1. (a) A contracting agency participating in a risk pool may elect to transfer all the assets and actuarial liabilities of a pooled plan comprised of safety members, effective on the June 30th following the election:

   1. (1) Either (A) into another of its pooled plans comprised of safety members, or (B) into one of its non-pooled plans comprised of safety members, upon which time the affected pooled plan shall be removed from the risk pool and affected members shall become part of that non-pooled plan.
   2. (2) Upon transfer of the pooled plan's assets and actuarial liabilities pursuant to paragraph (1), the contracting agency may not transfer the affected assets and actuarial liabilities out of the pooled plan or non-pooled plan, as applicable, to which they were transferred.

2. (b) A pooled plan shall also be removed from a risk pool as follows:

   1. (1) A pooled plan of at least 150 but less than 200 active members on any annual actuarial valuation date beginning on June 30, 2026, may, by amendment to the agency's contract prior to the next annual actuarial valuation date, be removed from the risk pool, effective on the June 30th following the amendment, subject to the approval of the actuary. Upon removal from the risk pool, the affected members shall become part of a non-pooled plan. Notwithstanding the criteria for optional participation in a risk pool in Section 588.3, following optional removal from a pool by contract amendment, that non-pooled plan may not return to a pool unless participation is mandatory under the criteria in Section 588.1.
   2. (2) A pooled plan of 200 or more active members on any annual actuarial valuation date beginning on June 30, 2026, shall be removed from the risk pool, effective on that valuation date. Upon removal from the risk pool, the affected members shall become part of a non-pooled plan.
   3. (3) A contracting agency shall terminate its participation in a risk pool if the agency's contract, or applicable portion of it, is terminated pursuant to Sections 20570, 20571, 20571.5, or 20572 of the Government Code. Upon termination of the contract, or applicable portion of it, the affected members shall become part of the terminated agency pool pursuant to Section 20576 of the Government Code.
3. (c) All mandated benefits under Section 20840 of the Government Code shall continue to apply to rate plans after they are removed from a risk pool. Upon their removal from a risk pool, a contracting agency may amend its contract to exclude mandated benefits for active members who subsequently enter the former pooled plan, effective on the date of the amendment.

Note: Authority cited: Sections 20120, 20121 and 20840, Government Code. Reference: Section 20840, Government Code.

History

1. New section filed 9-23-2004; operative 9-23-2004 pursuant to Government Code section 11343.4 (Register 2004, No. 39).

2. Amendment of section heading and section filed 5-12-2026; operative 7-1-2026 (Register 2026, No. 20).