Section 589.3 - Retirement Benefits(a) Benefits Contingent on Funding--No benefits shall accrue under this Plan to any Participant or Other Recipient unless and until the state, the school employer, or the contracting agency, as appropriate, has paid to CalPERS the amount that CalPERS has invoiced the state, school employer, contracting agency or Participant for the benefits payable, as provided in Sections 589.4 and 589.5 hereof.(b) Amount of Benefit--Initial Determination. The benefit payable under this Plan shall be initially determined for each Participant at the Participant's Commencement Date under the following steps:
(1) Calculate the Participant's benefit payable under CalPERS at the time of the Commencement Date without regard to the limits of Section 415 and after taking into account the form of CalPERS benefit selected by the Participant.(2) Determine the amount of the Participant's CalPERS benefits (if any) attributable to after tax Member contributions and attributable to rollover contributions at the Commencement Date after taking into account the form of CalPERS benefit selected by the Participant.(3) Subtract the amount determined in (2) from the amount calculated under (1); this is the amount subject to the Section 415 limits and therefore subject to Section 415 testing.(4) Determine the maximum benefits payable to the Participant from CalPERS under the then current benefit payment limits of Section 415, ignoring any benefits that may be attributable to after tax Member contributions or rollover Member contributions. This determination shall take into account the applicable dollar limits, and the form of benefit payment chosen. The limits may differ based on other factors such as whether the Participant qualifies for the special safety member limits under Section 415 and when he or she first became a CalPERS Member.(5) Subtract the amount determined under (4) from the amount determined under (3). If the amount in (3) is greater than that in (4), the difference is the initial benefit payable under this Plan. If the amount in (4) is equal to or greater than the amount in (3), then no benefits are payable under this Plan.(6) Section 415 establishes annual benefit limits and therefore, the amount of the initial benefit to be paid under this Plan that is determined under (4) is an annual benefit. For payment under this Plan, however, the amount of such initial benefit shall be converted to equal quarterly amounts.(c) Amount of Benefit--Redeterminations.(1) As of each January 1 following the Participant's Commencement Date or Recommencement Date (or the date of commencement or recommencement of benefits under this Plan for any Other Recipient), the Participant's, or Other Recipient's, benefit under this Plan shall be redetermined by following each of steps (1) through (6) of Subsection 589.3(b), but using the then current amounts determined by applying (i) cost of living adjustments and other changes (if any) to the benefits provided under CalPERS, and (ii) cost of living adjustments, and other changes (if any) to the maximum benefit limits established by Section 415.(2) At the Plan Administrator's sole discretion, the amount of every Participant's and Other Recipient's benefits (on a uniform basis and not separately for any particular Participant or Other Recipient) may be redetermined at a date other than January 1 if there is a material change in the rules governing the maximum benefit limits established under Section 415 or a material change in CalPERS benefits, or for any other material reason at the Plan Administrator's sole discretion.(d) Amount of Benefit--Recommencement of Participation--When a Participant or Other Recipient recommences participation in this Plan, a recalculation shall occur under Subsection 589.3(c) hereof, treating the first month for which benefits resume under this Plan as if it were a date of recalculation under Subsection 589.3(c). Any cost of living adjustments shall not apply to benefits payable under this section of the Plan until they otherwise would occur under the operation of this Plan and CalPERS.(e) Amount of Benefit--Other Recipients. Other Recipients shall be entitled to benefits under this Plan as follows:
(1) Other Recipients shall be entitled to benefits under this Plan only if they are entitled to benefits that are limited by Section 415 under CalPERS after the death of a CalPERS Member or upon legal separation or dissolution of a marriage of a Member.(2) The benefit payable to an Other Recipient under this Plan shall be determined as if he or she were the Participant, substituting in the calculations under Subsections 589.3(b) or 589.3(c), as applicable, the amounts due to such Other Recipient for the amounts due to the Participant.(f) Timing of Payments. (1) The amount of benefit provided under this Plan shall be paid quarterly starting as of the first day of the last month of the first calendar quarter following the Commencement Date. At the Plan Administrator's sole discretion, payments may be made from this Plan more or less frequently than quarterly, (and this may be done on an individual Participant basis), provided that payments to a Participant or Recipient shall be made at least annually.(2) A pro rata amount, smaller than the quarterly payment, shall be paid for part of a quarter when the period of payment begins after the first day of the quarter or ends before the last day of the quarter.(g) Form of Benefit Paid--The benefit paid to a Participant or Other Recipient under this Plan shall be paid in the same form as benefits are paid to him or her under CalPERS, except that periodic benefits paid under this Plan shall be paid quarterly unless otherwise provided herein.(h) Limited Retroactive Payments. (1) The amounts that are payable to any Participant or Other Recipient covered by Subsection 589.2(f) above shall be determined as if the Effective Date for this Plan for the Participant or Other Recipient was the first date on and after January 1, 1993 on which benefits payable to him or her under CalPERS were limited by Section 415, and the last date for which benefits were so limited was December 31, 1998. All of the other provisions in this Section 589.3 (including but limited to Subsection 589.3(a)) shall apply to determine such payment, except as provided in this Subsection 589.3(h).(2) Benefits payable under this Subsection 589.3(h) shall be paid as soon as reasonably practicable.(3) Benefits payable under this Subsection 589.3(h) shall be paid, to the extent reasonably practicable, in a single sum.(i) Determination Solely By Plan Administrator--The Plan Administrator shall have sole authority and discretion to determine the amount of benefits (if any) that are payable under this Section 589.3.Cal. Code Regs. Tit. 2, § 589.3
1. New section filed 1-25-2001; operative 1-25-2001 pursuant to Government Code section 11343.4(c). Submitted to OAL for printing only (Register 2001, No. 4).
2. Amendment of subsection (a) filed 11-18-2002; operative 12-18-2002. Submitted to OAL for printing only pursuant to Government Code section 21760 (Register 2002, No. 47). Note: Authority cited: Section 20120, 20121 and 21760, Government Code. Reference: Section 21757, Government Code.
1. New section filed 1-25-2001; operative 1-25-2001 pursuant to Government Code section 11343.4(c). Submitted to OAL for printing only (Register 2001, No. 4).
2. Amendment of subsection (a) filed 11-18-2002; operative 12-18-2002. Submitted to OAL for printing only pursuant to Government Code section 21760 (Register 2002, No. 47).