Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) A late
contribution shall be subject to a penalty if that contribution is received
after March 1 of the state fiscal year that immediately follows the state
fiscal year in which the contribution was due.
(1) The penalty shall be assessed on the
creditable compensation upon which the late contribution was based. For
purposes of this subdivision, creditable compensation shall include only
creditable compensation for which member contributions are credited under the
Defined Benefit Program.
(2) The
penalty shall be the greater of the following:
(A) The state appropriation rate, pursuant to
Sections
22954,
22955 and
22955.1 of
the Education Code, that is in effect on the first day of March immediately
preceding the date the contribution was received.
(B) Five
percent.
(b)
Interest on late contributions shall be imposed as follows:
(1) If less than 95 percent of contributions
due have been received by the sixth working day, interest shall be charged on
the balance of those contributions due and compounded daily based on the
regular interest rate in effect that day.
(2) For contributions received more than 15
working days after the date those contributions are due, interest shall be
charged on the balance of contributions due and compounded daily based on the
regular interest rate in effect that day.
(c) The penalty and interest assessed on late
contributions provided for in this section shall not apply to adjustments made
to contributions for a month prior to the effective date of this
article.
(d) Adjustments to
contributions remitted in a prior month shall not be subject to the penalty and
interest assessed on late contributions provided for in this section if all of
the following are true:
(1) The adjustments
are made for all members of a class of employees;
(2) The adjustments are made pursuant to a
written employment agreement with an employer or with an exclusive
representative entered into by an employer, pursuant to Chapter 10.7
(commencing with Section
3540) of Division 4 of Title 1 of
the Government Code;
(3) The
adjustments become effective contemporaneously with the effective date of the
written employment agreement or the effective date of the provision in the
agreement providing for future increases in compensation; and
(4) The adjustments are remitted to the
system within 90 days of the effective date of the written employment agreement
or the effective date of the provision in the agreement providing for future
increases in compensation.
(e) For an employee employed as a substitute
teacher, or on a part-time basis or a full-time basis with an additional
part-time position, contributions for the substitute or part-time position that
are otherwise late shall not be subject to the penalty and interest assessed on
late contributions provided for in this section if all of the following are
true:
(1) The date the substitute or part-time
position is paid is based upon a published salary schedule;
(2) That date is no more than 31 calendar
days following the last day of the month in which the compensation being
reported was earned; and
(3) 95
percent of the contributions due are received five working days immediately
following the date the substitute or part-time position is paid, and the
balance of contributions due are received no more than 15 working days
following the date the employee is paid.
(f) Contributions that are otherwise late
shall not be subject to the penalty and interest assessed on late contributions
provided for in this section during the following periods of time:
(1) The period of time beginning on the date
an application for workers' compensation is filed with the Workers'
Compensation Appeals Board until the date compensation is awarded, if the
awarded compensation increases the amount of contributions due for that period
of time. 95 percent of the contributions that are exempt under this subdivision
shall be due five working days immediately following the month in which
compensation is awarded and shall be late thereafter, and the balance of
contributions are due 15 working days following the month in which compensation
is awarded and shall be late thereafter.
(2) Any period of time that directly results
from the operation of a state or federal statute or regulation which requires a
retroactive change in the creditable compensation paid to a member for prior
service, if that retroactive change results in a change in the amount of
contributions due for that period of time. 95 percent of the contributions that
are exempt under this subdivision shall be due five working days immediately
following the month in which the period of time expires and shall be late
thereafter, and the balance of contributions shall be due 15 working days
following the month in which the period of time expires and shall be late
thereafter.
1. New
section filed 4-2-2012; operative 7-1-2012 pursuant to Government Code section
11343.4
(Register 2012, No. 14).
2. Amendment of subsection (a), new
subsections (a)(1)-(a)(2)(B), amendment of subsections (b)(1), (e)(3) and
(f)(1)-(2) and amendment of NOTE filed 2-26-2016; operative 3-1-2016 pursuant
to Government Code section
11343.4(b)(3)
(Register 2016, No. 9).
Note: Authority cited: California Constitution, Article
XVI, Section 17; and Sections
22207,
22213,
22214,
22250 and
22305,
Education Code. Reference: Sections
22119.2,
22119.3,
22905,
23002 and
23003,
Education Code.
