22100-22177
EDUCATION CODE
SECTION 22100-22177
22100. Unless the context otherwise requires, the definitions set
forth in this chapter govern the construction of this part.
22101. "Accumulated annuity deposit contributions" means the sum of
all the annuity deposits standing to the credit of the member's
account, together with credited interest.
22101.5. "Accumulated Defined Benefit Supplement account balance"
means an amount equal to the sum of member contributions, the member
contributions picked up by an employer, employer contributions, and
interest credited on those contributions pursuant to Section 25005,
that are credited by the system to the member's Defined Benefit
Supplement account.
22101.5. "Accumulated Defined Benefit Supplement account balance"
means credits equal to the sum of member contributions, the member
contributions picked up by an employer, employer contributions,
interest credited pursuant to Section 25005 and additional earnings
credited pursuant to Section 25006.
22102. "Accumulated retirement contributions" means the sum of the
member contributions, the member contributions picked up by an
employer pursuant to Sections 22903 and 22904, and credited interest
on those contributions. Accumulated retirement contributions shall
not include accumulated annuity deposit contributions, accumulated
tax-sheltered annuity contributions, accumulated Defined Benefit
Supplement account balance, or additional earnings credit.
22103. "Accumulated tax-sheltered annuity contributions" means the
tax-sheltered contributions made by a member and standing to the
credit of the member's account, together with credited interest.
22104. "Actuarial equivalent" means an allowance of equal value
when computed upon the basis of such tables and interest rates that
are adopted by the board.
22104.5. "Actuary" means a person professionally trained in the
technical and mathematical aspects of insurance, pensions, and
related fields who has been appointed by the board for the purpose of
actuarial services required under this part.
22104.7. "Additional earnings credit" means an amount derived from
investment income for the plan year as determined by the board by
plan amendment and added to members' Defined Benefit Supplement
accounts in addition to the amount credited at the minimum interest
rate for that plan year.
22104.9. "Annuitant Reserve" means a segregated account within the
retirement fund established and maintained for expenditure on
annuities payable under the Defined Benefit Supplement Program.
22105. (a) "Annuity," with respect to the Defined Benefit Program,
means payments for life derived from the "accumulated annuity deposit
contributions" of a member.
(b) "Annuity," with respect to the Defined Benefit Supplement
Program, means an alternative payment arrangement wherein a benefit
based on the balance of credits in a member's Defined Benefit
Supplement account is paid monthly rather than in a lump-sum.
22105.5. "Annuity beneficiary" means the person or persons
designated by a member pursuant to Section 25011, 25011.1, 25018, or
25018.1 to receive an annuity under the Defined Benefit Supplement
Program upon the member's death.
22106. "Annuity deposit contributions" means additional
contributions made by a member prior to July 1, 1972, above those
required for credited service for the purpose of providing additional
retirement income.
22106.1. "Base days" means the number of days of creditable service
required to earn one year of service credit.
22106.2. "Base hours" means the number of hours of creditable
service required to earn one year of service credit.
22106.5. "Basis of employment" means the standard of time over
which the employer expects service to be performed by an employee in
the position during the school year.
(a) "Full-time basis" means a basis of employment that is full
time.
(b) "Part-time basis" means a basis of employment that is less
than full time.
22107. (a) "Beneficiary," with respect to the Defined Benefit
Program, means any person or entity receiving or entitled to receive
an allowance or lump-sum payment under the Defined Benefit Program
because of the disability or death of a member.
(b) "Beneficiary," with respect to the Defined Benefit Supplement
Program, means any person or entity receiving or entitled to receive
a final benefit under the Defined Benefit Supplement Program upon the
death of a member.
22108. (a) "Benefit" or "benefits," with respect to the Defined
Benefit Program, means any monthly payment due a retired member,
disabled member, or beneficiary, and includes lump-sum payments due
on account of death.
(b) "Benefit" and "benefits," with respect to the Defined Benefit
Supplement Program, means an amount equal to the balance of credits
in a member's Defined Benefit Supplement account.
22109. "Board" means the Teachers' Retirement Board.
22109.5. "Break in service," for purposes of determining a member's
final compensation, means:
(a) With respect to service of a member employed as a full-time
employee and service performed by a member employed as a part-time
employee, any period of time covering a pay period during which a
member is on an unpaid leave of absence or a pay period in which a
member has not performed any creditable service.
(b) For a member who has been employed in a substitute position:
(1) And has a change in assignment during a school year to a
full-time or part-time position, a break in service is determined on
the same basis as for the full-time or part-time employment during
the same school year.
(2) For less than 50 percent of their teaching career for which
service is credited, a break in service is determined on the same
basis as full-time employment.
(3) For more than 50 percent of their teaching career for which
service is credited, a break in service is any period of time within
a school year for which compensation is not paid and service is not
credited.
(c) If a member commenced performing service at the beginning of a
school term, July and August of the school year are not a break in
service; however, if the member commenced performing service after
the school term begins, the previous July and August are a break in
service.
(d) Earnable salaries for a full pay period, but not beyond the
effective date of retirement, shall be used in determining final
compensation when the member performed service within that pay
period.
22110. "California service" means service performed in California
for which credit may be given.
22110.1. "Cash Balance Benefit Program" means the benefit program
of the State Teachers' Retirement Plan as set forth in Part 14
(commencing with Section 26000).
22110.2. "Credential," "credentials," and "certificate" mean any
life diploma, credential, certificate, or other document provided
for, by, and issued pursuant to the laws of the state that authorize
service in the public school system of this state.
22110.5. "Certificated" means the holding by a person of a
credential that is required by the laws of the state to be held as a
condition to valid employment in the position in which the person is
employed.
22111. "Child's portion" or "children's portion" means the amount
of a disability allowance, disability retirement allowance, family
allowance, or survivor benefit allowance payable for a dependent
child or dependent children.
22112.5. (a) "Class of employees" means a number of employees
considered as a group because they are employed to perform similar
duties, are employed in the same type of program, or share other
similarities related to the nature of the work being performed.
(b) A class of employees may be comprised of one person if no
other person employed by the employer performs similar duties, is
employed in the same type of program, or shares other similarities
related to the nature of the work being performed and that same class
is in common use among other employers.
(c) The board shall have the right to override the determination
by an employer as to whether or not a group or an individual
constitutes a "class of employees" within the meaning of this
section.
(d) The amendments to this section during the 1995-96 Regular
Session of the Legislature shall be deemed to have become operative
on July 1, 1996.
22112.6. Notwithstanding Section 22112.5, any county office of
education that, prior to January 1, 1997, operated a special
education program for up to 225 days, and changes that program to a
regular school year of not less than 180 school days with an extended
year of not more than 45 days effective July 1, 1998, may consider
days of service in defining not more than two classes of employees,
subject to the following:
(a) Members employed in the 225-day program prior to October 1,
1997, may remain in a class of employees for whom full-time service
is 216 days per year.
(b) Any of those members may elect to belong to a second class of
employees for whom full-time service is fewer than 216 days per year,
but not less than the minimum standard specified in paragraph (1) of
subdivision (b) of Section 22138.5, if both of the following
conditions exist:
(1) The election is made on or before June 30, 1998, and is
effective July 1, 1998.
(2) The election is nonrevocable.
(c) All certificated employees hired on or after October 1, 1997,
shall belong to the class of employees specified in subdivision (b).
(d) This section shall not apply to certificated employees whose
base year is determined pursuant to subparagraph (A) or (B) of
paragraph (2) of subdivision (b) of Section 22138.5.
22113. "Comparable level position" means any job in which the
member can earn 66 2/3 percent or more of indexed final compensation.
22115. (a) "Compensation earnable" means the creditable
compensation a person could earn in a school year for creditable
service performed on a full-time basis, excluding service for which
contributions are credited by the system to the Defined Benefit
Supplement Program.
(b) The board may determine compensation earnable for persons
employed on a part-time basis.
(c) If service credit for a school year is less than 1.000,
compensation earnable shall be the quotient obtained when creditable
compensation paid in that year is divided by the service credit for
that year, except as provided in subdivision (d).
(d) If a member earns creditable compensation at multiple pay
rates during a school year and service credit at the highest pay rate
is at least 0.900 of a year, compensation earnable shall be
determined as if all service credit for that year had been earned at
the highest pay rate. This subdivision shall be applicable only for
purposes of determining final compensation. If a member earns
creditable compensation at multiple pay rates during a school year
and service credit at the highest pay rate is less than 0.900 of a
year, compensation earnable shall be determined pursuant to
subdivision (c).
(e) (1) For purposes of determining compensation earnable for a
member employed by a community college prior to July 1, 1996, full
time shall be defined pursuant to Section 22138.5 and pursuant to
Section 20521 of Title 5 of the California Code of Regulations, as
those provisions read on June 30, 1996, if application of that
definition will increase the compensation earnable or otherwise
enhance the benefits of the member.
(2) For purposes of administering this subdivision, the board
shall have the authority to do both of the following:
(A) Establish and implement factors and assumptions necessary to
calculate and compare the benefits payable under the definition of
compensation earnable described in this subdivision. Those factors
and assumptions may be based on information reported by the employer,
including, but not limited to, all of the following:
(i) Base hours.
(ii) Actual earnings.
(iii) Compensation earnable.
(B) Review member benefit calculations that were performed using
the factors and assumptions described in subparagraph (A). If the
board determines that an employer failed to identify part-time
service performed, the board shall consider that part-time service to
be performed in a part-time lecture assignment as defined by the
employer. If the board determines by the review of the member benefit
calculations that the required information reported by the employer
is inaccurate, incomplete, or the factors and assumptions were
applied incorrectly, the board may recalculate member benefits using
additional factors and assumptions that may include, but are not
limited to, all of the following:
(i) Base hours.
(ii) Actual earnings.
(iii) Compensation earnable.
(3) This subdivision shall apply to a member employed by a
community college prior to July 1, 1996, if the community college
subsequently acts to reduce the minimum standard for full time as
described in subdivision (c) of Section 22138.5 for the class of
employees, and that community college provides written notice to the
system of the act of the community college to reduce that minimum
standard.
(4) This subdivision shall not apply to a member employed by a
community college that has not reduced the minimum standard as
described in subdivision (c) of Section 22138.5.
22115.2. "Concurrent membership" means membership in the Defined
Benefit Program by an individual who is credited with service that is
not used as a basis for benefits under any other public retirement
system and is also a member of the California Public Employees'
Retirement System, the Legislators' Retirement System, the University
of California Retirement System, county retirement systems
established under Chapter 3 (commencing with Section 31450) of Part 3
of Division 4 of Title 3 of the Government Code, or the San
Francisco Employees' Retirement System. A member with concurrent
membership shall have the right to the following:
(a) Have final compensation determined pursuant to subdivision (c)
of Section 22134 or subdivision (c) of Section 22134.5.
(b) Redeposit accumulated retirement contributions pursuant to
Section 23201.
(c) Apply for retirement pursuant to paragraph (2) of subdivision
(a) of Section 24201.
22115.5. (a) "Concurrent retirement" entitles a member of the
Defined Benefit Program to retire for service from the State Teachers'
Retirement System and from at least one of the retirement systems
with which the member has concurrent membership, as defined in
Section 22115.2, on the same date or on different dates provided that
the member does not perform creditable service subject to coverage
under the other system or the Defined Benefit Program between the two
retirement dates.
(b) A retired member who is subsequently employed in a position
subject to membership in a public retirement system, specified in
Section 22115.2, shall not be eligible for concurrent retirement.
22117. "Contribution rate for additional service credit" means the
contribution rate adopted by the board as a plan amendment with
respect to the Defined Benefit Program for the purchase of service
credit. This rate shall be based upon the most recent valuation of
the plan with respect to the Defined Benefit Program and increased to
include any subsequently required contribution rates designated for
funding subsequent allowance increases.
22118. "County" includes "city and county."
22119. "County superintendent" means the county superintendent of
schools.
22119.2. (a) "Creditable compensation" means remuneration that is
payable in cash by an employer to all persons in the same class of
employees and is paid to an employee for performing creditable
service. Creditable compensation shall include:
(1) Salary paid in accordance with a salary schedule or employment
agreement.
(2) Remuneration that is paid in addition to salary, providing it
is payable to all persons who are in the same class of employees in
the same dollar amount, the same percentage of salary, or the same
percentage of the amount being distributed.
(3) Remuneration that is paid for the use of sick leave, vacation,
and other employer-approved leave, except as provided in paragraph
(4) of subdivision (c).
(4) Member contributions that are picked up by an employer
pursuant to Section 22903 or 22904.
(5) Amounts that are deducted from a member's compensation,
including, but not limited to, salary deductions for participation in
a deferred compensation plan; deductions to purchase an annuity
contract, tax-deferred retirement plan, or insurance program; and
contributions to a plan that meets the requirements of Section 125,
401(k), or 403(b) of Title 26 of the United States Code.
(6) Any other payments the board determines to be "creditable
compensation."
(b) Any salary or other remuneration determined by the board to
have been paid for the principal purpose of enhancing a member's
benefits under the plan shall not be credited under the Defined
Benefit Program. Contributions on that compensation shall be credited
to the Defined Benefit Supplement Program. A presumption by the
board that salary or other remuneration was paid for the principal
purpose of enhancing the member's benefits under the plan may be
rebutted by the member or by the employer on behalf of the member.
Upon receipt of sufficient evidence to the contrary, a presumption by
the board that salary or other remuneration was paid for the
principal purpose of enhancing the member's benefits under the plan
may be reversed.
(c) "Creditable compensation" does not mean and shall not include:
(1) Remuneration that is not payable in cash or is not payable to
all persons who are in the same class of employees.
(2) Remuneration that is paid for service that is not creditable
service pursuant to Section 22119.5.
(3) Remuneration that is paid in addition to salary if it is not
payable to all persons in the same class of employees in the same
dollar amount, the same percentage of salary, or the same percentage
of the amount being distributed pursuant to paragraph (2) of
subdivision (a).
(4) Remuneration that is paid for unused accumulated leave.
(5) Annuity contracts, tax-deferred retirement plans, or insurance
programs and contributions to plans that meet the requirements of
Section 125, 401(k), or 403(b) of Title 26 of the United States Code
when the cost is covered by an employer and is not deducted from the
member's salary.
(6) Fringe benefits provided by an employer.
(7) Job-related expenses paid or reimbursed by an employer.
(8) Severance pay or compensatory damages or money paid to a
member in excess of salary as a compromise settlement.
(9) Any other payments the board determines not to be "creditable
compensation."
(d) An employer or individual who knowingly or willfully reports
compensation in a manner inconsistent with subdivision (a) or (c) may
be subject to prosecution for fraud, theft, or embezzlement in
accordance with the Penal Code. The system may establish procedures
to ensure that compensation reported by an employer is in compliance
with this section.
(e) For purposes of this section, remuneration shall be considered
payable if it would be paid to any person who meets the
qualifications or requirements specified in a collective bargaining
agreement or an employment agreement as a condition of receiving the
remuneration.
(f) This definition of "creditable compensation" reflects sound
principles that support the integrity of the retirement fund. Those
principles include, but are not limited to, consistent treatment of
compensation throughout a member's career, consistent treatment of
compensation among an entire class of employees, preventing adverse
selection, and excluding from compensation earnable remuneration that
is paid for the principal purpose of enhancing a member's benefits
under the plan. The board shall determine the appropriate crediting
of contributions between the Defined Benefit Program and the Defined
Benefit Supplement Program according to these principles, to the
extent not otherwise specified pursuant to this part.
(g) The section shall become operative on July 1, 2002, if the
revenue limit cost-of-living adjustment computed by the
Superintendent of Public Instruction for the 2001-02 fiscal year is
equal to or greater than 3.5 percent. Otherwise this section shall
become operative on July 1, 2003.
22119.5. (a) "Creditable service" means any of the following
activities performed for an employer in a position requiring a
credential, certificate, or permit pursuant to this code or under the
appropriate minimum standards adopted by the Board of Governors of
the California Community Colleges or under the provisions of an
approved charter for the operation of a charter school for which the
employer is eligible to receive state apportionment:
(1) The work of teachers, instructors, district interns, and
academic employees employed in the instructional program for pupils,
including special programs such as adult education, regional
occupation programs, child care centers, and prekindergarten programs
pursuant to Section 22161.
(2) Education or vocational counseling, guidance, and placement
services.
(3) The work of directors, coordinators, and assistant
administrators who plan courses of study to be used in California
public schools, or research connected with the evaluation or
efficiency of the instructional program.
(4) The selection, collection, preparation, classification,
demonstration, or evaluation of instructional materials of any course
of study for use in the development of the instructional program in
California public schools, or other services related to school
curriculum.
(5) The examination, selection, in-service training, or assignment
of teachers, principals, or other similar personnel involved in the
instructional program.
(6) School activities related to, and an outgrowth of, the
instructional and guidance program of the school when performed in
addition to other activities described in this section within the
hours considered normal on a full-time basis for full-time employees
of the employer.
(7) The work of nurses, physicians, speech therapists,
psychologists, audiometrists, audiologists, and other supervised
employees in the school health program.
(8) Services as a school librarian.
(9) The work of county and district superintendents and other
employees who are responsible for the supervision of persons or
administration of the duties described in this section.
(b) The board shall have final authority for determining
creditable service to cover any activities not specified.
22119.5. (a) "Creditable service" means any of the following
activities performed for an employer in a position requiring a
credential, certificate, or permit pursuant to this code or under the
appropriate minimum standards adopted by the Board of Governors of
the California Community Colleges or under the provisions of an
approved charter for the operation of a charter school for which the
employer is eligible to receive state apportionment or pursuant to a
contract between a community college district and the United States
Department of Defense to provide vocational training:
(1) The work of teachers, instructors, district interns, and
academic employees employed in the instructional program for pupils,
including special programs such as adult education, regional
occupation programs, child care centers, and prekindergarten programs
pursuant to Section 22161.
(2) Education or vocational counseling, guidance, and placement
services.
(3) The work of directors, coordinators, and assistant
administrators who plan courses of study to be used in California
public schools, or research connected with the evaluation or
efficiency of the instructional program.
(4) The selection, collection, preparation, classification,
demonstration, or evaluation of instructional materials of any course
of study for use in the development of the instructional program in
California public schools, or other services related to school
curriculum.
(5) The examination, selection, in-service training, or assignment
of teachers, principals or other similar personnel involved in the
instructional program.
(6) School activities related to, and an outgrowth of, the
instructional and guidance program of the school when performed in
addition to other activities described in this section.
(7) The work of nurses, physicians, speech therapists,
psychologists, audiometrists, audiologists, and other school health
professionals.
(8) Services as a school librarian.
(9) The work of employees who are responsible for the supervision
of persons or administration of the duties described in this section.
(b) "Creditable service" also means the work of superintendents of
California public schools.
(c) The board shall have final authority for determining
creditable service to cover any activities not already specified.
22120. "Credited interest" means interest that is credited to
active members' and inactive members', accumulated retirement
contributions, and accumulated annuity deposit contributions at a
rate set annually by the board as a plan amendment with respect to
the Defined Benefit Program.
22121. (a) "Credited service" means service for which the required
contributions have been paid.
(b) "Credited service" for the limited purpose of determining
eligibility for benefits pursuant to Section 22134.5, 24203.5, or
24203.6 also includes up to two-tenths of one year of service granted
pursuant to Section 22717.
22122. "Custodian" as used in Section 22359, means any bank or
trust company that serves as custodian for safekeeping, delivery,
securities valuation, investment performance reporting, and other
services in connection with investment of the fund.
22122.4. "Death payment" means the amount payable upon the death of
a member pursuant to Section 23801, 23851, or 23880.
22122.5. "Defined Benefit Program" means the Defined Benefit
Program provided in the State Teachers' Retirement Plan as set forth
in this part.
22122.7. "Defined Benefit Supplement contributions" means member
contributions and employer contributions that are credited by the
system to the member's Defined Benefit Supplement account pursuant to
Section 25004.
22123. (a) "Dependent child" or "dependent children" under the
disability allowance and family allowance programs means a member's
unmarried offspring or stepchild who is under 22 years of age and who
is financially dependent upon the member on the effective date of
the member's disability allowance or the date of the member's death.
(b) "Offspring" shall include the member's child who is born
within the 10-month period commencing on the earlier of the member's
disability allowance effective date or the date of the member's
death.
(c) "Offspring" shall include a child adopted by the member.
(d) "Dependent child" shall not include the member's offspring or
stepchild who is adopted by a person other than the member's spouse.
(e) "Dependent child" under the family allowance program shall not
include:
(1) The member's offspring or stepchild who was financially
dependent on the member on the date of the member's death if a
disability allowance was payable to the member prior to his or her
death and the disability allowance did not include an amount payable
for that offspring or stepchild.
(2) A stepchild or adopted child acquired subsequent to the death
of the member.
(f) "Financially dependent" for purposes of this section means
that at least one-half of the child's support was being provided by
the member on the member's disability allowance effective date or the
date of the member's death. The system may require that income tax
records or other data be submitted to substantiate the child's
financial dependence. In the absence of substantiating documentation,
the system may determine that the child was not dependent on the
effective date of the member's disability allowance or the date of
the member's death.
(g) "Member" as used in this section shall have the same meaning
specified in Section 23800.
22123.5. (a) "Dependent child" or "dependent children" under the
disability retirement and survivor benefit allowance programs means a
member's offspring or stepchild who is under 21 years of age and who
is financially dependent upon the member on the effective date of
the member's disability retirement or the date of the member's death.
(b) "Offspring" shall include the member's child who is born
within the 10-month period commencing on the earlier of the member's
disability retirement effective date or the date of the member's
death.
(c) "Offspring" shall include a child adopted by the member.
(d) "Dependent child" shall not include the member's offspring or
stepchild who is adopted by a person other than the member's spouse.
(e) "Dependent child" under the survivor benefit allowance program
shall not include a stepchild or adopted child acquired subsequent
to the death of the member.
(f) "Financially dependent" for purposes of this section means
that at least one-half of the child's support was being provided by
the member on the member's disability retirement effective date or
the date of the member's death. The system may require that income
tax records or other data be submitted to substantiate the child's
financial dependence. In the absence of substantiating documentation,
the system may determine that the child was not dependent on the
effective date of the member's disability retirement or the date of
the member's death.
(g) "Member" as used in this section shall have the same meaning
specified in Section 23850.
22124. "Dependent parent" means a natural parent of a member, or a
parent who adopted the member prior to the earlier of the occurrence
of the member's marriage or his or her attaining 18 years of age, and
who was receiving one-half or more of his or her support from the
member at the time of the member's death.
22126. "Disability" or "disabled" means any medically determinable
physical or mental impairment that is permanent or that can be
expected to last continuously for at least 12 months, measured from
the onset of the disability, but no earlier than the day following
the last day of actual performance of service that prevents a member
from performing the member's usual duties for the member's employer,
the member's usual duties for the member's employer with reasonable
modifications, or the duties of a comparable level position for which
the member is qualified or can become qualified within a reasonable
period of time by education, training, or experience. Any impairment
from a willful self-inflicted injury shall not constitute a
disability.
22127. "Disability allowance" means the amount payable to a
disabled member on a monthly basis.
22127.2. "Disability benefit" means the amount payable under the
Defined Benefit Supplement Program based on the balance of credits in
a member's Defined Benefit Supplement account to either a disabled
member pursuant to Section 24005 or to a member who retired for
disability pursuant to Section 24105.
22128. "Early retirement" and "early retirement age" mean the age
of 55 years, which is the age upon attainment of which the member
becomes eligible under the Defined Benefit Program for a service
retirement allowance with reduction because of age and without
special qualifications.
22129. "Educational institution" means any accredited public or
private institution whose primary purpose is to provide classroom
teaching and includes a high school, trade or vocational school or
college, community college, or other college or university.
22130. "Effective date" means the date upon which the benefit
becomes payable.
22131. "Employer" or "employing agency" means the state or any
agency or political subdivision thereof for which creditable service
subject to coverage by the plan is performed.
22132. "Employed" or "employment" means employment to perform
creditable service subject to coverage under the Defined Benefit
Program or the Defined Benefit Supplement Program, except as
otherwise specifically provided under this part.
22133. "Family allowance" means amounts payable to eligible
survivors provided pursuant to Chapter 22 (commencing with Section
23800) after June 30, 1972.
22133.5. "Final benefit" means the amount payable to a beneficiary
under the Defined Benefit Supplement Program upon the death of the
member.
22134. (a) "Final compensation" means the highest average annual
compensation earnable by a member during any period of three
consecutive school years while an active member of the Defined
Benefit Program or time during which he or she was not a member but
for which the member has received credit under the Defined Benefit
Program, except time that was so credited for service performed
outside this state prior to July 1, 1944.
(b) For purposes of this section, periods of service separated by
breaks in service may be aggregated to constitute a period of three
consecutive years, if the periods of service are consecutive except
for the breaks.
(c) The determination of final compensation of a member who has
concurrent membership in any other retirement system pursuant to
Section 22115.2 shall take into consideration the compensation
earnable while a member of any other system, provided that both of
the following exist:
(1) Service under any other system was not performed during the
same pay period with service under the Defined Benefit Program.
(2) Retirement under the Defined Benefit Program is concurrent
with the member's retirement under any other system.
(d) The compensation earnable for the first position in which
California service was credited shall be used when additional
compensation earnable is required to accumulate three consecutive
years for the purpose of determining final compensation under Section
23805.
(e) If a member has received service credit for part-time service
performed prior to July 1, 1956, the member's final compensation
shall be adjusted for that service in excess of one year by the ratio
that part-time service bears to full-time service.
(f) The board may specify a different final compensation with
respect to disability allowances, disability retirement allowances,
family allowances, and children's portions of survivor benefit
allowances payable on and after January 1, 1978. The compensation
earnable for periods of part-time service shall be adjusted by the
ratio that part-time service bears to full-time service.
(g) The amendment of former Section 22127 made by Chapter 782 of
the Statutes of 1982 does not constitute a change in, but is
declaratory of, the existing law.
22134.5. (a) Notwithstanding Section 22134, "final compensation"
means the highest average annual compensation earnable by a member
during any period of 12 consecutive months while an active member of
the Defined Benefit Program or time during which he or she was not a
member but for which the member has received credit under the Defined
Benefit Program, except time that was so credited for service
performed outside this state prior to July 1, 1944.
(b) For purposes of this section, periods of service separated by
breaks in service may be aggregated to constitute a period of 12
consecutive months, if the periods of service are consecutive except
for the breaks.
(c) The determination of final compensation of a member who has
concurrent membership in any other retirement system pursuant to
Section 22115.2 shall take into consideration the compensation
earnable while a member of any other system, provided that both of
the following exist:
(1) Service under any other system was not performed during the
same pay period with service under the Defined Benefit Program.
(2) Retirement under the Defined Benefit Program is concurrent
with the member's retirement under any other system.
(d) If a member has received service credit for part-time service
performed prior to July 1, 1956, the member's final compensation
shall be adjusted for that service in excess of one year by the ratio
that part-time service bears to full-time service.
(e) The board may specify a different final compensation with
respect to disability allowances, disability retirement allowances,
family allowances, and children's portions of survivor benefit
allowances payable on and after January 1, 1978. The compensation
earnable for periods of part-time service shall be adjusted by the
ratio that part-time service bears to full-time service.
(f) This section shall apply to the following:
(1) A member who has 25 or more years of credited service,
excluding service credited pursuant to the following:
(A) Section 22714.
(B) Section 22714.5.
(C) Section 22715.
(D) Section 22717, except as provided in subdivision (b) of
Section 22121.
(E) Section 22826.
(2) A nonmember spouse, if the member had 25 or more years of
credited service, as calculated in paragraph (1), on the date the
parties separated, as established in the judgment or court order
pursuant to Section 22652.
22135. (a) Notwithstanding subdivisions (a) and (b) of Section
22134, "final compensation" means the highest average annual
compensation earnable by an active member who is a classroom teacher
who retires, becomes disabled, or dies, after June 30, 1990, during
any period of 12 consecutive months during his or her membership in
the plan's Defined Benefit Program.
(b) Section 22134, except subdivision (a) of that section, shall
apply to classroom teachers who retire after June 30, 1990, and any
statutory reference to Section 22134 or "final compensation" with
respect to a classroom teacher who retires, becomes disabled, or
dies, after June 30, 1990, shall be deemed to be a reference to this
section.
(c) As used in this section, "classroom teacher" means any of the
following:
(1) All teachers and substitute teachers in positions requiring
certification qualifications who spend, during the last 10 years of
their employment with the same employer which immediately precedes
their retirement, 60 percent or more of their contract time each year
providing direct instruction. For the purpose of determining
continuity of employment within the meaning of this subdivision, an
authorized leave of absence for sabbatical or illness or other
collectively bargained or employer-approved leaves shall not
constitute a break in service.
(2) Other certificated personnel who spend, during the last 10
years of their employment with the same employer that immediately
precedes their retirement, 60 percent or more of their contract time
each year providing direct services to pupils, including, but not
limited to, librarians, counselors, nurses, speech therapists,
resource specialists, audiologists, audiometrists, hygienists,
optometrists, psychologists, driver safety instructors, and personnel
on special assignment to perform school attendance and adjustment
services.
(d) As used in this section, "classroom teacher" does not include
any of the following:
(1) Certificated employees whose job descriptions require an
administrative credential.
(2) Certificated employees whose job descriptions include
responsibility for supervision of certificated staff.
(3) Certificated employees who serve as advisers, coordinators,
consultants, or developers or planners of curricula, instructional
materials, or programs, who spend, during the last 10 years of their
employment with the same employer that immediately precedes their
retirement, less than 60 percent of their contract time in direct
instruction.
(4) Certificated employees whose job descriptions require
provision of direct instruction or services, but who are functioning
in nonteaching assignments.
(5) Classified employees.
(e) This section shall apply only to teachers employed by an
employer that has, pursuant to Chapter 10.7 (commencing with Section
3540) of Division 4 of Title 1 of the Government Code, entered into a
written agreement with an exclusive representative, that makes this
section applicable to all of its classroom teachers, as defined in
subdivision (c).
(f) The written agreement shall include a mechanism to pay for all
increases in allowances provided for by this section through
employer contributions or employee contributions or both, which shall
be collected and retained by the employer in a trust fund to be used
solely and exclusively to pay the system for all increases in
allowances provided by this section and related administrative costs;
and a mechanism for disposition of the employee's contributions if
employment is terminated before retirement, and for the establishment
of a trust fund board. The trust fund board shall administer the
trust fund and shall be composed of an equal number of members
representing classroom teachers chosen by the bargaining agent and
the employer. If the employer agrees to pay the total cost of
increases in allowances, the establishment of a trust fund and a
trust fund board shall be optional to the employer. The employer,
within 30 days of receiving an invoice from the system, shall
reimburse the retirement fund the amount determined by the Teachers'
Retirement Board to be the actuarial equivalent of the difference
between the allowance the member or beneficiary receives pursuant to
this section and the allowance the member or beneficiary would have
received if the member's final compensation had been computed under
Section 22134 and the proportionate share of the cost to the plan's
Defined Benefit Program, as determined by the Teachers' Retirement
Board, of administering this section. The payment shall include the
cost of all increases in allowances provided for by this section for
all years of service credited to the member as of the benefit
effective date. Interest shall be charged at the regular interest
rate for any payment not received within 30 days of receipt of the
invoice. Payments not received within 30 days after receipt of the
invoice may be collected pursuant to Section 23007.
(g) Upon the execution of the agreement, the employer shall notify
all certificated employees of the agreement and any certificated
employee of the employer, who is a member of the Public Employees'
Retirement System pursuant to Section 22508, that he or she may,
within 60 days following the date of notification, elect to terminate
his or her membership in the Public Employees' Retirement System and
become a member of this plan's Defined Benefit Program. However,
only service credited under the Defined Benefit Program subsequent to
the date of that election shall be subject to this section.
(h) An employer that agrees to become subject to this section,
shall, on a form and within the timeframes prescribed by the system,
certify the applicability of this section to a member pursuant to the
criteria set forth in this section when a retirement, disability, or
family allowance becomes payable.
(i) For a nonmember spouse, final compensation shall be determined
pursuant to paragraph (2) of subdivision (c) of Section 22664. The
employer, within 30 days of receiving an invoice from the system,
shall reimburse the retirement fund pursuant to subdivision (f).
Interest shall be charged at the regular interest rate for payments
not received within the prescribed timeframe. Payments not received
within 30 days of invoicing may be collected pursuant to Section
23007.
22136. (a) "Final compensation" with respect to a member whose
salary while an active member was reduced because of a reduction in
school funds means the highest average annual compensation earnable
by the member during any three years while employed to perform
creditable service subject to coverage by the Defined Benefit Program
if the member elects to be subject to this section.
(b) For the purposes of this section, a year shall be considered
to be a period of 12 consecutive months.
22137. With respect to a state employee member who dies or retires
on or after July 1, 1991, and who was a managerial or supervisory
employee, as defined by subdivisions (e) and (g) of Section 3513 of
the Government Code, whose monthly salary range was administratively
reduced by 5 percent because of the salary range reductions
administratively imposed upon managers and supervisors during the
1991-92 fiscal year, "final compensation" means the highest annual
compensation the state employee member would have earned had his or
her salary range not been reduced by the 5-percent reduction. This
section shall only apply if the period during which the state member'
s salary was reduced would have otherwise been included in
determining his or her final compensation for retirement purposes.
The costs, if any, that may result from the use of the higher final
compensation shall be paid for by the employer at the time of
retirement in a manner prescribed by the system.
22138. "Final vesting" means the right of a member or a beneficiary
to receive a monthly retirement allowance, disability allowance, a
family benefit, or survivor benefits when the member has completed
the minimum number of years of credited service, has attained the
minimum specified age, has formally terminated his or her active
service, has made application for retirement, or has been formally
retired in accordance with Section 24201, after which the kind and
amount of the retirement allowance is fixed and cannot thereafter be
changed except as provided in this part.
22138.5. (a) "Full time" means the days or hours of creditable
service the employer requires to be performed by a class of employees
in a school year in order to earn the compensation earnable as
defined in Section 22115 and specified under the terms of a
collective bargaining agreement or employment agreement. For the
purpose of crediting service under this part, "full time" may not be
less than the minimum standard specified in this section. Each
collective bargaining agreement or employment agreement that applies
to a member subject to the minimum standard specified in paragraph
(5) of subdivision (c) shall specify the number of hours of
creditable service that equal "full time" pursuant to this section,
and shall make specific reference to this section.
(b) The minimum standard for full time in prekindergarten through
grade 12 is as follows:
(1) One hundred seventy-five days per year or 1,050 hours per
year, except as provided in paragraphs (2) and (3).
(2) (A) One hundred ninety days per year or 1,520 hours per year
for all principals and program managers, including advisers,
coordinators, consultants, and developers or planners of curricula,
instructional materials, or programs, and for administrators, except
as provided in subparagraph (B).
(B) Two hundred fifteen days per year or 1,720 hours per year
including school and legal holidays pursuant to the policy adopted by
the employer's governing board for administrators at a county office
of education.
(3) One thousand fifty hours per year for teachers in adult
education programs.
(c) The minimum standard for full time in community colleges is as
follows:
(1) One hundred seventy-five days per year or 1,050 hours per
year, except as provided in paragraphs (2), (3), (4), (5), and (6).
Full time includes time for duties the employer requires to be
performed as part of the full-time assignment for a particular class
of employees.
(2) One hundred ninety days per year or 1,520 hours per year for
all program managers and for administrators, except as provided in
paragraph (3).
(3) Two hundred fifteen days per year or 1,720 hours per year
including school and legal holidays pursuant to the policy adopted by
the employer's governing board for administrators at a district
office.
(4) One hundred seventy-five days per year or 1,050 hours per year
for all counselors and librarians.
(5) Five hundred twenty-five instructional hours per school year
for all instructors employed on a part-time basis, except instructors
specified in paragraph (6). If an instructor receives compensation
for office hours pursuant to Article 10 (commencing with Section
87880) of Chapter 3 of Part 51, the minimum standard shall be
increased appropriately by the number of office hours required
annually for the class of employees.
(6) Eight hundred seventy-five instructional hours per school year
for all instructors employed in adult education programs. If an
instructor receives compensation for office hours pursuant to Article
10 (commencing with Section 87880) of Chapter 3 of Part 51, the
minimum standard shall be increased appropriately by the number of
office hours required annually for the class of employees.
(d) The board has final authority to determine full time for
purposes of crediting service under this part if full time is not
otherwise specified in this section.
22138.6. "Full-time equivalent" means the days or hours of
creditable service that a person who is employed on a part-time basis
would be required to perform in a school year if he or she were
employed full time in that part-time position.
22139.5. "Gain and Loss Reserve" means a segregated account within
the retirement fund that is established and maintained to do either
of the following:
(a) Credit interest to members' Defined Benefit Supplement
accounts at the minimum interest rate for plan years in which the
board determines that the obligation cannot be met from the plan's
investment earnings with respect to the Defined Benefit Supplement
Program.
(b) Provide additions to the Annuitant Reserve to meet the plan's
obligation for annuities payable under the Defined Benefit Supplement
Program.
22140. (a) "Improvement factor," with respect to the Defined
Benefit Program, means an increase of 2 percent in monthly
allowances. The improvement factor shall be added to a monthly
allowance each year on September 1, commencing on September 1
following the first anniversary of the effective date of retirement,
or the date on which the monthly allowance commenced to accrue to any
beneficiary, or other periods specifically stated in this part.
(b) The improvement factor may not be compounded nor shall it be
applicable to annuities payable from the accumulated annuity deposit
contributions or the accumulated tax-sheltered annuity contributions.
The Legislature reserves the right to adjust the amount of the
improvement factor up or down as economic conditions dictate. Any
adjustment of the improvement factor may not reduce the monthly
retirement allowance or annuity below that which would be payable to
the recipient under this part had this section not been enacted.
22141. Notwithstanding Section 22140, "improvement factor" means an
increase of 2 percent in benefits provided under Sections 24408 and
24409 for each year commencing on September 1, 1981, and under
Section 24410.5 for each year commencing September 1, 2001, and under
Sections 24410.6 and 24110.7 for each year commencing September 1,
2002. The factor shall not be compounded nor shall it be applicable
to annuities payable from the accumulated annuity deposit
contributions or the accumulated tax-sheltered annuity contributions.
The Legislature reserves the right to adjust the amount of the
improvement factor up or down as the economic conditions dictate. No
adjustments of the improvement factor shall reduce the monthly
retirement allowance or benefit below that which would be payable to
the recipient under this part had this section not been enacted.
22142. "Indexed final compensation" means final compensation upon
which a disability allowance or disability retirement allowance was
based, adjusted annually from the school year in which an allowance
begins to accrue by the rate of change in the average compensation
earnable as determined by the board.
22143. "Investment manager" and "investment adviser" mean any
person, firm, or custodian referred to in Section 22359, either
appointed by or under contract with the board to engage in investment
transactions or to manage or advise in the management of the assets
of the Teachers' Retirement Fund with respect to the Defined Benefit
Program under this part and the Cash Balance Benefit Program under
Part 14 (commencing with Section 26000).
22144. "Investment transactions" means investment services of an
asset management or investment advisory nature and may include
advisory services, research material, trading assistance, trading
expenses, discretionary management of funds of the plan upon approval
by the board, acquisition of equipment to be used as part of the
investment function, services that provide a recommended course of
action or personal expertise, investment-related legal expenses,
investment-related contracting expenses, or custodian services
referred to in Section 22359.
22144.5. "Liability gains and losses" means the difference between
actual noninvestment related experience and the experience expected
based upon a set of noninvestment related actuarial assumptions
during the period between two actuarial valuation dates, as
determined in accordance with assumptions adopted by the board
pursuant to Section 22311.5.
22145. "Local system" means any retirement system, exclusive of
this system, in which public school teachers are members, operated by
a city, county, or other political subdivision of the state.
22146. "Member" means any person, unless excluded under other
provisions of this part, who has performed creditable service as
defined in Section 22119.5 and has earned creditable compensation for
that service and has not received a refund for that service and, as
a result, is subject to the Defined Benefit Program. A member's
rights and obligations under this part with respect to the Defined
Benefit Program shall be determined by the applicability of
subdivision (a), (b), (c), or (d), and subject to any applicable
exceptions under other provisions of this part.
(a) An active member is a member who is not retired or disabled
and who earns creditable compensation during the school year.
(b) An inactive member is a member who is not retired or disabled
and who has not earned creditable compensation during the current or
preceding school year.
(c) A disabled member is a member to whom a disability allowance
is payable under Chapter 25 (commencing with Section 24001).
(d) A retired member is a member who has terminated employment and
has retired for service under the provisions of Chapter 27
(commencing with Section 24201), or has retired for disability under
the provisions of Chapter 26 (commencing with Section 24100) or
retired for service or disability under the provisions of Chapter 21
(commencing with Section 23400), and to whom a retirement allowance
is therefore payable.
22146.5. "Membership" means membership in the Defined Benefit
Program, except as otherwise specifically provided in this part.
22146.7. "Minimum interest rate" means the annual interest rate
determined by the board by plan amendment at which interest shall be
credited to Defined Benefit Supplement accounts for a plan year.
22146.7. "Minimum interest rate" means the annual interest rate
determined by the board by plan amendment at which interest shall be
credited to Defined Benefit Supplement accounts for a plan year.
22147. (a) "Month" means 20 working days or four weeks of five
working days each, including legal holidays, with respect to the
computation and crediting of service.
(b) "Month," for all other purposes, means a period commencing on
any day of a calendar month and extending through the day preceding
the corresponding day of the succeeding calendar month, if there is
any such corresponding day, and if not, through the last day of the
succeeding calendar month.
22147.5. "Nonqualified service" means any time during which a
member did not perform creditable service subject to coverage by the
plan. Nonqualified service shall not include time for which the
member is eligible to purchase credit pursuant to Chapter 14
(commencing with Section 22800), Chapter 14.2 (commencing with
Section 22820), or Chapter 14.5 (commencing with Section 22850).
22148. "Normal retirement" and "normal retirement age" mean the age
of 60 years, which is the age upon attainment of which the member
becomes eligible under the Defined Benefit Program for a service
retirement allowance without reduction because of age and without
special qualifications.
22149. "Option beneficiary" means the person designated by a member
to receive a retirement allowance under the Defined Benefit Program
upon the member's death.
22150. "Other public systems" means any of the following:
(a) Old age, survivors, disability, and health insurance program,
other than the lump-sum death payment, provided by the Social
Security Act (42 U.S.C.A. Sec. 300 and following).
(b) The federal civil service retirement program.
(c) Federal military disability.
(d) Railroad retirement.
(e) A workers' compensation program.
(f) Federal railroad retirement.
(g) Any other public retirement system, including, but not limited
to, any disability programs financed from public funds.
22151. "Overtime" means the aggregate creditable service in excess
of one year (1.000) of creditable service that is performed by a
member in a school year.
22152. "Parent" means a natural parent of a member or a parent who
adopted the member prior to his or her attainment of 18 years of age
or to the member's marriage, whichever occurs earlier.
22154. "Pay period" means a payroll period of not less than four
weeks or more than one calendar month.
22155. "Payroll" includes registers, warrants, and any other
documents upon which the employer identifies persons to whom
compensation is paid.
22155.5. "Plan" means the State Teachers' Retirement Plan.
22156. "Plan vesting," with respect to benefits payable under the
Defined Benefit Program, means the member has met the credited
service requirement for receipt of a benefit, and has a right to
receive the benefit at a future date provided all other conditions
required to receive the benefit are also met.
22156.05. "Plan year" means the period of time beginning on July 1
of one calendar year and ending on June 30 of the following calendar
year. For purposes of the Defined Benefit Supplement Program, the
board shall designate by plan amendment the initial plan year.
22156.1. "Present value," for purposes of Section 22718, means the
amount of money needed on the effective date of retirement to
reimburse the system for the actuarially determined cost of the
portion of a member's retirement allowance attributable to unused
excess sick leave days. The present value on the effective date of
retirement shall equal the number of unused excess sick leave days
divided by the number of base days, multiplied by the prior year's
compensation earnable multiplied by the present value factor.
22156.2. "Present value factor," for purposes of Section 22156.1,
means an overall average rate based upon the demographics of members
who recently retired under the Defined Benefit Program and regular
interest that shall determine present value on the effective date of
retirement.
22156.5. "Prior year's compensation earnable" means the
compensation earnable for the most recent school year in which the
member earned service credit that precedes the last school year in
which the member earned service credit.
22157. "Projected final compensation" means the final compensation
used in computing the disability or family allowance increased by 2
percent, compounded annually to the earlier of normal retirement age
or the date the disability allowance is terminated.
22158. (a) "Projected service" means the sum of credited service
plus the credited service that would have been earned for the school
years during which a disability allowance was payable if the member
had performed creditable service during that time.
(b) Projected service for a school year shall be determined on the
basis of the highest credited service earned by the member during
any one of the three school years immediately preceding the member's
death or the date the disability allowance began to accrue.
(c) Projected service shall not include credited service for which
contributions have been credited to the Defined Benefit Supplement
Program.
22159. "Proof of death" means providing to the system any evidence
of death required by the system.
22160. "Provisional vesting" means the member has reached the
minimum age requirement and has attained the credited service
required under the Defined Benefit Program for eligibility to receive
a retirement allowance, and the member is entitled to terminate
employment and retire at any time to receive a retirement allowance.
22161. "Public school" means any day or evening elementary school,
any day or evening secondary school, community college, technical
school, kindergarten school, and prekindergarten school established
by the Legislature, or by municipal or district authority.
22161.5. "Refund" means the lump-sum return of a member's
accumulated retirement contributions under the Defined Benefit
Program and does not include the balance of credits in the member's
Defined Benefit Supplement account.
22162. "Regular interest" means interest that is equal to the
actuarially assumed rate of return on investments on assets of the
Defined Benefit Program. The regular interest rate shall be adopted
annually by the board as a plan amendment with respect to the Defined
Benefit Program.
This section shall become operative on July 1, 2010.
22162.5. "Regular meeting" means a meeting of the board held in
accordance with a schedule of meetings that states the dates and
places of the meetings and that is adopted by the board.
22163. "Reinstatement" means the change in status with respect to
the Defined Benefit Program under this part from a disabled or
retired member to an active or inactive member and termination of one
of the following:
(a) A service retirement allowance pursuant to Section 24208.
(b) A disability retirement allowance pursuant to Section 24117.
(c) A disability allowance pursuant to Section 24004, 24006, or
24015.
(d) A service retirement allowance or disability retirement
allowance pursuant to Section 23404.
22164. "Replacement benefits program" means the program established
pursuant to Chapter 27.5 (commencing with Section 24250) in
compliance with the provisions of Section 415(m) of the Internal
Revenue Code of 1986 (26 U.S.C. Sec. 415(m)) as applicable to a
governmental plan, as defined in Section 414(d) of the Internal
Revenue Code of 1986 (26 U.S.C. Sec. 414(d)).
22165. "Retirement" means termination of employment subject to
coverage by the plan and a change in status from an inactive member,
an active member, or a disabled member to a retired member.
22166. "Retirement allowance" means the amount payable to a retired
member or an option beneficiary on a monthly basis.
22166.5. "Retirement benefit" means the amount payable under the
Defined Benefit Supplement Program, based on the balance of credits
in the member's Defined Benefit Supplement account, to a member who
has retired for service under the Defined Benefit Program.
22167. "Retirement fund" means the Teachers' Retirement Fund.
22168. "Return on investments" means income received or receivable
from the system's investments.
22169. "School year" means the fiscal year or the academic year.
22170. "Service" means work performed for compensation in a
position subject to coverage under the Defined Benefit Program,
except as otherwise specifically provided in this part, providing the
contributions on compensation for that work are not credited to the
Defined Benefit Supplement Program.
22170.5. (a) "Sick leave days" means the number of days of
accumulated and unused leave of absence for illness or injury.
(b) "Basic sick leave day" means the equivalent of one day's paid
leave of absence per pay period due to illness or injury.
(c) "Excess sick leave days" means the day or total number of
days, granted by an employer in a pay period as defined in Section
22154 after June 30, 1986, for paid leave of absence due to illness
or injury, in excess of a basic sick leave day.
22171. (a) "Spouse" means a person who was continuously married to
the member for the period beginning at least 12 months prior to the
death of the member, unless a child is born to the member and his or
her spouse within