SB 984

Bill Subjects

Abstract

Existing law creates the Defined Benefit Program of the State Teachers' Retirement System for the purpose of providing pension benefits to members of the system. The Defined Benefit Program is funded by employer and employee contributions as well as investment returns and state appropriations. This bill would appropriate $1,000,000,000 from the General Fund for transfer to the Teachers' Retirement Fund to reduce the unfunded liability of the Defined Benefit Program of the State Teachers' Retirement System. The bill would also appropriate another $1,000,000,000 to the Teachers' Retirement Fund if the Legislative Analyst determines in the May Revision of the 2014–15 Budget that the state has collected more than $1,000,000,000 in unanticipated General Fund revenue. The bill would require the Governor to form a working group of specified parties to propose long-term funding solutions for the unfunded liability of the Defined Benefit Program of the State Teachers' Retirement System and to report those solutions to the Legislature by January 1, 2015. The bill would make a statement of legislative findings and declarations. This bill would declare that it is to take effect immediately as an urgency statute.