California Government Code

§ 31776.3

GOV § 31776.3 Effective Jan 1, 2024Div. 4 · Title 3 · Part 3 · Ch. 3 · Art. 11.5

Statute text

(a)Unless the implementing ordinance otherwise provides, the balance in the participant’s program account shall be distributed to the participant in a single lump-sum payment at the time of retirement. If requested by the participant, the payment may be immediately deposited into a qualified tax-deferred account established by the participant.

(b)The implementing ordinance may provide one or more of the following optional forms of distribution for a participant’s account:

(1)Substantially level installment payments over 240 months starting with the date that the member leaves DROP. The balance in the participant’s account during the installment payout period shall be credited with interest at the same rate, if any, as is being credited to program accounts for currently active members. A cost-of-living adjustment may not be made to the monthly amount being paid pursuant to this paragraph.

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Legislative history

Amended by Stats. 2023, Ch. 159, Sec. 16. (SB 885) Effective January 1, 2024.