SECTIONS 42140-42142 - California Statutes

EDUCATION CODE

SECTION 42140-42142

42140. (a) If a school district or county office of education,
either individually or as a member of a joint powers agency, provides
health and welfare benefits for employees upon their retirement, and
those benefits will continue after the employees reach 65 years of
age, the superintendent of the school district or county
superintendent of schools, as appropriate, annually shall provide
information to the governing board of the school district or the
county board of education, as appropriate, regarding the estimated
accrued but unfunded cost of those benefits. The estimate of cost
shall be based upon an actuarial report that incorporates annual
fiscal information and is obtained by the superintendent at least
every three years. The actuarial report shall be performed by an
actuary who is a member of the American Academy of Actuaries. If the
school district or county office of education regularly contracts for
an actuarial report for other fiscal matters, a separate actuarial
report is not required, if the estimate of costs required by this
subdivision is separately and clearly set forth in that report.
(b) The cost information required by subdivision (a) and a copy of
the actuarial report on which the estimated costs are based shall be
presented by the superintendent at a public meeting of the governing
board. At that meeting, the governing board shall disclose, as a
separate agenda item, whether or not it will reserve a sufficient
amount of money in its budget to fund the present value of the health
and welfare benefits of existing retirees or the future cost of
employees who are eligible for benefits in the current fiscal year,
or both.
(c) The governing board annually shall certify to the county
superintendent of schools the amount of money, if any, that it has
decided to reserve in its budget for the cost of those benefits, and
shall submit to the county superintendent of schools any budget
revisions that may be necessary to account for that budget reserve.
(d) The county board of education annually shall certify to the
Superintendent of Public Instruction the amount of money, if any,
that has been reserved in the budget of the county office of
education for the cost of those benefits.
(e) This section is inoperative on January 1, 2005.

42141. (a) If a school district or county office of education,
either individually or as a member of a joint powers agency, is
self-insured for workers' compensation claims, the superintendent of
the school district or county superintendent of schools, as
appropriate, annually shall provide information to the governing
board of the school district or the county board of education, as
appropriate, regarding the estimated accrued but unfunded cost of
those claims. The estimate of costs shall be based on an actuarial
report that incorporates annual fiscal information and is obtained by
the superintendent at least every three years. The actuarial report
shall be performed by an actuary who is a member of the American
Academy of Actuaries. If the school district or county office of
education regularly contracts for an actuarial report for other
fiscal matters, a separate actuarial report is not required, if the
estimate of costs required by this subdivision is separately and
clearly set forth in that report.
(b) The cost information required by subdivision (a) and a copy of
the actuarial report on which the estimated costs are based shall be
presented by the superintendent at a public meeting of the governing
board. At that meeting, the governing board shall disclose, as a
separate agenda item, whether or not it will reserve a sufficient
amount of money in its budget to fund the present value of the
accrued but unpaid workers' compensation claims or if it is otherwise
decreasing the amount in its workers' compensation reserve fund.
(c) The governing board annually shall certify to the county
superintendent of schools the amount of money, if any, that it has
decided to reserve in its budget for the cost of those claims, and
shall submit to the county superintendent of schools any budget
revisions that may be necessary to account for that budget reserve.
(d) The county board of education annually shall certify to the
Superintendent of Public Instruction the amount of money, if any,
that has been reserved in the budget of the county office of
education for the cost of those claims.

42142. Within 45 days of adopting a collective bargaining
agreement, the superintendent of the school district shall forward to
the county superintendent of schools any revisions to the school
district's current year budget that are necessary to fulfill the
terms of that agreement. Any additional costs to the school district
that may result from the terms of the collective bargaining agreement
also shall be reflected in any interim fiscal reports or multiyear
fiscal projections.