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HomeEducation CodeDiv. 1Pt. 13Ch. 13§ 22701 Service Credit Calculation Method

§ 22701 Service Credit Calculation Method

Education Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 22701 Service Credit Calculation Method

Key Takeaways

  • •If you worked before July 1, 1972, your work time is counted using the old rules from back then.
  • •If you worked between July 1, 1972, and a certain new date, your work time is counted based on how much of your pay you got compared to your full yearly pay.
  • •If you work after the new date, your work time is counted by adding two parts: regular pay divided by yearly pay, and extra pay divided by what you could earn in a school year. But you can’t count more than one year of work in a single school year.
  • •The new rules start when the board says they’re ready, and they’ll tell everyone by July 1, 2027.

Example

A teacher worked part-time in 2025 and wants to know how much of that year counts toward their retirement.

The teacher’s work time is counted by adding two parts: their regular pay divided by their full yearly pay, and any extra pay (like coaching) divided by the total pay they could earn that school year. If the teacher earned half their regular pay and a quarter of possible extra pay, they might get 0.75 years of credit for that school year.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 22701 Service Credit Calculation Method

(a) Service performed prior to July 1, 1972, shall be credited according to the provisions of law in effect at the time service was performed. (b) Service performed on or after July 1, 1972, and credited under the Defined Benefit Program, shall be credited in the proportion that the member’s salary or wages, as described in Section 22119.2 or 22119.3, as those sections read prior to the operative date of the act adding this section, for that service bears to the member’s annualized pay rate. (c) Service performed on or after the operative date of the act adding this section shall be credited as determined using the sum of the following, not to exceed one year in any given school year: (1) The quotient obtained when all salary, as described in clause (i) of subparagraph (A) of paragraph (1) of subdivision (a) of Section 22119.3, is divided by the annualized pay rate of the applicable salary. (2) The quotient obtained when all supplemental pay, as described in paragraph (2) of subdivision (a) of Section 22119.3, is divided by the compensation earnable for the applicable school year. (d) (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). (Repealed (in Sec. 19) and added by Stats. 2024, Ch. 690, Sec. 20. (AB 1997) Effective January 1, 2025. Conditionally operative as prescribed by its own provisions.)

Last verified: January 23, 2026

Key Terms

Service performed prior to July 1, 1972Defined Benefit Programannualized pay rateboardJuly 1, 2027

Related Statutes

  • § 22170 Service Definition And Sunset
  • § 22700 Defined Benefit Program Service Credit
  • § 22703 Service Credit Limitation
  • § 22705 Exclusion Of Other Retirement Service
  • § 22705.5 Defined Benefit Program Exclusion

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Education Code. Section 22701.
View Official Source