Retirement System or the Public Employees’ Retirement System, or both, the charter school shall inform all applicants for positions within that charter school of the retirement system options for employees of the charter school.
(2) The information shall specifically include whether the charter school makes available to employees coverage under the State Teachers’ Retirement System, the Public Employees’ Retirement System, or both systems, and that accepting employment in the charter school may exclude the applicant from further coverage in the applicant’s current retirement system, depending on the retirement options offered by the charter of the charter school.
SEC. 41.
 Any section of any act enacted by the Legislature during the 2000 calendar year that takes effect on or before January 1, 2001, and that amends, amends and renumbers, adds, repeals and adds, or repeals a section that is amended, amended and renumbered, repealed and added, or repealed by this act, shall prevail over this act, whether that act is enacted prior to, or subsequent to, the enactment of this act. The repeal, or repeal and addition, of any article, chapter, part, title, or division of any code by this act shall not become operative if any section of any other act that is enacted by the Legislature during the 2000 calendar year and takes effect on or before January 1, 2001, amends, amends and renumbers, adds, repeals and adds, or repeals any section contained in that article, chapter, part, title, or division.
SEC. 42.
 (a) Section 41 of this act shall not apply to with respect to Section 23300 of the Education Code, as added by this act.
(b) Section 28.5 of this bill incorporates provisions in Section 23300 of the Education Code proposed by both this bill and Assembly Bill 1509. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2001, and (2) each bill adds Section 23300 to the Education Code, in which case, Section 28 of this bill and Section 50 of Assembly Bill 1509 shall not become operative.
SEC. 43.
 (a) Section 41 of this act shall not apply to amendments made by this act to Section 24415 of the Education Code.
(b)Section 36.5 of this bill incorporates amendments to Section 24415 of the Education Code proposed by both this bill and AB 1509. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2001, (2) each bill amends Section 24415 of the Education Code, and (3) this bill is enacted after AB 1509, in which case Section 36 of this bill shall not become operative.
(c) Notwithstanding any other provision of this act, AB 429 and SB 1505, or either of them, (1) are enacted and become effective on or before January 1, 2001, and (2) amend Section 24415 of the Education Code, the prevailing amendments to that section made by either or both of those bills shall prevail over the amendments to that section made by this bill, whether those acts, or either of them, are enacted prior to, the enactment of this act.
SEC. 44.
 (a) Section 41 of this act shall not apply to amendments made by this act to Section 24417 of the Education Code.
(b) Section 37.5 of this bill incorporates amendments to Section 24415 of the Education Code proposed by both this bill and AB 1509. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2000, (2) each bill amends Section 24417 of the Education Code, and (3) this bill is enacted after AB 1509, in which case Section 37 of this bill shall not become operative.
(c) Notwithstanding any other provision of this act, if AB 429 and SB 1505, or either of them, (1) are enacted and become effective on or before January 1, 2001, and (2) amend Section 24417 of the Education Code, the prevailing amendments to that section made by either of them or both of those bills shall prevail over the amendments to that section made by this bill, whether those acts, or either of them, are enacted prior to, or subsequent to, the enactment of this act.