Every teacher and every other employee of the school districts for which the plan for district retirement is adopted, who is employed by the districts at the time of the adoption of the plan, and who signs an agreement to be subject to the burdens of the district retirement plan, shall be entitled to the benefits and subject to the burdens of the plan and of this chapter. Every teacher employed in the public schools of the districts after the adoption of the provisions of this chapter by the governing boards of the districts, and any other employees the boards or the petition determines, shall be bound by the benefits and burdens of this chapter.
Article 2Administration of the Plan
Section § 24920
This law says that any teacher or school employee working when a district's retirement plan is adopted, or hired afterward, must agree to the terms of the plan. They will receive benefits but also have responsibilities under the plan. This applies to all current and future district employees as decided by the school boards or petitions.
teacher retirement plan school district employees agreement to retirement benefits district retirement plan governing boards public school employees future employees retirement benefits employment agreement district retirement obligations benefits and burdens retirement plan adoption school board decision employee responsibilities
Section § 24921
This section says that before adopting a retirement plan, school district boards must ensure the contributions made by both teachers and the district align with common contribution rates found in other public retirement systems. Additionally, they must verify the plan follows good business practices and trusted actuarial methods, which are ways of assessing financial risks in insurance and finance.
Any plan shall not be adopted or established until the governing boards, after any inquiry and hearing they may direct, find that the respective contributions of the teachers and other employees and the districts provided for in the plan, are substantially in accordance with the more recent generally prevailing rates of contributions in public institutions that have established retirement systems, and that the plan is in accordance with sound business practice and with recognized actuarial methods.
retirement plan governing boards contribution rates teachers school districts public institutions retirement systems sound business practice actuarial methods financial assessment
Section § 24922
This law explains how retirement salaries for teachers and other eligible employees in the district can be determined. Retirement benefits might be a fixed monthly amount or based on the employee's salary and years of service. An important note is that employees must have at least 15 years of service in the district to qualify for minimum benefits. Additionally, retirement benefits will not be calculated on any salary amount over $500 per month.
The plan may provide that the retirement salary shall be a stipulated monthly sum, or that all benefits under the retirement feature of the plan shall be based upon the monthly salary for each year of future active service in the district earned by the employee up to the date of retirement and upon the average monthly salary earned by the teacher or other eligible employee during the year immediately preceding the adoption of the plan and the number of years of past active service of the employee in the district, and subject to those provisions made in the plan for minimum benefits. No employee with less than 15 years’ service in the district prior to normal retirement age shall receive the benefit of the minimum. In no instance shall the retirement benefits be based upon or allowed for any amount of salary in excess of the sum of five hundred dollars ($500) per month.
retirement salary stipulated monthly sum benefits calculation future active service minimum benefits provision 15 years’ service requirement teacher salary eligible employee average monthly salary past active service salary cap $500 per month limit district employment retirement age conditions service in the district
Section § 24923
This law allows for a retirement plan that bases a teacher's retirement salary on service done before July 1, 1944, or before the plan starts. The retirement payment must be at least $100 monthly when combined with what a member gets from the State Teachers’ Retirement System. The cost of this plan can be covered solely by school district contributions, and it only applies to teachers with service credits before the specified date. Other sections don't apply to this plan.
In lieu of the authorizations or requirements provided for in Sections 24920 and 24922, the plan may provide only that the retirement salary shall be based on service rendered prior to the effective date of the plan or prior to July 1, 1944, and shall be an amount which, when added to the retirement allowance the respective member is entitled to receive under the State Teachers’ Retirement System, shall equal a sum of not less than one hundred dollars ($100) per month and Sections 24920 and 24922 shall not be applicable thereto. The costs of the benefits under such a plan may be met by the contributions of the districts alone, notwithstanding Sections 35161, 35162, Article 1 (commencing with Section 7000) of Chapter 1 of Part 5, Article 2 (commencing with Section 10010) of Chapter 1 of Part 7, Article 1 (commencing with Section 12500) of Chapter 5 of Part 8, this part, Article 5 (commencing with Section 32340) of Chapter 3 of Part 19, and Part 25 (commencing with Section 44000), and only teachers who have credit for service rendered prior to that date shall be subject to the plan.
retirement salary service before July 1 1944 State Teachers’ Retirement System district contributions minimum monthly sum retirement plan conditions teacher retirement benefits
Section § 24924
This law talks about what happens if a school district decides to stop a certain retirement plan that was for services before July 1, 1944. If the plan stops, teachers who aren't retired by July 1, 1956, get back their contributions with interest. Retired teachers before that date get a refund based on their contributions. Districts must keep paying retired teachers any difference in retirement payments, with options for single or monthly payments. Additionally, retired teachers before July 1, 1956, can change their retirement option to benefit their family within 60 days of July 5, 1956. If any money remains in the local retirement fund after discontinuing the plan, it moves to the school's general fund, covering ongoing costs from the plan.
(a)CA Education Code § 24924(a) A plan established under this chapter that is intended to provide supplemental benefits only on account of service rendered before July 1, 1944, may be discontinued by the governing board of the district, subject to the following conditions:
(1)CA Education Code § 24924(a)(1) Notwithstanding Sections 35161, 35162, Article 1 (commencing with Section 7000) of Chapter 1, Article 2 (commencing with Section 10010) of Chapter 1 of Part 7, Article 1 (commencing with Section 12500) of Chapter 5 of Part 8, this part, Article 5 (commencing with Section 32340) of Chapter 3 of Part 19, and Part 25 (commencing with Section 44000), any teacher who is not retired on July 1, 1956, shall be entitled to the contributions made by him or her to the discontinued plan with interest credited in accordance with the rules and regulations of the local retirement plan up to and including June 30, 1957. Likewise, a teacher who retired prior to July 1, 1956, shall be entitled to a refund equal to the actuarial equivalent, at his or her attained age, of the annuity that would have been provided by the total contributions required of the member under the system, based on interest and mortality tables currently in use, less the amount of any contributions remaining unpaid on the date of discontinuance. The amount to which any teacher is entitled under this section shall be paid to him or her within 90 days of his or her request in writing on a form provided by and filed with the local retirement system. All requests shall be filed prior to July 1, 1959.
(2)CA Education Code § 24924(a)(2) The district in which the plan is discontinued shall pay monthly to teachers, who were retired prior to the date of the discontinuance, an amount equal to the amount by which the retirement allowance to which any of these retired teachers was entitled under the plan exceeds the increase in the teacher’s retirement allowance under the State Teachers’ Retirement System after the discontinuance. In lieu of the monthly payment, the district may elect to pay in a single sum the amount that shall be the actuarial equivalent to the monthly amount thereafter payable, according to the interest rate and mortality table currently in use under the plan. Payment of the amount shall discharge fully the district’s liability to the teacher under this subdivision. The arrangement under which the amounts are paid by the district shall not be considered to be a local retirement system for the purposes of Chapter 1 (commencing with Section 22000) to Chapter 31 (commencing with Section 24600), inclusive, nor shall the amount be taken into account in the calculation of the retirement allowances under the State Teachers’ Retirement System.
(b)CA Education Code § 24924(b) Any person who was retired prior to July 1, 1956, from a position requisite for membership in the State Teachers’ Retirement System, under a district supplemental retirement salary plan which has been discontinued pursuant to this section, and elected either under the plan or under the system, but not under both, to have a portion of his or her retirement allowance modified according to an option under which he or she would receive a smaller allowance and provide for a benefit for his or her beneficiary, that person shall have the right, to be exercised not later than 60 days after July 5, 1956, to change his or her election under the State Teachers’ Retirement System with respect to those options. Any computations of actuarial equivalents under a changed election shall be made as of the effective date, and no adjustment shall be included in the computation on account of retirement allowance payments made prior to that date.
(c)CA Education Code § 24924(c) When any local retirement plan is discontinued under this section, all funds remaining in the district retirement fund of the local system shall be transferred to the general fund of the school district in which the plan is discontinued. Thereafter any payments to meet continuing obligations of the district arising from the establishment or discontinuance of the plan shall be paid from the general fund of the district.
supplemental retirement plans service before July 1 1944 teacher contributions retirement allowance difference actuarial equivalent local retirement system discontinued retirement plan interest rate mortality table general fund transfer unpaid contributions district liability retirement option change State Teachers’ Retirement System district retirement fund
Section § 24925
This law requires that governing boards review their plans every five years or less, using surveys and actuarial reports. Based on these reviews, they should update the plans as needed to adapt to changes or insights they gain over time.
The governing boards, after the adoption of the plan, shall at regular intervals, each not exceeding a period of five years, secure a general survey and actuarial report of the plan, and the boards shall from time to time amend the plan in any manner found to be advisable to meet changed conditions, or, in the light of experience, considered necessary.
governing boards plan adoption general survey actuarial report five-year review plan amendment changed conditions experience insights regular intervals update requirements review frequency plan evaluation advisable amendments secure survey conditions adaptation
Section § 24926
This law allows school districts to create a retirement payment plan for employees who retire within 15 years of establishing the plan. The payments will aim to match the difference between what they earned and what new employees in their position earn, over the retiree's expected lifetime. It must follow sound business and actuarial practices.
A plan under which the districts establishing it agree to pay to employees who become entitled to retirement salaries within a specified period, not exceeding 15 years, after the establishment of the plan, a specified sum that, during the life expectancy of the employees, will be approximately equal, in the aggregate, to the aggregate difference, during the life expectancy, between the maximum salary paid to employees in the respective classes of the retiring employees, and the salaries paid to beginning employees in the classes, shall be construed to comply with the provisions of this chapter requiring the plan to be in accordance with sound business practices and recognized actuarial methods.
retirement payment plan school districts retirement salaries specified period 15 years life expectancy maximum salary beginning employees business practices actuarial methods
Section § 24927
This law allows school districts to collect additional taxes each year specifically to fund payments required by joint district retirement plans. These taxes are separate from other district taxes and are not subject to the usual limits on tax rates for school or community college districts.
For the purpose of providing funds that may be necessary to make the payments required by any joint district retirement plan, district taxes shall be levied and collected annually by the respective districts at the same time and in the same manner as other district taxes are levied and collected. The tax shall be in addition to any other district tax now or hereafter authorized by law, and shall not be considered in fixing maximum rates of tax for school district or community college district purposes.
joint district retirement plan district taxes annual levy fund payments retirement funding additional taxes tax collection method school district community college district maximum tax rates
Section § 24928
This law states that teachers and employees in certain districts can qualify for retirement benefits if they have worked for the district for at least 20 years right before retiring, and are at least 55 years old.
Every joint district retirement plan shall provide that only those teachers and other employees who have served as teachers or employees of the districts for at least 20 years of service immediately preceding retirement, and who have reached a minimum age specified in the joint district retirement plan, which shall not be less than 55 years, shall be entitled to a district retirement salary.
joint district retirement plan retirement benefits eligibility teachers retirement service requirement district employees 20 years of service minimum retirement age eligibility criteria retirement salary age requirement 55
Section § 24929
This law allows for a retirement plan where teachers or other employees can retire early due to disability if they have worked for at least 10 years right before retirement. The plan will detail how the disability retirement pay compares to regular retirement pay.
The plan may provide for the retirement of teachers or other employees on account of disability after 10 years of service immediately prior to the retirement, the proportion of the disability retirement salary to the full retirement salary to be specified in the plan.
disability retirement teachers retirement employee retirement 10 years of service early retirement retirement salary disability pay retirement plan employment service requirement full retirement salary disability criteria retirement eligibility public school employees salary proportion retirement conditions
Section § 24930
If you take an approved leave of absence from your job at a school district, it won't disrupt your continuous service record for retirement purposes. However, the time you are on leave won't count towards your retirement unless it's counted under specific retirement rules for teachers in the state.
Absence from service by reason of a leave of absence granted by the governing board of an employing district shall not be construed as a break in the continuity of service or by any district retirement plan adopted pursuant to the provisions hereof, but the period of leave shall not be counted as time served toward retirement unless the period is so counted under the State Teachers Retirement Act.
leave of absence continuity of service retirement plan school district employees State Teachers Retirement Act period of leave retirement eligibility employment continuity absence from service governing board approval employment district service disruption retirement credit teacher retirement rules district retirement plan
Section § 24931
This law states that teachers or other employees can combine their years of service into whole years if they have made payments for the entire period they're counting.
Time of service may be counted in the aggregate and fractions of years amounting to whole years may be counted as whole years when payments by the teacher or other employee have been made for all of the time counted.
teacher service aggregate service fractions of years whole years employee payments service time calculation education employment service credit aggregation pension contribution retirement benefits employment tenure service period payments years of service calculation educational employees pension eligibility
Section § 24932
This law section states that the school district boards are responsible for deciding which teachers and other staff qualify for retirement benefits. They must make and maintain a list of these retirees, called the 'retired list.' To create this list, the boards can gather information and question witnesses under oath.
The governing boards of the districts shall in all cases determine the teachers and other employees who are entitled to retirement salaries, and make and keep a list of the teachers and other employees, known as the retired list. For the purpose of making the retired list the boards may take testimony and examine witnesses under oath, which may be administered by any member of the board.
retirement salaries governing boards retired list testimony witness examination retirement benefits eligibility school district boards teacher retirement staff retirement retirement determination retired employees
Section § 24933
This law allows the boards in charge of school districts to create rules and regulations needed to implement and manage the guidelines of this chapter.
The governing boards of the districts may make all necessary and proper rules and regulations in aid or furtherance of the provisions of this chapter and in order to carry out and administer the provisions.
governing boards school districts rules and regulations implementation administration guidelines provisions aid furtherance management
Section § 24934
This law establishes that when multiple school districts create a joint retirement plan, a special trust fund named the "joint district retirement fund" must be set up in a county treasury. The counties involved choose which treasury holds the fund. All money related to the retirement plan, whether from employees, districts, or other sources, goes into this fund. Expenses needed to manage the retirement plan can be paid from this fund, following the usual process for district expenses.
When a joint district retirement plan is established there shall be created in the treasury of the county in which the districts are located, or, if the districts are located in more than one county, in the treasury of the county selected by the governing boards of the districts meeting in joint session, and open upon the books of the auditor and treasurer of the county, a trust fund account designated as the “joint district retirement fund.” All moneys, whether from contributions by teachers or other employees, or by the districts, or from any source, properly belonging to the joint district retirement fund shall be placed in the fund. Upon approval of the joint district retirement board all incidental expenses, including actual and necessary clerical or other help, incurred in carrying out the provisions of this chapter shall be paid out of the fund and in the same manner as other expenditures are paid from district funds.
joint district retirement plan trust fund account county treasury joint district retirement fund teacher contributions employee contributions district contributions incidental expenses retirement plan management audit and treasurer records governing boards joint session expenditure process clerical help retirement fund
Section § 24935
If you're on a governing board, you have to do your job without getting any extra pay. This includes fulfilling your role and responsibilities as outlined in this section.
Members of governing boards shall discharge the powers, duties, purposes, responsibilities, and jurisdiction conferred or imposed upon the governing boards under this chapter without extra or additional compensation.
governing boards extra compensation duties responsibilities jurisdiction no additional pay board members public service discharge powers non-paid duties
Section § 24936
Districts that set up a retirement plan must manage it through a joint board. This board includes at least three external members, representatives from each district, and representatives chosen by teachers and other employees through a secret ballot. The county treasurer is also a member. Members serve without pay and have designated terms and duties decided by the districts' governing boards.
The governing boards of the districts establishing the retirement plan shall provide for the administration of the funds and the payment of retirement salaries by a joint district retirement board composed of three persons not officers or employees of any of the districts, one representative of each district, one representative of the teachers of each district and one representative of the other employees of each district, who shall serve without compensation. The representatives chosen by the teachers and other employees shall be chosen by secret ballot. The county treasurer of the county in the county treasury of which the joint district retirement fund is created shall be ex officio a member of the joint district retirement board. All members of the retirement board shall serve for such terms as may be specified by the governing boards in establishing a plan. The joint district retirement board shall have such further powers and duties as may be prescribed by the governing boards of the districts.
retirement plan administration joint district retirement board secret ballot election representatives of teachers employee representatives county treasurer district governing boards administration of funds retirement salaries non-employee board members
Section § 24937
This section outlines the responsibilities of the joint district retirement board in managing a district's retirement fund. They are in charge of handling all the retirement payments and are tasked with investing the fund's money in appropriate securities, similar to those investments made by savings banks. Additionally, the board must collect any income generated from these investments and deposit it back into the retirement fund. All decisions regarding the investments or sales of securities require the board's approval during their meetings.
(a)CA Education Code § 24937(a) The joint district retirement board shall have charge and control of the district retirement fund of the district and of the payment of all retirement salaries and annuities payable from the fund. The joint district retirement board shall invest the funds in securities that are legal for the investment of funds of savings banks in this state and shall sell the securities and reinvest the proceeds in securities legal for investment of funds of savings banks when in the judgment of the joint district retirement board the sale and reinvestment is advisable. No investment in or sale of securities shall be made except upon authorization of the joint district retirement board at a meeting of the board.
(b)CA Education Code § 24937(b) The board also shall collect the income from the securities and pay it into the joint district retirement fund.
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Section § 24938
This law says that the joint district retirement board can file a lawsuit in its own name if needed to fulfill its responsibilities. Additionally, the district attorney or the county counsel from the county with the most employees in the retirement plan will represent the board, and they won't get extra pay for doing so.
The joint district retirement board may sue in its own name when necessary to carry out the powers and duties conferred upon it. The district attorney, or, if there is a county counsel, the county counsel of the county in which are employed the largest number of employees entitled to the benefits and subject to the burdens of the joint district retirement plan shall act as attorney for the joint district retirement board without additional compensation.
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Section § 24939
When the joint district retirement board buys any financial instruments like stocks or bonds, they must be stored with the county treasurer for protection.
All securities purchased by the joint district retirement board shall be deposited with the county treasurer for safekeeping.
securities joint district retirement board county treasurer financial instruments safekeeping stocks bonds deposited storage retirement board joint district purchased securities
Section § 24940
This law states how payments are to be handled from a joint district retirement fund in California. Payments must be processed in the same way as other school district payments but need to be approved by the joint district retirement board. Also, any checks (or warrants) must have the signature of at least one designated board member. Additionally, the county treasurer has specific duties related to this fund, and they are responsible for these duties as part of their official role, backed by their official bond.
(a)CA Education Code § 24940(a) All payments from the joint district retirement fund shall be made in the same manner as payments from school district funds but shall be subject to approval of the joint district retirement board. Warrants drawn on the fund shall be signed by at least one member of the joint district retirement board who shall be designated by the board.
(b)CA Education Code § 24940(b) The duties imposed upon the county treasurer shall be a part of his or her official duties, for the faithful performance of which he or she shall be liable upon his or her official bond.
joint district retirement fund school district payments retirement board approval warrant signatures county treasurer duties official bond liability payments processing designated board member financial oversight retirement fund management
Section § 24941
This law requires that the county auditor must review and report on the finances of the joint district retirement board every year. They need to provide a financial health update to the governing bodies of the districts involved.
The county auditor of the county in the county treasury of which the “joint district retirement fund” is created shall audit the accounts of the joint district retirement board at least once every 12 months and report upon the financial condition thereof to the governing boards of the districts.
county auditor joint district retirement fund audit financial condition annual report governing boards districts financial review retirement board financial audit treasury 12 months financial health audit frequency account review
Section § 24942
This law says that a person can receive retirement salaries from this chapter in addition to any other retirement salaries they might already be getting from other specified sections or laws. In simple terms, it allows for multiple sources of retirement pay without one affecting the other.
The retirement salaries provided for in this chapter shall be in addition to any other retirement salaries received by any person under Chapter 1 (commencing with Section 22000) to Chapter 31 (commencing with Section 24600), inclusive, or as may be otherwise provided by law.
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Section § 24943
This section means that any retirement pay given to employees according to this chapter is extra. It doesn't replace or reduce any other retirement benefits they might get under different laws.
The retirement salaries provided for in this chapter for all other employees, shall be in addition to any other retirement salaries that may be provided by law.
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Section § 24944
This law states that if two or more school district governing boards must or are allowed to do something together, they can only make decisions at joint meetings. Any action requires a majority vote from each board involved.
Whenever by the provisions of this chapter, the governing boards of two or more school districts are required, or authorized, to perform any act, the act may be done only at joint meetings of the boards, and no action shall be taken by the boards except upon the affirmative vote of a majority of the members of a majority of the boards.
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