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HomeEducation CodeDiv. 1Pt. 13Ch. 15§ 22903 Tax Deferral Authority

§ 22903 Tax Deferral Authority

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

§ 22903 Tax Deferral Authority

Key Takeaways

  • •The state and schools can take out money from an employee's paycheck to put into their retirement plan.
  • •This is only to help the employee pay less in taxes now.
  • •The money taken out is what the employee would normally pay into their retirement plan.

Example

A teacher gets paid $3,000 every month. Normally, she pays $200 into her retirement plan.

The school can take that $200 out of her paycheck before taxes. This way, she pays taxes on $2,800 instead of $3,000, so she saves money on taxes now.

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

Official Source
View on CA.gov

§ 22903 Tax Deferral Authority

Notwithstanding Sections 22901, 22901.3, 22901.7, 22956, and 23000, the state and each school district, community college district, county board of education, and county superintendent of schools, may pick up, for the sole purpose of deferring taxes, as authorized by Section 414(h)(2) of the Internal Revenue Code of 1986 (26 U.S.C. Sec. 414(h)(2)) and Section 17501 of the Revenue and Taxation Code, all of the contributions required to be paid under this part by a member of the Defined Benefit Program, provided that the contributions are deducted from the creditable compensation of the member. (Amended by Stats. 2015, Ch. 123, Sec. 14. (AB 991) Effective January 1, 2016.)

Last verified: January 23, 2026

Key Terms

Defined Benefit Programcreditable compensationdeferring taxes

Related Statutes

  • § 22901 Employee Retirement Contribution Rates
  • § 22904 State Pickup Member Contributions
  • § 22909 Employer Pension Contribution Payments
  • § 22901.3 State Employee Contribution Rates
  • § 22906 Contribution Refund For Errors

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Education Code. Section 22903.
View Official Source