Cal. Code Regs. tit. 2 § 581

Current through Register 2024 Notice Reg. No. 24, June 14, 2024
Section 581 - Retirement Allowance Deductions
(a) Approval of Group Insurance Plans.

Any contracting agency under the Public Employees' Retirement System having an insurance plan for its active and retired employees or retired employees or any association composed of employees and persons retired under the Public Employees' Retirement System, or of such retired persons having an insurance plan for its membership, may submit such plan to the board for approval.

(1) Eligibility.

Any person retired under the Public Employees' Retirement System and any beneficiary under the system who is eligible for coverage under an insurance plan approved by the board, may authorize, pursuant to these rules, deductions to be made from monthly payments of his retirement allowance or benefit for payment of premiums, dues, or charges under such plan.

(2) Forms and Procedures.

The executive officer shall prescribe, subject to these rules, procedures and forms for the filing of authorizations.

(3) Place of Filing.

Authorization shall be filed in the office of the board provided, however, that the executive officer may prescribe in the alternative, filing with the insurer or nonprofit membership corporation issuing the insurance plan, if such insurer or corporation has undertaken in a writing filed with the board to:

(A) Supply to the board statements of deductions as specified in authorizations received by it and to save the State, the board and its employees harmless from liability for any errors in withholding or transmitting deductions except for moneys actually withheld but not transmitted.
(B) Keep all authorizations received by it available for inspection by authorized representatives of the board.
(4) Time of Filing.

Authorizations may be made effective only with regard to retirement allowance payments and premiums, dues or charges becoming due more than 30 days after the date of receipt in the office of the board of the authorization, or, where the alternative procedure under these rules is prescribed by the executive officer, of the insurer's or nonprofit membership corporation's statement of authorized deductions.

(5) Authorization Changes.

Deductions may be changed in amount or terminated in the manner provided for filing of authorizations and may be made effective only as to retirement allowances payable more than 30 days after notice is received in the office of the board.

(6) Refunds.

Any amounts which have been deducted and paid to an insurer or nonprofit membership corporation and which are refundable under the insurance plan because of death of the retired person, shall be refunded to the board for distribution under the Public Employees' Retirement Law.

(b) Forms and Procedures for Deductions of National Service Life Insurance.

The executive officer shall provide forms and procedures for authorization by persons retired under the Public Employees' Retirement System of deductions from retirement allowances for payment of premiums on National Service Life Insurance or United States Government Converted Insurance.

(1) Time and Place of Filing.

Authorizations under this article shall be filed in the office of the board and may be given effect only as to retirement allowances payable and premiums becoming due more than 30 days after receipt of the authorization in the office of the board.

(c) Deduction of Employee Association Dues or Credit Union Payments or Shares.
(1) Eligibility and Conditions.

A retired person who was a state member and who is a member of any bona fide association comprised principally of employees and former employees of agencies of the State of California may authorize monthly deduction of dues of such Association, or any retired member or beneficiary who is a member of a credit union may authorize monthly deductions for payments or shares to credit unions from his retirement allowance subject to the following conditions:

(A) The Association or credit union has filed with the Public Employees' Retirement System a written request for such deduction in accordance with this subsection, and the executive officer finds in connection with such request that there is compliance with this subsection.
(B) The retired person's written authorization for deduction is filed with the Association or credit union.
(C) The Association or credit union will keep all authorizations received by it available for inspection by an authorized representative of the Board.
(D) The Association or credit union has filed an agreement which holds the Retirement System harmless from any liability except for dues or payments actually withheld but not transmitted.
(E) Any dues or payments deducted in error shall be offset, or refunded to the Board for distribution in accordance with the Public Employees' Retirement Law.
(F) The allowance of the retired person continues sufficient in amount to permit such deductions after giving effect to requests for income tax deductions and medical-hospital and life insurance premiums.
(2) Forms and Procedures.

The executive officer shall prescribe, subject to these rules, procedures and forms for the implementation of this subsection.

(3) Cost Reimbursement.

The executive officer shall determine the administrative costs from time to time for processing and making such deductions and is authorized to collect such charges by either a withholding from amounts deducted for the Association or credit union or by a direct billing.

(4) Time and Place of Filing.
(A) Authorizations for deductions under this section may be made effective only with regard to retirement allowances payable more than 30 days after receipt in the office of the Board in Sacramento of the Notice of Authorization. No retroactive deductions will be taken.
(B) Deductions may be changed in amount or terminated in the manner provided for filing Notices of Authorization and may be made effective only as to retirement allowances payable more than 30 days after notice is received in the Sacramento office of the Board.

Cal. Code Regs. Tit. 2, § 581

1. Amendment of subsection (c) filed 2-3-78; effective thirtieth day thereafter (Register 78, No. 4). For prior history, see Register 70, No. 16.

Note: Authority cited: Section 20120, Government Code. Reference: Section 20135, Government Code.

1. Amendment of subsection (c) filed 2-3-78; effective thirtieth day thereafter (Register 78, No. 4). For prior history, see Register 70, No. 16.