CA AB2196

Permits members, survivors, or beneficiaries to elect on or after January 1, 2020, to receive a reduced allowance by the actuarial equivalent of any unpaid balance for service credit elections instead of continuing installment payments.

Requires all service credit elections with effective dates on or after January 1, 2020, to become due and payable at retirement or preretirement death, with allowances reduced by the actuarial equivalent of any remaining unpaid balance.

Allows members retiring during a suspension period of installment payments to reduce their allowance by the actuarial equivalent of the recalculated unpaid balance as an alternative to lump-sum payment or cancellation.

Specifies that members failing to elect payment options during suspension periods will have their allowance automatically reduced by the actuarial equivalent of the unpaid balance for elections effective on or after January 1, 2020.

Modifies First Tier benefit election provisions to allow deposit requirements to be satisfied by reducing the member's allowance by the actuarial equivalent of unpaid balances at retirement or death, effective January 1, 2020.