School Employees Fund
Public school districts (kindergarten through 12th grade) and community colleges may elect to participate in the School Employees Fund (SEF), which is a special reimbursable financing method available for school districts.
About the School Employees Fund
SEF is a joint, pooled-risk fund administered by the Employment Development Department (EDD), which collects contributions based upon a percentage of total wages paid by public schools and community college districts. Money deposited in the SEF is used to reimburse the Unemployment Insurance (UI) Fund for the cost of UI benefits paid to former employees of those school employers who have elected this option in lieu of paying the tax-rated method, as is required of private sector employers.
All 72 community college districts and 1,251 county offices of education, public school districts, and charter schools participate in the SEF. They have more than 971,000 employees and pay wages in excess of $40.3 billion annually.
Historical Information
Assembly Bill 644, passed by the legislature on July 19, 1978, expanded coverage under the Classified School Employees Fund to all school employees and changed the name to the School Employees Fund. Since 1972, this method of financing has been used by 99 percent of the school employers.
Contribution Rate
All school employers participating in the SEF have the same UI contribution rate. The rate is based on costs incurred by all SEF participants and the SEF balance on December 31 of the applicable year. For State Fiscal Year (SFY) 2009-10, the rate will remain at .30 percent. The same rate set for SFY 2008-09.
The School Employer Advisory Committee (SEAC) recommended raising the calculated UI contribution rate of .09 percent to the maximum of three-tenths of one percent (.30 percent) per the California Unemployment Insurance Code (CUIC) Section 823(2)(c) due to the economic downturn for school employers throughout California. The EDD Director, Patrick Henning, approved the SEAC's recommendation to set the rate at .30 percent for SFY 2009-10.
A Local Experience Charge (LEC) with an individual employer rate of 0, 5, 10, or 15 percent is applied to total benefits paid in a quarter. New SEF participants are subject to a 10 percent LEC for the first three complete calendar years.
School Employer Unemployment Insurance Seminar
The 2009 Unemployment Insurance Seminar for School Employers is postponed until 2010 (or later) due to the economic conditions everyone is experiencing. The School Employer Advisory Committee (SEAC) and UI Technical Subcommittee (UITS) are planning to have regional workshops at various County Offices of Education throughout California during State Fiscal Year 2009-2010.
The regional workshops will include presentations such as these:
- UI Claims Management
- Separations (Quits and Discharges)
- Reasonable Assurance
- Q & A with UI Specialists (Claims and Forms)
Information will be mailed when workshop dates are scheduled.
For more information, please contact the School Employees Fund at (916) 653-5380.
Forms and Publications
- Annual Report to the Fund Participants - 2007-2008
- DE 6 - Rev. 5 (1-08) - Quarterly Wage and Withholding Report
- DE 938SEF - Rev. 8 (6-02) - Quarterly Return Adjustment Form for School Employers
- DE 9423 - Rev.9 (5-06) - Quarterly Contribution Return for School Employers
- DE 231SEF - Rev. 2 (7-08) - Employment for the School Employees Fund
- DE 3450SEF - Rev. 3 (5-08) - Claims Management Handbook for School Employers
For additional information about the SEF, call (916) 653-5380.