(a) Beginning June 1, 1996, prior to the Cash Balance Plan becoming effective, and prior to the beginning of each plan year thereafter, the board, by plan amendment with respect to the Cash Balance Benefit Program, shall declare the minimum interest rate for crediting employee accounts and employer accounts with respect to the Cash Balance Benefit Program during the following plan year.
(b) All interest shall be computed at the minimum interest rate on the balance of the employee account and the employer account and shall be compounded daily.
(c) Interest shall not be credited to employee accounts and employer accounts that have been transferred to the Annuitant Reserve for payment of an annuity.
(Amended by Stats. 2016, Ch. 218, Sec. 43. (SB 1352) Effective January 1, 2017.)
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