Today's Law As Amended


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AB-1770 State Teachers’ Retirement System: military service.(2005-2006)



As Amends the Law Today


SECTION 1.

 Section 28001 of the Education Code is amended to read:

28001.
 (a) The participant who returns to employment with the same employer which that  had employed the participant immediately prior to the eligible period of service in the uniformed services, in accordance with the requirements of Chapter 43 (commencing with Section 4301) of Title 38 of the United States Code, shall be treated as not having incurred a break in the performance of creditable service by reason of that participant’s period or periods of service in the uniformed services. The length of each period of service in the uniformed services shall not exceed five years unless otherwise permitted pursuant to Section 28004. Each period of service in the uniformed services by the participant shall, upon that participant’s return to employment with the same employer or employers which that  had employed the participant immediately prior to the eligible period of service in the uniformed services, constitute employment toward the performance of creditable service provided service, if  that participant elects to remit the employee contributions that would have been made during the period of service in the uniformed services. The remittance of employee contributions shall be calculated pursuant to Sections 26501 and 28003. In no event shall that remittance exceed the amount the participant would have been required to contribute during that period of performance of creditable service had the participant remained continuously employed by the last employer and not served in the uniformed services throughout that period.
(b) Notwithstanding Section 26506, remittance of employee contributions in accordance with subdivision (a) shall be made by the employer pursuant to Section 26502 upon the employer’s receipt of written consent of the participant specifying a schedule of repayments. That remittance shall commence during the period beginning with the date of return to employment and may continue for three times the period of the participant’s eligible period of service in the uniformed services, not to exceed five years. The plan’s receipt of the remittance payments to the plan with respect to the Cash Balance Benefit Program shall be credited pursuant to Chapter 7 of this part. Contributions, interest, and additional earnings credits the participant would have earned had the participant remained continuously employed during the period of eligible  Interest on the payments of remitted employee contributions made for the period of  service in the uniformed services shall be credited to employee and employer accounts retroactively upon receipt of the employee contributions.  not be credited in the participant’s account until after those payments are received and only prospectively to the participant’s account in accordance with Section 26604.  Upon receipt of the remittance payments to the plan, the payments shall be subject to the same terms and conditions under the program as if the payments had been employee contributions made by the participant had the participant not served for a period in the uniformed services. In no event shall the current year contributions and contributions made for purposes of purchasing service exceed the maximum exclusion allowance as set forth in the Internal Revenue Code.
(c) A participant shall not be required to make the contributions to his or her employee account pursuant to subdivision (a) for the 12‑month period immediately following his or her entry into the eligible period of service in the uniformed services, if that service was performed on or after September 11, 2001, and the participant returned to employment prior to July 30, 2006, with the same employer that had employed the participant immediately prior to the eligible period of service. However, upon receipt of the employer contributions made pursuant to Section 28002, a credit shall be made to the participant’s account in the amount of the employee contributions the participant would have otherwise made to his or her employee account pursuant to subdivision (a) for the eligible period of service in the uniformed services. This subdivision does not modify the employer’s obligation to make contributions on behalf of the participant pursuant to Section 28002.
SEC. 2.
 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
To provide urgently needed assistance to state military personnel, it is necessary that this act take effect immediately.