BILL NUMBER: SB 280AMENDED BILL TEXT AMENDED IN SENATE APRIL 22, 2009 INTRODUCED BY Senator Calderon FEBRUARY 24, 2009 An act to amend Section 22714 of , and to add Section 24616.5 to, the Education Code, relating to state teachers' retirement. LEGISLATIVE COUNSEL'S DIGEST SB 280, as amended, Calderon. State teachers' retirement.The(1) The State Teachers' Retirement Law authorizes a school district, community college district, or county office of education to grant members of the Defined Benefit Program of the State Teachers' Retirement Plan 2 additional years of service credit if certain conditions are satisfied and the member retires for service within a designated period. Under that law, a member granted additional credit for service under these provisions forfeits that credit if he or she is reemployed within 5 years after retirement by the district from which he or she retired. This bill would require the State Teachers' Retirement System, upon discovering that a member who has received additional service credit, as described above, is working as a teacher less than 5 years after receiving the credit, in violation of provisions imposed as a condition of receiving that credit, to provide certain notifications to the member in writing by first-class mail, return receipt requested. The bill would provide that a member who is in violation of these provisions would not forfeit the benefits arising from the additional credit if he or she terminates employment with the employer providing the additional service credit, as specified, and provides the system an affidavit, made under penalty of perjury, stating that, among other things, he or she was unaware of the prohibition and returned to teach at the request of the employer. By expanding the definition of the crime of perjury, this bill would impose a state-mandated local program. (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.This bill would provide that a member shall not forfeit his or her additional credit for service under these provisions if he or she is, on or after January 1, 2004, reemployed within 5 years after retirement as a substitute teacher by a school district from which he or she retired.Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:noyes . THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 22714 of the Education Code is amended to read: 22714. (a) Whenever the governing board of a school district or a community college district or a county office of education, by formal action, determines pursuant to Section 44929 or 87488 that, because of impending curtailment of, or changes in, the manner of performing services, the best interests of the district or county office of education would be served by encouraging certificated employees or academic employees to retire for service and that the retirement will result in a net savings to the district or county office of education, an additional two years of service credit shall be granted under this part to a member of the Defined Benefit Program if all of the following conditions exist: (1) The member is credited with five or more years of service credit and retires for service under Chapter 27 (commencing with Section 24201) during a period of not more than 120 days or less than 60 days, commencing no sooner than the effective date of the formal action of the employer that shall specify the period. (2) The employer transfers to the retirement fund an amount determined by the Teachers' Retirement Board to equal the actuarial equivalent of the difference between the allowance the member receives after receipt of service credit pursuant to this section and the amount the member would have received without the service credit and an amount determined by the Teachers' Retirement Board to equal the actuarial equivalent of the difference between the purchasing power protection supplemental payment the member receives after receipt of service credit pursuant to this section and the amount the member would have received without the service credit. The payment for purchasing power shall be deposited in the Supplemental Benefit Maintenance Account established by Section 22400 and shall be subject to Section 24415. The transfer to the retirement fund shall be made in a manner and a time period, not to exceed eight years, that is acceptable to the Teachers' Retirement Board. The employer shall transfer the required amount for all eligible employees who retire pursuant to this section. (3) The employer transmits to the retirement fund the administrative costs incurred by the system in implementing this section, as determined by the Teachers' Retirement Board. (4) The employer has considered the availability of teachers or academic employees to fill the positions that would be vacated pursuant to this section. (b) (1) The school district shall demonstrate and certify to the county superintendent that the formal action taken would result in a net savings to the district. (2) The county superintendent shall certify to the Teachers' Retirement Board that the result specified in paragraph (1) can be demonstrated. The certification shall include, but is not limited to, the information specified in subdivision (c) of Section 14502.1. (3) The school district shall reimburse the county superintendent for all costs to the county superintendent that result from the certification. (c) (1) The county office of education shall demonstrate and certify to the Superintendent of Public Instruction that the formal action taken would result in a net savings to the county office of education. (2) The Superintendent of Public Instruction shall certify to the Teachers' Retirement Board that the result specified in paragraph (1) can be demonstrated. The certification shall include, but is not limited to, the information specified in subdivision (c) of Section 14502.1. (3) The Superintendent of Public Instruction may request reimbursement from the county office of education for all administrative costs that result from the certification. (d) (1) The community college district shall demonstrate and certify to the chancellor's office that the formal action taken would result in a net savings to the district. (2) The chancellor shall certify to the Teachers' Retirement Board that the result specified in paragraph (1) can be demonstrated. The certification shall include, but is not limited to, the information specified in subdivision (c) of Section 84040.5. (3) The chancellor may request reimbursement from the community college district for all administrative costs that result from the certification. (e) The opportunity to be granted service credit pursuant to this section shall be available to all members employed by the school district, community college district, or county office of education who meet the conditions set forth in this section. (f) The amount of service credit shall be two years. (g) A member of the Defined Benefit Program who retires under this part for service under Chapter 27 (commencing with Section 24201) with service credit granted under this section and who subsequently reinstates shall forfeit the service credit granted under this section. (h)(1)Except as described in paragraph (2)Except as described in Section 24616.5 , a member of the Defined Benefit Program who retires under this part for service under Chapter 27 (commencing with Section 24201) with service credit granted under this section and who takes any job with the school district, community college district, or county office of education that granted the member the service credit less than five years after receiving the credit shall forfeit the ongoing benefit he or she receives from the additional service credit granted under this section.(2) This subdivision shall not apply to a member described in paragraph (1) who, on or after January 1, 2004, takes a job with the school district as a substitute teacher.(i) This section does not apply to a member otherwise eligible if the member receives any unemployment insurance payments arising out of employment with an employer subject to this part within one year following the effective date of the formal action under subdivision (a), or if the member is not otherwise eligible to retire for service. SEC. 2. Section 24616.5 is added to the Education Code , to read: 24616.5. (a) Upon discovering that a member who has received additional service credit pursuant to Section 22714 is working as a teacher less than five years after receiving the credit in violation of subdivision (h) of Section 22714, the system shall notify the member in writing by first-class mail, return receipt requested, that he or she is in violation of the conditions under which he or she received the additional credit. The system shall further notify the member that he or she will forfeit the benefit resulting from any additional service credit, and will be liable for restitution of any overpayment, unless all of the following occur: (1) The member terminates employment with the employer providing the additional service credit on or before 30 days after receipt of the notice from the system. (2) The member provides the system on or before 30 days after receipt of the notice an affidavit, made under penalty of perjury, stating that: (A) The member was unaware of the prohibition on employment with the employer granting the additional service credit described in subdivision (h) of Section 22714. (B) The member was invited to return to employment as a teacher by the employer granting the additional service credit. (C) The member's employment with the employer granting the additional service credit has terminated, or will terminate, within the period required by this section. (b) If, on or before 30 days after receipt of the notice required in subdivision (a), a member terminates employment with the employer granting the additional service credit and, within that time, also provides the system the affidavit described in subdivision (a), then the member shall not forfeit the benefit resulting from the additional service credit and the system shall not attempt to recover any payments made in this connection, absent evidence of fraud or intentional misrepresentation of facts. (c) If a member, prior to January 1, 2010, has forfeited a benefit resulting from additional service credit received pursuant to Section 22714, and the forfeit was a result of work as a teacher entered at the request of the employer that granted the additional service credit, the member shall have that benefit restored, and all deductions or payments made in this connection returned, if all of the following occur: (1) The member has terminated employment with the employer granting the additional service credit. (2) The member provides the system on or before January 31, 2010, an affidavit, made under penalty of perjury, stating that: (A) The member was unaware of the prohibition on employment with the employer granting the additional service credit described by subdivision (h) of Section 22714. (B) The member was invited to return to employment as a teacher by the employer granting the additional service credit. (C) The member has terminated employment with the employer granting the additional service credit. SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.