26300-26306

EDUCATION CODE
SECTION 26300-26306




26300.  (a) Within 10 working days following the later of the first
day of employment, the date of the employer's governing board's
action to provide the Cash Balance Benefit Program, or the effective
date of the employer's governing board's action to provide the Cash
Balance Benefit Program, the employer shall make available to the
employee the following information:
   (1) The employee's rights and responsibilities as a participant in
the program, the employer's responsibilities under the program, and
the benefits payable under the program.
   (2) The employee's right to elect membership in the Defined
Benefit Program in lieu of participation in the Cash Balance Benefit
Program, the rights and responsibilities of a member and the employer
under the Defined Benefit Program, and benefits payable under the
Defined Benefit Program.
   (b) Written acknowledgment by the employee that he or she has
received the information specified in subdivision (a) shall be
retained in the employer's files on a form prescribed by the system.
   (c) If an employer's governing board's action to provide the Cash
Balance Benefit Program gives employees the right to elect other
coverage in lieu of the Cash Balance Benefit Program pursuant to
Section 26400, the employer shall, within 10 working days following
the later of the first day on which creditable service is performed,
the date of the employer's governing board's action to provide the
program or the effective date of the employer's governing board's
action to provide the program, notify existing employees of the
following:
   (1) The employee's right to elect other coverage if offered by the
employer in lieu of participation in the Cash Balance Benefit
Program.
   (2) The rights and responsibilities of the employer and a
participant in an alternative retirement plan if offered by the
employer.
   (3) The benefits payable under an alternative retirement plan if
offered by the employer.



26301.  (a) Employers shall report contributions paid on behalf of
each participant in each pay period, along with all other information
required by the system no later than 10 working days following the
last day of the pay period in which the salary was earned, and the
report shall be delinquent immediately thereafter. That report shall
be submitted electronically in an encrypted format provided by the
system that ensures the security of the transmitted participant data.
   (b) The board shall, in accordance with regulations, assess a
penalty against the employer for a report submitted late or in an
unacceptable form. The penalty shall be based upon the sum of the
employee and employer contributions required to be reported under
this part at a rate of interest equal to the regular interest rate,
accruing on the balance for the period between the time the report
was due and the time an acceptable report is actually received by the
system, or a fee of five hundred dollars ($500), whichever is
greater.


26301.5.  Each employer shall deduct from the salary of participants
employed by the employer the participant contributions required by
this part and shall remit to the system those contributions plus the
employer contributions required by this part and Section 44987.



26302.  If more or less than the contributions required by this part
are paid to the plan based on salary paid to a participant, proper
adjustment shall be made by the employer within 60 days of discovery
or of notification by the system, and any contributions deducted in
error from the participant's salary shall be returned to the
participant by the employer within the same time period.



26303.  (a) Employers shall transmit to the plan the employee
contributions and employer contributions with respect to the Cash
Balance Benefit Program for salary paid to each participant during
the pay period no later than 10 working days following the last day
of the pay period in which the salary was earned.
   (b) Payments shall be delinquent on the 11th working day
thereafter, and interest shall begin to accrue at the regular
interest rate from that day until payment for the contributions and
interest is received in full by the system. The board shall collect
interest for late payment from the employer under this subdivision.



26303.5.  A person or entity that reports directly to the system
that is assessed a penalty or interest pursuant to Section 26301 or
26303 may appeal the assessed penalty or interest using the appeals
process established pursuant to Section 22219.




26304.  An employer shall provide timely notice to the system of the
employment, death, or termination of employment of a participant.



26305.  Upon request of the system, an employer shall provide the
system with information regarding the salary paid or to be paid to
employees subject to coverage by the Cash Balance Benefit Program in
a plan year. The information may include, but shall not be limited
to, employment contracts, salary schedules, and minutes from meetings
conducted by the governing board of the employer.



26306.  (a) Upon request by the system, a participant or beneficiary
with respect to the Cash Balance Benefit Program shall provide to
the system any information affecting his or her status as a
participant or beneficiary.
   (b) Upon request by the system, the participant shall provide
proof of his or her date of birth.
   (c) A participant who has not contributed to the Cash Balance
Benefit Program during the immediately preceding plan year shall
provide the system with his or her current mailing address and
beneficiary information.