CalPERS Optional Benefits Section 21548
Please review the following CalPERS Optional Benefit. This is an important contract enhancement that CalPERS is offering with a minimal cost factor.
Section 21548 – Pre-Retirement Optional Settlement 2 Death Benefit:
The spouse of a deceased member, who was eligible to retire for service at the time of death, may elect to receive the Pre-Retirement Optional Settlement 2 Death Benefit in lieu of the lump sum Basic Death Benefit. The benefit is a monthly allowance equal to the amount the member would have received if he/she had retired for service on the date of death and elected Optional Settlement 2, the highest monthly allowance a member can leave a spouse.
This benefit would not cease upon remarriage if the agency‘s contract includes Section 21551 (Continuation of Pre-Retirement Death Benefits After Remarriage of Survivor).
Employer Cost: Valuation Required
Rough Estimate: 0.1% to 0.3% of payroll
Member Cost: None
BCN can assist you in presenting the value of this Optional Benefit to the Employer for contract consideration. Please do not hesitate to call us at (800) 876-1088.