Section 31616 Of Article 5.5. Alternative Financial Provisions From California Government Code >> Division 4. >> Title 3. >> Part 3. >> Chapter 3. >> Article 5.5.
31616
. After the semiannual application of Section 31615, earnings
of the retirement fund in excess of the total interest credited to
contributions and reserves shall remain in the fund as a reserve
against deficiencies in interest earnings, losses on investments, or
payments made pursuant to Section 31588.1 or 31589.1, if applicable.
These funds shall be placed in an account known hereafter as the
Contingency Reserve Account. The size of this account shall be
determined semiannually by the board but shall not exceed 3 percent
of the total assets of the retirement fund.
If, at the end of any semiannual period, the balance of the
Contingency Reserve Account falls below 1 percent of system assets,
the board shall, by the end of the subsequent semiannual period,
provide funds from earnings of fund assets from the subsequent
semiannual period, to bring the level of the Contingency Reserve
Account to at least 1 percent of system assets.
No funds in the Contingency Reserve Account shall be available for
the payment of benefits.
Net earnings remaining after the application of this section shall
be applied as provided in Sections 31617, 31618, and 31619.