AB 611, as introduced, Bonta. State teachers’ retirement.
The State Teachers’ Retirement System provides pension benefits based in part upon credited service. Existing law states that by accepting employment to perform creditable service, a member consents to make contributions for service and compensation. The Teachers’ Retirement Law requires the employer to contribute monthly to the system 8% of the creditable compensation upon which members’ contributions are based. The Teachers’ Retirement Law requires portions of the employer contributions to be deposited in the Teachers’ Retirement Fund and the Teachers’ Health Benefits Fund. Existing law authorizes a limited amount from the employer contributions to also be deposited into the Teachers’ Retirement Program Development Fund.
This bill would make that deposit into the Teachers’ Retirement Program Development Fund a required deposit.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 22950 of the Education Code is amended
2to read:
(a) Employers shall contribute monthly to the system
28 percent of the creditable compensation upon which members’
3contributions under this part are based.
4(b) From the contributions required under subdivision (a), there
5shall be deposited in the Teachers’ Retirement Fund an amount,
6determined by the board, that is not less than the amount,
7determined in an actuarial valuation of the Defined Benefit
8Program pursuant to Section 22311.5, necessary to finance the
9liabilities associated with the benefits of the Defined Benefit
10Program over the funding period adopted by the board, after taking
11into account the contributions made pursuant to Sections 22901,
1222951, and 22955.
13(c) The amount of contributions required under subdivision (a)
14that is not deposited in the Teachers’ Retirement Fund pursuant
15to subdivision (b) shall be deposited directly into the Teachers’
16Health Benefits Fund, as established in Section 25930, and shall
17not be deposited into or transferred from the Teachers’ Retirement
18Fund.
19(d) (1) Notwithstanding subdivisions (b) and (c), therebegin delete mayend delete
20begin insert shallend insert be deposited into the Teachers’ Retirement Program
21Development Fund, as established in Section 22307.5, from the
22contributions required under subdivision (a), an amount determined
23by the board, not to exceed the limit specified in paragraph (2).
24(2) The balance of
deposits into the Teachers’ Retirement
25Program Development Fund, minus the subsequent transfer of
26funds, with interest, into the Teachers’ Retirement Fund pursuant
27to subdivision (e) of Section 22307.5, shall not exceed 0.01 percent
28of the total of the creditable compensation of the fiscal year ending
29in the immediately preceding calendar year upon which member’s
30contributions to the Defined Benefit Program are based.
31(3) The deposits described in this subdivision shall not be
32deposited into, or transferred from, the Teachers’ Retirement Fund.
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