1. (a) In assessing the consistency of an increase that occurs during the period of time specified in subdivision (f), an increase is consistent if the employer demonstrates that it is due to any of the following:

   1. (1) A restructure of compensation that is a permanent change, as indicated by not meeting either of the criteria for inconsistency described in subdivision (d).
   2. (2) A salary deferral due to a reduction in school funds.
   3. (3) A commensurate percentage increase in compensation earnable for the majority of members employed by the same employer.
   4. (4) A change in duties required of the employee that is incorporated in the first contract for the immediate successor to the position.
   5. (5) An increase in responsibility of the employee that is incorporated in the first contract for the immediate successor to the position.

   6. (6) An increase that establishes pay parity as demonstrated by any of the following:

      1. (A) Commensurate base pay for that same position in the past.
      2. (B) Commensurate base pay for other employees performing similar duties for the same employer or other employers.
   7. (7) A commensurate base pay for the immediate successor.
   8. (8) A commensurate base pay for the immediate predecessor.
   9. (9) More education or experience than the immediate predecessor.
   10. (10) An increase in compensation that is required to recruit for a position which is directly responding to a specific time-bound financial crisis, not to exceed 150 percent of the base pay of the predecessor in the position or the most similar position prior to the crisis. For the purposes of this paragraph, a specific time-bound financial crisis is, for school districts, a negative certification of financial obligations pursuant to Section 1240 of the Education Code or, for community college districts, a finding of serious hardship of financial condition as defined in subdivision (c) of Section 59204 of Subchapter 4, Chapter 10, Division 6 of this Title.
2. (b) In assessing the consistent treatment of compensation for a position, if the successor's base pay is lower than the member's, the member's compensation shall not be presumed to be inconsistent solely by reason of the reduced successor pay.
3. (c) In assessing the consistency of an increase that occurs during the period of time specified in subdivision (f), an increase that is not due to any of the circumstances listed in subdivision (a) is presumed to be inconsistent.

4. (d) A restructure of compensation pursuant to paragraph (1) of subdivision (a) is inconsistent if either of the following applies:

   1. (1) The restructure is effective on or after January 1, 2016, and is outside of that employer's standard bargaining or employment contract negotiation time frames.
   2. (2) The restructure is implemented for a class of one, and the change is reversed upon hire and negotiation of the first contract of the immediate successor.

5. (e) Notwithstanding subdivision (a), if there is determined to be a pattern of late career changes that result in additional compensation that the system determines was paid to enhance a member's benefits, such as, but not limited to, assignment of duties or responsibilities by an employer to employees during the final compensation period, the additional compensation for those duties is presumed to be inconsistent.

   1. (2) For a member whose initial final compensation after their most recent retirement is calculated using nonconsecutive periods of time due to a reduction in school funds as permitted by Education Code section 22134, the period of time begins four years prior to the first day used to calculate final compensation and ends on the last day used to calculate final compensation.

   (f)(1) For a member whose initial final compensation after their most recent retirement is calculated using a period of 36 or 12 consecutive months pursuant to Section 22134, 22134.5 or 22135 of the Education Code, the period of time is seven years preceding and including the last day used to calculate final compensation.

6. (g) This section shall become operative on July 1, 2027.

Note: Authority cited: Sections 22119.3, 22207, 22213, 22215, 22250, 22305, 22324.5 and 22458, Education Code. Reference: Sections 22115 and 22119.3, Education Code.

History

1. New article 5 (sections 27600-27602) and section filed 11-18-2014; operative 1-1-2015 (Register 2014, No. 47).

2. Amendment of subsections (b), (d) and (e)-(f)(2) filed 8-22-2017; operative 10-1-2017 (Register 2017, No. 34).

3. Change without regulatory effect amending subsections (f)(1)-(2) filed 6-20-2024 pursuant to section 100, title 1, California Code of Regulations (Register 2024, No. 25).

4. New subsection (g) filed 4-20-2026; operative 7-1-2026 (Register 2026, No. 17).

5. Repealer and new section filed 4-20-2026; operative 7-1-2027 (Register 2026, No. 17).