Business Services - Off Salary Schedule Payment Examples to Avoid Penalties from CalSTRS

Effective July of 2013, CalSTRS implemented regulations for assessing penalties and interest for late payments.  Late payments are generally associated with late reporting of earnings.  While retroactive salary schedule settlements are not subject to penalties and interest, retroactive off-schedule salary payments are.  However, off-schedule payments that are not retroactive are not subject to penalties and interest.  Marin County Office of Education offers to work with districts when drafting settlement language that include granting off-schedule payments; are not retroactive; and, are earned and payable at a specified time.   We encourage districts to work with us to avoid unintended penalties and interest. 

For your use we have prepared a few examples of how these settlement arrangements can be framed and coded to avoid penalties and interest from CalSTRS:  Off-Salary Schedule Payment Examples.