School Employees Fund
Federal assistance provided emergency unemployment tax relief to School Employees Fund (SEF) employers. The law allows a 50 percent credit for Unemployment Insurance (UI) benefit charges for benefit weeks between March 13, 2020, and April 3, 2021. With the most recent federal relief package, the law allows a 75 percent credit for UI benefit charges for benefit weeks between April 4, 2021, and September 4, 2021. This credit will be applied to the SEF and the SEF will reimburse the Unemployment Insurance fund for benefit charges paid.
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.
The SEF is a joint, pooled-risk fund administered by the EDD, which collects contributions based on a percentage of total wages paid by public schools and community college districts. The SEF reimburses the Unemployment Insurance (UI) Fund for the cost of UI benefits paid to former school employees.
All 72 community college districts and 1,334 county offices of education, public school districts, and charter schools participate in the SEF. They have 964,132 employees and pay more than $49.6 billion in wages annually.
All school employers participating in the SEF have the same UI contribution rate. The rate is determined by law and is intended to provide one full year of UI benefit payments.
Increase for State Fiscal Year 2021/22
The EDD has issued all SEF Participants their State Fiscal Year (SFY) 2021/2022 UI contribution rate and included a letter to all SEF participants providing further information about the rate.
As you are aware, the COVID-19 pandemic increased UI benefit claims for many employers. SEF participants reimburse the actual cost of benefits through a contribution rate calculated in part based on the amount disbursed for UI claims. The increase in UI claims during the pandemic requires an increase in the SEF participant contribution rate for the next fiscal year to 1.23 percent.
At this time, it is anticipated that the contribution rate of 1.23 percent will generate sufficient revenue to restore the fund reserve before the end of SFY 21/22. In the event this occurs, CUIC section 823(c) provides the Director, in consultation with the fund’s School Employer Advisory Committee, the authority to decrease the contribution rate. We will provide further communication on this, as information becomes available.
A Local Experience Charge (LEC) is applied to total benefits paid in a quarter. The individual employer LEC rate can be 0, 5, 10, or 15 percent. New SEF participants must pay a 10 percent LEC for the first three complete fiscal years.
Forms and Publications
- Annual Report to the Fund Participants – 2019-2020 (PDF)
- Annual Report to the Fund Participants – 2018-2019 (PDF)
- Annual Report to the Fund Participants – 2017-2018 (PDF)
- Annual Report to the Fund Participants – 2016-2017 (PDF)
- DE 938SEF – Quarterly Return Adjustment Form for School Employers (PDF)
- DE 9423 – Quarterly Contribution Return for School Employers (PDF)
- DE 231SEF – Employment for the School Employees Fund (PDF)
- DE 3450SEF – Claims Management Handbook for School Employers (PDF)
For more information, contact the School Employees Fund (SEF) at 1-916-653-5380.
For information about the UI benefits paid to your former employees, visit: