Section 27008 - Assessment of Interest on Late Contributions - Cash Balance Benefit Program(a) Interest shall be charged on contributions received more than 10 working days after the date those contributions are due and compounded daily based on the regular interest rate in effect that day.(b) The interest assessed on late contributions provided for in this section shall not apply to adjustments made to contributions for a pay period prior to the effective date of this article.(c) Adjustments to contributions remitted in a prior pay period shall not be subject to the 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.(d) 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 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 pay period in which the compensation being reported was earned; and(3) The contributions are received 10 working days immediately following the date the substitute or part-time position is paid.(e) Contributions that are otherwise late shall not be subject to the 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. The contributions that are exempt under this subdivision shall be due 10 working days immediately following the pay period 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 participant for prior service, if that retroactive change results in a change in the amount of contributions due for that period of time. The contributions that are exempt under this subdivision shall be due 10 working days immediately following the pay period in which the period of time expires and shall be late thereafter.Cal. Code Regs. Tit. 5, § 27008
1. New section filed 4-2-2012; operative 7-1-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 14). Note: Authority cited: California Constitution, Article XVI, Section 17; and Sections 22207, 22213, 22214, 22250 and 22305, Education Code. Reference: Section 26303, Education Code.
1. New section filed 4-2-2012; operative 7-1-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 14).