The death benefit shall become payable to the beneficiary upon receipt of proof of the participant’s death.
Chapter 11Death Benefit
Section § 27000
If someone who has a death benefit plan passes away, the money from that plan will be given to the person they designated as the beneficiary once they provide proof of the individual's death.
death benefit beneficiary proof of death participant payment insurance claim designated person benefit plan proof requirement
Section § 27001
This section states that if someone has passed away, the person they designated (beneficiary) can request to receive any death benefits from the Cash Balance Benefit Program. The system should pay these benefits as soon as they get proof of the person's death.
Notwithstanding Chapter 3 (commencing with Section 13100) of Part 1 of Division 8 of the Probate Code or any other provision of law to the contrary, the death benefit payable under the Cash Balance Benefit Program may be requested by the beneficiary and paid by the system as soon as practicable after the system receives proof of the participant’s death.
death benefit Cash Balance Benefit Program beneficiary request participant's death proof of death payment process system payout immediate payment beneficiary death benefits request after death benefit proof submission expedited payment financial beneficiary probate exception
Section § 27002
If someone who is part of a retirement plan dies before the payments (or annuity) start, their beneficiaries will get a death benefit. This benefit is the total of what the person and their employer contributed to their retirement accounts.
If the participant died prior to commencement of an annuity, the death benefit shall be an amount that is equal to the sum of the participant’s employee account and employer account.
death benefit annuity commencement employee account employer account retirement plan participant death contributions beneficiaries retirement accounts payment commencement
Section § 27003
This law states that the standard way to give out a death benefit is through a single lump-sum payment. Once this payment is made to the beneficiary, no more benefits will be provided under the Cash Balance Benefit Program.
The normal form of death benefit under this part is a lump-sum payment. Upon distribution of the lump-sum payment to the beneficiary, no further benefits shall be payable from the plan with respect to the Cash Balance Benefit Program.
death benefit lump-sum payment beneficiary Cash Balance Benefit Program distribution no further benefits payment plan death benefits single payment benefit distribution final payment
Section § 27004
If you are a beneficiary of a Cash Balance Benefit Program in California, and your account balance is at least $3,500, you can choose to receive the remaining money as monthly payments over a set period. This period can be anywhere from three to ten years, but not longer than your life expectancy. If you pass away before all the payments are made, you can choose someone else to receive the rest of the money. If the beneficiary is a trust, but the trust is found to be invalid, any decisions made by the trustee about the payments become void.
(a)CA Education Code § 27004(a) A beneficiary, other than an entity except a trust as defined in Section 26106.5, may elect to receive the final benefit payable under the Cash Balance Benefit Program as an annuity payable in monthly installments provided that the sum of the employee account and the employer account that is payable to the beneficiary equals at least three thousand five hundred dollars ($3,500).
(b)CA Education Code § 27004(b) A beneficiary who elects to receive an annuity pursuant to this section shall elect a period certain annuity. This form of payment is an annuity equal to the actuarial equivalent of the sum of the balance of the employee account and the employer account on the date of the participant’s death. The
annuity shall be payable in whole year increments over a period of years specified by the beneficiary, from a minimum of three years to a maximum of 10 years. However, the annuity period shall not exceed the life expectancy of the beneficiary of the trust that is beneficiary with respect to the trust’s interest in the plan.
(c)CA Education Code § 27004(c) The beneficiary may designate a payee to receive the remaining balance of payments if the beneficiary dies prior to the end of the period certain. Unless otherwise specified in the trust instrument, the trustee or beneficiary of the trust that is an annuity beneficiary is entitled to name a subsequent beneficiary if the trust is valid. If the trust is determined to be invalid or terminated, any election by the trustee pursuant to this subdivision shall be void and the beneficiary shall be entitled to exercise all rights provided to annuity beneficiaries under this part.
Cash Balance Benefit Program beneficiary annuity monthly installments employee account employer account period certain annuity actuarial equivalent life expectancy trust beneficiary invalid trust subsequent beneficiary trustee designation annuity payments balance of payments
Section § 27005
This section explains that if a participant in a retirement plan passes away, the value of the annuity, or regular payment, will be calculated based on the total amount in both the employee's account and the employer's account at the time the death benefit is payable. The calculation will take into account the age of the beneficiary—who is the person receiving the benefit—at the time the payment is made.
The annuity elected under this chapter shall be determined as a value actuarially equivalent to the sum of the participant’s employee account and employer account as of the date the death benefit becomes payable. The annuity shall be calculated using the age of the beneficiary on the date the benefit becomes payable.
annuity employee account employer account actuarially equivalent death benefit beneficiary age beneficiary payment calculation retirement plan value determination annuity calculation death benefit payable benefit payment age actuarial value participant death
Section § 27006
If someone chooses to receive a death benefit as regular payments over time, the money from their personal and employer accounts will be moved to a special fund for annuities called the Annuitant Reserve.
Upon the beneficiary’s election to receive the death benefit under this part in the form of an annuity, the credits in the participant’s employee account and employer account shall be transferred to the Annuitant Reserve.
beneficiary election death benefit annuity credits transfer participant's employee account employer account Annuitant Reserve benefit payment financial fund transfer annuity form annuity payments retirement fund account transfer beneficiary options fund management
Section § 27007
This law outlines what happens to a participant's annuity when they pass away. If the participant was getting a regular payment (annuity), the payments follow the plan they chose. For a single life annuity with a cash refund, any leftover money is given in one payment to their chosen beneficiary. Without a cash refund, no money is left. For a joint and survivor annuity, payments continue to the beneficiary for their lifetime, unless that beneficiary died first. For a period certain annuity, if all payments haven't been made, they go to a designated beneficiary. If this beneficiary is a person, payments continue as planned; if not, the remaining balance is paid in full right away.
(a)CA Education Code § 27007(a) If the participant died while receiving an annuity under this part, the death benefit shall be payable in accordance with the terms of the annuity elected by the participant.
(b)CA Education Code § 27007(b) Upon the death of a participant who elected a single life annuity with a cash refund feature under this part, any balance remaining in the participant’s employee account and employer account shall be payable in a lump sum to the beneficiary.
(c)CA Education Code § 27007(c) Upon the death of a participant who elected a single life annuity without a cash refund feature under this part, no death benefit shall be payable.
(d)CA Education Code § 27007(d) Upon the death of a participant who elected a joint and survivor annuity under this part, the annuity shall continue for life to the surviving beneficiary under the joint and survivor option. If the beneficiary under the joint and survivor option has predeceased the participant, no death benefit shall be payable.
(e)CA Education Code § 27007(e) Upon the death of a participant who elected a period certain annuity under this part prior to the completion of annuity payments due the participant, the remaining balance of payments shall be paid to the beneficiary designated by the participant pursuant to Section 27100.
(1)CA Education Code § 27007(e)(1) If the beneficiary is a person, the remaining period certain annuity payments shall be made over the amount of time remaining in
the period originally elected by the deceased member and shall be made in payments equal to the amount of the annuity payments previously received by the deceased member.
(2)CA Education Code § 27007(e)(2) If the beneficiary is not a person, the remaining balance of period certain annuity payments shall be made in a lump-sum payment equal to the present value of the balance of payments due over the time remaining in the period originally elected by the deceased member.
death benefit single life annuity cash refund feature joint and survivor annuity period certain annuity annuity payments beneficiary employee account employer account lump sum payment remaining balance surviving beneficiary elected annuity present value payment continuation
Section § 27008
When someone receiving an annuity dies, the next steps depend on the type of annuity. If they had a joint and survivor annuity or a single life annuity without a refund, nothing more is paid. However, if they had a period certain annuity, any remaining payments are converted into a single lump sum given to their estate, unless they chose someone else to get this payment beforehand.
Upon the death of a beneficiary who was receiving an annuity under this part due to the death of a participant, payment shall be made as follows:
(a)CA Education Code § 27008(a) Upon the death of a beneficiary under a joint and survivor option, no amount shall be payable.
(b)CA Education Code § 27008(b) Upon the death of a beneficiary who elected a single life annuity without a cash refund feature, no amount shall be payable.
(c)CA Education Code § 27008(c) Upon the death of a beneficiary who was receiving a period certain annuity, the actuarial equivalent of the remaining balance of payments shall be paid in a lump sum to the estate of the beneficiary unless the beneficiary designated a payee to receive the remaining balance of payments as provided in Section 27004.
annuity beneficiary death joint and survivor option single life annuity cash refund period certain annuity actuarial equivalent lump sum payment estate designated payee Section 27004
