Penalties and Interest for Late Remittances and Late and Unacceptable Reporting by Employers

The California Education Code requires the assessment of penalties and interest for late or inaccurate reporting of retirement data and payment of contributions from employers. Late and inaccurate data result in inaccurate benefit payments and late contributions result in lost investment opportunities. To ensure consistent and transparent assessment of penalties and interest, CalSTRS is drafting regulations in accordance with current laws.

Since August 2010, CalSTRS has participated in meetings throughout the state, reaching out to employers and other advocacy groups, to provide information and request feedback on the draft penalties and interest regulations.

On Friday, March 18, 2011, the Notice of Proposed Rulemaking for the Penalties and Interest regulations will be published in the California Regulatory Notice Register. Interested parties are invited to participate in the rulemaking process by submitting written comments during the 45-day written comment period or by attending the public hearing on June 3, 2011. Please see the Notice of Proposed Rulemaking for more details.

Below are links to the documents that currently make up the rulemaking file for the Penalties and Interest regulations:

Posted on March 17, 2011. Public comment period ends May 2, 2011.

• STD. 400 – Notice Publication/Regulations Submission (PDF; 74KB)
• Notice of Proposed Rulemaking (PDF; 113KB)
• Initial Statement of Reasons (PDF; 62KB)
• Regulation Text (PDF;106KB)
• STD. 399 – Economic and Fiscal Impact Statement (PDF; 723KB)
• "CalSTRS F496 File Specification," revised on March 1, 2011 (PDF; 244KB)
• "CalSTRS VDF File Specification," revised on March 1, 2011 (PDF; 480KB)
• Statement of Mailing Notice (PDF; 13KB)

Posted on August 22, 2011. Public comment period ends October 6, 2011.

• Notice of Modifications to Text of Proposed Regulations (PDF; 11KB)
• Modified Regulation Text (PDF; 42KB)
• Statement of Availability of Modified Text (PDF; 159KB)

Posted on October 28, 2011. Public comment period ends November 16, 2011.

• Notice of Modifications to Text of Proposed Regulations (PDF; 11KB)
• Modified Regulation Text (PDF; 44KB)
• Statement of Availability of Modified Text (PDF; 62KB)

Posted on February 27, 2012.
Submitted to Office of Administrative Law on February 17, 2012.
Regulatory Action Number 2012-0217-02S

• Final Statement of Reasons (PDF; 97KB)
• Final Text of Regulation (PDF; 44KB)

For more information, please contact:

Tifani Vincent
Office of the General Counsel
California State Teachers' Retirement System
P.O. Box 15275, MS-03
Sacramento, CA 95851-0275
Telephone: (916) 414-1720
Fax: (916) 414-1722
E-mail: Regulations@CalSTRS.com

The backup contact person for these inquiries is:

Joycelyn Martinez-Wade, Legislative Advocate
Legislative Affairs
California State Teachers' Retirement System
P.O. Box 15275, MS-14
Sacramento, CA 95851-0275
Telephone: (916) 414-1994
Fax: (916) 414-1993
E-mail: Regulations@CalSTRS.com