CA AB1856

Authorizes members to suspend after-tax installment payments for service credit for up to 12 months, with automatic resumption at the end of the suspension period or upon member request.

Prohibits additional suspensions of installment payments for the same service for 3 years following resumption of payments, with interest accrued during suspension added to the balance due.

Permits members to prospectively cancel remaining unpaid installment payment balances at any time prior to retirement, reducing service credit proportionally to the unpaid amount.

Allows the board to cancel remaining unpaid installment balances if a member fails to make payments for 12 consecutive months.

Enables members to repurchase service credit lost through cancellation within 3 years (unless retired), with contributions including the unpaid balance, accrued interest, and any additional interest on installment payments.