§ 22141 Retirement Benefit Improvement Factor

Key Takeaways

•This law gives a 2% yearly increase to certain retirement benefits starting from specific years (1981, 2001, and 2002).
•The increase is not added on top of previous increases (no compounding), and it doesn’t apply to certain types of annuities.
•The government can change the increase amount based on the economy, but they can’t lower your retirement money below what you would have gotten without this law.
•If workers stop paying extra money into the system (after July 1, 2014), the government can adjust the increase for future retirees.

Example

Imagine you get a retirement check every month. This law says your check might go up by 2% every year, but only if you started getting checks after certain years.

If the economy is bad, the government might lower the 2% increase, but they can’t make your check smaller than it would have been without this law.

(a) Notwithstanding Section 22140, “improvement factor” means an increase of 2 percent in benefits provided under Sections 24408 and 24409 for each year commencing September 1, 1981, and under Section 24410.5 for each year commencing September 1, 2001, and under Sections 24410.6 and 24410.7 for each year commencing September 1, 2002. The improvement factor shall not be compounded nor shall it be applicable to annuities payable from the accumulated annuity deposit contributions or the accumulated tax-sheltered annuity contributions. The Legislature reserves the right to adjust the amount of the improvement factor up or down as the economic conditions dictate. No adjustments of the improvement factor shall reduce the monthly retirement allowance or benefit below that which would be payable to the recipient under this part had this section not been enacted. (b) Beginning July 1, 2014, the improvement factor shall vest for an active member in any calendar year in which active members paid increased member contributions pursuant to Section 22901.7. (c) If, for any reason, the increased employee contribution referenced in subdivision (b), and as required by subdivisions (a) and (b) of Section 22901.7, ceases to be legally required to be made pursuant to the act that added this subdivision, then the Legislature reserves the right to adjust the amount of the improvement factor up or down as the economic conditions dictate for all members who retire on or after January 1, 2014. No adjustments of the improvement factor shall reduce the monthly retirement allowance or benefit below that which would be payable to the recipient under this part had this section not been enacted. (d) For members who retired before the calendar year in which Section 22901.7 was added, the Legislature reserves the right to adjust the amount of the improvement factor up or down as the economic conditions dictate. No adjustments of the improvement factor shall reduce the monthly retirement allowance or benefit below that which would be payable to the recipient under this part had this section not been enacted. (Amended by Stats. 2015, Ch. 123, Sec. 5. (AB 991) Effective January 1, 2016.)

Key Takeaways

•This law gives a 2% yearly increase to certain retirement benefits starting from specific years (1981, 2001, and 2002).
•The increase is not added on top of previous increases (no compounding), and it doesn’t apply to certain types of annuities.
•The government can change the increase amount based on the economy, but they can’t lower your retirement money below what you would have gotten without this law.
•If workers stop paying extra money into the system (after July 1, 2014), the government can adjust the increase for future retirees.

Example

Imagine you get a retirement check every month. This law says your check might go up by 2% every year, but only if you started getting checks after certain years.

If the economy is bad, the government might lower the 2% increase, but they can’t make your check smaller than it would have been without this law.

Key Takeaways

Example

Key Terms

References

§ 22141 Retirement Benefit Improvement Factor

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References