Section 20574 Of Article 5. Termination Of Contracts From California Government Code >> Division 5. >> Title 2. >> Part 3. >> Chapter 5. >> Article 5.
20574
. A terminated agency shall be liable to the system for any
deficit in funding for earned benefits, as determined pursuant to
Section 20577, interest at the actuarial rate from the date of
termination to the date the agency pays the system, and for
reasonable and necessary costs of collection, including attorney's
fees. The board shall have a lien on the assets of a terminated
contracting agency, subject only to a prior lien for wages, in an
amount equal to the actuarially determined deficit in funding for
earned benefits of the employee members of the agency, interest, and
collection costs. The assets shall also be available to pay actual
costs, including attorneys' fees, necessarily expended for collection
of the lien.