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 wouldbegin insert provide the duty to fix the compensation of specified executive and managerial positions, described above, applies to a single position in the various job categories. The
bill wouldend insert additionally require the board to fix the compensation ofbegin delete theend deletebegin insert aend insert chief operating officer andbegin delete oneend deletebegin insert aend insert chief financial officer. 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.
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:begin insert aend insert
5 chief executive officer,begin delete oneend deletebegin insert aend insert chief operating officer,begin insert aend insert chief
6financial officer,begin insert aend insert system actuary,begin insert
aend insert general counsel,begin insert aend insert chief
7investment officer, and other investment officers and portfolio
8managers whose positions are designated managerial pursuant to
9Section 18801.1 of 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. 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:
22(1) Ten percent for the 2017-18 fiscal year.
23(2) Five percent for any fiscal year subsequent to 2017-18.
P3 1(c) When a position specified in subdivision (a) is filled through
2a general civil service appointment, it shall be filled from an
3eligible list based on an examination that was held on an open
4basis, and tenure in those positions shall be subject to the provisions
5of Article 2 (commencing with Section 19590) of Chapter 7 of
6Part 2 of Division 5 of Title 2 of the Government Code. In addition
7to
the causes for action specified in that article, the board may take
8action under the article for causes related to its fiduciary
9responsibility to its members, including the employee’s failure to
10meet specified performance objectives.
11(d) An individual who held a position designated in subdivision
12(a), was a member of the board, or was in a career executive
13assignment position that reported directly to either the chief
14executive officer or the chief operating officer, shall not, for a
15period of two years after leaving that position, for compensation,
16act as agent or attorney for, or otherwise represent, any other
17person, except the state, by making any formal or informal
18appearance before or by making any oral or written communication
19to the board, or any officer or employee thereof, if the appearance
20or communication is made for the purpose of
influencing
21administrative or legislative action or any action or proceeding
22involving the issuance, amendment, awarding, or revocation of a
23permit, license, grant, contract, or sale or purchase of goods or
24property.
O
97