Section 24415.5 Of Chapter 29. Benefit Maintenance From California Education Code >> Division 1. >> Title 1. >> Part 13. >> Chapter 29.
24415.5
. (a) Notwithstanding any other provision of this chapter,
the board shall adjust the purchasing power protection benefits
payable pursuant to Sections 24415, 24416, and 24417 in accordance
with subdivisions (b) and (c) of this section.
(b) If the board, in adopting the actuarial projection described
in subdivision (a) of Section 22954.1, determines that the annual
transfers to the Supplemental Benefit Maintenance Account described
in Section 22954, combined with all other anticipated sources of
income to the account, are likely to be less than sufficient over the
term established by the board to continue providing the purchasing
power protection being provided at the time of the projection, it
shall identify the maximum level of purchasing power protection
benefits that it expects to be sustainable over that term, as
specified in subdivision (c) of Section 22954.1. The board, upon
making the determination specified in subdivision (c) of Section
22954.1, shall reduce the purchasing power protection benefits
payable pursuant to Sections 24415, 24416, and 24417 to the maximum
sustainable level identified under this subdivision, except that
these benefits shall not be adjusted below the 80 percent purchasing
power protection level unless the board has made the determination of
insufficient funds described in subdivision (a) of Section 24416.
(c) If the board, in adopting the actuarial projection described
in subdivision (a) of Section 22954.1, determines that the annual
transfers to the Supplemental Benefit Maintenance Account described
in Section 22954, combined with all other anticipated sources of
income to the account, are likely to be more than sufficient over the
term established by the board to continue providing the purchasing
power protection being provided at the time of the projection, it
shall identify the maximum level of purchasing power protection
benefits that it expects to be sustainable over that term, as
specified in subdivision (b) of Section 22954.1. The board, upon
making the determination specified in subdivision (b) of Section
22954.1, shall increase the purchasing power protection benefits
payable pursuant to Sections 24415, 24416, and 24417 to the maximum
sustainable level identified under this subdivision, except that
these benefits shall not be adjusted above the 85 percent purchasing
power protection level.
(d) If the board identifies, pursuant to subdivision (b) of
Section 22954.1, that the maximum level of purchasing power
protection benefits it expects to be sustainable over the term
established by the board is greater than the 85 percent level, it
shall develop one or more proposals for options for the use of the
anticipated Supplemental Benefit Maintenance Account moneys in excess
of those believed to be necessary to sustain purchasing power
protection benefits at the 85 percent level over the term established
by the board. The options that the board proposes for use of these
moneys shall be for the exclusive benefit of members and
beneficiaries, and at least one of these proposed options shall be an
increase in benefits for any surviving members who retired prior to
January 1, 1999, and any surviving beneficiaries of members who
retired prior to January 1, 1999. The board shall either include a
summary of these proposed options in the report described in
subdivision (f) of Section 22954.1 or, within 60 days after
submission of that report, submit a separate letter to the recipients
of the report described in subdivision (f) of Section 22954.1 that
contains a summary of these proposed options. The board shall also
submit a summary of these proposed options to the Governor.
(e) The board shall adopt and, after such adoption, may amend and
repeal regulations concerning its powers described in this section,
and it shall file these regulations, and amended and repealed
regulations, with the Secretary of State. The adoption, amendment, or
repeal of a regulation authorized by this section is hereby exempted
from the rulemaking provisions of the Administrative Procedure Act
(Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code).