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Chapter 5. Administration of California Education Code >> Division 1. >> Title 1. >> Part 13. >> Chapter 5.
The chief executive officer is the chief administrative
officer of the system. The chief executive officer may administer
oaths.
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.
(a) The board shall establish an ombudsman 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
ombudsman 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 ombudsman 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.
(b) It is the intent of the Legislature that the salary of the position of ombudsman 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.
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.
(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.
(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.
(a) Notwithstanding any other provision of law, the board
shall offer a midcareer retirement information program for the
benefit of all members.
(b) In implementing this section, the board shall develop plans for the development and delivery of information to enhance awareness of the features and benefits of the Defined Benefit Program, and services of the system, federal Social Security Act programs and benefits as they apply to members, and awareness of 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 impact retirement.
(c) The board, at a public meeting, may assess a participation fee for the recovery of all startup and ongoing expenses of the midcareer information program.
(d) The board shall provide both active and retired members with notice pertaining to paragraph (1) of subdivision (c) of Section 44830 and pertaining to Section 44252.5, making all members aware of the time constraints and possible requirement for passing the state basic skills proficiency test if an individual wants to return to the classroom after 39 months. The methods for providing the notice may include, but are not limited to, any of the following:
(1) Inclusion in annual member publications.
(2) Inclusion within packets of information provided to members upon or prior to retirement.
(3) Inclusion as an attachment to any warrants issued to members.
(b) In implementing this section, the board shall develop plans for the development and delivery of information to enhance awareness of the features and benefits of the Defined Benefit Program, and services of the system, federal Social Security Act programs and benefits as they apply to members, and awareness of 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 impact retirement.
(c) The board, at a public meeting, may assess a participation fee for the recovery of all startup and ongoing expenses of the midcareer information program.
(d) The board shall provide both active and retired members with notice pertaining to paragraph (1) of subdivision (c) of Section 44830 and pertaining to Section 44252.5, making all members aware of the time constraints and possible requirement for passing the state basic skills proficiency test if an individual wants to return to the classroom after 39 months. The methods for providing the notice may include, but are not limited to, any of the following:
(1) Inclusion in annual member publications.
(2) Inclusion within packets of information provided to members upon or prior to retirement.
(3) Inclusion as an attachment to any warrants issued to members.
(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.
(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.
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.
(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. 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 as necessary to locate a person to whom a benefit may be payable.
(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.
(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 as necessary to locate a person to whom a benefit may be payable.
(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.
(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.
(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.
(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.
(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.
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.
(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.
(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.
(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.
(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.
(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.
(b) Interest shall continue to accrue on the accumulated contributions pursuant to this part.
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.
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.
(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.
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.
(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.
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.
(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.
(b) This section shall become inoperative on July 1, 2046, and as of January 1, 2047, is repealed.
(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.
(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.
The system shall inform a member, upon retirement, that
future tax liabilities may occur as the result of the pending
retirement allowance.
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.
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.
(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.
(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.
(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.
(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.
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.
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.
The system shall report monthly to the board on all late
payments.
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.
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.
(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.
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.
(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.
(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.
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.
(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.
(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.
(a) The requirements and procedures described in this
section shall apply, to the extent that they are applicable, to the
following sections:
(1) Section 22309.
(2) Section 22661.
(3) Section 22662.
(4) Section 22663.
(5) Section 22801.
(6) Section 23104.
(7) Section 23203.
(8) Section 24615.
(9) Section 26214.
(b) A communication or other action described in a section listed in subdivision (a) may be made by electronic delivery pursuant to the requirements of this section. The system may designate electronic delivery the default method of communication or other action with regard to these sections, provided that the system notifies the parties affected that they have the right to request delivery by mail and that, unless the affected party elects, in a manner specified by the system, to continue delivery by mail, delivery shall be provided electronically.
(c) Prior to the designation described in subdivision (b), mail shall continue to be the default method of communication unless the member, nonmember spouse, participant, nonparticipant spouse, or beneficiary has requested that he or she receive that communication electronically, pursuant to a procedure specified by the system.
(d) If a provision in a section listed in subdivision (a) requires that action be taken within a specified number of days of a mailing date, and electronic delivery has been substituted for delivery by mail, date of electronic delivery shall substitute for date of mailing for purposes of measuring the number of days within which an action is to be taken.
(1) Section 22309.
(2) Section 22661.
(3) Section 22662.
(4) Section 22663.
(5) Section 22801.
(6) Section 23104.
(7) Section 23203.
(8) Section 24615.
(9) Section 26214.
(b) A communication or other action described in a section listed in subdivision (a) may be made by electronic delivery pursuant to the requirements of this section. The system may designate electronic delivery the default method of communication or other action with regard to these sections, provided that the system notifies the parties affected that they have the right to request delivery by mail and that, unless the affected party elects, in a manner specified by the system, to continue delivery by mail, delivery shall be provided electronically.
(c) Prior to the designation described in subdivision (b), mail shall continue to be the default method of communication unless the member, nonmember spouse, participant, nonparticipant spouse, or beneficiary has requested that he or she receive that communication electronically, pursuant to a procedure specified by the system.
(d) If a provision in a section listed in subdivision (a) requires that action be taken within a specified number of days of a mailing date, and electronic delivery has been substituted for delivery by mail, date of electronic delivery shall substitute for date of mailing for purposes of measuring the number of days within which an action is to be taken.
