BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 232
                                                                  Page  1

          Date of Hearing:   April 1, 2009

            ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL  
                                      SECURITY
                                 Ed Hernandez, Chair
                     AB 232 (Hill) - As Amended:  March 25, 2009
           
          SUBJECT  :   Teachers' retirement.

           SUMMARY  :   Allows the California State Teachers' Retirement  
          System (CalSTRS) to prescribe the form for accepting  
          electronically signed applications and documents and 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.  Specifically,  this bill  :  

          1)Authorizes CalSTRS to develop and implement a process whereby  
            they can accept electronic signatures from members while  
            maintaining the same level of security as required by current  
            law.

          2)Allows CalSTRS to discontinue mailing payment information for  
            direct deposit payments, as specified.

          3)Requires CalSTRS to make the payment information available to  
            members electronically.

          4)Requires CalSTRS to mail payment information when there is an  
            adjustment in the allowance or a change in any amount deducted  
            from the allowance.

           EXISTING LAW  requires that when CalSTRS makes a payment to a  
          benefit recipient using direct deposit, a copy of the payment  
          information must be mailed to the recipients, unless the  
          recipient informs CalSTRS that they do not want to receive the  
          payment information.

           FISCAL EFFECT  :   Unknown.

           COMMENTS  :   According to the sponsor, "Currently, CalSTRS uses  
          technology to provide efficient member service, but its ability  
          to do so is limited by current law.  Under existing law, CalSTRS  
          may send payments to retired members, disabled members or other  
          beneficiaries through direct deposit.  However, CalSTRS still  
          sends a written copy of the payment information to the benefit  








                                                                  AB 232
                                                                  Page  2

          recipients, unless those recipients notify CalSTRS that they do  
          not want to receive the payment information.  Also, CalSTRS uses  
          its Website to allow members to access their account  
          information.  However, if members want to submit signed forms,  
          they have to print them off the website or have CalSTRS mail  
          them a copy and then they return the signed forms by mail."

          Supporters conclude, this bill "?would improve the delivery of  
          benefits and services and provide more effective and efficient  
          administration of the retirement system."





           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California State Teachers' Retirement System (Sponsor)

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Karon Green / P.E., R. & S.S. / (916)  
          319-3957