Today's Law As Amended

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SB-525 Public employees’ retirement.(2017-2018)



SECTION 1.

 Section 20026 of the Government Code is amended to read:

20026.
 “Disability” and “incapacity for performance of duty” as a basis of retirement, mean disability of permanent or extended and uncertain duration,  duration, which is expected to last at least 12 consecutive months or will result in death,  as determined by the board, or in the case of a local safety member by the governing body of the contracting agency employing the member, on the basis of competent medical opinion.

SEC. 2.

 Section 20042 of the Government Code is amended to read:

20042.
 On the election of a contracting agency, other than a county superintendent of schools with respect to a contract under Chapter 6 (commencing with Section 20610), “final compensation” for a local member employed by that agency whose retirement is effective or whose death occurs after the date of the election and with respect to benefits based solely  on service to the agency  credit accrued with the contracting agency making the election under this section  shall be computed under Section 20037 but with the substitution of the period of one year for three consecutive years. An election under this section shall be made by amendment to the contracting agency’s contract made in the manner prescribed for approval of contracts, except that an election among the employees is not required, or by express provision of the contract if exercised at the time of approval of a contract.

SEC. 3.

 Section 20138 of the Government Code is amended to read:

20138.
 (a) Notwithstanding any other provisions of law, the board shall provide by rule for conducting education, including, but not limited to,  structured preretirement information seminars. The seminars shall be  seminars,  for the benefit of all members who have attained age 45. members. 
(b) The board shall devise plans for, and in cooperation with appointing powers, design structured seminars  educational offerings  to enhance awareness of the features, benefits, and services of this system. Seminars shall  The educational offerings shall also  include information to assist members to understand  gain awareness of  the importance of financial and estate planning and how choices and options offered by this system may impact retirement security.

SEC. 4.

 Section 20309.7 is added to the Government Code, to read:

20309.7.
 (a) A person who was employed by a school employer before January 1, 2018, in a position that includes activities that meet the definition of creditable service under Section 22119.5 of the Education Code, and whose service in that position was reported to this system, shall continue to retain membership in this system and have his or her past and future service in that position credited to this system, if the person was not enrolled into the State Teachers’ Retirement Plan for that same service and is not otherwise excluded from membership in this system.
(b) (1) A school member who performs service as described in subdivision (a), and who has not yet retired from this system, may elect to have all of their service, and subsequent service, in that position subject to coverage by the State Teachers’ Retirement System and excluded from coverage by this system, if the member is not excluded from coverage by that system.
(2) If an election is made pursuant to this subdivision, all of the following shall apply:
(A) The election shall be made in writing on a form prescribed by this system and filed with this system on or before June 30, 2018, and copies of the election form shall be filed with the school employer and the State Teachers’ Retirement System.
(B) A school member not subject to the California Public Employees’ Pension Reform Act of 2013 shall not be subject to that act in the State Teachers’ Retirement System.
(C) A school member subject to the California Public Employees’ Pension Reform Act of 2013 shall be subject to that act in the State Teachers’ Retirement System.
(3) The board shall be under no obligation to identify, locate, or notify persons who are eligible to make an election pursuant to this subdivision.
(4) An election made pursuant to this subdivision shall be irrevocable.
(c) A member described in subdivision (a) who becomes employed by the same or a different employer in a new position performing creditable service under Section 22119.5 on or after January 1, 2018, shall not have his or her service in that new position reported to this system unless that service is otherwise eligible for coverage by this system.
(d) This section shall not apply to a person who has made a valid election pursuant to either Section 20309 or 20309.5.

SEC. 5.

 Section 20636 of the Government Code is amended to read:

20636.
 (a) “Compensation earnable” by a member means the payrate and special compensation of the member, as defined by subdivisions (b), (c), and (g), and as limited by Section 21752.5.
(b) (1) “Payrate” means the normal monthly rate of pay or base pay of the member paid in cash to similarly situated members of the same group or class of employment for services rendered on a full-time basis during normal working hours, pursuant to publicly available pay schedules. “Payrate,” for a member who is not in a group or class, means the monthly rate of pay or base pay of the member, paid in cash and pursuant to publicly available pay schedules, for services rendered on a full-time basis during normal working hours, subject to the limitations of paragraph (2) of subdivision (e).
(2) “Payrate” shall include an amount deducted from a member’s salary for any of the following:
(A) Participation in a deferred compensation plan.
(B) Payment for participation in a retirement plan that meets the requirements of Section 401(k) of Title 26 of the United States Code.
(C) Payment into a money purchase pension plan and trust that meets the requirements of Section 401(a) of Title 26 of the United States Code.
(D) Participation in a flexible benefits program.
(3) The computation for a leave without pay of a member shall be based on the compensation earnable by him or her at the beginning of the absence.
(4) The computation for time prior to entering state service shall be based on the compensation earnable by him or her in the position first held by him or her in state service.
(c) (1) Special compensation of a member includes a payment received for special skills, knowledge, abilities, work assignment, workdays or hours, or other work conditions.
(2) Special compensation shall be limited to that which is received by a member pursuant to a labor policy or agreement or as otherwise required by state or federal law, to similarly situated members of a group or class of employment that is in addition to payrate. If an individual is not part of a group or class, special compensation shall be limited to that which the board determines is received by similarly situated members in the closest related group or class that is in addition to payrate, subject to the limitations of paragraph (2) of subdivision (e).
(3) Special compensation shall be for services rendered during normal working hours and, when reported to the board, the employer shall identify the pay period in which the special compensation was earned. do all of the following: 
(A) Identify the pay period in which the special compensation was earned.
(B) Identify each item of special compensation and the category under which that item is listed, as described in regulations promulgated by the board pursuant to paragraph (6), for example, the item of Uniform Allowance would be reported under the category of Statutory Items.
(C) Report each item of special compensation separately from payrate.
(4) Special compensation may include the full monetary value of normal contributions paid to the board by the employer, on behalf of the member and pursuant to Section 20691, if the employer’s labor policy or agreement specifically provides for the inclusion of the normal contribution payment in compensation earnable.
(5) The monetary value of a service or noncash advantage furnished by the employer to the member, except as expressly and specifically provided in this part, is not special compensation unless regulations promulgated by the board specifically determine that value to be “special compensation.”
(6) The board shall promulgate regulations that delineate more specifically and exclusively what constitutes “special compensation” as used in this section. A uniform allowance, the monetary value of employer-provided uniforms, holiday pay, and premium pay for hours worked within the normally scheduled or regular working hours that are in excess of the statutory maximum workweek or work period applicable to the employee under Section 201 and following of Title 29 of the United States Code shall be included as special compensation and appropriately defined in those regulations.
(7) Special compensation does not include any of the following:
(A) Final settlement pay.
(B) Payments made for additional services rendered outside of normal working hours, whether paid in lump sum or otherwise.
(C) Other payments the board has not affirmatively determined to be special compensation.
(d) Notwithstanding any other provision of law, payrate and special compensation schedules, ordinances, or similar documents shall be public records available for public scrutiny.
(e) (1) As used in this part, “group or class of employment” means a number of employees considered together because they share similarities in job duties, work location, collective bargaining unit, or other logical work-related grouping. One employee may not be considered a group or class.
(2) Increases in compensation earnable granted to an employee who is not in a group or class shall be limited during the final compensation period applicable to the employees, as well as the two years immediately preceding the final compensation period, to the average increase in compensation earnable during the same period reported by the employer for all employees who are in the same membership classification, except as may otherwise be determined pursuant to regulations adopted by the board that establish reasonable standards for granting exceptions.
(f) As used in this part, “final settlement pay” means pay or cash conversions of employee benefits that are in excess of compensation earnable, that are granted or awarded to a member in connection with, or in anticipation of, a separation from employment. The board shall promulgate regulations that delineate more specifically what constitutes final settlement pay.
(g) (1) Notwithstanding subdivision (a), “compensation earnable” for state members means the average monthly compensation, as determined by the board, upon the basis of the average time put in by members in the same group or class of employment and at the same rate of pay, and is composed of the payrate and special compensation of the member. The computation for an absence of a member shall be based on the compensation earnable by him or her at the beginning of the absence and for time prior to entering state service shall be based on the compensation earnable by him or her in the position first held by him or her in that state service.
(2) Notwithstanding subdivision (b), “payrate” for state members means the average monthly remuneration paid in cash out of funds paid by the employer to similarly situated members of the same group or class of employment, in payment for the member’s services or for time during which the member is excused from work because of holidays, sick leave, vacation, compensating time off, or leave of absence. “Payrate” for state members shall include:
(A) An amount deducted from a member’s salary for any of the following:
(i) Participation in a deferred compensation plan established pursuant to Chapter 4 (commencing with Section 19993) of Part 2.6.
(ii) Payment for participation in a retirement plan that meets the requirements of Section 401(k) of Title 26 of the United States Code.
(iii) Payment into a money purchase pension plan and trust that meets the requirements of Section 401(a) of Title 26 of the United States Code.
(iv) Participation in a flexible benefits program.
(B) A payment in cash by the member’s employer to one other than an employee for the purpose of purchasing an annuity contract for a member under an annuity plan that meets the requirements of Section 403(b) of Title 26 of the United States Code.
(C) Employer “pick up” of member contributions that meets the requirements of Section 414(h)(2) of Title 26 of the United States Code.
(D) Disability or workers’ compensation payments to safety members in accordance with Section 4800 of the Labor Code.
(E) Temporary industrial disability payments pursuant to Article 4 (commencing with Section 19869) of Chapter 2.5 of Part 2.6.
(F) Other payments the board may determine to be within “payrate.”
(3) Notwithstanding subdivision (c), “special compensation” for state members shall mean all of the following:
(A) The monetary value, as determined by the board, of living quarters, board, lodging, fuel, laundry, and other advantages of any nature furnished to a member by his or her employer in payment for the member’s services.
(B) Compensation for performing normally required duties, such as holiday pay, bonuses (for duties performed on regular work shift), educational incentive pay, maintenance and noncash payments, out-of-class pay, marksmanship pay, hazard pay, motorcycle pay, paramedic pay, emergency medical technician pay, Peace Officer Standards and Training (POST) certificate pay, and split shift differential.
(C) Compensation for uniforms, except as provided in Section 20632.
(D) Other payments the board may determine to be within “special compensation.”
(4) “Payrate” and “special compensation” for state members do not include any of the following:
(A) The provision by the state employer of a medical or hospital service or care plan or insurance plan for its employees (other than the purchase of annuity contracts as described below in this subdivision), a contribution by the employer to meet the premium or charge for that plan, or a payment into a private fund to provide health and welfare benefits for employees.
(B) A payment by the state employer of the employee portion of taxes imposed by the Federal Insurance Contribution Act.
(C) Amounts not available for payment of salaries and that are applied by the employer for the purchase of annuity contracts including those that meet the requirements of Section 403(b) of Title 26 of the United States Code.
(D) Benefits paid pursuant to Article 5 (commencing with Section 19878) of Chapter 2.5 of Part 2.6.
(E) Employer payments that are to be credited as employee contributions for benefits provided by this system, or employer payments that are to be credited to employee accounts in deferred compensation plans. The amounts deducted from a member’s wages for participation in a deferred compensation plan may not be considered to be “employer payments.”
(F) Payments for unused vacation, annual leave, personal leave, sick leave, or compensating time off, whether paid in lump sum or otherwise.
(G) Final settlement pay.
(H) Payments for overtime, including pay in lieu of vacation or holiday.
(I) Compensation for additional services outside regular duties, such as standby pay, callback pay, court duty, allowance for automobiles, and bonuses for duties performed after the member’s regular work shift.
(J) Amounts not available for payment of salaries and that are applied by the employer for any of the following:
(i) The purchase of a retirement plan that meets the requirements of Section 401(k) of Title 26 of the United States Code.
(ii) Payment into a money purchase pension plan and trust that meets the requirements of Section 401(a) of Title 26 of the United States Code.
(K) Payments made by the employer to or on behalf of its employees who have elected to be covered by a flexible benefits program, where those payments reflect amounts that exceed the employee’s salary.
(L) Other payments the board may determine are not “payrate” or “special compensation.”
(5) If the provisions of this subdivision, including the board’s determinations pursuant to subparagraph (F) of paragraph (2) and subparagraph (D) of paragraph (3), are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5 or 3560, the memorandum of understanding shall be controlling without further legislative action, except that if the provisions of a memorandum of understanding require the expenditure of funds, those provisions may not become effective unless approved by the Legislature in the annual Budget Act. No memorandum of understanding reached pursuant to Section 3517.5 or 3560 may exclude from the definition of either “payrate” or “special compensation” a member’s base salary payments or payments for time during which the member is excused from work because of holidays, sick leave, vacation, compensating time off, or leave of absence. If items of compensation earnable are included by memorandum of understanding as “payrate” or “special compensation” for retirement purposes for represented and higher education employees pursuant to this paragraph, the Department of Human Resources or the Trustees of the California State University shall obtain approval from the board for that inclusion.
(6) (A) Subparagraph (B) of paragraph (3) prescribes that compensation earnable includes compensation for performing normally required duties, such as holiday pay, bonuses (for duties performed on regular work shift), educational incentive pay, maintenance and noncash payments, out-of-class pay, marksmanship pay, hazard pay, motorcycle pay, paramedic pay, emergency medical technician pay, POST certificate pay, and split shift differential; and includes compensation for uniforms, except as provided in Section 20632; and subparagraph (I) of paragraph (4) excludes from compensation earnable compensation for additional services outside regular duties, such as standby pay, callback pay, court duty, allowance for automobile, and bonuses for duties performed after regular work shift.
(B) Notwithstanding subparagraph (A), the Department of Human Resources shall determine which payments and allowances that are paid by the state employer shall be considered compensation for retirement purposes for an employee who either is excluded from the definition of state employee in Section 3513, or is a nonelected officer or employee of the executive branch of government who is not a member of the civil service.
(C) Notwithstanding subparagraph (A), the Trustees of the California State University shall determine which payments and allowances that are paid by the trustees shall be considered compensation for retirement purposes for a managerial employee, as defined in Section 3562, or supervisory employee as defined in Section 3580.3.
(7) Notwithstanding subdivision (c), a state employer shall, when reporting payrate and special compensation, do all of the following:
(A) Identify the pay period in which the special compensation was earned.
(B) Identify each item of special compensation, as permitted pursuant to paragraphs (3) and (5).
(C) Report each item of special compensation separately from payrate.
(h) This section shall not apply to a new member, as defined in Section 7522.04.

SEC. 6.

 Section 20636.1 of the Government Code is amended to read:

20636.1.
 (a) Notwithstanding Section 20636, and Section 45102 of the Education Code, “compensation earnable” by a school member means the payrate and special compensation of the member, as defined by subdivisions (b) and (c), and as limited by Section 21752.5.
(b) (1) “Payrate” means the normal monthly rate of pay or base pay of the member paid in cash to similarly situated members of the same group or class of employment for services rendered on a full-time basis during normal working hours. For purposes of this part, for classified members, full-time employment is 40 hours per week, and payments for services rendered, not to exceed 40 hours per week, shall be reported as compensation earnable for all months of the year in which work is performed. “Payrate,” for a member who is not in a group or class, means the monthly rate of pay or base pay of the member, paid in cash and pursuant to publicly available pay schedules, for services rendered on a full-time basis during normal working hours, subject to the limitations of paragraph (2) of subdivision (e).
(A) “Payrate” shall include an amount deducted from a member’s salary for any of the following:
(i) Participation in a deferred compensation plan.
(ii) Payment for participation in a retirement plan that meets the requirements of Section 401(k) or 403(b) of Title 26 of the United States Code.
(iii) Payment into a money purchase pension plan and trust that meets the requirements of Section 401(a) of Title 26 of the United States Code.
(iv) Participation in a flexible benefits program.
(B) For the purposes of this section, “classified members” shall mean members who retain membership under this system while employed with a school employer in positions not subject to coverage under the Defined Benefit Program under the State Teachers’ Retirement System.
(C) For the purposes of this section, and Sections 20962 and 20966, “certificated members” shall mean members who retain membership under this system while employed in positions subject to coverage under the Defined Benefit Program under the State Teachers’ Retirement System.
(2) The computation for any leave without pay of a member shall be based on the compensation earnable by him or her at the beginning of the absence.
(3) The computation for time prior to entering state service shall be based on the compensation earnable by him or her in the position first held by him or her in state service.
(c) (1) Special compensation of a school member includes any payment received for special skills, knowledge, abilities, work assignment, workdays or hours, or other work conditions.
(2) Special compensation shall be limited to that which is received by a member pursuant to a labor policy or agreement or as otherwise required by state or federal law, to similarly situated members of a group or class of employment that is in addition to payrate. If an individual is not part of a group or class, special compensation shall be limited to that which the board determines is received by similarly situated members in the closest related group or class that is in addition to payrate, subject to the limitations of paragraph (2) of subdivision (e).
(3) Special compensation shall be for services rendered during normal working hours and, when reported to the board, the employer shall identify the pay period in which the special compensation was earned. shall: 
(A) Identify the pay period in which the special compensation was earned.
(B) Identify each item of special compensation and the category under which that item is listed, as described in regulations promulgated by the board pursuant to paragraph (6) of subdivision (c), for example, the item of Uniform Allowance would be reported under the category of Statutory Items. and
(C) Report each item of special compensation separately from payrate.
(4) Special compensation may include the full monetary value of normal contributions paid to the board by the employer, on behalf of the member and pursuant to Section 20691, provided that the employer’s labor policy or agreement specifically provides for the inclusion of the normal contribution payment in compensation earnable.
(5) The monetary value of any service or noncash advantage furnished by the employer to the member, except as expressly and specifically provided in this part, shall not be special compensation unless regulations promulgated by the board specifically determine that value to be “special compensation.”
(6) The board shall promulgate regulations that delineate more specifically and exclusively what constitutes “special compensation” as used in this section. A uniform allowance, the monetary value of employer-provided uniforms, holiday pay, and premium pay for hours worked within the normally scheduled or regular working hours that are in excess of the statutory maximum workweek or work period applicable to the employee under Section 201 and following of Title 29 of the United States Code shall be included as special compensation and appropriately defined in those regulations.
(7) Special compensation does not include any of the following:
(A) Final settlement pay.
(B) Payments made for additional services rendered outside of normal working hours, whether paid in lump sum or otherwise.
(C) Any other payments the board has not affirmatively determined to be special compensation.
(d) Notwithstanding any other provision of law, payrate and special compensation schedules, ordinances, or similar documents shall be public records available for public scrutiny.
(e) (1) As used in this part, “group or class of employment” means a number of employees considered together because they share similarities in job duties, work location, collective bargaining unit, or other logical work-related grouping. Under no circumstances shall one employee be considered a group or class.
(2) Increases in compensation earnable granted to any employee who is not in a group or class shall be limited during the final compensation period applicable to the employees, as well as the two years immediately preceding the final compensation period, to the average increase in compensation earnable during the same period reported by the employer for all employees who are in the same membership classification, except as may otherwise be determined pursuant to regulations adopted by the board that establish reasonable standards for granting exceptions.
(f) As used in this part, “final settlement pay” means any pay or cash conversions of employee benefits that are in excess of compensation earnable, that are granted or awarded to a member in connection with or in anticipation of a separation from employment. The board shall promulgate regulations that delineate more specifically what constitutes final settlement pay.
(g) This section shall not apply to a new member, as defined in Section 7522.04.

SEC. 7.

 Section 21228 of the Government Code is repealed.

21228.
 A person retired for disability who has not attained the mandatory age for retirement applicable to persons in the employment in which he or she will be employed, and whom the board finds not disabled for that employment, may be employed by any employer without reinstatement from retirement in a position other than that from which he or she retired or a position in the same member classification. His or her disability retirement pension shall be reduced during that employment to an amount that, when added to the compensation received, shall equal the maximum compensation earnable by a person holding the position that he or she held at the time of his or her retirement. Any employment shall terminate upon his or her attainment of the mandatory retirement age for persons in that employment. A person employed under this section shall not be concurrently employed under Section 21224, 21225, 21226, 21227, or 21229, or subdivision (h) of Section 21221.

SEC. 8.

 Section 21261 of the Government Code is amended to read:

21261.
 The sole purpose of this section is to notify the current spouse of the selection of benefits or change of beneficiary made by a member. This section is not intended to conflict with community property law.
The  (a)  sole purpose of this section is to notify the current spouse of the selection of benefits or change of beneficiary made by a member. This section is not intended to conflict with community property law.  An application for a refund of the member’s accumulated contributions, an election of optional settlement, a designation of beneficiary, or a change in beneficiary designation shall contain the signature of the current spouse of the member, unless the member declares, in writing under penalty of perjury, any of the following:
(a) (1)  The member is not married.
(b) (2)  The current spouse has no identifiable community property interest in the benefit.
(c) (3)  The member does not know, and has taken all reasonable steps to determine, the whereabouts of the current spouse.
(d) (4)  The current spouse has been advised of the application and has refused to sign the written acknowledgment.
(e) (5)  The current spouse is incapable of executing the acknowledgment because of an incapacitating mental or physical condition.
(f) (6)  The member and the current spouse have executed a marriage settlement agreement pursuant to Part 5 (commencing with Section 1500) of Division 4 of the Family Code that makes the community property law inapplicable to the marriage.
(b) Notwithstanding subdivision (a), the designation of a member’s current spouse as the member’s sole primary beneficiary on any lump-sum beneficiary designation shall not require the signature of the member’s current spouse.
(c) Notwithstanding subdivision (a), when a member makes an election of optional settlement that, upon the member’s death, provides the member’s current spouse with a monthly lifetime allowance that is the same as the monthly lifetime allowance received by the member, and the member’s current spouse is also designated as the member’s sole primary beneficiary on any lump-sum beneficiary designation, the election shall not require the signature of the member’s current spouse.

SEC. 9.

 Section 21337 of the Government Code is amended to read:

21337.
 (a) On an annual basis, the board shall transfer funds to separate supplemental state and school accounts, to fund the purchasing power protection allowance of retirees, survivors, and beneficiaries of state or school employers, respectively. The amounts transferred shall be the lesser of the following:
(1) The amount necessary to increase all monthly allowances paid by this system to retirees, survivors, and beneficiaries of state or school employers to 75 percent of the purchasing power of the initial monthly allowances.
(2) One and one-tenth percent of the net earnings on  state or school member contributions, as determined by Section 20178.
(b) The funds transferred to the two separate supplemental accounts shall be utilized to increase all monthly allowances paid by this system to retirees, survivors, and beneficiaries of state and school employers, up to a maximum of 75 percent of the purchasing power, as determined by the board, of the initial monthly allowances, notwithstanding the benefit provided by Section 21328, that were received by every retired state or school member or survivor or beneficiary of a state or school member or retiree who was eligible to receive any allowance at the end of each fiscal year. Funds remaining in the state or school account after the payment of benefits under this section shall be transferred to the respective state or school employer accounts.
(c) Annual adjustments in the purchasing power protection allowance shall be effective with the monthly allowance regularly payable on the first day of May, provided that in the first year after enactment of the act adding this subdivision, the purchasing power protection allowance adjustment to the monthly allowance payable on the first day of May shall also reflect an adjustment for the period from January 1 through April 30. The board shall implement the provisions of this subdivision on or before January 1, 2012, unless the board determines that the implementation tasks cannot be completed until a later date, in which case, the board shall be prepared to implement the provisions of this section no later than July 1, 2013.

SEC. 10.

 Section 21409 of the Government Code is amended to read:

21409.
 Upon the industrial disability retirement of a state miscellaneous member within Section 21151, or a state industrial member whose service is subject to Section 21076,  21076 or 21076.5,  the disability allowance shall be 50 percent of his or her final compensation plus an annuity purchased with his or her accumulated additional contribution, if any, or if qualified for service retirement, he or she shall receive his or her service retirement allowance, if the allowance, after deducting the annuity, is greater.

SEC. 11.

 Section 21424 of the Government Code is amended to read:

21424.
 The nonindustrial disability retirement pension for state miscellaneous or state industrial service subject to Section 21076 or 21076.5  shall be one of the following:
(a) Ninety percent of the factor applicable at the age of 65 years as set forth in Section 21076 multiplied by  one-eightieth of his or her  final compensation, multiplied by the number of years of service credited to him or her.
(b) If the nonindustrial disability retirement allowance computed under subdivision (a) does not exceed one-third of his or her final compensation, 90 percent of the benefit  one-eightieth of his or her final compensation multiplied by the number of years of service  that would be payable to the member had the member continued in employment until  creditable to him or her if his or her service were to continue until attainment by him or her of  the age of 65 years, but in that case the retirement allowance may not exceed one-third of the final compensation. This subdivision is not applicable to members who have not been credited, at the time of retirement, with at least 10 years of state service.
(c) If the nonindustrial disability retirement allowance is derived from this section and Section 21423, and would otherwise exceed the maximums provided by these sections, the pension payable with respect to each section shall be reduced in the same proportion as the allowance bears to the total allowance computed as if there were no limit, so that the total of the pensions shall equal the maximum allowed.
(d) If qualified for service retirement, the member shall receive his or her service retirement allowance if that allowance is greater than the nonindustrial disability retirement allowance provided by this section.

SEC. 12.

 Section 21454 of the Government Code is amended to read:

21454.
 Notwithstanding Section 21453, an election of optional settlement 2 or 3, or optional settlement 4 involving life contingency in which a spouse is designated as the beneficiary, may be modified as provided in this section in the event of a dissolution or annulment  of the  marriage or a legal separation in which the division of the community property awards the total interest in the retirement system to the retired member.  member, or in an annulment of the marriage in which a court confirms the annulment.  The modification shall provide that payment shall be continued during the retired person’s lifetime in accordance with the optional settlement then in effect but that no monthly allowance shall be paid following the retired person’s death, and in lieu thereof there shall be paid in a lump sum to the member’s estate or a beneficiary designated by him or her the amount, if any, by which the member’s accumulated contributions at retirement exceed the total payments made to the retired person to the date of his or her death.
This section shall apply to any member who retires on or before December 31, 2017.

SEC. 13.

 Section 21459 of the Government Code is amended to read:

21459.
 A member who elects to receive optional settlement 2 or 3 may concurrently and irrevocably elect to waive the provision for an increase to his or her allowance due to the death of his or her beneficiary  beneficiary, a dissolution of marriage or a legal separation in which the judgment dividing the community property awards the total interest in this retirement system to the member, or in an annulment of the marriage in which a court confirms the annulment, or if the nonspouse beneficiary waives entitlement to this allowance  and shall, instead, have his or her allowance based upon the waiver of this benefit.
This section shall apply to any member who retires on or before December 31, 2017.

SEC. 14.

 Section 21462 of the Government Code is amended to read:

21462.
 (a) (1) Notwithstanding any other provision of this part, a member who elected to receive optional settlement 2, 3, or 4, involving a life contingency of the beneficiary, may, if the beneficiary predeceases the member or if the member marries and the former spouse was not named as beneficiary, or, if a former spouse was named, in the event of a dissolution or annulment  of the  marriage or a legal separation in which the judgment dividing the community property awards the total interest in the retirement system to the retired member, or in an annulment of marriage in which the court confirms the annulment,  elect to have the actuarial equivalent reflecting any selection against the fund resulting from the election as of the date of election of the allowance payable for the remainder of the member’s lifetime under the optional settlement previously chosen applied to a lesser allowance during the member’s remaining lifetime under one of the optional settlements specified in this article and name a different beneficiary.
(2) Notwithstanding paragraph (1), for an election pursuant to this section that occurs on or after January 1, 2014, a member may name the same beneficiary as previously designated, provided that the resulting benefit to the member and the named beneficiary otherwise meets the requirements of this section.
(b) The election provided by this section is irrevocable and  shall be made within 12 months following the death of the beneficiary who predeceased the member or  member,  within 12 months of the date of entry of the annulment of marriage or  judgment dividing the community property of the parties, or within 12 months following marriage if the spouse is named as beneficiary. The election shall become effective on the date specified on the election, provided that this date is not earlier than the day following receipt of the election in this system pursuant to this section.
(c) A member who has a qualifying event prior to January 1, 1988, and who fails to elect by January 1, 1989, or a member who has a qualifying event on or after January 1, 1988, and who fails to elect within 12 months, shall retain the right to make an election under this section. However, this election shall become effective no earlier than 12 months after the date it is filed with the board, provided that neither the member nor the designated beneficiary die prior to the effective date of the election.
(d) This section shall not be construed to mean that designation of a new beneficiary causes the selection of an optional settlement. An optional settlement shall be selected by a member in a writing filed by the member with the board.
This section shall apply to any member who retires on or before December 31, 2017.

SEC. 15.

 Section 21473 of the Government Code is amended to read:

21473.
 (a) Notwithstanding Section 21472, the election of an optional settlement in Section 21475, 21475.5, 21476, 21476.5, or 21477 in which a spouse is designated as the beneficiary, may be modified as provided in this section in the event of a dissolution or annulment  of the  marriage or a legal separation in which the division of the community property awards the total interest in the retirement system to the retired member.  member, or in an annulment of marriage in which a court confirms the annulment.  The modification shall provide that payment shall be continued during the retired member’s lifetime in accordance with the optional settlement then in effect but that no monthly allowance shall be paid following the retired member’s death, and in lieu thereof there shall be paid in a lump sum to the member’s estate or a beneficiary designated by him or her the amount, if any, by which the member’s accumulated contributions at retirement exceed the total payments made to the retired member to the date of his or her death.
(b) This section shall apply to any member who retires on or after January 1, 2018.

SEC. 16.

 Section 21475.5 of the Government Code is amended to read:

21475.5.
 (a) The 100 Percent Beneficiary Option 2 with Benefit Allowance Increase consists of the right to have a retirement allowance paid to a member until his or her death and thereafter to have the same monthly allowance paid to his or her named beneficiary for life; provided that with respect to a member subject to Section 21624, 21629, or 21630 at retirement, the named beneficiary shall receive a monthly allowance equal to that portion of the member’s allowance that exceeds the amount of the allowance deemed payable to a survivor.
(1) If the beneficiary predeceases the member, the member’s allowance shall be adjusted effective the first of the month following the death of the beneficiary, to reflect the benefit that would have been paid had the member not selected an optional settlement.
(2) If a nonspouse beneficiary waives entitlement to this allowance, the member’s allowance shall be adjusted effective the first of the month following the receipt of the waiver of the allowance entitlement from the nonspouse beneficiary to reflect the benefit that would have been paid had the member not selected an optional settlement.
(3) If the marriage of a member is dissolved or annulled or  there is a legal separation between the member and the beneficiary spouse and the judgment dividing the community property awards the total interest in this system to the member, the  or in the event of an annulment of marriage in which the court confirms the annulment, the  member’s allowance shall be adjusted effective the first of the month following the filing of the judgment with the board to reflect the benefit that would have been paid had the member not selected an optional settlement.
(b) Nothing in this section shall result in additional cost to the employer.
(c) This section shall apply to any member who retires on or after January 1, 2018.

SEC. 17.

 Section 21476.5 of the Government Code is amended to read:

21476.5.
 (a) The 50 Percent Beneficiary Option 3 with Benefit Allowance Increase consists of the right to have a retirement allowance paid to a member until his or her death, and thereafter to have one-half of the member’s monthly allowance paid to his or her named beneficiary for life; provided that with respect to a member subject to Section 21624, 21629, or 21630 at retirement, the named beneficiary shall receive a monthly allowance equal to one-half of that portion of the member’s allowance that exceeds the amount of the allowance deemed payable to a survivor.
(1) If the beneficiary predeceases the member, the member’s allowance shall be adjusted effective the first of the month following the death of the beneficiary, to reflect the benefit that would have been paid had the member not selected an optional settlement.
(2) If the marriage of a member is dissolved or annulled or  there is a legal separation between the member and the beneficiary spouse and the judgment dividing the community property awards the total interest in this system to the member, the  or in the event of an annulment of marriage in which the court confirms the annulment, the  member’s allowance shall be adjusted effective the first of the month following the filing of the judgment with the board to reflect the benefit that would have been paid had the member not selected an optional settlement.
(3) If a nonspouse beneficiary waives entitlement to this allowance, the member’s allowance shall be adjusted, effective the first of the month following the receipt of the waiver of the allowance entitlement from the nonspouse beneficiary, to reflect the benefit that would have been paid had the member not selected an optional settlement.
(b) Nothing in this section shall result in additional cost to the employer.
(c) This section shall apply to any member who retires on or after January 1, 2018.

SEC. 18.

 Section 21477 of the Government Code is amended to read:

21477.
 (a) The Flexible Beneficiary Option 4 consists of the right to have a retirement allowance paid to a member until his or her death, and thereafter to have a monthly allowance paid to his or her named beneficiary or beneficiaries for life. Subject to Section 21471.2, the member may select the monthly allowance payable to the named beneficiary or beneficiaries from the options below:
(1) Specific Dollar Amount to a Beneficiary or Beneficiaries. The member may specify that upon his or her death after retirement, a monthly allowance in an amount determined by the member be paid to a named beneficiary or beneficiaries for life.
(2) Specific Percentage to a Beneficiary or Beneficiaries. The member may specify that upon his or her death after retirement, a monthly allowance in an amount equivalent to a specified percentage of the member’s allowance be paid to a named beneficiary or beneficiaries for life.
(3) Court Ordered Community Property. Upon receipt of documentation by the board and solely for purposes of dividing community property in connection with the legal separation or dissolution of marriage, a court may order the member to select this option to provide the nonmember spouse with a lifetime monthly allowance equal to the nonmember spouse’s system interest as defined in the court order. This order shall comply with Section 2610 of the Family Code.
(A) Any portion of the member’s unmodified benefit that is not awarded to the nonmember spouse shall be the member’s separate benefit.
(B) The actuarial reduction necessary to provide a lifetime benefit to the nonmember spouse shall be based on the joint lives of both the member and the nonmember spouse as determined by the board. Unless the court order provides otherwise, the actuarial reduction will be applied to the nonmember spouse’s system interest.
(C) A member who selects this option shall have the right to receive his or her separate interest for his or her life alone or may designate another beneficiary or beneficiaries to receive a benefit after the member’s death as set forth in Section 21471 or 21474, or this section.
(D) This section is not intended to limit the parties’ rights to obtain a court order providing for any other division of the community property interest acceptable to the board in accordance with Section 2610 of the Family Code or for the selection of a different optional settlement.
(b) This section shall apply to any member who retires on or after January 1, 2018.

SEC. 19.

 Section 21481 of the Government Code is amended to read:

21481.
 (a) (1) Notwithstanding any other provision of this part, a member who elected the optional settlement in Section 21475, 21475.5, 21476, 21476.5, or 21477, may, if the beneficiary predeceases the member or if the member marries and the former spouse was not named as beneficiary, or, if a former spouse was named, in the event of a dissolution or annulment  of the  marriage or a legal separation in which the judgment dividing the community property awards the total interest in the retirement system to the retired member, or in an annulment of marriage in which the court confirms the annulment,  elect to have the actuarial equivalent reflecting any selection against the fund resulting from the election as of the date of election of the allowance payable for the remainder of the member’s lifetime under the optional settlement previously chosen applied to a lesser allowance during the member’s remaining lifetime under one of the optional settlements specified in this article and name a different beneficiary.
(2) Notwithstanding paragraph (1), for an election pursuant to this section that occurs on or after January 1, 2014, a member may name the same beneficiary as previously designated, provided that the resulting benefit to the member and the named beneficiary otherwise meets the requirements of this section.
(b) The election provided by this section is irrevocable and  shall be made within 12 months following the death of the beneficiary who predeceased the member or within 12 months of the date of entry of the annulment of marriage or  judgment dividing the community property of the parties, or within 12 months following marriage if the spouse is named as beneficiary. The election shall become effective on the date specified on the election, provided that this date is not earlier than the day following receipt of the election in this system pursuant to this section.
(c) A member who has a qualifying event prior to January 1, 1988,  and who fails to elect by January 1, 1989, or a member who has a qualifying event on or after January 1, 1988, and who fails to elect  within 12 months, shall retain the right to make an election under this section. However, this election shall become effective no earlier than 12 months after the date it is filed with the board, provided that neither the member nor the designated beneficiary die prior to the effective date of the election.
(d) This section shall not be construed to mean that designation of a new beneficiary causes the selection of an optional settlement. An optional settlement shall be selected by a member in a writing filed by the member with the board.
(e) This section shall apply to any member who retires on or after January 1, 2018.

SEC. 20.

 Section 75071 of the Government Code is amended to read:

75071.
 This section shall apply to any judge who retires on or before December 31, 2017.
(a) Optional settlement one consists of the right to have a retirement allowance paid to the judge for life and if he or she dies before receiving the amount of his or her accumulated contributions at retirement, to have the balance at death paid to his or her designated beneficiary or, if no beneficiary designation is in effect on the date of death, to his or her estate.
(b) (1) Optional settlement two consists of the right to have a retirement allowance paid to him or her for life and thereafter to his or her designated beneficiary for life.
(2) If the judge’s designated beneficiary predeceases the judge and the judge elected this optional settlement to be effective on or after January 1, 2002, the judge’s allowance shall be adjusted effective the first day of the month following the death of the beneficiary to reflect the benefit that would have been paid had the judge not elected an optional settlement.
(3) If the marriage of a retired judge  designated beneficiary is a spouse and the marriage  is dissolved or annulled or if the retired judge and his or her beneficiary spouse are legally separated and  a legal separation filed, and  the judgment dividing their the  community property between the judge and the beneficiary  awards the total interest in this system to the retired judge, and the retired  or the marriage is annulled and confirmed by a court, and the  judge elected this optional settlement to be effective on or after January 1, 2002, the retired judge’s allowance shall be adjusted effective the first day of the month following the filing of the judgment with the board to reflect the benefit that would have been paid had the judge not elected an optional settlement.
(c) (1) Optional settlement three consists of the right to have a retirement allowance paid him or her for life, and thereafter to have one-half of his or her retirement allowance paid to his or her designated beneficiary for life.
(2) If the judge’s designated beneficiary predeceases the judge and the judge elected this optional settlement to be effective on or after January 1, 2002, the judge’s allowance shall be adjusted effective the first day of the month following the death of the beneficiary to reflect the benefit that would have been paid had the judge not elected an optional settlement.
(3) If the marriage of a retired judge  designated beneficiary is a spouse and the marriage  is dissolved or annulled or if the retired judge and his or her beneficiary spouse are legally separated and  a legal separation filed, and  the judgment dividing their the  community property between the judge and the beneficiary  awards the total interest in this system to the retired judge, and  or the marriage is annulled and confirmed by a court, and  the retired judge elected this optional settlement to be effective on or after January 1, 2002, the retired judge’s allowance shall be adjusted effective the first day of the month following the filing of the judgment with the board to reflect the benefit that would have been paid had the judge not elected an optional settlement.
(d) Optional settlement four consists of other benefits that are the actuarial equivalent of his or her retirement allowance, that he or she may select subject to the approval of the Judges’ Retirement System.
(e) When a judge elects, on or after January 1, 2003, to receive benefits provided by paragraph (2) of subdivision (b) or paragraph (2) of subdivision (c), and the judge and his or her optional settlement beneficiary both die before receiving in annuity payments the full amount of the judge’s accumulated contributions at retirement, the balance of the judge’s accumulated contributions shall be paid to the beneficiary designated by the judge. If the judge had no designated beneficiary in effect on the date of death, payment shall be made to the judge’s estate.

SEC. 21.

 Section 75071.5 of the Government Code is amended to read:

75071.5.
 This section shall apply to any judge who retires on or after January 1, 2018.
(a) The unmodified allowance consists of the right to have the maximum retirement allowance paid to the judge for his or her life alone. There is no continuing allowance to a beneficiary and there is no return of unused accumulated contributions after the death of the judge.
(b) The Return of Remaining Contributions Option 1 consists of the right to have a retirement allowance paid to the judge until his or her death and, if he or she dies before he or she receives in annuity payments the amount of his or her accumulated contributions at retirement, to have the balance at death paid to his or her designated beneficiary or estate.
(c) (1) The 100 Percent Beneficiary Option 2 consists of the right to have a retirement allowance paid to the judge until his or her death, and thereafter to have the same monthly allowance paid to his or her designated beneficiary for life; provided that with respect to a judge subject to Section 75077 or 75096.3 at retirement, the beneficiary shall receive a monthly allowance equal to that portion of the judge’s monthly allowance that exceeds the amount of the allowance deemed payable to the judge’s survivor.
(2) Upon the death of both the judge and the designated beneficiary, any remaining balance of the judge’s accumulated contributions at retirement not used to fund the allowances paid to the judge and the designated beneficiary will be paid in a lump sum to the secondary beneficiary or beneficiaries designated by the judge.
(d) (1) The 100 Percent Beneficiary Option 2 with Benefit Allowance Increase consists of the right to have a retirement allowance paid to the judge until his or her death and thereafter to have the same monthly allowance paid to his or her designated beneficiary for life; provided that with respect to a judge subject to Section 75077 or 75096.3 at retirement, the beneficiary shall receive a monthly allowance equal to that portion of the judge’s monthly allowance that exceeds the amount of the allowance deemed payable to the judge’s survivor.
(2) If the judge’s designated beneficiary predeceases the judge and the judge elected this optional settlement, the judge’s allowance shall be adjusted effective the first day of the month following the death of the beneficiary to reflect the benefit that would have been paid had the judge not elected an optional settlement.
(3) If the marriage of a retired judge  designated beneficiary is a spouse and the marriage  is dissolved or annulled or if the retired judge and his or her beneficiary spouse are legally separated and  a legal separation filed, and  the judgment dividing their the  community property between the judge and the beneficiary  awards the total interest in this system to the retired judge, and the retired judge elected this optional settlement, the retired  or the marriage is annulled and confirmed by a court, the retired  judge’s allowance shall be adjusted effective the first day of the month following the filing of the judgment with the board to reflect the benefit that would have been paid had the judge not elected an optional settlement.
(e) (1) The 50 Percent Beneficiary Option 3 consists of the right to have a retirement allowance paid to the judge until his or her death, and thereafter to have one-half of the monthly allowance paid to his or her designated beneficiary for life, provided that, with respect to a judge subject to Section 75077 or 75096.3 at retirement, the beneficiary shall receive a monthly allowance equal to one-half of that portion of the judge’s allowance that exceeds the amount of the allowance deemed payable to the judge’s survivor.
(2) Upon the death of both the judge and the designated beneficiary, any remaining balance of the judge’s accumulated contributions at retirement not used to fund the allowances paid to the judge and the designated beneficiary will be paid in a lump sum to the secondary beneficiary or beneficiaries designated by the judge.
(f) (1) The 50 Percent Beneficiary Option 3 with Benefit Allowance Increase consists of the right to have a retirement allowance paid to the judge until his or her death and thereafter to have one-half of the monthly allowance paid to his or her designated beneficiary for life; provided that with respect to a judge subject to Section 75077 or 75096.3 at retirement, the beneficiary shall receive a monthly allowance equal to one-half of that portion of the judge’s monthly allowance that exceeds the amount of the allowance deemed payable to the judge’s survivor.
(2) If the judge’s designated beneficiary predeceases the judge and the judge elected this optional settlement, the judge’s allowance shall be adjusted effective the first day of the month following the death of the beneficiary to reflect the benefit that would have been paid had the judge not elected an optional settlement.
(3) If the marriage of a retired judge  designated beneficiary is a spouse and the marriage  is dissolved or annulled or if the retired judge and his or her beneficiary spouse are legally separated and  a legal separation filed, and  the judgment dividing their the  community property between the judge and the beneficiary  awards the total interest in this system to the retired judge, and the retired judge elected this optional settlement, the retired  or the marriage is annulled and confirmed by a court, the retired  judge’s allowance shall be adjusted effective the first day of the month following the filing of the judgment with the board to reflect the benefit that would have been paid had the judge not elected an optional settlement.
(g) The Flexible Beneficiary Option 4 consists of the right to have a retirement allowance paid to a judge until his or her death, and thereafter to have a monthly allowance paid to his or her designated beneficiary or beneficiaries for life. Subject to Section 75070.5, the judge may select the monthly allowance payable to the designated beneficiary or beneficiaries from the options below:
(1) Specific Dollar Amount to a Beneficiary or Beneficiaries. The judge may specify that upon his or her death after retirement, a monthly allowance in an amount determined by the judge be paid to a designated beneficiary or beneficiaries for life.
(2) Specific Percentage to a Beneficiary or Beneficiaries. The judge may specify that upon his or her death after retirement, a monthly allowance in an amount equivalent to a specified percentage of the judge’s allowance be paid to a designated beneficiary or beneficiaries for life.

SEC. 22.

 Section 75571 of the Government Code is amended to read:

75571.
 This section shall apply to any judge who retires on or before December 31, 2017.
(a) Optional settlement one consists of the right to have a retirement allowance paid to the judge until his or her death and if he or she dies before he or she receives the amount of his or her accumulated contributions at retirement, to have the balance at death paid to his or her surviving spouse or estate.
(b) (1) Optional settlement two consists of the right to have a retirement allowance paid to the judge until his or her death and thereafter to his or her surviving spouse for life.
(2) If the judge’s spouse predeceases the judge and the judge elected this optional settlement to be effective on or after January 1, 2002, the judge’s allowance shall be adjusted effective the first day of the month following the death of the spouse to reflect the benefit that would have been paid had the judge not elected an optional settlement.
(3) If the marriage of a retired judge is dissolved or annulled or if the retired judge and his or her spouse are legally separated and the judgment dividing their community property  a legal separation is filed, and the judgment dividing the community property between the judge and the surviving spouse  awards the total interest in this system to the retired judge, and  or the marriage is annulled and confirmed by a court, and  the retired judge elected this optional settlement to be effective on or after January 1, 2002, the retired judge’s allowance shall be adjusted effective the first day of the month following the filing of the judgment with the board to reflect the benefit that would have been paid had the judge not elected an optional settlement.
(c) (1) Optional settlement three consists of the right to have a retirement allowance paid to the judge until his or her death, and thereafter to have one-half of his or her retirement allowance paid to his or her surviving spouse for life.
(2) If the judge’s spouse predeceases the judge and the judge elected this optional settlement to be effective on or after January 1, 2002, the judge’s allowance shall be adjusted effective the first day of the month following the death of the spouse to reflect the benefit that would have been paid had the judge not elected an optional settlement.
(3) If the marriage of a retired judge is dissolved or annulled or if the retired judge and his or her spouse are legally separated and the judgment dividing their community property  a legal separation is filed, and the judgment dividing the community property between the judge and the surviving spouse  awards the total interest in this system to the retired judge, and  or the marriage is annulled and confirmed by a court, and  the retired judge elected this optional settlement to be effective on or after January 1, 2002, the retired judge’s allowance shall be adjusted effective the first day of the month following the filing of the judgment with the board to reflect the benefit that would have been paid had the judge not elected an optional settlement.
(d) Optional settlement four consists of other benefits that are the actuarial equivalent of his or her retirement allowance, that he or she may select subject to the approval of the board.

SEC. 23.

 Section 75571.5 of the Government Code is amended to read:

75571.5.
 This section shall apply to any judge who retires on or after January 1, 2018.
(a) The unmodified allowance consists of the right to have the maximum retirement allowance paid to the judge for his or her life alone. A continuing allowance to the surviving spouse, other than the benefit provided in subdivision (b) of Section 75590, is not provided and there is not a return of unused accumulated contributions after the death of the judge.
(b) The Return of Remaining Contributions Option 1 consists of the right to have a retirement allowance paid to the judge for his or her life alone and if he or she dies before he or she receives in annuity payments the amount of his or her accumulated contributions at retirement, to have the balance at death paid to his or her surviving spouse, or if none, to his or her estate.
(c) (1) The 100 Percent Beneficiary Option 2 consists of the right to have a retirement allowance paid to the judge until his or her death and thereafter to have the same monthly allowance paid to his or her surviving spouse for life; provided that with respect to a judge subject to subdivision (b) of Section 75590, the surviving spouse shall receive that portion of the judge’s monthly allowance that exceeds the amount of the allowance deemed payable pursuant to subdivision (b) of Section 75590.
(2) Upon the death of both the judge and the surviving spouse, any remaining balance of the judge’s accumulated contributions at retirement not used to fund the allowances paid to the judge and the surviving spouse pursuant to this subdivision will be paid in a lump sum to the estate of the deceased.
(d) (1) The 100 Percent Beneficiary Option 2 with Benefit Allowance Increase consists of the right to have a retirement allowance paid to the judge until his or her death and thereafter to have the same monthly allowance paid to his or her surviving spouse for life; provided that with respect to a judge subject to subdivision (b) of Section 75590, the surviving spouse shall receive that portion of the judge’s monthly allowance that exceeds the amount of the allowance deemed payable pursuant to subdivision (b) of Section 75590.
(2) If the judge’s spouse predeceases the judge and the judge elected this optional settlement, the judge’s allowance shall be adjusted effective the first day of the month following the death of the spouse to reflect the benefit that would have been paid had the judge not elected an optional settlement.
(3) If the marriage of a retired judge is dissolved or annulled or if the retired judge and his or her spouse are legally separated and the judgment dividing their community property  a legal separation filed, and the judgment dividing the community property between the judge and the surviving spouse  awards the total interest in this system to the retired judge, and the retired judge elected this optional settlement, the retired  or the marriage is annulled and confirmed by a court, the retired  judge’s allowance shall be adjusted effective the first day of the month following the filing of the judgment with the board to reflect the benefit that would have been paid had the judge not elected an optional settlement.
(e) (1) The 50 Percent Beneficiary Option 3 consists of the right to have a retirement allowance paid to the judge until his or her death and thereafter to have one-half of the monthly allowance paid to his or her surviving spouse for life; provided that with respect to a judge subject to subdivision (b) of Section 75590, the surviving spouse shall receive one-half of that portion of the judge’s monthly allowance that exceeds the amount of the allowance deemed payable pursuant to subdivision (b) of Section 75590.
(2) Upon the death of both the judge and the surviving spouse, any remaining balance of the judge’s accumulated contributions at retirement not used to fund the allowances paid to the judge and the surviving spouse pursuant to this subdivision will be paid in a lump sum to the estate of the deceased.
(f) (1) The 50 Percent Beneficiary Option 3 with Benefit Allowance Increase consists of the right to have a retirement allowance paid to the judge until his or her death and thereafter to have one-half of the monthly allowance paid to his or her surviving spouse for life; provided that with respect to a judge subject to subdivision (b) of Section 75590, the surviving spouse shall receive one-half of that portion of the judge’s monthly allowance that exceeds the amount of the allowance deemed payable pursuant to subdivision (b) of Section 75590.
(2) If the judge’s spouse predeceases the judge and the judge elected this optional settlement, the judge’s allowance shall be adjusted effective the first day of the month following the death of the spouse to reflect the benefit that would have been paid had the judge not elected an optional settlement.
(3) If the marriage of a retired judge is dissolved or annulled or if the retired judge and his or her spouse are legally separated and the judgment dividing their community property  a legal separation filed, and the judgment dividing the community property between the judge and the surviving spouse  awards the total interest in this system to the retired judge, and the retired judge elected this optional settlement, the retired  or the marriage is annulled and confirmed by a court, the retired  judge’s allowance shall be adjusted effective the first day of the month following the filing of the judgment with the board to reflect the benefit that would have been paid had the judge not elected an optional settlement.
(g) The Flexible Beneficiary Option 4 consists of the right to have a retirement allowance paid to a judge until his or her death, and thereafter to have a monthly allowance paid to his or her surviving spouse for life. Subject to Section 75570.5, the judge may select the monthly allowance payable to the surviving spouse from the options below:
(1) Specific Dollar Amount to a Surviving Spouse. The judge may specify that upon his or her death after retirement, a monthly allowance in an amount determined by the judge be paid to his or her surviving spouse for life.
(2) Specific Percentage to a Surviving Spouse. The judge may specify that upon his or her death after retirement, a monthly allowance in an amount equivalent to a specified percentage of the judge’s allowance be paid to his or her surviving spouse for life.