Chapter 13 - Termination Benefit

California Education Code — §§ 27200-27207

Sections (8)

Amended by Stats. 1998, Ch. 965, Sec. 297. Effective January 1, 1999.

Upon termination of all creditable service subject to coverage by the plan under this part and Part 13 (commencing with Section 22000) for any reason other than death, disability, or retirement, a participant may apply for a lump-sum termination benefit under this part which shall be an amount that is equal to the sum of the participant’s employee account and the employer account as of the date the termination benefit is paid.

§ 27201

Amended by Stats. 2022, Ch. 231, Sec. 6. (AB 1824) Effective January 1, 2023.

(a)All creditable service subject to coverage by the Cash Balance Benefit Program and the Defined Benefit Program, which does not include retired member activities as defined in Section 22164.5 or retired participant activities as defined in Section 26135.7, shall terminate prior to application for a termination benefit under this part.

(b)All employers with which the participant is employed to perform creditable service subject to coverage by the plan shall certify in a format prescribed by the system that the participant’s employment has been terminated unless the employment was terminated 12 months or more prior to the date the termination benefit application is received by the system.

§ 27202

Amended by Stats. 2019, Ch. 96, Sec. 24. (AB 644) Effective January 1, 2020.

A participant shall apply for a termination benefit under this part on a form prescribed by the system.

§ 27203

Amended by Stats. 1998, Ch. 965, Sec. 300. Effective January 1, 1999.

A participant may not apply for a termination benefit under this part if less than five years have elapsed following the date the most recent termination benefit was distributed to the participant.

§ 27204

Amended by Stats. 2020, Ch. 275, Sec. 23. (AB 2101) Effective January 1, 2021.

(a)The termination benefit under this part shall not be payable before 180 calendar days have elapsed following the date of termination of employment.

(b)Except as provided in subdivision (c), the application for the termination benefit shall be automatically canceled if the participant performs creditable service within 180 calendar days following the date of termination of employment.

(c)Subdivision (b) does not apply if the participant has reached that age at which the Internal Revenue Code of 1986 requires a distribution of benefits. A participant who has reached this age shall

receive a distribution commencing on the earlier of the date that the participant has met the conditions of subdivision (a) or the conditions of subdivision (c) of Section 26004.

§ 27205

Amended by Stats. 1998, Ch. 965, Sec. 302. Effective January 1, 1999.

A participant may cancel the application for a termination benefit under this part at any time prior to distribution of the benefit.

§ 27206

Added by Stats. 1995, Ch. 592, Sec. 16. Effective January 1, 1996.

No partial distribution shall be made from an employee account or employer account.

§ 27207

Amended by Stats. 1998, Ch. 965, Sec. 303. Effective January 1, 1999.

Upon distribution of the lump-sum payment to the participant under this part, no further benefits shall be payable from the plan under this part.