The purpose of this circular is to inform employers of SB 227 (Chapter
838, Statutes of 1997). This legislation amended existing Sections 22509, 22801, and
22803, of, and added Section 22508.5 to the Education Code, and added Section 20309 to the
Government Code, relating to community colleges. SB 227 applies to changes in employment
effective on or after January 1, 1998.
This circular applies to all California Community College Districts
that employ members of the State Teachers' Retirement System (STRS) who are subsequently
employed by the Board of Governors of the California Community Colleges to perform duties
that require membership in a different public retirement system. It also applies to the
Board of Governors of the California Community Colleges which employs members of the
Public Employees' Retirement System (PERS) who are subsequently employed by a California
Community College District to perform duties that require membership in a different public
retirement system.
The STRS/PERS Retirement System election is available to employees who
change employment in positions covered by STRS or PERS within the California Community
Colleges/Board of Governors of the California Colleges only. The provisions of
SB 227 do not allow any other State Agency employee "reciprocal" provisions
except as explicitly provided in the bill.
Section 22508.5(a) provides that a community college district employee
who is a member of the STRS Defined Benefit (DB) Plan who becomes employed by the Board of
Governors of the California Community Colleges to perform duties that require membership
in a different public retirement system, is excluded from coverage in that different
system if he or she elects, in writing, and files that election in the office of the State
Teachers' Retirement System within 60 days after the employee's date of hire into the new
position, to continue coverage under STRS.
Only a person who has achieved vesting in the STRS DB Plan (earned 5
years of service credit) is eligible to elect to continue as a member of the State
Teachers' Retirement System.
Section 22508.5(b) provides that a member of PERS who is employed by
the Board of Governors of the California Community Colleges who subsequently is employed
by a community college district to perform creditable service subject to coverage under
the STRS DB Plan, may elect to continue coverage under PERS and is excluded from coverage
under the STRS DB Plan pursuant to Section 20309 of the Government Code.
Section 22509(a) provides that the employer must, within 10 working
days of the date the employee is hired into the position that is covered by a different
public retirement system, inform an employee of his or her right to elect retirement
system coverage pursuant to Section 22508 or 22508.5. The employer must make available to
the employee written information provided by the retirement systems to assist the employee
in making the election.
Section 22509(b) provides that in the event an employee makes an
election pursuant to Section 22508(a) or Section 22508.5(a), the election is to be made by
a letter filed in the office of the system in which the employee has elected coverage.
The letter should include the following information:
- The person is a member of STRS who has accepted employment in a position for which
he/she may elect to continue retirement system coverage under STRS and that he/she wishes
to continue coverage under STRS.
OR
- The person is a member of PERS who has accepted employment in a position for which
he/she may elect to continue coverage under PERS and that he/she wishes to continue
coverage under PERS.
Section 22509(c), provides that once the election has been accepted by
the elected system, it becomes effective as of the first day of employment in the position
that qualified the employee to make the election.
STRS has developed a job aid which will guide its employers through the
reporting procedures for individuals who accept employment by the Board of Governors of
the California Community Colleges to perform duties that require membership in a different
public retirement system.
Any questions regarding this Employer Circular or retirement system
coverage should be addressed to your STRS Reporting Section Technician or Analyst.
I. STRS Member who was or is employed by a community college
district to perform creditable service accepts
employment by the Board of Governors of the California Community
Colleges to perform duties that require membership in a different
public retirement system (e.g., PERS). Only a person
who has achieved plan vesting (earned 5 years of service credit)
is eligible to elect to continue as a member of the State
Teachers' Retirement System.
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(A) Full-Time or Part-Time Employment that qualifies for mandatory PERS membership
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(1)Within 10 working days of the date of hire, notify the employee of his/her right to
elect (within 60 days after the employment date) to continue membership in STRS for
service in the new position. Provide election information to employee.
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(2) Report qualifying service to PERS until the employee elects STRS.
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(3) If the employee does not make an election within the 60 day period, continue to
report the service to PERS.
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(4) If the employee elects coverage under STRS, submit the election letter to STRS and a
copy to PERS. Report to STRS all service in the position since the employment date. Submit
an adjustment to PERS to "back out" the previously reported service in the
position.
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1. STRS Defined Benefit Plan
II. PERS Member who was or is employed by the Board of Governors of the California
Community Colleges accepts employment in a community college to perform STRS
"creditable service" as defined in Education Code section 22119.5 (copy
attached):
| A. Part-Time Employment less than minimum required for mandatory STRS
membership |
B. Full-Time Employment, or Part-Time Employment that qualifies for mandatory
STRS membership |
| 1. Within 30 days of the date of hire, notify the employee of his/her right to elect
into STRS membership pursuant to Education Code sections 22455.5 and 22515. |
1. Within 10 working days of the date of hire, notify the employee of his/her right to
elect (within 60 days after the employment date) to continue membership in PERS for
creditable service in the new position. Provide election information to employee. |
| 2. Report non-qualifying creditable service to STRS with a Member Code 2 and
applicable Assignment Code. |
2. Report qualifying creditable service to STRS with a Member Code 1 until the
employee elects PERS. |
| 3. Monitor creditable service to determine if and when the employee qualifies for STRS
membership. |
3. If the employee does not make an election within the 60 day period, continue
to report the creditable service to STRS. |
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4. If the employee elects coverage under PERS, submit the election letter to PERS and
a copy to STRS. Report to PERS all creditable service in the position since the employment
date. Submit an adjustment to STRS to "back out" the previously reported service
in the position. |
2. A person employed to perform "creditable service"
for less than 50 percent of the full-time equivalent may elect to become a participant in
the STRS Cash Balance Plan provided the employer has taken action to provide the Cash
Balance Plan to all employees.
NOTE: An employee may be employed concurrently to perform service in a position subject
to membership in PERS and to perform creditable service in a position subject to
membership in STRS. Employment in either position may be full-time or less than full-time.
Employment in a position that is not sufficient to qualify for
mandatory membership in the STRS Defined Benefit Plan may be subject to coverage by Social
Security or an alternate plan provided by the employer.
If the community college district offers the STRS Cash Balance Plan,
the employee's creditable service may be subject to coverage by that plan. If the employer
offers the Cash Balance Plan and the employee is a member of PERS who has accepted a
position to perform "creditable service," consult the employer reporting
procedures for the Cash Balance Plan before proceeding.
"Creditable Service"
Education Code
22119.5 (a) "Creditable service" means any of the following
activities performed for an employer in a position requiring a credential, certificate, or
permit pursuant to this code or under the appropriate minimum standards adopted by the
Board of Governors of the California Community Colleges or under the provisions of an
approved charter for the operation of a charter school for which the employer is eligible
to receive state apportionment or pursuant to a contract between a community college
district and the United State Department of Defense to provide vocational training.
(1) The work of teachers, instructors, district interns, and academic employees
employed in the instructional program for pupils, including special programs such as adult
education regional occupation programs, child care centers, and prekindergarten programs
pursuant to Section 22161.
(2) Education or vocational counseling, guidance, and placement services.
(3) The work of directors, coordinators, and assistant administrators who plan courses
of study to be used in California public schools, or research connected with the
evaluation or efficiency of the instructional program.
(4) The selection, collection, preparation, classification, demonstration, or
evaluation of instructional materials of any course of study for use in the development of
the instructional program in California public schools, or other services related to
school curriculum.
(5) The examination, selection, in-service training, or assignment of teachers,
principals or other similar personnel involved in the instructional program.
(6) School activities related to, and an outgrowth of, the instructional and guidance
program of the school when performed in addition to other activities described in this
section within the hours considered normal on a full-time basis for full-time employees of
the employer.
(7) The work of nurses, physicians, speech therapists, psychologists, audiometrists,
audiologists, and other school health professionals.
(8) Services as a school librarian.
(9) The work of employees who are responsible for the supervision of persons or
administration of the duties described in this section.
(b) "Creditable service" also means the work of superintendents of California
public schools.
(c) The board shall have final authority for determining creditable service to cover
any activities not already specified.
"Member"
Education Code
22146 "Member" means any person, unless excluded under other
provisions of this part, who has performed creditable service as defined in Section
22119.5 and has earned compensation for that service and has not received a refund for
that service. A member's rights and obligations under this part shall be determined by the
applicability of subdivision (a), (b), or (d), unless the member's rights and obligations
are determined under other provisions of this part.
(a) An active member is a member who is not retired or disabled and who earns
compensation during the school year.
(b) An inactive member is a member who is not retired or disabled and who, by the pay
period ending June 30, has not earned compensation during the school year.
(c) A disabled member is a member to whom a disability allowance is payable under
Section 24006.
(d) A retired member is a member who has terminated employment and has retired for
service under the provisions of Section 24204 or has retired for disability under the
provisions of Section 24105, and to whom a retirement allowance is therefore payable.
NOTE: Chapter 592, Statutes 1995, also included the following intent
section.
It is the intent of the Legislature in adding Section 22146 to the Education Code in
Section 3 of this act and in repealing Sections 22502, 22503, 22505, 22506, 22507, 22602,
22603, 22604, 22605, 22606, 22607, and 22608 of the Education code in Sections 4 to 15,
inclusive, of this act to clarify the status of the active, inactive, disabled, and
retired members of the State Teachers' Retirement System. Those provisions are
intended to be technical and nonsubstantive and shall not be construed to affect in any
manner the eligibility or rights of any person to any benefits under the State Teachers' Retirement Law.
22515 Persons excluded from membership pursuant to Sections 22601.5, 22602, and
22604 may elect membership in the plan at any time while employed to perform creditable
service. The election is irrevocable, shall be in writing, and shall be filed in the
office of this system prior to submission of contributions. The amendments to this section
enacted during the 1995-96 Regular Session shall be deemed to have become operative on
July 1, 1996.
Employer Information Circular 98-1 posted: December 2, 1998
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