Article 4 - Preretirement Group Term Life Insurance

California Government Code — §§ 21600-21605

Sections (6)

Repealed and added by Stats. 1995, Ch. 379, Sec. 2. Effective January 1, 1996.

(a)The purpose of this article is to provide group term life insurance benefits for members of this system who are employees of the state or the university. Notwithstanding any other provision of this part, this article shall not apply to a school member, or any other local member.

(b)If this section is in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, 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, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.

§ 21601

Added by Stats. 1995, Ch. 379, Sec. 2. Effective January 1, 1996.

A separate account shall be established in the retirement fund to be known as the Insurance Benefits Account. Moneys in the account shall be expended for the sole purpose of payment of insurance benefits under this article. Interest shall be credited to the account at the annual rate and in the same manner as interest is credited to employer and employee contributions in the retirement fund.

§ 21602

Added by Stats. 1995, Ch. 379, Sec. 2. Effective January 1, 1996.

(a)The board shall transfer annually on July 1 during any period of insurance from accumulated state contributions on account of current service to the Insurance Benefits Account the amount estimated to be necessary for payment during that fiscal year, of the portion of the insurance benefit prescribed in subdivision (b) of Section 21605 plus any deficiency in the transfer for the previous fiscal year for that purpose.

§ 21603

Added by Stats. 1995, Ch. 379, Sec. 2. Effective January 1, 1996.

An insured member, for purposes of this part, is a member of this system who is a state or university employee and whose death occurs under conditions specified in Section 21604.

§ 21604

Amended by Stats. 2016, Ch. 199, Sec. 31. (AB 2404) Effective January 1, 2017.

The insurance benefit shall be paid upon death of an insured member of this system to the beneficiary entitled to receive the basic or special death benefit if all of the following conditions occur:

(a)Death occurs during any of the following:

(1)While in state service.

(2)While absent from state service on military service or on approved leave of absence.

(3)Within four months of discontinuance of state service.

(4)While physically or mentally

incapacitated for performance of duty continuously from discontinuance of state service.

(b)If either of the following exists:

(1)Death occurs while a member and before the effective date of retirement.

(2)If the optional settlement in Section 21456, 21457, 21459, 21475, 21475.5, 21476, 21476.5, or 21477, or an optional settlement in Section 21458, involving payment of an allowance throughout the life of the beneficiary, has not been elected and if an allowance under Section 21624, 21627, 21629, or 21630 is not payable, and death occurs on or after the effective date of retirement and before the mailing of a retirement allowance warrant.

(c)Death occurs during a period of insurance.

(d)Death occurs under circumstances other than those described in subparagraph (F) of paragraph (1) of subdivision (a) of Section 21530.

If this section is in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, 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, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.

§ 21605

Added by Stats. 1995, Ch. 379, Sec. 2. Effective January 1, 1996.

The insurance benefit shall be the sum of the following amounts:

(a)Five thousand dollars ($5,000).

(b)An amount equal to 50 percent of the annual compensation earnable by the deceased member during the 12 months immediately preceding his or her death or the compensation earnable by the member at the time of becoming eligible for benefits pursuant to Section 21160 if higher, or if a member also has state service in an employment in which employees are ineligible to be insured members, a proportionate part of that amount in the ratio of eligible service to total service. No amount shall be paid under this subdivision if the member is eligible for service retirement or the member is subject to benefits pursuant to Section 21547.

If this section is in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, 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, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.