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Noncreditable Compensation. Expenses Paid or Reimbursed by an Employer   

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(a) An expense paid by an employer includes any of the following:

(1) Compensation allocated to an employee to cover a cost the employee is expected to incur in the course of performing duties for that employer, which could otherwise be covered by the employer or provided in the form of a reimbursement of the cost.

(2) Cash paid directly to a third party or a cost that is otherwise covered by the employer.

(3) Cash in lieu of, or cash remaining from, compensation allocated to cover a cost pursuant to paragraph (1).

(b) An expense reimbursed by an employer is cash paid to the employee that meets all the following requirements:

(1) There is a business connection to the expenditure.

(2) The employee is required to provide documentation or accounting of the expenditure to the employer.

(3) The employee is required to return excess reimbursements or advances to the employer if actual incurred expenses are less than the amount reimbursed or advanced.

(c) If any part of creditable compensation is restructured into an expense paid or reimbursed by the employer, that amount will not be considered creditable compensation beginning with the effective date of the restructure.

Authority cited:

Education Code 22119.2

Education Code 22305


Education Code 22119.2

(Added by Register 2014, No. 47.)