2009 California Government Code - Section 31770-31779.3 :: Article 11.5. Deferred Retirement Option Program

31770.  This article shall be known and may be cited as the
"Deferred Retirement Option Program."

31770.1.  (a) The Deferred Retirement Option Program is hereby
created to provide eligible members who elect to participate in the
program access to a lump sum, or in some cases, additional monthly
payments for a specified period in addition to a monthly retirement
allowance.
   (b) The design and administration of the Deferred Retirement
Option Program shall conform to the applicable provisions of Title 26
of the United States Code and the Revenue and Taxation Code.
   (c) If any provision of this article or application thereof to any
person or circumstance is held invalid, that invalidity will not
affect other provisions or applications of this article that can be
given effect without the invalid provisions or application, and to
this end the provisions of this article are severable.

31770.2.  Unless the context otherwise requires, the definitions
contained in this section govern the construction of this article:
   (a) "DROP" or "program" means the Deferred Retirement Option
Program established by this article, as adopted by a county or
district.
   (b) "Election date" means the date the member elects to
participate in the program.
   (c) "Deferred retirement calculation date" means the date prior to
the member's actual retirement date, as of which benefits under the
program shall be calculated as provided in Section 31778.1.
   (d) "Implementing ordinance" means the ordinance or resolution
adopted by the county board of supervisors or governing board of the
district, pursuant to Section 31770.3, providing for the
implementation of the program in the county or district and
specifying the applicable program options as provided in this
article.
   (e) "Participant" means any eligible safety member of the system
described in Section 31469.4, 31470.2, or 31470.4 who has validly
elected to participate in the program.
   (f) "Program account" means the account established by the system
for each participant of the program pursuant to Section 31772.
   (g) "Program period" means the period of time commencing on the
election date and ending on the member's retirement date, which
period may not exceed 60 months of elapsed time.
   (h) "Retirement date" means the date the member terminates
employment and retires from the system.

31770.3.  (a) This article, or selected provisions of this article,
shall become effective in any county or district only when the county
board of supervisors or governing board of the district adopts an
ordinance or resolution providing for that implementation. The board
of supervisors or governing board may not adopt that ordinance or
resolution, and this article, or selected portions of this article,
may not become effective in the county or district unless and until
the actuarial analysis described in Section 31770.4 has been
completed and has determined that the program, as proposed to be
adopted by the county or district, will be cost neutral and agreed to
in a collective bargaining agreement.
   (b) Based on the actuarial analysis, the requirement of cost
neutrality, and the collective bargaining agreement, the county or
district shall, in the implementing ordinance, elect one of the
following for each bargaining unit other than a bargaining unit whose
members are described in Section 31470.4:
   (1) To be subject to the provisions of this article, including the
forward DROP provisions contained in Sections 31771 to 31776.5,
inclusive, but excluding the actuarial equivalent DROP provisions
contained in Section 31777 and excluding the backward DROP provisions
contained in Sections 31778 to 31778.2, inclusive.
   (2) To be subject to the provisions of this article, including the
actuarial equivalent DROP provisions contained in Section 31777, but
excluding the forward DROP provisions contained in Sections 31771 to
31776.5, inclusive, and excluding the backward DROP provisions
contained in Sections 31778 to 31778.2, inclusive.
   (3) To be subject to the provisions of this article, including the
backward DROP options contained in Sections 31778 to 31778.2,
inclusive, but excluding the forward DROP provisions contained in
Sections 31771 to 31776.5, inclusive, and excluding the actuarial
equivalent DROP provisions contained in Section 31777.
   (c) With respect to a bargaining unit whose members are described
in Section 31470.4, the county or district may, in the implementing
ordinance, be subject only to the provisions of this article as
provided in paragraph (3) of subdivision (b).
   (d) The program shall become operative with respect to all safety
members of the system on the date specified in the implementing
ordinance.
   (e) The implementing ordinance shall specify a period of time,
which shall be at least four years and not more than 10 years from
the date of implementation, after which an initial review of the
program shall be conducted pursuant to Section 31779.

31770.4.  (a) The board shall, upon the request of, and before
adoption of, the implementing ordinance by the county board of
supervisors or governing board of the district, cause an actuarial
analysis to be conducted to determine whether the program, as
proposed to be adopted, will be cost neutral. A proposed program
shall be deemed to be cost neutral if, based on the applicable
actuarial assumptions, it will not have a significant negative
financial impact on the members, employer, or the retirement system,
as specified in subdivision (b).
   (b) The actuarial analysis shall take into account the impact of
the proposed program on specific measures, including, but not limited
to, employer contributions, the system's actuarial accrued
liability, and the present value of benefits. A proposed program will
not be deemed to be cost neutral if there is any anticipated
increase in any of these measures attributable to the implementation
of the program or if there is a decrease in the present value of
benefits of more than 3 percent attributable to the implementation of
the program.
   (c) The actuarial analysis shall identify all cost elements
expected to change due to the implementation of the program and shall
include the impact of those changes. These may include, but are not
limited to, cost elements such as benefit payments, expected
retirement age, and the likelihood of termination or disability by
those near retirement age. The analysis may not take into account
items unrelated to the proposed programs, including the investment
return on fund assets or the life expectancy of currently retired
members.
   (d) As used in this section:
   (1) "Actuarial accrued liability" means the portion of the present
value of benefits attributable to service before the valuation date.
   (2) "Present value of benefits" means the value, as of the
valuation date, of all benefits expected to be paid to current
members of the system.

31770.5.  (a) The implementing ordinance shall establish the
eligibility requirements for participation in the program, subject to
this section and the collective bargaining agreement. The ordinance
shall specify the minimum age and the minimum and maximum, if any,
years of service credit required to be eligible to participate in the
program, which minimum and maximum, if any, may not be less than the
minimum age and service credit requirements for service retirement.
   (b) Members shall be eligible to elect to participate in the
program at any time after the attainment of the minimum age and years
of credited service in the system specified in the implementing
ordinance. Members who satisfy the eligibility requirements on the
implementation date of the program, as set forth in the implementing
ordinance, shall be eligible to elect to participate in the program
as of the operative date of the program.
   (c) Prior service purchased pursuant to this chapter and service
performed by the member under another public retirement system shall
be included for purposes of determining eligibility for the program
to the extent provided in Section 31836.
   (d) Members who have left county or district service and who have
elected deferred retirement pursuant to Article 9 (commencing with
Section 31700) will not be eligible to participate in the forward
DROP provisions unless they return to county service during the
operative period of the program.

31770.6.  (a) Upon adoption of the implementing ordinance, the
retirement system shall establish procedures for notifying members of
their rights under the program.
   (b) Each member, before electing to participate in the program,
shall be given written information regarding how benefits under the
program would be calculated and a comparison of the member's
anticipated benefits at retirement with and without participation in
the program. All members will be advised to seek advice from
professional tax and investment advisors before electing to
participate in the program.

31770.7.  The right of a participant to benefits under the program
is not subject to execution or any other process, except to the
extent permitted by Section 704.110 of the Code of Civil Procedure,
and is unassignable except as specifically provided under this
chapter.

31770.8.  The rights of a participant or his or her spouse under the
program shall be subject to any applicable provisions of law or
court orders relating to dissolution of marriage, division of
community property, and child or spousal support.

31771.  The provisions of this section to Section 31776.5,
inclusive, shall be referred to collectively as the "forward DROP
provisions."

31771.1.  (a) Any member who elects to participate in the forward
DROP provisions of the program shall make the election on a form
prescribed and retained by the board. On that form the member shall
do all of the following:
   (1) Designate a program period that will not exceed 60 months of
elapsed time, agree to terminate covered employment under the system
no later than the end of that designated period, and acknowledge that
participation in the program is not a guarantee of continued
employment for any period.
   (2) Waive any claims with respect to age and other discrimination
in employment laws relative to the program as are required by the
employer or the system.
   (3) Waive the right to disability retirement benefits based on a
condition relating to an illness or injury that occurred prior to the
program period. This waiver does not apply to any rights the member
may have under Section 31720.5, 31720.6, or 31720.7, which rights
shall remain in effect until the member receives a distribution of
some or all of the balance in his or her program account.
   (b) If the member is married, the member's spouse shall execute a
statement, on a form prescribed by the board, acknowledging the
spouse's understanding of, and agreement with, the member's election
to participate in the program, together with an express statement of
the spouse's understanding and agreement that benefits payable to the
spouse upon the death of the member will be reduced as a result of
that participation.

31771.2.  (a) On and after the election date, the participant shall
cease to accrue retirement benefits under this chapter, and instead
shall begin to accrue benefits under the program pursuant to the
terms of this article, which benefits shall be credited to the
participant's program account pursuant to Section 31772.
   (b) A member's election to participate in the program shall be
irrevocable except in the following circumstances:
   (1) If the member is married on the election date and if that
spouse dies during the program period, the member may, within 90 days
after the spouse's death, elect to revoke his or her election to
participate in the program. In that case, the member's benefits shall
be calculated on retirement as if the member had never entered the
program.
   (2) If the member elects to retire for disability under the
circumstances described in Section 31774, the member's participation
in the program shall cease and the member may apply for conversion of
the deferred retirement allowance to a disability allowance
calculated at date of entry into the program, and the employee shall
retain all proceeds in the program account.
   (c) (1) A participant in the program shall have all of the rights,
privileges, and benefits, and is subject to all terms and conditions
of active employment including, but not limited to, eligibility for
other benefit programs not related to retirement benefits, seniority,
accrual and use of vacation and sick leave, and pay increases.
   (2) A participant shall continue to make normal member
contributions under this chapter during the program period.
   (d) Except as otherwise provided in Section 31773, eligibility of
a spouse for any benefits, including survivor's benefits shall be
based on the participant's marital status and the duration of the
marriage as of the retirement date.

31771.3.  The implementing ordinance shall specify, based on the
results of the actuarial analysis and the requirement that the
program be cost neutral, as described in Section 31770.4, whether the
employer shall be required to continue to make contributions to the
system with respect to the compensation of participants in the
program and whether that compensation shall be included in the
determination of employer contribution rates.

31772.  (a) A program account shall be established within the system
for each participant. No system assets shall be separately
segregated for any program account. A participant may not have a
claim on any specific assets of the system.
   (b) A participant's program account shall be credited with an
amount equal to the service retirement allowance the member would
have received if the member had retired for service on the election
date and had selected an unmodified allowance, subject to the
following:
   (1) Sick leave and vacation time accrued by the member as of the
election date may not be included in the calculation of service
credit or final compensation for the retirement time where the member
enters the program, except as otherwise provided in a collective
bargaining agreement.
   (2) The provisions of Article 15 (commencing with Section 31830)
may not apply in the calculation of the participant's final
compensation.
   (c) Subject to the results of the actuarial analysis and the
requirement that the program be cost neutral, the implementing
ordinance may provide that some or all of the following amounts shall
also be credited monthly to the participant's program account:
   (1) Some or all of the normal member contributions under this
chapter made by, or on behalf of, the participant during the program
period.
   (2) Some or all of the employer contributions to the system made
on account of the participant during the program period.
   (3) Some or all of the annual cost-of-living adjustments the
member would have received if the member had retired for service on
the election date and selected an unmodified allowance.
   (4) Interest. If the implementing ordinance provides for the
crediting of interest, it shall be credited semiannually at a rate
that is equal to: (A) the interest rate, if any, applicable to
employee contributions to the system, or (B) a fixed rate specified
in the implementing ordinance, or (C) a rate determined semiannually
by the retirement board.

31772.1.  The board shall provide a statement to the participant
that displays the value or balance of the participant's program
account and summarizes any credits to the account or other
transactions that occurred after the immediately preceding valuation
date. The statement of account shall be provided at least once
annually to each participant, and may be provided more often.

31773.  (a) If a participant dies during the program period, he or
she shall be deemed to have died while eligible for retirement and
his or her benefits shall be calculated as if in active service,
except as provided in subdivisions (b) and (c).
   (b) Benefits under Article 12 (commencing with Section 31780) or,
if applicable, Section 31765, 31765.1, or 31765.11 shall be
calculated as if the participant had died on the election date.
Notwithstanding the foregoing, eligibility of a spouse for any
benefits shall be based on the participant's marital status and the
duration of the marriage as of the actual date of death.
   (c) The balance in the participant's program account shall be
distributed pursuant to Section 31776.4.

31774.  If a participant becomes eligible for disability retirement
due to an injury or illness occurring during the program period or
pursuant to Section 31720.5, 31720.6, or 31720.7, the participant
shall elect to either:
   (a) Retire for disability, in which case the participant may apply
for conversion of the deferred retirement allowance to a disability
allowance calculated at the election date and the employee shall
retain all of the proceeds in the program account.
   (b) Retire for service, in which case the participant shall waive
any rights he or she may have to disability retirement benefits,
except as provided in Section 31720.5, 31720.6, or 31720.7, and shall
be entitled to a distribution of the balance in his or her program
account and a monthly retirement allowance, as provided in Section
31776.1.

31775.  Participation in the program shall be terminated, and the
member will not have a right or claim to any continuing benefits
under the program upon the first occurrence of any of the following
events:
   (a) Revocation of participation, as provided in subdivision (b) of
Section 31771.2.
   (b) Involuntary termination of employment. If a termination for
cause is reversed, a member's participation in the program shall be
reinstated and the member shall be made whole for the duration of the
original program period, as designated by the member upon entry into
the program.
   (c) Commencement of disability retirement benefits, as provided in
subdivision (a) of Section 31774.

31776.  Participation in the program shall be completed and the
participant shall be entitled to benefits under the program upon the
first occurrence of either of the following during the program
period:
   (a) Retirement of the participant for service.
   (b) Death of the participant.

31776.1.  Upon termination of employment and retirement for service
under the system, a participant shall:
   (a) Receive a distribution, in the manner prescribed in Section
31776.3, of the balance in the participant's program account.
   (b) Begin receiving a monthly retirement allowance in an amount
calculated pursuant to Section 31776.2.
   (c) Waive the right to any disability retirement benefits from the
system, except for postretirement disability rights. This waiver
does not include any rights the member may have pursuant to Sections
31720.5, 31720.6, and 31720.7.

31776.2.  The participant's monthly allowance shall be an amount
equal to the monthly allowance the participant would have received if
he or she had retired for service on the election date, subject to
the following:
   (a) Any unused sick leave or vacation leave that accrued as of the
election date and was not used by the participant during the program
period may be included in the calculation of the participant's
allowance in accordance with a collective bargaining agreement,
subject to other retirement rules for members not participating in
the program.
   (b) The participant's allowance may be adjusted in accordance with
the implementing ordinance for some or all of the cost-of-living
adjustments that the participant would have received during the
program period as if the participant had retired on the election
date.
   (c) The participant's allowance shall be adjusted based on any
election by the participant of any optional retirement allowance
pursuant to Article 11 (commencing with Section 31760). The
adjustment shall be based on the ages of the participant and, if
applicable, the participant's spouse or beneficiary as of the
retirement date.
   (d) The provisions of Article 15 (commencing with Section 31830)
shall apply for purposes of calculating the participant's allowance.
The participant shall be deemed to have retired on the retirement
date for purposes of determining whether the member retired
concurrently under both systems as required under this article.

31776.3.  (a) Unless the implementing ordinance otherwise provides,
the balance in the participant's program account shall be distributed
to the participant in a single lump-sum payment at the time of
retirement. If requested by the participant, the payment may be
immediately deposited into a qualified tax-deferred account
established by the participant.
   (b) The implementing ordinance may provide one or more of the
following optional forms of distribution for a participant's account:
   (1) Substantially level installment payments over 240 months
starting with the date that the member leaves DROP. The balance in
the participant's account during the installment payout period shall
be credited with interest at the same rate, if any, as is being
credited to program accounts for currently active members. A
cost-of-living adjustment may not be made to the monthly amount being
paid pursuant to this paragraph.
   (2) An annuity in a form established by the board and subject to
the applicable provisions of the Internal Revenue Code that shall be
the actuarial equivalent of the balance in the participant's program
account on the retirement date. The "actuarial equivalent" under this
paragraph shall be determined on the same basis as is used for
determining optional settlements at retirement for a member's monthly
retirement allowance.
   (c) Notwithstanding any other provision of this article, a
participant, nonparticipant spouse, or beneficiary may not be
permitted to elect a distribution under this article that does not
satisfy the requirements of Section 401(a)(9) of Title 26 of the
United States Code, including the incidental death benefit
requirements of Section 401(a)(9)(G) and the regulations thereunder.
   (d) The required beginning date of distributions that reflect the
entire interest of the participant shall be as follows:
   (1) In the case of a lump-sum distribution to the participant, the
lump-sum payment shall be made, at the participant's option, not
later than April 1 of the calendar year following the later of the
calendar year in which the participant attains the age of 70 1/2
years (or age determined by the Internal Revenue Service) or the
calendar year in which the participant terminates all employment for
the employer.
   (2) In the case of a distribution to the participant in the form
of installment payments or an annuity, payment shall begin, at the
participant's option, not later than April 1 of the calendar year
following the later of the calendar year in which the participant
attains age 70 and one-half years (or age determined by the Internal
Revenue Service) or the calendar year in which the participant
terminates all employment subject to coverage by the plan.
   (3) In the case of a benefit payable on account of the participant'
s death, distribution shall be paid at the option of the beneficiary,
no later than December 31 of the calendar year in which the first
anniversary of the participant's date of death occurs unless the
beneficiary is the participant's spouse in which case distributions
shall commence on or before the later of either of the following:
   (A) December 31 of the calendar year immediately following the
calendar year in which the participant dies.
   (B) December 31 of the calendar year in which the participant
would have attained the age of 70 and one-half years (or age
determined by the Internal Revenue Service).

31776.4.  (a) A participant may designate a person or persons as
beneficiaries of the balance in the participant's program account at
any time during the program period. Any beneficiary or beneficiaries
shall be designated on a form prescribed by the board, signed by the
participant, and filed with the board.
   (b) The participant's beneficiary designation may not be given
effect and shall be overridden to the extent that designation would
impair the rights of any surviving spouse or surviving minors under
applicable federal or state law.
   (c) Unless otherwise provided in the beneficiary designation form,
each designated beneficiary shall be entitled to equal shares of the
lump-sum distribution that shall be payable from the participant's
program account upon the death of the participant.
   (d) The nomination of a beneficiary or beneficiaries under this
section may be revoked at the pleasure of the person who made the
nomination and a different beneficiary or beneficiaries may be
nominated by a written designation duly executed and filed with the
board.
   (e) If the participant dies without a valid beneficiary
designation on file, or if no designated beneficiary survives the
participant, any balance remaining in the participant's account shall
be payable to the participant's estate.

31776.5.  The final compensation calculated under Section 31776.2
shall be the member's final compensation for purposes of calculating
any reciprocal benefits due the member from another retirement system
pursuant to Article 15 (commencing with Section 31830).

31777.  (a) The provisions of this section shall be referred to as
the "actuarial equivalent DROP provisions."
   (b) A member who retires for service on or after the operative
date of the program may elect, on a form prescribed by the board, to
receive a lump-sum payment and an actuarially reduced monthly
allowance pursuant to this section in lieu of the monthly allowance
that would otherwise be payable to the member pursuant to this
chapter.
   (c) A member who has elected to participate in the forward DROP
provisions of the program, pursuant to Sections 31771 to 31776.5,
inclusive, or the backward DROP provisions of the program, pursuant
to Sections 31778 to 31778.2, inclusive, is not eligible to make the
election provided under this section.
   (d) (1) A member who makes the election described in this section
shall receive a one-time lump-sum payment at the time of retirement
in an amount chosen by the member that may not exceed the maximum
amount specified in the implementing ordinance, as provided in
subdivision (e).
   (2) The amount of the lump-sum payment shall be calculated in
accordance with the implementing ordinance.
   (e) The implementing ordinance shall prescribe one of the
following amounts as the maximum amount of the lump-sum payment under
this section:
   (1) The aggregate amount of the member's contributions to the
system, plus interest if applicable.
   (2) The actuarial present value of 20 percent of the monthly
allowance otherwise payable to the member under this chapter.
   (3) An amount that would cause the member's monthly allowance
under this chapter to be actuarially reduced to an amount equal to 50
percent of the member's final compensation.
   (f) Notwithstanding any other provision of this chapter, a member
who makes the election described in this section shall receive a
monthly allowance pursuant to this chapter that shall be actuarially
reduced to reflect the lump-sum amount paid under subdivision (d).

31778.  The provisions of this section through those of Section
31778.2, inclusive, shall be referred to collectively as the
"backward DROP provisions." A member who retires on or after the
effective date of the program may elect upon application for service
or disability retirement, on a form prescribed by the board, to
receive:
   (a) A backward DROP payment calculated under Section 3l778.1.
   (b) A monthly retirement allowance calculated as if the member had
retired on the deferred retirement calculation date, except that the
retirement formula applicable to the member's service as of the
election date shall be used to calculate the amount of the member's
monthly retirement allowance.

31778.1.  A member who makes the election described in Section 31778
shall receive a one-time lump-sum payment upon retirement in an
amount as calculated below.
   (a) A participant's program account shall be credited with an
amount equal to the retirement allowance the member would have
received if the member had retired on the deferred retirement
calculation date and had selected an unmodified allowance.
   (b) The cost-of-living adjustments that would have been applicable
during that period shall be included, applying the deferred
retirement calculation date as the base year for the adjustment.
   (c) All of the normal contributions that the member made under
this chapter, plus interest applicable during the period from the
deferred retirement calculation date to the election date.
   (d) Some or all of the employer contributions made on account of
the participant under this chapter, as agreed to in a collective
bargaining agreement, plus interest applicable for the period from
the deferred retirement calculation date to the election date.
   (e) The member's program payment shall be the amount calculated
under subdivision (a) multiplied by the number of months in the
deferred retirement period, plus the cost-of-living adjustment
calculated under subdivision (b), the member contributions calculated
under subdivision (c), and the employer contributions calculated
under subdivision (d). The amount shall also include interest at a
rate agreed upon in the collective bargaining agreement and adopted
by the board of retirement, applicable to the amounts derived from
subdivisions (a) and (b), for the period from the deferred retirement
calculation date to the election date. The program payment shall
also be credited with interest at a rate established by the board for
the period from the election date until the payment is made.

31778.2.  (a) If a participant dies during the period from the
deferred calculation date to the election date, he or she shall be
deemed to have died while eligible for the deferred retirement option
and the participant's eligible spouse or other beneficiary shall be
qualified to elect the deferred retirement option under Section 31778
as if the participant were still living, except as provided in
subdivisions (b) and (c).
   (b) Benefits under Article 12 (commencing with Section 31780) or,
if applicable, Section 31765, 31765.1 or 31765.11 shall be calculated
as if the participant had died on the deferred retirement
calculation date. Notwithstanding the foregoing, eligibility of a
spouse for any benefits shall be based on the participant's marital
status and the duration of the marriage as of the actual date of
death.
   (c) The balance in the participant's program account shall be
distributed pursuant to Section 31778.3.

31778.3.  (a) A participant may designate a person or persons as
beneficiaries of the participant's program account at any time during
the period from the deferred retirement calculation date to the
election date. The beneficiary or beneficiaries shall be designated
on a form prescribed by the board, signed by the participant, and
filed with the board.
   (b) The participant's beneficiary designation may not be given
effect, and shall be overridden, to the extent that designation would
impair the rights of any surviving spouse or surviving minors under
applicable federal or state law.
   (c) Unless otherwise provided in the beneficiary designation form,
each designated beneficiary shall be entitled to equal shares of the
lump-sum distribution that shall be payable from the participant's
program account upon the death of the participant.
   (d) The nomination of a beneficiary or beneficiaries under this
section may be revoked at the pleasure of the person who made the
nomination, and a different beneficiary or beneficiaries may be
nominated by a written designation duly executed and filed with the
board.
   (e) If the participant dies without a valid beneficiary
designation on file, or if no designated beneficiary survives the
participant, the participant's account shall be payable to the
participant's estate.

31778.4.  Upon termination of employment and retirement from the
system, a member who has elected to participate in the program shall
receive the member's program payment, as calculated pursuant to
Section 31778.1 and in accordance with the distribution provisions of
Sections 31776.3, 31776.4, and 31776.5.

31779.  (a) After the program has been in effect for a period of at
least four years and not more than 10 years, as specified in the
implementing ordinance, or up to one year prior to the end of that
specified period, the board shall cause an actuarial analysis of the
cost impact of the program to be prepared and presented to the board
of supervisors or governing body of the district for its review and
consideration.
   (b) If the actuarial analysis discloses that the program has not
been cost neutral, the board of supervisors or governing board shall,
by ordinance or resolution pursuant to a collective bargaining
agreement with the bargaining unit, either:
   (1) Discontinue the program, subject to Section 31779.1.
   (2) Modify the program in a manner consistent with the actuarial
analysis and the provisions of this article so that the program will
be cost neutral.

31779.1.  The rights of a participant who has retired under the
program, whose deferred retirement calculation date, or whose program
period is in effect at the time the program is discontinued may not
be affected by the discontinuance of the program and that participant
shall remain subject to the provisions of the program as it existed
on the participant's election date.

31779.2.  If the program is modified pursuant to paragraph (2) of
subdivision (b) of Section 31779, participants who entered, or who
were eligible for, the program prior to the effective date of the
modification shall be entitled to elect whether to become subject to
the modified provisions of the program or to remain subject to the
program as it existed on the participant's deferred retirement
calculation date or election date, whichever occurred first.

31779.3.  As long as the program remains in effect, either as
originally adopted or as modified pursuant to paragraph (2) of
subdivision (b) of Section 31779, the board of retirement shall cause
an actuarial analysis of the cost impact of the program to be
prepared as provided in Section 31779 at the end of each successive
period specified in the implementing ordinance or subsequently
adopted by ordinance or resolution, and the board of supervisors or
governing body may take the actions described in Section 31779 as
appropriate based on the outcome of that analysis.