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Cal. Code Regs. Tit. 2, § 570 Final Settlement Pay
Library | California Code of Regulations |
Edition | 2023 |
Currency | Current through Register 2023 Notice Reg. No. 52, December 29, 2023 |
Citation | Cal. Code Regs. Tit. 2, § 570 |
Year | 2023 |
"Final settlement pay" means any pay or cash conversions of employee benefits in excess of compensation earnable, that are granted or awarded to a member in connection with or in anticipation of a separation from employment. Final settlement pay is excluded from payroll reporting to PERS, in either payrate or compensation earnable.
For example, final settlement pay may consist of severance pay or so-called "golden parachutes". It may be based on accruals over a period of prior service. It is generally, but not always, paid during the period of final compensation. It may be paid in either lump-sum, or periodic payments.
Final settlement pay may take the form of any item of special compensation not listed in Section 2undefined571. It may also take the form of a bonus, retroactive adjustment to payrate, conversion of special compensation to payrate, or any other method of payroll reported to PERS.
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