SECTIONS 89620-89623 - California Statutes

EDUCATION CODE

SECTION 89620-89623

89620. (a) Only eligible employees of the California State
University may elect to participate in the optional retirement
program.
(b) Elections to participate in the optional retirement program
shall be made as follows:
(1) Eligible employees shall irrevocably elect either to join the
Public Employees' Retirement System in accordance with the provisions
of law applicable thereto or to participate in the optional
retirement program established pursuant to this chapter. This
election is irrevocable and shall be made within 60 days of the date
of employment. This election shall be in writing and filed with the
California State University and the Public Employees' Retirement
System. Notwithstanding Section 20303 of the Government Code,
eligible employees shall not be subject to membership in the Public
Employees' Retirement System until either they exercise the election
to not participate in the optional retirement program or the 60-day
period expires, whichever occurs first, whereupon the member
contributions required by Sections 20600 and 20603 of the Government
Code shall commence.
(2) An election of the optional retirement program by an eligible
employee shall be irrevocable and shall be accompanied by an
appropriate enrollment form, where required, for the issuance of
contracts or certificates under the program.

89621. Any eligible employee electing to participate in the
optional retirement program shall be ineligible for membership in the
Public Employees' Retirement System so long as he or she is employed
in any eligible position by the California State University. In the
event an optional retirement program participant assumes a position
in public service for which the optional retirement program is not
available, the employee shall, at that time, cease participation in
the program and shall begin participation in the Public Employees'
Retirement System.
Employees who elect to participate in the optional retirement
program shall remain eligible to participate in the Public Employees'
Medical and Hospital Care Act (Part 5 (commencing with Section
22750) of Division 5 of Title 2 of the Government Code) as if they
were members of the Public Employees' Retirement System.

89622. (a) The state shall contribute to the optional retirement
program an amount equal to the employer contribution of the trustees
to the Public Employees' Retirement System, less the amount
attributable to the unfunded actuarial obligation of the Public
Employees' Retirement Fund, as determined by the Board of
Administration of the Public Employees' Retirement System, which
until June 30, 2016, shall instead be transmitted to the Public
Employees' Retirement System. The Public Employees' Retirement System
shall provide the necessary data processing services and shall
charge the providers an administrative fee appropriate to pay the
costs of providing those services. The amount currently attributable
to the unfunded actuarial obligation of the Public Employees'
Retirement Fund has been determined by the Board of Administration to
be 2 percent. The Board of Administration shall, if the employer
contribution rate varies from the employer contribution rate in
effect on July 1, 1991, by at least plus or minus 5 percent,
recalculate the amount attributable to the unfunded actuarial
obligation. Thereafter, the Board of Administration shall, whenever
the employer contribution rate varies from the employer contribution
rate in effect on the effective date of the previous recalculation
pursuant to this section by at least plus or minus 5 percent,
recalculate the amount attributable to the unfunded actuarial
obligation. The trustees and the providers of optional retirement
programs shall provide the Public Employees' Retirement System with
any personnel data needed for the recalculation.
(b) Participants shall contribute to the optional retirement
program an amount equal to the contribution required of employees
pursuant to Sections 20600 and 20603 of the Government Code.
(c) Contributions required by subdivision (b) may be made by a
reduction in salary in accordance with any applicable provision of
the Internal Revenue Code. Payment of contributions authorized or
required by this section shall be made by the Controller to the
appropriate program administrator.
(d) Notwithstanding Section 13340 of the Government Code, there is
hereby continuously appropriated from the General Fund monthly to
the trustees the state's contribution prescribed in subdivision (a).

89623. No retirement, death, or other benefit shall be paid by the
state or the trustees for services credited under the optional
retirement program. The benefits are payable to participants or their
beneficiaries only by the designated company or companies in
accordance with the terms of the contracts, certificates, or
investment funds.