2007 California Government Code Article 1.4. Alternative Plan For Counties Of The 16th Class

CA Codes (gov:31486-31486.12)

31486.  (a) The retirement plan created by this article shall be
known as Retirement Plan 2.
   (b) This article shall be applicable in the retirement system of
any county of the 16th class as described by Sections 28020 and
28037, if the board of supervisors executes a memorandum of
understanding with employee representatives and adopts, by majority
vote, a resolution providing that the article shall be applicable.
   (c) The purpose of this article is to provide an optional,
noncontributory retirement plan for general members as an alternative
to the provisions and benefits otherwise contained in this chapter.

   (d) The retirement benefits of (1) all general members employed
after the date this article is made operative and who elect the plan
created by this article and (2) existing general members who transfer
to the plan herein created, shall be governed by this article.
   (e) In the event of a conflict, this article shall supersede and
prevail over  other provisions or application of provisions otherwise
contained in this chapter.
   (f) Except as otherwise provided in this subdivision, the
provisions contained in this chapter shall apply:
   (1) Article 9 (commencing with Section 31700) shall not apply.
   (2) Article 10 (commencing with Section 31720) shall not apply.
   (3) Article 11 (commencing with Section 31760) shall not apply.
   (4) Article 12 (commencing with Section 31780) shall not apply.
   (5) Article 16.5 (commencing with Section 31870)  shall not apply.

   (g) Article 15 (commencing with Section 31830) shall only be
applicable for service retirement.  Those provisions of Article 15
dealing with disability retirement, death benefits, and the
requirement relating to the deposit of accumulated member
contributions shall not be applicable.
   (h) Except as otherwise provided, any member who upon retirement
receives a retirement pension calculated in accordance with sections
or provisions added to this article subsequent to the effective date
of this article shall have his or her pension calculated under each
section or provision only for the period of time that those sections
or provisions were in effect, unless otherwise mutually agreed
between the employer and its employee representatives.
   (i) Unless specifically otherwise provided therein, no amendment
to this article enacted subsequent to the effective date of this
article shall apply to any county or to the employees of any county
unless and until mutually agreed to by the employer and employee
representatives and adopted by majority resolution of the board of
supervisors.


31486.1.  Unless the context otherwise requires, the definitions
contained in this section govern the construction of this article.
   (a) "Board" means the board of retirement.
   (b) "Employer" means the county or district or agency whose
employees are members of the retirement system of the county.
   (c) "Federal system" means the Old Age and Survivors Insurance
provisions of the Social Security Act.
   (d) "Final compensation" means the average annual compensation
earnable by a general member during any three years, whether or not
consecutive, elected by the member at or before the time an
application for retirement is filed or, if no election is made,
during the three years in which the member or former member last
earned compensation preceding retirement.  If a member or former
member has less than three years of service, final compensation shall
be determined by dividing total compensation by the number of months
of service credited to the member or former member and multiplying
by 12.  In no event shall final compensation  include any disability
benefits received by the member or former member under a disability
plan provided by the employer.
   (e) "Member" or "general member" means an employee hired on a
permanent  basis, as defined by the  employer, and eligible for
membership as defined by the board in accordance with subdivision (h)
of Section 31527, except an employee eligible for or employed in a
position eligible for safety membership as defined in Sections
31470.2 and 31470.4.
   (f) "Primary insurance amount" means the monthly retirement
benefit payable under the federal system at the age of 65.
   (g) "Service" means the period of uninterrupted  employment of a
member.  Except as otherwise provided, a member shall not be credited
with service for any period of time in which the member is absent
from work without pay.



31486.2.  (a) (1) Except as otherwise provided in Section 31486.3 or
31486.35, there shall be no general members' contributions under the
plan created by this article.
   (2) A member who transfers to the retirement plan created by this
article shall have refunded, within a reasonable period of time, not
to exceed nine months from the date of receipt of election to
transfer by the board, the member's accumulated contributions,
together with interest thereon, which are credited to the member's
account.  Interest shall be credited to the June 30 or December 31
date, whichever is later, immediately preceding the date of the
refund warrant. A refund under this section shall be payable to the
member.
   (3) A member who has five or more years of county service as
defined in subdivision (g) of Section 31486.1 may elect to leave his
or her contributions on deposit for service retirement benefits only.

   (b) (1) Except as provided in Sections 31486.3 and 31486.9 and
under reciprocal provisions of this article, a member who was in
public service prior to becoming a member may not elect to receive
credit in this retirement plan for that public service time, and may
not receive credit for that prior public service.
   (2) Absence from work without pay may not be considered as
breaking the continuity of service.



31486.3.  (a) An active member governed by the provisions of this
article may elect, by written notice filed with the board, to make
contributions and receive credit under this plan for service for
which he or she would not otherwise be entitled to receive credit
pursuant to this article.
   (b) A member who elects to receive service credit pursuant to this
section shall have the same purchase rights and shall contribute to
the retirement fund the amount that a member in the contributory plan
wishing to purchase the same service would have to contribute, based
on the rates applicable to a member of the contributory plan with
the same date of entry into membership. Payment shall be made by
lump-sum payment or by installment payments over a period not to
exceed 10 years, prior to the effective date of his or her retirement
or, if applicable, prior to the date provided in Section 31485.7.
   (c) No member may receive any service credit under this section
for which he or she has not completed payment pursuant to subdivision
(b) before the effective date of his or her retirement or, if
applicable, before the date provided in Section 31485.7. Subject to
the limitations of federal law, a member who has elected to make
payments in installments may complete payment by lump sum at any time
prior to the effective date of his or her retirement.
   (d) Any sums paid by a member pursuant to this section shall be
considered to be and administered as contributions by the member.
   (e) As used in this section, the "contributory plan" means that
contributory plan otherwise available to new members of the system on
the election date.
   (f) This section is not operative until the board of supervisors
elects, by resolution adopted by a majority vote, to make this
section operative in the county.



31486.35.  (a) An active member may elect, by written notice filed
with the board, to make contributions pursuant to this section and to
receive up to five years of service credit in the retirement system
for additional retirement credit, if the member has completed at
least five years of credited service with that retirement system.
   (b) As used in this section, "additional retirement credit" means
time that does not otherwise qualify as county service, public
service, military service, medical leave of absence, or any other
time recognized for service credit by the retirement system.
   (c) Notwithstanding any other provision of this chapter, service
credit for additional retirement credit may not be counted to meet
the minimum qualifications for service retirement or for purposes of
establishing eligibility for benefits based on 30 years of service,
additional ad hoc cost-of-living benefits based on service credit,
health care benefits, or any other benefits based upon service
credit.
   (d) A member who elects to make contributions and receive service
credit for additional retirement credit shall contribute to the
retirement fund, prior to the effective date of his or her
retirement, by lump-sum payment or by installment payments over a
period not to exceed 10 years, an amount that, at the time of
commencement of purchase, in the opinion of the board and the
actuary, is sufficient to not place any additional financial burden
upon the retirement system.
   (e) No member may receive service credit under this section for
additional retirement credit that he or she has not completed payment
pursuant to subdivision (d) before the effective date of his or her
retirement or, if applicable, prior to the date provided in Section
31485.7. Subject to the limitations of United States Internal Revenue
Service regulations, a member who has elected to make payment in
installments may complete payment by lump sum at any time prior to
the effective date of his or her retirement.
   (f) Sums paid by a member pursuant to this section shall be
considered to be and administered as contributions by the member.
   (g) This section is not operative in a county until the board of
supervisors, by resolution adopted by majority vote, makes this
section applicable in the county.


31486.4.  (a) Retirement of a member or former member who has met
the requirements for age and service shall be made by the board, at
which time the member or former member becomes a retired member.
   (b) Any member who has completed 10 years of service shall be
vested under the plan created by this article.
   (c) Any vested member or vested former member who has attained the
age of 65 years may be retired upon filing with the board a written
application on a form provided by the board for normal retirement
setting forth the desired effective retirement date.
   (d) Any vested member or vested former member who has attained the
age of 55 years may be retired upon filing with the board a written
application on a form provided by the board for early retirement
setting forth the desired effective retirement date.
   (e) The normal retirement pension shall consist of an annual
allowance payable in monthly installments for the life of the retired
member equal to 2 percent of his or her final compensation
multiplied by the number of years of service to the preceding
completed month to which the member is entitled to be credited at
retirement, not to exceed 35 years, added to 1 percent of the member'
s final compensation multiplied by the number of years of service in
excess of 35, not to exceed 10 years, reduced by the estimated
primary insurance amount, if any, multiplied by the fraction of the
number of years of service with the employer subject to coverage
under the federal system, not to exceed 35 years, divided by 35.
   In no event shall the normal retirement pension, when added to the
estimated primary insurance amount, exceed 70 percent of the member'
s final compensation unless the years of service to which the member
is entitled to be credited at retirement exceeds 35, in which case
the normal retirement pension, when added to the estimated primary
insurance amount, shall not exceed 80 percent of the member's final
compensation.
   (f) The early retirement pension shall consist of an annual
allowance payable in monthly installments for the life of the retired
member in an amount which is the actuarial equivalent of the normal
retirement pension to which the retired member would be entitled if
otherwise eligible for normal retirement, which shall be computed by
multiplying the normal retirement pension by the early retirement
adjustment factor set forth opposite the member's age as of the
birthday immediately preceding the date of retirement, in the
following table:


           Age                              ERA Factor
           55 ..............................   .39
           56 ..............................   .43
           57 ..............................   .47
           58 ..............................   .51
           59 ..............................   .56
           60 ..............................   .61
           61 ..............................   .67
           62 ..............................   .74
           63 ..............................   .82
           64 ..............................   .90

   The ERA Factors set forth in this subdivision shall be used until
adjusted by the board in accordance with the interest and mortality
tables adopted by the board.
   (g) The board, upon the advice of the actuary, shall establish and
adjust, as required, the table of estimated primary insurance
amounts, which shall be utilized in computing the retirement benefit.
  For purposes of this article, the primary insurance amount shall be
estimated based on the employee's age and salary as of the date of
retirement or the date of termination of a vested member, whichever
is applicable, provided that:
   (1) An employee's prior career earnings shall be assumed to have
been subject to the federal system and to have increased on a
year-to-year basis at a rate equivalent to the rate of increase in
the average per worker total wages reported by the Social Security
Administration, and
   (2) For those members who have not attained the normal retirement
age under the federal system as of the date of retirement (i) future
earnings in employment covered by the federal system shall be assumed
to continue at the rate of pay received by the employee from the
employer as of the date of retirement or the date of termination of a
vested member, whichever is applicable, and (ii) future wage bases,
as defined by the federal system, shall be assumed to continue at the
wage base in effect in the year of retirement or the year of
termination of a vested member, whichever is applicable, and (iii)
cost-of-living increases in the year of retirement and delayed
retirement credit provided under the federal system shall not be
included in the calculation of the estimated primary insurance
amount.
   (h) The employer shall certify the years of service to be credited
at retirement and the final compensation to be utilized in computing
the normal and early retirement pension.
   (i) At the time of application for retirement, the member or
former member shall provide adequate proof (1) of age and (2) of the
eligibility of persons, if any, who at that time would otherwise
qualify for the survivor allowance provided for in Section 31486.6.
   (j) Notwithstanding subdivision (e) of Section 31486.4, any
retired member receiving a normal retirement pension shall, as soon
as possible but not later than six months following retirement,
present evidence required by the board of the retired member's actual
primary insurance amount.  For purposes of this subdivision, the
actual primary insurance amount shall be the amount payable under the
federal system on the retired member's date of retirement without
regard to delayed retirement credit or any deductions on account of
work.  Following receipt of that evidence, the board shall adjust the
retired member's pension from the date of retirement to equal the
amount of the pension to which he or she would have been entitled on
that date had the estimated primary insurance amount equaled the
actual primary insurance amount.



31486.5.  A member who retires for service prior to the age of
becoming eligible for benefits described under subdivision (f) of
Section 31486.1 may, with the approval of the board, elect to have
the retirement pension increased prior to the eligible age and
reduced after that age by amounts which have equivalent actuarial
values.  This modification is for the purpose of coordinating a
member's retirement pension with that received from the federal
system.


31486.6.  (a) Upon the death of a retired member, 50 percent of the
retirement pension, if not modified in accordance with the optional
survivor allowance in subdivision (c), shall be continued during and
throughout the life of his or her surviving spouse, if he or she was
married to the member at least one year prior to the date of
retirement.  If there is no surviving spouse entitled to this
allowance, or if he or she dies before every child of the deceased
retired member, including stepchild or adopted child, attains the age
of 18 years, then the allowance that the surviving spouse would have
received had she or he lived, shall be paid to the deceased retired
member's child or children under the age of 18 years.  If the
survivor allowance is to be paid to surviving children, the allowance
shall be divided among the children in equal amounts.  However, the
right of any child to share in the allowance shall cease upon the
death or marriage of the child or upon the child attaining the age of
18 years.
   Notwithstanding any other provisions of this subdivision, the
allowance otherwise payable to the children of the retired member
shall be paid to the children through the age of 21 years, if the
children remain unmarried and are regularly enrolled as full-time
students in any accredited school as determined by the board.
   (b) If, upon the death of a retired member, there is no surviving
spouse or child entitled to the allowance under this section, and the
total retirement allowance income received by the member during his
or her lifetime did not exceed his or her accumulated normal
contributions, if any, the member's designated beneficiary shall be
paid an amount equal to the excess of his or her accumulated normal
contributions over his or her total retirement allowance income.
   (c) A vested member, or vested former member, in lieu of the
normal or early retirement pension for the retired member's life
alone, may elect to have the  actuarial equivalent of the retired
member's pension as of the date of retirement applied to a lesser
amount payable throughout the retired member's life, and thereafter
to have a survivor allowance as approved by the board, upon the
advice of the actuary, continued throughout the life of and paid to
the person or persons having an insurable interest in the life of the
retired member, as the member or former member nominates by written
designation duly executed and filed with the board at the time of
retirement.
   (d) Designations pursuant to subdivision (c) shall not, in the
opinion of the board and the actuary, place any additional burden
upon the retirement system.



31486.7.  Notwithstanding any other provisions, upon the death of a
member before retirement while in service, the designated beneficiary
shall receive a death benefit equal to one month's final
compensation as defined in subdivision (d) of Section 31486.1 for
each year of service completed up to a maximum of six months.




31486.8.  Any person employed subsequent to the effective date of
this article who would otherwise qualify as a member shall not become
a member until that person certifies to the board an election to be
covered by the retirement plan established by this article or to be
covered by the retirement provisions and benefits otherwise available
to members on the date preceding the effective date of this article.
  As a condition of continued employment, the certification shall be
made within 60 days of employment.  The employer shall make available
to the person a disclosure of the elements of each of the available
retirement plans prior to accepting the election.



31486.9.  (a) General members may, within 180 days of the effective
date of this article, elect to transfer to the retirement plan
created by this article upon  proper application executed by the
member and filed with the board.  The transfer is voluntary and shall
be irrevocable.
   (b) The retirement benefits of the transferred members are
governed and defined by this article.
   (c) Transferring members relinquish and waive any and all
previously available vested or accrued retirement, survivor,
disability and death benefits.  However, notwithstanding any other
provision of this article, a transferring member may elect to receive
credit and a retirement benefit as determined by the former
retirement system for public service credit received by leaving
contributions on deposit or a refund of contributions and relinquish
public service credit.


31486.10.  A member upon becoming vested under this article may
elect to terminate and defer accrued benefits for the purpose of
future service retirement benefits only, and enter membership of the
contributory retirement provisions in effect for new members at the
time of transfer.  Notwithstanding any other provisions, the rate of
contributions shall be based on age nearest birthday at the time of
election to transfer.



31486.11.  Until the completion of the next regularly scheduled
actuarial survey of the retirement system, the employer contribution
required to finance the plan created by this article shall be
established by the board, upon the recommendation of the actuary.




31486.12.  If any provision of this article, or the application
thereof, to any person or circumstances, is held invalid, the
invalidity shall not affect other provisions or application of the
article which can be given effect without the invalid provisions or
application and, to this end the provisions of this article are
severable.