BILL ANALYSIS Ó
AB 989
Page 1
Date of Hearing: April 10, 2013
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL
SECURITY
Rob Bonta, Chair
AB 989 (Mullin) - As Introduced: February 22, 2013
SUBJECT : State teachers' retirement: account statements.
SUMMARY : Requires the California State Teachers' Retirement
System (CalSTRS) to make the annual statement of the member's
account information available electronically and allows the
Teachers' Retirement Board (TRB) to make the electronic copy the
default method by which the members receives the information, as
specified. Specifically, this bill :
1)Requires CalSTRS to make an electronic copy of the member's
individual Defined Benefit Program and Defined Benefit
Supplement accounts statement available to each member.
2)Authorizes the TRB to adopt a resolution making the electronic
copy of the account statement the default method by which a
member receives the information. However, a member may
specifically request to receive the annual statement by mail.
3)Specifies that until the TRB adopts the resolution, a paper
copy of the account statement will be mailed to the member, as
specified. However, a member may request to receive the
annual statement through the CalSTRS Web site in lieu of
mailing a paper copy.
EXISTING LAW requires the TRB to issue annually, to each active
and inactive member, a statement of the member's individual
Define Benefit Program and Defined Benefit Supplement accounts
provided the employer or member has informed CalSTRS of the
member's current mailing address. A member or participant may
indicate that he or she prefers to receive the annual statement
only through CalSTRS' secure member Web site.
FISCAL EFFECT : Unknown.
COMMENTS : According to the sponsor of the bill, CalSTRS,
"CalSTRS mails various required retirement related
communications to the member, nonmember spouse, participant,
nonparticipant spouse or beneficiary to whom that communication
AB 989
Page 2
is addressed. For example, CalSTRS mails an annual statement or
Retirement Progress Report to every active and inactive member
of the Defined Benefit Program and all participants of the Cash
Balance Program; unless, the member has opted to solely receive
an electronic version.
"CalSTRS also makes the Retirement Progress Report available to
all members electronically through the myCalSTRS secure member
website; however, members must have previously registered or go
through the registration process to establish a myCalSTRS
account in order to view their report through the secure web
portal."
According to the author, "This proposal would provide CalSTRS
the authority to provide the annual Retirement Progress Report
along with various other required retirement communication
electronically in lieu of mailing them, unless the member,
nonmember spouse, participant, nonparticipant spouse or
beneficiary to whom that communication is addressed,
specifically requests, in a manner specified by the board, to
continue receiving the communication by mail. Providing such
communication electronically would likely significantly decrease
the number of documents that are printed and mailed annually
resulting in a potential savings ranging from $500,000 -
$700,000 annually to the System and would help to support
CalSTRS' ongoing commitment to sustainability."
This bill is similar to AB 2663 (PER&SS Committee), Chapter 864,
Statutes of 2012, which, in part, allowed CalSTRS to determine
the form, including electronic, that county superintendents and
other employing agencies must use to furnish any information
concerning any member or beneficiary the board may require.
This bill is also similar to AB 232 (Hill and Fletcher), Chapter
90, Statutes of 2009, which allowed CalSTRS to (1) prescribe the
form of accepting electronically signed applications and
documents, and (2) not mail a copy of benefit payment
information when payments are made by electronic funds transfer,
unless there is a change in the net amount paid.
REGISTERED SUPPORT / OPPOSITION :
Support
California State Teachers' Retirement System (Sponsor)
AB 989
Page 3
Opposition
None on file
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957