CHAPTER 13. Service Credit [22700. - 22724.]

Cal. Education Code - EDC 13.

in effect

Cal. Education Code - EDC § 22700. Section 22700.

This chapter governs the computation of service to be credited under this part to a member of the Defined Benefit Program for the purpose of determining eligibility for benefits under the program, the amount of contributions required of the member in the program, and the amount of benefits paid to a retired member under the program.

Cal. Education Code - EDC § 22701. Section 22701.

(a) Service performed prior to July 1, 1972, shall be credited according to the provisions of law in effect at the time service was performed. (b) Creditable service performed on or after July 1, 1972, and credited under the Defined Benefit Program, shall be credited in the proportion that the member’s salary or wages, as described in Section 22119.2 or 22119.3, for that service bears to the member’s annualized pay rate. (c) (1) The board shall determine a date based on when the system has the capacity to implement the changes made by the act that added this subdivision. The date determined by the board shall be posted on the internet website of the system no later than July 1, 2027. (2) This section shall become inoperative on the date determined by the board pursuant to paragraph (1), and this section shall be repealed on July 1, 2027.

Cal. Education Code - EDC § 22703. Section 22703.

(a) Service shall be credited to the Defined Benefit Program, except as provided in subdivision (b). (b) A member’s creditable service that exceeds 1.000 in a school year shall not be credited to the Defined Benefit Program. Commencing July 1, 2002, contributions by the employer and the member that are deposited in the Teachers’ Retirement Fund for creditable compensation paid to the member for service that exceeds 1.000 in a school year, exclusive of contributions pursuant to Sections 22901.7, 22950.5, and 22951, shall be credited to the Defined Benefit Supplement Program. (c) In lieu of any other benefits provided by this part, any member who performed service prior to July 1, 1956, shall receive retirement benefits for that service at least equal to the benefits that the member would have received for that service under the provisions of this part as they existed on June 30, 1956. This subdivision shall not apply to service that is credited in the San Francisco Employees’ Retirement System. (d) The amendments to this section made during the second year of the 1999–2000 Regular Session shall become operative on July 1, 2002, if the revenue limit cost-of-living adjustment computed by the Superintendent of Public Instruction for the 2001–02 fiscal year is equal to or greater than 3.5 percent. Otherwise the amendments to this section made during the second year of the 1999–2000 Regular Session shall become operative on July 1, 2003.

Cal. Education Code - EDC § 22704. Section 22704.

In any school district that is conducting a year-round school operation or a continuous school program, service shall be credited to the school year in which the service began.

Cal. Education Code - EDC § 22705. Section 22705.

No service shall be included under this part for which a member of the Defined Benefit Program is entitled to receive a retirement benefit in a lump sum or installment payments, for other than military service, from any public retirement system other than this system, or under the American Gratuity Act No. 4151 relating to service in the Philippine Islands under which 15 or more years of creditable service has accrued, or the San Francisco Employees’ Retirement System. If a retired member under this part becomes entitled to that retirement benefit, his or her retirement allowance shall be reduced thereafter to exclude the service upon which the retirement benefit is based, without other change in his or her retirement status. This section shall not apply to any retirement benefit received from a defined contribution plan that is qualified under Section 401(a), Section 403(b), or Section 457 of the Internal Revenue Code.

Cal. Education Code - EDC § 22705.5. Section 22705.5.

Service subject to coverage by the San Francisco Employees’ Retirement System pursuant to Section 24701 is excluded from coverage in the Defined Benefit Program. The member shall retain the right to receive a retirement allowance for creditable service that is subject to coverage under the Defined Benefit Program unless he or she withdraws his or her accumulated retirement contributions for that service.

Cal. Education Code - EDC § 22706. Section 22706.

A member shall not receive credit for service performed while receiving a retirement or disability allowance under the Defined Benefit Program or while receiving a retirement or disability benefit under the Defined Benefit Supplement Program.

Cal. Education Code - EDC § 22708. Section 22708.

(a) The calculations of retirement allowances under this part for state employees in the personal leave program shall include credit for service that would have been credited had the employee not been in the personal leave program. The costs that result from the increased service credit shall be paid for by the employer in a manner prescribed by the system. (b) The calculations of a retirement allowance under this part for a state employee subject to mandatory furloughs shall include earnings, contributions, and annualized pay rates that would have been reported had the employee not been subject to mandatory furloughs. The employer shall pay the cost of the increased service credit that results from these inclusions in a manner prescribed by the system pursuant to Section 22909. (c) For purposes of subdivision (b), “mandatory furloughs” means time during which a member identified below is directed to be absent from work without pay because of an Executive order in the 2008–09 and 2009–10 fiscal years: (1) A person subject to an Executive order requiring a mandatory furlough for state employees. (2) A person who is excepted from the definition of “state employee” in subdivision (c) of Section 3513, or who is an officer or employee of the executive branch of state government who is not a member of the civil service, and who is subject to an Executive order requiring a mandatory furlough for state employees.

Cal. Education Code - EDC § 22709. Section 22709.

A member shall receive credit under this part for time during which the member is prevented from performing creditable service subject to coverage under the Defined Benefit Program, by act of God, or by reason of the closing of a school by any duly authorized officer or body. If by reason of a member’s Japanese ancestry, the member was required by the Wartime Civil Control Administration to leave his or her teaching position in California and returned prior to July 1, 1972, to service subject to coverage under the Defined Benefit Program, the system shall give the member four years of service credit under this part.

Cal. Education Code - EDC § 22710. Section 22710.

(a) Service shall be credited under this part, upon payment of the contributions required under Sections 22901 and 22950, for that time during which a member is excused from performance of creditable service and for which the member receives workers’ compensation, or compensation from an insurance carrier of the employer, due to injury or illness that arose out of and in the course of the member’s employment. (b) Service credited pursuant to this section shall be credited in the proportion that the compensation paid to the member bears to the member’s annualized pay rate. (c) The amount of compensation used to credit service pursuant to this section shall not exceed what the member’s annualized pay rate would have been but for the period of absence specified in subdivision (a).

Cal. Education Code - EDC § 22711. Section 22711.

An elected officer of an employee organization that is on a compensated leave of absence pursuant to Section 44987 or 87768.5 shall be entitled to the service credit, compensation earnable, interest, and additional earnings credits under this part that they otherwise would have been due had the member not been on the compensated leave of absence, if all of the following conditions are met: (a) The member was employed and performed creditable service subject to coverage under this Defined Benefit Program in the month before commencement of the leave of absence. (b) The member makes contributions to the Teachers’ Retirement Fund in the amount that the member would have contributed had the member performed creditable service during the period the member served as an elected officer of the employee organization. (c) The member’s employer contributes to the Teachers’ Retirement Fund at a rate adopted by the board as a plan amendment with respect to the Defined Benefit Program an amount based upon the creditable compensation that would have been paid to the member had the member performed creditable service during the period the member served as an elected officer of the employee organization.

Cal. Education Code - EDC § 22712. Section 22712.

A member under this part shall receive credit for time served as an exchange teacher in any location.

Cal. Education Code - EDC § 22712.5. Section 22712.5.

All members under this part who are employed by a school district, community college district, or superintendent of schools and who received credit during the school year ending June 30, 1996, for service performed as a community service teacher or in a classified position that does not qualify for membership in the Public Employees’ Retirement System, shall continue to receive credit for that service performed after June 30, 1996, provided the member remains continuously employed to perform that service.

Cal. Education Code - EDC § 22713. Section 22713.

(a) Notwithstanding any other provision of this chapter, if the governing board of a school district or a community college district, or a county superintendent of schools establishes regulations pursuant to Sections 44922 and 87483, an employer may enter into a written agreement with an employee who is a member of the Defined Benefit Program to reduce their workload in a position from full time to part time, receive the service credit the member would have received if the member had been employed in that position on a full-time basis and have their retirement allowance, as well as other benefits that the member is entitled to under this part, based, in part, on the final compensation the member would have been entitled to if the member had been employed on a full-time basis. The option to reduce the member’s workload shall be exercised at the request of the member if all of the following conditions are met: (1) The member is employed by either of the following: (A) A school district or county office of education as a prekindergarten through grade 12 certificated employee who does not hold a position with a salary above the maximum salary of a school principal for that employer. (B) A community college district. (2) The member has a minimum of 10 years of credited service in the Defined Benefit Program prior to the start of the school term of the first school year of the agreement to reduce the member’s workload. (3) The member shall have been employed on a full-time basis to perform creditable service under the Defined Benefit Program each year of the five school years immediately preceding the first school year in which the member’s workload is reduced, without having a break in service. For the purposes of this paragraph: (A) Employer-approved leaves of absence, and unpaid absences from the performance of creditable service for personal reasons from full-time employment do not constitute a break in service. (B) Creditable service that was performed for a school year in which a member reduced their workload pursuant to this section shall be treated as full time, provided that the agreement to reduce the member’s workload was not terminated during that year pursuant to subdivision (e). (C) The period of time during which a member is retired for service shall constitute a break in service. (4) The member is 55 years of age or older prior to the start of the school term of the first school year of the agreement for which the member’s workload is reduced. (b) The employer, in conjunction with the system, shall certify the member’s eligibility for participation in the reduced workload program in accordance with subdivision (a). The employer’s certification shall be submitted in a format prescribed by the system and shall be received in the system’s headquarters office prior to the start of the school term of the first school year of the agreement for which the member’s workload is reduced. (c) The agreement to reduce the member’s workload shall be in effect prior to the start of the school term of the first school year of the agreement for which the member’s workload is reduced, and shall include the following requirements: (1) The total amount of time in which a member reduces their workload pursuant to this section shall not exceed 10 school years. (2) The reduced workload shall be equal to at least one-half of the time the employer requires for full-time employment in that position in accordance with Section 22138.5. (3) The member shall be paid creditable compensation that is the pro rata share of the creditable compensation the member would have been paid for that position had the member not reduced their workload. (4) For each school year the member’s workload is reduced pursuant to this section, the member shall make contributions to the Teachers’ Retirement Fund in the amount that the member would have contributed if the member had performed creditable service for that position on a full-time basis and if that service was subject to coverage under the Defined Benefit Program. (5) For each school year the member’s workload is reduced pursuant to this section, the employer shall contribute to the Teachers’ Retirement Fund at a rate adopted by the board as a plan amendment with respect to the Defined Benefit Program an amount based upon the creditable compensation that would have been paid to the member if the member had performed creditable service for that position on a full-time basis and if that service was subject to coverage under the Defined Benefit Program. (d) The employer shall maintain the necessary records to separately identify each member who participates in the reduced workload program pursuant to this section. (e) The agreement to reduce a member’s workload shall be terminated if one of the following actions is taken: (1) The member’s employment is terminated prior to the end of the school term. (2) The member earns less than one-half of the annualized pay rate as defined in Section 22104.8. (3) The member and the employer mutually agree that the member will perform creditable service without making contributions in accordance with paragraphs (4) and (5) of subdivision (c). (f) Upon termination of the agreement for any of the reasons described in subdivision (e): (1) The employer shall notify the system that the agreement to reduce a member’s workload has been terminated within 30 days of the agreement being terminated. (2) The member’s service credit and contributions for that school year in which the agreement is terminated shall be computed in accordance with Section 22701 and Chapters 15 and 16. (3) That school year in which the agreement is terminated shall not be included in the total amount of time in which a member is allowed to reduce their workload pursuant to paragraph (1) of subdivision (c). (4) Any subsequent agreement to reduce a member’s workload shall meet all of the conditions set forth in this section.

Cal. Education Code - EDC § 22714. Section 22714.

(a) Whenever the governing board of a school district or a community college district or a county office of education, by formal action, determines pursuant to Section 44929 or 87488 that, because of impending curtailment of, or changes in, the manner of performing services, the best interests of the district or county office of education would be served by encouraging certificated employees 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, an additional two years of service credit shall be granted under this part to a member of the Defined Benefit Program if all of the following conditions exist: (1) The member is credited with five or more years of service credit and retires for service under Chapter 27 (commencing with Section 24201) during a period of not more than 120 days or less than 60 days, commencing no sooner than the effective date of the formal action of the employer that shall specify the period. (2) The documentation required by this section is received by the system no later than 30 calendar days after the last day of the window period established in paragraph (1). (3) (A) 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 credit pursuant to this section and the amount the member would have received without the service 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 credit pursuant to this section and the amount the member would have received without the service 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 a time period, not to exceed eight years, that is acceptable to the Teachers’ Retirement Board. The employer shall transfer the required amount for all eligible employees who retire pursuant to this section. (B) Regular interest shall be charged on the unpaid balance if the employer makes the transfer to the retirement fund in installments. (4) 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. (5) The employer has considered the availability of teachers or academic employees to fill the positions that would be vacated pursuant to this section. (b) (1) The school district shall demonstrate and certify to the county superintendent that the formal action taken would result in a net savings to the district. (2) The county superintendent shall certify to the Teachers’ Retirement Board that the result specified in paragraph (1) can be demonstrated. The certification shall include, but not be limited to, the information specified in subdivision (c) of Section 14502.1. (3) The school district shall reimburse the county superintendent for all costs to the county superintendent that result from the certification. (c) (1) 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. (2) The Superintendent of Public Instruction shall certify to the Teachers’ Retirement Board that the result specified in paragraph (1) can be demonstrated. The certification shall include, but not be limited to, the information specified in subdivision (c) of Section 14502.1. (3) The Superintendent of Public Instruction may request reimbursement from the county office of education for all administrative costs that result from the certification. (d) (1) The 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. (2) The chancellor shall certify to the Teachers’ Retirement Board that the result specified in paragraph (1) can be demonstrated. The certification shall include, but not be limited to, the information specified in subdivision (c) of Section 84040.5. (3) The chancellor may request reimbursement from the community college district for all administrative costs that result from the certification. (e) The opportunity to be granted service credit pursuant to this section shall be available to all members employed by the school district, community college district, or county office of education who meet the conditions set forth in this section. (f) The amount of service credit shall be two years. (g) Any member of the Defined Benefit Program who retires under this part for service under Chapter 27 (commencing with Section 24201) with service credit granted under this section and who subsequently reinstates shall forfeit the service credit granted under this section. (h) Any member of the Defined Benefit Program who retires under this part for service under Chapter 27 (commencing with Section 24201) with service credit granted under this section and who takes any job as an employee, independent contractor, or as an employee of a third party with the school district, community college district, or county office of education that granted the member the service credit less than five years after receiving the credit shall forfeit the ongoing benefit the member receives from the additional service credit granted under this section. (i) This section does not apply to any member otherwise eligible if the member receives any unemployment insurance payments arising out of employment with an employer subject to this part within one year following the effective date of the formal action under subdivision (a), or if the member is not otherwise eligible to retire for service.

Cal. Education Code - EDC § 22715. Section 22715.

(a) Notwithstanding any other provisions of this part, whenever the Governor, by executive order, determines that because of an impending curtailment of, or change in the manner of performing service, the best interest of the state would be served by encouraging the retirement of state employees, and that sufficient economies could be realized to offset any cost to state agencies resulting from this section, an additional two years of service shall be credited under this part to members of the Defined Benefit Program, who are state employees, if the following conditions exist: (1) The member is credited with five or more years of service and retires during a period not to exceed 120 days or less than 60 days commencing no sooner than the date of issuance of the Governor’s executive order specifying that period. (2) (A) The appointing power, as defined in Section 18524 of the Government Code, transfers to the retirement fund an amount determined by the board to equal the actuarial equivalent of the difference between the allowance the member receives after the receipt of service credit under this section and the amount the member would have received without the service credit. The transfer to the retirement fund shall be made in a manner and time period acceptable to the employer and the board. (B) Regular interest shall be charged on the unpaid balance if the employer makes the transfer to the retirement fund in installments. (3) The appointing power determines that it is electing to exercise the provisions of this section, pursuant to the Governor’s order, and certifies to the Department of Finance and to the Legislative Analyst, as to the specific economies that would be realized if the additional service credit toward retirement were granted. (b) As used in this section, “member” means a state employee who is employed in a job classification, department, or other organizational unit designated by the appointing power, as defined in Section 18524 of the Government Code. (c) The amount of service credit shall be two years regardless of credited service, but shall not exceed the number of years intervening between the date of the member’s retirement under this part and the date the member would be required to be retired because of age. The appointing power shall make the payment with respect to all eligible employees who retire pursuant to this section. (d) Any member who qualifies under this section, upon subsequent reinstatement under this part, shall forfeit the service credit granted under this section. (e) This section shall not be applicable to any member otherwise eligible if that 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 date of issuance of the executive order or if the member is not eligible to retire without the additional credit available under this section. (f) The benefit provided by this section shall not be applicable to the employees of any appointing power until the Director of Finance approves the transmittal of funds by that appointing power or the Board of Regents or the Board of Trustees to the retirement fund pursuant to paragraph (2) of subdivision (a). (g) The Director of Finance shall approve the transmittal of funds by the appointing power not sooner than 30 days after notification in writing of the necessity therefor to the chairperson of the committee in each house of the Legislature that considers appropriations and the Chairperson of the Joint Legislative Budget Committee, or not sooner than any lesser time that the chairperson of the committee, or his or her designee, may in each instance determine. If there is any written communication between the Director of Finance and the Legislative Analyst, a copy of the communication shall be transmitted to the chairperson of each appropriate policy committee.

Cal. Education Code - EDC § 22716. Section 22716.

Notwithstanding any other provision of law, a member of the Defined Benefit Program upon any subsequent service under unpaid contract or any other unpaid basis with the trustees, shall not be required to forfeit the service credit granted under former Section 22732, as it read on June 29, 1993.

Cal. Education Code - EDC § 22717. Section 22717.

(a) Upon certification by the employer or employers, a member shall be granted credit at service retirement for each day of accumulated and unused sick leave days for which full salary is allowed and to which the member was entitled on the member’s final day of employment with the employer or employers subject to coverage by the Defined Benefit Program during the last school term in which the member earned creditable compensation pursuant to Section 22119.2 or 22119.3. The system shall accept certification from each employer with which the member has accumulated sick leave days for that period, provided this leave has not been transferred to another employer. (b) The amount of service credit to be granted shall be determined by dividing the number of accumulated, unused sick leave days by the number of base days, as defined in Section 22106.2. (c) For members who are last employed with the state in a position in which there are no contracted base service days, the amount of service credit to be granted shall be 0.004 years of service for each day of unused sick leave certified to the board by the employer. The certification shall report only those days of unused sick leave that were accrued by the member during the normal course of the member’s employment subject to coverage by the Defined Benefit Program. (d) When the member has made application for service retirement under this part, the employer shall certify to the board, within 30 days following the effective date of the member’s service retirement or the date the application for retirement is received by the system’s headquarters office, whichever is later, the number of days of accumulated and unused sick leave days that the member was entitled to on the final day of employment. The board may assess a penalty on delinquent reports. (e) The member shall not receive credit for accumulated unused sick leave days if the member receives service credit in another public retirement system for the same unused sick leave days. (f) This section shall be applicable to any person who retires on or after January 1, 1999.

Cal. Education Code - EDC § 22717.5. Section 22717.5.

(a) A member shall be credited at service retirement for each day of accumulated and unused leave of absence for education for which full salary is allowed on the member’s final day of employment with the state. (b) The amount of service credit to be granted shall be 0.004 years of service for each unused day of educational leave credit. (c) When the member has made application for service retirement under this part, the employer shall certify to the board, within 30 days following the effective date of the member’s service retirement or the date the application for retirement is received by the system’s headquarters office, whichever is later, the number of days of accumulated and unused leave of absence for education that the member was entitled to on the final day of employment. The board may assess a penalty on delinquent reports. (d) This section shall apply to eligible state employees in state bargaining units that have agreed to this section in a memorandum of understanding, or as authorized by the Director of Human Resources for classifications of state employees that are excluded from the definition of “state employee” by paragraph (c) of Section 3513 of the Government Code. (e) The provisions of this section shall be effective for eligible members who retire directly from state employment on or after January 1, 2000.

Cal. Education Code - EDC § 22718. Section 22718.

(a) The Teachers’ Retirement Board shall bill school employers for service credit granted for unused excess sick leave under this part, subject to the following provisions: (1) (A) In addition to the certification of unused basic sick leave days, the employer shall also certify the number of unused excess sick leave days. (B) Excess sick leave days granted by an employer other than the member’s last employer shall be deemed to be granted by the last employer and shall be included in the certification if the member was eligible to use those excess sick leave days while the member was employed by the last employer. If, during the last year a member is employed to perform creditable service subject to coverage by the Defined Benefit Program, that member is employed by more than one employer, unused excess sick leave days shall be certified and paid for by the employer for the period in which the member was eligible to use those excess sick leave days. (2) The employer shall be billed only for the present value of the unused excess sick leave days and any subsequent adjustments to the billing shall be billed or returned, as appropriate, to the employer. (3) (A) The employer shall remit the amount billed to the system with the certification required by Section 22717 within 30 days after the effective date of the member’s retirement or within 30 days after the date the system has notified the employer that a certification must be made, whichever is later. (B) If payment is not received within 30 calendar days, the present value shall be recalculated to include regular interest from the due date to the date full payment is received. (C) If the system has billed the employer for an additional amount, the employer shall remit the additional amount within 30 calendar days after the date of the billing. If payment is not received for the additional amount within 30 calendar days, the present value shall be recalculated to include regular interest from the due date to the date full payment is received. (b) If a school employer fails to pay a bill charged according to subdivision (a), the Teachers’ Retirement Board may request the Superintendent of Public Instruction or the Chancellor of the California Community Colleges, as appropriate, to reduce state apportionments to the school employer by an amount equal to the amount billed. The Superintendent or chancellor shall make the reduction, and if requested by the board, direct the Controller to reduce the amount transferred from the General Fund to Section A or Section B, as appropriate, of the State School Fund by an equal amount, which shall instead be transferred to the Teachers’ Retirement Fund.

Cal. Education Code - EDC § 22719. Section 22719.

If the allowance of a retired member is terminated, the employer shall not restore sick leave days for which service credit was granted at retirement.

Cal. Education Code - EDC § 22720. Section 22720.

The service credited pursuant to Section 22717 may not be used in the determination of final compensation, except as provided in Section 22134.5.

Cal. Education Code - EDC § 22721. Section 22721.

Except as provided in Section 22717, no service credit shall be granted under this part for any payment made for accumulated sick leave upon transfer from one employer to another, upon termination of service, upon retirement, or upon death. No contributions under this part shall be withheld from any such payments. Payments for accumulated sick leave shall be paid to the member by separate warrant and shall not be included in any payroll warrant issued to the member. The payments shall not be included in the determination of “final compensation” under this part. No continued leave of absence shall be granted a member solely for the purpose of allowing the member to receive compensation for accumulated sick leave for which the member could otherwise have elected to receive payment.

Cal. Education Code - EDC § 22724. Section 22724.

(a) To determine the number of excess sick leave days to which a member is entitled when he or she retires, the employer shall deduct the days of sick leave used by the member from the member’s accumulated and unused sick leave balance according to the following method: (1) Sick leave usage shall first be deducted from the accumulated and unused sick leave balance existing on July 1, 1986. (2) Sick leave usage shall next be deducted from basic sick leave days granted to the member by an employer after June 30, 1986. (3) Sick leave usage shall then be deducted from any excess sick leave days granted to the member by an employer after June 30, 1986. (b) Upon request from the board, the employer shall submit sick leave records of past years for audit purposes.

Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026