This law establishes and maintains a pension plan specifically for bar pilots in San Francisco, known as the San Francisco Pilot Pension Plan.

This law ensures that all money made from the pension plan is used only for paying pensions to retired or disabled pilots, their spouses, and covering the plan's costs.

This law states that the pension plan is managed and payments are made by fiduciary agents chosen by a board. Pilots have no control over how the plan is managed, except for collecting revenues as specified or if the board decides otherwise. The pilots are responsible for gathering revenues at no expense to the state or board, sending them monthly to the fiduciary agents. These revenues shouldn't be part of the account mentioned in another section.

This law outlines how pensions are calculated for retired and disabled pilots and inland pilots. If a pilot has completed 25 years of service, their pension is 46% of the average net income from their best three of the last five years. Those with less than 25 years get a prorated amount based on their service years. Guidelines are given for calculating pensions for disabled pilots and for those who retired before January 1, 1985, or after. It also details how surviving spouses receive pension benefits, typically three-fourths of what the deceased pilot would have received. Service of six months or more counts as a full year, and pensions are payable for the lifetime of the retired pilot or their spouse. Special considerations are included for pilots licensed in 1985 with particular service conditions.

This law outlines the eligibility criteria for pilots to receive pensions. To be eligible, a pilot must either have served as a pilot for at least 10 years or be at least 62 years old, retired after January 1, 1972, and be at least 60 years old. Disabled pilots are also eligible if a board certifies their disability with medical evidence. Special rules apply to inland pilots, who must also serve 10 years post-1987, have provided pilotage assistance industry-wide, completed a minimum number of assignments per year since 1994, and retired post-1987.

Surviving spouses of pilots may receive pensions if the pilot held a license and died after specified dates (post-1972 for pilots and post-1987 for inland pilots). They must have been married for at least a year before the pilot passed away, and pensions cease upon remarriage, though the pension transfers to another recipient as defined by the statute.

This law explains how to calculate additional charges for pilotage services in California to fund a pension plan. Four times a year, a fiduciary agent checks who is eligible to receive pension benefits and how much they should get. They also calculate how much needs to be collected each month based on the shipping volume handled by licensed pilots in the past year. These charges are determined by the tonnage of ships and are stated in mills (a fraction of a cent) per ton. The costs of the agent's services are also included in these calculations. These rates take effect at specific times each year, depending on when the calculations are made, and they last for the specified benefit periods.

This law outlines how benefits are distributed to retired and disabled maritime pilots, their spouses, and other beneficiaries. Each month, the benefits paid are equal to the revenue collected the previous month, minus any expenses. The amount of revenue might be more or less than the target pension levels set, so distributions are adjusted proportionately. Any revenue received or expected for a month or year is part of the pension plan for pilotage. The fiduciary agent decides the accounting method used, and if receivables are pending, adjustments are made later. Benefits are recalculated and distributed every three months, starting in February, May, August, and November, and cover payments for three months at a time.

The board responsible for pensions of retired or disabled pilots and their spouses has to review the benefits they receive every three years or when local inflation rises by over 12%. They can decide to increase the pensions based on changes in the maritime industry and cannot increase them by more than half of the local inflation rate. If the retiree has not been retired for the entire three-year period, their increase is adjusted based on how many months they’ve been retired.

This law allows a board to review the pension plan and suggest changes if needed. However, any changes to the monthly pension amounts can only be made as specified by another related section, Section 1167.