2005 California Education Code Sections 22820-22826 CHAPTER 14.2. OUT-OF-STATE SERVICE CREDIT

22820.  (a) A member, other than a retired member, may elect to
purchase out-of-state service credited in a public retirement system
for service covering public education in another state or territory
of the United States or by the United States for its citizens.  The
member may not receive credit for this service if the member has
credit or is eligible to receive credit for the same service in the
Cash Balance Benefit Program under Part 14 (commencing with Section
26000) or another public retirement system, excluding social
security.
   (b) The amount of out-of-state service for which a member may
purchase credit may not exceed the number of years of service
credited to the member in the out-of-state retirement system.
   (c) Out-of-state service credit may be purchased under this
section by means of any of the following actions:
   (1) Paying an amount equal to the amount refunded from the other
public retirement system and receiving service credit under the
Defined Benefit Program pursuant to subdivision (a) of Section 22823.
   (2) Paying the contributions required under the Defined Benefit
Program pursuant to subdivision (a) of Section 22823 for the service
credited in the other public retirement system.
   (3) Paying an amount equal to the amount refunded from the other
public retirement system and an additional amount in accordance with
subdivision (a) of Section 22823 for the service credited in the
other public retirement system.
   (d) Compensation for out-of-state service may not be used in
determining the highest average annual compensation earnable when
calculating final compensation.
   (e) The service credit purchased under this section may not be
used to meet the eligibility requirements for benefits provided under
Sections 24001 and 24101.
22821.  A member's election to purchase out-of-state service credit
pursuant to this chapter shall be submitted in writing and shall
include information as required by the board.
22822.  An election pursuant to Section 22820 to purchase credit for
out-of-state service may be made by a member any time prior to the
effective date of a family, survivor, disability, or retirement
allowance.
22823.  (a) A member who elects to receive credit for out-of-state
service as provided in this chapter shall pay, prior to retirement,
all contributions with respect to that service at the contribution
rate for additional service credit adopted by the board as a plan
amendment, in effect at the time of election.
   (b) (1) Any payment that a member may make to the system to obtain
credit for out-of-state service pursuant to this chapter shall be
paid in full prior to the effective date of a family, survivor,
disability, or retirement allowance.
   (2) If the system is unable to inform the member or beneficiary of
the amount required to purchase out-of-state service prior to the
effective date of the applicable allowance, the member or beneficiary
may make payment in full within 30 working days after the date of
mailing of the statement of contributions and interest required or
the effective date of the appropriate allowance, whichever is later.
The payment shall be paid in full before a member or beneficiary may
receive any adjustment in the appropriate allowance due because of
that payment.
   (c) Contributions for out-of-state service credit shall be made in
a lump sum, or in not more than 120 monthly installments, not to
exceed ten years.  No installment, except the final installment,
shall be less than twenty-five dollars ($25).
   (d) Regular interest shall be charged on the monthly unpaid
balance if the member makes installment payments.
22824.  No provision of this chapter shall apply to the extent it
would require any action to be taken that would create a conflict
with Section 415 of the Internal Revenue Code of 1968 (Title 26 of
the United States Code).
22825.  This chapter shall become operative on January 1, 1999.
22826.  (a) A member may elect to receive up to five years of credit
for nonqualified service provided the member is vested in the
Defined Benefit Program as provided in Section 22156.
   (b) A member who elects to receive credit for nonqualified service
as provided in this chapter shall contribute to the retirement fund
the actuarial cost of the service, including interest as appropriate,
as determined by the board based on the most recent valuation of the
plan with respect to the Defined Benefit Program.
   (1) Payment that a member may make to the system to obtain credit
for nonqualified service shall be paid in full prior to the effective
date of a family, survivor, disability, or retirement allowance.
   (2) If the system is unable to inform the member of the amount
required to purchase nonqualified service prior to the effective date
of the applicable allowance, the member may make payment in full
within 30 working days after the date of mailing of the statement of
contributions and interest required or the effective date of the
appropriate allowance, whichever is later.
   (c) Contributions for nonqualified service credit shall be made in
a lump sum or in not more than 120 monthly installments, not to
exceed ten years.  No installment, except the final installment,
shall be less than twenty-five dollars ($25).
   (d) Regular interest shall be charged on the monthly unpaid
balance if the member makes installment payments.