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CalPERS clarifies how charter schools may join and report employees
Summary
CalPERS staff told employer representatives that charter schools may optionally participate in CalPERS, that participating charters must be set up and reported under the sponsoring county office, and that nonparticipating charter employees must not be reported.
CalPERS staff outlined how charter schools may join the retirement system and what employers must report.
CalPERS Division Chief Brad Hanson said the session would include charter school reporting guidance and turned the presentation over to Andrew Harris and Andy Nguyen of CalPERS. Andrew Harris, manager of the membership analysis and support team, said state law allows charter schools to choose whether to include employees in CalPERS but, when they do, charter employees are treated like regular school employees and reported under the sponsoring county office (for example, the Fresno County Office of Education).
Why it matters: Misreporting has occurred when districts or county offices reported workers who were employed by nonparticipating charters or when employees loaned to start‑up charters were not reclassified. CalPERS said improper reporting can result in members receiving service credit they are not eligible for, or conversely, members being excluded when they should be enrolled.
Harris said employers must enroll participating charter employees in myCalPERS using the charter school division, and report compensation per the publicly available pay schedule and the same rules that apply to district employees. He emphasized that employees of nonparticipating charter schools are excluded and must not be reported under the county office or district. He gave an example where staff loaned to a new charter became employees of that charter and should have been reported under the charter once it participated, not left on the district payroll for CalPERS purposes.
Andy Nguyen, from the pension contracts and prefunding area, described the contracting and eligibility review CalPERS performs when a charter applies. He said CalPERS reviews the charter petition and legal documents to confirm the charter is a public school sponsored by a district, county office of education or the state, that the petition or charter document includes the right of employees to participate, and that the charter demonstrates governmental control and fiscal responsibility (including asset disposition if the charter closes). Nguyen said the contracting process is performed via the county office of education; after eligibility is approved CalPERS will create a myCalPERS profile for the charter and notify the charter and county so payroll reporting can begin.
CalPERS provided a contact for contracting questions: pensioncontracts@calpers.ca.gov, and a separate inbox for membership reporting questions.
Ending: CalPERS urged employers to review their payroll practices to ensure charter employees are reported under the correct employer account and to contact CalPERS if a charter seeks to participate so the agency can complete the eligibility and contracting steps before employers begin reporting.
