Chapter 17 of the Teachers’ Retirement Law requires that penalties and interest be assessed on employers for late or inaccurate reporting of retirement data and payment of contributions. Effective July 1, 2012, the Penalties and Interest Regulations (Article 15.5 of Chapter 1 of Division 3 of Title 5, California Code of Regulations) implemented consistent and transparent assessment of penalties and interest.

These amendments to the regulation establish a penalty rate that is the greater of the following: the state rate in effect each March 1 immediately preceding the date the late contribution is received or 5 percent.

The board approved the proposed regulations June 11, 2015, and directed CalSTRS to give public notice.

The board adopted the final regulations November 5, 2015. The regulations were filed with the Secretary of State on February 26, 2016, and are effective March 1, 2016.

OAL File Number Z-2015-0716-01

Regulatory Action Number 2016-0114-015

For accessible versions of files on this page, contact ADACoordinator@CalSTRS.com.

Posted on March 4, 2016

• Notice of Approval of Regulatory Action
• STD 400 with Secretary of State endorsement (added March 14, 2016)
• Final Regulation Text
• Final Statement of Reasons
• Economic and Fiscal Impact Statement

Posted on July 28, 2015

Written comment period closed on September 14, 2015

• Notice of Proposed Rulemaking
• Text of Proposed Regulations
• Initial Statement of Reasons
• Economic and Fiscal Impact Statement (Standard Form 399)