§ 20579 Contracting Agency Employer Termination

Government Code·California

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Key Takeaways

•If a company stops being part of this system, it stops being an employer the day before it leaves.
•Any money the company put into the system will be calculated in a specific way.
•This rule started in 1996.

Example

A school district decides to stop using the state’s retirement system for its teachers.

The school district is no longer considered an employer under this system the day before it officially leaves. All the money the school district paid into the system will be added up using a special method to figure out what happens to it next.

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

Official Source

View on CA.gov

§ 20579 Contracting Agency Employer Termination

For purposes of Sections 20576 and 20577 in the case of a contracting agency that is an employer for purposes of Chapter 9 (commencing with Section 20790), the contracting agency shall cease to be an employer on the day preceding the effective date of termination, and all accumulated contributions held by this system and made by or credited to the contracting agency shall be determined in accordance with Section 20834. (Added by Stats. 1995, Ch. 379, Sec. 2. Effective January 1, 1996.)

Last verified: January 22, 2026

Key Terms

contracting agency employer accumulated contributions Section 20834

References

Official text at leginfo.legislature.ca.gov
California Legislature. Government Code. Section 20579.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References