(a) The 100 Percent Beneficiary Option 2 with Benefit Allowance Increase consists of the right to have a retirement allowance paid to a member until his or her death and thereafter to have the same monthly allowance paid to his or her named beneficiary for life; provided that with respect to a member subject to Section 21624, 21629, or 21630 at retirement, the named beneficiary shall receive a monthly allowance equal to that portion of the member’s allowance that exceeds the amount of the allowance deemed payable to a survivor.
(1) If the beneficiary predeceases the member, the member’s allowance shall be adjusted effective the first of the month following the death of the beneficiary, to reflect the benefit that would have been paid had the member not selected an optional settlement.
(2) If a nonspouse beneficiary waives entitlement to this allowance, the member’s allowance shall be adjusted effective the first of the month following the receipt of the waiver of the allowance entitlement from the nonspouse beneficiary to reflect the benefit that would have been paid had the member not selected an optional settlement.
(3) If the marriage of a member is dissolved or there is a legal separation between the member and the beneficiary spouse and the judgment dividing the community property awards the total interest in this system to the member, or in the event of an annulment of marriage in which the court confirms the annulment, the member’s allowance shall be adjusted effective the first of the month following the filing of the judgment with the board to reflect the benefit that would have been paid had the member not selected an optional settlement.
(b) Nothing in this section shall result in additional cost to the employer.
(c) This section shall apply to any member who retires on or after January 1, 2018.
(Amended by Stats. 2017, Ch. 241, Sec. 16. (SB 525) Effective January 1, 2018.)