Public employees' retirement: Public Employees' Retirement System optional settlements.

The Public Employees' Retirement Law (PERL) establishes the Public Employees' Retirement System (PERS) to provide pension and other benefits to members of PERS. Existing law permits a member of PERS who retires on or before December 31, 2017, to elect from among several optional settlements for the purpose of structuring the member's retirement allowance. Existing law also permits a member of PERS who retires on or after January 1, 2018, to elect from among several other optional settlements for the purpose of structuring their retirement allowance. Existing law prohibits a member who elects to receive specified optional settlements from changing the member's optional settlement and designated beneficiary after election of an optional settlement unless a specified event occurs, including the death of a beneficiary who predeceased the member, a dissolution of marriage or a legal separation in which the judgment dividing the community property awards the total interest in the retirement system to the retired member, or in an annulment of marriage in which the court confirms the annulment. This bill would, commencing January 1, 2026, permit a member who elected to receive a specified optional settlement at retirement, if the member's former spouse was named as beneficiary and a legal judgment awards only a portion of the interest in the retirement system to the retired member, to elect to add their new spouse as the beneficiary of the member's interest, subject to meeting certain conditions. This bill would authorize a member to elect this option only once and would preclude elections that would be in derogation of the former spouse's interest in the retirement system. The bill would preclude elections that would result in additional costs to the employer.