2007 California Government Code Article 2. Definitions

CA Codes (gov:20010-20071)

20010.  "Accumulated additional contributions" means the sum of all
additional contributions standing to the credit of a member's
individual account, and interest thereon.



20011.  "Accumulated contributions" means accumulated normal
contributions plus any accumulated additional contributions standing
to the credit of a member's account.



20012.  "Accumulated normal contributions" means the sum of all
normal contributions standing to the credit of a member's individual
account, and interest thereon.



20013.  "Actuarial equivalent" means a benefit of equal value when
computed upon the basis of the mortality tables adopted and the
actuarial interest rate fixed by the board.



20014.  "Actuarial interest rate" means the interest rate fixed by
the board for purposes of actuarial valuation of the assets and
liabilities of this system.


20015.  "Actuary" means an actuary regularly employed on a full-time
or part-time basis by the board.



20016.  "Additional contributions" means contributions made by
members and their employers in addition to their normal contributions
under Article 2 (commencing with Section 20710) of Chapter 8.



20017.  "Annual interest rate" means the net earnings rate reduced
by 110 basis points for purposes of crediting interest.



20018.  "Annuity" means payments for life derived from contributions
made by a member.



20019.  "Beneficiary" means any person or corporation designated by
a member, a retired member, or by statute to receive a benefit
payable under this part, on account of the death of a member or a
retired member.  A member or retired member may also designate the
member's estate as a beneficiary.



20020.  "Benefit" means the retirement allowance, basic death
benefit, limited death benefit, special death benefit, any monthly
allowance for survivors of a member or retired person, the insurance
benefit, the partial disability retirement program payment, or refund
of accumulated contributions.



20021.  "Board" means the Board of Administration of the Public
Employees' Retirement System.



20022.  "Contracting agency" means any public agency that has
elected to have all or any part of its employees become members of
this system and that has contracted with the board for that purpose.
"Contracting agency" also means any county office of education,
school district, or community college district that has elected to
have all or part of its employees participate in a risk pool and that
has contracted with the board for that purpose.



20023.  "County peace officer service" shall include service
rendered in the sheriff's office of a city and county in positions
that were subsequently reclassified as positions within the
definition of "county peace officer."



20023.5.  "County retirement system" means a retirement system
established under Chapter 3 (commencing with Section 31450) of Part 3
of Division 4 of Title 3, the County Employees Retirement Law of
1937.


20024.  "Current service" means all state service rendered by a
member on and after the date upon which he or she first became a
member, service in employment while not a member but after persons
employed in the status of the member were eligible for membership,
and public service designated as current service under Section 21034.




20025.  "Dependent," in reference to any benefit provided, upon the
death of a member, for a surviving dependent parent, or parent
dependent upon the member for support, shall mean receipt of at least
one-half of the parent's support from the member at the time of the
member's death determined according to rules of the board.




20026.  "Disability" and "incapacity for performance of duty" as a
basis of retirement, mean disability of permanent or extended and
uncertain duration, 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.




20027.  "Disability," "disabled," or "incapacitated" means, with
respect to qualification for an allowance payable to a surviving
child, inability to engage in any substantial gainful occupation by
reason of any physical or mental impairment that is determined by the
board, on the basis of competent medical or psychiatric opinion, to
be of permanent or extended and uncertain duration.



20028.  "Employee" means all of the following:
   (a) Any person in the employ of the state, a county superintendent
of schools, or the university whose compensation, or at least that
portion of his or her compensation that is provided by the state, a
county superintendent of schools, or the university, is paid out of
funds directly controlled by the state, a county superintendent of
schools, or the university, excluding all other political
subdivisions, municipal, public and quasi-public corporations. "Funds
directly controlled by the state" includes funds deposited in and
disbursed from the State Treasury in payment of compensation,
regardless of their source.
   (b) Any person in the employ of any contracting agency.
   (c) City employees who prior to the effective date of the contract
with the hospital are assigned to a hospital that became a
contracting agency because of subdivision (p) of Section 20057 shall
be deemed hospital employees from and after the effective date of the
contract with the hospital for retirement purposes. City employees
who after the effective date of the contract with the hospital become
employed by the hospital, shall be considered as new employees of
the hospital for retirement purposes.
   (d) Any person in the employ of a school employer.
   (e) Public health department or district employees who were
employees prior to the date of assumption of the contract by the
governing body of a county of the 15th class shall be deemed public
health department or district employees from and after the effective
date of assumption of the contract for retirement purposes. Employees
who after the effective date of assumption of the contract become
employed by the public health department or district shall be
considered as new employees for retirement purposes.
   (f) Officers, warrant officers, and enlisted personnel of the
California National Guard not otherwise described in subdivision (a)
rendering service authorized by Title 32 of the United States Code.




20029.  "Employee federal contributions" means those contributions
required of employees under the federal system with respect to wages
paid to individuals who perform services in employment in any
coverage group included in the federal-state agreement, at the rate
of taxes imposed on employees by Section 3101 of Title 26 of the
United States Code for the respective calendar years set forth
therein.



20030.  "Employer" means the state, the university, a school
employer, and any contracting agency employing an employee.



20031.  "Employer federal contributions" means those contributions
required of employers under the federal system with respect to wages
paid to individuals who perform services in employment in any
coverage group included in the federal-state agreement, at the rate
of taxes imposed on employers by Section 3111 of Title 26 of the
United States Code for the respective calendar years set forth
therein and all penalties and interest that may be required to be
paid with respect to those wages under the federal-state agreement.



20032.  "Federal-state agreement" means the agreement or any
modification thereof executed by the board pursuant to Section 418 of
Title 42 of the United States Code.



20033.  "Federal system" means the old age, survivors, disability,
and health insurance provisions of the Social Security Act.



20034.  The average monthly salary during any period of service as a
member of any retirement system maintained by the university shall
be considered compensation earnable by a member of this system for
purposes of computing final compensation for the member providing he
or she retires concurrently under both systems.




20035.  (a) Notwithstanding Section 20037, "final compensation" for
the purposes of determining any pension or benefit with respect to a
state member who retires or dies on or after July 1, 1991, and with
respect to benefits based on service with the state, means the
highest annual compensation which was earnable by the state member
during the consecutive 12-month period of employment immediately
preceding the effective date of his or her retirement or the date of
his or her last separation from state service if earlier or during
any other period of 12 consecutive months during his or her
membership in this system that the member designates on the
application for retirement.
   (b) With respect to a state member who retires or dies on or after
July 1, 1991, and who was a managerial employee, as defined by
subdivision (e) of Section 3513, or a supervisory employee, as
defined by subdivision (g) of Section 3513, whose monthly salary
range was administratively reduced by 5 percent because of the salary
range reductions administratively imposed upon managers and
supervisors during the 1991-92 fiscal year, "final compensation"
means the highest annual compensation the state member would have
earned had his or her salary range not been reduced by the 5-percent
reduction.  This subdivision shall only apply if the period during
which the state member's salary was reduced would have otherwise been
included in determining his or her final compensation.  The costs,
if any, that may result from the use of the higher final compensation
shall be paid for by the employer in the same manner as other
retirement benefits are funded.



20035.1.  For patrol members in State Bargaining Unit 5, patrol
members excepted from the definition of "state employee" in
subdivision (c) of Section 3513, and patrol members who are officers
or employees of the executive branch of state government who are not
members of the civil service, the member's final compensation shall
be increased as follows:
   (a) For a member who retires or dies on or after July 1, 2001, and
prior to July 1, 2004, the member's final compensation for patrol
service subject to Section 21362.2 shall be increased by one-half of
the normal rate of contribution specified in subdivision (a) of
Section 20681.
   (b) For a member who retires or dies on or after July 1, 2004, and
prior to July 1, 2008, the member's final compensation for patrol
service subject to Section 21362.2 shall be increased by the normal
rate of contribution specified in subdivision (a) of Section 20681.
   (c) For a member who retires or dies on or after July 1, 2008, and
prior to July 1, 2009, the member's final compensation for patrol
service subject to Section 21362.2 shall be increased by
three-fourths of the normal rate of contribution specified in
subdivision (a) of Section 20681.
   (d) For a member who retires or dies on or after July 1, 2009, and
prior to July 1, 2010, the member's final compensation for patrol
service subject to Section 21362.2 shall be increased by one-half of
the normal rate of contribution specified in subdivision (a) of
Section 20681.
   (e) For a member who retires or dies on or after July 1, 2010, and
prior to July 1, 2011, the member's final compensation for patrol
service subject to Section 21362.2 shall be increased by one-fourth
of the normal rate of contribution specified in subdivision (a) of
Section 20681.
  (f) This section shall remain in effect only until July 1, 2011,
and as of January 1, 2012, is repealed, unless a later enacted
statute, that is enacted before January 1, 2012, deletes or extends
that date.


20035.2.  Notwithstanding Sections 20035 and 20037, "final
compensation," for the purpose of determining any pension or benefit
with respect to a patrol member who retires or dies on or after July
1, 2003, who was a member of State Bargaining Unit 5, and whose
monthly salary range that was to be effective July 1, 2003, was
reduced by 5 percent pursuant to an addendum to a memorandum of
understanding entered during the 2003-04 fiscal year, means the
highest annual compensation the patrol member would have earned as of
July 1, 2003, if that 5-percent reduction had not occurred. This
section shall apply only if the period during which the patrol member'
s salary was reduced would have otherwise been included in
determining his or her final compensation.  The increased costs, if
any, that may result from the application of the definition of "final
compensation" provided in this section shall be paid by the employer
in the same manner as other retirement benefits are funded.



20035.21.  Notwithstanding Sections 20035 and 20037, "final
compensation" for the purpose of determining any pension or benefit
with respect to a patrol member who retires or dies on or after July
1, 2004, who was a member of State Bargaining Unit 5, and whose
monthly salary range that was to be effective July 1, 2004, was
reduced by 5 percent pursuant to an addendum to a memorandum of
understanding entered during the 2004-05 fiscal year, "final
compensation" means the highest annual compensation the patrol member
would have earned as of July 1, 2004, if that 5 percent reduction
had not occurred.  This section shall only apply if the period during
which the patrol member's salary was reduced would have otherwise
been included in determining his or her final compensation.
   The increased costs, if any, that may result from the application
of the definition of "final compensation" provided in this section
shall be paid by the employer in the same manner as other retirement
benefits are funded.



20035.3.  Notwithstanding Sections 20035 and 20037, "final
compensation," for the purpose of determining any pension or benefit
with respect to a state miscellaneous or peace officer/firefighter
member who retires or dies on or after July 1, 2003, who was a member
of State Bargaining Unit 8, and whose monthly salary range that was
to be effective July 1, 2003, was reduced by 5 percent pursuant to an
addendum to a memorandum of understanding entered during the 2003-04
fiscal year, means the highest annual compensation the member would
have earned as of July 1, 2003, if that 5-percent reduction had not
occurred.  This section shall apply only if the period during which
the member's salary was reduced would have otherwise been included in
determining his or her final compensation.  The increased costs, if
any, that may result from the application of the definition of "final
compensation" provided in this section shall be paid by the employer
in the same manner as other retirement benefits are funded.



20035.4.  Notwithstanding Sections 20035 and 20037, "final
compensation," for the purpose of determining any pension or benefit
with respect to a member who retires or dies on or after July 1,
2003, who was a member of State Bargaining Unit 16, and whose monthly
salary range that was to be effective July 1, 2003, was reduced by 5
percent pursuant to a memorandum of understanding entered during the
2003-04 fiscal year, means the highest annual compensation the
member would have earned as of July 1, 2003, if that 5-percent
reduction had not occurred.  This section shall apply only if the
period during which the member's salary was reduced would have
otherwise been included in determining his or her final compensation.
  The increased costs, if any, that may result from the application
of the definition of "final compensation" provided in this section
shall be paid by the employer in the same manner as other retirement
benefits are funded.


20035.5.  Notwithstanding Section 20037, "final compensation" for
the purposes of determining any pension or benefit with respect to a
school member who retires or dies on or after January 1, 2000, and
with respect to benefits based on service with a school employer,
means the highest annual compensation that was earnable by the school
member during the consecutive 12-month period of employment
immediately preceding the effective date of his or her retirement or
the date of his or her last separation from service if earlier or
during any other period of 12 consecutive months during his or her
membership in this system that the member designates on the
application for retirement.



20035.6.  Notwithstanding Sections 20035 and 20037, "final
compensation," for the purpose of determining any pension or benefit
with respect to a member who retires or dies on or after July 1,
2003, who was a member of State Bargaining Unit 19, and whose monthly
salary range that was to be effective July 1, 2003, was reduced by 5
percent pursuant to a memorandum of understanding entered during the
2003-04 fiscal year, means the highest annual compensation the
member would have earned as of July 1, 2003, if that 5-percent
reduction had not occurred. This section shall apply only if the
period during which the member's salary was reduced would have
otherwise been included in determining his or her final compensation.
The increased costs, if any, that may result from the application of
the definition of "final compensation" provided in this section
shall be paid by the employer in the same manner as other retirement
benefits are funded.


20035.9.  (a) Notwithstanding Sections 20035 and 20037, "final
compensation," for the purpose of determining any pension or benefit
with respect to a state miscellaneous member (1) who retires or dies
on or after July 1, 2003, (2) who was a member of a state bargaining
unit listed in subdivision (b), and (3) whose monthly salary range
that was to be effective July 1, 2003, was reduced by 5 percent
pursuant to a memorandum of understanding entered into during the
2003-04 fiscal year, means the highest annual compensation the member
would have earned as of July 1, 2003, if that 5 percent reduction
had not occurred.  This section shall apply only if the period during
which the member's salary was reduced would have otherwise been
included in determining his or her final compensation.  The increased
costs, if any, that may result from the application of the
definition of "final compensation" provided in this section shall be
paid by the employer in the same manner as other retirement benefits
are funded.
   (b) The section shall apply with respect to members in State
Bargaining Units 1, 4, 10, 11, 14, 15, 17, 20, and 21.



20035.10.  (a) Notwithstanding Sections 20035 and 20037, "final
compensation," for the purpose of determining any pension or benefit
with respect to a state miscellaneous member (1) who retires or dies
on or after July 1, 2003, (2) who was a member of the state
bargaining unit listed in subdivision (b), and (3) whose monthly
salary range that was to be effective July 1, 2003, was reduced by 5
percent pursuant to a memorandum of understanding entered into during
the 2003-04 fiscal year, means the highest annual compensation the
member would have earned as of July 1, 2003, if that 5-percent
reduction had not occurred.  This section shall apply only if the
period during which the member's salary was reduced would have
otherwise been included in determining his or her final compensation.
  The increased costs, if any, that may result from the application
of the definition of "final compensation" provided in this section
shall be paid by the employer in the same manner as other retirement
benefits are funded.
   (b) This section shall apply with respect to members in State
Bargaining Unit 9.


20036.  In the computation of the disability retirement allowance
payable upon the retirement of a member for industrial disability,
final compensation shall be determined only with respect to
compensation earnable in the membership category applicable to the
member at the time of the injury or the onset of the disease causing
the disability.



20037.  For a state member, or for a local member who is an employee
of a contracting agency that is subject to this section, "final
compensation" means the highest average annual compensation earnable
by a member during the three consecutive years of employment
immediately preceding the effective date of his or her retirement or
the date of his or her last separation from state service if earlier
or during any other period of three consecutive years during his or
her membership in this system which he or she designates in his or
her application for retirement, including any or all of the period or
periods of (a) service required for qualification for membership, or
(b) prior service which qualifies for credit under this system, if
any, immediately preceding membership, or (c) time prior to entering
state service at the compensation earnable by him or her in the
position first held by him or her in that service, as may be
necessary to complete three consecutive years.  For the purposes of
this section, periods of service separated by a period of retirement
or breaks in service may be aggregated to constitute a period of
three consecutive years, if the periods of service are consecutive
except for such a period of retirement or breaks.  If a break in
service did not exceed six months in duration, time included in the
break and compensation earnable during that time shall be included in
computation of final compensation.  If a break in service exceeded
six months in duration, the first six months thereof and the
compensation earnable during those six months shall be included in
computation of final compensation, but time included in the break
which is in excess of six months and the compensation earnable during
that excess time shall be excluded in computation of final
compensation.  On and after November 13, 1968, this section shall
apply to all contracting agencies and to the employees of those
agencies whether or not those agencies have previously elected to be
subject to this section, except that this section shall not apply to
an employee of a contracting agency which has not elected to be
subject to this section whose death occurred or whose retirement was
effective prior to November 13, 1968.


20037.5.  Notwithstanding Section 20035, "final compensation" for a
state member who has elected to be subject to Section 21353.5, for
the purposes of determining any pension or benefit based on service
credited under that section, means the highest average annual
compensation earnable by the member during the consecutive 36-month
period immediately preceding the effective date of his or her
retirement, or the date of his or her last separation from state
service if earlier, or during any other period of 36 consecutive
months during his or her state membership that the member designates
on the application for retirement.


20037.5.  Notwithstanding Section 20035, "final compensation" for a
state member who has elected to be subject to Section 21353.5, for
the purposes of determining any pension or benefit based on service
credited under that section, means the highest average annual
compensation earnable by the member during the consecutive 36-month
period immediately preceding the effective date of his or her
retirement, or the date of his or her last separation from state
service if earlier, or during any other period of 36 consecutive
months during his or her state membership that the member designates
on the application for retirement.


20037.6.  (a) Notwithstanding Sections 20035 and 20037, final
compensation for a person who becomes a state member of the system on
or after July 1, 2006, and is represented by State Bargaining Unit
2, means the highest average annual compensation earnable by the
member during the consecutive 36-month period immediately preceding
the effective date of his or her retirement, or the date of his or
her last separation from state service if earlier, or during any
other period of 36 consecutive months during his or her state
membership that the member designates on the application for
retirement.
   (b) This section applies to service credit accrued while a member
of State Bargaining Unit 2.
   (c) This section does not apply to:
   (1)  Former state employees who return to state employment on or
after July 1, 2006.
   (2) State employees hired prior to July 1, 2006, who were subject
to Section 20281.5 during the first 24 months of state employment.
   (3) State employees hired prior to July 1, 2006, who become
subject to representation by State Bargaining Unit 2 on or after July
1, 2006.
   (4)  State employees on an approved leave of absence who return to
active employment on or after July 1, 2006.



20037.7.  (a) Notwithstanding Sections 20035 and 20037, final
compensation for a person who becomes a state member of the system on
or after January 1, 2007, and is represented by State Bargaining
Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21, means the highest average
annual compensation earnable by the member during the consecutive
36-month period immediately preceding the effective date of his or
her retirement, or the date of his or her last separation from state
service if earlier, or during any other period of 36 consecutive
months during his or her state membership that the member designates
on the application for retirement.
   (b) This section applies to service credit accrued while a member
of State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21.
   (c) This section does not apply to:
   (1) Former state employees previously employed before January 1,
2007, who return to state employment on or after January 1, 2007.
   (2) State employees hired prior to January 1, 2007, who were
subject to Section 20281.5 during the first 24 months of state
employment.
   (3) State employees hired prior to January 1, 2007, who become
subject to representation by State Bargaining Unit 1, 3, 4, 11, 14,
15, 17, 20, or 21 on or after January 1, 2007.
   (4) State employees on an approved leave of absence employed
before January 1, 2007, who return to active employment on or after
January 1, 2007.


20037.8.  (a) Notwithstanding Sections 20035 and 20037, final
compensation for a person who becomes a state member of the system on
or after January 1, 2007, and is represented by State Bargaining
Unit 12 or 13, means the highest average annual compensation earnable
by the member during the consecutive 36-month period immediately
preceding the effective date of his or her retirement, or the date of
his or her last separation from state service if earlier, or during
any other period of 36 consecutive months during his or her state
membership that the member designates on the application for
retirement.
   (b) This section applies to service credit accrued while a member
of State Bargaining Unit 12 or 13.
   (c) This section does not apply to:
   (1) Former state employees previously employed before January 1,
2007, who return to state employment on or after January 1, 2007.
   (2) State employees hired prior to January 1, 2007, who were
subject to Section 20281.5 during the first 24 months of state
employment.
   (3) State employees hired prior to January 1, 2007, who become
subject to representation by State Bargaining Unit 12 or 13 on or
after January 1, 2007.
   (4) State employees on an approved leave of absence employed
before January 1, 2007, who return to active employment on or after
January 1, 2007.


20037.9.  (a) Notwithstanding Sections 20035 and 20037, final
compensation for a person who becomes a state member of the system on
or after January 1, 2007, and is represented by State Bargaining
Unit 16 or 19, means the highest average annual compensation earnable
by the member during the consecutive 36-month period immediately
preceding the effective date of his or her retirement, or the date of
his or her last separation from state service if earlier, or during
any other period of 36 consecutive months during his or her state
membership that the member designates on the application for
retirement.
   (b) This section applies to service credit accrued while a member
of State Bargaining Unit 16 or 19.
   (c) This section does not apply to:
   (1) Former state employees previously employed before January 1,
2007, who return to state employment on or after January 1, 2007.
   (2) State employees hired prior to January 1, 2007, who were
subject to Section 20281.5 during the first 24 months of state
employment.
   (3) State employees hired prior to January 1, 2007, who become
subject to representation by State Bargaining Unit 16 or 19 on or
after January 1, 2007.
   (4) State employees on an approved leave of absence employed
before January 1, 2007, who return to active employment on or after
January 1, 2007.


20037.10.  (a) Notwithstanding Sections 20035 and 20037, final
compensation for a person who becomes a state member of the system on
or after January 1, 2007, and is represented by State Bargaining
Unit 7, means the highest average annual compensation earnable by the
member during the consecutive 36-month period immediately preceding
the effective date of his or her retirement, or the date of his or
her last separation from state service if earlier, or during any
other period of 36 consecutive months during his or her state
membership that the member designates on the application for
retirement.
   (b) This section applies to service credit accrued while a member
of State Bargaining Unit 7.
   (c) This section does not apply to:
   (1) Service credit accrued while classified as a state peace
officer/firefighter while a member of Bargaining Unit 7.
   (2) Former state employees previously employed before January 1,
2007, who return to state employment on or after January 1, 2007.
   (3) State employees hired prior to January 1, 2007, who were
subject to Section 20281.5 during the first 24 months of state
employment.
   (4) State employees hired prior to January 1, 2007, who become
subject to representation by State Bargaining Unit 7 on or after
January 1, 2007.
   (5) State employees on an approved leave of absence employed
before January 1, 2007, who return to active employment on or after
January 1, 2007.



20037.11.  (a) Notwithstanding Sections 20035 and 20037, final
compensation for a person who becomes a state member of the system on
or after January 1, 2007, and is represented by State Bargaining
Unit 10, means the highest average annual compensation earnable by
the member during the consecutive 36-month period immediately
preceding the effective date of his or her retirement, or the date of
his or her last separation from state service if earlier, or during
any other period of 36 consecutive months during his or her state
membership that the member designates on the application for
retirement.
   (b) This section applies to service credit accrued while a member
of State Bargaining Unit 10.
   (c) This section does not apply to:
   (1) Former state employees previously employed before January 1,
2007, who return to state employment on or after January 1, 2007.
   (2) State employees hired prior to January 1, 2007, who were
subject to Section 20281.5 during the first 24 months of state
employment.
   (3) State employees hired prior to January 1, 2007, who become
subject to representation by State Bargaining Unit 10 on or after
January 1, 2007.
   (4) State employees on an approved leave of absence employed
before January 1, 2007, who return to active employment on or after
January 1, 2007.



20037.12.  (a) Notwithstanding Sections 20035 and 20037, final
compensation for a person who becomes a state member of the system on
or after January 1, 2007, and is represented by State Bargaining
Unit 18, means the highest average annual compensation earnable by
the member during the consecutive 36-month period immediately
preceding the effective date of his or her retirement, or the date of
his or her last separation from state service if earlier, or during
any other period of 36 consecutive months during his or her state
membership that the member designates on the application for
retirement.
   (b) This section applies to service credit accrued while a member
of State Bargaining Unit 18.
   (c) This section does not apply to:
   (1) Former state employees previously employed before January 1,
2007, who return to state employment on or after January 1, 2007.
   (2) State employees hired prior to January 1, 2007, who were
subject to Section 20281.5 during the first 24 months of state
employment.
   (3) State employees hired prior to January 1, 2007, who become
subject to representation by State Bargaining Unit 18 on or after
January 1, 2007.
   (4) State employees on an approved leave of absence employed
before January 1, 2007, who return to active employment on or after
January 1, 2007.



20039.  Notwithstanding any other provision of this part, "final
compensation" of a local member for the purpose of determining any
pension or benefit resulting from state service as an elective or
appointed officer on a city council or a county board of supervisors
accrued while in membership pursuant to Section 20322, shall be based
on the highest average annual compensation earnable by the member
during the period of state service in each elective or appointed
office.  Where that elective or appointed service is a consideration
in the computation of any pension or benefit, the member may have
more than one final compensation.
   This section shall apply to a local member first elected or
appointed to a city council or a county board of supervisors on or
after July 1, 1994, or elected or appointed to a term of office not
consecutive with the term of office held on June 30, 1994.




20039.5.  Notwithstanding Article 5 (commencing with Section 20350)
of Chapter 3, or any other provision of this part, "final
compensation" for the purposes of determining any pension or benefit
for service with the California National Guard with respect to a
National Guard member means the highest average annual compensation
that was earned while rendering service with the California National
Guard. The final compensation of a National Guard member under
another retirement or pension system shall not apply to the
calculation of his or her retirement allowance with respect to
service with the California National Guard.



20040.  Notwithstanding any other provision of this part, "final
compensation," for the purposes of determining any benefits payable
under this part for coverage under the Second Tier, shall not be
reduced by any fraction or amount for any member included in the
federal system.



20041.  For a local member who is an employee of a contracting
agency that, by the provisions of its contract with the board, is
subject to Section 20043, and for no other member, "final
compensation," shall be subject to Section 20043, under which a
member, who is afforded an election thereunder, but does not make the
election, may have more than one final compensation.



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 on service to the agency 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.




20043.  The entire compensation of a local member shall be included
in any computation to be made under this part for service rendered as
an employee of a contracting agency, the effective date of whose
contract is on or after July 1, 1952, or whose contract on its
effective date prior to July 1, 1952, contained an election to be
subject to this section.



20044.  "Fiscal year" is any year commencing on July 1st and ending
with June 30th next following.



20045.  "Highway patrol service" means service rendered as a member
of the California Highway Patrol, only while the member is receiving
compensation from the state for that service, except as provided in
Article 4 (commencing with Section 20990) of Chapter 11.



20046.  "Industrial," in reference to the death or disability of any
member of this system who is in a membership category under which
special benefits are provided by this part because the death or
disability is industrial, means disability or death as a result of
injury or disease arising out of and in the course of his or her
employment as such a member.



20046.5.  "Industrial" with respect to state miscellaneous members
also means death or disability on or after January 1, 1995, resulting
from an injury that is a direct consequence of a violent act
perpetrated on his or her person by a patient or client of the State
Department of Mental Health at Metropolitan State Hospital or Napa
State Hospital if:
   (a) The member was performing his or her duties within a treatment
ward at the time of the injury, or
   (b) The member was not within a treatment ward but was acting
within the scope of his or her employment at the hospital and is
regularly and substantially as part of his or her duties in contact
with the patients or clients, and
   (c) The member at the time of injury was employed in a state
bargaining unit for which a memorandum of understanding has been
agreed to by the state employer and the recognized employee
organization to become subject to this section, or
   (d) The member was either excluded from the definition of state
employee in subdivision (c) of Section 3513 or was a nonelected
officer or employee of the executive branch of government who was not
a member of the civil service.



20047.  "Industrial" with respect to state miscellaneous members
also means death or disability after January 1, 1993, resulting from
an injury that is a direct consequence of a violent act perpetrated
on his or her person by a patient or client of the State Department
of Mental Health at Patton State Hospital or Atascadero State
Hospital, an inmate at the Department of Mental Health Psychiatric
Program at California Medical Facility at Vacaville, or a patient at
any other state hospital which is deemed a forensic facility if:
   (a) The member was performing his or her duties within a treatment
ward at the time of the injury, or
   (b) The member was not within a treatment ward but was acting
within the scope of his or her employment at the hospital and is
regularly and substantially as part of his or her duties in contact
with the patients or clients, and
   (c) The member at the time of injury was employed in a state
bargaining unit for which a memorandum of understanding has been
agreed to by the state employer and the recognized employee
organization to become subject to this section, or
   (d) The member was either excluded from the definition of state
employee in subdivision (c) of Section 3513 or was a nonelected
officer or employee of the executive branch of government who was not
a member of the civil service.


20047.5.  "Industrial," with respect to state miscellaneous members,
means death or disability on or after January 1, 2002, or the date
agreed to in the memorandum of understanding between the state
employer and the recognized employee organization, resulting from an
injury that is a direct consequence of a violent act perpetrated on
his or her person by a patient or client of the State Department of
Developmental Services, at Porterville Developmental Center, Canyon
Springs Community Facility, or Sierra Vista Community Facility, if
both of the following apply:
   (a) The member either (1) was performing his or her duties within
a treatment ward at the time of the injury, or (2) was not within a
treatment ward but was acting within the scope of his or her
employment at the hospital and is regularly and substantially as part
of his or her duties in contact with the patients or clients.
   (b) The member, at the time of injury, was either (1) employed in
a state bargaining unit for which a memorandum of understanding has
been agreed to by the state employer and the recognized employee
organization to become subject to this section, (2) excluded from the
definition of "state employee" in subdivision (c) of Section 3513,
or (3) a non-elected officer or employee of the executive branch of
government who was not a member of the civil service.




20048.  "Industrial," with respect to state industrial members,
means death or disability resulting from an injury that is a direct
consequence of a violent act perpetrated on his or her person by an
inmate of a state prison, correctional school or facility of the
Department of Corrections or the Department of the Youth Authority,
or a parolee therefrom, if:
   (a) The member was performing his or her duties within the prison,
correctional school or facility of the Department of Corrections or
the Department of the Youth Authority.
   (b) The member was not within the prison, correctional school or
facility of the Department of Corrections or the Department of the
Youth Authority, but was acting within the scope of his or her
employment and is regularly and substantially as part of his or her
duties in contact with those inmates or parolees.



20049.  "Labor policy or agreement" means any written policy,
agreement, memorandum of understanding, legislative action of the
elected or appointed body governing the employer, or any other
document used by the employer to specify the payrate, special
compensation, and benefits of represented and unrepresented
employees.



20050.  "Local safety service" means state service rendered as a
local firefighter, local police officer, county peace officer, local
safety officer, or positions defined as local safety member in
Sections 20421 and 20422 except as provided in Article 1 (commencing
with Section 20890) and Article 4 (commencing with Section 20990) of
Chapter 11.



20051.  "Month," except as otherwise expressly provided, means a
period commencing on any day of a calendar month and extending
through the day preceding the corresponding day of the succeeding
calendar month, if there is any corresponding day, and if not,
through the last day of the succeeding calendar month.



20052.  "Net earnings" means the earnings of the retirement fund
less the amounts specified in Sections 20173 and 20174.



20053.  "Normal contributions" means contributions required to be
paid by a member at the normal rates of contribution fixed by the
law, by contract, or by contract amendment, but does not include
additional contributions.
   "Normal contributions" also includes contributions required to be
paid by a member that are in fact paid on behalf of a member by an
employer as defined in Section 20030.


20054.  "Pension" means payments for life derived from contributions
made from employer controlled funds.



20055.  (a) "Prior service" as applied to a state member who while
employed on a part-time basis became a member because of amendments
of the laws governing this system or because of a change in his or
her employment status to at least a half-time basis, means all state
service rendered by him or her prior to the time he or she became a
member.
   (b) As applied to other members, "prior service" means all state
service rendered by:
   (1) A university member prior to August 27, 1937.
   (2) A state member other than a university member, prior to
January 1, 1932.
   (3) A local member or school member prior to the effective date of
the contract under which he or she became a member.



20056.  "Public agency" means any city, county, district, other
local authority or public body of or within this state.



20057.  "Public agency" also includes the following:
   (a) The Commandant, Veterans' Home of California, with respect to
employees of the Veterans' Home Exchange and other post fund
activities whose compensation is paid from the post fund of the
Veterans' Home of California.
   (b) Any auxiliary organization operating pursuant to Chapter 7
(commencing with Section 89900) of Part 55 of the Education Code and
in conformity with regulations adopted by the Trustees of the
California State University and any auxiliary organization operating
pursuant to Article 6 (commencing with Section 72670) of Chapter 6 of
Part 45 of the Education Code and in conformity with regulations
adopted by the Board of Governors of the California Community
Colleges.
   (c) Any student body or nonprofit organization composed
exclusively of students of the California State University or
community college or of members of the faculty of the California
State University or community college, or both, and established for
the purpose of providing essential activities related to, but not
normally included as a part of, the regular instructional program of
the California State University or community college.
   (d) A state organization of governing boards of school districts,
the primary purpose of which is the advancing of public education
through research and investigation.
   (e) Any nonprofit corporation whose membership is confined to
public agencies as defined in Section 20056.
   (f) A section of the California Interscholastic Federation.
   (g) Any credit union incorporated under Division 5 (commencing
with Section 14000) of the Financial Code, or incorporated pursuant
to federal law, with 95 percent of its membership limited to
employees who are members of or retired members of this system or the
State Teachers' Retirement Plan, and their immediate families, and
employees of any credit union. For the purposes of this subdivision,
"immediate family" means those persons related by blood or marriage
who reside in the household of a member of the credit union who is a
member of or retired member of this system or the State Teachers'
Retirement Plan. The credit union shall pay any costs that are in
addition to the normal charges required to enter into a contract with
the board. All the payments made by the credit union that are in
addition to the normal charges required shall be added to the total
amount appropriated by the Budget Act for the administrative expense
of this system. For purposes of this subdivision, a credit union is
not deemed to be a public agency unless it has entered into a
contract with the board pursuant to Chapter 5 (commencing with
Section 20460) prior to January 1, 1988. After January 1, 1988, the
board may not enter into a contract with any credit union as a public
agency.
   (h) Any county superintendent of schools that was a contracting
agency on July 1, 1983, and any school district or community college
district that was a contracting agency with respect to local
policemen, as defined in Section 20430, on July 1, 1983.
   (i) Any school district or community college district that has
established a police department, pursuant to Section 39670 or 72330
of the Education Code, and has entered into a contract with the board
on or after January 1, 1990, for school safety members, as defined
in Section 20444.
   (j) A nonprofit corporation formed for the primary purpose of
assisting the development and expansion of the educational, research,
and scientific activities of a district agricultural association
formed pursuant to Part 3 (commencing with Section 3801) of Division
3 of the Food and Agricultural Code, and the nonprofit corporation
described in the California State Exposition and Fair Law (former
Article 3 (commencing with Section 3551) of Chapter 3 of Part 2 of
Division 3 of the Food and Agricultural Code, as added by Chapter 15
of the Statutes of 1967).
   (k) (1) A public or private nonprofit corporation that operates a
regional center for the developmentally disabled in accordance with
Chapter 5 (commencing with Section 4620) of Division 4.5 of the
Welfare and Institutions Code.
   (2) A public or private nonprofit corporation, exempt from
taxation under Section 501(c)(3) of the Internal Revenue Code, that
operates a rehabilitation facility for the developmentally disabled
and provides services under a contract with either (A) a regional
center for the developmentally disabled, pursuant to paragraph (3) of
subdivision (a) of Section 4648 of the Welfare and Institutions
Code, or (B) the Department of Rehabilitation, pursuant to Chapter
4.5 (commencing with Section 19350) of Part 2 of Division 10 of the
Welfare and Institutions Code, upon obtaining a written advisory
opinion from the United States Department of Labor as described in
Section 20057.1.
   (3) A public or private nonprofit corporation described in this
subdivision shall be deemed a "public agency" only for purposes of
this part and only with respect to the employees of the regional
center or the rehabilitation facility described in this subdivision.
Notwithstanding any other provision of this part, the agency may
elect by appropriate provision or amendment of its contract not to
provide credit for service prior to the effective date of its
contract.
   (l) Independent data-processing centers formed pursuant to former
Article 2 (commencing with Section 10550) of Chapter 6 of Part 7 of
the Education Code, as it read on December 31, 1990. An agency
included pursuant to this subdivision shall only provide benefits
that are identical to those provided to a school member.
   (m) Any local agency formation commission.
   (n) A nonprofit corporation organized for the purpose of and
engaged in conducting a citrus fruit fair as defined in Section 4603
of the Food and Agricultural Code.
   (o) (1) A public or private nonprofit corporation that operates an
independent living center providing services to severely handicapped
people and established pursuant to federal P.L. 93-112, that
receives the approval of the board, and that provides at least three
of the following services:
   (A) Assisting severely handicapped people to obtain personal
attendants who provide in-home supportive services.
   (B) Locating and distributing information about housing in the
community usable by severely handicapped people.
   (C) Providing information about financial resources available
through federal, state and local government, and private and public
agencies to pay all or part of the cost of the in-home supportive
services and other services needed by severely handicapped people.
   (D) Counseling by people with similar disabilities to aid the
adjustment of severely handicapped people to handicaps.
   (E) Operation of vans or buses equipped with wheelchair lifts to
provide accessible transportation to otherwise unreachable locations
in the community where services are available to severely handicapped
people.
   (2) A public or private nonprofit corporation described in this
subdivision shall be deemed a "public agency" only for purposes of
this part and only with respect to the employees of the independent
living center.
   (3) Notwithstanding any other provisions of this part, the public
or private nonprofit corporation may elect by appropriate provision
or amendment of its contract not to provide credit for service prior
to the effective date of its contract.
   (p) A hospital that is managed by a city legislative body in
accordance with Article 8 (commencing with Section 37650) of Chapter
5 of Part 2 of Division 3 of Title 4.
   (q) The Tahoe Transportation District that is established by
Article IX of Section 66801.
   (r) The California Firefighter Joint Apprenticeship Program formed
pursuant to Chapter 4 (commencing with Section 3070) of Division 3
of the Labor Code.
   (s) A public health department or district that is managed by the
governing body of a county of the 15th class, as defined by Sections
28020 and 28036, as amended by Chapter 1204 of the Statutes of 1971.

   (t) A nonprofit corporation or association conducting an
agricultural fair pursuant to Section 25905 may enter into a contract
with the board for the participation of its employees as members of
this system, upon obtaining a written advisory opinion from the
United States Department of Labor as described in Section 20057.1.
The nonprofit corporation or association shall be deemed a "public
agency" only for this purpose.
   (u) An auxiliary organization established pursuant to Article 2.5
(commencing with Section 69522) of Chapter 2 of Part 42 of the
Education Code upon obtaining a written advisory opinion from the
United States Department of Labor as described in Section 20057.1.
The auxiliary organization is a "public agency" only for this
purpose.
   (v) The Western Association of Schools and Colleges upon obtaining
a written advisory opinion from the United States Department of
Labor as described in Section 20057.1. The association shall be
deemed a "public agency" only for this purpose.
   (w) The State Assistance Fund for Enterprise, Business, and
Industrial Development Corporation upon obtaining a written opinion
from the United States Department of Labor as described in Section
20057.1.
   (x) (1) A private nonprofit area agency on aging as described in
Section 9006 of the Welfare and Institutions Code upon obtaining a
written advisory opinion from the United States Department of Labor
as described in Section 20057.1.
   (2) The area agency on aging shall be deemed a "public agency"
only for purposes of this part and only with respect to the employees
of the agency.
   (3) Notwithstanding any other provision of this part, the area
agency on aging may elect by appropriate provision or amendment of
its contract not to provide credit for service prior to the effective
date of its contract.



20057.1.  To qualify as a "public agency" within the meaning of this
part, any organization that qualifies under amendments to the
definitions of "public agency" effective on or after January 1, 2002,
shall also obtain a written advisory opinion from the United States
Department of Labor stating that the organization is an agency or
instrumentality of the state or a political subdivision thereof
within the meaning of Sections 1001 et seq.  of Title 29 of the
United States Code.



20058.  (a) "Retirement system" or "this system" means the Public
Employees' Retirement System.
   (b) As used in this code and in every other statute heretofore or
hereafter enacted, or in every contract heretofore or hereafter
entered into under any provisions of law, the term "State Employees'
Retirement Law" shall be construed to refer to and mean the "Public
Employees' Retirement Law"; the term "State Employees' Retirement
System" shall be construed to refer to and mean the "Public Employees'
Retirement System"; and the term "State Employees' Retirement Fund"
shall be construed to refer to and mean the "Public Employees'
Retirement Fund."



20059.  "Regular interest" means interest at the annual interest
rate for purposes of crediting of interest, compounded annually.



20060.  "Retirement" means the granting of a retirement allowance
under this part.



20061.  "Retirement allowance" means the service retirement
allowance or the disability retirement allowance.



20062.  "Retirement fund" means the Public Employees' Retirement
Fund continued in existence by this part.



20062.5.  "Risk pool" means the combination of assets and
liabilities with respect to one or more contracting agencies for the
purpose of pooling actuarial experience and setting the employer
contribution rates pursuant to Section 20840.


20063.  (a) "School employer" means a county superintendent of
schools, other than the Los Angeles County Superintendent of Schools
and the San Diego County Superintendent of Schools, that has entered
into a contract with the board pursuant to Chapter 6 (commencing with
Section 20610) and any school district or community college district
that was a contracting agency on July 1, 1983, excluding that
portion of a contract with the Los Angeles City Unified School
District and the Los Angeles Community College District that pertains
to local police officers, as defined in Section 20430, on July 1,
1983, and excluding a school district or a community college
district, as defined in subdivision (i) of Section 20057, that
entered into a contract with the board on or after January 1, 1990,
and whose employees are school safety members, as defined in Section
20444.
   (b) Notwithstanding subdivision (a), "school employer" may not
include any county office of education, school district, or community
college district that participates in a risk pool.



20064.  "School safety service" includes service rendered as a
school safety member in employment with a school district or
community college district, as defined in subdivision (i) of Section
20057.


20065.  An employee is "serving on a part-time basis" when he or she
engages in his or her duties for less time than is required of
employees serving on a full-time basis, even though he or she is
subject to call at any time.


20066.  "State peace officer/firefighter service" means service
rendered as a state peace officer/firefighter member only while
receiving compensation for that service, except as provided in
Article 4 (commencing with Section 20990) of Chapter 11.  It also
includes service rendered in an employment in which persons have
since become state peace officer/firefighter members.



20067.  "State peace officer/firefighter service," with respect to a
member who becomes a state peace officer/firefighter member pursuant
to Section 20394, also includes service prior to July 1, 1986, as an
employee of the California State University.



20068.  (a) "State safety service" means service rendered as a state
safety member only while receiving compensation for that service,
except as provided in Article 4 (commencing with Section 20990) of
Chapter 11.  It also includes service rendered in an employment in
which persons have since become state safety members and service
rendered prior to April 1, 1973, and falling within the definition of
warden, forestry, and law enforcement service under this chapter
prior to April 1, 1973.  "State safety service" pursuant to this
subdivision does not include service as an investigator prior to
April 1, 1973, within the Department of Justice of persons who prior
to April 1, 1973, were classed as miscellaneous members.
   (b) "State safety service" with respect to a member who becomes a
state safety member pursuant to Section 20405 shall also include
service prior to the date on which he or she becomes a state safety
member as an officer or employee of the Board of Prison Terms,
Department of Corrections, Prison Industry Authority, or the
Department of the Youth Authority.
   (c) "State safety service" with respect to a member who becomes a
state safety member pursuant to Sections 20409 and 20410 shall also
include service in a class specified in these sections or service
pursuant to subdivision (a), prior to September 27, 1982.
   (d) "State safety service," with respect to a member who becomes a
state safety member pursuant to Sections 20414 and 20415, shall also
include service prior to September 22, 1982, as an officer or
employee of the Department of Parks and Recreation or the Military
Department.
   (e) "State safety service" does not include service in classes
specified in Section 20407 prior to January 1, 1989.
   (f) "State safety service" does not include service in classes
specified in Section 20408 prior to January 1, 1990.
   (g) "State safety service," with respect to a member who becomes a
state safety member pursuant to subdivision (b) of Section 20405.1,
shall also include service rendered in an employment in which persons
have since become state safety members, as determined by the
Department of Personnel Administration pursuant to that section.



20069.  (a) "State service" means service rendered as an employee or
officer (employed, appointed, or elected) of the state, the
California Institute for Regenerative Medicine and the officers and
employees of its governing body, the university, a school employer,
or a contracting agency, for compensation, and only while he or she
is receiving compensation from that employer therefor, except as
provided in Article 4 (commencing with Section 20990) of Chapter 11.

   (b) "State service," solely for purposes of qualification for
benefits and retirement allowances under this system, shall also
include service rendered as an officer or employee of a county if the
salary for the service constitutes compensation earnable by a member
of this system under Section 20638.
   (c) "State service" shall also include compensated service
rendered by an officer, warrant officer, or a person of the enlisted
ranks of the California National Guard who has elected to become a
member pursuant to Section 20326 and who has not canceled his or her
membership pursuant to Section 20327.



20069.1.  "Trial court" shall have the same meaning as the term is
defined in the Trial Court Employment Protection and Governance Act
(Chapter 7 (commencing with Section 71600) of Title 8).



20070.  "1959 survivor allowance" means the allowance provided for
in Sections 21571, 21572, 21573, 21574, 21574.5, and 21574.7.



20071.  "University" means the University of California and includes
The Regents of the University of California as defined and
authorized by Section 9 of Article IX of the California Constitution.