Cal. Code Regs. Tit. 2, § 599.947 - Corrective Contributions and Lost Earnings

(a) If an employee is not properly placed in the Alternate Retirement Program when he or she becomes eligible, or within 90 days thereof, the employer shall pay for any corrective contributions and lost earnings necessary to make the account whole, as well as administrative costs of $500 per underfunded account.

(b) If a transaction is processed inappropriately causing the employee's Alternate Retirement Program account to be underfunded, it is the responsibility of the entity that made the error to make the account whole. This includes all corrective contributions and lost earnings that would have been deposited in the account if the error had not occurred. The entity responsible will also be required to pay $500, per underfunded account, to cover administrative costs.

(c) Corrective contributions and any lost earnings as addressed in subsections (a) and (b) above, will be funded by the entity responsible for the error and may not be deducted from or offset against any employee's compensation.

(d) The entity processing the correction will determine the amount of corrective contributions. The California Department of Human Resources will determine the amount of the lost earnings required to make the account whole.

(e) The California Department of Human Resources will receive reimbursement for the corrective contributions, any lost earnings, and administrative costs through the State Controller's Office in accordance with Government Code section 11255. The State Controller's Office and the California Department of Human Resources shall each receive one-half of the $500 administrative fee paid by the responsible entity. If the responsible entity is not a state agency, subject to Government Code section 11255, the California Department of Human Resources will obtain reimbursement directly from the entity, and shall retain the full amount of any administrative fee collected from the entity.

Notes

Cal. Code Regs. Tit. 2, § 599.947

1. New article 27.7 (section 599.947) and section filed 10-22-2012; operative 11-21-2012 (Register 2012, No. 43).
2. Change without regulatory effect amending section and NOTE filed 10-13-2014 pursuant to section 100, title 1, California Code of Regulations (Register 2014, No. 42).
3. Change without regulatory effect amending subsections (d)-(e) filed 4-18-2022 pursuant to section 100, title 1, California Code of Regulations (Register 2022, No. 16).

Note: Authority cited: Sections 18502 and 19815.4(d), Government Code; and Article XVI, Section 17, California Constitution. Reference: Section 19999.31, Government Code.

1. New article 27.7 (section 599.947) and section filed 10-22-2012; operative 11-21-2012 (Register 2012, No. 43).
2. Change without regulatory effect amending section and Note filed 10-13-2014 pursuant to section 100, title 1, California Code of Regulations (Register 2014, No. 42).
3. Change without regulatory effect amending subsections (d)-(e) filed 4-18-2022 pursuant to section 100, title 1, California Code of Regulations (Register 2022, No. 16).