The Defined Benefit Supplement Program is hereby established to provide supplemental benefits for members of the Defined Benefit Program. The Teachers’ Retirement Board shall administer the Defined Benefit Supplement Program in accordance with the provisions of this part.
Article 1General Provisions
Section § 25000
This section establishes a program called the Defined Benefit Supplement Program to offer additional benefits to members of the Defined Benefit Program. The administration of this program is handled by the Teachers’ Retirement Board according to the outlined rules.
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Section § 25000.5
This law states that the Defined Benefit Supplement Program in California must follow certain federal tax laws. The board responsible for this program can make changes for various reasons, like ensuring compliance with federal rules, adjusting financial predictions, setting the first year of the plan, and deciding interest rates and extra credits for earnings and annuities each year.
The design and administration of the Defined Benefit Supplement Program shall comply with the applicable provisions of the Internal Revenue Code and the Revenue and Taxation Code. The board may amend the plan with respect to the Defined Benefit Supplement Program to do any of the following:
(a)CA Education Code § 25000.5(a) Comply with applicable federal law and regulations to the extent permitted by law.
(b)CA Education Code § 25000.5(b) Adopt or amend actuarial assumptions.
(c)CA Education Code § 25000.5(c) Designate the initial plan year.
(d)CA Education Code § 25000.5(d) Declare the annual the minimum interest rate.
(e)CA Education Code § 25000.5(e) Declare an additional earnings credit.
(f)CA Education Code § 25000.5(f) Declare an additional annuity credit.
Defined Benefit Supplement Program Internal Revenue Code compliance Revenue and Taxation Code amend the plan federal law regulations actuarial assumptions initial plan year minimum interest rate additional earnings credit additional annuity credit board responsibilities plan design and administration
Section § 25000.7
This law states that a member of the Defined Benefit Supplement Program has the right to benefit from their account once it's established. If they qualify to take money out and it fits certain IRS rules, they can choose to roll over the money directly into another retirement plan instead of taking it as cash. This rollover has to follow the conditions set by the board, and the member specifies which eligible retirement plan to send it to.
(a)CA Education Code § 25000.7(a) A member shall have a vested right to a benefit under the Defined Benefit Supplement Program in an amount equal to the balance of credits in the member’s Defined Benefit Supplement account. That right shall accrue when the member’s Defined Benefit Supplement account is established pursuant to Section 25004.
(b)CA Education Code § 25000.7(b) If a person becomes entitled to a distribution from the program under this part that constitutes an eligible rollover distribution within the meaning of Section 401(a)(31) of Title 26 of the United States Code, the person may elect, under terms and conditions established by the board, to have the distribution or a portion thereof paid directly to a plan that constitutes an eligible retirement plan within the meaning of Section 401(a)(31), as specified by that person. Upon the exercise of the election by a person with respect to a distribution or a portion thereof, the distribution from the program of the amount so designated, once distributable under the terms of the program, shall be made in the form of a direct rollover to the eligible retirement plan so specified.
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Section § 25000.9
This law defines what a 'nonmember spouse' is in relation to certain retirement benefits. A nonmember spouse is a current or former spouse, or registered domestic partner, who has been given a share of a member's retirement benefits due to divorce or separation. Even if they receive some of these benefits, they won't become a member of the retirement system. This applies to service credits, retirement contributions, and defined benefit supplements attributed through legal separation or dissolution of marriage.
(a)CA Education Code § 25000.9(a) For purposes of this chapter and Section 23300, “nonmember spouse” means a member’s spouse or former spouse who is being or has been awarded a community property interest in the service credit, accumulated retirement contributions, accumulated Defined Benefit Supplement account balance, or benefits of the member under this part.
(b)CA Education Code § 25000.9(b) For purposes of this chapter and Section 23300, a member’s registered domestic partner or former registered domestic partner who is being or has been awarded a community property interest in the service credit, accumulated retirement contributions, accumulated Defined Benefit Supplement account balance, or benefits of the member under this part shall be treated in the same manner as a nonmember spouse.
(c)CA Education Code § 25000.9(c) A nonmember spouse may not be considered a member based upon his or her receipt of any of the following being awarded to the nonmember spouse as a result of legal separation, dissolution of marriage, or dissolution of domestic partnership:
(1)CA Education Code § 25000.9(c)(1) A separate account of service credit and accumulated retirement contributions, a retirement allowance, or an interest in the member’s retirement allowance under the Defined Benefit Program.
(2)CA Education Code § 25000.9(c)(2) A separate account based on the member’s Defined Benefit Supplement account balance, a retirement benefit, or an interest in the member’s retirement benefit under the Defined Benefit Supplement Program.
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