State teachers' retirement.

(1) The State Teachers' Retirement Law prescribes the rights and benefits of members of the State Teachers' Retirement System. The law provides that retirement benefits under the Defined Benefit Program of the State Teachers' Retirement Plan are based on the member's final compensation and years of credited service. Generally, final compensation is the highest average annual compensation earnable by the member during a 3-year period. However, for a member with 25 or more years of credited service, final compensation is the highest average annual compensation earnable by the member during a one-year period. That law authorizes the Governor, a school district, community college district, or county office of education to grant members of the Defined Benefit Program of the State Teachers' Retirement Plan 2 additional years of service credit, if the member retires for service within a designated period and certain conditions are satisfied, including the transfer of a specified amount to the Teachers' Retirement Fund. This bill would require regular interest to be charged on the unpaid balance if the transfer to the retirement fund is made in installments. The bill would modify the definition of "regular interest" for purposes of the State Teachers' Retirement Law. (2) The law specifies the date by which member and employer contributions are due in the office of the State Teachers' Retirement System, and provides that payments thereafter shall be delinquent and subject to interest, as specified. If a county superintendent of schools, employing agency, school district, or community college district that reports directly to the system fails to pay the contributions, the Teachers' Retirement Board may assess penalties and charge regular interest on the delinquent contributions. This bill, instead, would require the board, in accordance with regulations, to assess penalties and charge regular interest for any delinquent contributions, as specified. The bill would provide that any penalties or interest may be appealed, as specified. (3) The law requires the county superintendent of schools or employing agency, and authorizes a school district or community college district, with approval of the Teachers' Retirement Board, to submit a report monthly to the State Teachers' Retirement System containing information as the board may require in the administration of the State Teachers' Retirement Plan. If those monthly reports are submitted late or in an unacceptable form, or include late or improper adjustments, the board is authorized to assess penalties pursuant to a specified formula, or a fee of $500, whichever is greater. This bill, instead, would require the board, in accordance with regulations, to assess those penalties, pursuant to a specified formula, or a fee of $500, whichever is greater. The bill would provide that any penalties may be appealed, as specified. (4) The law permits an employer to offer benefits under the Cash Balance Benefit Program to certain employees who are employed less than 50% of full time, and requires employers to transmit and report contributions paid on behalf of each participant in each pay period, along with all other information required by the system by specified due dates. The board is authorized to collect interest for delinquent contributions and to assess a penalty for a report submitted late or in an unacceptable form pursuant to a specified formula, or a fee of $500, whichever is greater. This bill, instead, would require the board to collect interest on delinquent contributions, as specified, and to assess a penalty, in accordance with regulations, against the employer for a report submitted late or in an unacceptable form pursuant to a specified formula, or a fee of $500, whichever is greater. The bill would provide that any penalty or interest may be appealed, as specified.