SECTIONS 22300-22335 - California Statutes

EDUCATION CODE

SECTION 22300-22335

22300. The chief executive officer is the chief administrative
officer of the system. The chief executive officer may administer
oaths.

22301. The chief executive officer has the authority and
responsibility for the administration of the system and the plan
pursuant to the policies and rules adopted by the board. The chief
executive officer may delegate to his or her subordinates any act or
duty unless the board by motion or resolution recorded in its minutes
has required the chief executive officer to act personally.

22302. (a) The board shall establish an ombudsman position to serve
as an advocate for the members of the Defined Benefit Program and
participants of the Cash Balance Benefit Program. The duties of the
ombudsman position shall include reviewing and making recommendations
to the chief executive officer regarding complaints by school
employees, members, employee organizations, the Legislature, or the
public regarding actions of the employees of the system.
(b) It is the intent of the Legislature that the salary of the
position of ombudsman be offset, as much as possible, through savings
realized from a reduction in interest payments on delinquent
benefits to members, and through a more efficient and improved public
relations program.

22302.5. The board may contract with a qualified third-party
administrator for custodial, record keeping, or other administrative
services necessary to carry into effect the provisions of Chapter 38
(commencing with Section 25000) of this part or Part 14.

22303. (a) Due to an increase in the demand for retirement
counseling services, the system, notwithstanding any other provision
of law, may contract with a county superintendent or other employer
to provide retirement counseling. Retired public employees may be
employed on a part-time basis for that purpose, unless and until the
study required by subdivision (b) of Section 7 of Chapter 1532 of the
Statutes of 1985 recommends against the employment of retired public
employees for these purposes. This authorization is subject to the
availability of funds appropriated for that purpose in the annual
Budget Act.
(b) The board may, by resolution, designate one or more official
contracted offices or benefits counselors that provide retirement
counseling pursuant to subdivision (a) to receive documents submitted
pursuant to this part, Part 13.5 (commencing with Section 25900), or
Part 14 (commencing with Section 26000). Notwithstanding any other
provision of law, any document received by an official contracted
office or a benefits counselor designated by the board pursuant to
this subdivision during the office's regular business hours or any
benefits counseling activity shall be deemed to have been received by
the system's headquarters office, as established pursuant to Section
22375, on the date received by the designated official contracted
office or benefits counselor.

22303.5. (a) Notwithstanding any other provision of law, the board
shall offer a midcareer retirement information program for the
benefit of all members.
(b) In implementing this section, the board shall develop plans
for the development and delivery of information to enhance awareness
of the features and benefits of the Defined Benefit Program, and
services of the system, federal Social Security Act programs and
benefits as they apply to members, and awareness of personal planning
responsibilities. This information shall be provided to assist
members in understanding the importance of financial, legal, estate,
and personal planning, and how choices and options offered by the
system may impact retirement.
(c) The board, at a public meeting, may assess a participation
fee for the recovery of all startup and ongoing expenses of the
midcareer information program.
(d) The board shall provide both active and retired members with
notice pertaining to paragraph (1) of subdivision (c) of Section
44830 and pertaining to Section 44252.5, making all members aware of
the time constraints and possible requirement for passing the state
basic skills proficiency test if an individual wants to return to the
classroom after 39 months. The methods for providing the notice may
include, but are not limited to, any of the following:
(1) Inclusion in annual member publications.
(2) Inclusion within packets of information provided to members
upon or prior to retirement.
(3) Inclusion as an attachment to any warrants issued to members.

22304. (a) The costs of administration of the plan shall be paid
from the retirement fund and those costs may not exceed the amount
made available by law during any fiscal period.
(b) The administrative costs of the plan shall be divided
proportionately in accordance with the assets of the Defined Benefit
Program, the Defined Benefit Supplement Program, and the Cash Balance
Benefit Program.

22305. Any rules and regulations adopted by the board for the
purpose of the administration of this part and Part 14 (commencing
with Section 26000), and not inconsistent with this part and Part 14
(commencing with Section 26000), have the force and effect of law.

22306. (a) Information filed with the system by a member,
participant, or beneficiary of the plan is confidential and shall be
used by the system for the sole purpose of carrying into effect the
provisions of this part. No official or employee of the system who
has access to the individual records of a member, participant, or
beneficiary shall divulge any confidential information concerning
those records to any person except in the following instances:
(1) To the member, participant, or beneficiary to whom the
information relates.
(2) To the authorized representative of the member, participant,
or beneficiary.
(3) To the governing board of the member's or participant's
current or former employer.
(4) To any department, agency, or political subdivision of this
state.
(5) To other individuals as necessary to locate a person to whom a
benefit may be payable.
(6) Pursuant to subpoena.
(7) To an agent or a physician authorized by the board in the
performance of duties pursuant to Section 24003, 24012, 24103, or
24111.
(8) To a physician or psychologist authorized by the member to
receive medical information, if the system determines that the
information may be detrimental to the member, as provided under
Section 1798.40 of the Civil Code.
(b) Information filed with the system in a beneficiary designation
form may be released after the death of the member or participant to
those persons who may provide information necessary for the
distribution of benefits.
(c) The information is not open to inspection by anyone except the
board and its officers and employees of the system, and any person
authorized by the Legislature to make inspections.

22307. (a) The board may authorize the transfer and disbursement of
funds from the retirement fund for the purpose of carrying into
effect this part and Part 14 (commencing with Section 26000). That
action shall require signatures of either the board chairperson and
vice chairperson, or the signatures of the board chairperson or vice
chairperson and the chief executive officer or any employee of the
system designated by the chief executive officer.
(b) Notwithstanding Section 13340 of the Government Code, the
board may disburse funds for benefits payable under this part and
Part 14 (commencing with Section 26000), for the payment of refunds
and for investment transactions. Funds for these purposes shall not
require appropriation by the annual Budget Act.
(c) Funds for the payment of administrative expenses are not
continuously appropriated, and funds for that purpose shall be
appropriated by the annual Budget Act.

22307.5. (a) There is in the State Treasury a trust fund to be
known as the Teachers' Retirement Program Development Fund. There
shall be deposited directly in that fund, and not transferred from
the Teachers' Retirement Fund, that portion of employer contributions
determined by the board as necessary to fund the expenditures
authorized by this section.
(b) Notwithstanding Section 13340 of the Government Code, moneys
in the Teachers' Retirement Program Development Fund are continuously
appropriated without regard to fiscal years to pay any costs
determined by the board to be related to the development of programs
authorized by statute that the board determines directly or
indirectly enhance the financial security of members, participants,
or beneficiaries of the State Teachers' Retirement Plan, if the board
determines, by resolution, the proposed program is to have a
reasonable expectation to generate sufficient revenue to carry out
the ongoing responsibilities of the programs under development and
permit the subsequent deposit of funds, pursuant to subdivision (e),
into the Teachers' Retirement Fund.
(c) The board may authorize the transfer and disbursement of funds
from the Teachers' Retirement Program Development Fund for the
purpose of carrying into effect this section upon the signature of
either or both of its chairperson and vice chairperson or the chief
executive officer or any employee of the system designated by the
chief executive officer.
(d) Disbursements of moneys from the Teachers' Retirement Program
Development Fund of whatever nature shall be made upon claims duly
audited in the manner prescribed for the disbursement of other public
funds.
(e) An amount equal to employer contributions deposited in the
Teachers' Retirement Program Development Fund pursuant to subdivision
(a), together with interest calculated based on the actuarially
assumed rate of investment return for the Defined Benefit Program for
the period beginning with the deposit of employer contributions into
the Teachers' Retirement Program Development Fund and ending with
the transfer to the Teachers' Retirement Fund, on terms and
conditions established by the board pursuant to subdivision (b),
shall be deposited in the Teachers' Retirement Fund, from funds
generated from the programs receiving development funds pursuant to
this section.

22307.6. The board may, by resolution, direct the Controller to
transfer all or a portion of the assets in the Teachers' Retirement
Program Development Fund, established pursuant to Section 22307.5,
into the designated fund or account that is authorized to expend
funds for the same program for which the assets in the Teachers'
Retirement Program Development Fund were credited, if the board finds
that the transfer of the assets of the Teachers' Retirement Program
Development Fund into the designated fund or account would facilitate
the efficient administration of the program for which the fund or
account was established.

22308. (a) Subject to subdivision (d), the board may, in its
discretion and upon any terms it deems just, correct the errors or
omissions of any member or beneficiary of the Defined Benefit
Program, and of any participant or beneficiary of the Cash Balance
Benefit Program, if all of the following facts exist:
(1) The error or omission was the result of mistake, inadvertence,
surprise, or excusable neglect, as each of those terms is used in
Section 473 of the Code of Civil Procedure.
(2) The correction will not provide the party seeking correction
with a status, right, or obligation not otherwise available under
this part.
(b) Failure by a member, participant or beneficiary to make the
inquiry that would be made by a reasonable person in like or similar
circumstances does not constitute an "error or omission" correctable
under this section.
(c) Subject to subdivision (d), the board may correct all actions
taken as a result of errors or omissions of the employer or this
system.
(d) The duty and power of the board to correct errors and
omissions, as provided in this section, shall terminate upon the
expiration of obligations of the board, system, and plan to the party
seeking correction of the error or omission, as those obligations
are defined by Section 22008.
(e) Corrections of errors or omissions pursuant to this section
shall be such that the status, rights, and obligations of all parties
described in subdivisions (a), (b), and (c) are adjusted to be the
same that they would have been if the act that was taken or would
have been taken, but for the error or omission, was taken at the
proper time. However, notwithstanding any of the other provisions of
this section, corrections made pursuant to this section shall adjust
the status, rights, and obligations of all parties described in
subdivisions (a), (b), and (c) as of the time that the correction
actually takes place if the board finds any of the following:
(1) That the correction cannot be performed in a retroactive
manner.
(2) That even if the correction can be performed in a retroactive
manner, the status, rights, and obligations of all of the parties
described in subdivisions (a), (b), and (c) cannot be adjusted to be
the same as they would have been if the error or omission had not
occurred.

22309. (a) The board shall issue to each active and inactive
member, no less frequently than annually after the close of the
school year, a statement of the member's individual Defined Benefit
Program and Defined Benefit Supplement accounts, provided the
employer or member has informed the system of the member's current
United States Postal Service mailing address. If the member indicates
that he or she prefers to receive that annual statement through the
Web site of the system, the board may, in lieu of mailing, issue the
annual statement by secured access through the Web site of the
system.
(b) The board shall periodically make a good faith effort to
locate inactive members to provide these members with information
concerning any benefit for which they may be eligible.

22310. (a) If a benefit or refund cannot be paid because, after a
good faith effort, the member or beneficiary cannot be located, the
amount payable shall be returned to the retirement fund until the
time the party entitled to payment is located.
(b) Interest shall continue to accrue on the accumulated
contributions pursuant to this part.

22311. The board shall maintain all data necessary to perform an
actuarial investigation of the demographic and economic experience of
the plan and for the actuarial valuation of the assets and
liabilities of the plan.

22311.5. The board shall acquire the services of an actuary to do
all of the following:
(a) Make recommendations to the board for the adoption of
actuarial assumptions that, in the aggregate, are reasonably related
to the past experience of the plan and reflect the actuary's informed
estimate of the future experience.
(b) Make an actuarial investigation of the demographic and
economic experience, including the mortality, service, and other
experience, of the plan with respect to members and beneficiaries of
the Defined Benefit Programs; members, beneficiaries, and annuity
beneficiaries of the Defined Benefit Supplement Program; and
participants and beneficiaries of the Cash Balance Benefit Program.
(c) Make an annual actuarial review of the goals regarding the
sufficiency of the Gain and Loss Reserves with respect to the Defined
Benefit Supplement Program and the Cash Balance Benefit Program and
recommend to the board the goal for maintaining sufficient Gain and
Loss Reserves for the Defined Benefit Supplement Program and the Cash
Balance Benefit Program.
(d) Recommend to the board the amount, if any, to be transferred
to the separate Gain and Loss Reserves from the investment earnings
of the plan with respect to the Defined Benefit Supplement Program
and the Cash Balance Benefit Program.
(e) At least once every six years with respect to the Defined
Benefit Program and annually with respect to the Defined Benefit
Supplement Program and the Cash Balance Benefit Program, using
actuarial assumptions adopted by the board, perform an actuarial
valuation of the plan that identifies the assets and liabilities of
the plan, and report the findings to the board. The report of the
actuary on the results of the actuarial valuation shall identify and
include the components of normal cost and adequate information to
determine the effects of changes in actuarial assumptions. Copies of
the report on the actuarial valuation shall be transmitted to the
Governor and to the Legislature.
(f) Recommend to the board all rates and factors necessary to
administer the plan, including, but not limited to, mortality tables,
annuity factors, interest rates, and additional earnings credits.
(g) Recommend to the board a strategy for amortizing any unfunded
actuarial obligation.
(h) As requested by the board, perform any other actuarial
services that may be required for administration of the plan.

22311.5. The board shall acquire the services of an actuary to do
all of the following:
(a) Make recommendations to the board for the adoption of
actuarial assumptions that, in the aggregate, are reasonably related
to the past experience of the plan and reflect the actuary's informed
estimate of the future experience.
(b) Make an actuarial investigation of the demographic and
economic experience, including the mortality, service, and other
experience, of the plan with respect to members and beneficiaries of
the Defined Benefit Program; members, beneficiaries, and annuity
beneficiaries of the Defined Benefit Supplement Program; and
participants and beneficiaries of the Cash Balance Benefit Program.
(c) Make an annual actuarial review of the goals regarding the
sufficiency of the Gain and Loss Reserves with respect to the Defined
Benefit Supplement Program and the Cash Balance Benefit Program and
make recommendations to the board for maintaining a sufficient Gain
and Loss Reserves for the Defined Benefit Supplement Program and the
Cash Balance Benefit Program.
(d) Recommend to the board the amount, if any, to be transferred
to the separate Gain and Loss Reserves from the investment earnings
of the plan with respect to the Defined Benefit Supplement Program
and the Cash Balance Benefit Program.
(e) At least once every six years with respect to the Defined
Benefit Program and annually with respect to the Defined Benefit
Supplement Program and the Cash Balance Benefit Program, using
actuarial assumptions adopted by the board, perform an actuarial
valuation of each program that identifies the assets and liabilities,
and report the findings to the board. The report of the actuary on
the results of each actuarial valuation shall identify and include
the components of normal cost, if applicable, and adequate
information to determine the effects of changes in actuarial
assumptions. Copies of the report on each actuarial valuation shall
be transmitted to the Governor and the Legislature.
(f) Recommend to the board all rates and factors necessary to
administer the plan, including, but not limited to, mortality tables,
annuity factors, interest rates, and additional earnings credits.
(g) Recommend to the board a strategy for amortizing any unfunded
actuarial obligation.
(h) As requested by the board, perform any other actuarial
services that may be required for administration of the plan.

22311.7. Upon the basis of the actuarial investigation and
actuarial valuation pursuant to Section 22311.5, or any part thereof,
the board shall adopt by plan amendment actuarial assumptions,
rates, factors, and tables as the board determines are necessary for
administration of the plan and its programs.

22313. (a) No adjustment shall be included in new rates of
contribution adopted by the board on the basis of an investigation,
valuation, and determination or because of amendment to the Teachers'
Retirement Law with respect to the Defined Benefit Program, for time
prior to the effective date of the adoption or amendment, as the
case may be.
(b) No action of the board, other than correction of errors in
calculating the allowance or annuity at the time of retirement,
disability or death of a member shall change the allowance or annuity
payable to a retired member or beneficiary prior to the date the
action is taken.

22314. The system shall inform a member, upon retirement, that
future tax liabilities may occur as the result of the pending
retirement allowance.

22317.5. The amount of compensation that is taken into account in
computing benefits payable under this part to any person who first
becomes a member of the Defined Benefit Program on or after July 1,
1996, shall not exceed the annual compensation limitations prescribed
by Section 401(a)(17) of Title 26 of the United States Code upon
public retirement systems, as that section may be amended from time
to time and as that limit may be adjusted by the Commissioner of
Internal Revenue for increases in cost of living. The determination
of compensation for each 12-month period shall be subject to the
annual compensation limit in effect for the calendar year in which
the 12-month period begins. In a determination of average annual
compensation over more than one 12-month period, the amount of
compensation taken into account for each 12-month period, shall be
subject to the annual compensation limit applicable to that period.
Notwithstanding any other provision of this part, no member
contribution shall be paid upon any compensation in excess of the
annual compensation limitations prescribed by Section 401(a)(17) of
Title 26 of the United States Code.

22318. (a) The initial payment to a disabled member or member
retired for disability shall be paid within 45 days following the
date the disability is approved, the effective date of the disability
retirement or disability allowance, or receipt of all necessary
information, whichever occurs last. Monthly payments shall continue
thereafter. Initial payments may be based on a good faith estimated
amount pending receipt by the system of all necessary employment,
dependent, and other public benefit information.
(b) The allowance payable to a disabled member or member retired
for disability shall be finalized and a retroactive payment, if one
is due, shall be issued within 45 days of receipt by the system of
all necessary information.

22319. (a) The initial payment to a member retired for service
shall be issued within 45 days of either the effective date of
retirement or receipt by the system of a completed application for
retirement, whichever is later. The initial payment to an option
beneficiary shall be issued within 45 days following receipt by the
system of a completed application for death benefits and proof of
death of the member. Monthly payments shall continue thereafter.
Payments may be based on a good faith estimate pending receipt by the
system of all necessary employment information.
(b) The allowance payable to a member retired for service or
option beneficiary shall be finalized and a retroactive payment, if
one is due, shall be issued within 45 days of receipt by the system
of all necessary information.

22320. The death benefits provided pursuant to Chapter 22
(commencing with Section 23800), Chapter 23 (commencing with Section
23850), and Chapter 24 (commencing with Section 23880) shall be paid
to the beneficiary or estate within 45 days of receipt by the system
of all necessary information.

22321. The system shall pay interest for delays in excess of the
allowable days specified in Sections 22318 to 22320, inclusive. The
interest rate for late payments shall be the regular interest rate.
Interest payments shall be deemed to be interest earned in the
calendar year in which paid. All interest payments under this section
shall be paid in addition to any credited interest that is paid.

22322. The system shall report monthly to the board on all late
payments.

22323. The system shall report monthly to the board concerning
outstanding death benefits payable that have not been paid within six
months of the notification of the death of the member.

22324. The board shall file an annual report with the Governor and
the Legislature by March 1 of each year on all phases of its work
that could affect the need for public contributions for costs of
administration of the system, including the subjects of benefits,
programs, practices, procedures, comments on trends and developments
in the field of retirement, and the following information on the
assets of the plan:
(a) A copy of the annual audit performed pursuant to Section
22217.
(b) A certification letter from the system's consulting actuary
concerning the findings of the most recent actuarial valuation,
accompanied by summaries of the actuarial cost method, assumptions,
and demographic data and analysis of funding progress.
(c) A review of the system's asset mix strategy, a market review
or the economic and financial environment in which investments were
made, and a summary of the system's general investment strategy.
(d) A description of the investments of the system at cost and
market value, and a summary of major changes that occurred since the
previous year.
(e) The following information regarding the rate of return of the
system by asset type:
(1) Time-weighted market value rate of return on a five-year,
three-year, and one-year basis.
(2) Time-weighted book value rate of return on a five-year,
three-year, and one-year basis.
(3) Portfolio return comparisons that compare investment returns
with universes and indexes.
(f) A report on the use of outside investment advisers and
managers.
(g) A report on shareholder voting.

22327. Notwithstanding any other provision of law, the Employment
Development Department shall disclose to the board information in its
possession relating to the earnings of any person who is receiving a
disability benefit under the Defined Benefit Program. The earnings
information shall be released to the board only upon written request
from the board specifying that the person is receiving disability
benefits under the Defined Benefit Program. The request may be made
by the chief executive officer of the system or by an employee of the
system so authorized and identified by name and title by the chief
executive officer in writing. The board shall notify recipients of
disability benefits that earnings information shall be obtained from
the Employment Development Department upon request by the board. The
board shall not release any earnings information received from the
Employment Development Department to any person, agency, or other
entity. The system shall reimburse the Employment Development
Department for all reasonable administrative expenses incurred
pursuant to this section.

22328. (a) Upon termination of a retirement allowance or disability
allowance that began to accrue on or after July 1, 1972, the person'
s individual account shall be credited with the amount of his or her
accumulated retirement contributions as they were on the effective
date of retirement or disability, less the sum of all payments made
under paragraph (1) of subdivision (a) of Section 24202, and under
Sections 24006 and 24007. The reduction shall not be greater than the
total of the accumulated retirement contributions.
(b) Upon the termination of a retirement allowance, the person's
accumulated annuity deposit contribution accounts shall be credited
with the amounts of the contributions as they were on the date the
annuity became payable because of the retirement less the sum of all
payments made under paragraph (2) of subdivision (a) of Section
24202.

22329. In order to provide equitable telephone assistance to all
members and beneficiaries, regardless of their location in
California, the system shall install a toll-free, "800" prefix, line.

22330. (a) The board shall provide the Legislature with an analysis
of the asset and liability implications of each bill that would
affect the investment strategy of the system, the funding of the
plan, or the benefit structure of the plan. The analysis shall
include an explanation of the methodology employed and the
assumptions used in its preparation. Neither fiscal committee of the
Legislature shall hear any such bill until the analysis has been
provided to the committee.
(b) There is hereby continuously appropriated, without regard to
fiscal years, from the retirement fund, an amount sufficient to pay
all costs arising from subdivision (a), but not to exceed fifty
thousand dollars ($50,000) in any one fiscal year.

22335. (a) All moneys in the Teachers Tax-Sheltered Annuity Fund
are continuously appropriated to the board for disbursement for the
purposes of the tax-sheltered annuity plan previously provided under
this part.
(b) The board may provide by board rule for optional forms of
payment from the Teachers Tax-Sheltered Annuity Fund.
(c) The Teachers Tax-Sheltered Annuity Fund as it existed on
December 31, 1994, shall continue to exist for purposes of this
section.
(d) This section shall cease to be operative 180 days after the
date that an annuity contract and custodial account established
pursuant to Chapter 36 (commencing with Section 24950) becomes
operative. On the date this section ceases to be operative this
section is repealed unless a statute that is enacted before that date
deletes or extends that date.