Section 26604 Of Chapter 7. Employee And Employer Accounts From California Education Code >> Division 1. >> Title 1. >> Part 14. >> Chapter 7.
26604
. (a) Beginning June 1, 1996, prior to the Cash Balance Plan
becoming effective, and prior to the beginning of each plan year
thereafter, the board, by plan amendment with respect to the Cash
Balance Benefit Program, shall declare the minimum interest rate for
crediting employee accounts and employer accounts with respect to the
Cash Balance Benefit Program during the following plan year.
(b) All interest shall be computed at the minimum interest rate on
the balance of the employee account and the employer account and
shall be compounded daily.
(c) Interest for contributions credited during that month to the
respective account shall accrue at the minimum interest rate from the
first working day following the date contributions are received in
full by the system pursuant to Section 26603.
(d) Interest shall not be credited to employee accounts and
employer accounts that have been transferred to the Annuitant Reserve
for payment of an annuity.