2005 California Education Code Sections 24300-24313 CHAPTER 28. OPTIONS

24300.  (a) A member may, prior to the effective date of the member'
s retirement, elect an option pursuant to this part that would
provide an actuarially modified retirement allowance payable
throughout the life of the member and the member's option
beneficiary, as follows:
   (1) Option 2.  The modified retirement allowance shall be paid to
the retired member.  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.
   (2) Option 3.  The modified retirement allowance shall be paid to
the retired member.  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.  If the option beneficiary predeceases the retired member,
the retired member may designate a new option beneficiary.  The
effective date of the new designation shall be six months following
the date notification is received by the board, so long as both the
retired member and the designated option beneficiary are then living.
  Notification shall be on a properly executed form for the new
designation.  The selection of the new option beneficiary under this
subdivision is subject to an actuarial modification of the unmodified
retirement allowance.  A retired member may not designate any new
option beneficiary that would result in any additional liability to
the fund.
   (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.  If the option beneficiary predeceases the retired
member, the retired member may designate a new option beneficiary.
The effective date of the new designation 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 be on a properly executed form for
the new designation.  The selection of the new option beneficiary
under this subdivision is subject to an actuarial modification of the
unmodified retirement allowance.  A retired member may not designate
any new option beneficiary that would result in any additional
liability to the fund.
   (7) Option 8.  (A) 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
select an option that the member is authorized to elect subject to
subdivision (e) 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.
   (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 under this option, the aggregate
of which may not exceed 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 selected for the spouse or former spouse and the
percentage of his or her unmodified allowance to be modified under
the option, consistent with the court order.  The percentage of the
member's unmodified allowance that is not modified under 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, may not exceed
100 percent.
   (b) For purposes of this section, the member shall designate an
option beneficiary on a form prescribed by the system, which shall be
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) 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 selection 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.
   (e) 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.
   (f) 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.
24300.5.  An option beneficiary who is receiving an allowance
pursuant to the option elected by the member may designate a
beneficiary to receive any allowance that has accrued and is unpaid,
and any remaining balance of the retired member's accumulated
retirement contributions payable pursuant to Section 23881, upon the
death of the option beneficiary.
24300.6.  (a) Any retired member who was unmarried and not in a
registered domestic partnership on the effective date of retirement
who did not elect an option pursuant to Section 24300, and who
thereafter marries or registers in a domestic partnership, may, after
the effective date of the member's retirement under this part, elect
an option described in paragraphs (1) to (6), inclusive, of
subdivision (a) of Section 24300, naming his or her new spouse or
registered domestic partner as the option beneficiary, subject to all
of the following:
   (1) The retired member shall have been married or registered in a
domestic partnership for at least one year prior to making the
election of the option.
   (2) The retired member shall notify the board, in writing on a
form provided by the system, of the election of the option and the
designation of the member's new spouse or registered domestic partner
as the option beneficiary.
   (3) The election of an option under this section is subject to
approval by the board. A retired member may not elect a joint and
survivor option that would result in any additional liability to the
retirement fund. A retired member may not elect Option 8.
   (4) The election shall be effective six months after the date the
notification is received by the board, provided that both the retired
member and the retired member's designated spouse or registered
domestic partner are then living.
   (b) The election of the option and designation of the option
beneficiary under this section shall result in an actuarial
modification of the member's retirement allowance that shall be
payable through the life of the member and the member's new spouse or
registered domestic partner. Modification of the member's retirement
allowance pursuant to this section shall be based on the ages of the
retired member and the retired member's new spouse or registered
domestic partner as of the effective date of the election.
   (c) This section shall be operative July 1, 2001.
24301.  (a) A member who has filed an application under this part
for a disability retirement pursuant to Chapter 26 (commencing with
Section 24100) may elect, as provided in Section 24300 to receive an
actuarially modified disability retirement allowance.  After receipt
of a disability retirement application from a member, the board shall
mail an acknowledgment notice to the member.  A 30-day period shall
commence with the mailing of the acknowledgment, during which time
the member may change the option election made on the disability
retirement application.
   (b) The option shall become effective on the effective date of the
disability retirement allowance.  The modification of the disability
retirement allowance under the option elected shall be based on the
ages of the retired member and the designated option beneficiary as
of the effective date of the disability retirement.  The modification
shall be applicable only to the disability retirement allowance
payable pursuant to subdivision (a) of Section 24106.
   (c) The elected option may not be revoked or changed after the
later of the effective date of the disability retirement allowance or
30 days after the mailing of the acknowledgment notice pursuant to
this section.
   (d) If a member dies prior to electing an unmodified allowance or
an option, the death benefits shall be payable under Chapter 23
(commencing with Section 23850), regardless of whether the disability
retirement application is or would have been approved.
24302.  Upon termination of a service retirement allowance pursuant
to Section 24208, any option elected pursuant to Section 24300 and in
effect at the time of reinstatement shall be considered to be a
preretirement election of an option elected as of the effective date
of that retirement and shall be subject to the same provisions as an
option elected under Section 24307.
24303.  Termination of the service retirement allowance pursuant to
Section 24208 shall not cancel an option elected under the provisions
of Section 24300 or 24307.  The option shall remain in effect
unchanged and shall be reapplied to the allowance payable upon the
subsequent service retirement.
24304.  Upon termination of a disability retirement allowance
pursuant to Section 24117, any option elected at the time of
retirement pursuant to Section 24301 shall be void as of the
effective date of the reinstatement. The preretirement election of
option subsequent to termination of the allowance pursuant to Section
24117 shall be subject to the following:
   (a) A member may not make a preretirement election of option
pursuant to Section 24307 prior to becoming qualified to make
application for service retirement under Section 24201 or Section
24203.
   (b) A member who was receiving an unmodified disability retirement
allowance prior to termination of the allowance may not make a
preretirement election of option earlier than six months following
the date on which the disability retirement allowance was terminated
pursuant to Section 24117.
   (c) A member who has elected an option pursuant to Section 24301,
and is otherwise eligible to make a preretirement election of an
option, may make the election anytime during the six months following
the date on which the disability retirement allowance was terminated
pursuant to Section 24117.  The member shall elect the same option
and designate the same option beneficiary as designated under Section
24301 when making the election during the six-month period following
the date the disability retirement allowance was terminated.
24305.  (a) An option elected under Section 24300 may be canceled by
a retired member if the option beneficiary is the retired member's
spouse or former spouse and a final decree of dissolution of marriage
or a judgment of nullity has been entered or an order of separate
maintenance has been made on or after January 1, 1978, by a court of
competent jurisdiction.  A retired member may cancel the option
before or after issuance of the first retirement allowance payment.
   (b) The retired member shall notify the board in writing of
cancellation of the option.  Notification shall not be earlier than
the effective date of the decree, judgment, or order and shall
include a certified copy of the final decree of dissolution, or
judgment of nullity, or an order of separate maintenance, and any
property settlement agreement.
   (c) Upon notification to the board, the retired member may elect
(1) to receive the unmodified retirement allowance from the date of
receipt of the notification; or (2) a new joint and survivor option
under Section 24300 and may designate a new option beneficiary.
Modification of the retirement allowance because of the newly elected
option or newly designated beneficiary shall be based on the ages of
the retired member and the new option beneficiary as of the
effective date of the new option.  The election of a new joint and
survivor option or the designation of a new option beneficiary shall
be consistent with the final decree of dissolution, judgment of
nullity, order of separate maintenance, or property settlement
agreement, and shall not result in any additional liability to the
Teachers' Retirement Fund.  The effective date of the change shall be
the date notification is received by the board.
24305.3.  (a) A member who is receiving a joint and survivor annuity
under the Defined Benefit Supplement Program may change the annuity
or the annuity beneficiary elected pursuant to Section 25011 or 25018
provided all of the following conditions are met:
   (1) The annuity beneficiary is the member's spouse or former
spouse.
   (2) A final decree of dissolution of marriage is granted, or a
judgment of nullity is entered, or an order of separate maintenance
is made by a court of competent jurisdiction with respect to the
member and the spouse or former spouse on or after the beginning of
the initial plan year designated by the board pursuant to Section
22156.05.
   (3) The change is consistent with the final decree of dissolution,
judgment of nullity, or order of separate maintenance.
   (b) A member may change the annuity pursuant to subdivision (a)
before or after the first annuity payment is issued.
   (c) The member shall notify the system in writing of the change in
the annuity. The notification shall not be earlier than the
effective date of the final decree of dissolution, judgment of
nullity, or order of separate maintenance and shall include a
certified copy of the final decree of dissolution, judgment of
nullity, or order of separate maintenance, and any property
settlement agreement.
   (d) A change in the annuity or annuity beneficiary or both shall
become effective on the date the notification of change is received
by the system.  The annuity amount payable to the member upon the
change elected by the member shall be determined as of the effective
date of the change and shall be the actuarial equivalent of the
lump-sum that would otherwise be payable to the member as of the date
of the change. If the member elects a joint and survivor annuity,
the amount payable under the annuity shall be modified consistent
with the annuity elected by the member.
24305.3.  (a) A member who is receiving a joint and survivor annuity
under the Defined Benefit Supplement Program may change the annuity
or the annuity beneficiary elected pursuant to Section 25011 or 25018
provided all of the following conditions are met:
   (1) The annuity beneficiary is the member's spouse or former
spouse.
   (2) A final decree of dissolution of marriage is granted, or a
judgment of nullity is entered, or an order of separate maintenance
is made by a court of competent jurisdiction with respect to the
member and the spouse or former spouse on or after the beginning of
the initial plan year designated by the board pursuant to Section
22156.05.
   (3) The change is consistent with the final decree of dissolution,
judgment of nullity, or order of separate maintenance.
   (b) A member may change the annuity pursuant to subdivision (a)
before or after the first annuity payment is issued.
   (c) The member shall notify the system in writing of the change in
the annuity.  The notification shall not be earlier than the
effective date of the final decree of dissolution, judgment of
nullity, or order of separate maintenance and shall include a
certified copy of the final decree of dissolution, judgment of
nullity, or order of separate maintenance, and any property
settlement agreement.
   (d) A change in the annuity or annuity beneficiary or both shall
become effective on the date the notification of change is received
by the system.  The annuity amount payable to the member upon the
change elected by the member shall be determined as of the effective
date of the change and shall be the actuarial equivalent of the lump
sum that would otherwise be payable to the member as of the date of
the change. If the member elects a joint and survivor annuity, the
amount payable under the annuity shall be modified consistent with
the annuity elected by the member.
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.
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.
24306.5.  (a) A member who retired for service under Option 2 or
Option 3 with an effective date prior to January 1, 1991, may elect
to change Option 2 to Option 6 or Option 3 to Option 7 under all of
the following conditions:
   (1) The election is made during the six-month period commencing
July 1, 1994, and ending December 31, 1994.
   (2) The same beneficiary under Option 2 or Option 3 is named as
beneficiary under Option 6 or Option 7.
   (3) The change in options is consistent with Sections 22453 and
24305.
   (4) The option beneficiary is not afflicted with any known
terminal illness and the retired member shall state under penalty of
perjury that to the best of his or her knowledge the option
beneficiary is not afflicted with any known terminal illness.
   (5) The option beneficiary has not predeceased the retired member
as of the effective date of the change in options.
   (b) The change in options shall be effective on the date the
election is signed, provided that the election is received at the
system's headquarters office, as established pursuant to Section
22375, within 30 days after the date of the signature.
   (c) If an election to change options is made pursuant to this
section, the modified allowance shall be reduced in a manner
determined by the board to ensure that no additional liability shall
be incurred by the plan pursuant to this section.
24306.7.  (a) Any member who retired for service under Option 4 or
Option 5 with an effective date prior to January 1, 1991, may elect
to change Option 4 to Option 6 or Option 5 to Option 7 if all of the
following conditions are met:
   (1) The election is made during the three-month period commencing
January 1, 1999, and ending March 31, 1999.
   (2) The same beneficiary under Option 4 or Option 5 is named as
beneficiary under Option 6 or Option 7.
   (3) The change in options is consistent with Sections 22453 and
24305.
   (4) The option beneficiary is not afflicted with any known
terminal illness.
   (5) The option beneficiary has not predeceased the retired member
as of the effective date of the change in option.
   (6) The election to change the option under this section is
received in the system's office in Sacramento at least 30 days prior
to the death of the option beneficiary.
   (b) Failure to satisfy all of the conditions in subdivision (a)
shall render the change of election invalid.
   (c) The change in options under this section shall be effective on
the date the election is signed, provided all the conditions set
forth in subdivision (a) are satisfied and the election is received
at the system's headquarters office, as established pursuant to
Section 22375, within 30 days after the date of the signature.
   (d) The selection of a new joint and survivor option under this
section is subject to a further 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.
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 without right of revocation or
change after the effective date of retirement, except as provided in
this part. The preretirement election of an option shall become
effective as of the date of the member's signature on a properly
executed form prescribed by the system, subject to the following
requirements:
   (1) The form includes the signature of the member's spouse or
registered domestic partner, if applicable, the signature is dated,
and the date of the signature is within 30 days of the member's
signature.
   (2) The date the form is received at the system's headquarters
office, as established pursuant to Section 22375, is within 30 days
of the date of the member's signature and within 30 days of the date
of the spouse or registered domestic partner's signature, if
applicable.
   (b) A member who makes a preretirement election of an Option 2,
Option 3, Option 4, Option 5, Option 6, or Option 7 may subsequently
make a preretirement election of Option 8. The member may retain the
same option and the same option beneficiary as named in the prior
preretirement election, as an option under Option 8.
   (c) Upon the member's death prior to the 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
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 under
the option elected shall be based on the ages of the member and the
beneficiary designated under the option, as of the date the election
was signed.
   (f) A member who terminates the service retirement allowance
pursuant to Section 24208 shall not be eligible to file a
preretirement election of an option until one calendar year elapses
from the date the allowance is terminated.
   (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.
24307.5.  Upon retirement for service, the member who filed a
preretirement election of an option under Section 24307 shall have
his or her allowance modified by the greater of the option factor as
of the effective date of the preretirement election, or the option
factor at the time the member's retirement became effective.
24308.  (a) The election of an option as provided in Section 24307
shall preclude the payment of a family allowance to any beneficiary
under this part.
   (b) The preretirement election of an option made by the member
pursuant to Section 24307 shall be voided by the board as of the
effective date of an approved disability retirement under this part.
Members receiving a disability retirement allowance pursuant to
Chapter 26 (commencing with Section 24100) may not file an election
of option as provided in Section 24307.
   (c) The election of an option as provided in Section 24307 shall
preclude the payment of a survivor benefit allowance pursuant to
Chapter 23 (commencing with Section 23850) and shall preclude the
payment of the remaining balance of the member's accumulated
retirement contributions prior to the death of the option
beneficiary.
24309.  (a) A member may cancel the election of an option made
pursuant to Section 24307, providing written cancellation is received
by the board on or before the day preceding the effective date of
retirement under this part or during the period between termination
of the retirement allowance pursuant to Section 24208 or 24117 and
the effective date of the subsequent retirement under this part.
Regardless of how the member elects to receive his or her retirement
allowance, that allowance shall be reduced by an amount determined by
the board to be the actuarial equivalent of the coverage the member
received as a result of the preretirement election and that does not
result in any adverse funding to the plan.
   (b) If the option beneficiary designated in the preretirement
election of an option pursuant to Section 24307 dies prior to the
member's retirement, the preretirement election shall be canceled as
of the day following the date of death and the member's subsequent
retirement allowance under this part shall be subject to the
allowance reduction prescribed in this section.
24310.  If a member cancels an election under Section 24309, the
member may again elect an option under Section 24307.  If the member
elects to change an option during any year, the reduction for that
year shall be that for the option to which the greater reduction
under Section 24309 as it read on December 31, 1995, is applicable.
24311.  (a) A member who has a preretirement election of an option
in effect on December 31, 1990, may change his or her preretirement
election of Option 2, Option 3, Option 4, or Option 5, to either
Option 6 or Option 7 without the allowance reduction prescribed in
Sections 24309 and 24310, provided the change is made on or after
January 1, 1991, and prior to the earlier of January 1, 1992, or the
member's retirement under this part.
   (b) If the member elects to change his or her option under this
section, then the member shall retain the same option beneficiary as
named in the prior preretirement election. The election to change the
preretirement election under this section shall be void if not
received in the system's headquarters office, as established pursuant
to Section 22375, at least 30 days prior to the death of the option
beneficiary.
24312.  (a) A member who has a preretirement election of an option
in effect on December 31, 1999, may change his or her preretirement
election of Option 2, Option 3, Option 4, Option 5, Option 6 or
Option 7 to Option 8 without the allowance reduction prescribed in
Sections 24309 and 24310, provided the change is made on or after
January 1, 2000, and prior to the earlier of July 1, 2000, or the
member's effective date of retirement.
   (b) If the member elects to change his or her option under this
section then the member shall retain the same option and the same
option beneficiary as named in the prior preretirement election of an
option as one of the options under Option 8. The election to change
the preretirement election under this section shall be void if not
received in the system's headquarters office, as established pursuant
to Section 22375, at least 30 days prior to the death of the option
beneficiary.
   (c) This section shall become operative on January 1, 2000.
24313.  (a) Any member who retired for service under Option 2 or
Option 3 with an effective date prior to January 1, 1991, whose
option beneficiary had died prior to January 1, 1995, shall receive,
effective January 1, 1999, the retirement allowance without
modification for the option if all of the following conditions are
met:
   (1) The retired member is living as of January 1, 1999.
   (2) The retired member has not elected a new option beneficiary
under Section 24306.
   (3) The retirement allowance without modification for the option
payable as of January 1, 1999, is greater than the amount payable
under the option, plus the amounts from annual benefit improvements,
ad hoc benefit increases and payments from the Supplemental Benefit
Maintenance Account.
   (4) The retired member does not inform the system in writing, on a
form provided by the system, within 30 days of receipt of the
notification of the change to the retirement allowance without
modification for the option, of his or her election to continue to
receive the option allowance.
   (b) Any member who retired for service under Option 4 or Option 5
with an effective date prior to January 1, 1991, whose option
beneficiary had died prior to January 1, 1999, shall receive
effective January 1, 1999, the retirement allowance without
modification for the option if all the following conditions are met:
   (1) The retired member is living as of January 1, 1999.
   (2) The retired member has not elected a new option beneficiary
under Section 24306.
   (3) The retirement allowance without modification for the option
payable as of January 1, 1999, is greater than the amount payable
under the option, plus the amount from annual benefit improvements,
ad hoc benefit increases and payments from the Supplemental Benefit
Maintenance Account.
   (4) The retired member does not inform the system in writing, on a
form provided by the system, within 30 days of receipt of the
notification of the change to the retirement allowance without
modification  for the option, of his or her election to continue to
receive the option allowance.
   (c) The change to the retirement allowance without modification
for the option, shall be consistent with Section 22453.
   (d) A member retired for service who receives the retirement
allowance without modification for the option provided under this
section, shall not elect a new option beneficiary under Section
24306.
   (e) The cost of this section shall be paid by the transfer for
that purpose of the one-time gain accrued to the State Teachers'
Retirement System from the difference between the contributions
received pursuant to Sections 22901 and 22950 in the 1997-98 fiscal
year minus the normal cost as displayed in the June 30, 1997,
actuarial valuation.