Article 5Disability Benefits

Section § 25016

Explanation

This law explains how the disability benefit works for members of the Defined Benefit Supplement Program. If a member becomes disabled, the amount they receive will equal the balance in their account. They can choose to receive their disability benefit all at once as a lump-sum, as monthly payments, or a mix of both. Once members take the entire benefit as a lump sum, no further benefits are available to them or their beneficiaries from this program.

(a)CA Education Code § 25016(a) A member’s disability benefit under the Defined Benefit Supplement Program shall be an amount equal to the balance of credits in the member’s Defined Benefit Supplement account on the date the disability benefit becomes payable.
(b)CA Education Code § 25016(b) A disability benefit shall be a lump-sum payment, or an annuity payable in monthly installments, or a combination of both a lump-sum payment and an annuity, as elected by the member on the application for a disability benefit. Any retirement benefit paid as an annuity under this chapter shall be subject to Section 25018 or 25018.1.
(c)CA Education Code § 25016(c) Upon distribution of the entire disability benefit in a lump-sum payment, no other benefit shall be payable to the member or the member’s beneficiary under the Defined Benefit Supplement Program.
Defined Benefit Supplement Program disability benefit lump-sum payment annuity monthly installments member's credits balance of account beneficiary payment options disability benefit election
(Amended by Stats. 2006, Ch. 655, Sec. 56. Effective January 1, 2007.)

Section § 25017

Explanation

This law states that members eligible for a disability benefit under the California Defined Benefit Supplement Program will start receiving it from the effective date specified in related chapters. However, to get these benefits, the member or someone acting on their behalf must fill out a specific application form. Also, for benefits effective on or after January 1, 2010, those applications must be fully completed before benefits can be received.

(a)CA Education Code § 25017(a) A member shall receive a disability benefit under the Defined Benefit Supplement Program beginning on the effective date of the member’s disability allowance pursuant to Chapter 25 (commencing with Section 24001) or a disability retirement allowance pursuant to Chapter 26 (commencing with Section 24100) under the Defined Benefit Program.
(b)CA Education Code § 25017(b) The member, or the member’s employer or conservator on behalf of the member, shall submit an application for a disability benefit on a form prescribed by the system.
(c)CA Education Code § 25017(c) A member whose disability allowance or disability retirement allowance is effective on or after January 1, 2010, shall not receive an allowance pursuant to Chapter 25 (commencing with Section 24001) or Chapter 26 (commencing with Section 24100), as applicable, unless the member has submitted a completed application pursuant to subdivision (b).
Defined Benefit Supplement Program disability benefit disability allowance disability retirement allowance application form effective date member's employer member's conservator Chapter 25 Chapter 26 January 1 2010 benefit eligibility application submission California education benefit program requirements
(Amended by Stats. 2009, Ch. 304, Sec. 30. (SB 634) Effective January 1, 2010.)

Section § 25018

Explanation

This law explains the options available to a member who receives disability benefits from their Defined Benefit Supplement account. If the account has at least $3,500 after any lump-sum payments, the member can choose an annuity, which is a type of payment plan. There are several annuity options: a single life annuity with or without a cash refund, a joint and survivor annuity (either 100% or 50% of benefits continuing to a surviving beneficiary), and a period certain annuity for a set number of years. After January 1, 2007, new elections for certain annuities can't be made, with some exceptions detailed in another section. Those whose disability benefits are effective from January 1, 2007, must choose from annuities listed in another specific section.

(a)CA Education Code § 25018(a) A member may elect to receive the disability benefit as an annuity, payable in monthly installments, provided the balance of credits in the member’s Defined Benefit Supplement account on the date the disability benefit becomes payable equals at least three thousand five hundred dollars ($3,500) after any lump-sum payment has been made from this account.
(b)CA Education Code § 25018(b) If the member elects to receive the disability benefit as an annuity, the member shall elect one of the following forms of payment:
(1)CA Education Code § 25018(b)(1) A single life annuity without a cash refund feature. This form of payment is the actuarial equivalent of the amount that would be payable to the member if the member elected to receive the disability benefit in a lump-sum payment. Upon the death of the member, no other benefit shall be payable to the member’s beneficiary under the Defined Benefit Supplement Program.
(2)CA Education Code § 25018(b)(2) A single life annuity with a cash refund feature. This form of payment is the actuarial equivalent of the amount that would be payable to the member if the member elected to receive the disability benefit in a lump-sum payment. Upon the death of the member, an amount equal to the remaining balance of credits, if any, transferred from the member’s Defined Benefit Supplement account to the Annuitant Reserve shall be returned in a lump-sum payment to the member’s beneficiary.
(3)CA Education Code § 25018(b)(3) For a member receiving an allowance pursuant to Chapter 26 (commencing with Section 24100), a 100-percent joint and survivor annuity with a “pop-up” feature. This form of payment is the actuarial equivalent of the lump-sum payment modified to be payable over the combined lives of the member and the member’s annuity beneficiary. Upon the death of the member, the same monthly amount that was payable to the member shall be paid monthly to the member’s surviving annuity beneficiary. However, if the annuity beneficiary predeceases the member, the annuity payable to the member shall be the single life annuity with a cash refund feature that would have been payable had the member elected that form of payment at the commencement of the benefit. That single life annuity shall be payable as of the day following the date of the annuity beneficiary’s death upon receipt by the system of proof of the annuity beneficiary’s death. If the annuity beneficiary predeceases the member and the member designates a new option beneficiary pursuant to Section 24323, the new option beneficiary shall be the new annuity beneficiary. The effective date shall be six months following the date notification, on a properly executed form, is received by the board, provided both the member and the new annuity beneficiary are then living. The new annuity beneficiary under this paragraph shall be subject to an actuarial modification of the single life annuity with a cash refund feature and shall not result in any additional liability to the fund. The new annuity beneficiary shall not be an existing annuity beneficiary.
(4)CA Education Code § 25018(b)(4) For a member receiving an allowance pursuant to Chapter 26 (commencing with Section 24100), a 50-percent joint and survivor annuity with a “pop-up” feature. This form of payment is the actuarial equivalent of the lump-sum payment modified to be payable over the combined lives of the member and the member’s annuity beneficiary. Upon the death of the member, one-half of the monthly amount that was payable to the member shall be paid monthly to the member’s surviving annuity beneficiary. However, if the annuity beneficiary predeceases the member, the annuity payable to the member shall be the single life annuity with a cash refund feature that would have been payable had the member elected that form of payment at the commencement of the benefit. That single life annuity shall be payable as of the day following the date of the annuity beneficiary’s death upon receipt by the system of proof of the annuity beneficiary’s death. If the annuity beneficiary predeceases the member and the member designates a new option beneficiary pursuant to Section 24323, the new option beneficiary shall be the new annuity beneficiary. The effective date shall be six months following the date notification, on a properly executed form, is received by the board, provided both the member and the new annuity beneficiary are then living. The new annuity beneficiary under this paragraph shall be subject to an actuarial modification of the single life annuity with a cash refund feature and shall not result in any additional liability to the fund. The new annuity beneficiary shall not be an existing annuity beneficiary.
(5)CA Education Code § 25018(b)(5) A period certain annuity. This form of payment is an annuity equal to the actuarial equivalent of the balance of credits in the member’s Defined Benefit Supplement account on the date the disability benefit becomes payable. The annuity shall be payable in whole year increments over a period of years specified by the member, from a minimum of three years to a maximum of 10 years subject to life expectancy tables promulgated pursuant to Section 401(a)(9) of the Internal Revenue Code. If the member’s death occurs prior to the end of the period certain, the remaining balance of payments shall be paid to the member’s beneficiary pursuant to Section 25022.
(c)CA Education Code § 25018(c) Except as described in subdivision (d) of Section 25018.1, on or after January 1, 2007, a member may not make a new election for an annuity described in subdivision (b).
(d)CA Education Code § 25018(d) On or after January 1, 2007, a member may not make a new election of a joint and survivor annuity described in subdivision (b), except as provided by subdivision (e) of Section 25018.1.
(e)CA Education Code § 25018(e) Any member with a disability benefit effective on or after January 1, 2007, shall elect an annuity from the annuities described in Section 25018.1.
disability benefit annuity options monthly installments single life annuity joint and survivor annuity cash refund feature pop-up feature period certain annuity Defined Benefit Supplement account 2007 election restrictions actuarial equivalent beneficiary allowance Internal Revenue Code life expectancy tables
(Amended by Stats. 2018, Ch. 416, Sec. 22. (SB 1165) Effective January 1, 2019.)

Section § 25018.1

Explanation

This law allows members with a Defined Benefit Supplement account balance of at least $3,500 to choose how they want to receive their disability benefits in the form of an annuity, instead of a lump sum. There are several options for the annuity: a single life annuity with a cash refund feature, or an annuity that continues payments to a beneficiary at 100%, 75%, or 50% of the original benefit amount after the member's death. There's also a period certain annuity, which pays out over a set number of years. If a designated beneficiary dies before the member, payments shift to the member as if they had chosen the single life annuity. A domestic partner is not considered a spouse for certain annuity options, and community property rights decisions made before 2007 must be respected.

(a)CA Education Code § 25018.1(a) A member may elect to receive the disability benefit as an annuity, payable in monthly installments, provided the balance of credits in the member’s Defined Benefit Supplement account on the date the disability benefit becomes payable equals at least three thousand five hundred dollars ($3,500) after any lump-sum payment has been made from this account. If the member elects to receive the disability benefit as an annuity, the member shall elect one of the following forms of payment:
(1)CA Education Code § 25018.1(a)(1) Member only annuity. This is a single life annuity with a cash refund feature that is the actuarial equivalent of the amount that would be payable to the member if the member elected to receive the disability benefit in a lump-sum payment. Upon the death of the member, an amount equal to the remaining balance of credits, if any, transferred from the member’s Defined Benefit Supplement account to the Annuitant Reserve shall be returned in a lump-sum payment to the member’s beneficiary.
(2)CA Education Code § 25018.1(a)(2) One hundred percent beneficiary annuity. This form of payment is the actuarial equivalent of the lump-sum payment modified to be payable over the combined lives of the member and the member’s annuity beneficiary or beneficiaries. Upon the death of the member, 100 percent of the monthly amount that was payable to the member shall be paid monthly to the member’s surviving annuity beneficiary or beneficiaries.
(3)CA Education Code § 25018.1(a)(3) Seventy-five percent beneficiary annuity. This form of payment is the actuarial equivalent of the lump-sum payment modified to be payable over the combined lives of the member and the member’s annuity beneficiary or beneficiaries. Pursuant to Section 401(a)(9) of the Internal Revenue Code, the member shall not elect this annuity if a beneficiary is more than exactly 19 years younger than the member unless the beneficiary is the member’s spouse or former spouse and the election is pursuant to a determination of community property rights. Upon the death of the member, 75 percent of the monthly amount that was payable to the member shall be paid monthly to the surviving annuity beneficiary or beneficiaries of the member.
(4)CA Education Code § 25018.1(a)(4) Fifty percent beneficiary annuity. This form of payment is the actuarial equivalent of the lump-sum payment modified to be payable over the combined lives of the member and the member’s annuity beneficiary or beneficiaries. Upon the death of the member, one-half of the monthly amount that was payable to the member shall be paid monthly to the member’s surviving annuity beneficiary or beneficiaries.
(5)CA Education Code § 25018.1(a)(5) A period certain annuity. This form of payment is an annuity equal to the actuarial equivalent of the balance of credits in the member’s Defined Benefit Supplement account on the date the disability benefit becomes payable. The annuity shall be payable in whole year increments over a period of years specified by the member, from a minimum of three years to a maximum of 10 years subject to life expectancy tables promulgated pursuant to Section 401(a)(9) of the Internal Revenue Code. If the member’s death occurs prior to the end of the period certain, the remaining balance of payments shall be paid to the member’s beneficiary pursuant to Section 25022.
(b)CA Education Code § 25018.1(b) If an annuity beneficiary designated pursuant to paragraph (2), (3), or (4) of subdivision (a) predeceases the member, the annuity shall be paid to the member as the member only annuity that would have been payable had the member elected that form of payment at the commencement of the benefit. That member only annuity shall be payable as of the day following the date of the annuity beneficiary’s death upon receipt by the system of proof of the annuity beneficiary’s death. If the annuity beneficiary predeceases the member and the member designates a new option beneficiary pursuant to Section 24323, the new option beneficiary shall be a new annuity beneficiary. The effective date shall be six months following the date notification is received by the board, provided both the member and the new annuity beneficiary are then living. Notice to the board of the death of the annuity beneficiary shall be on a properly executed form provided by the system. The new annuity beneficiary under this paragraph is subject to an actuarial modification of the member only annuity and shall not result in any additional liability to the fund. The new annuity beneficiary shall not be an existing annuity beneficiary.
(c)CA Education Code § 25018.1(c) Notwithstanding Section 297 or 299.2 of the Family Code, a spouse as described in paragraph (3) or (5) of subdivision (a) does not include the domestic partner of the member, pursuant to Section 7 of Title 1 of the United States Code.
(d)CA Education Code § 25018.1(d) If there is a determination of community property rights as described in Chapter 12 (commencing with Section 22650) of this part on or before December 31, 2006, the member may elect the annuity that is required by the judgment or court order. This part does not permit the member to change the annuity to the detriment of the community property interest of the nonmember spouse.
disability benefit Defined Benefit Supplement account annuity options member only annuity cash refund feature 100% beneficiary annuity 75% beneficiary annuity 50% beneficiary annuity period certain annuity beneficiary designation community property rights lump-sum payment Internal Revenue Code 401(a)(9) spouse or former spouse domestic partner exclusion
(Amended by Stats. 2019, Ch. 497, Sec. 42. (AB 991) Effective January 1, 2020.)

Section § 25018.2

Explanation

This section explains how a disabled member who chose an annuity can change it. It lists specific conditions for changing annuities, such as the type of annuity initially chosen and the requirement that neither the member nor their beneficiary has a known terminal illness. The member must designate the same beneficiary as before and make the election within a certain timeframe. If they meet all conditions, the change is effective when signed, provided the form is submitted within 30 days. Members can cancel or make a one-time change if certain criteria are met, like acknowledgment notice delays or opting for a preexisting annuity. The board ensures no extra financial burden on the plan from these changes, and changes must respect any court-ordered spouse’s property rights.

(a)CA Education Code § 25018.2(a) A member who is disabled and elected an annuity pursuant to Section 25018 may elect to change annuities, subject to all of the following:
(1)CA Education Code § 25018.2(a)(1) A member who elected a single life annuity with or without a cash refund feature or elected a period certain annuity may not change his or her annuity.
(2)CA Education Code § 25018.2(a)(2) A member who elected an annuity under paragraph (3) or (4) of subdivision (b) of Section 25018 may elect an annuity under paragraph (3) of subdivision (a) of Section 25018.1.
(3)CA Education Code § 25018.2(a)(3) The election by the member under this section is made on or after January 1, 2007, and prior to July 1, 2007.
(4)CA Education Code § 25018.2(a)(4) The member designates the same annuity beneficiary that was designated under the prior annuity election by the member, if the annuity and the annuity designation were effective on December 31, 2006.
(5)CA Education Code § 25018.2(a)(5) The member and the annuity beneficiary are not afflicted with a known terminal illness and the member declares, under penalty of perjury under the laws of this state, that to the best of his or her knowledge, he or she and the annuity beneficiary are not afflicted with a known terminal illness.
(6)CA Education Code § 25018.2(a)(6) The annuity beneficiary has not predeceased the member as of the effective date of the change in the annuity by the member.
(b)CA Education Code § 25018.2(b) The change in the annuity by the member shall be effective on the date the election is signed, provided that the election is on a properly executed form provided by the system and that election is received at the system’s headquarters office within 30 days after the date the election is signed.
(c)CA Education Code § 25018.2(c) After receipt of a member’s election document, the system shall mail an acknowledgment notice to the member that sets forth the new annuity elected by the member.
(d)CA Education Code § 25018.2(d) If the member and the annuity beneficiary are alive and not afflicted with a known terminal illness, a member may cancel the election to change annuities and elect to receive the benefit according to the preexisting annuity election. After cancellation, the member may elect to make a one-time change from the preexisting annuity to any other annuity provided by and subject to the restrictions of paragraph (1), (2), (3), or (4) of subdivision (a). The cancellation or the cancellation and one-time change shall be made on a properly executed form provided by the system and shall be received at the system’s headquarters office no later than 30 calendar days following the date of mailing of the acknowledgment notice. If the member elects to make the one-time change provided by this subdivision, the change shall be effective as of the member’s signature date on the initial election to change.
(e)CA Education Code § 25018.2(e) If the system is unable to mail an acknowledgment notice to the member on or before June 1, 2007, or prior to the end of the election period, provided that the member and the annuity beneficiary are alive and not afflicted with a known terminal illness, the system shall allow a member to cancel the election to change annuities and elect to receive the benefit according to the preexisting annuity election. After cancellation, the member may elect to make a one-time change from the preexisting annuity to any other annuity provided by and subject to the restrictions of paragraph (1), (2), (3), or (4) of subdivision (a). The cancellation or the cancellation and one-time change may be made after the end of the election period if it is made on a properly executed form provided by the system and is received at the system’s headquarters office no later than 30 calendar days following the date of mailing of the acknowledgment notice. If the member elects to make the one-time change provided by this subdivision, the change shall be effective as of the member’s signature date on the initial election to change.
(f)CA Education Code § 25018.2(f) If the member elects to change his or her annuity as described in subdivision (a), (d), or (e), the annuity of the member shall be modified in a manner determined by the board to prevent any additional liability to the plan.
(g)CA Education Code § 25018.2(g) The member shall not change annuities in derogation of a spouse’s or former spouse’s community property rights as specified in a court order.
disabled member annuity options single life annuity cash refund feature period certain annuity terminal illness declaration beneficiary designation acknowledgment notice preexisting annuity election period cancellation rights change effective date prevent additional liability spousal property rights court order compliance
(Amended by Stats. 2013, Ch. 558, Sec. 49. (AB 1379) Effective January 1, 2014.)

Section § 25018.5

Explanation

If a person who used to receive disability benefits goes back to work but their original disability comes back within six months, it's treated as if their disability never ended for benefit purposes. This means they can get their disability payments again from when the disability returned, given certain rules are followed.

When a disabled member returns to work in his or her former position of employment or in a comparable level position and within six months of return experiences a recurrence of the original disability, it shall be considered, for the purpose of determining the duration of the disability, that the condition had its onset as of the date the member first became disabled. The former Defined Benefit Supplement disability benefit under this chapter shall again become payable as of the later of the first day of the month in which the recurrence of the disability occurred or the last day of service for which compensation is payable to the member provided the member complies with the provisions of Section 24003 or 24103, as applicable.
disability recurrence employment position disability onset benefit eligibility Defined Benefit Supplement disability payments reemployment comparable position duration of disability Section 24003 Section 24103 benefit reactivation
(Amended by Stats. 2003, Ch. 859, Sec. 31. Effective January 1, 2004.)

Section § 25018.6

Explanation

This law permits members receiving a disability retirement with a same-sex spouse or ex-spouse as the beneficiary to change their annuity type under certain conditions. There are specific age and time requirements, such as the spouse being significantly younger and changes being made within certain date ranges in 2015. Annuity changes must be recorded using official forms and signed within specified timelines. Members can cancel changes but must meet similar timing and form submission rules. Annuity adjustments cannot harm the financial standing of the retirement plan or infringe on a spouse's or ex-spouse's legal property rights.

(a)CA Education Code § 25018.6(a) A member receiving a disability retirement allowance who elected a beneficiary annuity pursuant to Section 25018.1 with a same-sex spouse or same-sex former spouse designated as annuity beneficiary pursuant to Section 25015 may elect to change his or her annuity subject to the following:
(1)CA Education Code § 25018.6(a)(1) A member who elected the 100 percent beneficiary annuity or the 50 percent beneficiary annuity may elect to change his or her beneficiary annuity to the 75 percent beneficiary annuity described in paragraph (3) of subdivision (a) of Section 25018.1, provided the member’s same-sex spouse or same-sex former spouse is more than exactly 19 years younger than the member.
(2)Copy CA Education Code § 25018.6(a)(2)
(A)Copy CA Education Code § 25018.6(a)(2)(A) A member who elected the compound option described in paragraph (4) of subdivision (a) of Section 24300.1 may elect to change his or her beneficiary annuity to the 100 percent beneficiary annuity described in paragraph (2) of subdivision (a) of Section 25018.1, or the 75 percent beneficiary annuity described in paragraph (3) of subdivision (a) of Section 25018.1, provided the member’s same-sex spouse or same-sex former spouse is more than exactly 10 years younger than the member under the 100 percent beneficiary annuity, or more than exactly 19 years younger than the member under the 75 percent beneficiary annuity.
(B)CA Education Code § 25018.6(a)(2)(A)(B) Any change made pursuant to this paragraph shall be subject to the requirements and restrictions of Section 25015.
(3)CA Education Code § 25018.6(a)(3) The annuity change made by the member pursuant to this section is made on or after July 1, 2015, and on or before December 31, 2015.
(4)CA Education Code § 25018.6(a)(4) The member married a same-sex spouse, the marriage is or was recognized by the United States government, any state government, or any foreign government, and his or her same-sex spouse or same-sex former spouse was designated as his or her annuity beneficiary prior to July 1, 2015.
(5)CA Education Code § 25018.6(a)(5) The same-sex spouse or same-sex former spouse is a current annuity beneficiary, and the same annuity beneficiary or beneficiaries that were designated for the prior annuity elected by the member remain.
(6)CA Education Code § 25018.6(a)(6) The annuity beneficiary or beneficiaries have not predeceased the member as of the effective date of the annuity change made by the member pursuant to this section.
(b)CA Education Code § 25018.6(b) The annuity change made by a member pursuant to subdivision (a) shall be deemed effective as of the effective date of the prior annuity election or June 26, 2013, whichever is later.
(c)CA Education Code § 25018.6(c) The annuity change made by the member pursuant to subdivision (a) shall be on a properly executed form provided by the system subject to the following requirements:
(1)CA Education Code § 25018.6(c)(1) The form is signed and dated by the member and the member’s spouse, if applicable, on or after July 1, 2015, and on or before December 31, 2015.
(2)CA Education Code § 25018.6(c)(2) The date the form is received at the system’s headquarters office is within 30 calendar days after the date of the member’s signature and within 30 calendar days after the date of the spouse’s signature, if applicable.
(d)CA Education Code § 25018.6(d) After receipt of a member’s election, the system shall mail an acknowledgment notice to the member that sets forth the new annuity elected by the member.
(e)CA Education Code § 25018.6(e) A member may cancel an annuity change made pursuant to subdivision (a) and elect to receive his or her benefit according to his or her prior annuity election provided the requirements of paragraphs (5) and (6) of subdivision (a) are still met. The cancellation shall become effective as of the date of the initial annuity change pursuant to subdivision (b) subject to the following requirements:
(1)CA Education Code § 25018.6(e)(1) The cancellation is made on a properly executed form provided by the system.
(2)CA Education Code § 25018.6(e)(2) The form includes the signatures of the member and his or her spouse, if applicable, and the signatures are dated.
(3)CA Education Code § 25018.6(e)(3) The form is received at the system’s headquarters office within 30 calendar days after the date of the acknowledgment notice described in subdivision (d), regardless of whether the form is received after December 31, 2015.
(f)CA Education Code § 25018.6(f) A member may cancel an initial annuity change made pursuant to subdivision (a) and elect to make one subsequent change from his or her prior annuity election to any other annuity provided by and subject to the restrictions of subdivision (a). The subsequent change shall become effective as of the date of the initial annuity change pursuant to subdivision (b) and subject to the following requirements:
(1)CA Education Code § 25018.6(f)(1) The cancellation and subsequent change are made on a properly executed form provided by the system.
(2)CA Education Code § 25018.6(f)(2) The form includes the signatures of the member and his or her spouse, if applicable, and the signatures are dated.
(3)CA Education Code § 25018.6(f)(3) The form is received at the system’s headquarters office within 30 calendar days after the date of the acknowledgment notice described in subdivision (d), regardless of whether the form is received after December 31, 2015.
(g)CA Education Code § 25018.6(g) If a member elects to change his or her annuity pursuant to subdivision (a) or (f), the member’s annuity shall be modified in a manner determined by the board to prevent any additional liability to the plan.
(h)CA Education Code § 25018.6(h) A member shall not change his or her annuity in derogation of a spouse’s or former spouse’s community property rights as specified in a court order.
disability retirement same-sex spouse annuity changes beneficiary age requirement date requirement official forms spouse signature acknowledgment notice cancellation of change financial stability community property rights court order same-sex marriage annuity modification
(Added by Stats. 2014, Ch. 755, Sec. 72. (SB 1220) Effective January 1, 2015.)

Section § 25019

Explanation

This section explains what happens to a member's disability benefits and annuities under certain retirement and disability plans if their benefits stop or restart. If a member stops receiving a disability or retirement allowance, their associated annuity payments end and their account gets credited with the value of those annuity payments. If the disability or retirement allowance starts again later, the member can receive their annuity or a lump-sum payment depending on their account balance. This rule doesn’t apply to members whose annuity continues under specific conditions explained elsewhere.

(a)CA Education Code § 25019(a) If a member’s disability allowance or disability retirement allowance under this part is terminated, payment of a disability annuity based on the balance of credits transferred from the member’s Defined Benefit Supplement account to the Annuitant Reserve also shall terminate. The member’s Defined Benefit Supplement account shall be credited with the actuarial equivalent of the member’s annuity as of the date the annuity is terminated and the Annuitant Reserve shall be reduced by the amount credited to the member’s account.
(b)CA Education Code § 25019(b) If a disability allowance or a service or disability retirement allowance subsequently becomes payable again, an annuity or lump-sum payment based on the remaining balance of credits in the member’s Defined Benefit Supplement account at the time of the subsequent disability or service or disability retirement becomes payable and the balance of credits in the member’s Defined Benefit Supplement account shall be transferred to the Annuitant Reserve or paid to the member in the form of a lump-sum payment.
(c)CA Education Code § 25019(c) This section shall not apply to a member whose annuity continues pursuant to subdivision (b) of Section 25012.
disability allowance termination disability retirement allowance Defined Benefit Supplement account annuity termination account crediting annuity payments balance of credits lump-sum payment subsequent disability Annuitant Reserve service retirement allowance actuarial equivalent Section 25012
(Amended by Stats. 2018, Ch. 416, Sec. 24. (SB 1165) Effective January 1, 2019.)