BILL NUMBER: SB 280 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 7, 2009
AMENDED IN SENATE APRIL 22, 2009
INTRODUCED BY Senator Calderon
FEBRUARY 24, 2009
An act to amend Section 22714 of, and to add Section 24616.5 to,
the Education Code, relating to state teachers' retirement.
LEGISLATIVE COUNSEL'S DIGEST
SB 280, as amended, Calderon. State teachers' retirement.
(1) The
The State Teachers' Retirement Law authorizes a school
district, community college district, or county office of education
to grant members of the Defined Benefit Program of the State Teachers'
Retirement Plan 2 additional years of service credit if certain
conditions are satisfied and the member retires for service within a
designated period. Under that law, a member granted additional credit
for service under these provisions forfeits that credit if he or she
is reemployed within 5 years after retirement by the district from
which he or she retired.
This bill would provide that a member of the State Teachers'
Retirement System who was granted service credit pursuant to the
retirement incentive program described above, between January 1,
2004, and December 31, 2009, and who returned to work with the
employer in violation of the provisions of that program, would not
forfeit the benefit related to the service credit if the member
ceases work with the employer, as specified, and the member agrees in
writing that he or she will not return to work with the employer in
violation of the conditions of the program. The bill would require an
employer that grants service credit pursuant to that retirement
incentive program on and after January 1, 2010, to have the retiring
member sign a statement indicating that he or she has read and
understood the terms for receiving the service credit, as specified,
and would require that a member who violates these terms would
forfeit, prospectively, the service credit and benefit resulting from
the service credit. The bill would require an employer who grants
service credit pursuant to the program to provide a written statement
indicating that the employer has read and understands the terms of
that program and specifically that the employer will not rehire a
member to whom it has granted the service credit until 5 years have
elapsed. The bill would provide that an employer who rehires an
employee in violation of the terms of the program is responsible for
reimbursing the State Teachers' Retirement System all moneys paid to
the member as a result of the additional service credit, plus any
associated administrative costs, and would provide the employer the
option of making these payments over 8 years.
This bill would require the State Teachers' Retirement System,
upon discovering that a member who has received additional service
credit, as described above, is working as a teacher less than 5 years
after receiving the credit, in violation of provisions imposed as a
condition of receiving that credit, to provide certain notifications
to the member in writing by first-class mail, return receipt
requested. The bill would provide that a member who is in violation
of these provisions would not forfeit the benefits arising from the
additional credit if he or she terminates employment with the
employer providing the additional service credit, as specified, and
provides the system an affidavit, made under penalty of perjury,
stating that, among other things, he or she was unaware of the
prohibition and returned to teach at the request of the employer. By
expanding the definition of the crime of perjury, this bill would
impose a state-mandated local program.
(2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 22714 of the Education Code is amended to read:
22714. (a) Whenever the governing board of a school district or a
community college district or a county office of education, by
formal action, determines pursuant to Section 44929 or 87488 that,
because of impending curtailment of, or changes in, the manner of
performing services, the best interests of the district or county
office of education would be served by encouraging certificated
employees or academic employees to retire for service and that the
retirement will result in a net savings to the district or county
office of education, an additional two years of service credit shall
be granted under this part to a member of the Defined Benefit Program
if all of the following conditions exist:
(1) The member is credited with five or more years of service
credit and retires for service under Chapter 27 (commencing with
Section 24201) during a period of not more than 120 days or less than
60 days, commencing no sooner than the effective date of the formal
action of the employer that shall specify the period.
(2) The employer transfers to the retirement fund an amount
determined by the Teachers' Retirement Board to equal the actuarial
equivalent of the difference between the allowance the member
receives after receipt of service credit pursuant to this section and
the amount the member would have received without the service credit
and an amount determined by the Teachers' Retirement Board to equal
the actuarial equivalent of the difference between the purchasing
power protection supplemental payment the member receives after
receipt of service credit pursuant to this section and the amount the
member would have received without the service credit. The payment
for purchasing power shall be deposited in the Supplemental Benefit
Maintenance Account established by Section 22400 and shall be subject
to Section 24415. The transfer to the retirement fund shall be made
in a manner and a time period, not to exceed eight years, that is
acceptable to the Teachers' Retirement Board. The employer shall
transfer the required amount for all eligible employees who retire
pursuant to this section.
(3) The employer transmits to the retirement fund the
administrative costs incurred by the system in implementing this
section, as determined by the Teachers' Retirement Board.
(4) The employer has considered the availability of teachers or
academic employees to fill the positions that would be vacated
pursuant to this section.
(b) (1) The school district shall demonstrate and certify to the
county superintendent that the formal action taken would result in a
net savings to the district.
(2) The county superintendent shall certify to the Teachers'
Retirement Board that the result specified in paragraph (1) can be
demonstrated. The certification shall include, but is not limited to,
the information specified in subdivision (c) of Section 14502.1.
(3) The school district shall reimburse the county superintendent
for all costs to the county superintendent that result from the
certification.
(c) (1) The county office of education shall demonstrate and
certify to the Superintendent of Public Instruction that the formal
action taken would result in a net savings to the county office of
education.
(2) The Superintendent of Public Instruction shall certify to the
Teachers' Retirement Board that the result specified in paragraph (1)
can be demonstrated. The certification shall include, but is not
limited to, the information specified in subdivision (c) of Section
14502.1.
(3) The Superintendent of Public Instruction may request
reimbursement from the county office of education for all
administrative costs that result from the certification.
(d) (1) The community college district shall demonstrate and
certify to the chancellor's office that the formal action taken would
result in a net savings to the district.
(2) The chancellor shall certify to the Teachers' Retirement Board
that the result specified in paragraph (1) can be demonstrated. The
certification shall include, but is not limited to, the information
specified in subdivision (c) of Section 84040.5.
(3) The chancellor may request reimbursement from the community
college district for all administrative costs that result from the
certification.
(e) The opportunity to be granted service credit pursuant to this
section shall be available to all members employed by the school
district, community college district, or county office of education
who meet the conditions set forth in this section.
(f) The amount of service credit shall be two years.
(g) A member of the Defined Benefit Program who retires under this
part for service under Chapter 27 (commencing with Section 24201)
with service credit granted under this section and who subsequently
reinstates shall forfeit the service credit granted under this
section.
(h) Except as described in Section 24616.5, a member of the
Defined Benefit Program who retires under this part for service under
Chapter 27 (commencing with Section 24201) with service credit
granted under this section and who takes any job with the school
district, community college district, or county office of education
that granted the member the service credit less than five years after
receiving the credit shall forfeit the ongoing benefit he or she
receives from the additional service credit granted under this
section.
(i) This section does not apply to a member otherwise eligible if
the member receives any unemployment insurance payments arising out
of employment with an employer subject to this part within one year
following the effective date of the formal action under subdivision
(a), or if the member is not otherwise eligible to retire for
service.
SEC. 2. Section 24616.5 is added to the
Education Code, to read:
24616.5. (a) Upon discovering that a member who has received
additional service credit pursuant to Section 22714 is working as a
teacher less than five years after receiving the credit in violation
of subdivision (h) of Section 22714, the system shall notify the
member in writing by first-class mail, return receipt requested, that
he or she is in violation of the conditions under which he or she
received the additional credit. The system shall further notify the
member that he or she will forfeit the benefit resulting from any
additional service credit, and will be liable for restitution of any
overpayment, unless all of the following occur:
(1) The member terminates employment with the employer providing
the additional service credit on or before 30 days after receipt of
the notice from the system.
(2) The member provides the system on or before 30 days after
receipt of the notice an affidavit, made under penalty of perjury,
stating that:
(A) The member was unaware of the prohibition on employment with
the employer granting the additional service credit described in
subdivision (h) of Section 22714.
(B) The member was invited to return to employment as a teacher by
the employer granting the additional service credit.
(C) The member's employment with the employer granting the
additional service credit has terminated, or will terminate, within
the period required by this section.
(b) If, on or before 30 days after receipt of the notice required
in subdivision (a), a member terminates employment with the employer
granting the additional service credit and, within that time, also
provides the system the affidavit described in subdivision (a), then
the member shall not forfeit the benefit resulting from the
additional service credit and the system shall not attempt to recover
any payments made in this connection, absent evidence of fraud or
intentional misrepresentation of facts.
(c) If a member, prior to January 1, 2010, has forfeited a benefit
resulting from additional service credit received pursuant to
Section 22714, and the forfeit was a result of work as a teacher
entered at the request of the employer that granted the additional
service credit, the member shall have that benefit restored, and all
deductions or payments made in this connection returned, if all of
the following occur:
(1) The member has terminated employment with the employer
granting the additional service credit.
(2) The member provides the system on or before January 31, 2010,
an affidavit, made under penalty of perjury, stating that:
(A) The member was unaware of the prohibition on employment with
the employer granting the additional service credit described by
subdivision (h) of Section 22714.
(B) The member was invited to return to employment as a teacher by
the employer granting the additional service credit.
(C) The member has terminated employment with the employer
granting the additional service credit.
SEC. 3. No reimbursement is required by this
act pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
SEC. 2. Section 24616.5 is added to the
Education Code , to read:
24616.5. (a) (1) A member who received service credit pursuant to
Section 22714 between January 1, 2004, and December 31, 2009, and
who lost the benefit that resulted from the service credit as a
result of returning to work for the employer that granted the credit
less than five years after receiving the credit shall have that
benefit fully reinstated, and shall have all moneys paid to the
system as a result of losing the service credit reimbursed, if the
both of the following are true:
(A) The member has ceased employment with the employer that
granted the service credit or ceases employment with the employer on
or before 30 days after notification by the system that the
employment is in violation of the conditions pursuant to which the
member received the service credit.
(B) The member agrees in writing that he or she will not return to
the employer that granted the service credit until five years have
elapsed since receiving the credit.
(2) A member who received service credit pursuant to Section 22714
between January 1, 2004, and December 31, 2009, who, on and after
January 1, 2010, is first discovered to be working for the employer
that granted the credit less than five years after receiving the
credit shall not lose the benefit resulting from the credit if both
of the following are true:
(A) The member ceases employment with the employer on or before 30
days after notification by the system that the employment is in
violation of the conditions pursuant to which the member received the
service credit.
(B) The member agrees in writing that he or she will not return to
the employer that granted the service credit until five years have
elapsed since receiving the credit.
(3) A member described in paragraph (1) or (2) who fails to
fulfill the requirements of those paragraphs or who, after fulfilling
the requirements of those paragraphs, returns to work with the
employer that granted the service credit in violation of the
requirements of Section 22714 shall permanently forfeit the service
credit and benefit resulting from the service credit as provided in
subdivision (b).
(b) On and after January 1, 2010, any employer that grants service
credit pursuant to Section 22714 shall have the retiring member sign
a statement indicating that he or she has read and understood the
terms of that section and specifically that the member will not
return to employment with the employer that granted the service
credit until five years have elapsed since receiving the credit. If
the member subsequently returns to employment with the employer that
granted the service credit in violation of the requirements of
Section 22714, the member shall permanently forfeit the service
credit and benefit resulting from the service credit, provided that
the member shall not be required to return moneys already paid to the
member.
(c) (1) On and after January 1, 2010, any employer that grants
service credit pursuant to Section 22714 shall provide to the system
a written statement indicating that the employer has read and
understands the terms of that section and specifically that the
employer will not rehire a member to whom it has granted the service
credit until five years have elapsed since the member received the
credit.
(2) If an employer rehires a member before the elapse of five
years in violation of Section 22714 and the written statement
provided under paragraph (1), the employer shall reimburse to the
system all moneys paid to the member as a result of the additional
service credit granted by the employer, plus any associated
administrative costs. The employer shall have the option of making
these payments over an eight-year period.