California Legislature—2015–16 Regular Session

Assembly BillNo. 963


Introduced by Assembly Member Bonilla

February 26, 2015


An act to amend Sections 22119.2, 22119.3, 22119.5, 22146, 22164.5, 26113, and 26135.7 of, and to add Sections 22119.6, 22458.3, 22458.5, and 22508.7 to, the Education Code, relating to state teachers’ retirement.

LEGISLATIVE COUNSEL’S DIGEST

AB 963, as introduced, Bonilla. Teachers’ Retirement Law.

Existing law, the Teachers’ Retirement Law, establishes the Defined Benefit Program of the State Teachers’ Retirement Plan, which provides a defined benefit to members of the program. The defined benefit is based on final compensation, credited service, and age at retirement, subject to certain variations. The State Teachers’ Retirement System (STRS) is administered by the Teachers’ Retirement Board. Existing law establishes the Cash Balance Benefit Program, also administered by the Teachers’ Retirement Board, as a separate benefit program within the State Teachers’ Retirement Plan in order to provide a retirement plan for persons employed to perform creditable service for less than 50% of full-time service.

This bill would revise and recast the definition of creditable service for purposes of the Defined Benefit Program and the Cash Balance Benefit Program, as specified. The bill would, among other things, include as creditable service for the purposes of the Defined Benefit Program, any activities that do not meet the definition of creditable service but were performed for an employer, as defined, on or before December 31, 2015, and were reported as creditable service to STRS. The bill would revise the definition of “member” to include any person who has performed those activities. The bill would allow members and specified retired members who have performed those activities to irrevocably elect to have that service subject to coverage under a different public retirement system and excluded from coverage by the Defined Benefit Program, as specified. The bill would also allow a person who had service for those activities removed from STRS and reported to a different public retirement system, as directed by STRS, to make an irrevocable election to have all of that service and subsequent service in the same position to be subject to coverage by the Defined Benefit Program and excluded from that other system.

The bill would also require employers, upon request of the system, to provide the system with information relating to time creditable service activities and provisions of approved charters to perform creditable service, as specified.

The bill would make other conforming, nonsubstantive changes.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 22119.2 of the Education Code is
2amended to read:

3

22119.2.  

(a) “Creditable compensation” means remuneration
4that is paid in cash by an employer to all persons in the same class
5of employees for performing creditable service in that position.
6Creditable compensation shall include:

7(1) Salary or wages paid in accordance with a publicly available
8written contractual agreement, including, but not limited to, a
9salary schedule or employment agreement.

10(2) Remuneration that is paid in addition to salary or wages,
11provided it is paid to all persons who are in the same class of
12employees in the same dollar amount, the same percentage of
13salary or wages, or the same percentage of the amount being
14distributed.

15(3) Remuneration that is paid for the use of sick leave, vacation,
16and other employer-approved leave, except as provided in
17paragraph (4) of subdivision (c).

18(4) Member contributions that are picked up by an employer
19pursuant to Section 22903 or 22904.

P3    1(5) Amounts that are deducted from a member’s remuneration,
2including, but not limited to, deductions for participation in a
3deferred compensation plan; deductions to purchase an annuity
4contract, tax-deferred retirement plan, or insurance program; and
5contributions to a plan that meets the requirements of Section 125,
6401(a), 401(k), 403(b), 457(b), or 457(f) of Title 26 of the United
7States Code.

8(6) Any other payments the board determines to be “creditable
9compensation.”

10(b) Any creditable compensation determined by the system to
11have been paid to enhance a member’s benefits shall not be credited
12under the Defined Benefit Program. Contributions on that
13compensation shall be credited to the Defined Benefit Supplement
14Program. A presumption by the system that creditable
15compensation was paid to enhance a member’s benefits may be
16rebutted by the member or by the employer on behalf of the
17member. Upon receipt of sufficient evidence to the contrary, a
18presumption by the system that creditable compensation was paid
19to enhance the member’s benefits may be reversed.

20(c) “Creditable compensation” does not mean and shall not
21include:

22(1) Remuneration that is not paid in cash or is not paid to all
23persons who are in the same class of employees.

24(2) Remuneration that is paid for service that is not creditable
25 service pursuant to Sectionbegin delete 22119.5.end deletebegin insert 22119.5 or 22119.6.end insert

26(3) Remuneration that is paid in addition to salary or wages if
27it is not paid to all persons in the same class of employees in the
28same dollar amount, the same percentage of salary or wages, or
29the same percentage of the amount being distributed pursuant to
30paragraph (2) of subdivision (a).

31(4) Remuneration that is paid in exchange for the relinquishment
32of unused accumulated leave.

33(5) Payments, including, but not limited to, those for
34participation in a deferred compensation plan; to purchase an
35annuity contract, tax-deferred retirement plan, or insurance
36program; and for contributions to a plan that meets the requirements
37of Section 125, 401(a), 401(k), 403(b), 457(b), or 457(f) of Title
3826 of the United States Code when the cost is covered by an
39employer and is not deducted from the member’s salary.

40(6) Fringe benefits provided by an employer.

P4    1(7) Expenses paid or reimbursed by an employer.

2(8) Severance pay, including lump-sum and installment
3payments, or money paid in excess of salary or wages to a member
4as compensatory damages or as a compromise settlement.

5(9) Any other payments the board determines not to be
6“creditable compensation.”

7(d) An employer or individual who knowingly or willfully
8reports compensation in a manner inconsistent with subdivision
9(a) or (c) may be subject to prosecution for fraud, theft, or
10embezzlement in accordance with the Penal Code. The system
11may establish procedures to ensure that compensation reported by
12an employer is in compliance with this section.

13(e) For purposes of this section, remuneration shall be considered
14paid if distributed to any person in the same class of employees
15who meets the qualifications or requirements specified in a publicly
16available written contractual agreement, including, but not limited
17to, a collective bargaining agreement or an employment agreement,
18as a condition of receiving the remuneration.

19(f) This definition of “creditable compensation” reflects sound
20principles that support the integrity of the retirement fund. Those
21principles include, but are not limited to, consistent treatment of
22compensation throughout a member’s career, consistent treatment
23of compensation among an entire class of employees, consistent
24treatment of compensation for the position, preventing adverse
25selection, and excluding from compensation earnable remuneration
26that is paid to enhance a member’s benefits. The system shall
27determine the appropriate crediting of contributions between the
28Defined Benefit Program and the Defined Benefit Supplement
29Program according to these principles, to the extent not otherwise
30specified pursuant to this part.

31(g) The section shall become operative on July 1, 2002.

32(h) This section shall not apply to a member subject to the
33California Public Employees’ Pension Reform Act of 2013.

34

SEC. 2.  

Section 22119.3 of the Education Code is amended to
35read:

36

22119.3.  

(a) “Creditable compensation” for members who are
37subject to the California Public Employees’ Pension Reform Act
38of 2013 means remuneration that is paid each pay period in which
39creditable service is performed for that position. Creditable
40compensation shall be paid in cash by an employer to all persons
P5    1in the same class of employees in accordance with a publicly
2available written contractual agreement, including, but not limited
3to, a salary schedule or employment agreement. Creditable
4compensation shall include:

5(1) Remuneration that is paid for the use of sick leave, vacation,
6and other employer-approved leave, except as provided in
7paragraph (4) of subdivision (b).

8(2) Member contributions that are picked up by an employer
9pursuant to Section 22903 or 22904.

10(3) Amounts that are deducted from a member’s remuneration,
11including, but not limited to, deductions for participation in a
12deferred compensation plan; deductions to purchase an annuity
13contract, tax-deferred retirement plan, or insurance program; and
14contributions to a plan that meets the requirements of Section 125,
15401(a), 401(k), 403(b), 457(b), or 457(f) of Title 26 of the United
16States Code.

17(4) Notwithstanding paragraphs (6) and (8) of subdivision (c)
18of Section 7522.34 of the Government Code, remuneration that is
19paid for creditable service that exceeds one year in a school year.

20(b) “Creditable compensation” does not mean and shall not
21include:

22(1) Remuneration that is not paid in cash or is not paid to all
23persons who are in the same class of employees.

24(2) Remuneration that is paid for service that is not creditable
25service pursuant to Sectionbegin delete 22119.5.end deletebegin insert 22119.5 or 22119.6.end insert

26(3) Remuneration that is not paid each pay period in which
27creditable service is performed for that position.

28(4) Remuneration that is paid in exchange for the relinquishment
29of unused accumulated leave.

30(5) Payments, including, but not limited to, those for
31participation in a deferred compensation plan; to purchase an
32annuity contract, tax-deferred retirement plan, or insurance
33program; and for contributions to a plan that meets the requirements
34of Section 125, 401(a), 401(k), 403(b), 457(b), or 457(f) of Title
3526 of the United States Code when the cost is covered by an
36employer.

37(6) Fringe benefits provided by an employer.

38(7) Expenses paid or reimbursed by an employer.

P6    1(8) Severance pay, including lump sum and installment
2payments, or money paid in excess of salary or wages to a member
3as compensatory damages or as a compromise settlement.

4(9) Creditable compensation determined by the system to have
5been paid to enhance a member’s benefit.

6(10) Compensation paid to the member in lieu of benefits
7provided to the member by the employer or paid directly by the
8employer to a third party other than the system for the benefit of
9the member.

10(11) Any one-time or ad hoc payments made to a member.

11(12) Any employer-provided allowance, reimbursement, or
12payment, including, but not limited to, one made for housing,
13vehicle, or uniform.

14(13) Any bonus paid in addition to compensation described in
15subdivision (a).

16(14) Any other payments the board determines not to be
17“creditable compensation.”

18(c) (1) Except for purposes of calculating credited service in
19the Defined Benefit Program and for reporting compensation
20earnable on or after January 1, 2013, creditable compensation in
21any fiscal year shall not exceed:

22(A) One hundred twenty percent of the “contribution and benefit
23base,” as determined under Section 430(b) of the Social Security
24Act (42 U.S.C. Sec. 430(b)), on January 1, 2013, for a member
25whose service is not included in the federal system.

26(B) One hundred percent of the “contribution and benefit base,”
27as determined under Section 430(b) of the Social Security Act (42
28U.S.C. Sec. 430(b)), on January 1, 2013, for a member whose
29service is included in the federal system pursuant to any changes
30in state or federal law enacted on or after January 1, 2013.

31(2) The system shall adjust the limit based on the annual changes
32to the Consumer Price Index for All Urban Consumers: U.S. City
33Average, calculated by dividing the Consumer Price Index for All
34Urban Consumers: U.S. City Average for the month of February
35in the fiscal year preceding the adjustment by the Consumer Price
36Index for All Urban Consumers: U.S. City Average for the month
37of February of the previous year rounded to the nearest thousandth.
38Notwithstanding paragraph (1) of subdivision (d) of Section
397522.10 of the Government Code, the adjustment shall be effective
40annually on July 1, beginning July 1, 2014.

P7    1(3) The Legislature reserves the right to modify the requirements
2of this subdivision with regard to all members subject to this
3subdivision, except that the Legislature may not modify these
4provisions in a manner that would result in a decrease in benefits
5accrued prior to the effective date of the modification.

6(4) This subdivision shall apply to compensation paid during
7the 2013-14 fiscal year and each fiscal year thereafter.

8(d) An employer or individual who knowingly or willfully
9reports compensation in a manner inconsistent with subdivision
10(a) or (b) may be subject to prosecution for fraud, theft, or
11embezzlement in accordance with the Penal Code. The system
12may establish procedures to ensure that compensation reported by
13an employer is in compliance with this section.

14(e) For purposes of this section, remuneration shall be considered
15paid if distributed to any person in the same class of employees
16who meets the qualifications or requirements specified in a publicly
17available written contractual agreement, including, but not limited
18to, a collective bargaining agreement or an employment agreement,
19as a condition of receiving the remuneration.

20(f) This definition of “creditable compensation” reflects sound
21principles that support the integrity of the retirement fund. Those
22principles include, but are not limited to, consistent treatment of
23compensation throughout a member’s career, consistent treatment
24of compensation among an entire class of employees, consistent
25treatment of compensation for the position, preventing adverse
26selection, and excluding from creditable compensation
27remuneration that is paid to enhance a member’s benefits. The
28system shall determine the appropriate crediting of contributions
29according to these principles, to the extent not otherwise specified
30pursuant to this part. A presumption by the system that creditable
31compensation was paid to enhance the member’s benefits may be
32rebutted by the member or by the employer on behalf of the
33member. Upon receipt of sufficient evidence to the contrary, a
34presumption by the system that creditable compensation was paid
35to enhance the member’s benefits may be reversed.

36

SEC. 3.  

Section 22119.5 of the Education Code is amended to
37read:

38

22119.5.  

(a) “Creditable service” means any of thebegin delete following
39activities performed for an employer in a position requiring a
40credential, certificate, or permit pursuant to this code, or under the
P8    1appropriate minimum standards adopted by the Board of Governors
2of the California Community Colleges, or under the provisions of
3an approved charter for the operation of a charter school for which
4the charter school is eligible to receive state apportionment, or
5pursuant to a contract between a community college district and
6the United States Department of Defense to provide vocational
7training:end delete
begin insert activities described in subdivision (b) performed for any
8of the following employers:end insert

begin insert

9(1) Prekindergarten through grade 12 employer in a position
10requiring certification qualifications as designated in regulations
11adopted by the Commission on Teacher Credentialing pursuant
12to Section 44001.

end insert
begin insert

13(2) Community college employer by a faculty member, as defined
14in Section 87003, in an academic position, as defined in Section
1587002, subject to the appropriate minimum standards adopted by
16the Board of Governors of the California Community Colleges
17pursuant to Section 87356, or pursuant to a contract between a
18community college district and the United States Department of
19Defense to provide vocational training.

end insert
begin insert

20(3) Charter school employer under the provisions of an
21approved charter for the operation of a charter school for which
22the charter school is eligible to receive state apportionment.

end insert
begin insert

23(b) The types of activities are any of the following:

end insert

24(1) The work of teachers, instructors, district interns, and
25academic employees employed in the instructional program for
26pupils, including special programs such as adult education, regional
27occupation programs, child care centers, and prekindergarten
28programs pursuant to Section 22161.

29(2) Education or vocational counseling, guidance, and placement
30services.

31(3) The work ofbegin delete directors, coordinators, and assistant
32administratorsend delete
begin insert employeesend insert who plan courses of study to be used in
33California public schools, or research connected with the evaluation
34or efficiency of the instructional program.

35(4) The selection, collection, preparation, classification,
36demonstration, or evaluation of instructional materials of any
37course of study for use in the development of the instructional
38program in California public schools, or other services related to
39begin insert California publicend insert school curriculum.

P9    1(5) The examination, selection, in-service training,begin insert mentoring,end insert
2 or assignment of teachers, principals, or other similar personnel
3involved in the instructional program.

begin delete

4(6) School activities related to, and an outgrowth of, the
5instructional and guidance program of the school when performed
6in addition to other activities described in this section.

end delete
begin delete

7(7)

end delete

8begin insert(6)end insert The work of nurses, physicians, speech therapists,
9psychologists, audiometrists, audiologists, and otherbegin insert California
10publicend insert
school health professionals.

begin delete

11(8)

end delete

12begin insert(7)end insert Services as abegin insert California publicend insert school librarian.

begin insert

13(8) Activities connected with the enforcement of the laws relating
14to compulsory education, coordination of child welfare activities
15involving the school and the home, and the school adjustment of
16pupils.

end insert

17(9) The work of employees who are responsible for the
18supervision of persons or administration of the duties described
19in thisbegin delete section.end deletebegin insert subdivision.end insert

begin delete

20(b)

end delete

21begin insert(c)end insert “Creditable service” also means the work of superintendents
22of California publicbegin delete schools.end deletebegin insert schools, and presidents and
23chancellors of community college employers.end insert

begin insert

24(d) “Creditable service” also means the performance of
25California public school activities relating to, and an outgrowth
26of, the instructional and guidance program of the California public
27school if performed in addition to any of the activities described
28in subdivision (b) or (c).

end insert
begin insert

29(e) (1) All of the activities performed in a position shall be
30deemed “creditable service” if the employer requires one or more
31of the activities described in subdivision (b) or (c) to be performed
32in that position for more than 50 percent of the time, as established
33pursuant to Section 22138.5, for a class of employees performing
34just those activities described in subdivision (b).

end insert
begin insert

35(2) This subdivision shall not apply to a person who performs
36creditable service for fewer days or hours than the employer
37requires for full time as established pursuant to Section 22138.5.

end insert
begin insert

38(3) All of the activities performed in a position with service that
39has been deemed creditable pursuant to paragraph (1) shall be
40subject to coverage under the Defined Benefit Program until the
P10   1member performing the activities becomes employed by the same
2or a different employer in a different position at which time an
3election may be made under Section 22508.

end insert
begin delete

4(c)

end delete

5begin insert(f)end insert The board shall have final authority for determining
6creditable service to cover any activities not already specified.

7

SEC. 4.  

Section 22119.6 is added to the Education Code, to
8read:

9

22119.6.  

(a) Creditable service shall also include any activities
10that do not meet the definition of creditable service under Section
1122119.5, but were performed for any employer, as defined in
12Section 22131, on or before December 31, 2015, and were reported
13as creditable service to the system.

14(b) The type of activities described in subdivision (a) performed
15by a member who becomes employed by the same or a different
16employer in a new position on or after January 1, 2016, shall be
17subject to Section 22119.5.

18

SEC. 5.  

Section 22146 of the Education Code is amended to
19read:

20

22146.  

“Member” means any person, unless excluded under
21other provisions of this part, who has performed creditable service
22as defined in Section 22119.5begin insert or 22119.6end insert and has earned creditable
23compensation for that service and has not received a refund for
24that service and, as a result, is subject to the Defined Benefit
25Program. A member’s rights and obligations under this part with
26respect to the Defined Benefit Program shall be determined by the
27applicability of subdivision (a), (b), (c), or (d), and subject to any
28applicable exceptions under other provisions of this part.

29(a) An active member is a member who is not retired or disabled
30and who earns creditable compensation during the school year.

31(b) An inactive member is a member who is not retired or
32disabled and who has not earned creditable compensation during
33the current or preceding school year.

34(c) A disabled member is a member to whom a disability
35allowance is payable under Chapter 25 (commencing with Section
3624001).

37(d) A retired member is a member who has terminated
38employment and has retired for service under the provisions of
39Chapter 27 (commencing with Section 24201), or has retired for
40disability under the provisions of Chapter 26 (commencing with
P11   1Section 24100) or retired for service or disability under the
2provisions of Chapter 21 (commencing with Section 23400), and
3to whom a retirement allowance is therefore payable.

4

SEC. 6.  

Section 22164.5 of the Education Code is amended to
5read:

6

22164.5.  

(a) “Retired member activities” means one or more
7activities identified in subdivisionbegin delete (a) or (b)end deletebegin insert (b), (c), or (d)end insert of
8Section 22119.5 or subdivisionbegin delete (a) or (b)end deletebegin insert (b), (c), or (d)end insert of Section
926113 within the California public school system and performed
10by a member retired for service under this part as one of the
11following:

12(1) An employee of an employer.

13(2) An employee of a third party, except as specified in
14subdivision (b).

15(3) An independent contractor.

16(b) The activities of an employee of a third party shall not be
17included in the definition of “retired member activities” if all of
18the following conditions apply:

19(1) The employee performs an assignment of 24 months or less.

20(2) The third-party employer does not participate in a California
21public pension system.

22(3) The activities performed by the individual are not normally
23performed by employees of an employer, as defined in Section
2422131.

25

SEC. 7.  

Section 22458.3 is added to the Education Code, to
26read:

27

22458.3.  

Upon request from the system, each employer shall
28provide the system with information regarding the percentage of
29time that creditable service activities, as described in paragraph
30(1) of subdivision (e) of Section 22119.5, are performed in a
31position.

32

SEC. 8.  

Section 22458.5 is added to the Education Code, to
33read:

34

22458.5.  

Upon request from the system, each employer shall
35provide the system with information regarding the certification
36qualifications, minimum standards, or provisions of an approved
37charter for the operation of a charter school required to perform
38creditable service pursuant to subdivision (a) of Section 22119.5,
39in a position.

P12   1

SEC. 9.  

Section 22508.7 is added to the Education Code, to
2read:

3

22508.7.  

(a) This section shall apply to service deemed
4creditable service pursuant to subdivision (a) of Section 22119.6
5and a person who performs that service.

6(b) (1) A member, including a member who retires on or before
7December 31, 2015, may elect to have all of that service subject
8to coverage by a different public retirement system and excluded
9from coverage by the Defined Benefit Program, if the member is
10not excluded from coverage by that public retirement system.

11(2) If an election is made pursuant to this subdivision, all of the
12following shall apply:

13(A) All service that was subject to coverage by the Defined
14Benefit Program shall be subject to coverage by the other public
15retirement system, if the member is not excluded from coverage
16by that public retirement system.

17(B) Any member contributions and credited interest, as
18determined by the system, and employer contributions, less any
19amounts previously paid to the person, shall be returned to the
20employer for that service, with the system recovering from the
21person any amounts that were paid to the person and not recovered
22from withheld member contributions, credited interest, or employer
23contributions.

24(C) Any amounts not recovered pursuant to subparagraph (B)
25shall be paid in full by the member before his or her service can
26be subject to coverage by the other public retirement system.

27(3) If an election is made pursuant to this subdivision, the
28 following shall apply:

29(A) A member not subject to the California Public Employees’
30Pension Reform Act of 2013 in the Defined Benefit Program shall
31not be subject to that act in the other public retirement system.

32(B) A member subject to the California Public Employees’
33Pension Reform Act of 2013 in the Defined Benefit Program shall
34be subject to that act in the other public retirement system.

35(4) If an election is not made pursuant to this subdivision, all
36service performed shall continue to be subject to coverage by the
37Defined Benefit Program until the member becomes employed
38pursuant to subdivision (b) of Section 22119.6.

39(c) (1) A person who had service removed from the system and
40reported to a different public retirement system, as directed by the
P13   1system, including a person who received a benefit on or before
2December 31, 2015, may elect to have all of that service and
3subsequent service in the same position subject to coverage by the
4Defined Benefit Program and excluded from coverage by the other
5public retirement system.

6(2) If an election is made pursuant to this subdivision, all of the
7following shall apply:

8(A) All of that service and subsequent service in the same
9position that was subject to coverage by the other public retirement
10system shall be subject to coverage by the Defined Benefit Program
11and reported to the system pursuant to Chapter 17 (commencing
12with Section 23000).

13(B) Any employee and employer contributions for that service
14and subsequent service in the same position shall be remitted to
15the system pursuant to Chapter 17 (commencing with Section
1623000).

17(3) If an election is made pursuant to this subdivision, the
18following shall apply:

19(A) A person not subject to the California Public Employees’
20Pension Reform Act of 2013 in the other public retirement system
21shall not be subject to that act in the Defined Benefit Program.

22(B) A person subject to the California Public Employees’
23Pension Reform Act of 2013 in the other public retirement system
24shall be subject to that act in the Defined Benefit Program.

25(4) If an election is not made pursuant to this subdivision, all
26service performed will continue to be subject to coverage by the
27other public retirement system.

28(d) The election shall be made in writing and filed with the
29office of the system on a form prescribed by the system on or
30before June 30, 2016, and a copy of the election shall be filed with
31the other public retirement system.

32(e) Only a person who has performed service creditable under
33subdivision (a) of Section 22119.6 can make an election under this
34section.

35(f) An election made pursuant to this section shall be irrevocable.

36(g) The board shall be under no obligation to identify, locate,
37or notify a person who has performed service creditable pursuant
38to subdivision (a) of Section 22119.6 and is eligible to make an
39election pursuant to this section.

P14   1

SEC. 10.  

Section 26113 of the Education Code is amended to
2read:

3

26113.  

(a) “Creditable service” means any of thebegin delete following
4activities performed for an employer in a position requiring a
5credential, certificate, or permit pursuant to this code, or under the
6appropriate minimum standards adopted by the Board of Governors
7of the California Community Colleges, or under the provisions of
8an approved charter for the operation of a charter school for which
9the charter school is eligible to receive state apportionment, or
10pursuant to a contract between a community college district and
11the United States Department of Defense to provide vocational
12training:end delete
begin insert activities described in subdivision (b) performed for any
13of the following employers:end insert

begin insert

14(1) Prekindergarten through grade 12 employer in a position
15requiring certification qualifications as designated in regulations
16adopted by the Commission on Teacher Credentialing pursuant
17to Section 44001.

end insert
begin insert

18(2) Community college employer by a faculty member, as defined
19in Section 87003, in an academic position, as defined in subdivision
20(b) of Section 87001, or by an educational administrator, as defined
21in subdivision (b) of Section 87002, subject to the appropriate
22minimum standards adopted by the Board of Governors of the
23California Community Colleges pursuant to Section 87356, or
24pursuant to a contract between a community college district and
25the United States Department of Defense to provide vocational
26training.

end insert
begin insert

27(3) Charter school employer under the provisions of an
28approved charter for the operation of a charter school for which
29the charter school is eligible to receive state apportionment.

end insert
begin insert

30(b) The types of activities are any of the following:

end insert

31(1) The work of teachers, instructors, district interns, and
32academic employees employed in the instructional program for
33pupils, including special programs such as adult education, regional
34occupational programs, child care centers, and prekindergarten
35programs pursuant to Section 22161.

36(2) Education or vocational counseling, guidance, and placement
37services.

38(3) The work ofbegin delete directors, coordinators, and assistant
39administratorsend delete
begin insert employeesend insert who plan courses of study to be used in
P15   1California public schools, or research connected with the evaluation
2or efficiency of the instructional program.

3(4) The selection, collection, preparation, classification,
4demonstration, or evaluation of instructional materials of any
5course of study for use in the development of the instructional
6program in California public schools, or other services related to
7begin insert California publicend insert school curriculum.

8(5) The examination, selection, in-service training,begin insert mentoring,end insert
9 or assignment of teachers, principals, or other similar personnel
10involved in the instructional program.

begin delete

11(6) School activities related to, and an outgrowth of, the
12instructional and guidance program of the school when performed
13in addition to other activities described in this section.

end delete
begin delete

14(7)

end delete

15begin insert(6)end insert The work of nurses, physicians, speech therapists,
16psychologists, audiometrists, audiologists, and otherbegin insert California
17publicend insert
school health professionals.

begin delete

18(8)

end delete

19begin insert(7)end insert Services as abegin insert California publicend insert school librarian.

begin insert

20(8) Activities connected with the enforcement of the laws relating
21to compulsory education, coordination of child welfare activities
22involving the school and the home, and the school adjustment of
23pupils.

end insert

24(9) The work ofbegin delete county and district superintendents and otherend delete
25 employees who are responsible for the supervision of persons or
26administration of the duties described in thisbegin delete section.end deletebegin insert subdivision.end insert

27(10) Trustee service as described in Section 26403.

begin delete

28(b)

end delete

29begin insert(c)end insert “Creditable service” also means the work of superintendents
30of California publicbegin delete schools.end deletebegin insert schools, and presidents and
31chancellors of community college employers.end insert

begin insert

32(d) “Creditable service” also means the performance of
33California public school activities related to, and an outgrowth
34of, the instructional and guidance program of the California public
35school when performed in addition to any of the activities described
36in subdivision (b) or (c).

end insert
begin delete

37(c)

end delete

38begin insert(e)end insert The board shall have final authority for determining
39creditable service to cover activities not already specified.

P16   1

SEC. 11.  

Section 26135.7 of the Education Code is amended
2to read:

3

26135.7.  

(a) “Retired participant activities” means one or more
4activities identified in subdivisionbegin delete (a) or (b)end deletebegin insert (b), (c), or (d)end insert of
5Section 22119.5 orbegin delete (a) or (b)end deletebegin insert (b), (c), or (d)end insert of Section 26113 within
6the California public school system and performed by a participant
7retired for service under this part as one of the following:

8(1) An employee of an employer.

9(2) An employee of a third party, except as specified in
10subdivision (b).

11(3) An independent contractor.

12(b) The activities of an employee of a third party shall not be
13included in the definition of “retired participant activities” if all
14of the following conditions apply:

15(1) The employee performs an assignment of 24 months or less.

16(2) The third-party employer does not participate in a California
17public pension system.

18(3) The activities performed by the individual are not normally
19performed by employees of an employer, as defined in Section
2022131.



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