Today's Law As Amended

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SB-1074 State Teachers’ Retirement System.(1999-2000)



SECTION 1.

 Section 22000 of the Education Code is amended to read:

22000.
 This part may be known and cited as the E. Richard Barnes Act and together with Part 14 (commencing with Section 26000) shall be known as the Teachers’ Retirement Law.

SEC. 2.

 Section 22007 of the Education Code is amended to read:

22007.
 The obligations of any member, or the member’s beneficiaries, to this system and the Defined Benefit Program continue throughout membership, and thereafter until all of the obligations of this system and the Defined Benefit Program to or in respect to the member or the member’s beneficiaries have been discharged.

SEC. 3.

 Section 22008 of the Education Code is amended to read:

22008.
 For the purposes of payments into or out of the retirement fund for adjustments of errors or omissions with respect to the Defined Benefit Program or the Defined Benefit Supplement  Program, the period of limitation of actions shall be applied, except as provided in Sections 23302 and 24613, as follows:
(a) No action may be commenced by or against the board, the system, or the plan more than three years after all obligations to or on behalf of the member, former member, beneficiary,  or annuity  beneficiary have been discharged.
(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.
(e) The collection of overpayments under subdivisions (b), (c), and (d) shall be made pursuant to Section 24617.

SEC. 4.

 Section 22104.5 is added to the Education Code, to read:

22104.5.
 “Actuary” means a person professionally trained in the technical and mathematical aspects of insurance, pensions, and related fields who has been appointed by the board for the purpose of actuarial services required under this part.

SEC. 5.

 Section 22106.1 is added to the Education Code, to read:

22106.1.
 “Base days” means the number of days of creditable service required to earn one year of service credit.

SEC. 6.

 Section 22106.2 is added to the Education Code, to read:

22106.2.
 “Base hours” means the number of hours of creditable service required to earn one year of service credit.

SEC. 7.

 Section 22109.5 is added to the Education Code, to read:

22109.5.
 “Break in service,” for purposes of determining a member’s final compensation, means:
(a) With respect to service of a member employed as a full-time employee and service performed by a member employed as a part-time employee, any period of time covering a pay period during which a member is on an unpaid leave or absence or a pay period in which a member has not performed any creditable service.
(b) For a member who has been employed in a substitute position:
(1) And has a change in assignment during a school year to a full-time or part-time position, a break in service is determined on the same basis as for the full-time or part-time employment during the same school year.
(2) For less than 50 percent of their teaching career for which service is credited, a break in service is determined on the same basis as full-time employment.
(3) For more than 50 percent of their teaching career for which service is credited, a break in service is any period of time within a school year for which compensation is not paid and service is not credited.
(c) If a member commenced performing service at the beginning of a school term, July and August of the school year are not a break in service; however, if the member commenced performing service after the school term begins, the previous July and August are a break in service.
(d) Earnable salaries for a full pay period, but not beyond the effective date of retirement, shall be used in determining final compensation when the member performed service within that pay period.

SEC. 8.

 Section 22115.2 is added to the Education Code, to read:

22115.2.
 “Concurrent membership” means membership in the Defined Benefit Program by an individual who is credited with service that is not used as a basis for benefits under any other public retirement system and is also a member of the California Public Employees’ Retirement System, the Legislators’ Retirement System, the University of California Retirement System, county retirement systems established under Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3 of the Government Code, or the San Francisco City and County Employees’ Retirement System. A member with concurrent membership shall have the right to the following:
(a) Have final compensation determined pursuant to subdivision (c) of Section 22134.
(b) Redeposit accumulated retirement contributions pursuant to Section 23201.
(c) Apply for retirement pursuant to paragraph (2) of subdivision (a) of Section 24201.

SEC. 9.

 Section 22115.5 is added to the Education Code, to read:

22115.5.
 (a) “Concurrent retirement” entitles a member of the Defined Benefit Program to retire for service from the State Teachers’ Retirement System and from at least one of the retirement systems with which the member has concurrent membership, as defined in Section 22115.2, on the same date or on different dates provided that the member does not perform creditable service subject to coverage under the other system or the Defined Benefit Program between the two retirement dates.
(b) A retired member who is subsequently employed in a position subject to membership in a public retirement system, specified in Section 22115.2, shall not be eligible for concurrent retirement.

SEC. 10.

 Section 22119.2 of the Education Code is amended to read:

22119.2.
 (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). 
(4) Member contributions that are  picked up by an employer pursuant to Section 22903 or 22904.
(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) Money paid by an employer in addition to salary paid under paragraph (1) or (2) if paid to all employees in a class in the same dollar amount, the same percentage of salary, or the same percentage of the amount being distributed.
(7) Money paid in accordance with a salary schedule by an employer to an employee for achieving certification from a national board awarding certifications, in which eligibility for this certification is based, in part, on years of training or years of experience in teaching service, if the compensation is paid by the employer to all employees who achieved this certification.
(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) Money paid for overtime or summer school service, or money paid for the aggregate service performed as a member of the Defined Benefit Program in excess of one year of service credit for any one school year.
(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).
(5) Fringe benefits provided by an employer.
(6) Job-related expenses paid or reimbursed by an employer.
(4) (7)  Remuneration that is paid in exchange for the relinquishment of  Money paid for  unused accumulated leave.
(8) Severance pay or compensatory damages or money paid to a member in excess of salary as a compromise settlement.
(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.
(6) Fringe benefits provided by an employer.
(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.
(e) For purposes of this section, remuneration shall be considered paid if distributed to any person in the same class of employees who meets the qualifications or requirements specified in a publicly available written contractual agreement, including, but not limited to, a collective bargaining agreement or an employment agreement, as a condition of receiving the remuneration.
(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.

SEC. 11.

 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. 12.

 Section 22134 of the Education Code is amended to read:

22134.
 (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. 
(c) The following shall be considered periods of service for the purpose of determining final compensation:
(1) The full pay period if the member earns creditable compensation within that pay period, but not beyond the benefit effective date except as provided in paragraph (3).
(2) The months of the school year preceding the school term if the member earns creditable compensation during the first pay period of that school term.
(3) The months of the school year following the school term if the member earns creditable compensation during the last pay period of that school term.
(4) Any period that is excluded from the school term if a member earns creditable compensation during the pay periods immediately preceding and immediately following the excluded period.
(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) The member was in state service or in the employment of a local school district or a county superintendent of schools.
(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.

SEC. 13.

 Section 22135 of the Education Code is amended to read:

22135.
 (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. 
(b) Section 22134, except subdivision (a) of that section, shall apply to classroom teachers who retire after June 30, 1990, and any statutory reference to Section 22134 or “final compensation” with respect to a classroom teacher who retires, becomes disabled, or dies, after June 30, 1990, shall be deemed to be a reference to this section.
(c) As used in this section, “classroom teacher” means any of the following:
(1) All teachers and substitute teachers in positions requiring certification qualifications who spend, during the last 10 years of their employment with the same employer which immediately precedes their retirement, 60 percent or more of their contract time each year providing direct instruction. For the purpose of determining continuity of employment within the meaning of this subdivision, an authorized leave of absence for sabbatical or illness or other collectively bargained or employer-approved leaves shall not constitute a break in service.
(2) Other certificated personnel who spend, during the last 10 years of their employment with the same employer that immediately precedes their retirement, 60 percent or more of their contract time each year providing direct services to pupils, including, but not limited to, librarians, counselors, nurses, speech therapists, resource specialists, audiologists, audiometrists, hygienists, optometrists, psychologists, driver safety instructors, and personnel on special assignment to perform school attendance and adjustment services.
(d) As used in this section, “classroom teacher” does not include any of the following:
(1) Certificated employees whose job descriptions require an administrative credential.
(2) Certificated employees whose job descriptions include responsibility for supervision of certificated staff.
(3) Certificated employees who serve as advisers, coordinators, consultants, or developers or planners of curricula, instructional materials, or programs, who spend, during the last 10 years of their employment with the same employer that immediately precedes their retirement, less than 60 percent of their contract time in direct instruction.
(4) Certificated employees whose job descriptions require provision of direct instruction or services, but who are functioning in nonteaching assignments.
(5) Classified employees.
(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).
(f) The written agreement shall include a mechanism to pay for all increases in allowances provided for by this section through employer contributions or employee contributions or both, which shall be collected and retained by the employer in a trust fund to be used solely and exclusively to pay the system for all increases in allowances provided by this section and related administrative costs; and a mechanism for disposition of the employee’s contributions if employment is terminated before retirement, and for the establishment of a trust fund board. The trust fund board shall administer the trust fund and shall be composed of an equal number of members representing classroom teachers chosen by the bargaining agent and the employer. If the employer agrees to pay the total cost of increases in allowances, the establishment of a trust fund and a trust fund board shall be optional to the employer. The employer, within 30 days of receiving an invoice from the system, shall reimburse the retirement fund the amount determined by the Teachers’ Retirement Board to be the actuarial equivalent of the difference between the allowance the member or beneficiary receives pursuant to this section and the allowance the member or beneficiary would have received if the member’s final compensation had been computed under Section 22134 and the proportionate share of the cost to the plan’s Defined Benefit Program, as determined by the Teachers’ Retirement Board, of administering this section. The payment shall include the cost of all increases in allowances provided for by this section for all years of service credited to the member as of the benefit effective date. Interest shall be charged at the regular interest rate for any payment not received within 30 days of receipt of the invoice. Payments not received within 30 days after receipt of the invoice may be collected pursuant to Section 23007.
(g) Upon the execution of the agreement, the employer shall notify all certificated employees of the agreement and any certificated employee of the employer, who is a member of the Public Employees’ Retirement System pursuant to Section 22508, that he or she may, within 60 days following the date of notification, elect to terminate his or her membership in the Public Employees’ Retirement System and become a member of this plan’s Defined Benefit Program. However, only service credited under the Defined Benefit Program subsequent to the date of that election shall be subject to this section.
(h) An employer that agrees to become subject to this section, shall, on a form and within the timeframes prescribed by the system, certify the applicability of this section to a member pursuant to the criteria set forth in this section when a retirement, disability, or family allowance becomes payable.
(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.

SEC. 14.

 Section 22136 of the Education Code is amended to read:

22136.
 (a) “Final compensation” with respect to a member whose salary while an active member was reduced because of a reduction in school funds means the highest average annual compensation earnable by the member during any three years while employed to perform creditable service subject to coverage by the Defined Benefit Program if the member elects to be subject to this section.
(b) For the purposes of this section, a year shall be considered to be a period of 12 consecutive months.

SEC. 15.

 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).  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. 
(e) This section shall become operative on July 1, 2013.

SEC. 16.

 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  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).

SEC. 17.

 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. 18.

 Section 22156.1 is added to the Education Code, to read:

22156.1.
 “Present value,” for purposes of Section 22723, 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. 19.

 Section 22156.2 is added to the Education Code, to read:

22156.2.
 “Present value factor,” for purposes of Section 22156.1, means an overall average rate based upon the demographics of members who recently retired under the Defined Benefit Program and regular interest that shall determine present value on the effective date of retirement.

SEC. 20.

 Section 22156.5 is added to the Education Code, to read:

22156.5.
 “Prior year’s compensation earnable” means the compensation earnable for the most recent school year in which the member earned service credit that precedes the last school year in which the member earned service credit.

SEC. 21.

 Section 22161 of the Education Code is amended to read:

22161.
 “Public school” means any day or evening elementary school, any day or evening secondary school, community college, technical school, kindergarten school, and prekindergarten school established by the Legislature, or by municipal or district authority.

SEC. 22.

 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,  24004  or 24015.
(d) A service retirement allowance or disability retirement allowance pursuant to Section 23404.

SEC. 23.

 Section 22170.5 is added to the Education Code, to read:

22170.5.
 (a) “Sick leave days” means the number of days of accumulated and unused leave of absence for illness or injury.
(b) “Basic sick leave day” means the equivalent of one day’s paid leave of absence per pay period due to illness or injury.
(c) “Excess sick leave days” means the day or total number of days, granted by an employer in a pay period as defined in Section 22154 after June 30, 1986, for paid leave of absence due to illness or injury, in excess of a basic sick leave day.

SEC. 24.

 Section 22306 of the Education Code is amended to read:

22306.
 (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:
(1) To the member, participant, or beneficiary to whom the information relates.
(2) To the authorized representative of the member, participant, or beneficiary.
(3) To the governing board of the member’s or participant’s current or former employer.
(4) To any department, agency, or political subdivision of this state.
(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. 
(6) Pursuant to subpoena.
(7) To an agent or a physician authorized by the board in the performance of duties pursuant to Section 24003, 24012, 24103, or 24111.
(8) To a physician or psychologist authorized by the member to receive medical information, if the system determines that the information may be detrimental to the member, as provided under Section 1798.40 of the Civil Code.
(b) Information filed with the system in a beneficiary designation form may be released after the death of the member or participant to those persons who may provide information necessary for the distribution of benefits.
(c) The information is not open to inspection by anyone except the board and its officers and employees of the system, and any person authorized by the Legislature to make inspections.

SEC. 25.

 Section 22327 of the Education Code is amended to read:

22327.
 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.

SEC. 26.

 Section 22360 of the Education Code is amended to read:

22360.
 (a) Notwithstanding any other provision of law, the board may pursuant to Section 22203 and in conformance with its fiduciary duty set forth in Section 22250, enter into correspondent agreements with private lending institutions in this state to utilize the retirement fund to invest in residential mortgages, including assisting borrowers, through financing, to obtain homes in this state.
(b) The program shall, among other things, provide:
(1) That home loans be made available to borrowers for the purchase of single-family dwellings, two-family dwellings, three-family dwellings, four-family dwellings, single-family cooperative apartments, and single-family condominiums.
(2) That the recipients of the loans occupy the homes as their principal residences in accordance with policies established by the board.
(3) That the home loans shall be available only for the purchase or refinance of homes in this state.
(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.
(5) That there may be prepayment penalties assessed on the loans in accordance with policies established by the board.
(6) That the criteria and terms for its loans shall be consistent with the financial integrity of the program and the sound investment of the retirement fund.
(7) Any other terms and conditions as the board shall deem appropriate.
(c) It is the intent of the Legislature that the provisions of this section be used to establish an investment program for residential mortgages, including assisting borrowers in purchasing homes in this state, or refinancing a mortgage loan. The Legislature intends that home loans made pursuant to this section shall be secured primarily by the property purchased or refinanced and shall not exceed the appraised value of that property.
(d) Appropriate administrative costs of implementing this section and Section 22360.5 shall be paid by the participating borrowers. Those costs may be included in the loan amount.
(e) Appropriate interest rates shall be periodically reviewed and adjusted to provide loans to borrowers consistent with the financial integrity of the home loan program and the sound and prudent investment of the retirement fund. Under no circumstances, however, shall the interest rates offered to borrowers be below current market rate.
(f) The board shall administer this section and Section 22360.5 under other terms and conditions it deems appropriate and in keeping with the investment standard. The board may adopt policies as necessary for its administration of this section and Section 22360.5 and to assure compliance with applicable state and federal laws.
(g) This section and Section 22360.5 shall be known as, and may be cited as, the Dave Elder State Teachers’ Retirement System Home Loan Program Act.

SEC. 27.

 Section 22360.5 is added to the Education Code, to read:

22360.5.
 (a) The board may include in any investment program established pursuant to Section 22360 a procedure whereby a member may obtain 100 percent financing for the purchase for a single-family dwelling unit in accordance with the following criteria:
(1) The member shall obtain one loan secured by the purchased home, pursuant to Section 22360, and a second personal loan secured by a portion of the accumulated retirement contributions in the member’s individual account. The personal loan shall only be used for the purchase of the member’s principal residence and not for a loan to refinance the member’s existing mortgage.
(2) The loan secured by the purchased home shall be consistent with the requirements imposed by Section 22360.
(3) In no event may the personal loan secured by the accumulated retirement contributions in the member’s individual account exceed the lesser of 50 percent of the current value amount of the accumulated retirement contributions or fifty thousand dollars ($50,000).
(4) If two members are married, the personal loan secured by the sum total of accumulated retirement contributions in both members’ accounts shall not exceed 5 percent of the loan.
(5) The pledge of security under this section shall remain in effect until the personal loan is paid in full.
(b) The pledge of security under this section shall take binding effect. In the event of a default on the personal loan secured by the member’s retirement contributions as authorized by this section, the board shall deduct an amount from the member’s accumulated retirement contributions on deposit and adjust the member’s accumulated retirement contributions as necessary to recover any outstanding loan balance prior to making any disbursement of a refund or a lump-sum distribution.
(c) In the event of a default on the personal loan by a member, the board shall deduct the monthly principal plus appropriate interest from the member’s benefit, when the member begins receiving a benefit, until the loan is paid in full.
(d) In the event of a default on the personal loan by a member receiving a benefit, the board shall deduct the monthly principal and interest from the member’s benefit until the personal loan is paid in full.
(e) The secured personal loan permitted under this section shall be made available only to members who meet eligibility criteria as determined by the board.
(f) In the event of a refund or lump-sum distribution of the accumulated retirement contributions, the member’s account shall be adjusted as necessary to recover any outstanding loan balance.
(g) If the member is married at the time the home is purchased with a personal loan secured by the member’s accumulated retirement contributions as authorized by this section, then the member’s spouse shall agree in writing to the pledge of security, as to his or her community interest in the amount pledged, regardless of whether title to the home is held in joint tenancy.
(h) For purposes of the section only, “member” means any person who is entitled to receive an allowance funded by the system pursuant to this part or Part 14, notwithstanding any vesting requirement and without regard to present eligibility to retire, and who is not retired or disabled.

SEC. 28.

 Section 22400 of the Education Code is amended to read:

22400.
 (a) There is in the State Treasury a special trust fund to be known as the Teachers’ Retirement Fund. There shall be deposited in that fund the assets of the plan and its predecessors, consisting of employee contributions, employer contributions, state contributions, appropriations made to it by the Legislature, income on investments, other interest income, income from fees and penalties, donations, legacies, bequests made to it and accepted by the board, and any other amounts provided by this part and Part 14. General Fund transfers pursuant to Section 22954 shall be placed in a segregated account known as the Supplemental Benefit Maintenance Account within the retirement fund, which is continuously appropriated without regard to fiscal years, notwithstanding Section 13340 of the Government Code, for expenditure for the purposes of Section 24415.
(b) Disbursement of money from the retirement fund of whatever nature shall be made upon claims duly audited in the manner prescribed for the disbursement of other public funds except that notwithstanding the foregoing disbursements may be made to return funds deposited in the fund in error.

SEC. 29.

 Section 22455.5 of the Education Code is amended to read:

22455.5.
 (a) The Legislature finds and declares that the federal Omnibus Budget Reconciliation Act of 1990 (P.L. 101-508) requires all public employers to provide their employees with either social security coverage or membership in a qualified retirement plan.
(b) Employers shall make available criteria for membership, including optional membership, in a timely manner to all persons employed to perform creditable service subject to coverage by the Defined Benefit Program, and shall inform part-time and substitute employees, within 30 days of the date of hire, or by March 1, 1995, whichever is later, that they may elect membership in the plan’s Defined Benefit Program at any time while employed. Written acknowledgment by the employee shall be maintained in employer files on a form provided by this system.
(c) Employers shall be liable to the plan for employee and employer contributions and interest with respect to the Defined Benefit Program from the date of hire, or March 1, 1995, whichever is later, in addition to system administrative and audit costs, if an audit or a member’s complaint reveals noncompliance. However, no employer shall be liable for employee contributions for service performed prior to January 1, 1995.

SEC. 30.

 Section 22457 of the Education Code is amended to read:

22457.
 (a) Each county superintendent shall give immediate notice in writing to the board of the employment, death, resignation, or discharge of any person employed by the county or by a school district or community college district in the county to perform creditable service subject to coverage by the Defined Benefit Program.
(b) Every other employing agency shall give similar notice with respect to each person it employs to perform creditable service subject to coverage by the Defined Benefit Program.

SEC. 31.

 Section 22458 of the Education Code is amended to read:

22458.
 Each employer shall provide the system with information regarding the compensation to be paid to employees subject to the Defined Benefit Program in that school year. The information shall be submitted annually as determined by the board and may include, but shall not be limited to, employment contracts, salary schedules, and local board minutes.

SEC. 32.

 Section 22459 of the Education Code is amended to read:

22459.
 (a) The county superintendent or other employing agency shall withhold the salary of any member who fails to file information required by the board in the administration of the Defined Benefit Program, or to pay amounts due from the members to the fund with respect to the Defined Benefit Program.
(b) The salary shall be withheld by the county superintendent or employing agency upon his or her own knowledge, if any, of the failure or upon notice from the board of the failure of the member to file or pay.
(c) The salary shall be withheld and not released until notice is given by the board to the county superintendent or employing agency, or until the county superintendent or agency knows otherwise, that the information has been filed or the payment has been made.

SEC. 33.

 Section 22502 of the Education Code is amended to read:

22502.
 (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).
(c) This section shall be deemed to have become operative on July 1, 1996.

SEC. 34.

 Section 22503 of the Education Code is amended to read:

22503.
 (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.

SEC. 35.

 Section 22504 of the Education Code is amended to read:

22504.
 (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.
(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)  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. 

SEC. 36.

 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. 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. 37.

 Section 22508.5 of the Education Code is amended to read:

22508.5.
 (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) A member of the Public Employees’ Retirement System who is employed by the Board of Governors of the California Community Colleges who subsequently is employed by a community college district to perform creditable service subject to coverage under the Defined Benefit Program, may elect to have that service subject to coverage by the Public Employees’ Retirement System and excluded from coverage under the Defined Benefit Program pursuant to Section 20309 of the Government Code.
(c) This section shall apply to changes in employment effective on or after January 1, 1998.

SEC. 38.

 Section 22514 of the Education Code is amended to read:

22514.
 Members who have not achieved plan vesting shall become eligible for benefits under the Defined Benefit Program when total service under the Defined Benefit Program and the Public Employees’ Retirement System equals the minimum required under Sections 23801 and 23804. These members shall retain vested rights to survivor and disability benefits under this plan until they qualify for the similar benefits under the Public Employees’ Retirement System.

SEC. 39.

 Section 22516 of the Education Code is amended to read:

22516.
 (a) Nothing in this chapter shall be construed or applied to exclude from membership in the Defined Benefit Program any person employed to perform creditable service at a level that requires mandatory membership in the program for which he or she has the right to elect membership in the program or another retirement system and who elects membership in the other retirement system, or who is employed to perform creditable service at a level that does not require mandatory membership in the Defined Benefit 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. 

SEC. 40.

 Section 22601.5 of the Education Code is amended to read:

22601.5.
 (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.
(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).
(c) This section shall be deemed to have become operative on July 1, 1996.

SEC. 41.

 Section 22602 of the Education Code is amended to read:

22602.
 (a) Any person employed to perform creditable service as a substitute teacher who is not already a member in the Defined Benefit Program and who performs less than 100 complete days of creditable service in one school district, community college district, or county superintendent’s office during the school year is excluded from mandatory membership in the Defined Benefit Program.
(b) This section shall not apply to persons who perform service for employers who provide benefits for their employees under Part 14 (commencing with Section 26000).
(c) The amendments to this section enacted during the 1995–96 Regular Session shall be deemed to have become operative on July 1, 1996.

SEC. 42.

 Section 22604 of the Education Code is amended to read:

22604.
 (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.
(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). The amendments to this section enacted during the 1995–96 Regular Session shall be deemed to have become operative on July 1, 1996. 

SEC. 43.

 Section 22664 of the Education Code is amended to read:

22664.
 The nonmember spouse who is awarded a separate account shall have the right to a service retirement allowance and, if applicable, a retirement benefit  under this part.
(a) The nonmember spouse shall be eligible to retire for service under this part if the following conditions are satisfied:
(1) The member had at least five years of credited service during the period of marriage, at least one year of which had been performed subsequent to the most recent refund to the member of accumulated retirement contributions. The credited service may include service credited to the account of the member as of the date of the dissolution or legal separation, previously refunded service, out-of-state service, and permissive service credit that the member is eligible to purchase at the time of the dissolution or legal separation.
(2) The nonmember spouse has at least two and one-half years of credited service in his or her separate account.
(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:
(1) The requirements of subdivision (a) are satisfied.
(2) The nonmember spouse has filed an application for service retirement on a properly executed  form provided by the system, that is executed no earlier than six months before the effective date of the retirement allowance.
(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.
(c) (1) Upon service retirement at normal retirement age under this part, the nonmember spouse shall receive a retirement allowance that shall consist of an annual allowance payable in monthly installments equal to 2 percent of final compensation for each year of credited service.
(2) If the nonmember spouse’s retirement is effective at less than normal retirement age and between early retirement age under this part and normal retirement age, the retirement allowance shall be reduced by one-half of 1 percent for each full month, or fraction of a month, that will elapse until the nonmember spouse would have reached normal retirement age.
(3) If the nonmember spouse’s service retirement is effective at an age greater than normal retirement age and is effective on or after January 1, 1999, the percentage of final compensation for each year of credited service shall be determined pursuant to the following table:
Age at Retirement
Percentage
Age at Retirement
Percentage
60¼  60  1/4 ........................
 2.033
60½  60  1/2 ........................
 2.067
60¾  60  3/4 ........................
 2.10
 61   ........................
 2.133
61¼  61  1/4 ........................
 2.167
61½  61  1/2 ........................
 2.20
61¾  61  3/4 ........................
 2.233
 62   ........................
 2.267
62¼  62  1/4 ........................
 2.30
62½  62  1/2 ........................
 2.333
62¾  62  3/4 ........................
 2.367
 63 and over   ........................
 2.40
(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. 
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) A retirement benefit shall be a lump-sum payment, or an annuity payable in monthly installments, or a combination of both a lump-sum payment and an annuity, as elected by the nonmember spouse on the application for a retirement benefit. A retirement benefit paid as an annuity under this chapter shall be subject to Sections 22660, 25011, and 25011.1.
(2) Upon distribution of the entire retirement benefit in a lump-sum payment, no other benefit shall be payable to the nonmember spouse or the nonmember spouse’s beneficiary under the Defined Benefit Supplement Program.
(e)  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. If the member  who is or was receiving a disability allowance returns to employment to perform creditable service subject to coverage under the Defined Benefit Program or has his or her allowance terminated under Section 24015, the nonmember spouse may not be paid a retirement allowance until at least six months after termination of the disability allowance and the return of the member to employment to perform creditable service subject to coverage under the Defined Benefit Program, or the termination of the disability allowance and the employment or self-employment of the member in any capacity, notwithstanding Section 22132. If at the end of the six-month period, the member has not had a recurrence of the original disability or has not had his or her earnings fall below the amounts described in Section 24015, the nonmember spouse may be paid a retirement allowance if all other eligibility requirements are met.
(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).
(2) The share of the member shall be the total disability allowance reduced by the share of the nonmember spouse. The share of the member shall be considered the disability allowance of the member for purposes of Section 24213.
(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.

SEC. 44.

 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 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.
(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. 45.

 Section 22714 of the Education Code is amended to read:

22714.
 (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:
(1) The member is credited with five or more years of service credit and retires for service under the provisions of  Chapter 27 (commencing with Section 24201) during a period of not more than 120 days or less than 60 days, commencing no sooner than the effective date of the formal action of the employer that shall specify the period.
(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.
(B) Regular interest shall be charged on the unpaid balance if the employer makes the transfer to the retirement fund in installments.
(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. 
(3) The school district shall reimburse the county superintendent for all costs to the county superintendent that result from the certification.
(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. 
(3) The Superintendent of Public Instruction may request reimbursement from the county office of education for all administrative costs that result from the certification.
(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. 
(3) The chancellor may request reimbursement from the community college district  for all administrative costs that result from the certification.
(e) The opportunity to be granted service credit pursuant to this section shall be available to all members employed by the school district, community college district, or county office of education who meet the conditions set forth in this section.
(f) The amount of service credit shall be two years.
(g) Any member of the Defined Benefit Program who retires under this part for service under the provisions of  Chapter 27 (commencing with Section 24201) with service credit granted under this section and who subsequently reinstates shall forfeit the service credit granted under this section.
(h) Any member of the Defined Benefit Program who retires under this part for service under Chapter 27 (commencing with Section 24201) with service credit granted under this section and who takes any job with the school district, community college district, or county office of education that granted the member the service credit less than five years after receiving the credit shall forfeit the ongoing benefit he or she receives from the additional service credit granted under this section.
(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.

SEC. 46.

 Section 22717 of the Education Code is amended to read:

22717.
 (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.
(c) For members who are last employed with the state in a position in which there are no contracted base service days, the amount of service credit to be granted shall be 0.004 years of service for each day of unused sick leave certified to the board by the employer. The certification shall report only those days of unused sick leave that were accrued by the member during the normal course of his or her employment subject to coverage by the Defined Benefit Program.
(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.

SEC. 47.

 Section 22718 of the Education Code is amended to read:

22718.
 (a) The Teachers’ Retirement Board shall bill school employers for service credit granted for unused excess sick leave under this part, subject to the following provisions:
(1) (A) In addition to the certification of sick leave days, the employer shall also certify the number of unused excess sick leave days.
(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. 
(2) The billing shall be authorized only if the employer grants more than one day of sick leave per pay period of at least four weeks to members of the Defined Benefit Program.
(3) The employer shall be billed only for the present value of the unused excess sick leave days and any subsequent adjustments to the billing shall be billed or refunded, as appropriate, to the employer.
(4) (A) The employer shall remit the amount billed to the system with the certification required by Section 22717 within 30 days after the effective date of the member’s retirement or within 30 days after the date the system has notified the employer that a certification must be made, whichever is later.
(B) If payment is not received within 30 days, the present value shall be recalculated to include regular interest from the due date to the date full payment is received.
(C) If the system has billed the employer for an additional amount, the employer shall remit the additional amount within 30 days after the date of the billing. If payment is not received for the additional amount within 30 days, the present value shall be recalculated to include regular interest from the due date to the date full payment is received.
(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.

SEC. 48.

 Section 22724 is added to the Education Code, to read:

22724.
 (a) To determine the number of excess sick leave days to which a member is entitled when he or she retires, the employer shall deduct the days of sick leave used by the member from the member’s accumulated and unused sick leave balance according to the following method:
(1) Sick leave usage shall first be deducted from the accumulated and unused sick leave balance existing on July 1, 1986.
(2) Sick leave usage shall next be deducted from basic sick leave days granted to the member by an employer after June 30, 1986.
(3) Sick leave usage shall then be deducted from any excess sick leave days granted to the member by an employer after June 30, 1986.
(b) Upon request from the board, the employer shall submit sick leave records of past years for audit purposes.

SEC. 49.

 Section 22801 of the Education Code is amended to read:

22801.
 (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) Regular interest shall be charged on all contributions from the end of the school year on which the contributions were based to the date of payment.
(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.
(g) If the payment described in subdivision (a) is not received at the system’s headquarters office within 120 days of the due date, the election pursuant to this section shall be canceled. The member shall receive credit for additional service based on the payments that were made or the member may request a return of his or her payments.
(h) If the election to purchase additional service credit is canceled as described in subdivision (g), the member may, prior to the effective date of his or her retirement, elect to purchase additional service credit pursuant to this section.
(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.

SEC. 50.

 Section 22803 of the Education Code is amended to read:

22803.
 (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. 
(2) Service performed in a certificated teaching position in a child care center operated by a county superintendent of schools or a school district in this state.
(3) Service performed in a teaching position in the California School for the Deaf or the California School for the Blind, or in special classes maintained by the public schools of this state for the instruction of the deaf, the hard of hearing, the blind, or the semisighted.
(4) Service performed in a certificated teaching position in a federally supported and administered Indian school in this state.
(5) Time served, not to exceed two years, in a certificated teaching position in a job corps center administered by the United States government in this state if the member was employed to perform creditable service subject to coverage under the Defined Benefit Program within one year prior to entering the job corps and returned to employment to perform creditable service subject to coverage under the Defined Benefit Program within six months following the date of termination of service in the job corps.
(6) Time served, not to exceed two years, in a teaching position as a member of the Peace Corps if the member was employed to perform creditable service subject to coverage under the Defined Benefit Program within one year prior to entering the Peace Corps and returned to employment to perform creditable service subject to coverage under the Defined Benefit Program within six months following the date of termination of service in the Peace Corps.
(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.

SEC. 51.

 Section 22805 of the Education Code is amended to read:

22805.
 (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:
(1) The time served was during war with any foreign power or during other national emergency, or in time of peace if the member was drafted for that service by the United States government.
(2) The member was employed to perform creditable service subject to coverage under the Defined Benefit Program within one year prior to entering that service. Time included under this section shall be considered as served in the state in which the member was last employed before entering that service.
(b) Time during which the member was absent without compensation for other cause, on leave leave,  or otherwise, shall not be included.

SEC. 52.

 Section 22820 of the Education Code is amended to read:

22820.
 (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:
(1) Paying an amount equal to the amount refunded from the other public retirement system and receiving service credit under the Defined Benefit Program pursuant to subdivision (a) of Section 22823.
(2) Paying the contributions required under the Defined Benefit Program pursuant to subdivision (a) of Section 22823 for the service credited in the other public retirement system.
(3) Paying an amount equal to the amount refunded from the other public retirement system and an additional amount in accordance with subdivision (a) of Section 22823 for the service credited in the other public retirement system.
(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.

SEC. 53.

 Section 22823 of the Education Code is amended to read:

22823.
 (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. 
(b) (1) Any payment that a member may make to the system to obtain credit for out-of-state service pursuant to this chapter shall be paid in full prior to the effective date of a family, survivor, disability, or retirement allowance.
(2) If the system is unable to inform the member or beneficiary of the amount required to purchase out-of-state service prior to the effective date of the applicable allowance, the member or beneficiary 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.
(c) Contributions for out-of-state service credit shall be made in a lump sum, or in not more than 120 monthly installments. No installment, except the final installment, shall be less than twenty-five dollars ($25).
(d) Regular interest shall be charged on the monthly unpaid balance if the member makes installment payments.

SEC. 54.

 Section 22826 of the Education Code is amended to read:

22826.
 (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. 
(1) Payment that a member may make to the system to obtain credit for nonqualified service shall be paid in full prior to the effective date of a family, survivor, disability, or retirement allowance.
(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. 
(c) Contributions for nonqualified service credit shall be made in a lump sum or in not more than 120 monthly installments. No installment, except the final installment, shall be less than twenty-five dollars ($25).
(d) Regular interest shall be charged on the monthly unpaid balance if the member makes installment payments.

SEC. 55.

 Section 22955 of the Education Code is amended to read:

22955.
 (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. 
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.
(c) For the purposes of this section, the term “normal cost deficit” means the difference between the normal cost rate as determined in the actuarial valuation required by Section 22311 and the total of the member contribution rate required under Section 22901 and the employer contribution rate required under Section 22950, and shall exclude (1) the portion for unused sick leave service credit granted pursuant to Section 22717, and (2) the cost of benefit increases that occur after July 1, 1990. The contribution rates prescribed in Section 22901 and Section 22950 on July 1, 1990, shall be utilized to make the calculations. The normal cost deficit shall then be multiplied by the total of the creditable compensation upon which member contributions under this part are based to determine the dollar amount of the normal cost deficit for the year.
(d) Pursuant to Section 22001 and case law, members are entitled to a financially sound retirement system. It is the intent of the Legislature that this section shall provide the retirement fund stable and full funding over the long term.
(e) This section continues in effect but in a somewhat different form, fully performs, and does not in any way unreasonably impair, the contractual obligations determined by the court in California Teachers’ Association v. Cory, 155 Cal.App.3d 494.
(f) Subdivision (b) shall not be construed to be applicable to any unfunded liability resulting from any benefit increase or change in contribution rate under this part that occurs after July 1, 1990.
(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.

SEC. 56.

 Section 23003 of the Education Code is amended to read:

23003.
 (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.

SEC. 57.

 Section 23004 of the Education Code is amended to read:

23004.
 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. 

SEC. 58.

 Section 23006 of the Education Code is amended to read:

23006.
 (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. 

SEC. 59.

 Section 23201 of the Education Code is amended to read:

23201.
 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.

SEC. 60.

 Section 23702 of the Education Code is amended to read:

23702.
 (a) All members in the Defined Benefit Program on October 15, 1992, who are not receiving a disability allowance or a retirement allowance with an effective date prior to October 16, 1992, shall be eligible to make an irrevocable election, pursuant to this chapter, to retain coverage under either the disability allowance and family allowance programs or to have coverage under the disability retirement and survivor benefits programs.
(b) The member’s eligibility to participate in the election shall be based on the member’s status in the Defined Benefit Program on October 15, 1992, only, and not on prior or subsequent events.

SEC. 61.

 Section 23805.5 is added to the Education Code, to read:

23805.5.
 (a) A parent claiming a benefit under Section 23805 is dependent if all of the following apply:
(1) The parent was receiving one-half or more of his or her support from the member for the tax year preceding the member’s death.
(2) The parent was declared as a dependent on the income tax return of the member for at least one of the two tax years preceding the member’s death.
(3) No one else has assumed at least one-half of the parent’s support in the tax year of the member’s death.
(4) The parent has net assets of not more than twenty-five thousand dollars ($25,000), excluding his or her personal residence and personal property therein.
(b) A person claiming a benefit under Section 23805 or his or her guardian shall furnish the board a state or federal income tax return and any other evidence regarding his or her financial status as the board may require.

SEC. 62.

 Section 23851 of the Education Code is amended to read:

23851.
 (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:
(1) While in employment for which creditable compensation is paid.
(2) Within four months after termination of creditable service or termination of employment, whichever occurs first.
(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. 
(4) While on a leave of absence to perform qualified military service, if the death occurred on or after January 1, 2007.
(b) A death payment pursuant to this section shall not be payable for the death of a member that occurs within one year commencing with the effective date of termination of the service retirement allowance pursuant to Section 24208 or during the six calendar months commencing with the effective date of termination of the disability retirement allowance pursuant to Section 24117.
(c) The board may adjust the death payment amount following each actuarial valuation based on changes in the All Urban California Consumer Price Index and adopt as a plan amendment with respect to the Defined Benefit Program any adjusted amount.
(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. 

SEC. 63.

 Section 24101.5 of the Education Code is amended to read:

24101.5.
 A member shall not be eligible for disability retirement under the Defined Benefit Program while on a leave of absence to serve as a full-time, elected officer of an employee organization, even if the member receives service credit under Section 22711.

SEC. 64.

 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. 65.

 Section 24203.5 of the Education Code is amended to read:

24203.5.
 (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. 
(b) For purposes of establishing eligibility for the increased allowance pursuant to this section only, credited service shall exclude service credited pursuant to the following:
(1) Section 22714.
(2) Section 22715.
(3) Section 22717, except as provided in subdivision (c) of Section 22121.
(4) Section 22717.5.
(c) 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.
(c) The amendments made to subdivision (a) in the first year of the 1999–2000 Regular Session are declaratory of existing law.

SEC. 66.

 Section 24205 of the Education Code is repealed.

24205.
 A member retiring prior to 60 years of age, and who has attained 55 years of age, may elect to receive one-half of the service retirement allowance for normal retirement age for a limited time and then revert to the full retirement allowance for normal retirement age.
(a) The retirement allowance shall be based on service credit and final compensation as of the date of retirement for service and shall be calculated with the factor for normal retirement age.
(b) If the member elects a joint and survivor option under Section 24300 or 24300.1, the actuarial reduction shall be based on the member’s and beneficiary’s ages as of the effective date of the early retirement. If the member elected a preretirement option under Section 24307, the actuarial reduction shall be based on the member’s and beneficiary’s ages as determined by the provisions of that section.
(c) One-half of the retirement allowance as of 60 years of age shall be paid for a period of time equal to twice the elapsed time between the effective date of retirement and the date of the retired member’s 60th birthday.
(d) The full retirement allowance as calculated under subdivision (a) or (b) shall begin to accrue as of the first of the month following the reduction period as specified in subdivision (c). The full retirement allowance shall not begin to accrue prior to this time under any circumstances, including, but not limited to, divorce or death of the named beneficiary.
(e) The annual improvement factor provided for in Sections 22140 and 22141 shall be based upon the retirement allowance as calculated under subdivision (a) or (b). The improvement factor shall begin to accrue on September 1 following the retired member’s 60th birthday. These increases shall be accumulated and shall become payable when the full retirement allowance for normal retirement age first becomes payable.
(f) Any ad hoc benefit increase with an effective date prior to the retired member’s 60th birthday shall not affect an allowance payable under this section. Only those ad hoc improvements with effective dates on or after the retired member’s 60th birthday shall be accrued and accumulated and shall first become payable when the full retirement allowance for normal retirement age becomes payable.
(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).
(h) If a retired member who has elected a joint and survivor option dies during the period when the reduced allowance is payable, the beneficiary shall receive one-half of the allowance payable to the beneficiary until the date when the retired member would have received the full retirement allowance for normal retirement age. At that time, the beneficiary’s allowance shall be increased to the full amount payable to the beneficiary plus the appropriate annual improvement factor increases and ad hoc increases.
(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.

SEC. 67.

 Section 24205 is added to the Education Code, to read:

24205.
 Any member retiring prior to the age of 60 years, and who has attained the age of 55 years, may elect to receive one-half of the service retirement allowance for normal retirement age for a limited time and then revert to the full retirement allowance for normal retirement age.
(a) The retirement allowance shall be based on service credit and final compensation as of the date of retirement for service and shall be calculated with the factor for normal retirement age.
(b) If the member elects a joint and survivor option under Section 24300, the actuarial reduction shall be based on the member’s and beneficiary’s ages as of the effective date of the early retirement. If the member elected a preretirement option under Section 24307, the actuarial reduction shall be based on the member’s and beneficiary’s ages as determined by provisions of that section.
(c) One-half of the retirement allowance as of the age of 60 years shall be paid for a period of time equal to twice the elapsed time between the effective date of retirement and the date of the retired member’s 60th birthday.
(d) The full retirement allowance as calculated under subdivision (a) or (b) shall begin to accrue as of the first of the month following the reduction period as specified in subdivision (c). The full retirement allowance shall not begin to accrue prior to this time under any circumstances, including, but not limited to, divorce or death of the named beneficiary.
(e) The annual improvement factor provided for in Sections 22140 and 22141 shall be based upon the retirement allowance as calculated under subdivision (a) or (b). The improvement factor shall begin to accrue on September 1 following the retired member’s 60th birthday. These increases shall be accumulated and shall become payable when the full retirement allowance for normal retirement age first becomes payable.
(f) Any ad hoc benefit increase with an effective date prior to the retired member’s 60th birthday shall not affect any allowance payable under this section. Only those ad hoc improvements with effective dates on or after the retired member’s 60th birthday shall be accrued and accumulated and shall first become payable when the full retirement allowance for normal retirement age becomes payable.
(g) The cancellation of an option election in accordance with Section 24305 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).
(h) If a retired member who has elected a joint and survivor option dies during the period when the reduced allowance is payable, the beneficiary shall receive one-half of the allowance payable to the beneficiary until the date when the retired member would have received the full retirement allowance for normal retirement age. At that time, the beneficiary’s allowance shall be increased to the full amount payable to the beneficiary plus the appropriate annual improvement factor increases and ad hoc increases.

SEC. 68.

 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, is equal to or greater than 30 years, the amounts identified in subdivisions (a) to (c), inclusive, shall be calculated pursuant to Sections 24203.5 and 24203.6.
(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. 69.

 Section 24212 of the Education Code is amended to read:

24212.
 (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.
(d) Upon retirement, the member may elect to modify the service retirement allowance payable in accordance with any option provided under this part.

SEC. 70.

 Section 24213 of the Education Code is amended to read:

24213.
 (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. 
(b) The allowance shall be increased by an amount based on any 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 on the last day of the month in which the retirement allowance begins to accrue, and projected final compensation to normal retirement age.
(c) If the total amount of credited service accrued, 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.
(d) (b)  Upon retirement, the member may elect to modify the service retirement allowance payable in accordance with any option provided under this part.

SEC. 71.

 Section 24300 of the Education Code is amended to read:

24300.
 (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.
(3) Option 4.The modified retirement allowance shall be paid to the retired member as long as both the retired member and the option beneficiary are living. Upon the death of either the retired member or the option beneficiary, an allowance equal to two-thirds of the modified amount that the retired member was receiving shall be paid to the surviving retired member or the surviving option beneficiary.
(4) Option 5.The modified retirement allowance shall be paid to the retired member as long as both the retired member and the option beneficiary are living. Upon the death of either the retired member or the option beneficiary, an allowance equal to one-half of the modified amount that the retired member was receiving shall be paid to the surviving retired member or surviving 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. 
(6) Option 7.The modified retirement allowance shall be paid to the retired member and upon the retired member’s death, an allowance equal to one-half of the modified amount 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.

SEC. 72.

 Section 24305.5 of the Education Code is amended to read:

24305.5.
 (a) An option elected under Section 24300 may be canceled by a retired member if the option beneficiary is not the retired member’s spouse or former spouse. A retired member may cancel the option before or after issuance of the first retirement allowance payment and shall designate his or her spouse as the new option beneficiary and the same or a different joint and survivor option described in Section 24300.
(b) The retired member shall notify the board, in writing on a form provided by the system, of the designation of the new option beneficiary. Notification shall include a certified copy of the marriage certificate and a properly executed form for the change.
(c) The effective date of the new election shall be six months following the date notification is received by the board, provided both the retired member and the new designated option beneficiary are then living.
(d) The selection of the new option beneficiary and the new option under this section and Section 24300 shall be subject to a further actuarial modification of the modified retirement allowance. In no event may a retired member elect a joint and survivor option that would result in any additional liability to the fund. Modification of the retirement allowance because of the new option beneficiary and the new option shall be based on the ages of the retired member and the new option beneficiary as of the effective date of the new election.

SEC. 73.

 Section 24306 of the Education Code is amended to read:

24306.
 (a) (1) If an option beneficiary designated in the election of an Option 2, Option 3, Option 4, or Option 5, or in the election of Option 2, Option 3, Option 4, or Option 5 under Option 8, predeceases the retired member, the retired member may designate either or both of the following:
(A) A new option beneficiary.
(B) A different joint and survivor option described in Section 24300.
(2) The effective date of the change shall be six months following the date notification is received by the board, provided both the retired member and the designated option beneficiary are then living. Notification shall include proof of death of the predeceased beneficiary and a properly executed form for the change.
(3) The selection of the new joint and survivor option under this subdivision and Section 24300 is subject to a further actuarial modification of the modified retirement allowance. In no event may a retired member elect a joint and survivor option that would result in any additional liability to the fund.
(b) If an option beneficiary designated in the election of an Option 6 or Option 7 or in the election of Option 6 or Option 7 under Option 8, pursuant to Section 24300 or 24307 predeceases the retired member, that portion of the retirement allowance attributable to Option 6 or Option 7 without modification for the option shall be payable to the retired member upon notification to the board and shall commence to accrue to the retired member as of the day following the date of the death of the option beneficiary. Notification to the board shall include proof of death of the beneficiary.
(c) This section shall become operative on January 1, 2000.

SEC. 74.

 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)  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  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:
(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. 75.

 Section 24600 of the Education Code is amended to read:

24600.
 (a) A retirement allowance under this part begins to accrue on the effective date of the member’s retirement and ceases on the earlier of the day of the member’s death or the day on which the retirement allowance is  terminated for a reason other than the member’s death.
(b) A retirement allowance payable to an option beneficiary under this part begins to accrue on the day following the day of the retired member’s death and ceases on the day of the option beneficiary’s death.
(c) A disability allowance under this part begins to accrue on the effective date of the member’s disability allowance  and ceases on the earlier of the day of the member’s death or the day on which the disability allowance is  terminated for a reason other than the member’s death.
(d) A family allowance under this part begins to accrue on the day following the day of the member’s death and ceases on the day of the event that terminates eligibility for the allowance.
(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.
(B) The termination of the allowance for reasons other than death.
(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.
(i) For purposes of subdivision (h), the phrase “terminates employment” means the later of:
(1) The date the member ceases to perform creditable service subject to coverage under this plan.
(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.

SEC. 76.

 Section 24615 of the Education Code is amended to read:

24615.
 (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.

SEC. 77.

 Section 26135 of the Education Code is amended to read:

26135.
 “Plan year” means the calendar, policy, or fiscal year on which the records of the plan are kept, with respect to the Cash Balance Benefit Program. The board by means of plan amendment shall determine the plan year.

SEC. 78.

 Section 26202 of the Education Code is amended to read:

26202.
 (a) The board shall establish a Gain and Loss Reserve within the Teachers’ Retirement Fund for the Cash Balance Benefit Program. The board has sole authority to administer the Gain and Loss Reserve to be drawn upon to the extent necessary to credit interest to employee accounts and employer accounts at the minimum interest rate during years in which the investment earnings of the plan with respect to the Cash Balance Benefit Program are not sufficient for that purpose, and, where necessary, to provide additions to the Annuitant Reserve for monthly annuity payments.
(b) The board shall establish and periodically review goals regarding the sufficiency of the Gain and Loss Reserve based on the recommendation of the actuary.
(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.

SEC. 79.

 Section 26215 of the Education Code is amended to read:

26215.
 (a) Information filed with the system by a participant or beneficiary is confidential and shall be used by the system for the sole purpose of carrying into effect the provisions of this part. No official or employee of the system who has access to the individual records of a participant or beneficiary shall divulge any confidential information concerning those records to any person except in the following instances:
(1) To the participant or beneficiary to whom the information relates.
(2) To the authorized representative of the participant or beneficiary.
(3) To the governing board of the participant’s current or former employer.
(4) To any department, agency, or political subdivision of this state.
(5) To other individuals as necessary to locate a person to whom a benefit may be payable.
(6) Pursuant to subpoena.
(b) Information filed with the system in a beneficiary designation form may be released after the death of the participant to those persons who may provide information necessary for the distribution of benefits.
(c) The information is not open to inspection by anyone except the board and its officers and employees of the system, and any person authorized by statute to make inspections.

SEC. 80.

 Section 26301 of the Education Code is amended to read:

26301.
 (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. 

SEC. 81.

 Section 26303 of the Education Code is amended to read:

26303.
 (a) Employers shall transmit to the plan the employee contributions and employer contributions with respect to the Cash Balance Benefit Program for salary paid to each participant during the pay period no later than 10 working days following the last day of the pay period in which the salary was earned.
(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.

SEC. 82.

 Section 26401.5 of the Education Code is amended to read:

26401.5.
 (a) A member of the Defined Benefit Program who is employed by more than one employer to perform creditable service for less than 50 percent of the full-time equivalent for the position with each employer shall not be eligible to make an election as provided in Section 26401 unless and until all employers by which the member is employed to perform creditable service provide the benefits of this part for their employees.
(b) If a member of the Defined Benefit Program who pursuant to subdivision (a) has made an election as provided in Section 26401 is subsequently employed to perform creditable service for an employer that does not provide the benefits of this part for its employees, contributions shall no longer be made to the Cash Balance Benefit Program on his or her behalf and creditable service performed for all employers shall be subject to coverage under the Defined Benefit Program, with no subsequent right of election pursuant to Section 26401 or subdivision (a).

SEC. 83.

 Section 26504 of the Education Code is amended to read:

26504.
 The employer may enter into a collective bargaining agreement to pay a different employer contribution rate and a different employee contribution rate, provided all of the following conditions are met:
(a) The sum of the employee contributions and employer contributions for each participant shall equal or exceed 8 percent of salary.
(b) The employee contribution rate may exceed the employer contribution rate but in no event shall the employer contribution rate be less than 4 percent.
(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.

SEC. 84.

 Section 26603 of the Education Code is amended to read:

26603.
 (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. 
(b) This section shall become operative on July 1, 2018.

SEC. 85.

 Section 26604 of the Education Code is amended to read:

26604.
 (a) Beginning June 1, 1996, prior to the Cash Balance Plan becoming effective, and prior to the beginning of each plan year thereafter, the board, by plan amendment with respect to the Cash Balance Benefit Program, shall declare the minimum interest rate for crediting employee accounts and employer accounts with respect to the Cash Balance Benefit Program during the following plan year.
(b) All interest shall be computed at the minimum interest rate on the balance of the employee account and the employer account and shall be compounded daily.
(c) Interest for contributions credited during that month to the respective account shall accrue at the minimum interest rate from the first working day following the date contributions are received in full by the system pursuant to Section 26603.
(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.

SEC. 86.

 Section 27410 of the Education Code is amended to read:

27410.
 (a) The nonparticipant spouse who is awarded separate nominal accounts shall have the right to designate, pursuant to Sections 27100 to 27102, inclusive, a beneficiary or beneficiaries to receive the amounts credited to the separate nominal accounts of the nonparticipant spouse on his or her date of death, and any annuity attributable to the separate nominal accounts which is unpaid on the date of the death of the nonparticipant spouse.
(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. 

SEC. 87.

 Section 44494 of the Education Code is amended to read:

44494.
 (a) On or before September 1 of each year, participating school districts that receive funding pursuant to subdivision (a) of Section 44492 shall allocate no less than four thousand dollars ($4,000) to provide each qualified mentor with an additional annual stipend over and above the regular salary to which he or she is entitled. The amount of the annual stipend shall be four thousand dollars ($4,000) for a full school year of service as a mentor, or a pro rata share of that amount for less than a full school year of service as a mentor, except that participating school districts that receive funding pursuant to subdivision (b) of Section 44492 shall allocate the full amount so received to provide a qualified mentor with an additional annual stipend over and above the regular salary to which he or she is entitled. This stipend shall not be counted as salary or wages for purposes of calculating employer and employee contributions or employee benefits under the Defined Benefit Program of the State Teachers’ Retirement Plan.
(b) A mentor may propose that the district allocate all or part of the stipend for his or her professional growth or release time.
(c) The governing board may designate certificated employees as mentor teachers pursuant to Section 44491 and pay these persons the additional annual stipend authorized under subdivision (a) for a period not to exceed three consecutive school years. Upon completing three years as a mentor teacher, an individual may be reviewed and renominated.
(d) The subject of participation by a school district or an individual certificated classroom teacher in a mentor teacher program shall not be included within the scope of representation in collective bargaining among a public school employer and eligible employee organizations.

SEC. 88.

 Section 20639 of the Government Code is amended to read:

20639.
 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.
A member shall be deemed to have retired concurrently under this system and under the Defined Benefit Program of the State Teachers’ Retirement Plan, if the member is enrolled as a disabled member under the Defined Benefit Program of the State Teachers’ Retirement Plan and for retirement under this system on the same effective date.

SEC. 89.

 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. 90.
 Any section of any act enacted by the Legislature during the 1999 calendar year that takes effect on or before January 1, 2000, 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 or any other act that is enacted by the Legislature during the 1999 calendar year and takes effect on or before January 1, 2000, amends, amends and renumbers, adds, repeals and adds, or repeals any section contained in that article, chapter, part, title, or division.