Eligibility - State Teachers’ Retirement System Cash Benefit Program - CA Education

Section § 26400

This law explains how employees that are not already part of the Defined Benefit Program can join the Cash Balance Benefit Program when they perform creditable service. There are certain conditions for eligibility, such as working part-time or temporarily at a community college. People can also choose instead to be covered by Social Security or another retirement plan if offered by their employer, but they must decide within 60 days and fill out the proper forms. It also allows for changing coverage to Social Security later under specific circumstances. Importantly, an election to a different plan doesn’t prevent an employee from opting back into the Cash Balance Benefit Program later if they qualify again.

(a)

(1) Any person who is not already a member of the Defined Benefit Program and who is employed to perform creditable service by an employer that provides the Cash Balance Benefit Program shall become a participant in the Cash Balance Benefit Program for creditable service performed for that employer if the person is not excluded from participation pursuant to Section 22601 and all employment to perform creditable service for that employer meets either of the following conditions:

(A) The person is employed by an employer, excluding a community college district, to perform creditable service on a part-time basis for less than 50 percent of the time the employer requires for the full-time position, or on a substitute, part-time hourly or part-time daily basis.

(B) The person is employed by a community college district to perform creditable service on a temporary basis pursuant to Section 87474, 87478, 87480, 87481, 87482, or 87482.5.

(2) Participation shall begin as of the first day of employment or the effective date of the employer’s governing board’s action to provide the Cash Balance Benefit Program, whichever is later.

(b) If the employer’s governing board’s action to provide the Cash Balance Benefit Program gives employees the right to elect coverage by the federal Social Security Act or an alternative retirement plan offered by the employer in addition to the Cash Balance Benefit Program, the employee may elect coverage by the federal Social Security Act or the alternative retirement plan in lieu of participating in the Cash Balance Benefit Program.

(1) The election shall be made in writing on a properly executed form prescribed by the system and filed with the employer within 60 calendar days after the first day of employment, or 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, whichever occurs later.

(2) The election form shall be received at the system’s headquarters office within 60 calendar days after the date of the employee’s signature. The employer shall retain a copy of the signed election form.

(3) The election shall become effective as of the first day of employment or the effective date of the employer’s governing board’s action to provide the Cash Balance Benefit Program, whichever occurs later.

(c) If the employer’s governing board subsequently provides coverage by the federal Social Security Act, a person who becomes a participant in the Cash Balance Benefit Program pursuant to subdivision (a) may elect coverage by the federal Social Security Act in lieu of participating in the Cash Balance Benefit Program.

(1) The election shall be made in writing on a properly executed form prescribed by the system and filed with the employer within 60 calendar days after the date of the employer’s governing board’s action to provide coverage by the federal Social Security Act or the effective date of the employer’s governing board’s action to provide coverage by the federal Social Security Act, whichever occurs later.

(2) The election form shall be received by the system’s headquarters office within 60 calendar days after the date of the employee’s signature. The employer shall retain a copy of the signed election form.

(3) The election shall become effective as of the effective date of the employer’s governing board’s action to provide coverage by the federal Social Security Act.

(d) If the governing board of an employer provided federal Social Security Act coverage with an effective date prior to January 1, 2007, and the employer offered the Cash Balance Benefit Program as of the effective date of the governing board’s action to provide federal Social Security Act coverage, a participant who was performing creditable service for that employer may elect to be covered by the federal Social Security Act in lieu of the Cash Balance Benefit Program. The participant’s election shall be made on or after March 1, 2008, and on or before May 1, 2008. The election to participate in the federal Social Security Act shall be effective on July 1, 2008.

(e) An election made pursuant to subdivision (b), (c), or (d) shall not preclude an employee from electing to participate in the Cash Balance Benefit Program for creditable service performed for that employer at a later date if the employer still provides the Cash Balance Benefit Program and the employee is eligible for participation as described in paragraph (1) of subdivision (a).

(1) The election shall be made in writing on a properly executed form prescribed by the system and filed with the employer.

(2) The election form shall be received by the system’s headquarters office within 60 calendar days after the date of the employee’s signature and prior to the submission of contributions. The employer shall retain a copy of the signed election form.

(3) The election shall be effective no earlier than the first day of the pay period in which the election is made and may not be canceled.

Cash Balance Benefit Program Defined Benefit Program creditable service part-time employment community college district Social Security coverage alternative retirement plan election form employment conditions temporary basis part-time hourly part-time daily substitute employment employer's governing board action eligibility conditions

(Repealed and added by Stats. 2019, Ch. 318, Sec. 9. (AB 1452) Effective January 1, 2020.)

Section § 26401

This law explains how members of the Defined Benefit Program employed part-time, temporarily, or as substitutes by certain employers can choose to join the Cash Balance Benefit Program instead. To make this switch, they need to fill out a specific form within 60 days of starting work or when their employer starts offering the Cash Balance Program. If they were previously excluded from the Cash Balance Program due to past rules, they can now opt in if their job meets certain conditions and their employer offers the program. Employees must submit a form within a designated 60-day period, and this decision takes effect in the following pay period. Members who join the Cash Balance Program can later choose to switch back to the Defined Benefit Program, but this new decision is final. All elections have specific timelines and paperwork requirements.

(a)

(1) A member of the Defined Benefit Program who is employed by an employer that provides the Cash Balance Benefit Program may elect to become a participant of the Cash Balance Benefit Program for creditable service performed for that employer if all employment to perform creditable service for that employer meets either of the following conditions:

(A) The member is employed by an employer, excluding a community college district, to perform creditable service on a part-time basis for less than 50 percent of the time the employer requires for the full-time position or on a substitute, part-time hourly, or part-time daily basis.

(B) The member is employed by a community college district to perform creditable service on a temporary basis pursuant to Section 87474, 87478, 87480, 87481, 87482, or 87482.5.

(2) The election shall be made in writing on a properly executed form prescribed by the system and filed with the employer within 60 calendar days after the first day of employment, or 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, whichever occurs later.

(3) The election form shall be received at the system’s headquarters office within 60 calendar days after the date of the employee’s signature and prior to the submission of contributions. The employer shall retain a copy of the signed election form.

(4) The election shall become effective as of the first day of employment or the effective date of the employer’s governing board’s action to provide the Cash Balance Benefit Program, whichever occurs later.

(b)

(1) If an employee was excluded from participation in the Cash Balance Benefit Program pursuant to Section 26401.5, as that section read on December 31, 2000, for the same service, the employee may elect to become a participant for creditable service subject to coverage under the Cash Balance Benefit Program for that employer, provided all of the following conditions are met:

(A) The employment is pursuant to Section 87474, 87478, 87480, 87481, 87482, or 87482.5.

(B) The employer offers the Cash Balance Benefit Program.

(2) Employers shall, on or before May 1, 2007, make available to employees described in this subdivision, information and forms provided by the system for making an election regarding participation. The employee shall submit the form to the employer within a 60-day election period designated by the employer. The employer shall retain a copy of the employee’s signed election form and mail the original signed election form to the system’s headquarters office. The election shall become effective on the first day of the pay period following the pay period in which the election is made.

(c) A member who elects to participate in the Cash Balance Benefit Program pursuant to this section may subsequently elect that creditable service performed for the employer be subject to coverage by the Defined Benefit Program in lieu of the Cash Balance Benefit Program.

(1) The election shall be made in writing on a properly executed form prescribed by the system and filed with the employer at any time while employed to perform creditable service.

(2) The election form shall be received at the system’s headquarters office within 60 calendar days after the date of the employee’s signature and prior to the submission of contributions. The employer shall retain a copy of the signed election form.

(3) The election shall become effective no earlier than the first day of the pay period in which the election is made and is irrevocable.

Defined Benefit Program Cash Balance Benefit Program part-time employment substitute teaching temporary employment community college district election form governing board action creditable service participation exclusion participation election pay period employment conditions form submission irrevocable election

(Amended by Stats. 2019, Ch. 318, Sec. 10. (AB 1452) Effective January 1, 2020.)

Section § 26403

If you are providing trustee services for an employer who offers benefits, you can choose to join the Cash Balance Benefit Program. You need to fill out a specific form and give it to your employer while you are still doing the trustee work. The form must reach the program's headquarters within 60 days of signing it, but before you send in any contributions. Once you decide to join, you can't change your mind, and your membership starts at the beginning of the pay period when you made the choice.

(a) A person who performs trustee service for an employer who has elected to provide benefits pursuant to this part to its employees may elect to participate in the Cash Balance Benefit Program for that service.

(1) The election shall be made in writing on a properly executed form prescribed by the system and filed with the employer at any time while performing trustee service.

(2) The election form shall be received at the system’s headquarters office within 60 calendar days after the date of the trustee’s signature and prior to the submission of contributions. The employer shall retain a copy of the election form.

(3) The election shall become effective no earlier than the first day of the pay period in which the election is made.

(b) An election made pursuant to this section is irrevocable.

trustee service Cash Balance Benefit Program election form employer benefits irrevocable election pay period contributions submission system's headquarters trustee signature form submission

(Amended by Stats. 2019, Ch. 318, Sec. 11. (AB 1452) Effective January 1, 2020.)