Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Governance Pension topic
No spam. Unsubscribe anytime.
Board amends articles and bylaws to preserve participation in state pension plan
Summary
Directors approved amendments to the school's articles of incorporation and bylaws so the charter remains eligible to participate in the state retirement plan, adding dissolution language required by IRS guidance (assets must transfer to a public K‑12 entity or political subdivision).
The Natomas Charter District board voted April 20 to amend its articles of incorporation and bylaws to comply with requirements tied to continued participation in the state retirement plan referenced in board materials as 'Calsters.'
Administrators said the IRS guidance cited (IRS Notice 2015‑07) and applicable plan rules require that, upon dissolution or final liquidation, any remaining assets be distributed to another public K‑12 entity or a political subdivision of California. ‘‘Short version of the story, our money or assets, anything that we would have when we have to close have to either go back to the state of California, to the county office of education, or to a school district,’’ the presenting administrator said while explaining the amendment language.
The board approved an amendment to article six of the articles of incorporation to add the required dissolution language and then approved a matching bylaws change. Legal counsel provided the specific language included in the packet; administrators said the next steps include signing an attestation and updating salary agreements and job descriptions by the next compliance deadline to demonstrate roles comparable to district employees.
Why it matters: The change preserves the charter’s ability to participate in the state retirement plan; without the amendment, the school could risk losing access to the plan or jeopardizing benefits compliance.
What’s next: The administration will sign required attestations and update job descriptions and salary agreements; board members were asked to sign attestation documents where required.
