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HomeEducation CodeDiv. 1Pt. 13Ch. 38Art. 2§ 25007 Additional Annuity Credit Declaration

§ 25007 Additional Annuity Credit Declaration

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

§ 25007 Additional Annuity Credit Declaration

Key Takeaways

  • •If the board gives extra money (earnings credit) for a year, they can also give extra money (annuity credit) to people already getting payments.
  • •The extra money is given all at once on a date the board picks.
  • •Before giving extra money, the board checks if there's enough for people not yet getting payments and other promises the plan has to keep.

Example

Imagine you get a monthly payment from a retirement plan. One year, the board decides to give everyone an extra $100 because the plan did well.

If you're already getting payments, you might get an extra $100 all at once. The board makes sure there's enough money left for people who aren't getting payments yet and other important things.

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

Official Source
View on CA.gov

§ 25007 Additional Annuity Credit Declaration

When the board declares an additional earnings credit for a plan year, the board also may declare by plan amendment an additional annuity credit, for members and annuity beneficiaries who are receiving an annuity as of the date specified by the board pursuant to Section 25006, based on the annuity of the member and annuity beneficiaries for the plan year. The additional annuity credit shall be paid in a lump sum to the members and annuity beneficiaries on the date specified by the board. In addition to the considerations specified in Section 25006, prior to declaring an additional earnings credit, the board shall consider both of the following: (a) The amount required for the plan year to apply the additional earnings credit to the Defined Benefit Supplement accounts of members who are not receiving an annuity under the Defined Benefit Supplement Program for the plan year. (b) Any other obligations incurred by the plan with respect to the Defined Benefit Supplement Program. (Amended by Stats. 2009, Ch. 304, Sec. 26. (SB 634) Effective January 1, 2010.)

Last verified: January 23, 2026

Key Terms

additional earnings creditadditional annuity creditDefined Benefit Supplement Programplan year

Related Statutes

  • § 25000.5 Defined Benefit Supplement Rules
  • § 25004 Defined Benefit Supplement Accounts
  • § 25002 Annuitant Reserve Management
  • § 25005 Defined Benefit Supplement Interest Rates
  • § 25006 Additional Earnings Credit Declaration

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Education Code. Section 25007.
View Official Source