Reduced Workload Program

• If a member is a participant of the Reduced Workload Program (RWP), and the district is considering furloughing employees two days in the 2010 11 fiscal year, how will it impact the member?

  The participating member will fulfill their RWP requirements with reduced earnings if there are no other absences that would drop earnings to less than 50 percent of the contract. The earnings and earnable are both reduced and full service credit is earned.

  Further, Education Code Section 22713(b) (3) states in part, “other approved leaves of absence...do not constitute a break in service”.

  A furlough would be considered an approved leave of absence if so stated by the employer in the employment contract, employment agreement, bargaining contract or any other such document.

• If a RWP participant is currently working a 50 percent contract, and the district knows furloughs will be implemented for the 2010 -11 fiscal year, could that member change his or her percentage to more than 50 percent so the furloughs will not lower the contract to less than 50 percent?

  Yes, the member could negotiate a higher percentage. However, it is not necessary as the earnings would equal 50 percent of the earnable, fulfilling the RWP contract if the earnable was also reduced.

• If a RWP participant is furloughed one day in May and one day in June, what would be the best way to report this member’s lines to ensure his or her service credit is not impacted negatively?

  If an RWP participant with an 80 percent contract worked full time minus the instituted furlough days for the remainder of the fiscal year, with a daily rate of $250.00, the lines should be reported as follows:

  1 36 6000.00 3 4800.00 0800 1 480.00 E 0901 0930 0.0800
  1 36 6000.00 3 4800.00 0800 1 480.00 E 1001 1031 0.0800
  1 36 6000.00 3 4800.00 0800 1 480.00 E 1101 1130 0.0800
  1 36 6000.00 3 4800.00 0800 1 480.00 E 1201 1231 0.0800
  1 36 6000.00 3 4800.00 0800 1 480.00 E 0101 0131 0.0800
  1 36 6000.00 3 4800.00 0800 1 480.00 E 0201 0228 0.0800
  1 36 6000.00 3 4800.00 0800 1 480.00 E 0301 0331 0.0800
  1 36 6000.00 3 4800.00 0800 1 480.00 E 0401 0430 0.0800
  1 36 5750.00 3 4600.00 0800 1 460.00 E 0501 0531 0.0800 (1 day furlough)
  1 36 5750.00 3 4600.00 0800 1 460.00 E 0601 0630 0.0800 (1 day furlough)

Working After Retirement

• Our district refers to Education Code Section 44919(b) and considers certificated personnel first before hiring walk-on coaches. We would like to hire our own retirees as coaches. Is walk-on coaching activities creditable and reportable to CalSTRS?
  
  

  Although we cannot comment on Education Code Section 44919(b) which is outside of the CalSTRS Teachers’ Retirement Law, the following should assist you in reporting walk-on coaches:

  • An active member or non-member performing creditable service in addition to the coaching assignment should be reported to CalSTRS.
  • An inactive member or non-member “walk-on” coach who is not performing additional creditable service should not be reported to CalSTRS.
  • A retired member working in a coaching position exclusively, and is not performing any other form of creditable service, should not be reported to CalSTRS.
  • A retired member working in a coaching position, and is performing CalSTRS creditable service in any other position, should be reported to CalSTRS and is subject to the earnings limitation.
• If a member retires, could he or she return to education in a classified position?
  
  

  The member can only take a classified position as directed in Education Code Section 45134 - Age limits; Employment of persons receiving retirement allowance for K-12, and Education Code Section 88033 - Age limits; Community College.

• What is the penalty for a CalSTRS retiree working in a classified position?

  CalSTRS does not impose a penalty, but the district and the member may be violating the law per Education Code Section 45134.

• If a CalSTRS retiree is working part-time as a trustee or fiscal advisor, can that employee also work part-time in another assignment up to the earnings limitation?
  
  

  Yes, that individual can work in another assignment up to the earnings limitation.

  However, work as a trustee or fiscal advisor is not creditable and should not be reported to CalSTRS.

Administrators

• If an administrator wants to take furloughs consistent with teachers, does the administrator’s employment agreement need to be modified to show that it is a mandatory furlough and that the calendar has been modified from 225 days to 220? If the contract only states, “You must work 12 full months”, how do we deal with the furlough issue on a written employment agreement?

  We cannot provide legal advice. However, 220 days is above the minimum standard of 190 days for K-12 administrators.

• Why are insurance and court ordered deductions not on Form 1099-R?
  
  

  The minimum full-time standard is 190 days or 1,520 hours per Education Code Section 22138.5. The employer is responsible for determining the class and defining the duties.

• Our management group has two types of administrators; certificated and classified. When reporting a furlough situation, would it be up to the district to choose what type of method to use; reduction in earnings or reduction in earnable resulting from a reduction in days?
  
  

  Yes, the district is responsible for determining the method for reduction of funds.

  The employer should keep in mind that classified employees are not reported to CalSTRS and all CalSTRS members in that class should be treated the same.

• Administrative contracts are issued each year. Would it be feasible to simply change the number of work days on the contract to reflect the new work year and compensation?
  
  

  Yes, it would be feasible. Each employer must determine how they want these changes on contracts, employment agreements, bargaining contracts or any other such document to be adjusted.