Section 26812 Of Chapter 9. Retirement Benefit From California Education Code >> Division 1. >> Title 1. >> Part 14. >> Chapter 9.
26812
. (a) A participant retired for service under this part may
perform retired participant activities, but the participant shall not
make contributions to the plan or accrue service credit under the
Defined Benefit Program based on compensation earned from that
service. The employer shall maintain accurate records of the earnings
of the retired participant and report those earnings monthly to the
system and retired participant.
(b) If a participant is retired for service under this part, the
annualized rate of pay for retired participant activities performed
by that participant shall not be less than the minimum, nor exceed
the maximum, paid by the employer to other employees performing
comparable duties.
(c) A participant retired for service under this part shall not be
required to reinstate for performing retired participant activities.
(d) (1) If all of the following apply to a participant retired for
service under this part, the participant's annuity shall be reduced
by the amount of the compensation:
(A) The participant is receiving an annuity under the Cash Balance
Benefit Program.
(B) The participant is below normal retirement age or retired on
or after January 1, 2014.
(C) The participant earns compensation paid in cash for performing
retired participant activities, excluding reimbursements paid by an
employer for expenses incurred by the participant in which payment of
the expenses by the participant is substantiated.
(2) The reduction in paragraph (1) shall only be made for
compensation paid in cash during the first 180 calendar days after a
participant retired for service under this part. The amount of the
reduction in an individual month shall be no more than the monthly
annuity payable in that month, and the total amount of the reduction
shall not exceed the amount of the annuity payable during the first
180 calendar days after a participant retired for service under this
part. For written agreements pertaining to the performance of retired
participant activities entered into, extended, renewed, or amended
on or after January 1, 2014, the reduction in paragraph (1) shall
also be made for payments made for the performance of retired
participant activities, including, but not limited to, those for
participation in a deferred compensation plan; to purchase an annuity
contract, tax-deferred retirement plan, or insurance program; and
for contributions to a plan that meets the requirements of Section
125, 401(a), 401(k), 403(b), 457(b), or 457(f) of Title 26 of the
United States Code when the cost is covered by an employer.
(3) Subject to the limitation described in paragraph (4), if all
of the following apply to a participant retired for service under
this part, the participant's application for the retirement benefit
shall automatically be canceled:
(A) The participant is anticipated to receive the retirement
benefit in the form of a lump-sum payment.
(B) The participant earns compensation for performing creditable
service within 180 calendar days following the date of termination of
employment.
(4) Paragraph (3) does not apply if the participant has reached
that age at which the Internal Revenue Code of 1986 requires a
distribution of benefits. A participant who has reached that age
shall receive a distribution commencing on the earlier of the date
that the participant has met the conditions of subdivision (b) of
Section 26806 or the conditions of subdivision (c) of Section 26004.
(e) If the participant has attained normal retirement age at the
time the compensation is earned, subdivision (d) shall not apply if
the appointment has been approved by the governing body of the
employer in a public meeting, as reflected in a resolution adopted by
the governing body of the employer prior to the performance of
retired participant activities, expressing its intent to seek an
exemption from the limitation specified in subdivision (d). Approval
of the appointment shall not be placed on a consent calendar.
Notwithstanding any other provision of Article 3.5 (commencing with
Section 6250) of Division 7 of Title 1 of the Government Code or any
state or federal law incorporated by subdivision (k) of Section 6254
of the Government Code, the resolution shall be subject to disclosure
by the entity adopting the resolution and the system. The resolution
shall include the following specific information and findings:
(1) The nature of the employment.
(2) A finding that the appointment is necessary to fill a
critically needed position before 180 calendar days have passed.
(3) A finding that the participant is not ineligible for
application of this subdivision pursuant to subdivision (g).
(4) A finding that the termination of employment of the retired
participant with the employer is not the basis for the need to
acquire the services of the participant.
(f) Subdivision (e) shall not apply to a retired participant whose
termination of employment with the employer is the basis for the
need to acquire the services of the participant.
(g) Subdivision (e) shall not apply if the participant received
additional service credit pursuant to Section 22714 or 22715 or
received from any public employer any financial inducement to retire.
For purposes of this section, "financial inducement to retire"
includes, but is not limited to, any form of compensation or other
payment that is paid directly or indirectly by a public employer to
the participant, even if not in cash, either before or after
retirement, if the participant retires for service on or before a
specific date or specific range of dates established by a public
employer on or before the date the inducement is offered. The system
shall liberally interpret this subdivision to further the Legislature'
s intent to make subdivision (e) inapplicable to participants if the
participant received a financial incentive from any public employer
to retire or otherwise terminate employment with a public employer.
(h) The superintendent, the county superintendent of schools, or
the chief executive officer of a community college shall submit all
documentation required by the system to substantiate the eligibility
of the retired participant for application of subdivision (e),
including, but not limited to, the resolution adopted pursuant to
that subdivision.
(i) The documentation required by this section shall be received
by the system prior to the retired participant's performance of
retired participant activities.
(j) Within 30 calendar days of the receipt of all documentation
required by the system pursuant to this section, the system shall
inform the entity seeking application of the exemption specified in
subdivision (e) and the retired participant whether the compensation
paid to the participant will be subject to the limitation specified
in subdivision (d).