BILL ANALYSIS
SENATE PUBLIC EMPLOYMENT & RETIREMENT BILL NO: AB 232
Lou Correa, Chair Hearing date: June 8, 2009
AB 232 (Hill) as amended 4/16/09 FISCAL: YES
STRS: ELECTRONIC SIGNATURES PERMITTED AND ELIMINATION OF
PAYMENT INFORMATION ON ELECTRONIC FUNDS TRANSFER UNLESS
REQUESTED BY THE STRS MEMBER
HISTORY :
Sponsor: Teachers Retirement Board
Prior legislation: none
ASSEMBLY VOTES :
PER & SS 6-0 4/01/09
Appropriations 16-0 4/22/09
Assembly Floor 79-0 5/04/09
SUMMARY :
Would allow the California State Teachers' Retirement System
(STRS) to:
a) prescribe the form for accepting electronically signed
applications and documents, and
b) 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.
BACKGROUND AND ANALYSIS :
1) Existing STRS law :
a) requires that, when STRS 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 STRS that they do not want to receive the
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payment information , and
b) does not currently allow electronic signatures on any
of the System's form.
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2) This bill :
a) authorizes STRS to develop and implement a process for
accepting electronic signatures from members, while
maintaining the same level of security as required by
existing STRS law,
b) allows STRS to discontinue mailing payment information
for direct deposit payments, as specified,
c) requires STRS to make the payment information available
to members electronically,
d) requires STRS to mail payment information when there is
an adjustment in the allowance or a change in any amount
deducted from the allowance, and
e) requires STRS to notify the member that they have a
right to request, in writing, that a paper copy of this
information be mailed monthly.
FISCAL EFFECT :
According to the Assembly Appropriations Committee analysis:
"Administrative savings of about $1 million to CalSTRS,
including: $300,000 savings from the provision allowing
acceptance of electronic signatures, and $700,000 from the
provision allowing CalSTRS to no longer mail copies of
benefit payment information to individuals electing direct
deposit."
COMMENTS :
1) Arguments in support
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
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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
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."
2) SUPPORT :
California Teachers Association (CTA)
3) OPPOSITION :
None to date
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