(a) The quarterly supplemental payments made from the Supplemental Benefit Maintenance Account pursuant to Section 24415 as of July 1, 2023, shall be increased as follows:

Period during which retirement,
disability, or death occurred:

Terms Used In California Education Code 24410.8

  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC

Percentage increase:

After Dec. 31, 1998

0.0%

Between Jan. 1, 1990, and Dec. 31, 1998

5.0%

Between Jan. 1, 1980, and Dec. 31, 1989

10.0%

Prior to Jan. 1, 1980

15.0%

(b) The increase provided by this section shall be determined on July 1, 2023, by applying the applicable percentage to the sum of the monthly allowance, including all allowance increases authorized by this part, and excluding annuities payable from accumulated annuity deposit contributions and tax-sheltered annuity contributions, and the monthly equivalent of any purchasing power payments made pursuant to Section 24415.

(c) Two percent of the amount determined pursuant to subdivision (b) shall be added to the increase provided by subdivision (a) each year commencing on July 1, 2024. This amount shall not be compounded.

(d) The increases provided pursuant to this section shall be paid quarterly and are in addition to any payments received by a retired member or nonmember spouse, disabled member, or beneficiary, including an option beneficiary, under Section 24415.

(e) If the monthly allowance payable is adjusted after the effective date of this section, the percentage increase applied on the effective date of this section shall be applied to the adjusted monthly allowance payable.

(f) The increases provided by this section are not part of the base allowance and will be payable only to the extent that funds are available from the Supplemental Benefit Maintenance Account as provided pursuant to Section 24415.

(g) The increases authorized by this section are vested only up to the amount payable as a result of the annual appropriation made pursuant to Section 22954, the application of Section 24415, and the adjustments made by the board pursuant to Section 24415.5.

(h) Benefits payable under this section shall be initially payable by the system on July 1, 2023.

(Added by Stats. 2022, Ch. 818, Sec. 1. (SB 868) Effective January 1, 2023.)

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