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21456. Optional settlement 2 consists of the right to have a retirement allowance paid to a member until his or her death and thereafter to his or her beneficiary for life.If the beneficiary predeceases the member and the member elected this section to be effective on or after January 1, 1990, the member’s allowance shall be adjusted effective the first of the month following the death of the beneficiary, to reflect the benefit that would have been paid had the member not selected an optional settlement.If a nonspouse beneficiary waives entitlement to this allowance and the member elected this section to be effective on or after January 1, 1993, the member’s allowance shall be adjusted effective the first of the month following the receipt of the waiver of the allowance entitlement from the nonspouse beneficiary to reflect the benefit that would have been paid had the member not selected an optional settlement.If the marriage of a member is dissolved or annulled or there is a legal separation between the member and the beneficiary spouse and the judgment dividing the community property awards the total interest in this system to the member, and the member elects this section to be

aration between the member and the beneficiary spouse and the judgment dividing the community property awards the total interest in this system to the member, and the member elects this section to be effective on or after January 1, 1994, the member’s allowance shall be adjusted effective the first of the month following the filing of the judgment with the board to reflect the benefit that would have been paid had the member not selected an optional settlement.If the beneficiary spouse predeceases the member on or after January 1, 1990, and the member elected this section to be effective prior to January 1, 1990, the member’s allowance shall be adjusted effective the first of the month following the death of the beneficiary spouse to reflect a new allowance as calculated below.If the nonspouse beneficiary waives entitlement to this allowance on or after January 1, 1993, and the member elected this section to be effective prior to January 1, 1993, the member’s allowance shall be adjusted, effective the first of the month following receipt by the board of the waiver of entitlement from the nonspouse beneficiary, to reflect a new allowance as calculated below.If the marriage of a

usted, effective the first of the month following receipt by the board of the waiver of entitlement from the nonspouse beneficiary, to reflect a new allowance as calculated below.If the marriage of a member is dissolved or annulled or there is a legal separation between the member and the beneficiary spouse and the judgment dividing the community property awards the total interest in the retirement system to the member, and the member elected this section to be effective prior to January 1, 1994, the member’s allowance shall be adjusted, effective the first of the month following the filing of the judgment with the board to reflect a new allowance as calculated below. The qualifying event shall be the date on which the judgment is filed with the board.A percentage factor shall be applied to the difference between the member’s unmodified allowance and optional settlement 2 allowance, both of which shall include applicable cost-of-living increases. The product of this equation shall then be added to the member’s optional settlement 2 allowance and the total amount shall become the member’s base allowance.

de applicable cost-of-living increases. The product of this equation shall then be added to the member’s optional settlement 2 allowance and the total amount shall become the member’s base allowance. The percentage factor applicable to each member shall be determined by the time between the member’s retirement effective date and the date of death of the beneficiary spouse or by the time between the member’s retirement effective date and the date of the receipt of either the waiver of the allowance entitlement or the judgment of dissolution, annulment, or legal separation according to the following table:Period between the member’s retirement effective date and the date of the qualifying eventPercentageLess than 12 months95%12 months through 23 months85%24 months through 35 months75%36 months through 47 months65%48 months through 59 months55%60 months through 71 months45%72 months through 83 months35%84 months through 95 months25%96 months through 107 months15%108 months through 119 months 5%120 months or more 0%Nothing in this section shall result in additional cost to the employer.This section shall apply to any member who retires on or before December 31, 2017.(Amended by Stats.

ths 5%120 months or more 0%Nothing in this section shall result in additional cost to the employer.This section shall apply to any member who retires on or before December 31, 2017.(Amended by Stats. 2016, Ch. 199, Sec. 11. (AB 2404) Effective January 1, 2017.)

§ 21456