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HomeEducation CodeDiv. 1Pt. 13Ch. 28§ 24340 Retirement Option Change Rules

§ 24340 Retirement Option Change Rules

Education Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 24340 Retirement Option Change Rules

Key Takeaways

  • •If you had a retirement plan choice before 1991, you could switch to Option 6 or 7 without losing money, but only if you did it between January 1, 1991, and December 31, 1991.
  • •You had to keep the same person as your beneficiary (the person who gets the money if you die).
  • •If your beneficiary died, you had to make the change at least 30 days before they passed away, or your switch wouldn’t count.

Example

Imagine you picked a retirement plan in 1990 and named your spouse as the beneficiary. In 1991, you decide you want to switch to a different plan (Option 6 or 7) without losing money.

You could do this only if you made the change before the end of 1991. You also had to keep your spouse as the beneficiary. If your spouse got very sick and you waited too long to make the change, your switch wouldn’t count if they passed away within 30 days of your request.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 24340 Retirement Option Change Rules

(a) A member who has a preretirement election of an option in effect on December 31, 1990, may change his or her preretirement election of Option 2, Option 3, Option 4, or Option 5 to either Option 6 or Option 7 without the allowance reduction prescribed in Sections 24309 and 24310, provided the change is made on or after January 1, 1991, and prior to the earlier of January 1, 1992, or the member’s retirement under this part. (b) If the member elects to change his or her option under this section, then the member shall retain the same option beneficiary as named in the prior preretirement election. The election to change the preretirement election under this section shall be void if not received in the system’s headquarters office at least 30 days prior to the death of the option beneficiary. (Added by renumbering Section 24311 by Stats. 2014, Ch. 755, Sec. 60. (SB 1220) Effective January 1, 2015.)

Last verified: January 23, 2026

Key Terms

preretirement electionOption 2Option 3Option 4Option 5Option 6Option 7allowance reductionoption beneficiary

Related Statutes

  • § 24345 Retiree Beneficiary Option Changes
  • § 24323 Retirement Beneficiary Replacement Rules
  • § 24342 Retiree Beneficiary Option Change
  • § 24343 Retirement Benefit Adjustment Eligibility
  • § 24344 Retirement Option Change Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Education Code. Section 24340.
View Official Source