California Code of Regulations › Title 5 - Education › Division 3 - Teachers' Retirement System › Chapter 3 - Employer Reporting › Article 1 - Employer Direct Reporting › Section 27703 - Documentation Required with Application to Become a Direct Report

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) An applicant to
				  become a direct report shall submit the following documentation with the following
				  content:
(1) If contributions required to be paid
				  by a member are picked 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.A Sec
				  414(h)(2)) and Section
				  17501
				  of the Revenue and Taxation Code, a resolution adopted by the district's governing
				  board certifying its intent to pick up member contributions in compliance with those
				  provisions and the Teachers' Retirement Law.
(2) A resolution adopted by the district's
				  governing board resolving to become a direct report to the system and certifying
				  each of the following.
(A) "[District] hereby
				  elects to become a direct report to the California State Teachers' Retirement
				  System, effective on July 1, [effective year]."
(B) "[District] has a payroll system independent
				  of the county."
(C) The district is
				  fiscally accountable, fiscally independent, or both, as demonstrated by including
				  the relevant statements from either of the following subdivisions:
(i) For a school district: "[District] is
				  [fiscally accountable as defined in Section
				  42647/ fiscally independent as defined
				  in Section 42650/ both fiscally accountable and
				  fiscally independent as defined in Sections
				  42647 and
				  42650] of the Education Code."
(ii) For a community college district: "[District]
				  is [fiscally accountable as defined in Section
				  85266/ fiscally independent as defined
				  in Section 85266.5/ both fiscally accountable and
				  fiscally independent as defined in Sections
				  85266 and
				  85266.5] of the Education
				  Code."
(D) "[District] has the
				  ability to be in full compliance with the file layouts specified in Division 3 of
				  Title 5 of the California Code of Regulations."
(E) "[District] is responsible for submitting
				  contribution data and remitting contributions in accordance with the Teachers'
				  Retirement Law."
(F) "[District] is
				  responsible for submitting contribution data and remitting contributions for all
				  adjustments to contributions that relate to service performed prior to the effective
				  date of the direct reporting relationship as requested by the system or as
				  identified by the district."
(G)
				  "[District] is responsible for payment of any penalty assessments for contributions
				  and data submitted as a direct report on or after the effective date of the direct
				  reporting relationship."
(H) "[District]
				  is responsible for submitting all contribution data and remitting all contributions
				  on and after the effective date of becoming a direct report."
(I) "For the last five fiscal years, [District]
				  has been issued an unqualified opinion on its annual financial audit pursuant to
				  Section
				  41020 or
				  84040 of the
				  Education Code."
(J) The district has
				  maintained a status of acceptable standing with the most current accrediting body by
				  affirming the relevant statement from either of the following subdivisions:
(i) For a school district: "[District] has not
				  been on probationary accreditation status nor had its accreditation status withheld
				  by the most current accreditation body sanctioned by the California Department of
				  Education in the last five fiscal years."
(ii) For a community college district: "[District]
				  has not been ordered to show cause or been subject to the equivalent strictest
				  sanctions applied from the most current accreditation body sanctioned by the Board
				  of Governors of the California Community Colleges in the last five fiscal
				  years."
(K) "[District] shall
				  notify the system within three business days if its payroll operations are no longer
				  independent of the county or if its fiscally accountable status or fiscal
				  independence is revoked. If any of these occur, the district shall cease submitting
				  contribution data and remitting contributions to the system directly and shall
				  resume submitting contribution data and remitting contributions through [County]
				  effective on the date following revocation."
(L) The relevant statement from either of the
				  following subdivisions:
(i) For a school district:
				  "[District] shall notify the system within three business days if it is placed on
				  one-year probationary accreditation status or has its accreditation status withheld
				  or an equivalent status by the accrediting body."
(ii) For a community college district, "[District]
				  shall notify the system within three business days if it is ordered to show cause or
				  is placed on an equivalent status or sanction by the accrediting
				  body."
(M) "If [district] is
				  terminated as a direct report, [County] shall be responsible for submitting or
				  remitting any missed reports, adjustments, contributions, penalties, and interest
				  associated with the time period that the district was a direct report."
(N) "[District] may terminate the direct reporting
				  relationship only when the system, the district, and [County] have agreed to the
				  employer terminating the relationship."
(3) A resolution adopted by the county governing
				  authority authorizing the district to become a direct report to the system and
				  certifying each of the following:
(A) "On [date
				  district's governing board approved resolution], [District] elected to become a
				  direct report to the system effective on July 1, [effective year]."
(B) "[District] meets the eligibility requirements
				  of the system, as specified on a resolution adopted by the district's governing
				  board to become a direct report pursuant to paragraph (2) of subdivision (a) of
				  Section 27703 of the California Code of
				  Regulations."
(C) "[County] is not
				  responsible for submitting contribution data and remitting contributions, including
				  adjustments to contribution data and contributions made prior to the effective date
				  of [District] becoming a direct report."
(D) "[County] is not responsible for any penalty
				  or interest assessments for contributions and data submitted by [District] as a
				  direct report on or after the effective date of becoming a direct report for the
				  duration of the direct reporting relationship."
(E) "If [District] is terminated as a direct
				  report, [County] is responsible for submitting and remitting any and all reports,
				  adjustments, contributions, penalties and interest to the system."
(F) '[County] shall notify the system within three
				  business days of revocation should the district's fiscally accountable status or
				  fiscal independence be revoked, and shall resume submitting contribution data and
				  remittance on behalf of the district on the revocation effective
				  date."