20010-20071
GOVERNMENT CODE
SECTION 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.
20027.5. (a) "Electronic funds transfer" means any transfer of
funds, other than a transaction originated by check, draft, or
similar paper instrument, that is initiated through an electronic
terminal, telephonic instrument, or computer or magnetic tape, so as
to order, instruct, or authorize a financial institution to debit or
credit an account. Electronic funds transfers shall be executed by
one of the following methods:
(1) An automated clearinghouse debit in which the state, through
its designated depository bank, originates an automated clearinghouse
transaction debiting the person's bank account and crediting the
state's bank account for the amount of the debit. Banking costs
incurred for the automated clearinghouse debit transaction shall be
paid by the state.
(2) An automated clearinghouse credit in which the person, through
his or her own bank, originates an entry crediting the state's bank
account and debiting his or her own bank account. Banking costs
incurred for the automated clearinghouse credit transaction charged
to the state shall be paid by the person originating the credit.
(3) A Federal Reserve Wire Network transfer (Fedwire) originated
by a person utilizing the national electronic payment system to
transfer funds through the federal reserve banks, when that person
debits his or her own bank account and credits the state's bank
account. Electronic funds transfers may be made by Fedwire only if
payment cannot, for good cause, be made according to paragraph (1) or
(2), and the use of Fedwire is preapproved by the board. Banking
costs incurred for the Fedwire transaction charged to the person and
to the state shall be paid by the person originating the transaction.
(b) For purposes of this section, "automated clearinghouse" means
any federal reserve bank, or an organization established in agreement
with the National Automated Clearing House Association, that
operates as a clearinghouse for transmitting or receiving entries
between banks or bank accounts and which authorizes an electronic
transfer of funds between these banks or bank accounts.
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 is employed by the state for the first
time and 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 is employed by the state for the first
time and 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 is employed by the state for the first
time and 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 is employed by the state for the first
time and 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 is employed by the state for the first
time and 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 is employed by the state for the first
time and 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 is employed by the state for the first
time and 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.
20037.13. (a) Notwithstanding Sections 20035 and 20037, for the
purposes of determining any pension or benefit with respect to
benefits based on service with the state, "final compensation" means
the highest annual compensation that was earnable by the state member
during the consecutive 36-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 or during any other
period of 36 consecutive months during his or her membership in this
system that the member designates on the application for retirement.
(b) This section shall only apply to a member appointed to a
career executive assignment, as defined in Section 18546, who at the
time of appointment meets one or more of the following criteria:
(1) He or she previously had, but does not currently have,
permanent status in the civil service.
(2) He or she is a person described in Section 18990 who was not,
within the past 12 months, employed by the Legislature for two or
more consecutive years.
(3) He or she is a person described in Sections 18992 who was not,
within the past 12 months, holding a nonelected exempt position in
the executive branch.
(c) A state entity that employs a person described in subdivision
(b) in a career executive assignment shall notify the Controller of
this person's employment status and the Controller shall forward this
information to the system.
20037.14. (a) Notwithstanding Sections 20035 and 20037, final
compensation for a person who is employed by the state for the first
time and becomes a state member of the system on or after October 31,
2010, and is represented by State Bargaining Units 5 or 8, 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 5 or 8 or in a class related to State
Bargaining Unit 5 or 8 as an employee who is excepted from the
definition of "state employee" in subdivision (c) of Section 3513, or
an officer or employee of the executive branch of state government
who is not a member of the civil service.
(c) This section does not apply to:
(1) Former state employees previously employed before October 31,
2010, who return to state employment on or after October 31, 2010.
(2) State employees hired prior to October 31, 2010, who were
subject to Section 20281.5 during the first 24 months of state
employment.
(3) State employees hired prior to October 31, 2010, who become
subject to representation by State Bargaining Unit 5 or 8 on or after
October 31, 2010.
(4) State employees on an approved leave of absence employed
before October 31, 2010, who return to active employment on or after
October 31, 2010.
20037.14. (a) Notwithstanding Sections 20035 and 20037, final
compensation for a person who is employed by the state for the first
time and becomes a state member of the system on or after October 31,
2010, and is represented by State Bargaining Unit 5 or 8, 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 5 or 8 or in a class related to State
Bargaining Unit 5 or 8 as an employee who is excepted from the
definition of "state employee" in subdivision (c) of Section 3513, or
an officer or employee of the executive branch of state government
who is not a member of the civil service.
(c) This section does not apply to:
(1) Former state employees previously employed before October 31,
2010, who return to state employment on or after October 31, 2010.
(2) State employees hired prior to October 31, 2010, who were
subject to Section 20281.5 during the first 24 months of state
employment.
(3) State employees hired prior to October 31, 2010, who become
subject to representation by State Bargaining Unit 5 or 8 on or after
October 31, 2010.
(4) State employees on an approved leave of absence employed
before October 31, 2010, who return to active employment on or after
October 31, 2010.
20037.15. (a) Notwithstanding Sections 3517.8, 20035, and 20037,
final compensation for a person who is employed for the first time
and becomes a member of the system on or after January 15, 2011,
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 the following:
(1) Service credit accrued while a member of State Bargaining Unit
6 or 9 or in a class related to State Bargaining Unit 6 or 9 as an
employee who is excepted from the definition of "state employee" in
subdivision (c) of Section 3513, or an officer or employee of the
executive branch of state government who is not a member of the civil
service.
(2) Service credit accrued while a peace officer/firefighter
member represented by State Bargaining Unit 7 or in a class related
to peace officer/firefighter members in State Bargaining Unit 7 as an
employee who is excepted from the definition of "state employee" in
subdivision (c) of Section 3513, or an officer or employee of the
executive branch of state government who is not a member of the civil
service.
(3) Service credit accrued as an employee who is excepted from the
definition of "state employee" in subdivision (c) of Section 3513,
or an officer or employee of the executive branch of state government
who is not a member of the civil service.
(4) Service credit accrued as an employee of the Legislature, the
judicial branch, or the California State University.
(c) This section does not apply to:
(1) Former employees previously employed before January 15, 2011,
who return to employment on or after January 15, 2011, and who were
previously subject to a 12-month average.
(2) State employees hired prior to January 15, 2011, who were
subject to Section 20281.5 during the first 24 months of state
employment, and who were previously subject to a 12-month average.
(3) State employees hired prior to January 15, 2011, who become
subject to representation by State Bargaining Unit 6, 7, or 9 on or
after January 15, 2011, and who were previously subject to a 12-month
average.
(4) Employees on an approved leave of absence employed before
January 15, 2011, who return to active employment on or after January
15, 2011, and who were previously subject to a 12-month average.
(d) If this section is in conflict with a memorandum of
understanding that is current and in effect on January 15, 2011, the
memorandum of understanding shall be controlling while it remains in
effect. Upon expiration of the memorandum of understanding that is in
effect and current on January 15, 2011, this section shall be
controlling and may not be superseded by a subsequent memorandum of
understanding.
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 during a consecutive 12-month period 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.
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.
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 Division 8 of Title 3
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 Division 7 of Title 3 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 Public Law 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 Division 5
of Title 3 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.
(y) (1) A nonprofit mutual water company operating pursuant to
Chapter 1 (commencing with Section 14300) of Part 7 of Division 3 of
Title 1 of the Corporations Code, upon obtaining a written advisory
opinion from the United States Department of Labor as described in
Section 20057.1, if both of the following requirements are satisfied:
(A) More than 50 percent of the company's shares are owned by a
municipality.
(B) The governing body of the company is a local public agency, as
defined in Section 6252, and a legislative body, as defined in
Section 54952.
(2) A nonprofit mutual water company that meets the requirements
specified in paragraph (1) shall be deemed a "public agency" only for
the purposes of this part and only with respect to the employees of
the agency.
(3) A nonprofit mutual water company that meets the requirements
specified in paragraph (1) shall be deemed a "public agency" for
purposes of this part only if it complies with the provisions of
Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1
and Chapter 9 (commencing with Section 54950) of Part 1 of Division 2
of Title 5.
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 cont