2010 California Code
Harbors and Navigation Code
Chapter 3. Pension Plan

1160.  There is hereby established a San Francisco Bar Pilot Pension
Plan which is continued in existence as the San Francisco Pilot
Pension Plan.


1161.  All amounts generated by the pension plan shall be used
solely to pay pensions to retired pilots and inland pilots, disabled
pilots and inland pilots, the surviving spouses of pilots and inland
pilots, and to pay the expenses of the plan.




1162.  (a) The pension plan shall be administered and all benefit
payments shall be made by one or more fiduciary agents selected by
the board. Except for the collection of revenues in accordance with
Section 1165 and the pilots serving as members of the board, and
unless otherwise directed by the board, the pilots shall have no
control of any kind or manner over the operation, administration, or
management of the plan.
   (b) All revenues pursuant to the plan shall be collected by the
pilots, at no cost to the state or board, and transmitted monthly to
the fiduciary agent or agents. The revenues shall not be included in
the account required by Section 1136.



1163.  (a) (1) (A) Each retired pilot and inland pilot, who has
completed 25 full years of service as a pilot or inland pilot, or
both, shall receive, as a target monthly pension, an amount that is
initially equal to 46 percent of an amount that is an average of the
highest three of the last five years of audited annual average net
income per pilot, prior to the pilot's or inland pilot's retirement,
divided by 12, which initial target monthly pension amount shall be
subject to periodic adjustment pursuant to Section 1167. Pilots or
inland pilots with other than 25 full years of service as a pilot or
inland pilot, or both, shall receive a monthly pension in an amount
that is determined by multiplying the above calculated target monthly
pension by a fraction, the numerator of which shall be the number of
full years of service that the pilot or inland pilot has rendered
and the denominator of which shall be 25 years, which initial monthly
pension amount shall be subject to periodic adjustment pursuant to
Section 1167.
   (B) Each disabled pilot or inland pilot shall receive as an
initial target monthly pension an amount that is based on 46 percent
of the greater of the following, which amount shall be subject to
periodic adjustment pursuant to Section 1167:
   (i) An amount that is the average of the highest three of the last
five years of audited annual average net income per pilot divided by
12 and multiplied by a fraction, the numerator of which shall be the
number of full years of service that the pilot or inland pilot has
rendered and the denominator of which shall be 25 years.
   (ii) The audited annual average net income per pilot, for the last
year prior to the pilot's or inland pilot's disability, divided by
12 and multiplied by a fraction, the numerator of which shall be the
number of full years of service that the pilot or inland pilot has
rendered and the denominator of which shall be 25 years.
   (C) Each pilot who retired before January 1, 1985, shall receive
as an initial target monthly pension an amount that is one hundred
seventy-eight dollars ($178) multiplied by the number of full years
of service he or she performed as a pilot licensed under this
division, which amount shall be subject to periodic adjustment
pursuant to Section 1167.
   (D) Each pilot who retired on or after January 1, 1985, or each
inland pilot who retired after January 1, 1993, shall receive as an
initial target monthly pension an amount that is the greater of the
following, which amount shall be subject to periodic adjustment
pursuant to Section 1167:
   (i) An amount that is calculated by multiplying one hundred
seventy-eight dollars ($178) by the number of full years of service
the pilot or inland pilot performed as a pilot or inland pilot
licensed under this division.
   (ii) An amount that is 46 percent of the average of the highest
three of the last five years of audited annual average net income per
pilot, prior to the pilot's or inland pilot's retirement, divided by
12 and multiplied by a fraction, the numerator of which is the pilot'
s or inland pilot's actual number of full years of service and the
denominator of which is 25 years.
   (2) A pilot or inland pilot who retires or becomes disabled shall
not begin to receive a pension until the beginning of the benefit
payment period next following the date on which the pilot or inland
pilot retires or becomes disabled.
   (3) A pilot or inland pilot shall not receive any benefits
pursuant to the pension plan in any benefit payment period unless the
pilot's or inland pilot's resignation as an active pilot or inland
pilot specifying a proposed date of retirement was submitted, in
writing, to the board, prior to November if the pilot's or inland
pilot's retirement is to be effective the first day of the following
January, prior to February if the pilot's or inland pilot's
retirement is to be effective the first day of the following April,
prior to May if the pilot's or inland pilot's retirement is to be
effective the first day of the following July, or prior to August if
the pilot's or inland pilot's retirement is to be effective the first
day of the following October. The pilot's or inland pilot's
resignation as an active pilot or inland pilot shall become effective
on either January 1, April 1, July 1, or October 1, as specified in
the written resignation.
   (4) If a retired or disabled pilot or inland pilot who is
receiving a pension dies without a surviving spouse, the pilot's or
inland pilot's successor in interest shall receive the monthly
pension for the remainder of the benefit payment period within which
the death occurs, after which time the monthly pension shall cease.
   (b) (1) The surviving spouse of a deceased pilot who is eligible
for a pension pursuant to paragraph (1) of subdivision (e) of Section
1164 and the surviving spouse of a deceased inland pilot who is
eligible for a pension pursuant to paragraph (2) of subdivision (e)
of Section 1164 shall each receive, as a monthly pension,
three-fourths of the amount that the deceased pilot or inland pilot
would have received as a monthly pension pursuant to this section had
the pilot or inland pilot lived, calculated as if the deceased pilot
or inland pilot had been disabled pursuant to subparagraph (B) of
paragraph (1) of subdivision (a).
   (2) If a retired or disabled pilot or inland pilot who was
receiving a pension dies, the surviving spouse shall continue to
receive the full amount of the monthly pension to which the deceased
pilot or inland pilot was entitled for the balance of the benefit
payment period within which the death occurs, after which the
surviving spouse shall receive the amount specified in paragraph (1).
   (3) If a surviving spouse receiving a pension dies, the surviving
spouse's successor in interest shall receive the monthly pension for
the remainder of the benefit payment period within which the death
occurs, after which time the monthly pension shall cease.
   (c) For the purpose of the computations described in paragraph (1)
of subdivision (a), six months or more of service by a pilot or
inland pilot shall be considered a full year.
   (d) Except as provided otherwise in this section and paragraph (4)
of subdivision (e) of Section 1164, monthly pension amounts payable
pursuant to this section to retired pilots and inland pilots and to
their surviving spouses are payable for the life of that retired
pilot, inland pilot, or spouse.
   (e) To determine an inland pilot's full years of service under
this chapter, any periods of service that an inland pilot has
performed as a pilot shall be added to any service time performed as
an inland pilot after January 1, 1987.
   (f) In calculating the benefits of a retired or disabled pilot who
was issued an original pilot's license in 1985 and who was not
thereafter issued an inland pilot's license, or in calculating the
benefits of the widow of such a pilot who is deceased, the number of
years of service used in the calculation shall be the greater of the
following:
   (1) The actual number of full years of service the pilot has
rendered.
   (2) Ten years.



1164.  (a) Except as provided in subdivision (b), a pilot shall be
eligible for the pension provided in Section 1163 if the pilot meets
all of the following requirements:
   (1) Held a license as a pilot and served at least 10 years in that
capacity or has attained 62 years of age, whichever occurs first.
   (2) Retired after January 1, 1972.
   (3) Is at least 60 years of age.
   (b) A disabled pilot shall be eligible for the pension provided in
Section 1163 if it has been determined by the board, based upon
competent medical evidence, that the pilot is unable to perform the
duties of a pilot. As used in this chapter, "disabled" means a
disability of permanent or extended and uncertain duration, as
determined by the board, on the basis of competent medical opinion.
   (c) Except as provided in subdivision (d), an inland pilot shall
be eligible for the pension provided in Section 1163 if the inland
pilot meets all of the following requirements:
   (1) Held a license as an inland pilot and served at least 10 years
in that capacity after January 1, 1987, or has attained 62 years of
age, whichever occurs first.
   (2) Retired after January 1, 1987.
   (3) Is at least 60 years of age.
   (4) Since January 1, 1987, has held himself or herself out as
providing pilotage assistance to the entire shipping industry
consistent with the inland pilot's license.
   (5) For services provided after January 1, 1994, performs a
minimum of 75 assignments per calendar year unless excused from
performance of that requirement due to medical needs satisfactory to
the board.
   (d) A disabled inland pilot who meets the requirements of
paragraph (4) of subdivision (c) shall be eligible for the pension
provided in Section 1163 if it has been determined by the board,
based upon competent medical evidence, that the inland pilot is
unable to perform the duties of an inland pilot.
   (e) (1) A surviving spouse of a deceased pilot shall be eligible
for the pension provided in subdivision (b) of Section 1163 if that
deceased pilot died after January 1, 1972, and that deceased pilot
had held a license as a pilot.
   (2) A surviving spouse of a deceased inland pilot shall be
eligible for the pension provided in subdivision (b) of Section 1163
if the deceased inland pilot died after January 1, 1987, had held a
license as an inland pilot, and since January 1, 1987, had held
himself or herself out as providing pilotage assistance to the entire
shipping industry consistent with the inland pilot's license.
   (3) In order for a surviving spouse to be eligible for any pension
benefits pursuant to this chapter, the surviving spouse shall have
been legally married to the deceased pilot or inland pilot for at
least one year prior to the deceased pilot's or inland pilot's death.
   (4) A surviving spouse of a deceased pilot or inland pilot shall
neither be eligible for, nor receive, pension benefits pursuant to
this chapter if the surviving spouse remarries. If a surviving spouse
who is receiving a monthly pension under this chapter remarries, the
surviving spouse's successor in interest shall receive the amount of
the monthly pension for the remainder of the benefit payment period
as if the surviving spouse had died, in accordance with paragraph (3)
of subdivision (b) of Section 1163.



1165.  (a) In addition to, and concurrently with, the basic pilotage
rate described in Section 1190, a charge shall be levied for
pilotage services at a rate necessary to provide the benefits to be
paid out pursuant to the pension plan. The additional rate shall be
determined as follows:
   (1) On March 1, June 1, September 1, and December 1 of each year,
the number of persons eligible to receive benefits under the plan,
their identities, the calculated amount each shall be entitled to
receive, and the total amount to be paid out to all of those persons
during each month of the next three-month period shall be determined
by the fiduciary agent or agents.
   (2) After the total amount to be paid out monthly under the plan
has been determined, the rate necessary to provide that amount each
month shall be calculated by the fiduciary agent or agents. The rate
shall be based upon the volume of shipping, in gross registered tons,
handled by pilots licensed under this division for the 12-month
periods ending the previous September 30 for benefit periods
commencing the following January 1, ending the previous December 31
for benefit periods commencing the following April 1, ending the
previous March 31 for benefit periods commencing the following July
1, and ending the previous June 30 for benefit periods commencing the
following October 1, respectively. The rate shall be expressed as
mills per gross registered ton and shall be calculated to the nearest
one-hundredth of a mill.
   (3) The estimated cost of the services of the fiduciary agent or
agents to administer the pension plan shall be calculated by the
fiduciary agent or agents for the benefit periods described in
paragraph (2), shall be expressed as mills per gross registered ton,
and shall be calculated to the nearest one-hundredth of a mill.
   (b) The rate determined pursuant to paragraphs (1), (2), and (3)
of subdivision (a) shall become effective on January 1 of the
following year with respect to the September 30 calculations, on
April 1 of the following year with respect to the December 31
calculations, on July 1 of that year with respect to the March 31
calculations, and on October 1 of that year with respect to the June
30 calculations. The rates shall be in effect for the succeeding
benefit payment period.


1166.  (a) The benefits actually paid out each month by the
fiduciary agent or agents designated by the board to all retired and
disabled pilots and inland pilots, to surviving spouses of deceased
pilots and inland pilots, and to successors in interest shall be
equal to the revenue received pursuant to Section 1165 during the
preceding month less the expenses of the fiduciary agent or agents
incurred during that month. The revenue, whether greater or less than
the amount used in determining the tonnage rates under this chapter
to provide the aggregate target pensions to which those persons are
entitled according to Section 1163, shall be paid to each of them in
proportion to the relative target amounts to which they are entitled,
after payment of the expenses of the fiduciary agent or agents.
   (b) Revenues for any month or year are the amounts to be received
pursuant to the pension plan for pilotage during that month or year.
The fiduciary agent or agents shall determine which accounting system
shall be used to make the payment, provided that, if the accrual
method is used, it shall be subject to later equitable adjustments
for unpaid receivables.
   (c) Benefits pursuant to the new rate calculations shall be paid
commencing in February, May, August, and November of each year and
shall continue through, and include, the next following April, July,
October, and January, respectively, so that each benefit pension
period equals three months of payments. The period during which
benefits are paid is the benefit payment period.



1167.  (a) The board shall review the benefits received by retired
or disabled pilots and inland pilots and their surviving spouses
every three years or when the cumulative percentage increase in the
Consumer Price Index (San Francisco Bay Area) has exceeded 12
percent, whichever occurs first.
   (b) The board may increase the monthly pensions specified in
Section 1163. Those increases shall take into consideration the
maritime industry practice in the United States as brought to the
attention of the board by the pilots, inland pilots, or the industry.
The increase shall not exceed 50 percent of the cumulative increase
in the Consumer Price Index (San Francisco Bay Area). Monthly
pensions for retired pilots, inland pilots, or their surviving
spouses who have been retired less than the full three-year interval
between adjustments shall increase on a pro rata basis according to
the number of months that those persons have been retired prior to
that adjustment.



1168.  The board may review the pension plan and make any
recommendations it deems necessary for changes in the plan. Monthly
pensions shall not be adjusted except as provided by Section 1167.