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HomeEducation CodeDiv. 1Pt. 14Ch. 7§ 26607 Cash Balance Annuity Adjustments

§ 26607 Cash Balance Annuity Adjustments

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

§ 26607 Cash Balance Annuity Adjustments

Key Takeaways

  • •The board can give extra money to people getting payments from the Cash Balance Benefit Program, but only if there's enough extra money in the program.
  • •Extra money can only be given if the program makes more money than needed for basic payments, costs, and other expenses.
  • •If extra money is given, it's based on how much the person gets each year and is paid as one big chunk on a specific date.

Example

Imagine the Cash Balance Benefit Program is like a big piggy bank for retirees. If the piggy bank earns more money than expected in a year, the board can decide to give a little bonus to everyone getting money from it.

The board checks if there's extra money after paying for everyone's basic payments, costs, and other expenses. If there is, they can give a bonus to retirees.

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

Official Source
View on CA.gov

§ 26607 Cash Balance Annuity Adjustments

(a) The board may declare by means of plan amendment with respect to the Cash Balance Benefit Program an additional annuity credit applicable to annuities being paid under the Cash Balance Benefit Program. (b) The declaration authorized by subdivision (a) may be made only when the board by plan amendment with respect to the Cash Balance Benefit Program declares an additional earnings credit as provided in Section 26605 and if the total amount of investment earnings of the plan with respect to the Cash Balance Benefit Program for the plan year exceeds the sum of the total amount required to credit all employee and employer accounts at the minimum interest rate, the administrative costs of the plan with respect to the Cash Balance Benefit Program for the plan year, any addition to be made to the Gain and Loss Reserve under subdivision (c) of Section 26202, the total amount required to credit all employee and employer accounts in respect of the additional earnings credit so declared, and any other obligations incurred by the plan with respect to the Cash Balance Benefit Program. (c) Any additional annuity credit with respect to the Cash Balance Benefit Program shall be based upon the annuity of the participant or beneficiary for the plan year and shall be paid as a lump sum to the participant or beneficiary on the date specified by the board. (Amended by Stats. 1998, Ch. 965, Sec. 271. Effective January 1, 1999.)

Last verified: January 23, 2026

Key Terms

additional annuity creditCash Balance Benefit Program

Related Statutes

  • § 26604 Cash Balance Interest Rates
  • § 26606 Cash Balance Earnings Credit
  • § 10600 Education Data Systems Standardization
  • § 10601 California Education Data System
  • § 10601.5 Teacher Data System Development

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Education Code. Section 26607.
View Official Source