Article 2 - Second Tier Retirement—State

California Government Code — §§ 21070-21077

Sections (10)

Amended by Stats. 2013, Ch. 526, Sec. 19. (SB 220) Effective January 1, 2014. Pursuant to subd. (d), section is conditionally operative as prescribed in Section 21251.13.

(a)Notwithstanding any other provision of this article, a person who, on or after January 1, 2000, becomes a state miscellaneous or state industrial member of the system because the person (1) is first employed by the state, (2) returns to employment with the state from a break in service of more than 90 days, or (3) returns to employment with the state after ceasing to be a member pursuant to Section 20340 or 21075, shall be subject to the benefits provided by Section 21354.1, unless the person elects within 180 days of membership as a state miscellaneous or state industrial member to be subject to the Second Tier benefits provided for in Section 21076 or 21076.5, as applicable. This section shall only apply to state miscellaneous and state industrial members who are (1) excluded from

the definition of state employee in subdivision (c) of Section 3513, (2) employed by the executive branch of government and are not members of the civil service, or (3) included in the definition of state employee in subdivision (c) of Section 3513.

(b)The effective date of the election shall be the first day of the month following the date the election is received by the system and shall be applicable to state service rendered on and after that date. Any election filed with the board pursuant to this section shall also be signed by the spouse of the member.

(c)A member who makes an election authorized by this section shall not be precluded from making a subsequent election pursuant to Section 21073.7 to be subject to the benefits provided by Section 21354.1.

(d)Operation and application of this section are

subject to the limitations set forth in Section 21251.13.

(e)For a member subject to Section 20281.5, the 180-day election period shall not commence until the first day of the first pay period commencing 24 months after becoming a member of the system.

§ 21070.6

Amended by Stats. 2013, Ch. 526, Sec. 20. (SB 220) Effective January 1, 2014. Pursuant to subd. (b), section is conditionally operative as prescribed in Section 21251.13.

(a)A member who is subject to Section 21076, 21076.5, or 21077 may be credited at no cost with all previous state miscellaneous or state industrial service eligible to be credited under Second Tier benefits. A member who is entitled to service credit under this section shall apply for and identify time periods for that service to the board.

(b)Operation and application of this section are subject to the limitations set forth in Section 21251.13.

(c)This section shall only apply to service credit associated with employment periods prior to July 1, 2013.

§ 21070.7

Amended by Stats. 2013, Ch. 526, Sec. 21. (SB 220) Effective January 1, 2014.

Notwithstanding any other provision of this part, Sections 21076, 21076.5, and 21077 shall not apply to service with the California National Guard or service as a National Guard member regardless of any prior membership status or previous election made.

§ 21073.1

Amended by Stats. 2018, Ch. 168, Sec. 5. (AB 2196) Effective January 1, 2019. Pursuant to subd. (d), this section is conditionally operative as prescribed in Section 21251.13.

(a)Effective January 1, 2000, a member who elects to receive service credit under Section 21354.1, as authorized by Section 21073.7, for time during which the member received service credit subject to Section 21076 or 21077, shall deposit an amount equal to any accumulated contributions the member withdrew pursuant to Section 20737, plus the interest that would have been credited to the member’s account had the contributions not been withdrawn, and any contributions the member would have made, plus an amount equal to the interest that would have been credited to those contributions, had the member not been subject to Section 21076 or 21077. This deposit shall be made in a lump sum or by installments, with interest through the completion of payments, over that period and subject to

minimum payment amounts as may be prescribed by regulations of the board. Alternatively, this deposit requirement may be satisfied by an election to reduce the member’s allowance by the actuarial equivalent of any balance remaining unpaid by the member at the time of retirement or preretirement death.

(b)Any unpaid balance with respect to an election with an effective date on or after January 1, 2020, shall become due and payable at the time of retirement or preretirement death. The member, survivor, or beneficiary shall have his or her allowance reduced by the actuarial equivalent of any balance remaining unpaid by the member.

(c)The board, in addition to its general rulemaking authority under Section 20121, may adopt regulations that implement this section. Those regulations shall be exempt from review by the Office of Administrative Law. However, the board shall transmit

those regulations to the Office of Administrative Law for filing with the Secretary of State and publication in the California Code of Regulations.

(d)The amendments to this section enacted during the first year of the 1999−2000 Regular Session are subject to the limitations set forth in Section 21251.13.

§ 21073.7

Amended by Stats. 2001, Ch. 21, Sec. 10. Effective June 25, 2001. Amendment applicable from January 1, 2000, by Sec. 37 of Ch. 21. Pursuant to subd. (d), this section is conditionally operative as prescribed in Section 21251.13.

(a)A member subject to the Second Tier benefits provided in Section 21076 or 21077 who is employed by the state on or after January 1, 2000, may make an irrevocable election, to be filed with the board, to be subject to the First Tier benefits provided in Section 21354.1 and to make the contributions specified in Section 20677. An election to be subject to Section 21354.1 may be made at any time prior to

retirement and shall be signed by the member’s spouse. An election shall be effective the first day of the month following the date the election is received by the system and shall be applicable to state service rendered on and after that date. However an election made by a member who retires prior to or on the first day of the month following the system’s receipt of the election shall be effective one day prior to the effective date of the member’s retirement.

(b)A member who is employed by the state on or after January 1, 2000, with past service credited under the Second Tier may make an irrevocable election, at any time prior to retirement, to have his or her past Second Tier service credited under Section 21354.1 by making contributions specified in Section 21073.1. This subdivision shall not apply to a Second Tier member eligible to make the election provided in subdivision (a) until after the effective date of that election.

(c)A member subject to modified First Tier benefits pursuant to Section 21353.5 shall become subject to Section 21353 or 21354.1, as applicable, and make contributions as specified in Section 20677. The member’s past service and contributions credited as modified First Tier under Section 21353.5 shall be converted to First Tier service and contributions and shall be subject to Section 21353 or 21354.1, as applicable. Contributions previously credited as modified First Tier and withdrawn by the member may be redeposited under the conditions specified in Section 20750, with the service credit and contributions subject to Section 21353 or 21354.1, as applicable.

(d)Operation and application of this section is subject to the limitations set forth in Section 21251.13.

§ 21074

Amended by Stats. 2014, Ch. 237, Sec. 4. (AB 2472) Effective January 1, 2015.

(a)A state member who became subject to the Second Tier shall be retired for service upon his or her written application to the board if he or she has attained age 55 and is credited with 10 years of state service.

(b)A state member who elected coverage under Section 21077, shall be retired for service upon his or her written application to the board if he or she has attained 50 years of age if subject to Section 21076 and is credited with five years of state service. No benefit shall be payable for service rendered under the Second Tier retirement formula unless the member has rendered 10 years of state service except as provided in subdivision (c).

(c)Notwithstanding subdivision (a) or (b), a state member in the Second Tier who is credited with five years of state service prior to January 1, 1985, may retire with less than 10 years of state service upon his or her written application to the board if he or she has attained age 50.

§ 21075

Amended by Stats. 2014, Ch. 237, Sec. 5. (AB 2472) Effective January 1, 2015.

Notwithstanding Section 20340, a person who is subject to Section 21076, 21076.5, or Section 21077 ceases to be a member if he or she has less than 10 years of service credit and no accumulated contributions in the retirement fund at the time of termination of service, except a member who had five years of credited service prior to January 1, 1985.

§ 21076

Amended by Stats. 2012, Ch. 296, Sec. 25. (AB 340) Effective January 1, 2013.

(a)The service retirement allowance for a state miscellaneous or state industrial member who has elected the benefits of this section is a pension equal to the fraction of one-hundredth of the member’s final compensation set forth opposite the member’s age at retirement, taken to the preceding completed quarter year in the following table, multiplied by the member’s number of years of state miscellaneous service:

(b)This section shall not apply to a National Guard member.

(c)This section shall not apply to anyone who first becomes a member on or after January 1, 2013.

§ 21076.5

Added by Stats. 2012, Ch. 296, Sec. 26. (AB 340) Effective January 1, 2013.

(a)The service retirement allowance for a state miscellaneous or state industrial member who first becomes a member on or after January 1, 2013, who has elected the benefits of this section is a pension equal to the fraction of one-hundredth of the member’s final compensation set forth opposite the member’s age at retirement, taken to the preceding completed quarter year in the following table, multiplied by the member’s number of years of state miscellaneous service:

(b)This section shall not apply to a National Guard member.

§ 21077

Amended by Stats. 2007, Ch. 355, Sec. 24. Effective January 1, 2008.

(a)The service retirement allowance for a state miscellaneous or state industrial member who elects to be subject to this section shall be: the sum of the allowance for service rendered under the Second Tier retirement formula, computed pursuant to Section 21076, added to the allowance for service rendered as a state miscellaneous or state industrial member covered under the First Tier formula, computed pursuant to Section 21353 or 21354.1, as applicable.

(b)This section

shall not apply to a National Guard member.