Chapter 22Active Death Benefits: Family Allowance
Section § 23800
This law explains the rules for receiving benefits under a program called the Defined Benefit Program if a member of the program dies. It covers how to determine who is eligible, how much they can get, and other related details. It specifically applies to those who were receiving disability payments or were part of the plan on October 15, 1992, but didn’t choose different coverage. Additionally, it addresses payments to survivors for deaths that occurred before July 1, 1972.
Section § 23801
This section of the law explains when and how a death payment of at least $5,000 is given to a beneficiary if a member of the retirement system dies. The member must have worked at least one year after the last time they withdrew their retirement contributions. The payment applies if the member dies while working, shortly after stopping work, while on disability leave, or within certain set time frames. However, it doesn't apply if a member dies within a year after returning from retirement. The death payment amount can be adjusted for inflation, and beneficiaries have the option to waive this payment if they decide against accepting it, with the waiver finally discharging any obligation of the system to the beneficiary.
Section § 23802
This law deals with what happens to a California public employee's retirement contributions if they die before retiring and have no plan set up for their family. If there's no family eligible for ongoing payments, the person designated as the beneficiary will receive the retirement and annuity contributions, along with any earned interest. The beneficiary can choose to decline this lump-sum payment, which releases any further obligations to the retirement system.
Section § 23803
This law allows a beneficiary to request payment of death benefits and return of contributions once proof of death is provided. The system will make these payments as quickly as possible after receiving the necessary documentation.
Section § 23804
This law discusses the conditions for a family allowance to be paid when an active or disabled member of a specific system dies. The allowance is valid if the death happened after June 30, 1972, and if certain conditions are met, such as no preretirement election option in place, and compliance with death payment provisions. Additional conditions include having completed specific service periods after any break or reinstatement. Instead of returning retirement contributions, the family gets this allowance. Beneficiaries can waive their rights to the allowance via a special form, which stops their benefits and releases all related parties from further obligation.
Section § 23805
This section explains who gets a family allowance after a member dies and how much they receive. First, the surviving spouse with a dependent child gets 40% of the member's final pay, plus 10% for each child, up to 90%. If there's no spouse or the spouse also dies, each child gets 10% of the final pay, limited to 50% overall. A spouse over 60 without children gets a sum matching what they'd have gotten as a beneficiary, adjusted by certain factors. If there are no children or spouse, a dependent parent over 60 can receive a similar allowance. Importantly, only one parent allowance is paid if both parents are alive. Spouses or parents can choose to take the allowance early but will get less, or get a lump sum of the member’s retirement contributions if no dependents. Certain specific increases are not included in these payments.
Section § 23805.5
To qualify as a dependent parent under this law, a parent must meet several conditions. First, they should have received at least half of their financial support from the deceased member in the year before the member died. They must also have been listed as a dependent on the member's tax return for one of the two years prior to the member's death. Additionally, no other person should have taken on at least half of the parent's support during the member's death year. Lastly, the parent's net assets, not including their home and personal items, must be $25,000 or less. Also, to claim benefits, the applicant or their guardian needs to provide income tax returns and any other financial evidence requested by the board.
Section § 23806
If a child depending on a deceased person isn't living with the surviving spouse, their financial support is taken care of through a family allowance. This child's part of the allowance goes to whoever is responsible for them, such as a guardian, a parent with custody, or if neither is available, a trust for the child's benefit.
If the dependent child is 18 or older, the allowance can be paid directly to the child if no other guardian or trustee is overseeing their finances.
Section § 23809
This law states that if a surviving spouse taking care of a dependent child or a dependent child themselves receives a family allowance, that allowance will be decreased by any other benefits they also receive from public systems for the same reason they qualified for the allowance.
Section § 23810
This section states that if someone who receives a family allowance either passes away or no longer meets the requirements to receive it, the payments stop immediately on that day, unless there's a rule in Section 24600 that says otherwise.
Section § 23811
This law says that when family allowances stop, any remaining retirement contributions a deceased member has should be given to their chosen beneficiary. Along with this payment, the law also says a bit of interest must be added for the time after family allowances stopped or from the date of death, if no allowances were paid, up until the balance is paid.
Section § 23812
If a surviving spouse lost benefits because they remarried, they can apply to start receiving those benefits again. The benefits restart either from January 1, 2000, or the month after they apply, whichever is later. The amount will be as if they never stopped. The board doesn’t have to find or inform remarried spouses about this option, and they won’t pay back benefits for past periods. This doesn’t apply to surviving domestic partners.