(a) A member who is eligible and applies for a disability allowance or retirement pursuant to Section 24001 or 24101 may apply to receive a service retirement allowance pending the determination of their application for disability, subject to all of the following:

1. (1) The member is eligible to retire for service under Section 24201 or 24203.

2. (2) The member submits the application on a form provided by the system, subject to all of the following:

   1. (A) The application is executed no earlier than the date the application for disability benefits is executed and no earlier than six months before the effective date of the retirement allowance.
   2. (B) The effective date is no earlier than the first day of the month in which the application for disability benefits is received by the system, unless the application for disability benefits is denied or canceled and the member has indicated an earlier service retirement date on the application to use if denied or canceled. If the application for disability benefits is denied or canceled, the service retirement date of a member who submits an application for retirement pursuant to this section shall be no earlier than 270 calendar days prior to when the application for service retirement is received by the system.
   3. (C) The effective date is later than the last day the member earned creditable compensation pursuant to Section 22119.2 or 22119.3.
   4. (D) The effective date is no earlier than one year following the date on which a retirement allowance was terminated pursuant to Section 24208, unless the application for disability benefits is denied or canceled and the member has indicated an earlier service retirement date on the application to use if denied or canceled. If the application for disability benefits is denied or canceled, the service retirement date is no earlier than one day after the date on which a retirement allowance was terminated pursuant to Section 24208, provided that the retirement allowance is terminated no earlier than 270 calendar days prior to when the application for service retirement is received by the system.
   5. (E) The effective date is no earlier than one year following the date on which a retirement allowance was terminated pursuant to subdivision (a) of Section 24117.
3. (3) The effective date of the service retirement allowance can be no earlier than the date upon and continuously after which the member is determined to the satisfaction of the board to have been mentally incompetent.
4. (4) A member who applies for service retirement under this section is not eligible to receive a lump-sum payment and an actuarially reduced monthly allowance pursuant to Section 24221.
5. (5) A member who applies for service retirement under this section is not eligible to receive an allowance calculated pursuant to Section 24205.
6. (6) A member who applies for service retirement under this section and elects to receive their retirement benefit pursuant to Section 25009 as a lump-sum payment is not eligible to elect a disability benefit pursuant to Section 25016 or 25018.1.

7. (7)

   1. (A) Except as described in subparagraph (B), a member who applies for service retirement under this section shall not receive service credit for each day of accumulated and unused leave of absence for illness or injury or for education pursuant to Section 22717 or 22717.5.
   2. (B) If the application for disability is denied or canceled, the member’s service retirement allowance shall be adjusted to the effective date of the service retirement to include service credited pursuant to Section 22717 or 22717.5.

8. (8) If the application for disability is denied or canceled, a member who applies for a service retirement allowance under this section is subject to all of the following:

   1. (A) Unless otherwise provided in this part, a member who, on their application for service retirement, elects an option pursuant to Section 24300.1 or 24307 may not change or revoke that option.
   2. (B) If the member receives a modified service retirement allowance based on the election of an option pursuant to Section 24300.1 or 24307, that modified service retirement allowance shall continue in effect and unchanged.
   3. (C) If the member did not elect an option pursuant to Section 24300.1 or 24307 and receives an unmodified service retirement allowance, that unmodified service retirement allowance shall continue in effect and unchanged.

(d)

1. (1) Subparagraph (C) of paragraph (1) of subdivision (a) of Section 24001 and paragraph (3) of subdivision (a) of Section 24101 shall not apply to a member who cancels an application for service retirement pursuant to Section 24204 or who terminates a service retirement allowance pursuant to Section 24208, if all of the following apply:

   1. (A) The member earned at least one year of credited service subsequent to the most recent terminated service retirement allowance.
   2. (B) The member’s application for disability under this section is pending determination by the board.
2. (2) If the member’s application for disability under this section is denied or canceled, subparagraph (C) of paragraph (1) of subdivision (a) of Section 24001 and paragraph (3) of subdivision (a) of Section 24101 shall apply if the member submits a new application for disability.

(e)

1. (1) If the board approves the application for disability, and notwithstanding subdivision (f) of Section 24204, the board shall cancel the member’s application for service retirement and shall authorize payment of a disability allowance or disability retirement.
2. (2) If the board approves the application for disability and the member has received service retirement allowance payments under this part, the effective date for the disability allowance or disability retirement shall be the same as the effective date of the service retirement allowance.

(k)

1. (1) The board shall determine a date based on when the system has the capacity to implement the changes made by the act that added this subdivision. The date determined by the board shall be posted on the website of the system no later than January 1, 2026.
2. (2) This section shall become operative on the date determined by the board pursuant to paragraph (1).