Anthony Portantino
- Democratic
- Senator
- District 25
Author
(1) Existing law, the Teachers' Retirement Law, establishes the State Teachers' Retirement System (STRS) and creates the Defined Benefit Program of the State Teachers' Retirement Plan, which provides a defined benefit to members of the program, based on final compensation, credited service, and age at retirement, subject to certain variations. Under existing law, STRS is governed by the Teachers' Retirement Board (board) . Existing law permits members retired for service from STRS to perform retired member activities without reinstatement into the system if certain conditions are met. Existing law limits the postretirement compensation of a retired member of the program, in any school year, to an amount calculated by STRS each July 1 equal to 12 of the median final compensation of all members who retired for service during the fiscal year ending in the previous calendar year. This bill would modify that calculation so the limitation of postretirement compensation, in any school year, is instead an amount calculated by STRS each July 1 equal to 70% of the median final compensation of all members who retired for service during the fiscal year ending in the previous calendar year. Existing law establishes an additional postretirement compensation limit of $0 during the first 180 calendar days after the most recent retirement of a retired member for the performance of retired member activities. Under existing law, if a retired member has attained normal retirement age at the time compensation is earned, this postretirement compensation limit does not apply if the appointment has been approved by the employer in a public meeting and a resolution containing certain information has been adopted by the governing body of the employer, as specified. This bill would instead authorize a member retired from service to perform retired member activities, notwithstanding the above-mentioned 180 calendar days compensation limitation, if a request for exemption containing specified information is submitted by the Superintendent, the county superintendent of schools, or the chief executive officer of a community college to STRS, under penalty of perjury, as prescribed. By expanding the crime of perjury, the bill would impose a state-mandated local program. This bill would require a written copy or copies of the completed documentation that substantiates the need for the request for exemption to be submitted to the exclusive representative of employees prior to the retired member's performance of retired member activities. The bill, among other changes, would also require the board to submit, on or before February 1, 2027, to specified committees of the Legislature a report that includes, among other things, the total number of exemption requests received by STRS from July 1, 2024, to June 30, 2026, inclusive. (2) Existing law establishes the Cash Balance Benefit Program, administered by the board, as a separate benefit program within the State Teachers' Retirement Plan for purposes of providing a retirement plan for persons employed to perform creditable service for less than 50% of full-time equivalent service. Existing law provides that the normal retirement age for the program is 60 or 62 years of age, as applicable. Under the program, a participant retired for service may perform retired participant activities, but prohibits the participant from making contributions to the plan or accruing service credit under the Defined Benefit Program based on compensation earned from that service. Under the program, if the retired participant performs retired participant activities, receives compensation paid in cash for those activities, and meets other specified conditions, the annuity paid to the retired participant is reduced by the amount of compensation. Existing law, however, does not require reduction of the participant's annuity if the governing body of the employer, among other things, approves the appointment of the retired participant by resolution. This bill would instead exempt a retired participant from the annuity reduction requirement if the Superintendent, the county superintendent of schools, or the chief executive officer of a community college submits a request for exemption to STRS with certification, under penalty of perjury, of specified information. By expanding the crime of perjury, the bill would impose a state-mandated local program. This bill would require a written copy or copies of the completed documentation that substantiates the need for the request for exemption to be submitted to the exclusive representative of employees prior to the retired participant's performance of retired participant activities. (3) This bill would make all of the above-described changes effective from only July 1, 2024, to June 30, 2026, inclusive, before reverting to existing law. The bill would also make legislative findings and declarations in support of its provisions. (4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.
Approved by the Governor.
Chaptered by Secretary of State. Chapter 885, Statutes of 2023.
Enrolled and presented to the Governor at 4 p.m.
Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2471.) Ordered to engrossing and enrolling.
In Senate. Concurrence in Assembly amendments pending.
Read third time. Passed. (Ayes 79. Noes 0. Page 2967.) Ordered to the Senate.
Read second time. Ordered to third reading.
September 1 set for first hearing. Placed on APPR. suspense file.
From committee: Do pass. (Ayes 16. Noes 0.) (September 1).
From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (August 23). Re-referred to Com. on APPR.
Joint Rule 61(a)(10) suspended. (Ayes 72. Noes 0. Page 2729.)
From committee with author's amendments. Read second time and amended. Re-referred to Com. on P.E. & R.
July 12 hearing postponed by committee.
Read second time and amended. Re-referred to Com. on P.E. & R.
From committee: Do pass as amended and re-refer to Com. on P.E. & R. (Ayes 6. Noes 0.) (June 28).
From committee with author's amendments. Read second time and amended. Re-referred to Com. on ED.
In Assembly. Read first time. Held at Desk.
Read third time. Passed. (Ayes 39. Noes 0. Page 1262.) Ordered to the Assembly.
Read second time. Ordered to third reading.
From committee: Do pass. (Ayes 7. Noes 0. Page 1183.) (May 18).
Set for hearing May 18.
May 15 hearing: Placed on APPR suspense file.
Set for hearing May 15.
Read second time and amended. Re-referred to Com. on APPR.
From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 898.) (April 26).
Set for hearing April 26.
From committee: Do pass and re-refer to Com. on L., P.E. & R. (Ayes 7. Noes 0. Page 790.) (April 19). Re-referred to Com. on L., P.E. & R.
From committee with author's amendments. Read second time and amended. Re-referred to Com. on ED.
Set for hearing April 19.
Re-referred to Coms. on ED. and L., P.E. & R.
From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.
From printer. May be acted upon on or after March 20.
Introduced. Read first time. To Com. on RLS. for assignment. To print.
| Bill Text Versions | Format |
|---|---|
| SB765 | HTML |
| 02/17/23 - Introduced | |
| 03/20/23 - Amended Senate | |
| 04/11/23 - Amended Senate | |
| 05/03/23 - Amended Senate | |
| 06/19/23 - Amended Assembly | |
| 06/30/23 - Amended Assembly | |
| 08/17/23 - Amended Assembly | |
| 09/11/23 - Enrolled | |
| 10/13/23 - Chaptered |
| Document | Format |
|---|---|
| 04/17/23- Senate Education | |
| 04/25/23- Senate Committee on Labor, Public Employment and Retirement | |
| 05/12/23- Senate Appropriations | |
| 05/20/23- Sen. Floor Analyses | |
| 06/27/23- Assembly Education | |
| 08/21/23- Assembly Committee on Public Employment and Retirement | |
| 08/30/23- Assembly Appropriations | |
| 09/05/23- ASSEMBLY FLOOR ANALYSIS | |
| 09/06/23- Sen. Floor Analyses |
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