§ 22317.5. — (Repealed (in Sec. 16) and added by Stats. 2024, Ch. 690, Sec. 17.)

California § 22317.5.

• Jurisdiction: California
• Code EDC: Education Code - EDC
• Div.: 1.
• Title 1.: DIVISION 1. GENERAL EDUCATION CODE PROVISIONS
• Part 13.: PART 13. STATE TEACHERS' RETIREMENT SYSTEM
• Ch. 5.: CHAPTER 5. Administration

Text

(a)
The amount of compensation that is taken into account in computing benefits payable under this part shall not exceed the following limitations:
(1)
For any person who first becomes a member of the Defined Benefit Program on or after July 1, 1996, the annual compensation limitations prescribed by Section 401(a)(17) of Title 26 of the United States Code upon public retirement systems, as that section may be amended from time to time and as that limit may be adjusted by the Commissioner of Internal Revenue for increases in cost of living. The determination of compensation for each 12-month period shall be subject to the annual compensation limit in
effect for the calendar year in which the 12-month period begins. In a determination of average annual compensation over more than one 12-month period, the amount of compensation taken into account for each 12-month period, shall be subject to the annual compensation limit applicable to that period.
(2)
For a member subject to the California Public Employees’ Pension Reform Act of 2013:
(A)
(i)
One hundred twenty percent of the “contribution and benefit base,” as determined under Section 430(b) of the Social Security Act (42 U.S.C. Sec. 430(b)), on January 1, 2013, for a member whose service is not included in the federal system.
(ii)
One hundred percent of the “contribution and benefit base,” as determined
under Section 430(b) of the Social Security Act (42 U.S.C. Sec. 430(b)), on January 1, 2013, for a member whose service is included in the federal system pursuant to any changes in state or federal law enacted on or after January 1, 2013.
(B)
The system shall adjust the limit based on the annual changes to the Consumer Price Index for All Urban Consumers: U.S. City Average, calculated by dividing the Consumer Price Index for All Urban Consumers: U.S. City Average for the month of February in the fiscal year preceding the adjustment by the Consumer Price Index for All Urban Consumers: U.S. City Average for the month of February of the previous year rounded to the nearest thousandth. Notwithstanding paragraph (1) of subdivision (d) of Section 7522.10 of the Government Code, the adjustment shall be effective annually on July 1, beginning July 1,
2014.
(C)
The Legislature reserves the right to modify the requirements of this subdivision with regard to all members subject to this subdivision, except that the Legislature shall not modify these
provisions in a manner that would result in a decrease in benefits accrued before the operative date of the modification.
(b)
Notwithstanding any other provision of this part, no member contribution shall be paid upon any compensation in excess of the annual compensation limitations prescribed by this section.
(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 operative on the date determined by the board pursuant to paragraph (1).

Legislative History

Repealed (in Sec. 16) and added by Stats. 2024, Ch. 690, Sec. 17. (AB 1997) Effective January 1, 2025. Conditionally operative as prescribed by its own provisions.