Public employees' retirement: postretirement death benefits.

The Public Employees' Retirement Law requires that, upon the death of any state or school member after retirement and while receiving a retirement allowance, the sum of $2,000 be paid to the member's designated beneficiary, as specified. Existing law provides that the additional employer contributions required to fund this benefit be computed as a level percentage of member compensation, and these are deposited in the Public Employees' Retirement Fund, a continuously appropriated fund. This bill would, commencing January 1, 2011, increase the amount of benefits payable to designated beneficiaries of retired school members, to $4,000 for deaths of retired school members occurring on or after January 1, 2011, and before January 1, 2012; to $4,500 for deaths of retired school members occurring on or after January 1, 2012, and before January 1, 2013; to $5,000 for deaths of retired school members occurring on or after January 1, 2013, and before March 31, 2014. The benefit amount payable to designated beneficiaries of retired school members who die on or after April 1, 2014, would be in the amount of $5,000, as annually adjusted pursuant to a specified formula. By providing for funds in the Public Employees' Retirement Fund to be spent for a new purpose, and by increasing contributions to that fund, this bill would make an appropriation.