(a) Notwithstanding Sections 22714, 44929, and 87488, an additional two years of service and an additional two years of age shall be credited under this part to a member of the Defined Benefit Program if the following conditions exist:
(1) The member is credited with five or more years of service credit and retires for service under the provisions of Chapter 27 (commencing with Section 24201) within the period designated in the memorandum of understanding or formal action described in paragraph (6).
(2) The employer determines that the best interests of the school district, community college district, or county office of education would be served by encouraging certificated or academic employees to retire for service and that the retirement will result in a net savings to the district or county office of education.
(3) The employer transfers to the retirement fund an amount determined by the Teachers' Retirement Board to equal the actuarial equivalent of the difference between the allowance the member receives after receipt of service and age credit pursuant to this section and the amount the member would have received without the service and age credit and an amount determined by the Teachers' Retirement Board to equal the actuarial equivalent of the difference between the purchasing power protection supplemental payment the member receives after receipt of service and age credit pursuant to this section and the amount the member would have received without the service and age credit. The payment for purchasing power shall be deposited in the Supplemental Benefit Maintenance Account established by Section 22400 and shall be subject to Section 24415. The transfer to the retirement fund shall be made in a manner and time period, not to exceed eight years, that is acceptable to the Teachers' Retirement Board.
(4) (A) A school district shall demonstrate and certify to the county superintendent that the formal action taken would result in a net savings to the district.
(B) The county superintendent shall certify to the Teachers' Retirement Board that the result specified in subparagraph (A) can be demonstrated. The certification shall include, but not be limited to, the information specified in subdivision (c) of Section 14502.1.
(C) The school district shall reimburse that county superintendent for all costs to the county superintendent that result from the certification.
(5) (A) The county office of education shall demonstrate and certify to the Superintendent of Public Instruction that the formal action taken would result in a net savings to the county office of education.
(B) The Superintendent of Public Instruction shall certify to the Teachers' Retirement Board that the result specified in subparagraph (A) can be demonstrated. The certification shall include, but not be limited to, the information specified in subdivision (c) of Section 14502.1.
(C) The Superintendent of Public Instruction may request reimbursement from the county office of education for all administrative costs that result from the certification.
(6) (A) A community college district shall demonstrate and certify to the chancellor's office that the formal action taken would result in a net savings to the district.
(B) The chancellor shall certify to the Teachers' Retirement Board that the result specified in subparagraph (A) can be demonstrated. The certification shall include, but not be limited to, the information specified in subdivision (c) of Section 84040.5.
(C) The chancellor may request reimbursement from the community college district for all administrative costs that result from the certification.
(7) This section has been made applicable to the employer and the member pursuant to a memorandum of understanding between the employer and the representative employee organization or, for members who are not represented by a representative employee organization, this section has been made applicable to all of the members employed by the school district, community college district, or county office of education, pursuant to a formal action of the governing board. The employer shall transfer the required amount for all eligible employees who retire pursuant to this section.
(8) The employer transmits to the retirement fund the administrative costs incurred by the system in implementing this section, as determined by the Teachers' Retirement Board.
(b) The amount of additional service credit and additional age shall each be two years regardless of credited service or age. A member of the Defined Benefit Program who is credited with additional age and service under this section may not be credited with additional service under Section 22714.
(c) Any member of the Defined Benefit Program who is credited with additional age and service under this section and who subsequently reinstates from retirement shall forfeit the additional age and service credit granted under this section.
(d) Any member of the Defined Benefit Program who retires under this part for service under Chapter 27 (commencing with Section 24201) with age and service credit granted under this section and who takes any job with the school district, community college district, or county office of education that granted the member the age and service credit less than five years after receiving the credit shall forfeit the ongoing benefit he or she receives from the additional age and service credit granted under this section.
(e) This section is not applicable to any member otherwise eligible if the member receives any unemployment insurance payments arising out of employment with an employer subject to this part during a period extending one year beyond the effective date of the memorandum of understanding or formal action, or if the member is not otherwise eligible to retire for service without the additional age or service credit available under this section.
(f) This section shall become operative on January 1, 2004, or 120 days after Assembly Bill No. 1207 of the 2003-04 Regular Session is chaptered, whichever is later, and remain in effect only until January 1, 2005, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2005, deletes or extends that date.
(Amended by Stats. 2004, Ch. 935, Sec. 2.)
Reference:
Education Code 14502.1
Education Code 22400
Education Code 22714
Education Code 24201
Education Code 24415
Education Code 44929
Education Code 84040.5
Education Code 87488