The purpose of this circular is to inform employers of the amendment of
the Permissive Election of STRS Membership Defined Benefit Plan Form (EO 350), and to
notify employers of the revision of the EO 350 form to include the employer's
certification, "Notification of Right to Elect STRS Membership" pursuant to
Education Code section 22455.5. The revised form will be identified as the
"Permissive Election and Acknowled-ment of Receipt of STRS Defined Benefit Plan
Membership Information (MR 350)".
Education Code section 22515 permits an employee who performs
creditable service (as defined in Section 22119.5), and who is excluded from mandatory
membership pursuant to Section 22601.5, 22602 or 22604, to elect membership in the State
Teachers' Retirement System Defined Benefit Plan at any time while employed to perform
creditable service. The election must be in writing and filed at STRS prior to submission
of contributions to the plan. The employee's membership date can be no earlier than the
first day of the pay period -iuring which the election form is signed.
This election into membership in the STRS Defined Benefit Plan is irrevocable for
all future employment to perform creditable service. This election may be canceled only by
terminating all creditable service and receiving a refund of accumulated retirement
contributions.
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, such as the STRS Cash Balance Plan. Consult the
employer reporting procedures for the Cash Balance Plan.
A copy of the Permissive Election and Acknowledgment of Receipt of STRS Defined Benefit
Plan Membership Information (MR 350) is attached for your convenience. You may reproduce
the attached form or order a new supply of the revised form from the STRS Business
Services Office.
Also attached is a JOB AID to assist employers in the submission
of the Permissive Election and Acknowledgment of Receipt of STRS Defined Benefit Plan
Membership Information form. Please note that in the event an employee elects
STRS membership and "creditable service" is not performed until sometime later,
the employer is required to submit the MR 350 form and employee statistical information
(MR 87) to STRS at the time of election. The employer should not hold the election
form until creditable service is performed. Once "creditable service" is
performed and reported to STRS, the STRS technician will update the membership date
to the employee's account.
Education Code Section 22515 permits an employee who performs
creditable service (as defined in Section 22119.5), and who is excluded from mandatory
membership pursuant to Section 22601.5, 22602, or 22604, to elect membership in the State
Teachers’ Retirement System Defined Benefit Plan at any time while employed to
perform creditable service.
(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 Section 22455.5.
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(2) If the employee elects STRS membership, submit the MR 350 form to STRS with the
MR87 diskette with a transaction code 81.
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(3) The employee’s membership effective date can be no earlier than the first day
of the pay period during which the creditable service is performed. *
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(5) If the employee does not make an election report non-qualifying creditable
service to STRS with a Member Code 2 and applicable Assignment Code and file the MR 350 in
the employee’s personnel file.
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(6) Monitor creditable service to determine if and when the employee qualifies for STRS
mandatory membership unless the employee is participating in the STRS CB Plan.
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NOTE: This election into membership in the STRS Defined Benefit Plan is irrevocable
for all future employment to perform creditable service. This election may be canceled
only by terminating all creditable service and receiving a refund of accumulated
retirement contributions.
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, such as the STRS Cash Balance Plan.
*Submit the MR 350 form and employee statistical information (MR 87) to STRS at the
time of election. STRS technician will update the membership date once creditable
service is performed.
Retirement System Election (MR 350 - REV. 06/01)
Employer Information Circular 98-2 posted: December 2, 1998
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