Section 24221 Of Chapter 27. Service Retirement From California Education Code >> Division 1. >> Title 1. >> Part 13. >> Chapter 27.
24221
. (a) A member who retires for service prior to January 1,
2011, may elect, on a form prescribed by the system, to receive a
lump-sum payment and an actuarially reduced monthly allowance
pursuant to this section in lieu of the monthly unmodified allowance
that would otherwise be payable to the member pursuant to this
chapter. The election under this section shall be made at the time
the member files his or her application for service retirement
allowance as provided in Section 24204.
(b) A member who makes the election described in subdivision (a)
shall receive a one-time, lump-sum payment in an amount that equals
or does not exceed the lesser of the following amounts:
(1) The actuarial present value of the amount by which (A) the
monthly unmodified allowance payable to the member pursuant to this
chapter exceeds (B) an amount equal to 2 percent of the member's
final compensation multiplied by the number of years of credited
service and divided by 12.
(2) Fifteen percent of the actuarial present value of the monthly
unmodified allowance payable to the member under this chapter.
(c) Notwithstanding any other provision of this part, a member who
makes the election described in subdivision (a) shall receive a
monthly unmodified allowance, pursuant to this chapter, that shall be
actuarially reduced to reflect the lump-sum amount paid under
subdivision (b). The actuarial reduced unmodified allowance may be
modified pursuant to Section 24300 or 24300.1.
(d) A member may not apply a lump-sum payment made pursuant to
this section for the purposes of redepositing previously refunded
retirement contributions pursuant to Chapter 19 (commencing with
Section 23200) or purchasing service credit pursuant to Chapter 14
(commencing with Section 22800), Chapter 14.2 (commencing with
Section 22820) or Chapter 14.5 (commencing with Section 22850). The
Legislature hereby finds and declares that if a member who elects to
receive a partial lump-sum payment also elects to redeposit
previously refunded retirement contributions or purchase service
credit as a result of the receipt of the lump-sum payment, the
Defined Benefit Program may experience a net actuarial impact.
(e) An election pursuant to subdivision (a) may have no net
actuarial impact to the Defined Benefit Program. The board shall
adopt present value factors to establish a corresponding actuarially
reduced monthly allowance, that results in no net actuarial impact to
the Defined Benefit Program. The Legislature reserves the right to
modify the provisions of this section to further the objective of
permitting eligible members to receive a lump-sum distribution of a
portion of their benefits, with a corresponding actuarial reduction
in their monthly allowance, so that there is no net actuarial impact
to the Defined Benefit Program.
(f) This section shall not apply to a member who retires for
service pursuant to Section 24201.5.