Increased Post-Retirement Lump-Sum Death Benefit
Senate Bill 1168 (Cortese) increases the post-retirement lump-sum death benefit for CalPERS contracting agencies from a $500 post-retirement lump-sum death benefit option to $2,000. State and school agencies already provide the $2,000 benefit amount. This increased death benefit applies to retirees that pass away on or after July 1, 2023.
Military Service Credit Purchase Option
Senate Bill 1402 (Umberg) increases eligibility for service credit purchase for military service prior to membership to include active service in the Merchant Marines of the United States on and after January 1, 1950, for state and school members. This bill also requires all contracting agencies to provide their employees the option to purchase service credit for military and Merchant Marines service prior to membership. This impacts 39 contracting agencies that do not currently contract for this benefit.
Industrial Disability Retirement Option Permanent
Assembly Bill 1722 (Cooper) removes the sunset date on a provision in the Public Employees’ Retirement Law that allows CalPERS public safety members who qualify for industrial disability retirement and are under age 50 to receive an actuarially reduced retirement benefit.
Disallowed Compensation Recovery for Retirees
Assembly Bill 1824 (Assembly Committee on Public Employment and Retirement) eliminates the provision that allocates to CalPERS a portion of the 20% penalty an employer pays to compensate a retired member whose pension allowance is reduced due to disallowed compensation as reported by the employer. Employers now pay the full 20% penalty to the retired member.
Special Death Benefit for Safety Officers
Senate Bill 850 (Laird) requires payments of the additional percentage of the special death benefit, payable when the safety member is killed performing their duty by accident or external violence, be made to the person having custody of the member’s child or children when the safety member does not have a surviving spouse. This additional percentage benefit is effective retroactively to January 1, 2013.
CalPERS monitors legislation at the state and federal levels to protect the best interests of our members and employers. To view summaries and reports about legislation that may affect you, visit the CalPERS Legislation page.