County Employees Retirement Law of 1937 (CERL) - sdcera

member’s surviving child or children under the age of 18 years, divided among those children
in equal amounts, or, if there is no surviving spouse or surviving child or children under the
age of 18 years, to the deceased member’s estate.
(d) If a Retirement Plan E member elects and purchases an elective COLA, then,
notwithstanding any other provision of this article, every Retirement Plan E allowance or
postretirement death allowance payable on and after the operative date of this section, to or
on account of that member who retires or dies or who has retired or died shall, as of April 1
of each year, be increased or decreased by an amount equal to that member’s elective COLA
as calculated by the board of retirement before April 1 of each year. No decrease in the cost of
living shall reduce an allowance below the amount being received by the member or his or her
beneficiary on the effective date of the allowance or this provision, whichever is later.
Notwithstanding any other provisions of this section, if a member retires before
attaining the age of 65 years, his or her elective COLA shall be actuarially reduced to reflect that
earlier retirement age unless, within 120 days after his or her retirement, he or she contributes
by lump-sum the amount necessary to complete the purchase of his or her elective COLA as
determined by the board. If, upon a member’s retirement, the board of retirement determines
that a member has paid more contributions than necessary to purchase his or her elective
COLA in accordance with subdivision (b), the member shall receive a refund of those excess
contributions and all interest credited thereto. Upon retirement or termination of employment,
but before he or she begins receiving his or her elective COLA, a member may revoke his or her
election to purchase an elective COLA and receive a refund of any contributions made toward
the purchase of the elective COLA and all interest credited thereto.
(e) If a Retirement Plan E member or former member is totally disabled, begins receiving
disability benefits, other than state-mandated benefits, under a disability plan provided by
the employer on or after the operative date of this section, and, on or after that date, his or her
employment terminates, then, for purposes of calculating the member’s or former member’s
final compensation, his or her predisability compensation, as previously adjusted in accordance
with this subdivision and paragraph (5) of subdivision (f), shall, as of April 1 of each year
after his or her employment terminates and during a period for which he or she both remains
totally disabled and earns “service” within the meaning of subdivision (g) of Section 31488, be
increased or decreased by an amount equal to that member’s or former member’s predisability
compensation adjustment as calculated by the board of retirement before April 1 of each year.
(f) As used in this section:
(1) “Automatic COLA” means, with respect to any member of Retirement Plan E,
an amount equal to the allowance then being received (including any automatic or elective
COLAs previously received), multiplied by a percentage (rounded to the nearest one-tenth
of 1 percent) derived by taking the number of months of service the member earned on and
after the operative date of this section, dividing by the member’s total months of service,
and multiplying by a percentage equal to the lesser of 2 percent or the percentage found by
the board of retirement to approximate to the nearest one-half of 1 percent the percentage
of annual increase or decrease in the cost of living as of January 1 of each year as shown by
the then current CPI, as adjusted for the amount applied from a prior year. For purposes of
applying this formula, the amount of any annual cost-of-living increase under the CPI in excess
of the 2 percent maximum shall be accumulated and applied in future years in which the
annual cost-of-living increase under the CPI is less than the 2 percent maximum.
(2) “CPI” means the Bureau of Labor Statistics Consumer Price Index for All Urban
Consumers for the area in which the county seat is situated.
(3) “Elective COLA” means, with respect to any member of Retirement Plan E, an
amount equal to the allowance then being received (including any automatic or elective COLAs
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Article 1.5, §31495.5.