2005 California Education Code Sections 26900-26911 CHAPTER 10. DISABILITY BENEFIT

26900.  A participant may apply to receive a disability benefit
under this part at any time.
26901.  Application for a disability benefit under this part shall
be made by the participant, or the guardian or conservator of the
participant, on a form prescribed by the system.
26902.  (a) A disability benefit under this part shall become
payable only upon determination by the board that the participant has
a total and permanent disability.  The board shall require current
relevant medical reports by licensed practitioners, including the
report of the treating physician, and may make any inquiries
necessary to the determination of total and permanent disability.
Failure of the participant, or the participant's guardian or
conservator, to provide any documents, complete any forms, or respond
to any questions from the board within 45 days of the request may be
cause for rejection of the application.
   (b) Upon determination by the board that the participant does not
have a total and permanent disability, the application for disability
benefit, and any designation of beneficiary for the benefit, shall
be automatically canceled.
26903.  All creditable service subject to coverage by the  Cash
Balance Benefit Program and Defined Benefit Program shall be
terminated prior to the disability date.
26904.  The disability benefit is a benefit for total and permanent
disability that is an amount equal to the sum of the employee account
and the employer account as of the disability date.
26905.  The normal form of disability benefit under this part is a
lump-sum payment.  Upon distribution of the lump-sum payment to the
participant, no further benefits shall be payable from the  Cash
Balance Benefit Program.
26906.  (a)  Upon application for a disability benefit under this
part, the participant may elect to receive the disability benefit in
the form of an annuity provided the sum of the employee account and
employer account equals or exceeds three thousand five hundred
dollars ($3,500).
   (b) If the participant elects to receive the disability benefit as
an annuity, the participant shall elect one of the following forms
of payment:
   (1) A single life annuity without a cash refund feature.  This
form of payment is the actuarial equivalent of the amount that would
be payable to the participant if the participant elected to receive
the disability benefit in a lump-sum payment.  This benefit shall be
payable for the life of the participant.  Upon the death of the
participant, no other benefit shall be payable to any beneficiary
under this part.
   (2) A single life annuity with a cash refund feature.  This form
of payment is the actuarial equivalent of the amount that would be
payable to the participant if the participant elected to receive the
disability benefit in a lump-sum payment.  This benefit shall be
payable for the life of the participant and any balance remaining
upon the death of the participant shall be payable in a lump sum to
the participant's beneficiary.
   (3) A 100-percent joint and survivor annuity with a "pop-up"
feature.  This form of payment is the actuarial equivalent of the
amount that would be payable to the participant if the participant
elected to receive the disability benefit in a lump-sum payment,
modified to be payable over the combined lives of the participant and
the participant's annuity beneficiary.  Upon the death of the
participant, the monthly amount that was payable to the participant
shall be paid monthly to the participant's annuity beneficiary.
However, if the annuity beneficiary predeceases the participant, the
annuity payable to the participant shall be the single life annuity
with a cash refund feature that would have been payable had the
participant selected that form of payment at the commencement of the
benefit.  That single life annuity shall be payable as of the day
following the date of the annuity beneficiary's death upon receipt by
the system of proof of the annuity beneficiary's death.  If the
annuity beneficiary predeceases the participant, the participant may
designate a new annuity beneficiary.  The effective date of the new
designation shall be six months following the date notification, on a
properly executed form, is received by the board, provided both the
participant and the new designated annuity beneficiary are then
living. The selection of the new annuity beneficiary under this
paragraph shall be subject to an actuarial modification of the single
life annuity with a cash refund feature.  A participant may not
designate a new annuity beneficiary if that designation would result
in any additional liability to the fund.
   (4) A 50-percent joint and survivor annuity with a "pop-up"
feature. This form of payment is the actuarial equivalent of the
amount that would be payable to the participant if the participant
elected to receive the disability benefit in a lump-sum payment,
modified to be payable over the combined lives of the participant and
the participant's annuity beneficiary.  Upon the death of the
participant, one-half of the monthly amount that was payable to the
participant shall be paid monthly to the participant's annuity
beneficiary.  However, if the annuity beneficiary predeceases the
participant, the annuity payable to the participant shall be the
single life annuity with a cash refund feature that would have been
payable had the participant selected that form of payment at the
commencement of the benefit.  That single life annuity shall be
payable as of the day following the date of the annuity beneficiary's
death upon receipt by the system of proof of the annuity beneficiary'
s death.  If the annuity beneficiary predeceases the participant, the
participant may designate a new annuity beneficiary.  The effective
date of the new designation shall be six months following the date
notification, on a properly executed form, is received by the board,
provided both the participant and the new designated annuity
beneficiary are then living.  The selection of the new annuity
beneficiary under this paragraph shall be subject to an actuarial
modification of the single life annuity with a cash refund feature.
A participant may not designate a new annuity beneficiary if that
designation would result in any additional liability to the fund.
   (5) A period certain annuity.  This form of payment is an annuity
equal to the actuarial equivalent of the sum of balance of the
employee account and the employer account on the date the disability
benefit becomes payable.  The annuity shall be payable in whole year
increments over a period of years specified by the participant, from
a minimum of three years to a maximum of 10 years.  However, the
annuity period may not exceed the life expectancy of the participant
or of the participant and the participant's annuity beneficiary.  If
the participant's death occurs prior to the end of the period
certain, the remaining balance of payments shall be paid to the
participant's annuity beneficiary pursuant to Section 27007.
26907.  The annuity under this chapter shall be determined as a
value actuarially equivalent to the sum of the employee account and
the employer account as of the disability date.  The annuity shall be
calculated using the age of the participant and, if the participant
elected a joint and survivor option, the age of the beneficiary on
the disability date.
26908.  Upon election of an annuity under this part, the credits in
the participant's employee account and employer account shall be
transferred to the Annuitant Reserve.
26910.  The beneficiary under the joint and survivor option elected
pursuant to paragraph (3) or paragraph (4) of subdivision (b) of
Section 26906 shall be the person designated by the participant on
the application for a disability benefit and shall not be changed
after the original disability date unless the beneficiary predeceases
the participant.
26911.  If a participant who is receiving a disability annuity under
this part becomes reemployed prior to 60 years of age to perform
creditable service subject to coverage by the Cash Balance Benefit
Program or the Defined Benefit Program, the disability annuity shall
be terminated.  The participant's employee account and employer
account shall be credited with the actuarial equivalent of the
participant's annuity as of the date of reemployment and the
Annuitant Reserve shall be reduced by the amount credited to those
accounts.