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HomeEducation CodeDiv. 1Pt. 14Ch. 7§ 26606 Cash Balance Earnings Credit

§ 26606 Cash Balance Earnings Credit

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

§ 26606 Cash Balance Earnings Credit

Key Takeaways

  • •Extra money can be added to your work savings account if the board decides to give a bonus.
  • •The bonus is a percentage increase based on how much money is in your account at the end of the year.
  • •You only get the bonus if your account is still active. If you're already getting paid out (like retirement payments), you don't get the bonus.

Example

Imagine you have a savings account at work, and at the end of the year, there's $10,000 in it. The board decides to give everyone a 5% bonus.

The board will add 5% of your $10,000 to your account as extra money. But if you're already retired and getting monthly payments from this account, you won't get the bonus.

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

Official Source
View on CA.gov

§ 26606 Cash Balance Earnings Credit

Any additional earnings credit declared shall be determined as a specified percentage increase in the closing balance of each employee account and employer account with respect to the Cash Balance Benefit Program measured as of the last day of the plan year. The additional earnings credit shall be credited to employee account and employer account balances as of the date the board declares the additional earnings credit is to be applied. The additional earnings credit shall not be credited to employee accounts and employer accounts that have been transferred to the Annuitant Reserve for payment of an annuity under the Cash Balance Benefit Program. (Amended by Stats. 1998, Ch. 965, Sec. 270. Effective January 1, 1999.)

Last verified: January 23, 2026

Key Terms

additional earnings creditCash Balance Benefit ProgramAnnuitant Reserve

Related Statutes

  • § 26604 Cash Balance Interest Rates
  • § 26605 Excess Earnings Distribution Rules
  • § 26607 Cash Balance Annuity Adjustments
  • § 26105 Cash Balance Annuity Reserve
  • § 26129 Gain And Loss Reserve

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Education Code. Section 26606.
View Official Source