BILL ANALYSIS Ó
AB 989
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Date of Hearing: April 17, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 989 (Mullin) - As Introduced: February 22, 2013
Policy Committee: PERSSVote:7-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires the California State Teachers' Retirement
System (CalSTRS) to change communications to members about their
account information. 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 Teachers' Retirement Board (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.
FISCAL EFFECT
Initial implementation costs are expected to be approximately
$50,000. Potential and substantial savings in excess of
$500,000 annually due to decreased costs associated with
printing and mailing information to members.
COMMENTS
1)Purpose . According to the author, this bill provides CalSTRS
the authority to provide the annual Retirement Progress
AB 989
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Report, along with various other required retirement
communication, electronically in lieu of mailing. However,
the author notes, the member can still request to continue
receiving the communication by mail. The author contends
providing such communication electronically is likely to
significantly decrease the number of documents printed and
mailed resulting in significant savings.
2)Support . CalSTRS, the bill's sponsor, states this bill
improves the delivery of benefits and services and provides
more effective and efficient administration of the retirement
plan. CalSTRS contends this bill would likely significantly
reduce the number of reports that are printed and mailed,
which would help support CalSTRS's ongoing commitment to
sustainability and create savings for the system.
3)Previous legislation .
a) AB 2663 (PERSS Committee), Chapter 864, Statutes of
2012, 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.
b) AB 232 (Hill and Fletcher), Chapter 90, Statutes of
2009, allowed CalSTRS to (1) prescribe the form of
accepting electronically signed applications and documents,
and (2) avoid mailing a copy of benefit payment information
when payments are made by electronic funds transfer, unless
there is a change in the net amount paid.
1)There is no registered opposition to this bill.
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081