Section 3262 Of Chapter 6. Voluntary Plans From California Unemployment Insurance Code >> Division 1. >> Part 2. >> Chapter 6.
3262
. (a) The Director of Employment Development may terminate any
voluntary plan if the director finds that there is danger that the
benefits accrued or to accrue will not be paid, that the security for
the payment is insufficient, or for other good cause shown. The
Director of Employment Development shall give notice of his or her
intention to terminate a plan to the employer, employee group, and
insurer. The notice shall state the effective date and the reason for
the withdrawal. The Director of Employment Development may change or
stay the effective date of the termination.
(b) Notwithstanding Section 3260.5, on the effective date of the
termination of a plan by the Director of Employment Development, all
moneys in the plan, including moneys paid by the employer, moneys
paid by the employee, moneys owed to the voluntary plan by the
employer but not yet paid to the plan, and any interest accrued on
all these moneys, shall be remitted to the department and deposited
into the Disability Fund.
(c) If an employer fails to remit all moneys owed to the
Disability Fund after termination of the plan, the Director of
Employment Development shall make an assessment against the employer
equal to the amount of the moneys owed. The Director of Employment
Development shall also make an assessment against the employer for
all benefits paid from the Disability Fund after the termination of
the plan, less any moneys received from the employer after the
termination of the plan.
(d) The provisions of Article 8 (commencing with Section 1126) of
Chapter 4 of Part 1, with respect to the assessment of moneys, and
the provisions of Chapter 7 (commencing with Section 1701) of Part 1,
with respect to the collection of moneys owed, shall apply to
assessments authorized under this section, except that interest may
not accrue until 30 days after issuance of the notice of assessment.
(e) The employer, employee group or insurer may, within 10 days
from mailing or personal service of the notice, appeal to the Appeals
Board. The 10-day period may be extended for good cause. The Appeals
Board may prescribe by regulation the time, manner, method and
procedure through which it may determine appeals under this section.
(f) The payment of benefits from the Disability Fund and the
transfer of moneys in the voluntary plan may not be delayed during an
employer's appeal of the termination of a voluntary plan.