FROM: Barbara Hannah, Chief Counsel
SUBJECT: Rescind Benefit Policy No. 022, and Replace with Benefits Policy No. 029 - Standard for Determining the Eligibility of a Continuance for a Survivor Benefit
RECOMMENDATION:
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Rescind Benefits Policy No. 022 - Standard for Determining Whether a Minor Child is Regularly Enrolled as Full-Time Student, and replace with Benefits Policy No. 029 - Standard for Determining the Eligibility of a Continuance for a Survivor Benefit.
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BACKGROUND:
The San Bernardino County Employees’ Retirement Association (SBCERA) administers survivor continuance allowances pursuant to the County Employees Retirement Law of 1937 (CERL) upon the death of members. In general, if there is no surviving spouse entitled to an allowance or there is a surviving spouse caring for one or more children, the allowance shall be paid to an eligible surviving beneficiary so long as the child or children are unmarried and under the age of 18 years (although pursuant to certain statutes the child may be 18). In all cases, with the exception of child, who is totally disabled (Article 15.6), the benefits will continue to a child up to the date of the child’s 22nd birthday if the child remains unmarried and is regularly enrolled as a full-time student in an accredited school as determined by the Board of Retirement (Board). The attached policy is an interpretation of the survivor continuance statutes concerning specific provisions where it is essential for the Board to adopt standards for determining the continuance to an eligible surviving beneficiary.
The proposed new Policy sets standards for the following:
1. The survivor benefit statutes require that the child be enrolled in an accredited school. Prior Benefits Policy No. 022 attempted to define the types of learning institutions that would be acceptable as an accredited school. Instead of listing the acceptable schools, this policy interprets that an approved accredited school is one that is accredited by an agency whose determination concerning the institution’s accreditation is accepted by a local, state, or federal government. The United States Department of Education, as well as each state, maintains a searchable database of accredited schools.
2. In addition, the survivor benefit statutes require that the child be enrolled as a full-time student. The prior policy only required the child to be a student during some part of each of any five (5) months of the immediately preceding twelve calendar months. The new policy is more in line with the requirements of a full-time student under the U.S. Department of Education. Here, as long as the child is continuously enrolled in the number of units or courses required to be considered a full-time student by the accredited school in which the child is in enrolled, then the child will be considered a full-time student.
3. The prior policy lacks any information as to what would occur if the child did not attend school during the summer months in which the regular session of a school is not in session. The new policy provides an interpretation that a break in enrollment for regular summer or term breaks will not be considered a break in full-time enrollment as long as the child returns to a full-time course schedule upon the commencement of the next regular term of the accredited school.
4. The new policy memorializes an existing procedure that requires the recipient or guardian to certify every six months that the child is unmarried and is a full time student enrolled in an accredited school.
5. Lastly, pursuant to Article 15.6 of the CERL, a child, any age, who is totally disabled, and became totally disabled before reaching 18 years of age is exempt from the requirement of enrolling as a full-time student in an accredited school. Staff requested that the Administrative Committee allow staff to incorporate in the policy language concerning this exemption, which is now incorporated in the document attached as Exhibit B.
Note: There is no redline version provided for the updated policy relative to Exhibit A (current policy) because this policy represents a clean-up that is more in line with the statutory requirements for a survivor benefit to be continued to an eligible surviving beneficiary.
However, the redlines on the proposed new policy are reflective of changes made pursuant to discussions with the Administrative Committee.
BUDGET IMPACT:
None.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Operational Excellence & Efficiency
COMMITTEE REVIEW:
This item was reviewed by the Administrative Committee at its August 15, 2019, meeting and recommends Board approval, with a 4-0 vote, with modifications reflected as redlined changes in Exhibit A.
STAFF CONTACT:
Barbara Hannah
ATTACHMENTS:
Exhibit A: Benefits Policy No. 029 (Issue 1.0) - Standard for Determining the
Eligibility of a Continuance for a Survivor Benefit
Exhibit B: Benefits Policy No. 022 (Issue 1.0) - Standard for Determining Whether a Minor Child is “Regularly Enrolled” as a Full-Time Student (Rescind)