text:
“Reinstatement” means the change in status with respect to the Defined Benefit Program under this part from a disabled or retired member to an active or inactive member and termination of one of the following:

(a) A service retirement allowance pursuant to Section 24208.

(b) A disability retirement allowance pursuant to Section 24117.

(c) A disability allowance pursuant to Section 24004, 24006, or 24015.

(d) A service retirement allowance or disability retirement allowance pursuant to Section 23404.

history: (History: Amended by Stats. 2000, Ch. 1025, Sec. 13. Effective January 1, 2001.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


kind: section

code: EDC

text: “Replacement benefits program” means the program established pursuant to Chapter 27.5 (commencing with Section 24250) in compliance with the provisions of Section 415(m) of the Internal Revenue Code of 1986 (26 U.S.C. Sec. 415(m)) as applicable to a governmental plan, as defined in Section 414(d) of the Internal Revenue Code of 1986 (26 U.S.C. Sec. 414(d)).

history: (History: Added by Stats. 1999, Ch. 465, Sec. 1. Effective January 1, 2000.)

division: 1. GENERAL EDUCATION CODE PROVISIONS

part: 13. STATE TEACHERS' RETIREMENT SYSTEM

title: 1. GENERAL EDUCATION CODE PROVISIONS

chapter: 2. Definitions

path: 1. GENERAL EDUCATION CODE PROVISIONS > 1. GENERAL EDUCATION CODE PROVISIONS > 13. STATE TEACHERS' RETIREMENT SYSTEM > 2. Definitions


text:
(a) “Retired member activities” means one or more activities identified in subdivision (b), (c), or (d) of Section 22119.5 or subdivision (b), (c), or (d) of Section 26113 within the California public school system and performed by a member retired for service under this part as one of the following:

(1) An employee of an employer.

(2) An employee of a third party, except as specified in subdivision (b).

(3) An independent contractor.

(b) The activities of an employee of a third party shall not be included in the definition of “retired member activities” if all of the following conditions apply:

(1) The employee performs an assignment of 24 months or less.

(2) The third-party employer does not participate in a California public pension system.

(3) The activities performed by the individual are not normally performed by employees of an employer, as defined in Section 22131.

history: (History: Amended by Stats. 2015, Ch. 782, Sec. 7. (AB 963) Effective January 1, 2016.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: “Retirement” means termination of employment subject to coverage by the plan and a change in status from an inactive member, an active member, or a disabled member to a retired member.

history: (History: Amended by Stats. 2000, Ch. 1025, Sec. 14. Effective January 1, 2001.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: “Retirement allowance” means the amount payable to a retired member or an option beneficiary on a monthly basis.

history: (History: Amended by Stats. 1996, Ch. 634, Sec. 40. Effective January 1, 1997.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: “Retirement benefit” means the amount payable under the Defined Benefit Supplement Program, based on the balance of credits in the member’s Defined Benefit Supplement account, to a member who has retired for service under the Defined Benefit Program.

history: (History: Added by Stats. 2000, Ch. 74, Sec. 21. Effective January 1, 2001.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: “Retirement fund” means the Teachers’ Retirement Fund.

history: (History: Repealed and added by Stats. 1994, Ch. 933, Sec. 3. Effective September 28, 1994.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: “Return on investments” means income received or receivable from the system’s investments.

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: “School term” means a minimum period of 35 weeks beginning the first day and ending the last day creditable service is required to be performed by a member employed on a full-time basis, excluding any period that has been excluded pursuant to a publicly available written contractual agreement. The school term shall also be the same for a member who is not employed on a full-time basis who is performing the same duties as a member employed on a full-time basis.

history: (History: Added by Stats. 2016, Ch. 218, Sec. 10. (SB 1352) Effective January 1, 2017.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: “School year” means the period of time beginning on July 1 of one calendar year and ending on June 30 of the following calendar year.

history: (History: Amended by Stats. 2018, Ch. 416, Sec. 7. (SB 1165) Effective January 1, 2019.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) “Service” means work performed for compensation in a position subject to coverage under the Defined Benefit Program, except as otherwise specifically provided in this part, providing the contributions on compensation for that work are not credited to the Defined Benefit Supplement Program.

(b) (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 internet website of the system no later than July 1, 2027.

(2) This section shall become inoperative on the date determined by the board pursuant to paragraph (1), and this section shall be repealed on July 1, 2027.

history: (History: Amended by Stats. 2024, Ch. 690, Sec. 14. (AB 1997) Effective January 1, 2025. Conditionally inoperative as prescribed by its own provisions. Repealed as of July 1, 2027, by its own provisions. See later operative version added by Sec. 15 of Stats. 2024, Ch. 690.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) “Service” means work performed for compensation, except as otherwise specifically provided in this part.

(b) (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 internet website of the system no later than July 1, 2027.

(2) This section shall become operative on the date determined by the board pursuant to paragraph (1).

history: (History: Repealed (in Sec. 14) and added by Stats. 2024, Ch. 690, Sec. 15. (AB 1997) Effective January 1, 2025. Conditionally operative as prescribed by its own provisions.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) “Sick leave days” means the number of days of accumulated and unused leave of absence for illness or injury granted by each employer.

(b) “Basic sick leave day” means the days of paid leave of absence due to illness or injury granted by each employer that are not excess sick leave days.

(c) “Excess sick leave days” means the day or total number of days of paid leave of absence due to illness or injury granted by each employer in excess of 12 days per school year.

(d) For those standards identified in Section 22138.5 that are expressed only in terms of hours, the number of hours shall be divided by six to determine the number of days pursuant to this section.

history: (History: Amended by Stats. 2020, Ch. 275, Sec. 6. (AB 2101) Effective January 1, 2021.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) “Spouse” means a person who was continuously married to the member for the period beginning at least 12 months prior to the death of the member, unless a child is born to the member and the member’s spouse within the 12-month period or unless the spouse is carrying a fetus, conceived with the member.

(b) “Spouse” also means a person who was married to the member for less than 12 months, if the member’s death was either accidental, or due to an illness, and the marriage took place prior to the occurrence of the injury or diagnosis of the illness that resulted in death.

(1) A member’s death is defined as accidental only if the member received bodily injuries through violent, external, or accidental means and died as a direct result of the bodily injuries and independent of all other causes.

(2) This subdivision does not apply if, at the time of the marriage, the member could not have reasonably been expected to live for 12 months.

(c) Except as excluded by Sections 22661 and 23812, a person who is the registered domestic partner of a member, as established pursuant to Section 297 or 299.2 of the Family Code, shall be treated in the same manner as a spouse.

history: (History: Amended by Stats. 2023, Ch. 260, Sec. 10. (SB 345) Effective January 1, 2024.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: “Survivor allowance” means the allowance provided for in Section 23804 as it read under the law in effect on June 30, 1972.

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: “Survivor benefit allowance” means the monthly allowance that a surviving spouse may elect to receive pursuant to Chapter 23 (commencing with Section 23850).

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: “System” means the State Teachers’ Retirement System.

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: “System’s headquarters office” means the office building established as the permanent headquarters facility for the system, pursuant to Section 22375.

history: (History: Added by Stats. 2013, Ch. 558, Sec. 5. (AB 1379) Effective January 1, 2014.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: “Termination benefit” means a benefit equal in amount to the balance of credits in the member’s Defined Benefit Supplement account that is payable to the member in a lump-sum when the member has terminated all employment to perform creditable service subject to coverage by the plan.

history: (History: Added by Stats. 2000, Ch. 74, Sec. 22. Effective January 1, 2001.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) “Unfunded actuarial obligation,” with respect to the Defined Benefit Program, means that portion of the actuarial present value of benefits that is not provided for by future, normal costs or covered by the actuarial value of assets attributable to the Defined Benefit Program, based on assumptions adopted by the board pursuant to Section 22311.5.

(b) “Unfunded actuarial obligation,” with respect to the Defined Benefit Supplement Program, means that portion of the actuarial present value of benefits that is not provided for by future, normal costs or covered by the actuarial value of assets attributable to the Defined Benefit Supplement Program, based on assumptions adopted by the board pursuant to Section 22311.5.

history: (History: Added by Stats. 2000, Ch. 1021, Sec. 12. Effective January 1, 2001.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) The plan and the system are administered by the Teachers’ Retirement Board. On and after January 1, 2004, the members of the board are as follows:

(1) The Superintendent of Public Instruction.

(2) The Controller.

(3) The Treasurer.

(4) The Director of Finance.

(5) Three persons who are either members of the Defined Benefit Program or participants in the Cash Balance Benefit Program, as follows:

(A) One person who, at the time of election, is an active member of the Defined Benefit Program or an active participant of the Cash Balance Benefit Program employed by a school district that provides instruction for prekindergarten, kindergarten, or grades 1 to 12, inclusive, or a county office of education, in a position other than a school administrator that requires a services credential with a specialization in administrative services. This member shall be elected by the active members of the Defined Benefit Program and active participants of the Cash Balance Benefit Program who are employed by a school district that provides instruction for prekindergarten, kindergarten, or grades 1 to 12, inclusive, or county office of education, pursuant to regulations adopted by the board, for a four-year term commencing on January 1, 2004.

(B) One person who, at the time of election, is an active member of the Defined Benefit Program or an active participant of the Cash Balance Benefit Program employed by a school district that provides instruction for prekindergarten, kindergarten, or grades 1 to 12, inclusive, or a county office of education. This member shall be elected by the active members of the Defined Benefit Program and active participants of the Cash Balance Benefit Program who are employed by a school district that provides instruction for prekindergarten, kindergarten, or grades 1 to 12, inclusive, or a county office of education, pursuant to regulations adopted by the board, for a four-year term commencing on January 1, 2004.

(C) One person who, at the time of election, is a community college instructor and an active member of the Defined Benefit Program or an active participant of the Cash Balance Benefit Program employed by a community college district, who shall be elected by the active community college members of the Defined Benefit Program and the active community college participants of the Cash Balance Benefit Program, pursuant to regulations adopted by the board, for a four-year term commencing on January 1, 2004.

(6) Five persons appointed by the Governor for a term of four years, subject to confirmation by the Senate, as follows:

(A) One person who, at the time of appointment, is a member of the governing board of a school district or a community college district.

(B) One person who is either a retired member under this part or a retired participant under Part 14 (commencing with Section 26000).

(C) Three persons representing the public, whose terms shall be staggered by varying the first terms of these members, as follows:

(i) One person to a term expiring December 31, 2005.

(ii) One person to a term expiring December 31, 2006.

(iii) One person to a term expiring December 31, 2007.

(b) A person who is employed to perform creditable service by a community college district and either a school district that provides instruction for prekindergarten, kindergarten, or grades 1 to 12, inclusive, or a county office of education, may only be elected to the position on the board that corresponds to the position in which he or she accrued the most service credit during the prior school year.

(c) The members of the board shall annually elect a chairperson and vice chairperson.

history: (History: Amended by Stats. 2007, Ch. 323, Sec. 2. Effective January 1, 2008.)

title: 1. GENERAL EDUCATION CODE PROVISIONS

chapter: 3. Retirement Board

path: 1. GENERAL EDUCATION CODE PROVISIONS > 1. GENERAL EDUCATION CODE PROVISIONS > 13. STATE TEACHERS' RETIREMENT SYSTEM > 3. Retirement Board


text:
(a) The board shall conduct the elections of members described in Section 22200 pursuant to regulations adopted by the board.

(b) The board shall hold special elections to fill vacancies that occur during the term of the elected members of the board. If, at the time a vacancy occurs, the unexpired term is less than two years, the new member elected to fill the vacancy shall hold office for a period equal to the remainder of the term of the vacated office plus four years.

(c) The regulations adopted by the board pursuant to this section and Section 22200 shall not be subject to Article 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.

(d) The regulations adopted by the board shall provide that the elections be conducted in the most cost-effective manner deemed feasible. The board, where practicable, shall consolidate election mailings with other mailings and shall address any other feasible cost-saving measures.

history: (History: Added by Stats. 2002, Ch. 1049, Sec. 3. Effective January 1, 2003.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) The board shall set policy and shall have the sole power and authority to hear and determine all facts pertaining to application for benefits under the plan or any matters pertaining to administration of the plan and the system.

(b) The board shall meet at least once every calendar quarter at such times as it may determine. The meetings shall be presided over by the chairperson. In the event of the chairperson’s absence from a meeting the vice chairperson shall act as presiding officer and perform all other duties of the chairperson.

history: (History: Amended by Stats. 1998, Ch. 965, Sec. 19. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: A quorum of the board shall consist of the majority of the board members. In determining whether or not a quorum is present, vacant positions on the board shall not be considered. The concurrence of the majority of the board members present shall be necessary to the validity of any action taken by the board.

history: (History: Added by Stats. 1996, Ch. 634, Sec. 44. Effective January 1, 1997.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The chief executive officer of the system shall act as secretary of the board and shall have charge of all board correspondence and shall keep a record of board proceedings.

history: (History: Added by Stats. 1996, Ch. 634, Sec. 45. Effective January 1, 1997.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The board has exclusive control of the administration of the funds. No transfers or disbursements of any amount from the funds shall be made except upon the authorization of the board for the purpose of carrying into effect the provisions of this part and Part 14 (commencing with Section 26000).

history: (History: Amended by Stats. 1998, Ch. 1048, Sec. 6. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The board has exclusive control of the investment of the Teachers’ Retirement Fund. Except as otherwise restricted by the California Constitution and by law, the board may in its discretion invest the assets of the fund through the purchase, holding, or sale thereof of any investment, financial instrument, or financial transaction when the investment, financial instrument, or financial transaction is prudent in the informed opinion of the board.

history: (History: Repealed and added by Stats. 1993, Ch. 893, Sec. 2. Effective January 1, 1994.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) All investment transaction decisions made during a closed session, pursuant to paragraph (16) of subdivision (c) of Section 11126 of the Government Code, shall be by rollcall vote entered into the minutes of that meeting.

(b) The board, within 12 months of the close of an investment transaction or the transfer of system assets for an investment transaction, whichever occurs first, shall disclose and report the investment at a public meeting.

history: (History: Amended by Stats. 2003, Ch. 859, Sec. 4. Effective January 1, 2004.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: Each member of the board may administer oaths and affirmations to witnesses and others transacting the business of the system.

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The board has the authority to negotiate, and enter into agreements with other states of the United States on the subject of the transfer of members’ contributions and regular interest between the retirement systems of California and other states.

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) As often as the board determines necessary, it may audit or cause to be audited the records of any public agency.

(b) The board may excuse any audit finding provided all of the following conditions are met:

(1) The audit finding relates to a period of time prior to July 1, 2002.

(2) The audit finding identifies an issue that is not in compliance with the provisions of this part with respect to creditable service or creditable compensation.

(3) The noncompliance would not have existed if the service and compensation crediting changes that shall become operative on July 1, 2002, as a result of legislation enacted during the second year of the 1999–2000 Regular Session, had been operative during the period of time investigated in the audit.

(4) The audit finding was included in an audit report issued on or after January 1, 2001.

(5) Excusing the audit finding will not have an adverse effect on the integrity of the retirement fund.

(c) The board’s authority pursuant to subdivision (b) shall extend to service and compensation issues identified through activities outside the audit function that address compliance with the provisions of this part.

history: (History: Amended by Stats. 2000, Ch. 1021, Sec. 13. Effective January 1, 2001.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) Before auditing, or causing to be audited, the records of a public agency pursuant to Section 22206, the board shall provide written notice of the intended audit to the affected public agency as well as to the exclusive representative or representatives, if any, of members that may be affected by the audit, and this notice shall apprise the public agency and the exclusive representative or representatives, if any, of the purpose and scope of the intended audit. For purposes of carrying out the provisions of this section and Section 22206.2, the public agency shall be responsible for providing the board with the name and contact information for all applicable exclusive representatives.

(b) An audited public agency shall cooperate in good faith with the board and provide all information requested by the board in a timely manner. The public agency, at the time it provides information to the board, shall also provide all the information to the exclusive representative or representatives, if any, of the members affected by the audit.

(c) An audited public agency and the exclusive representative or representatives, if any, of the members affected by the audit may provide the board with additional information relevant to the audit, and the board shall consider this information in preparing its audit findings.

(d) Prior to issuing its final audit report, the board shall provide to the audited public agency and to the exclusive representative or representatives, if any, of the members affected by the audit, the preliminary audit findings, the statutes being addressed by the audit, and a list of every member then known by the board to be affected by the audit. Within a period to be specified by the board, which shall not be less than 60 days, the recipients may provide the board their written responses to the preliminary audit findings and the board shall consider their responses in preparing its final audit report.

(e) Within a period specified by the board of not less than 60 days, the public agency shall provide the board and the exclusive representative a list of the names of any members affected by the audit not included in the list provided by the board pursuant to subdivision (d).

(f) Except as provided in this section, this section does not confer additional rights upon the exclusive representative, including, but not limited to, due process rights.

history: (History: Added by Stats. 2022, Ch. 754, Sec. 2. (AB 1667) Effective January 1, 2023.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) The board shall provide the final audit report to the public agency audited pursuant to Section 22206 and to the exclusive representative or representatives, if any, of the members affected by the audit, and shall provide the audited public agency with an explanation of its appeal rights pursuant to Section 22206.3.

(b) Following the notification by the public agency of the members affected by the audit pursuant to subdivisions (d) and (e) of Section 22206.1, the board shall provide the final audit report, with an explanation of appeal rights pursuant to Section 22206.4, to each member affected by the audit.

(c) If a member is later known to have been affected by an audit, the board shall provide a copy of the final audit report and an explanation of appeal rights pursuant to Section 22206.4 to that member or former member, or their beneficiaries if the member or former member is deceased.

(d) Except as provided in this section, this section does not confer additional rights upon the exclusive representative, including, but not limited to, due process rights.

history: (History: Added by Stats. 2022, Ch. 754, Sec. 3. (AB 1667) Effective January 1, 2023.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) If the public agency audited pursuant to Section 22206 disagrees with the final audit report, it may request an administrative hearing pursuant to Section 22219. The request shall be made in writing and be mailed or emailed to the address identified in the final audit report within 90 days of the board’s transmission of the final audit report to the public agency as provided in Section 22206.2.

(b) If the audited public agency fails to request an administrative hearing within the time provided in subdivision (a), the right to an administrative hearing shall be deemed waived, and the findings of the final audit report shall be deemed the board’s final determination as to that public agency.

history: (History: Added by Stats. 2022, Ch. 754, Sec. 4. (AB 1667) Effective January 1, 2023.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) If a member affected by an audit disagrees with the final audit report, the member may request an administrative hearing pursuant to Section 22219. The request shall be made in writing and be mailed or emailed to the designated address identified in the final audit report within 90 days of the board’s transmission of the final audit report to the member, as provided in Section 22206.2.

(b) If a member affected by the audit fails to request an administrative hearing within the time provided in subdivision (a), the member’s right to an administrative hearing shall be deemed waived, and the findings of the final audit report shall be deemed the board’s final determination as to that member.

history: (History: Added by Stats. 2022, Ch. 754, Sec. 5. (AB 1667) Effective January 1, 2023.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The system shall make all final employer audit reports available on its internet website. Personal information regarding members shall be excluded to the extent necessary to protect their privacy.

history: (History: Added by Stats. 2022, Ch. 754, Sec. 6. (AB 1667) Effective January 1, 2023.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
The board shall perform any other acts necessary for the administration of the system and the plan in carrying into effect the provisions of this part and Part 14 (commencing with Section 26000), which may include, but shall not be limited to, requesting the following information from a member, participant, or beneficiary:

(a) Financial statements, certified copies of state and federal income tax records, or evidence of financial status.

(b) Employment, legal, or medical documentation.

history: (History: Amended by Stats. 2007, Ch. 323, Sec. 3. Effective January 1, 2008.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The board may appoint a committee of two or more of its members to perform any act within the power of the board itself to perform. The board may also delegate authority to the chief executive officer to perform any such act. Except where the board, in delegating that authority, provides that the committee or the chief executive officer may act finally, all acts of the committee or the chief executive officer shall be reported to the board at its next regular meeting and shall be subject to review, ratification, or reversal by the board.

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The office of chief executive officer shall be filled by appointment by the board and the appointee shall serve at the pleasure of the board.

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) Reversal by the board of any act of the committee or the chief executive officer shall be effective on the date fixed by the board.

(b) Payment of benefits prior to the board’s action of reversal may not be affected by such an action, except for the recovery of the amounts paid, from the beneficiary receiving the amounts, as the board may direct.

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The board shall appoint such employees as are necessary to administer the plan and the system.

history: (History: Amended by Stats. 1998, Ch. 965, Sec. 21. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) Except as otherwise provided in subdivision (d), this section shall apply to the following positions in the system: a chief executive officer, a chief operating officer, a chief financial officer, a system actuary, a general counsel, a chief investment officer, and other investment officers and portfolio managers whose positions are designated managerial pursuant to Section 18801.1 of the Government Code.

(b) Notwithstanding Sections 19825, 19826, 19829, and 19832 of the Government Code, the board shall fix the compensation for the positions specified in subdivision (a). In so doing, the board shall be guided by the principles contained in Sections 19826 and 19829 of the Government Code, consistent with its fiduciary responsibility to its members to recruit and retain highly qualified and effective employees for these positions. The annual percentage increase in salary that may be paid pursuant to this section to a person who served as chief financial officer or as chief operating officer on January 1, 2016, and who does not separate from service in that position prior to the date on which the increase is applied, shall not exceed either of the following:

(1) Ten percent for the 2017–18 fiscal year.

(2) Five percent for any fiscal year subsequent to 2017–18.

(c) When a position specified in subdivision (a) is filled through a general civil service appointment, it shall be filled from an eligible list based on an examination that was held on an open basis, and tenure in those positions shall be subject to the provisions of Article 2 (commencing with Section 19590) of Chapter 7 of Part 2 of Division 5 of Title 2 of the Government Code. In addition to the causes for action specified in that article, the board may take action under the article for causes related to its fiduciary responsibility to its members, including the employee’s failure to meet specified performance objectives.

(d) An individual who held a position designated in subdivision (a), was a member of the board, or was in a career executive assignment position that reported directly to either the chief executive officer or the chief operating officer, shall not, for a period of two years after leaving that position, for compensation, act as agent or attorney for, or otherwise represent, any other person, except the state, by making any formal or informal appearance before or by making any oral or written communication to the board, or any officer or employee thereof, if the appearance or communication is made for the purpose of influencing administrative or legislative action or any action or proceeding involving the issuance, amendment, awarding, or revocation of a permit, license, grant, contract, or sale or purchase of goods or property.

history: (History: Amended by Stats. 2016, Ch. 553, Sec. 1. (AB 736) Effective January 1, 2017.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The board shall regulate the duties of employers, employing agencies, and other public authorities, imposed upon them by this part, and shall require reports from employers, employing agencies, and other public authorities, as it deems advisable in connection with the performance of its duties.

history: (History: Amended by Stats. 2003, Ch. 859, Sec. 5. Effective January 1, 2004.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The board may take any action it deems necessary to ensure the continued right of members or beneficiaries to receive monthly payments.

history: (History: Amended by Stats. 1996, Ch. 634, Sec. 48. Effective January 1, 1997.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The board shall determine the service performed by members to be credited toward qualification for retirement, and shall fix and modify allowances provided under this part.

history: (History: Amended by Stats. 1996, Ch. 634, Sec. 49. Effective January 1, 1997.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) The board shall annually adopt as a plan amendment with respect to the Defined Benefit Program the rate of credited interest to be credited to members’ accumulated retirement contributions for service performed after June 30, 1935, and the accumulated annuity deposit contributions excluding all accumulated contributions while being paid as disability allowances, family allowances, and retirement allowances.

(b) The board shall credit interest to all other accumulated reserves at the actuarially assumed interest rate.

history: (History: Amended by Stats. 1998, Ch. 965, Sec. 22. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) The board shall employ a certified public accountant or public accountant, who is not in public employment, to audit the financial statements of the system. The costs of the audit shall be paid from the income of the retirement fund. The audit shall be made annually and the audit report shall be incorporated into the annual report filed with the Governor and the Legislature pursuant to Section 22324.

(b) These audits shall not be duplicated by the Department of Finance or the State Auditor. The system shall be exempt from a pro rata general administrative charge for auditing.

history: (History: Amended by Stats. 2006, Ch. 654, Sec. 2. Effective January 1, 2007.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The board shall establish and maintain records and accounts following recognized accounting principles and controls.

history: (History: Amended by Stats. 1996, Ch. 634, Sec. 50. Effective January 1, 1997.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) The board may in its discretion hold a hearing for the purpose of determining any question presented to it involving any right, benefit, or obligation of a person under this part.

(b) When a hearing is held, the proceedings shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, relating to administrative adjudication, and the board shall have all of the powers granted in that chapter. However, the provisions of Section 11508 of the Government Code relating to the location of the hearing shall not apply, and the hearing shall be held at the time and place determined by the board.

history: (History: Repealed and added by Stats. 1993, Ch. 893, Sec. 2. Effective January 1, 1994.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: In addition to the authority granted pursuant to Section 11181 of the Government Code, the board may subpoena witnesses and compel their attendance to testify before it.

history: (History: Amended by Stats. 2012, Ch. 864, Sec. 3. (AB 2663) Effective January 1, 2013.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
The board shall adopt, upon the recommendation of the actuary of the system, any mortality and other tables and interest rates necessary to do the following:

(a) Permit valuation of the assets and liabilities of the system.

(b) Make any determination or calculation necessary to carry out this part.

history: (History: Amended by Stats. 1996, Ch. 634, Sec. 52. Effective January 1, 1997.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The board may adjust the amounts of the death payments based on changes in the All Urban California Consumer Price Index, and shall adopt as a plan amendment with respect to the Defined Benefit Program any adjusted amount, provided that the most recent actuarial valuation report indicates that the adjustment would not increase the normal cost.

history: (History: Amended by Stats. 1998, Ch. 965, Sec. 23. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The members of the board who are not active members of the Defined Benefit Program or active participants of the Cash Balance Benefit Program and who are appointed by the Governor pursuant to Section 22200 shall receive one hundred dollars ($100) for every day of actual attendance at meetings of the board or any meeting of any committee of the board of which the person is a member, and that is conducted for the purpose of carrying out the powers and duties of the board, together with their necessary traveling expenses incurred in connection with performance of their official duties.

history: (History: Amended by Stats. 2005, Ch. 351, Sec. 6. Effective January 1, 2006.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: Members of the Defined Benefit Program and participants of the Cash Balance Benefit Program, who are either elected to the board or appointed to the board by the Governor pursuant to Section 22200, or who are appointed by the board to serve on a committee or subcommittee of the board or a panel of the system, shall be granted, by his or her employer, sufficient time away from regular duties, without loss of compensation or other benefits to which the person is entitled by reason of employment, to attend meetings of the board or any of its committees or subcommittees of which the person is a member, or to serve as a member of a panel of the system, and to attend to the duties expected to be performed by the person.

history: (History: Amended by Stats. 2004, Ch. 11, Sec. 2. Effective January 28, 2004.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) The compensation of the members of the Defined Benefit Program and participants of the Cash Balance Benefit Program who are either elected to the board or appointed to the board by the Governor pursuant to Section 22200, or who are appointed by the board to a committee or subcommittee, or to a panel of the system, may not be reduced by his or her employer for any absence from service occasioned by attendance upon the business of the board, pursuant to Section 22224.

(b) Each employer that employs either a member of the Defined Benefit Program or a participant of the Cash Balance Benefit Program elected or appointed pursuant to Section 22224 and that employs a person to replace the member or participant during attendance at meetings of the board, its committees or subcommittees, or when serving as a member of a panel of the system, or when carrying out other duties approved by the board, shall be reimbursed from the retirement fund for the cost incurred by employing a replacement.

history: (History: Amended by Stats. 2004, Ch. 11, Sec. 3. Effective January 28, 2004.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) The board shall conduct a study on providing health insurance benefits, including vision and dental care benefits, for active, disabled, and retired members, beneficiaries, children, and dependent parents. The health insurance may include vision and dental care.

(b) The study shall include, but not be limited to, assessing the lack of access of health insurance benefits for retired teachers and shall evaluate the following:

(1) The demand for health insurance benefits.

(2) The integration of health insurance benefits and Medicare coverage.

(3) The manner in which health insurance benefits would be administered and provided.

(c) There is hereby appropriated from the Teachers’ Retirement Fund to the State Teachers’ Retirement Board the sum of two hundred thousand dollars ($200,000) conduct a study for the purposes identified in this section. If this study results in the implementation of health insurance benefits as described in subdivision (a), the State Teachers’ Retirement Board shall reimburse the sum of two hundred thousand dollars ($200,000) to the Teachers’ Retirement Fund from administrative fees charged to recipients of the health insurance benefits.

history: (History: Added by Stats. 1998, Ch. 968, Sec. 1. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: It is the intent of the Legislature that candidates for board seats described in paragraph (5) of subdivision (a) of Section 22200, including incumbent board members running for reelection, shall file campaign statements with the Secretary of State according to campaign reporting, contribution limits, and conflict of interest provisions of the Political Reform Act, adapted for the unique characteristics of elected member seats on state retirement system boards.

history: (History: Added by Stats. 2004, Ch. 11, Sec. 4. Effective January 28, 2004.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) Commencing March 1, 2023, and annually thereafter, the board shall submit a report to the Legislature on the status of achieving appropriate objectives and initiatives, as defined by the board, regarding participation of emerging or diverse managers responsible for asset management within its portfolio of investments. The report shall be based on contracts that the system enters into on and after January 1, 2022.

(b) The report shall also identify and include both of the following:

(1) The name of each emerging or diverse manager providing investment portfolio or asset management services at the end of the prior fiscal year, including, but not limited to, fund of funds contracts, for all asset classes, as applicable. The board shall also report the year the emerging or diverse manager was first engaged or contracted to provide investment portfolio or asset management services.

(2) The amount managed by each emerging or diverse manager by asset class at the end of the prior fiscal year, as well as the total amount allocated by the system in the applicable asset class during the year and the total amount of the asset class in the system’s investment portfolio.

(c) The board shall define the term “emerging manager” and “diverse manager” for purposes of this section.

(d) The report required by this section shall be submitted in compliance with Section 9795 of the Government Code.

(e) Nothing in this section shall require the board to take action unless the board determines in good faith that the action described in this section is consistent with the fiduciary responsibilities of the board as described in Section 17 of Article XVI of the California Constitution.

(f) This section shall not require the board to disclose information that is excepted from disclosure under Section 7928.710 of the Government Code.

(g) This section shall remain in effect only until January 1, 2028, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2028, deletes or extends that date.

history: (History: Amended by Stats. 2022, Ch. 28, Sec. 32. (SB 1380) Effective January 1, 2023. Repealed as of January 1, 2028, by its own provisions.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
The board and its officers and employees of the system shall discharge their duties with respect to the system and the plan solely in the interest of the members and beneficiaries of the Defined Benefit Program as well as the participants and beneficiaries of the Cash Balance Benefit Program as follows:

(a) For the exclusive purpose of the following:

(1) Providing benefits to members and beneficiaries of the Defined Benefit Program as well as the participants and beneficiaries of the Cash Balance Benefit Program.

(2) Defraying reasonable expenses of administering the plan.

(b) With the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with those matters would use in the conduct of an enterprise of a like character and with like aims.

(c) By diversifying the investments of the plan so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so.

(d) In accordance with the documents and instruments governing the plan and the system insofar as those documents and instruments are consistent with this part and Part 14 (commencing with Section 26000).

history: (History: Amended by Stats. 1998, Ch. 965, Sec. 27. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS

chapter: 4. Fiduciary Duties

path: 1. GENERAL EDUCATION CODE PROVISIONS > 1. GENERAL EDUCATION CODE PROVISIONS > 13. STATE TEACHERS' RETIREMENT SYSTEM > 4. Fiduciary Duties


text:
(a) Except as provided in subdivision (b), the assets of the plan shall never inure to the benefit of an employer and shall be held for the exclusive purposes of providing benefits to members and beneficiaries of the Defined Benefit Program as well as the participants and beneficiaries of the Cash Balance Benefit Program and defraying reasonable expenses of administering the plan and the system.

(b) In the case of a contribution that is made by an employer by a mistake of fact, subdivision (a) shall not prohibit the return of that contribution within one year after the system knows, or should know in the ordinary course of business, that the contribution was made by a mistake of fact.

history: (History: Amended by Stats. 1998, Ch. 965, Sec. 28. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
Except as otherwise provided by law, the board and its officers and employees of the system shall not cause the system to engage in a transaction if they know or should know that the transaction constitutes a direct or indirect:

(a) Sale or exchange, or leasing, of any property from the system to a member or beneficiary of the Defined Benefit Program, as well as a participant or beneficiary of the Cash Balance Benefit Program, for less than adequate consideration, or from a member or beneficiary of the Defined Benefit Program, as well as a participant or beneficiary of the Cash Balance Benefit Program, to the system for more than adequate consideration.

(b) Lending of money or other extension of credit from the system to a member or beneficiary of the Defined Benefit Program, as well as a participant or beneficiary of the Cash Balance Benefit Program, without the receipt of adequate security and a reasonable rate of interest, or from a member or beneficiary of the Defined Benefit Program, as well as a participant or beneficiary of the Cash Balance Benefit Program, with the provision of excessive security or an unreasonably high rate of interest.

(c) Furnishing of goods, services, or facilities from the system to a member or beneficiary of the Defined Benefit Program, as well as a participant or beneficiary of the Cash Balance Benefit Program, for less than adequate consideration, or from a member, or beneficiary of the Defined Benefit Program, as well as a participant or beneficiary of the Cash Balance Benefit Program, to the system for more than adequate consideration.

(d) Transfer to, or use by or for the benefit of, a member or beneficiary of the Defined Benefit Program, as well as a participant or beneficiary of the Cash Balance Benefit Program, of any assets of the plan for less than adequate consideration.

(e) Acquisition, on behalf of the system, of any employer security, real property, or loan.

history: (History: Amended by Stats. 1998, Ch. 965, Sec. 29. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
The board and its officers and employees of the system shall not do any of the following:

(a) Deal with the assets of the plan and the system in their own interest or for their own account.

(b) In their individual or in any other capacity, act in any transaction involving the system on behalf of a party, or represent a party, whose interests are adverse to the interests of the plan or the interests of the members and beneficiaries of the Defined Benefit Program, as well as participants and beneficiaries of the Cash Balance Benefit Program.

(c) Receive any consideration for their personal account from any party conducting business with the system in connection with a transaction involving the assets of the plan.

history: (History: Amended by Stats. 1998, Ch. 965, Sec. 30. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) Any board member or officer who breaches any of the responsibilities, obligations, or duties imposed upon them by Section 22251, 22252, or 22253 shall be personally liable to make restitution to the retirement fund for any losses to it resulting from each breach, and to restore any profits that have been made through use of assets of the fund and shall be subject to any other equitable or remedial relief the court may deem appropriate, including removal from the board.

(b) No board member or officer shall be liable with respect to a breach of fiduciary duty under this part if the breach was committed before the board member or officer became one, or ceased to be one.

history: (History: Amended by Stats. 1996, Ch. 634, Sec. 60. Effective January 1, 1997.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) No board member or officer shall be personally liable for the breach of a fiduciary duty except as set forth in Section 22254 or 22256. This subdivision shall apply only to causes of actions arising on or after January 1, 1990.

(b) Nothing in this section shall be interpreted to lessen the scope of liability of board members or employees of the system for gross negligence or fraud in the investment of the retirement fund assets, nor to lessen the scope of liability of the board or system for breach of fiduciary duty pertaining to the administration of the plan.

history: (History: Amended by Stats. 1996, Ch. 634, Sec. 61. Effective January 1, 1997.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
A board member or officer shall be liable for a breach of fiduciary responsibility of another board member or officer with respect to the system in the following circumstances:

(a) If the board member or officer knowingly participates in, or knowingly undertakes to conceal an act or omission of the other board member or officer knowing that the act or omission is a breach.

(b) If the board member’s or officer’s failure to comply with his or her responsibilities as set forth in Section 22251, 22252, or 22253 has enabled another board member or officer to commit a breach.

(c) If the board member or officer has knowledge of a breach unless the board member or officer makes reasonable efforts under the circumstances to remedy the breach.

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) Notwithstanding Section 22203, the board may contract with or appoint one or more investment managers to manage the assets of the retirement fund. If the board has acted with care, skill, prudence, and diligence in meeting the requirements of Sections 22252 and 22253 in selecting and monitoring the investment managers, then, notwithstanding Sections 22250, 22252, 22253, 22254, and 22256, no board member shall be liable for the acts or omissions of the investment managers or be under any obligation to invest or otherwise manage any assets of the retirement fund that are subject to the management of the investment managers.

(b) Incorporation of the fiduciary duty set forth in Section 22250 into the terms of a contract between the system and an investment manager shall be admissible as evidence that the board has acted with care, skill, prudence, and diligence in the selection of the investment manager.

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: Notwithstanding Section 13340 of the Government Code, there is hereby continuously appropriated, without regard to fiscal years, from the retirement fund to the board, the amount necessary to pay for any insurance obtained pursuant to Section 7511 of the Government Code. These payments shall be made upon warrants drawn by the Controller upon demands made by the board.

history: (History: Added by Stats. 1993, Ch. 893, Sec. 2. Effective January 1, 1994.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) All board members and officers and employees of the system shall execute a fidelity bond, in an amount determined by the board to be prudent, conditioned upon the faithful performance of the duties of the board member or employee.

(b) All board members and officers and all staff of the investment division who are authorized to invest funds shall be covered with fiduciary liability insurance in an amount determined by the board to be prudent.

history: (History: Amended by Stats. 1996, Ch. 634, Sec. 62. Effective January 1, 1997.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: Notwithstanding any other provision of law, the system may provide credit enhancement for bonds, notes, certificates of participation, or other evidences of indebtedness of an employer, provided that any credit enhancement transaction satisfies the requirement of Section 22250 and does not constitute a prohibited transaction for purposes of Section 503 of the United States Internal Revenue Code.

history: (History: Added by Stats. 1998, Ch. 1076, Sec. 4. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: Notwithstanding any other provision of law, the board may make investments related to the planning, development, or acquisition of surplus real property owned by an employer, if the investment satisfies the requirements of Section 22250 and does not constitute a prohibited transaction for purposes of Section 503 of the Internal Revenue Code.

history: (History: Added by Stats. 2002, Ch. 903, Sec. 1. Effective January 1, 2003.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The chief executive officer is the chief administrative officer of the system. The chief executive officer may administer oaths.

history: (History: Repealed and added by Stats. 1993, Ch. 893, Sec. 2. Effective January 1, 1994.)

title: 1. GENERAL EDUCATION CODE PROVISIONS

chapter: 5. Administration

path: 1. GENERAL EDUCATION CODE PROVISIONS > 1. GENERAL EDUCATION CODE PROVISIONS > 13. STATE TEACHERS' RETIREMENT SYSTEM > 5. Administration


text: The chief executive officer has the authority and responsibility for the administration of the system and the plan pursuant to the policies and rules adopted by the board. The chief executive officer may delegate to his or her subordinates any act or duty unless the board by motion or resolution recorded in its minutes has required the chief executive officer to act personally.

history: (History: Amended by Stats. 1996, Ch. 634, Sec. 63. Effective January 1, 1997.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) The board shall establish an ombudsperson position to serve as an advocate for the members of the Defined Benefit Program and participants of the Cash Balance Benefit Program. The duties of the ombudsperson position shall include reviewing and making recommendations to the chief executive officer regarding complaints by school employees, members, employee organizations, the Legislature, or the public regarding actions of the employees of the system.

(b) It is the intent of the Legislature that the salary of the position of ombudsperson be offset, as much as possible, through savings realized from a reduction in interest payments on delinquent benefits to members, and through a more efficient and improved public relations program.

history: (History: Amended by Stats. 2021, Ch. 186, Sec. 2. (SB 634) Effective January 1, 2022.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The board may contract with a qualified third-party administrator for custodial, record keeping, or other administrative services necessary to carry into effect the provisions of Chapter 38 (commencing with Section 25000) of this part or Part 14.

history: (History: Added by renumbering Section 22302 (as added by Stats. 2000, Ch. 74) by Stats. 2000, Ch. 1021, Sec. 13.5. Effective January 1, 2001.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) Due to an increase in the demand for retirement counseling services, the system, notwithstanding any other provision of law, may contract with a county superintendent or other employer to provide retirement counseling. Retired public employees may be employed on a part-time basis for that purpose, unless and until the study required by subdivision (b) of Section 7 of Chapter 1532 of the Statutes of 1985 recommends against the employment of retired public employees for these purposes. This authorization is subject to the availability of funds appropriated for that purpose in the annual Budget Act.

(b) The board may, by resolution, designate one or more official representatives who provide retirement counseling pursuant to subdivision (a), or as an employee of the system, to receive documents submitted pursuant to this part, Part 13.5 (commencing with Section 25900), or Part 14 (commencing with Section 26000). Notwithstanding any other provision of law, any document received by a designated system representative during regular counseling office business hours or in the course of performing counseling services pursuant to this subdivision shall be deemed to have been received by the system’s headquarters office on the date received by the officially designated system representative.

history: (History: Amended by Stats. 2013, Ch. 558, Sec. 6. (AB 1379) Effective January 1, 2014.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: Notwithstanding any other provision of law, the board shall offer a midcareer retirement information program for the benefit of all members to enhance awareness of the features and benefits of the Defined Benefit Program, services of the system, federal Social Security Act programs and benefits as they apply to members, and personal planning responsibilities. This information shall be provided to assist members in understanding the importance of financial, legal, estate, and personal planning, and how choices and options offered by the system may affect retirement.

history: (History: Amended by Stats. 2017, Ch. 298, Sec. 1. (AB 1325) Effective January 1, 2018.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) The costs of administration of the plan shall be paid from the retirement fund and those costs may not exceed the amount made available by law during any fiscal period.

(b) The administrative costs of the plan shall be divided proportionately in accordance with the assets of the Defined Benefit Program, the Defined Benefit Supplement Program, and the Cash Balance Benefit Program.

history: (History: Amended by Stats. 2000, Ch. 74, Sec. 24. Effective January 1, 2001.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: Any rules and regulations adopted by the board for the purpose of the administration of this part and Part 14 (commencing with Section 26000), and not inconsistent with this part and Part 14 (commencing with Section 26000), have the force and effect of law.

history: (History: Amended by Stats. 1998, Ch. 965, Sec. 33. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) Information filed with the system by a member, participant, or beneficiary of the plan is confidential and shall be used by the system for the sole purpose of carrying into effect the provisions of this part, Part 13.5 (commencing with Section 25900), and Part 14 (commencing with Section 26000). No official or employee of the system who has access to the individual records of a member, participant, or beneficiary shall divulge any confidential information concerning those records to any person except in the following instances:

(1) To the member, participant, or beneficiary to whom the information relates.

(2) To the authorized representative of the member, participant, or beneficiary.

(3) To the governing board of the member’s or participant’s current or former employer.

(4) To any department, agency, or political subdivision of this state.

(5) To other individuals or entities as necessary to validate personal information of members, participants, and beneficiaries.

(6) Pursuant to subpoena.

(7) To an agent or a physician authorized by the board in the performance of duties pursuant to Section 24003, 24012, 24103, or 24111.

(8) To a physician or psychologist authorized by the member to receive medical information, if the system determines that the information may be detrimental to the member, as provided under Section 1798.40 of the Civil Code.

(b) Information filed with the system in a beneficiary designation form may be released after the death of the member or participant to those persons who may provide information necessary for the distribution of benefits.

(c) The information is not open to inspection by anyone except the board and its officers and employees of the system, and any person authorized by the Legislature to make inspections.

history: (History: Amended by Stats. 2017, Ch. 298, Sec. 2. (AB 1325) Effective January 1, 2018.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) The board may authorize the transfer and disbursement of funds from the retirement fund for the purpose of carrying into effect this part and Part 14 (commencing with Section 26000). That action shall require signatures of either the board chairperson and vice chairperson, or the signatures of the board chairperson or vice chairperson and the chief executive officer or any employee of the system designated by the chief executive officer.

(b) Notwithstanding Section 13340 of the Government Code, the board may disburse funds for benefits payable under this part and Part 14 (commencing with Section 26000), for the payment of refunds and for investment transactions. Funds for these purposes shall not require appropriation by the annual Budget Act.

(c) Funds for the payment of administrative expenses are not continuously appropriated, and funds for that purpose shall be appropriated by the annual Budget Act.

history: (History: Amended by Stats. 2000, Ch. 1025, Sec. 15. Effective January 1, 2001.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) There is in the State Treasury a trust fund to be known as the Teachers’ Retirement Program Development Fund. There shall be deposited directly in that fund, and not transferred from the Teachers’ Retirement Fund, that portion of employer contributions determined by the board as necessary to fund the expenditures authorized by this section.

(b) Notwithstanding Section 13340 of the Government Code, moneys in the Teachers’ Retirement Program Development Fund are continuously appropriated without regard to fiscal years to pay any costs determined by the board to be related to the development of programs authorized by statute that the board determines directly or indirectly enhance the financial security of members, participants, or beneficiaries of the State Teachers’ Retirement Plan, if the board determines, by resolution, the proposed program is to have a reasonable expectation to generate sufficient revenue to carry out the ongoing responsibilities of the programs under development and permit the subsequent deposit of funds, pursuant to subdivision (e), into the Teachers’ Retirement Fund.

(c) The board may authorize the transfer and disbursement of funds from the Teachers’ Retirement Program Development Fund for the purpose of carrying into effect this section upon the signature of either or both of its chairperson and vice chairperson or the chief executive officer or any employee of the system designated by the chief executive officer.

(d) Disbursements of moneys from the Teachers’ Retirement Program Development Fund of whatever nature shall be made upon claims duly audited in the manner prescribed for the disbursement of other public funds.

(e) An amount equal to employer contributions deposited in the Teachers’ Retirement Program Development Fund pursuant to subdivision (a), together with interest calculated based on the actuarially assumed rate of investment return for the Defined Benefit Program for the period beginning with the deposit of employer contributions into the Teachers’ Retirement Program Development Fund and ending with the transfer to the Teachers’ Retirement Fund, on terms and conditions established by the board pursuant to subdivision (b), shall be deposited in the Teachers’ Retirement Fund, from funds generated from the programs receiving development funds pursuant to this section.

history: (History: Added by Stats. 2006, Ch. 780, Sec. 1. Effective January 1, 2007.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The board may, by resolution, direct the Controller to transfer all or a portion of the assets in the Teachers’ Retirement Program Development Fund, established pursuant to Section 22307.5, into the designated fund or account that is authorized to expend funds for the same program for which the assets in the Teachers’ Retirement Program Development Fund were credited, if the board finds that the transfer of the assets of the Teachers’ Retirement Program Development Fund into the designated fund or account would facilitate the efficient administration of the program for which the fund or account was established.

history: (History: Added by Stats. 2010, Ch. 207, Sec. 5. (AB 2260) Effective January 1, 2011.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) Subject to subdivision (d), the board may, in its discretion and upon any terms it deems just, correct the errors or omissions of any member or beneficiary of the Defined Benefit Program, and of any participant or beneficiary of the Cash Balance Benefit Program, if all of the following facts exist:

(1) The error or omission was the result of mistake, inadvertence, surprise, or excusable neglect, as each of those terms is used in Section 473 of the Code of Civil Procedure.

(2) The correction will not provide the party seeking correction with a status, right, or obligation not otherwise available under this part.

(b) Failure by a member, participant or beneficiary to make the inquiry that would be made by a reasonable person in like or similar circumstances does not constitute an “error or omission” correctable under this section.

(c) Subject to subdivision (d), the board may correct all actions taken as a result of errors or omissions of the employer or this system.

(d) The duty and power of the board to correct errors and omissions, as provided in this section, shall terminate upon the expiration of obligations of the board, system, and plan to the party seeking correction of the error or omission, as those obligations are defined by Section 22008.

(e) Corrections of errors or omissions pursuant to this section shall be such that the status, rights, and obligations of all parties described in subdivisions (a), (b), and (c) are adjusted to be the same that they would have been if the act that was taken or would have been taken, but for the error or omission, was taken at the proper time. However, notwithstanding any of the other provisions of this section, corrections made pursuant to this section shall adjust the status, rights, and obligations of all parties described in subdivisions (a), (b), and (c) as of the time that the correction actually takes place if the board finds any of the following:

(1) That the correction cannot be performed in a retroactive manner.

(2) That even if the correction can be performed in a retroactive manner, the status, rights, and obligations of all of the parties described in subdivisions (a), (b), and (c) cannot be adjusted to be the same as they would have been if the error or omission had not occurred.

history: (History: Amended by Stats. 1998, Ch. 965, Sec. 35. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) Except as provided in subdivision (c), the system shall make available to each active and inactive member, at least annually after the close of the school year, a statement of the member’s individual Defined Benefit Program and Defined Benefit Supplement accounts. The system shall mail a copy of the member’s statement, provided the employer or member has informed the system of the member’s current mailing address and the member has not requested to receive that annual statement electronically, in lieu of mailing.

(b) The system shall periodically make a good faith effort to locate inactive members to provide these members with information concerning any benefit for which they may be eligible.

(c) The mode of issuance described in subdivision (a) is subject to Section 22337.

history: (History: Amended by Stats. 2013, Ch. 459, Sec. 1. (AB 989) Effective January 1, 2014.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) If a benefit or refund cannot be paid because, after a good faith effort, the member or beneficiary cannot be located, the amount payable shall be returned to the retirement fund until the time the party entitled to payment is located.

(b) Interest shall continue to accrue on the accumulated contributions pursuant to this part.

history: (History: Amended by Stats. 1996, Ch. 634, Sec. 73. Effective January 1, 1997.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The board shall maintain all data necessary to perform an actuarial investigation of the demographic and economic experience of the plan and for the actuarial valuation of the assets and liabilities of the plan.

history: (History: Repealed and added by Stats. 2000, Ch. 74, Sec. 27. Effective January 1, 2001.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
The board shall acquire the services of an actuary to do all of the following:

(a) Make recommendations to the board for the adoption of actuarial assumptions that, in the aggregate, are reasonably related to the past experience of the plan and reflect the actuary’s informed estimate of the future experience.

(b) Make an actuarial investigation of the demographic and economic experience, including the mortality, service, and other experience, of the plan with respect to members and beneficiaries of the Defined Benefit Programs; members, beneficiaries, and annuity beneficiaries of the Defined Benefit Supplement Program; and participants and beneficiaries of the Cash Balance Benefit Program.

(c) Make an annual actuarial review of the goals regarding the sufficiency of the Gain and Loss Reserves with respect to the Defined Benefit Supplement Program and the Cash Balance Benefit Program and recommend to the board the goal for maintaining sufficient Gain and Loss Reserves for the Defined Benefit Supplement Program and the Cash Balance Benefit Program.

(d) Recommend to the board the amount, if any, to be transferred to the separate Gain and Loss Reserves from the investment earnings of the plan with respect to the Defined Benefit Supplement Program and the Cash Balance Benefit Program.

(e) At least once every six years with respect to the Defined Benefit Program and annually with respect to the Defined Benefit Supplement Program and the Cash Balance Benefit Program, using actuarial assumptions adopted by the board, perform an actuarial valuation of the plan that identifies the assets and liabilities of the plan, and report the findings to the board. The report of the actuary on the results of the actuarial valuation shall identify and include the components of normal cost and adequate information to determine the effects of changes in actuarial assumptions. Copies of the report on the actuarial valuation shall be transmitted to the Governor and to the Legislature.

(f) Recommend to the board all rates and factors necessary to administer the plan, including, but not limited to, mortality tables, annuity factors, interest rates, and additional earnings credits.

(g) Recommend to the board a strategy for amortizing any unfunded actuarial obligation.

(h) As requested by the board, perform any other actuarial services that may be required for administration of the plan.

history: (History: Added by Stats. 2000, Ch. 74, Sec. 28. Effective January 1, 2001. See similar section added by Stats. 2000, Ch. 1021.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
The board shall acquire the services of an actuary to do all of the following:

(a) Make recommendations to the board for the adoption of actuarial assumptions that, in the aggregate, are reasonably related to the past experience of the plan and reflect the actuary’s informed estimate of the future experience.

(b) Make an actuarial investigation of the demographic and economic experience, including the mortality, service, and other experience, of the plan with respect to members and beneficiaries of the Defined Benefit Program; members, beneficiaries, and annuity beneficiaries of the Defined Benefit Supplement Program; and participants and beneficiaries of the Cash Balance Benefit Program.

(c) Make an annual actuarial review of the goals regarding the sufficiency of the Gain and Loss Reserves with respect to the Defined Benefit Supplement Program and the Cash Balance Benefit Program and make recommendations to the board for maintaining a sufficient Gain and Loss Reserves for the Defined Benefit Supplement Program and the Cash Balance Benefit Program.

(d) Recommend to the board the amount, if any, to be transferred to the separate Gain and Loss Reserves from the investment earnings of the plan with respect to the Defined Benefit Supplement Program and the Cash Balance Benefit Program.

(e) At least once every six years with respect to the Defined Benefit Program and annually with respect to the Defined Benefit Supplement Program and the Cash Balance Benefit Program, using actuarial assumptions adopted by the board, perform an actuarial valuation of each program that identifies the assets and liabilities, and report the findings to the board. The report of the actuary on the results of each actuarial valuation shall identify and include the components of normal cost, if applicable, and adequate information to determine the effects of changes in actuarial assumptions. Copies of the report on each actuarial valuation shall be transmitted to the Governor and the Legislature.

(f) Recommend to the board all rates and factors necessary to administer the plan, including, but not limited to, mortality tables, annuity factors, interest rates, and additional earnings credits.

(g) Recommend to the board a strategy for amortizing any unfunded actuarial obligation.

(h) As requested by the board, perform any other actuarial services that may be required for administration of the plan.

history: (History: Added by Stats. 2000, Ch. 1021, Sec. 14. Effective January 1, 2001.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: Upon the basis of the actuarial investigation and actuarial valuation pursuant to Section 22311.5, or any part thereof, the board shall adopt by plan amendment actuarial assumptions, rates, factors, and tables as the board determines are necessary for administration of the plan and its programs.

history: (History: Added by Stats. 2000, Ch. 74, Sec. 29. Effective January 1, 2001.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) The board shall report to the Legislature on or before July 1, 2019, and every five years thereafter, on the fiscal health of the Defined Benefit Program and the unfunded actuarial obligation with respect to service credited to members of that program before July 1, 2014. The first report shall include the unfunded actuarial obligation and funded ratio as of the date of enactment of this section and compare that with the unfunded actuarial obligation and funded ratio as of June 30, 2018, and the projected unfunded actuarial obligation and funded ratio as of June 30, 2046, based on contributions, and economic and demographic assumptions identified in the June 30, 2018, actuarial valuation. The report shall also identify adjustments required in contribution rates in order to eliminate by June 30, 2046, the unfunded actuarial obligation of the Defined Benefit Program with respect to service credited to members of that program before July 1, 2014. Subsequent reports shall include the unfunded actuarial obligation and the funded ratio of the Defined Benefit Program based on the actuarial valuation of the preceding year, and shall identify adjustments required in contribution rates in order to eliminate by June 30, 2046, the unfunded actuarial obligation of the Defined Benefit Program with respect to service credited to members of that program before July 1, 2014. These reports shall be provided consistent with the requirements of Section 9795 of the Government Code.

(b) This section shall become inoperative on July 1, 2046, and as of January 1, 2047, is repealed.

history: (History: Added by Stats. 2014, Ch. 47, Sec. 4. (AB 1469) Effective June 24, 2014. Section inoperative July 1, 2046. Repealed as of January 1, 2047, by its own provisions. Adding action may become inoperative under conditions prescribed by Stats. 2014, Ch. 47, Sec. 13, subd. (b).)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) No adjustment shall be included in new rates of contribution adopted by the board on the basis of an investigation, valuation, and determination or because of amendment to the Teachers’ Retirement Law with respect to the Defined Benefit Program, for time prior to the effective date of the adoption or amendment, as the case may be.

(b) No action of the board, other than correction of errors in calculating the allowance or annuity at the time of retirement, disability or death of a member shall change the allowance or annuity payable to a retired member or beneficiary prior to the date the action is taken.

history: (History: Amended by Stats. 1998, Ch. 965, Sec. 36. Effective January 1, 1999.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The system shall inform a member, upon retirement, that future tax liabilities may occur as the result of the pending retirement allowance.

history: (History: Added by Stats. 1993, Ch. 893, Sec. 2. Effective January 1, 1994.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) The amount of compensation that is taken into account in computing benefits payable under this part to any person who first becomes a member of the Defined Benefit Program on or after July 1, 1996, shall not exceed the annual compensation limitations prescribed by Section 401(a)(17) of Title 26 of the United States Code upon public retirement systems, as that section may be amended from time to time and as that limit may be adjusted by the Commissioner of Internal Revenue for increases in cost of living. The determination of compensation for each 12-month period shall be subject to the annual compensation limit in effect for the calendar year in which the 12-month period begins. In a determination of average annual compensation over more than one 12-month period, the amount of compensation taken into account for each 12-month period, shall be subject to the annual compensation limit applicable to that period.

(b) Notwithstanding any other provision of this part, no member contribution shall be paid upon any compensation in excess of the annual compensation limitations prescribed by Section 401(a)(17) of Title 26 of the United States Code.

(c) (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 internet website of the system no later than July 1, 2027.

(2) This section shall become inoperative on the date determined by the board pursuant to paragraph (1), and this section shall be repealed on July 1, 2027.

history: (History: Amended by Stats. 2024, Ch. 690, Sec. 16. (AB 1997) Effective January 1, 2025. Conditionally inoperative as prescribed by its own provisions. Repealed as of July 1, 2027, by its own provisions. See later operative version added by Sec. 17 of Stats. 2024, Ch. 690.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) The amount of compensation that is taken into account in computing benefits payable under this part shall not exceed the following limitations:

(1) For any person who first becomes a member of the Defined Benefit Program on or after July 1, 1996, the annual compensation limitations prescribed by Section 401(a)(17) of Title 26 of the United States Code upon public retirement systems, as that section may be amended from time to time and as that limit may be adjusted by the Commissioner of Internal Revenue for increases in cost of living. The determination of compensation for each 12-month period shall be subject to the annual compensation limit in effect for the calendar year in which the 12-month period begins. In a determination of average annual compensation over more than one 12-month period, the amount of compensation taken into account for each 12-month period, shall be subject to the annual compensation limit applicable to that period.

(2) For a member subject to the California Public Employees’ Pension Reform Act of 2013:

(A) (i) One hundred twenty percent of the “contribution and benefit base,” as determined under Section 430(b) of the Social Security Act (42 U.S.C. Sec. 430(b)), on January 1, 2013, for a member whose service is not included in the federal system.

(ii) One hundred percent of the “contribution and benefit base,” as determined under Section 430(b) of the Social Security Act (42 U.S.C. Sec. 430(b)), on January 1, 2013, for a member whose service is included in the federal system pursuant to any changes in state or federal law enacted on or after January 1, 2013.

(B) The system shall adjust the limit based on the annual changes to the Consumer Price Index for All Urban Consumers: U.S. City Average, calculated by dividing the Consumer Price Index for All Urban Consumers: U.S. City Average for the month of February in the fiscal year preceding the adjustment by the Consumer Price Index for All Urban Consumers: U.S. City Average for the month of February of the previous year rounded to the nearest thousandth. Notwithstanding paragraph (1) of subdivision (d) of Section 7522.10 of the Government Code, the adjustment shall be effective annually on July 1, beginning July 1, 2014.

(C) The Legislature reserves the right to modify the requirements of this subdivision with regard to all members subject to this subdivision, except that the Legislature shall not modify these provisions in a manner that would result in a decrease in benefits accrued before the operative date of the modification.

(b) Notwithstanding any other provision of this part, no member contribution shall be paid upon any compensation in excess of the annual compensation limitations prescribed by this section.

(c) (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 internet website of the system no later than July 1, 2027.

(2) This section shall become operative on the date determined by the board pursuant to paragraph (1).

history: (History: Repealed (in Sec. 16) and added by Stats. 2024, Ch. 690, Sec. 17. (AB 1997) Effective January 1, 2025. Conditionally operative as prescribed by its own provisions.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) The initial payment to a disabled member or member retired for disability shall be paid within 45 days following the date the disability is approved, the effective date of the disability retirement or disability allowance, or receipt of all necessary information, whichever occurs last. Monthly payments shall continue thereafter. Initial payments may be based on a good faith estimated amount pending receipt by the system of all necessary employment, dependent, and other public benefit information.

(b) The allowance payable to a disabled member or member retired for disability shall be finalized and a retroactive payment, if one is due, shall be issued within 45 days of receipt by the system of all necessary information.

history: (History: Amended by Stats. 1996, Ch. 634, Sec. 79. Effective January 1, 1997.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) The initial payment to a member retired for service shall be issued within 45 days of either the effective date of retirement or receipt by the system of a completed application for retirement, whichever is later. The initial payment to an option beneficiary shall be issued within 45 days following receipt by the system of a completed application for death benefits and proof of death of the member. Monthly payments shall continue thereafter. Payments may be based on a good faith estimate pending receipt by the system of all necessary employment information.

(b) The allowance payable to a member retired for service or option beneficiary shall be finalized and a retroactive payment, if one is due, shall be issued within 45 days of receipt by the system of all necessary information.

history: (History: Amended by Stats. 1996, Ch. 634, Sec. 80. Effective January 1, 1997.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The death benefits provided pursuant to Chapter 22 (commencing with Section 23800), Chapter 23 (commencing with Section 23850), and Chapter 24 (commencing with Section 23880) shall be paid to the beneficiary or estate within 45 days of receipt by the system of all necessary information.

history: (History: Repealed and added by Stats. 1993, Ch. 893, Sec. 2. Effective January 1, 1994.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The system shall pay interest for delays in excess of the allowable days specified in Sections 22318 to 22320, inclusive. The interest rate for late payments shall be the regular interest rate. Interest payments shall be deemed to be interest earned in the calendar year in which paid. All interest payments under this section shall be paid in addition to any credited interest that is paid.

history: (History: Amended by Stats. 1996, Ch. 634, first Sec. 81. Effective January 1, 1997.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The system shall report monthly to the board on all late payments.

history: (History: Amended by Stats. 1996, Ch. 634, second Sec. 81 [Sec. 81.5]. Effective January 1, 1997.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: The system shall report monthly to the board concerning outstanding death benefits payable that have not been paid within six months of the notification of the death of the member.

history: (History: Amended by Stats. 1996, Ch. 634, Sec. 82. Effective January 1, 1997.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
The board shall file an annual report with the Governor and the Legislature by March 1 of each year on all phases of its work that could affect the need for public contributions for costs of administration of the system, including the subjects of benefits, programs, practices, procedures, comments on trends and developments in the field of retirement, and the following information on the assets of the plan:

(a) A copy of the annual audit performed pursuant to Section 22217.

(b) A certification letter from the system’s consulting actuary concerning the findings of the most recent actuarial valuation, accompanied by analysis of funding progress and summaries of the actuarial cost method, assumptions, and demographic data, including actual payroll subject to the system.

(c) A review of the system’s asset mix strategy, a market review or the economic and financial environment in which investments were made, and a summary of the system’s general investment strategy.

(d) A description of the investments of the system at cost and market value, and a summary of major changes that occurred since the previous year.

(e) The annual return on investments and the following information regarding the rate of return of the system by asset type:

(1) Time-weighted market value rate of return on a five-year, three-year, and one-year basis.

(2) Time-weighted book value rate of return on a five-year, three-year, and one-year basis.

(3) Portfolio return comparisons that compare investment returns with universes and indexes.

(f) A report on the use of outside investment advisers and managers.

(g) A report on the nature and cost of investment contract services used, including either the start date of an existing contract or, if there are multiple existing contracts with the same contractor or vendor, the earliest start date.

(h) A report on shareholder voting.

(i) A report for the prior fiscal year on the following information:

(1) The percentage of purchasing power protection and any changes adopted by the board.

(2) The extent to which inflation has eroded the purchasing power of benefits provided under the Defined Benefit Program.

(3) The amount of supplementary increases in retirement allowances required to preserve the purchasing power of benefits provided by the Defined Benefit Program.

history: (History: Amended by Stats. 2012, Ch. 864, Sec. 4. (AB 2663) Effective January 1, 2013.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) The amendments to this part by the act adding this section during the second year of the 2023–24 Regular Session are consistent with subdivision (e) of Section 22115. The board shall adopt regulations to the extent required in order to continue to administer the statutes accordingly.

(b) (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 internet website of the system no later than July 1, 2027.

(2) This section shall become operative on the date determined by the board pursuant to paragraph (1).

history: (History: Added by Stats. 2024, Ch. 690, Sec. 18. (AB 1997) Effective January 1, 2025. Conditionally operative as prescribed by its own provisions.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) The system, at least annually, shall identify and provide resources on its website that interpret and clarify the applicability of creditable compensation and creditable service laws in this part and regulations promulgated pursuant to this part. Resources identified by the system shall be relied upon and used for purposes of subdivision (c) until and unless such a resource is revoked or superseded by the system.

(b) New or different interpretations of law, including those that would modify the application of prior interpretations, that differ from the resources identified by the system pursuant to subdivision (a) shall not take effect until after notice is issued to employers and exclusive representatives and shall not be applied retroactively to compensation reported prior to that notice, unless a retroactive interpretation is the result of a state or federal law, an executive order of the Governor, or a final court order.

(c) For purposes of audits or any other actions by the system, employers are responsible for complying with the laws and regulations in effect at the time the compensation is reported, except when such laws or regulations are superseded by state or federal law, an executive order of the Governor, or final court order. If the system later determines that compensation reported in accordance with the system’s resources identified pursuant to this section has been reported in error, as a result of an error in those resources, the resulting overpayment to the individual member, former member, or beneficiary shall be deemed an error by the system and shall be recovered pursuant to paragraph (4) of subdivision (a) of Section 24616.2.

history: (History: Amended by Stats. 2023, Ch. 215, Sec. 1. (SB 432) Effective January 1, 2024.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) For the purposes of this section:

(1) “Advisory letter” means a written determination issued to an employer or an exclusive representative in response to the employer’s or exclusive representative’s submission relating to specific compensation language that is included, or is proposed to be included, in a publicly available written contractual agreement in order for the system to provide formal written guidance for the proper reporting of such compensation consistent with the laws governing creditable compensation and the administrative regulations of the system.

(2) “Material facts” means facts that would have changed the determination made in an advisory letter.

(b) An employer or an exclusive representative may submit to the system a request for an advisory letter.

(c) (1) A submission to the system under subdivision (b) shall be in writing on a form provided by the system and shall include the specific compensation language, a description of the facts related to the compensation language, and the basis of the requesting party’s inquiry, including, but not limited to, specific questions about the reporting of the compensation, and any other supporting documents or requirements the system deems necessary to complete its review.

(2) A submission to the system may be denied if it involves an issue that is in litigation with the system and the employer or a member to whom the advisory letter would expressly relate.

(3) A submission to the system may be withdrawn by the employer or exclusive representative at any time before an advisory letter is provided.

(d) (1) The system shall provide an advisory letter regarding the submission to the employer or exclusive representative within 30 days of the receipt of all information requested by the system, unless an extended period of time is necessary for good cause.

(2) An advisory letter may be superseded by state or federal law, an executive order of the Governor, final court order, or a resource identified pursuant to Section 22325.

(e) If the system later determines that specific compensation reported in accordance with the system’s advisory letter provided pursuant to this section has been reported in error by the employer identified in the advisory letter as a result of an error in the advisory letter, the resulting overpayment to the individual member, former member, or beneficiary shall be deemed an error by the system and shall be recovered pursuant to paragraph (4) of subdivision (a) of Section 24616.2.

(f) Only the employer identified in the advisory letter or a member to whom an advisory letter expressly relates may use and rely upon the advisory letter, or offer the advisory letter as evidence of an error by the system. The use and reliance upon, or the offering in evidence of, an advisory letter shall be contingent on a system determination that all material facts related to the specific compensation were disclosed in the submission and the employer reported that specific compensation in reliance on the advisory letter.

(g) This section shall become operative on July 1, 2023.

history: (History: Amended by Stats. 2023, Ch. 215, Sec. 2. (SB 432) Effective January 1, 2024.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: Notwithstanding any other provision of law, the Employment Development Department shall disclose to the system information in its possession relating to the earnings of any person who is a member of the Defined Benefit Program, if the member is receiving a disability benefit or performing retired member activities. The earnings information shall be released to the system only upon written request from the system specifying that the person is a member of the Defined Benefit Program and is receiving a disability benefit or performing retired member activities. The system shall use the information obtained pursuant to this section only for purposes of Chapter 25 (commencing with Section 24001), Chapter 26 (commencing with the Section 24100), Section 24214, or Section 24214.5. The request may be made by the chief executive officer of the system or by an employee of the system so authorized and identified by name and title by the chief executive officer in writing. The system shall notify members receiving a disability benefit or performing retired member activities that earnings information shall be obtained from the Employment Development Department upon request by the system. The system shall not release any earnings information received from the Employment Development Department to any person, agency, or other entity. The system shall reimburse the Employment Development Department for all reasonable administrative expenses incurred pursuant to this section.

history: (History: Amended by Stats. 2013, Ch. 559, Sec. 12. (AB 1381) Effective January 1, 2014.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) Upon termination of a retirement allowance or disability allowance that began to accrue on or after July 1, 1972, the person’s individual account shall be credited with the amount of his or her accumulated retirement contributions as they were on the effective date of retirement or disability, less the sum of all payments made under paragraph (1) of subdivision (a) of Section 24202, and under Sections 24006 and 24007. The reduction shall not be greater than the total of the accumulated retirement contributions.

(b) Upon the termination of a retirement allowance, the person’s accumulated annuity deposit contribution accounts shall be credited with the amounts of the contributions as they were on the date the annuity became payable because of the retirement less the sum of all payments made under paragraph (2) of subdivision (a) of Section 24202.

history: (History: Amended by Stats. 1996, Ch. 634, Sec. 85. Effective January 1, 1997.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text: In order to provide equitable telephone assistance to all members and beneficiaries, regardless of their location in California, the system shall install a toll-free, “800” prefix, line.

history: (History: Amended by Stats. 1996, Ch. 634, Sec. 86. Effective January 1, 1997.)

title: 1. GENERAL EDUCATION CODE PROVISIONS


text:
(a) The board shall provide the Legislature with an analysis of the asset and liability implications of each bill that would affect the investment strategy of the system, the funding of the plan, or the benefit structure of the plan. The analysis shall include an explanation of the methodology employed and the assumptions used in its preparation. Neither fiscal committee of the Legislature shall hear any such bill until the analysis has been provided to the committee.

(b) There is hereby continuously appropriated, without regard to fiscal years, from the retirement fund, an amount sufficient to pay all costs arising from subdivision (a), but not to exceed fifty thousand dollars ($50,000) in any one fiscal year.

history: (History: Amended by Stats. 1996, Ch. 634, Sec. 87. Effective January 1, 1997.)

title: 1. GENERAL EDUCATION CODE PROVISIONS