§ 45344 Employer Prior Service Contributions

• •If someone worked before joining a retirement plan, their boss has to pay extra to cover those past years.
• •The boss can spread out these extra payments over a set number of years.
• •This rule was added in 1949 to make sure past work is fairly paid for.

A teacher worked for 5 years before joining the school’s retirement plan. The school now has to pay extra to cover those 5 years.

The school can pay this extra money over time, like 10 years, instead of all at once.