BILL NUMBER: SB 984	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Walters

                        FEBRUARY 11, 2014

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


	LEGISLATIVE COUNSEL'S DIGEST


   SB 984, as introduced, Walters. State teachers' retirement law.
   The Teachers' Retirement Law (TRL) creates the Defined Benefit
Program of the State Teachers' Retirement Plan for the provision of
benefits to members of the plan, which is administered by the
Teachers' Retirement Board. The Defined Benefit Program is funded by
employer and employee contributions as well as investment returns and
state appropriations. Employee and employer contributions are
deposited in the Teachers' Retirement Fund, which is continuously
appropriated.
   This bill would make a nonsubstantive change to TRL provisions
prescribing employer contributions and their deposit.
   Vote: majority. Appropriation: no. Fiscal committee: no.
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
  accounting for  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 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.