26100-26145
EDUCATION CODE
SECTION 26100-26145
26100. Unless otherwise specified, the definitions set forth in this chapter govern the construction of this part. 26101. "Actuarial equivalent" means a benefit that has the same present value as the benefit it replaces based on interest rates and mortality tables recommended by the actuary and adopted by the board as a plan amendment. 26102. "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. 26103. "Additional earnings credit" means a percentage determined by the board for a plan year by means of a plan amendment and credited to employee accounts and employer accounts on a specified date. 26104. "Administrative costs" means the costs of administering the Cash Balance Benefit Program for the plan year as determined by the board. 26105. "Annuitant Reserve" means the reserve account established by the board within the State Teachers' Retirement Fund for the payment of monthly annuities with respect to the Cash Balance Benefit Program. 26106. "Annuity" means an amount of money payable in monthly installments for a period determined by the option elected by the participant or beneficiary. 26107. "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. 26108. "Beneficiary" means any person or persons or entity designated by the participant pursuant to this part or otherwise entitled by law to receive the death benefit under the plan. 26109. "Board" means the Teachers' Retirement Board. 26112. "Cash Balance Benefit Program" means the benefit program set forth in this part of the State Teachers' Retirement Law. 26112.5. (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) This section shall be deemed to have become operative on July 1, 1996. 26113. (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 occupational 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 county and district superintendents and other employees who are responsible for the supervision of persons or administration of the duties described in this section. (10) Trustee service as described in Section 26403. (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 activities not already specified. 26114. "Death benefit" means the benefit payable under this part upon the death of the participant. 26115. "Defined Benefit Program" means the Defined Benefit Program of the State Teachers' Retirement Plan as set forth in Part 13 (commencing with Section 22000). 26116. "Disability benefit" means an amount payable under this part for permanent and total disability that is equal to the sum of the participant's employee account and employer account as of the disability date and is payable pursuant to Section 26905, 26906, or 26906.5. 26117. "Disability date" means the date the benefit becomes payable to a participant who has applied for a disability benefit from the plan under this part and has been determined to have a total and permanent disability. 26118. "Employee" means a person engaged to perform creditable service. 26119. "Employee account" means the nominal account of the participant to which employee contributions and interest and any additional earnings credits in respect thereof are credited under the Cash Balance Benefit Program. 26120. "Employee contribution rate" means the percentage of the participant's salary withheld by the employer as an employee contribution under the Cash Balance Benefit Program. 26121. "Employee contribution" means the amount withheld from the participant's salary by the employer as a contribution by the employee under the Cash Balance Benefit Program. 26122. "Employer" means a school district, community college district, or county office of education that has elected to provide the benefits of this part to persons employed to perform creditable service. "Employer" shall not include the state. 26123. "Employer account" means the nominal account of the participant in which employer contributions on behalf of the participant and interest and any additional earnings credits in respect thereof are credited under the Cash Balance Benefit Program. 26124. "Employer contribution rate" means the percentage of salary that determines the amount the employer contributes to the Cash Balance Benefit Program with respect to each employee who is a participant. 26125. "Employer contribution" means the amount contributed by the employer to the Cash Balance Benefit Program with respect to the participant. 26126. "Employed" or "employment" means employed to perform creditable service subject to coverage under the Cash Balance Benefit Program. 26127. "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, as defined by Section 22138.5, in that position. 26128. "Fund" means the Teachers' Retirement Fund. 26129. "Gain and Loss Reserve" means the reserve account established by the board within the fund with respect to the Cash Balance Benefit Program to be drawn upon to the extent necessary to credit interest to employee accounts and employer accounts at the minimum interest rate during years in which the plan's investment earnings with respect to the Cash Balance Benefit Program are not sufficient for that purpose, and where necessary, to provide additions to the Annuitant Reserve for monthly annuity payments. 26130. "Investment earnings" means income received or receivable during the plan year by the plan from investment of employee contributions, employer contributions, and prior investment earnings. 26131. "Minimum interest rate" means the annual rate determined for the plan year by the board by means of an amendment to the plan with respect to the Cash Balance Benefit Program in accordance with applicable federal laws and regulations. 26132. "Participant" means a person who has performed creditable service subject to coverage by the Cash Balance Benefit Program, and who has contributions credited under the Cash Balance Benefit Program or is receiving an annuity under the Cash Balance Benefit Program by reason of creditable service. 26133. "Pay period" means a payroll period specified by the employer but not more than 31 calendar days. 26134. "Plan" means the State Teachers' Retirement Plan. 26135. "Plan year" means the calendar, policy, or fiscal year on which the records of the plan are kept, with respect to the Cash Balance Benefit Program. The board by means of plan amendment shall determine the plan year. 26136. "Retirement" means termination of employment and completion of all conditions precedent to receiving a retirement benefit under the Cash Balance Benefit Program. 26137. "Retirement benefit" means an amount payable under this part in the event of the participant's retirement for service that is equal to the sum of the participant's employee account and employer account as of the retirement date and that is payable pursuant to Section 26806, 26807, or 26807.5. 26138. "Retirement date" means the date the benefit under this part becomes payable to a participant who has applied for a retirement benefit from the plan under this part. 26139. (a) "Salary" means remuneration payable in cash by an employer to a participant for creditable service subject to coverage under the Cash Balance Benefit Program. Salary shall include: (1) Money paid in accordance with a salary schedule based on years of training and years of experience as specified in Section 45028 for creditable service performed. (2) For participants not paid according to a salary schedule, money paid for creditable service performed. (3) Money paid for the participant's absence from performance of creditable service as approved by an employer, except as provided in paragraph (5) of subdivision (b). (4) Employee contributions picked up by an employer under Section 414(h)(2) of Title 26 of the United States Code and Section 17501 of the Revenue and Taxation Code. (5) Amounts deducted by an employer from the participant's salary, including deductions for participation in a deferred compensation plan; deductions for the purchase of annuity contracts, tax-deferred retirement plans, or other insurance programs; and deductions for participation in a plan that meets the requirements of Section 125, 401(k), or 403(b) of Title 26 of the United States Code. (6) Money paid by an employer in addition to salary paid under paragraph (1) or (2) if paid to all employees in a class in the same dollar amount, the same percentage of salary, or the same percentage of the amount being distributed. (7) Any other payments the board determines by plan amendment to be "salary." (b) "Salary" does not mean and shall not include: (1) Money paid for service that is not creditable service. (2) Money paid by an employer in addition to salary paid under paragraph (1) or (2) if not paid to all employees in a class in the same dollar amount, the same percentage of salary, or the same percentage of the amount being distributed. (3) Fringe benefits provided by an employer. (4) Job-related expenses paid or reimbursed by an employer. (5) Money paid for unused accumulated leave. (6) Compensatory damages or money paid to a participant in excess of salary as a compromise settlement or as severance pay. (7) Annuity contracts, tax-deferred retirement programs, or other insurance programs, including, but not limited to, plans that meet the requirements of Section 125, 401(k), or 403(b) of Title 26 of the United States Code that are purchased by an employer for a participant. (8) Any payments determined by the board to have been made by an employer for the principal purpose of enhancing a participant's benefits under the plan. (9) Any other payments the board determines by plan amendment not to be "salary." (c) Any employer or person who knowingly or willfully reports salary in a manner inconsistent with the provisions of subdivisions (a) or (b) shall reimburse the plan for any overpayment of benefits that occurs because of such inconsistent reporting and may be subject to prosecution for fraud, theft, or embezzlement in accordance with provisions of the Penal Code. The system may establish procedures to ensure that salary reported by an employer is in compliance with this section. (d) This section shall be deemed to have become operative on July 1, 1996. 26140. (a) "Spouse" means the person married to the participant on the date the participant files a beneficiary designation, or an application for a benefit, or on the date of the participant's death. (b) Except as excluded in Sections 26004 and 27406, a person who is the registered domestic partner of the participant, as established pursuant to Section 297 or 299.2 of the Family Code, on the date the participant files a beneficiary designation or an application for a benefit, or on the date of the participant's death, shall be treated in the same manner as a spouse. 26142. "System" means the State Teachers' Retirement System. 26143. "Termination benefit" means a benefit that is an amount equal to the sum of the participant's employee account and employer account payable under this part pursuant to the provisions of Chapter 13 (commencing with Section 27200). 26144. "Total and permanent disability" means any medically determinable physical or mental incapacity that is expected to prevent the participant from performing creditable service under this part for the employer for a continuous period of at least one year. 26144.5. "Trustee service" means duties performed by a member of the governing body of an employer. 26145. "Unfunded actuarial obligation" means any negative balance in the Gain and Loss Reserve.