(a) "Option beneficiary" means the person or trust designated by a member to receive a retirement allowance under the Defined Benefit Program upon the member's death.
(b) For purposes of this section, "trust" means an irrevocable trust with the following characteristics:
(1) The trust satisfies the requirements of subparagraph (A) or (C) of paragraph (4) of subdivision (d) of Section 1396p of Title 42 of the United States Code.
(2) The trust satisfies the requirements of Section 1.401(a)(9)-4 of Title 26 of the Code of Federal Regulations.
(3) The trust, or the account in a pooled trust, is for the sole benefit of a single beneficiary and other beneficiaries to the trust, if any, are successor beneficiaries.
(4) The beneficiary of the trust who is beneficiary with respect to the trust's interest in the member's benefit shall be considered the designated option beneficiary for the purpose of determining eligibility for, and the amount and duration of, benefits under the plan.
(Amended by Stats. 2016, Ch. 559, Sec. 2.)