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CalSTRS 2% at 62 compensation paid each pay period

The California State Teachers’ Retirement System and the Teachers’ Retirement Board propose to adopt a new regulation, in the form of Section 27650 in Article 1 of Chapter 2.5, Division 3, Title 5 of the California Code of Regulations, after considering all comments, objections and recommendations regarding the proposed action.

Education Code section 22119.3 requires that compensation be paid “each pay period the creditable service is performed” for it to be creditable to CalSTRS for 2% at 62 Defined Benefit Program members. Education Code section 26139.5 requires that salary be paid “each pay period in cash by an employer to a participant for creditable service performed” for it to be creditable to CalSTRS for Cash Balance Benefit Program participants subject to the Public Employees’ Pension Reform Act of 2013.

To further clarify and make specific these statutory requirements, the proposed regulation provides that remuneration paid for the service performed within 30 days of the beginning or end of a pay period is deemed to be paid in a pay period in which a member or participant performs creditable service.

The board adopted the final regulations on November 2, 2023. The regulations were filed with the Secretary of State on January 22, 2024 and are effective April 1, 2024.

OAL File Number Z-2023-0711-02

Regulatory Action Number 2023-1213-02S

Posted on February 2, 2024

Notice of Approval of Regulatory ActionFinal Regulation TextFinal Statement of Reasons

Posted on July 21, 2023

Written comment period closed on September 13, 2023.

Notice of Proposed RulemakingText of Proposed RegulationsInitial Statement of ReasonsEconomic and Fiscal Impact Statement (Standard Form 399)