The benefits provided under the Supplemental Contributions Program shall supplement the benefits provided under Part 3 (commencing with Section 20000) and Chapter 3.5 (commencing with Section 9350) of Part 1 of Division 2.

The design and administration of the Supplemental Contributions Program shall conform with the applicable provisions of Title 26 of the United States Code and the Revenue and Taxation Code.

“Account” means the account maintained with respect to the participant that reflects the aggregate value of the following amounts credited to the participant:

“Beneficiary” means any person or persons designated by the participant pursuant to this part, or otherwise entitled by statute, to receive distributions from the participant’s account upon the death of the participant.

“Board” means the Board of Administration of the Public Employees’ Retirement System.

“Compensation” means the total amount paid to an employee for a plan year as required to be reported on the employee’s Internal Revenue Service form W-2 for income tax withholding purposes. This amount shall include employee contributions picked up by the employer under paragraph (2) of subsection (h) of Section 414 of Title 26 of the United States Code; and any amounts deducted by the employer from the participant’s salary, including deductions for tax-deferred retirement plans or insurance programs; deductions for participation in a tax-sheltered annuity within the meaning of Section 403(b) of Title 26 of the United States Code; deductions for participation in an eligible deferred compensation plan within the meaning of Section 457 of Title 26 of the United States Code; and deductions for participation in a plan that meets the requirements of Section l25 or subsection (k) of Section 401 of Title 26 of the United States Code.

“Disability” means a disability of permanent or extended and uncertain duration, as determined by the board.

“Early retirement age” means the age at which the participant attains age 50 or qualifies for early retirement under Part 3 (commencing with Section 20000).

“Employee contribution” means the amount contributed by the participating employee to his or her account in the plan.

“Employer” means any city, county, city and county, district, school district, community college district, county superintendent of schools, or other public agency, instrumentality, or political subdivision of the state.

“Fund” means the Supplemental Contributions Program Fund.

“Net earnings” means the income earned, or losses incurred, after asset management fees, on the applicable investment fund options offered under the Supplemental Contributions Program, less the costs of administering the plan.

“Participant” means an eligible employee who has contributions credited under the plan.

“Plan” means the Supplemental Contributions Program.

“Plan year” means the 12-month period commencing on any January 1 and ending on the following December 31.

“Retirement” means termination of all employment for the employer and completion of all conditions precedent to receiving a distribution for retirement.

“System” means the Public Employees’ Retirement System.

“Termination” means termination of employment by reason of separation from all service for all employers that participate in the system.

“Valuation date” means the date as of which the assets of the fund are valued.