Each school employer shall be responsible for a quarterly local experience charge as set forth below, together with the charges or penalties set by the administrator for administrative indiscretions, including tardiness and error, as well as all costs for benefits and administration resulting from failure to properly cover an employee. The reimbursement for charges shall be delinquent days from the date of notice and if not paid within the time required, the school employer shall pay a penalty of percent of the unpaid amount, plus interest at the adjusted annual rate established pursuant to

Section of the Revenue and Taxation Code from and after the date of delinquency until paid. The local experience charge to be levied against each school employer shall be computed as follows: Local Experience Charge (

a) The local experience charge rate shall be percent for the first three complete fiscal years of participation in the School Employees Fund. (

b) The local experience charge rate for the fourth fiscal year, and each succeeding fiscal year, shall be determined by dividing the reserve balance at the end of the fiscal year which began months prior to the fiscal year for which the rate is being calculated by the benefits paid for that same prior fiscal year. The factor derived is the employer’s reserve ratio.

If, as of the computation date, the school employer’s reserve ratio equals or exceeds that which appears on any line in column of the following table, but is less than that which appears in column of that table, the local experience charge rate shall be the figure appearing on that same line in column of that table. (Column 1) (Column 2) (Column 3) Line Reserve Ratio Rate negative to 1.00 15% 2 1.00 to 2.00 10% 3 2.00 to 3.00 5% 4 3.00 or more 0% (

c) The rate determined in subdivision (

a) or (

b) shall be multiplied by the employer’s quarterly benefit charges to compute the local experience charges. The administrator shall, not later than March of each year, notify each school employer participating in the School Employees Fund of their local experience charge rate for the succeeding fiscal year.