California Legal Codes and Statutes

Chapter 27 - Service Retirement

California Education Code — §§ 24201-24221

Sections (7)

§ 24214
Current Version

Amended by Stats. 2023, Ch. 885, Sec. 2. (SB 765) Effective January 1, 2024. Inoperative on July 1, 2024, and will resume operation on July 1, 2026, by its own provisions. See later operative version added by Sec. 3 of Stats. 2023, Ch. 885.

(a)A member retired for service under this part may perform retired member activities, but the member shall not make contributions to the retirement fund or accrue service credit based on compensation earned from that service. The employer shall maintain accurate records of the earnings of the retired member and report those earnings monthly to the system and retired member as described in Section 22461.
(b)If a member is retired for service under this part, the annualized rate of pay for retired member activities performed by that member shall not be less than the minimum, nor exceed the maximum, paid by the employer to other employees performing comparable duties.
(c)A member retired for service

under this part shall not be required to reinstate for performing retired member activities.

(d)A member retired for service under this part may earn compensation for performing retired member activities in any one school year up to the limitation specified in subdivision (f) without a reduction in their retirement allowance.
(e)The postretirement compensation limitation provisions set forth in this section are not applicable to compensation earned for the performance of retired member activities that are not wholly or in part supported by state, local, or federal funds.
(f)(1) The limitation that shall apply to the compensation paid in cash to the retired member for performance of retired member activities, excluding reimbursements paid by an employer for expenses incurred by the member in

which payment of the expenses by the member is substantiated, shall, in any one school year, be an amount calculated by the system each July 1 equal to one-half of the median final compensation of all members who retired for service during the fiscal year ending in the previous calendar year.

(2)For written agreements pertaining to the performance of retired member activities entered into, extended, renewed, or amended on or after January 1, 2014, the limitation in paragraph (1) shall also apply to payments made for the performance of retired member activities, including, but not limited to, those for participation in a deferred compensation plan; to purchase an annuity contract, tax-deferred retirement plan, or insurance program; and for contributions to a plan that meets the requirements of Section 125, 401(a), 401(k), 403(b), 457(b), or 457(f) of Title 26 of the United States Code when the cost is covered by an employer.
(g)If a member retired for service under this part earns compensation for performing retired member activities, in excess of the limitation specified in subdivision (f), the member’s retirement allowance shall be reduced by the amount of the excess compensation. The amount of the reduction in an individual month shall be no more than the monthly allowance payable in that month, and the total amount of the reduction shall not exceed the amount of the annual allowance payable under this part for the fiscal year in which the excess compensation was earned after any reduction made in accordance with subdivision (h) of Section 24214.5.
(h)The language of this section derived from the amendments to the section of this number added by Chapter 394 of the Statutes of 1995, enacted during the 1995–96 Regular Session, is deemed to have become operative on July 1, 1996.
(i)This section shall become inoperative on July 1, 2024, and shall become operative on July 1, 2026.
Future Version

Added by Stats. 2023, Ch. 885, Sec. 3. (SB 765) Effective January 1, 2024. Operative July 1, 2024, by its own provisions. Inoperative July 1, 2026, by its own provisions. Repealed as of January 1, 2027, by its own provisions.

(a)A member retired for service under this part may perform retired member activities, but the member shall not make contributions to the retirement fund or accrue service credit based on compensation earned from that service. The employer shall maintain accurate records of the earnings of the retired member and report those earnings monthly to the system and retired member as described in Section 22461.
(b)If a member is retired for service under this part, the annualized rate of pay for retired member activities performed by that member shall not be less than the minimum, nor exceed the maximum, paid by the employer to other employees performing comparable duties.
(c)A member

retired for service under this part shall not be required to reinstate for performing retired member activities.

(d)A member retired for service under this part may earn compensation for performing retired member activities in any one school year up to the limitation specified in subdivision (f) without a reduction in the member’s retirement allowance.
(e)The postretirement compensation limitation provisions set forth in this section are not applicable to compensation earned for the performance of retired member activities that are not wholly or in part supported by state, local, or federal funds.
(f)(1) The limitation that shall apply to the compensation paid in cash to the retired member for performance of retired member activities, excluding reimbursements paid by an employer for expenses

incurred by the member in which payment of the expenses by the member is substantiated, shall, in any one school year, be an amount calculated by the system each July 1 equal to 70 percent of the median final compensation of all members who retired for service during the fiscal year ending in the previous calendar year.

(2)For written agreements pertaining to the performance of retired member activities entered into, extended, renewed, or amended on or after January 1, 2014, the limitation in paragraph (1) shall also apply to payments made for the performance of retired member activities, including, but not limited to, those for participation in a deferred compensation plan; to purchase an annuity contract, tax-deferred retirement plan, or insurance program; and for contributions to a plan that meets the requirements of Section 125, 401(a), 401(k), 403(b), 457(b), or 457(f) of Title 26 of the United States Code when the cost is covered by an

employer.

(g)If a member retired for service under this part earns compensation for performing retired member activities, in excess of the limitation specified in subdivision (f), the member’s retirement allowance shall be reduced by the amount of the excess compensation. The amount of the reduction in an individual month shall be no more than the monthly allowance payable in that month, and the total amount of the reduction shall not exceed the amount of the annual allowance payable under this part for the fiscal year in which the excess compensation was earned after any reduction made in accordance with subdivision (h) of Section 24214.5.
(h)The language of this section derived from the amendments to the section of this number added by Chapter 394 of the Statutes of 1995, enacted during the 1995–96 Regular Session, is deemed to have become operative on July 1, 1996.
(i)This section shall become operative on July 1, 2024. This section shall become inoperative as of July 1, 2026, and as of January 1, 2027, is repealed.
§ 24214.5
Current Version

Amended by Stats. 2023, Ch. 885, Sec. 4. (SB 765) Effective January 1, 2024. Inoperative on July 1, 2024, and will resume operation on July 1, 2026, by its own provisions. See later operative version added by Sec. 5 of Stats. 2023, Ch. 885.

(a)(1) Notwithstanding subdivision (f) of Section 24214, the postretirement compensation limitation that shall apply to the compensation paid in cash to the retired member for performance of retired member activities, excluding reimbursements paid by an employer for expenses incurred by the member in which payment of the expenses by the member is substantiated, shall be zero dollars ($0) during the first 180 calendar days after the most recent retirement of a member retired for service under this part.
(2)For written agreements pertaining to the performance of retired member activities entered into, extended, renewed, or amended on or after January 1, 2014, the limitation in paragraph (1) shall also apply to payments made for the

performance of retired member activities, including, but not limited to, those for participation in a deferred compensation plan; to purchase an annuity contract, tax-deferred retirement plan, or insurance program; and for contributions to a plan that meets the requirements of Section 125, 401(a), 401(k), 403(b), 457(b), or 457(f) of Title 26 of the United States Code when the cost is covered by an employer.

(b)If the retired member has attained normal retirement age at the time the compensation is earned, subdivision (a) shall not apply and Section 24214 shall apply if the appointment has been approved by the governing body of the employer in a public meeting, as reflected in a resolution adopted by the governing body of the employer prior to the performance of retired member activities, expressing its intent to seek an exemption from the limitation specified in subdivision (a). Approval of the appointment may not be placed on a consent

calendar. Notwithstanding any other provision of Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code or any state or federal law incorporated by Section 7927.705 of the Government Code, the resolution shall be subject to disclosure by the entity adopting the resolution and the system. The resolution shall include the following specific information and findings:

(1)The nature of the employment.
(2)A finding that the appointment is necessary to fill a critically needed position before 180 calendar days have passed.
(3)A finding that the member is not ineligible for application of this subdivision pursuant to subdivision (d).
(4)A finding that the termination of employment of the retired member with the employer is not the

basis for the need to acquire the services of the member.

(c)Subdivision (b) shall not apply to a retired member whose termination of employment with the employer is the basis for the need to acquire the services of the member.
(d)Subdivision (b) shall not apply if the retired member received additional service credit pursuant to Section 22714 or 22715 or received from any public employer any financial inducement to retire. For purposes of this section, “financial inducement to retire” includes, but is not limited to, any form of compensation or other payment that is paid directly or indirectly by a public employer to the member, even if not in cash, either before or after retirement, if the participant retires for service on or before a specific date or specific range of dates established by a public employer on or before the date the inducement is offered. The system shall

liberally interpret this subdivision to further the Legislature’s intent to make subdivision (b) inapplicable to members if the member received a financial incentive from any public employer to retire or otherwise terminate employment with a public employer.

(e)The Superintendent, the county superintendent of schools, or the chief executive officer of a community college shall submit all documentation required by the system to substantiate the eligibility of the retired member for application of subdivision (b), including, but not limited to, the resolution adopted pursuant to that subdivision.
(f)The documentation required by this section shall be received by the system prior to the retired member’s performance of retired member activities.
(g)Within 30 calendar days after the receipt of all documentation

required by the system pursuant to this section, the system shall inform the entity seeking application of the exemption specified in subdivision (b), and the retired member whether the compensation paid to the member will be subject to the limitation specified in subdivision (a).

(h)If a member retired for service under this part earns compensation for performing retired member activities in excess of the limitation specified in subdivision (a), the member’s retirement allowance shall be reduced by the amount of the excess compensation. The amount of the reduction in an individual month shall be no more than the monthly allowance payable in that month, and the total amount of the reduction shall not exceed the amount of the allowance payable during the first 180 calendar days, after a member retired for service under this part.
(i)The amendments to this section enacted during

the first year of the 2013–14 Regular Session shall apply to compensation paid on or after January 1, 2014.

(j)This section shall become inoperative on July 1, 2024, and shall become operative on July 1, 2026.
Future Version

Added by Stats. 2023, Ch. 885, Sec. 5. (SB 765) Effective January 1, 2024. Operative July 1, 2024, by its own provisions. Inoperative July 1, 2026, by its own provisions. Repealed as of January 1, 2027, by its own provisions.

(a)(1) Notwithstanding subdivision (f) of Section 24214, the postretirement compensation limitation that shall apply to the compensation paid in cash to the retired member for performance of retired member activities, excluding reimbursements paid by an employer for expenses incurred by the member in which payment of the expenses by the member is substantiated, shall be zero dollars ($0) during the first 180 calendar days after the most recent retirement of a member retired for service under this part.
(2)For written agreements pertaining to the performance of retired member activities entered into, extended, renewed, or amended on or after January 1, 2014, the limitation in paragraph (1) shall also apply to payments

made for the performance of retired member activities, including, but not limited to, those for participation in a deferred compensation plan; to purchase an annuity contract, tax-deferred retirement plan, or insurance program; and for contributions to a plan that meets the requirements of Section 125, 401(a), 401(k), 403(b), 457(b), or 457(f) of Title 26 of the United States Code when the cost is covered by an employer.

(b)Subdivision (a) shall not apply and Section 24214 shall apply if the Superintendent, the county superintendent of schools, or the chief executive officer of a community college submits a request for exemption to the system with certification, under penalty of perjury, of the following:
(1)The nature of the employment.
(2)That the appointment is necessary to fill a critically needed position

before 180 calendar days have passed.

(3)That the member is not ineligible for application of this subdivision pursuant to subdivision (d).
(4)That the termination of employment of the retired member with the employer is not the basis for the need to acquire the services of the member.
(5)That the employer did not have a reduction-in-force layoff pursuant to Section 45117, 44955, or 44955.5, or pursuant to any other similar state law authorizing the termination of its employees, within the prior 18 months.
(c)The Superintendent, a county superintendent of schools, or a chief executive officer of a community college district shall provide a written copy or written copies of the completed documentation required by this section submitted to the system

pursuant to subdivision (b) that substantiates the need for the exemption to the exclusive representative of employees prior to the retired member’s performance of retired member activities.

(d)Subdivision (b) shall not apply to a retired member if any of the following conditions exist:
(1)The member has not attained normal retirement age at the time the compensation is earned.
(2)The member’s termination of employment with the employer is the basis for the need to acquire the services of the member.
(3)The member received additional service credit pursuant to Section 22714 or 22715 or received from any public employer any financial inducement to retire. For purposes of this section, “financial inducement to retire” includes, but is not limited to,

any form of compensation or other payment that is paid directly or indirectly by a public employer to the member, even if not in cash, either before or after retirement, if the member retires for service on or before a specific date or specific range of dates established by a public employer on or before the date the inducement is offered. The system shall liberally interpret this paragraph to further the Legislature’s intent to make subdivision (b) inapplicable to members if the member received a financial incentive from any public employer to retire or otherwise terminate employment with a public employer.

(e)The completed documentation required by this section shall be received by the system prior to the retired member’s performance of retired member activities.
(f)Within 30 calendar days after the receipt of all documentation required by the system pursuant to this section,

the system shall inform the entity seeking application of the exemption specified in subdivision (b), and the retired member whether the compensation paid to the member will be subject to the limitation specified in subdivision (a).

(g)If a member retired for service under this part earns compensation for performing retired member activities in excess of the limitation specified in subdivision (a), the member’s retirement allowance shall be reduced by the amount of the excess compensation. The amount of the reduction in an individual month shall be no more than the monthly allowance payable in that month, and the total amount of the reduction shall not exceed the amount of the allowance payable during the first 180 calendar days, after a member retired for service under this part.
(h)On or before February 1, 2027, the board shall submit to the Assembly Committee on Public

Employment and Retirement and the Senate Committee on Labor, Public Employment and Retirement a report that includes, but is not limited to, the following information by school year:

(1)The total number of requests received by the system from the Superintendent, a county superintendent, or a chief executive officer of a community college for the exemption pursuant to subdivision (b) from July 1, 2024, to June 30, 2026, inclusive.
(2)The total number of retired members who performed retired member activities with an exemption pursuant to subdivision (b) from July 1, 2024, to June 30, 2026, inclusive.
(3)The total number of retired members who performed retired member activities from July 1, 2024, to June 30, 2026, inclusive.
(4)The total number of

retired members who exceeded the limitation in paragraph (1) of subdivision (f) of Section 24214 that is operative from July 1, 2024, to June 30, 2026, inclusive.

(5)The compensation or remuneration paid to each retired member who performed retired member activities from July 1, 2024, to June 30, 2026, inclusive.
(i)The amendments to this section enacted during the first year of the 2013–14 Regular Session shall apply to compensation paid on or after January 1, 2014.
(j)This section shall become operative on July 1, 2024. This section shall become inoperative as of July 1, 2026, and as of January 1, 2027, is repealed.
§ 24215

Amended by Stats. 1998, Ch. 965, Sec. 192. Effective January 1, 1999.

A member retired for service under this part whose last employment was in the California State University, as a member of the Defined Benefit Program or the Public Employees’ Retirement System, may serve as a member of the teaching staff of the California State University and shall be subject to the employment limitations as provided by the Public Employees’ Retirement Law (Part 3 (commencing with Section 20000) of Division 5 of Title 2 of the Government Code).

§ 24217

Amended by Stats. 1998, Ch. 965, Sec. 195. Effective January 1, 1999.

A person who was a member under this part on June 30, 1972, and had five or more years of service and who had attained age 55 years, shall have the option of receiving the allowance payable under Section 14245, as it read on that date in lieu of the allowance payable under subdivision (a) of Section 24202.

§ 24218

Added by Stats. 1993, Ch. 893, Sec. 2. Effective January 1, 1994.

For the purpose of calculating retirement allowances, credit for service performed between June 30, 1956, and July 1, 1968, on a part-time basis in each school year shall be based on the ratio that service performed bears to the minimum full-time service required for credit for a year of service.

§ 24219

Amended by Stats. 2005, Ch. 351, Sec. 26. Effective January 1, 2006.

Members who were retired under a previously existing local teachers’ retirement system or the San Francisco Employees’ Retirement System prior to July 1, 1972, who have not retired under this part for the local system service performed prior to July 1, 1972, shall have that portion of the retirement allowance computed under the law in effect on June 30, 1972, whenever they retire in the future.

§ 24221

Amended by Stats. 2007, Ch. 332, Sec. 5. Effective January 1, 2008.

(a)A member who retires for service prior to January 1, 2011, may elect, on a form prescribed by the system, to receive a lump-sum payment and an actuarially reduced monthly allowance pursuant to this section in lieu of the monthly unmodified allowance that would otherwise be payable to the member pursuant to this chapter. The election under this section shall be made at the time the member files his or her application for service retirement allowance as provided in Section 24204.
(b)A member who makes the election described in subdivision (a) shall receive a one-time, lump-sum payment in an amount that equals or does not exceed the lesser of the following amounts:
(1)The actuarial present value of the amount by which (A) the monthly unmodified allowance payable to the member pursuant to this chapter exceeds (B) an amount equal to 2 percent of the member’s final compensation multiplied by the number of years of credited service and divided by 12.
(2)Fifteen percent of the actuarial present value of the monthly unmodified allowance payable to the member under this chapter.
(c)Notwithstanding any other provision of this part, a member who makes the election described in subdivision (a) shall receive a monthly unmodified allowance, pursuant to this chapter, that shall be

actuarially reduced to reflect the lump-sum amount paid under subdivision (b). The actuarial reduced unmodified allowance may be modified pursuant to Section 24300 or 24300.1.

(d)A member may not apply a lump-sum payment made pursuant to this section for the purposes of redepositing previously refunded retirement contributions pursuant to Chapter 19 (commencing with Section 23200) or purchasing service credit pursuant to Chapter 14 (commencing with Section 22800), Chapter 14.2 (commencing with Section 22820) or Chapter 14.5 (commencing with Section 22850). The Legislature hereby finds and declares that if a member who elects to receive a partial lump-sum payment also elects to redeposit previously refunded retirement contributions or purchase service credit as a result of the receipt of the lump-sum payment, the Defined Benefit Program may experience a net actuarial impact.
(e)An election pursuant to subdivision (a) may have no net actuarial impact to the Defined Benefit Program. The board shall adopt present value factors to establish a corresponding actuarially reduced monthly allowance, that results in no net actuarial impact to the Defined Benefit Program. The Legislature reserves the right to modify the provisions of this section to further the objective of permitting eligible members to receive a lump-sum distribution of a portion of their benefits, with a corresponding actuarial reduction in their monthly allowance, so that there is no net actuarial impact to the Defined Benefit Program.
(f)This section shall not apply to a member who retires for service pursuant to Section 24201.5.