BILL NUMBER: AB 611	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Bonta

                        FEBRUARY 20, 2013

   An act to amend Section 22950 of the Education Code, relating to
state teachers' retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   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 1.  Section 22950 of the Education Code is amended to read:

   22950.  (a) Employers shall contribute monthly to the system 8
percent of the creditable compensation upon which members'
contributions under this part are based.
   (b) From the contributions required under subdivision (a), there
shall be deposited in the Teachers' Retirement Fund an amount,
determined by the board, that is not less than the amount, determined
in an actuarial valuation of the Defined Benefit Program pursuant to
Section 22311.5, necessary to finance the liabilities associated
with the benefits of the Defined Benefit Program over the funding
period adopted by the board, after taking into account the
contributions made pursuant to Sections 22901, 22951, and 22955.
   (c) The amount of contributions required under subdivision (a)
that is not deposited in the Teachers' Retirement Fund pursuant to
subdivision (b) shall be deposited directly into the Teachers' Health
Benefits Fund, as established in Section 25930, and shall not be
deposited into or transferred from the Teachers' Retirement Fund.
   (d) (1) Notwithstanding subdivisions (b) and (c), there 
may   shall  be deposited into the Teachers'
Retirement Program Development Fund, as established in Section
22307.5, from the contributions required under subdivision (a), an
amount determined by the board, not to exceed the limit specified in
paragraph (2).
   (2) The balance of deposits into the Teachers' Retirement Program
Development Fund, minus the subsequent transfer of funds, with
interest, into the Teachers' Retirement Fund pursuant to subdivision
(e) of Section 22307.5, shall not exceed 0.01 percent of the total of
the creditable compensation of the fiscal year ending in the
immediately preceding calendar year upon which member's contributions
to the Defined Benefit Program are based.
   (3) The deposits described in this subdivision shall not be
deposited into, or transferred from, the Teachers' Retirement Fund.