AB 736, as amended, Cooley. State teachers’ retirement: executive positions.
The Teachers’ Retirement Law creates the State Teachers’ Retirement System and State Teachers’ Retirement Plan for the purpose of providing teachers and other specified employees with financially sound retirement plans. The law provides for the administration of the system and the plan by the Teachers’ Retirement Board and authorizes the board to appoint employees as necessary for those purposes. The law requires the board to fix the compensation of specified executive and managerial positions, including chief executive officer, chief investment officer, and general counsel.
This bill would additionally require the board to fix the compensation of the chief operating officer andbegin insert oneend insert chief financial officer.begin insert The bill would impose specified limits on the annual percentage increase in salary paid to a person who served in either of those positions on January 1, 2016, and who does not separate from service in that position prior to the date on which the increase is applied.end insert
Existing law prohibits, among others, a chief of staff, deputy chief executive officer, or an equivalent senior management position, for a period of 2 years after leaving that position, from appearing before or communicating with the board for the purpose of influencing actions or proceedings, for compensation, as specified.
This bill would remove that restriction from the positions listed above and instead apply the restriction to the chief operating officer and individuals who held career executive assignment positions that reported directly to either the chief executive officer or the chief operating officer.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 22212.5 of the Education Code is
2amended to read:
(a) Except as otherwise provided in subdivision (d),
4this section shall apply to the following positions in the system:
5chief executive officer,begin insert oneend insert chief operating officer, chief financial
6officer, system actuary, general counsel, chief investment officer,
7and other investment officers and portfolio managers whose
8positions are designated managerial pursuant to Section 18801.1
9of the Government Code.
10(b) Notwithstanding Sections 19825, 19826, 19829, and 19832
11of the Government Code, the board shall fix the compensation for
12the positions specified in subdivision (a). In so
doing, the board
13shall be guided by the principles contained in Sections 19826 and
1419829 of the Government Code, consistent with its fiduciary
15responsibility to its members to recruit and retain highly qualified
16and effective employees for these positions.begin insert The annual percentage
17increase in salary that may be paid pursuant to this section to a
18person who served as chief financial officer or as chief operating
19officer on January 1, 2016, and who does not separate from service
20in that position prior to the date on which the increase is applied,
21shall not exceed either of the following:end insert
22
begin insert(1)end insertbegin insert end insertbegin insertTen percent for the 2017-18 fiscal year.end insert
23
begin insert(2)end insertbegin insert end insertbegin insertFive percent for any fiscal year subsequent to 2017-18.end insert
24(c) When a position specified in subdivision (a) is filled through
25a general civil service appointment, it shall be filled from an
26eligible list based on an examination that was held on an open
27basis, and tenure in those positions shall be subject to the provisions
28of Article 2 (commencing with Section 19590) of Chapter 7 of
29Part 2 of Division 5 of Title 2 of the Government Code. In addition
P3 1to the causes for action specified in that article, the board may take
2action under the article for causes related to its fiduciary
3responsibility to its members, including the employee’s failure to
4meet specified performance objectives.
5(d) An individual who held a position designated in subdivision
6(a),
was a member of the board, or was in a career executive
7assignment position that reported directly to either the chief
8executive officer or the chief operating officer, shall not, for a
9period of two years after leaving that position, for compensation,
10act as agent or attorney for, or otherwise represent, any other
11person, except the state, by making any formal or informal
12appearance before or by making any oral or written communication
13to the board, or any officer or employee thereof, if the appearance
14or communication is made for the purpose of influencing
15administrative or legislative action or any action or proceeding
16involving the issuance, amendment, awarding, or revocation of a
17permit, license, grant, contract, or sale or purchase of goods or
18property.
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