AB 125, as amended, Wieckowski. State teachers’ retirement: executive and managerial positions.
The State Teachers’ Retirement Law, which is administered by the Teachers’ Retirement Board, prescribes a comprehensive system of rights and benefits for its members, including disability benefits, retirement benefits, and death benefits. Existing law requires the Teachers’ Retirement Board to fix the compensation of specified executive and managerial positions, including that of the chief executive officer, system actuary, general counsel, chief investment officer, and other investment officers and portfolio managers whose positions are designated as managerial, and to whom specified procedures and conflict-of-interest provisions apply.
This bill would add the positions of chief operating officer and chief financial officer to those positions for which the board is required to fix the compensation and would make the individuals holding those
positions subject to those conflict-of-interest provisions. The bill wouldbegin delete alsoend delete prohibit the salaries of the chief operating officer and the chief financial officer from exceeding 110% of the maximum salary payable to an investment director of the system, as specified. The bill wouldbegin delete additionallyend delete remove the positions of chief of staff and chief financial officer from those positions that are subject to conflict-of-interest provisions that limit postemployment appearances before, or communication to, the board.begin insert The bill would also require the board to report to the fiscal committees of the Legislature, as specified, on the cost savings realized because of these new positions.end insert
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 22212.5 of the Education Code is
2amended to read:
(a) Except as otherwise provided in subdivision (d),
4this section shall apply to the following positions in the system:
5chief executive officer, chief operating officer, chief financial
6officer, system actuary, general counsel, chief investment officer,
7and other investment officers and portfolio managers whose
8positions are designated managerial pursuant to Section 18801.1
9of the Government Code.
10(b) (1) Notwithstanding Sections 19816, 19825, 19826, 19829,
11and 19832 of the Government Code, the board shall fix the
12compensation for the positions specified in subdivision (a). In so
13doing, the board shall be guided by the principles contained in
14Sections 19826 and
19829 of the Government Code, consistent
15with its fiduciary responsibility to its members to recruit and retain
16highly qualified and effective employees for these positions.
17(2) The salary for the chief operating officer and the chief
18financial officer fixed pursuant to paragraph (1) shall not exceed
19110 percent of the maximum salary payable to an investment
20director of the system.
21(c) When a position specified in subdivision (a) is filled through
22a general civil service appointment, it shall be filled from an
23eligible list based on an examination that was held on an open
24basis, and tenure in those positions shall be subject to the provisions
25of Article 2 (commencing with Section 19590) of Chapter 7 of
26Part 2 of Division 5 of Title 2 of the Government Code. In addition
27to the
causes for action specified in that article, the board may take
28action under the article for causes related to its fiduciary
29responsibility to its members, including the employee’s failure to
30meet specified performance objectives.
P3 1(d) An individual who held a position designated in subdivision
2(a), or was a member of the board, a deputy chief executive officer,
3or was in an equivalent senior management position, shall not, for
4a period of two years after leaving that position, for compensation,
5act as agent or attorney for, or otherwise represent, any other
6person, except the state, by making any formal or informal
7appearance before or by making any oral or written communication
8to the board, or any officer or employee thereof, if the appearance
9or communication is made for the purpose of influencing
10administrative or legislative action
or any action or proceeding
11involving the issuance, amendment, awarding, or revocation of a
12permit, license, grant, contract, or sale or purchase of goods or
13property.
14(e) Twelve months after filling the chief operating officer
15position or chief financial officer position, the board shall report
16to the fiscal committees of the Legislature, in compliance with
17Section 9795 of the Government Code, on the improvements and
18cost savings realized because of these new positions. In particular,
19the board shall report on savings resulting from reduced
20contracting and greater use of internal resources. The board shall
21continue to report annually thereafter.
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