(a) A participant who is employed to perform creditable service subject to coverage by the Cash Balance Benefit Program while receiving an annuity under the program may terminate the annuity upon written request to the system, effective upon a date designated by the participant, and make contributions to the program based on salary paid by the employer for the employment, subject to the following conditions:
(1) The request for termination of the annuity is filed on a form prescribed by the system, and the form is executed no earlier than six months before the effective date of the termination.
(2) The effective date of the termination of the annuity shall be no earlier than the first day of the month in which the request for termination is received in the system’s headquarters office.
(b) A participant who files a request for termination of the annuity may cancel or change the termination upon written request to the system. The request for cancellation or change must be on a form provided by the system and shall be received in the system’s headquarters office no later than the last day of the month in which the request for termination to be canceled or changed is effective.
(c) Upon termination of the annuity, the employee and employer account of the participant shall be credited with respective balances that reflect the actuarial equivalent of the participant’s retirement benefit as of the date the participant terminates the annuity and the Annuitant Reserve shall be reduced by the amount of the credits.
(d) Upon election of a subsequent annuity, the credits in the participant’s employee account and employer account shall be transferred to the Annuitant Reserve.
(Amended by Stats. 2020, Ch. 275, Sec. 22. (AB 2101) Effective January 1, 2021.)