Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2013

Additional Government Code Provisions

Provisions Relating to County Employees' Retirement


Chapter 3. County Employees Retirement Law of 1937

Article 1. General

31452. Retirement allowances exempt from taxation. The right of a person to a pension, annuity, retirement allowance, return of contributions, the pension, annuity, or retirement allowance, any optional benefit, any other right accrued or accruing to any person under this chapter, the money in the fund created or continued under this chapter, and any property purchased for investment purposes pursuant to this chapter, are exempt from taxation, including any inheritance tax, whether state, county, municipal, or district. They are not subject to execution or any other process of court whatsoever except to the extent permitted by Section 31603 of this code and Section 704.110 of the Code of Civil Procedure, and are unassignable except as specifically provided in this chapter.

History.—Added by Stats. 1947, p. 1263, in effect September 19, 1947. Stats. 1949, p. 430, in effect May 11, 1949, broadened section to include property purchased for investment purposes. Stats. 1955, p. 2745, in effect September 7, 1955, added the exemption from inheritance tax. Stats. 1982, Ch. 497, in effect January 1, 1983, operative July 1, 1983, deleted ", and from any law relating to bankruptcy or insolvency" after "district" in the first sentence, and deleted ", garnishment, attachment," after "execution" and added "except . . . Civil Procedure" after "whatsoever" in the second sentence. Stats. 2003, Ch. 520 (AB 1585), in effect January 1, 2004, added "Section 31603 of this code and" after "extent permitted by" in the second sentence of the first paragraph.

Former law.—Prior to the 1955 amendment, this section applied only to property taxes and did not provide for the exemption from inheritance tax. Estate of Simpson, 43 Cal.2d 594; Estate of Richartz, 45 Cal.2d 292.

31452.5. Deduction from retirement allowance. (a) The board may comply with and give effect to a revocable written authorization signed by a retired member or beneficiary of a retired member entitled to a retirement allowance or benefit under this chapter, authorizing the treasurer or other entity authorized by the board to deduct a specified amount from the retirement allowance or benefit payable to any retired member or beneficiary of a retired member for deletionany of the following purposes:

(1) Paying premiums on any policy or certificate of group life insurance or group disability insurance issued by an admitted insurer.

(2) Paying premiums for a prepaid group medical or hospital service plan.

(3) Paying premiums for a vision care program or dental plan, approved by the board, for the benefit of the retired member or his or her dependents.

(4) Paying premiums on national service life insurance or United States government converted insurance.

(5) Payment for the purchase of shares in or the payment of money to any regularly chartered credit union.

(6) Payment to a charitable organization or a federally chartered veterans' organization that is approved by the board.

(7) Payments to a recognized retiree organization.

(8) Payment for the purchase of United States savings bonds.

(9) The payment of personal income taxes to the government of the United States or the State of California.

(10) Payment for any retiree benefit programs available through the recognized retiree organization. The board may require that this payment be to a single party designated by the recognized retiree organization, either to itself or to a third-party administrator.

(b) Each month the order shall be drawn in favor of the insurer, institution, credit union, organization, or government named in the written authorization for an amount equal to the deductions authorized in subdivision (a) and made during the month.

(c) The board may charge a reasonable fee for the making of the deductions and payments.

History.—Added by Stats. 1965, p. 1833, in effect September 17, 1965. Stats. 1971, p. 587, in effect March 4, 1972, added "or beneficiary of retired member" in two places; added ", or for the payment . . . State of California" after "credit union"; and substituted "or government named in such" for "named in said" in the first sentence. Stats. 1983, Ch. 558, in effect July 28, 1983, added "or for any dental plan" after "or both" in the first sentence and made grammatical corrections throughout the section. Stats. 1985, Ch. 601, effective January 1, 1986, added "or for charitable organizations . . . United States Savings Bonds," after "regularly chartered credit union," in the first sentence. Stats. 1989, Ch. 121, in effect January 1, 1990, deleted "or" before "for any prepaid", deleted "or" before "for any dental", deleted "or" before "for the payment," deleted "or" before "charitable organizations", added "or federally chartered veterans' organizations" before "as approved", added "or her" after "his", substituted a comma for "or" before "credit union" and added a comma after "credit union" in the first sentence. Stats. 1995, Ch. 584, in effect January 1, 1996, added "or other entity authorized by the board" after "treasurer" in the first sentence. Stats. 2007, Ch. 331 (AB 1288), in effect January 1, 2008, added "vision care program or" after "both, for any" and deleted "or" after "converted insurance," in the first sentence and deleted "and the fees shall be deposited in the county fund from which the salaries are paid" after "deductions and payments" in the second sentence. Amended by Stats. 2012, Ch. 178 (SB 1382), in effect January 1, 2013.

31452.7. Retirement allowance upon member's death. (a) Upon the death of any member after retirement, any retirement allowance earned but not yet paid to the member shall, notwithstanding any other provision of law, be paid to the member's designated beneficiary.

(b) Upon the death of any person receiving a survivor's allowance under this chapter, any allowance earned but not yet paid to the survivor shall, notwithstanding any other provision of law, be paid to the survivor's designated beneficiary.

History.—Added by Stats. 2000, Ch. 497 (SB 2008), in effect January 1, 2001.

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