Section 20692 Of Article 1. Normal Contributions From California Government Code >> Division 5. >> Title 2. >> Part 3. >> Chapter 8. >> Article 1.
20692
. (a) Where a contracting agency employer or a school employer
has elected to pay all or a portion of the normal contributions of
members of a group or class of employment pursuant to Section 20691,
the employer may, pursuant to a labor policy or agreement, stop
paying those contributions during the final compensation period
applicable to the members and, instead, increase the payrate of the
members by an amount equal to the normal contributions paid by the
employer on behalf of the employees in the pay period immediately
prior to the final compensation period or increase the payrate of the
members by an amount established by a labor policy or agreement in
existence and in effect on June 30, 1993. That amount shall not
exceed the amount of the normal member contributions that are
required to be paid by the members.
(b) This section shall not apply to any contracting agency or to
any school employer unless and until the contracting agency or the
school employer elects to be subject to this section by amendment to
its contract made in the manner prescribed for approval of contracts,
except an election among the employees is not required. In the case
of contracts made after July 1, 1994, the section shall not apply
unless incorporated by express provision in the contract. However, no
school employer may act pursuant to this section unless and until
the board approves a request for the amendment of the contract of a
school employer to authorize termination of the payment. A school
employer shall not submit a request for a contract amendment unless
there is on file a request to terminate that payment from the county
superintendent of schools office and each school district, community
college district, and other school entity within the jurisdiction of
that school employer.
(c) Before adopting this provision, the governing body of a
contracting agency or school employer shall, with timely public
notice, place the consideration of this section on the agendas of two
consecutive public meetings of the governing body, at which time,
full disclosure shall be made of the nature of the benefit, the
additional employer contributions, and the funding therefor. Only
after the second of these public meetings may the governing body
adopt this section. The employer shall notify the board of the
employer's compliance with this subdivision at the time of the
governing body's application to adopt this section.
(d) Persons hired after the effective date of an employer's
contract amendment to include this section shall be informed by the
employer of how this benefit relates to their total compensation and
benefit package.
(e) The additional employer contributions required under this
section shall be computed as a level percentage of member
compensation. The additional contribution rate required at the time
this section is added to a contract shall not be less than the sum of
(1) the actuarial normal cost, plus (2) in the case of a contract
amendment, the additional contribution required to amortize the
increase in accrued liability attributable to the benefit elected
under this section over the unfunded actuarial liability period
currently in the agency's contract, commencing from the date this
section becomes effective in the agency's contract.
(f) For the purposes of this section, all contributions,
liabilities, actuarial interest rates, and other valuation factors
necessary to calculate the employer's contribution shall be
determined on the basis of actuarial assumptions and methods which,
in combination, provide the board's best estimate of anticipated
experience under the system. The board has the exclusive power and
duty to make these determinations.
(g) Within 30 days of notification from the board to the
contracting agency or school employer of the additional employer
contributions required pursuant to this section, the contracting
agency or school employer, or a recognized employee organization, or
both, may file with the board a request for a review of the
determination of the calculation of the additional employer
contributions. The board shall promulgate regulations governing the
conduct of the review, that shall include the means by which an
employer or recognized employee organization may submit independent
actuarial evidence regarding the additional contribution required by
this section. The board shall make the final determination on the
additional employer contributions needed to fund this contract
amendment.
(h) This section shall not apply to a new member as defined in
Section 7522.04.