(a) Notwithstanding Section 21472, the election of an optional settlement in Section 21475, 21475.5, 21476, 21476.5, or 21477 in which a spouse is designated as the beneficiary, may be modified as provided in this section in the event of a dissolution of marriage or a legal separation in which the division of the community property awards the total interest in the retirement system to the retired member, or in an annulment of marriage in which a court confirms the annulment. The modification shall provide that payment shall be continued during the retired member’s lifetime in accordance with the optional settlement then in effect but that no monthly allowance shall be paid following the retired member’s death, and in lieu thereof there shall be paid in a lump sum to the member’s estate or a beneficiary designated by him or her the amount, if any, by which the member’s accumulated contributions at retirement exceed the total payments made to the retired member to the date of his or her death.

(b) This section shall apply to any member who retires on or after January 1, 2018.

Terms Used In California Government Code 21473

  • 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
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • Spouse: includes "registered domestic partner" as required by §. See California Government Code 12.2

(Amended by Stats. 2017, Ch. 241, Sec. 15. (SB 525) Effective January 1, 2018.)

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