2007 California Education Code Chapter 14.2. Out-of-state Service Credit

CA Codes (edc:22820-22826)

22820.  (a) A member, other than a retired member, may elect to
purchase credit for out-of-state service for any of the following:
    (1)  Service performed in a position while employed by a public
educational institution located in another state or territory of the
United States.
   (2)  Educational service performed as an employee of the United
States.
   (3)  Service performed as an employee of an educational
institution located outside of the United States and its territories
that receives a portion of its funding from any foreign or domestic
public sources and provides a level of education comparable to
kindergarten and grades 1 to 12, inclusive, as determined by the
applicable law of the jurisdiction in which the educational
institution is located.
    (4) As an employee of an educational institution that receives
funds under Section 2701 of Title 22 of the United States Code.
   (b) The member may not receive credit for this service if the
member retains 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.
   (c) The amount of out-of-state service for which a member may
purchase credit may not exceed the number of years of service
performed by the member in a position described in subdivision (a).
   (d) 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.
   (4) Paying the contributions required under the Defined Benefit
Program pursuant to subdivision (a) of Section 22823 for the service
not credited to a public retirement system.
   (e) Compensation for out-of-state service may not be used in
determining the highest average annual compensation earnable when
calculating final compensation.
   (f) 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 ().
   (d) Regular interest shall be charged on the monthly unpaid
balance if the member makes installment payments.
   (e) If the payment described in subdivision (a) is not received at
the system's headquarters office, as described in Section 22375,
within 120 days of the due date, the election pursuant to this
section shall be canceled. The member shall receive credit for
out-of-state service based on the payments that were made or the
member may request a return of his or her payments.
   (f) If the election to purchase out-of-state service is canceled
as described in subdivision (e), the member may, prior to the
effective date of his or her retirement, elect to purchase
out-of-state service pursuant to this section.



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 ().
   (d) Regular interest shall be charged on the monthly unpaid
balance if the member makes installment payments.

   (e) If the payment described in subdivision (a) is not received at
the system's headquarters office, as described in Section 22375,
within 120 days of the due date, the election pursuant to this
section shall be canceled.  The member shall receive credit for
nonqualified service based on the payments that were made or the
member may request a return of his or her payments.
   (f) If the election to purchase nonqualified service is canceled
as described in subdivision (e), the member may, prior to the
effective date of his or her retirement, elect to purchase
nonqualified service pursuant to this section.