BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 2663 (Furutani) - California State Teachers' Retirement
System
Amended: June 20, 2012 Policy Vote: PE&R 4-0
Urgency: No Mandate: No
Hearing Date: August 6, 2012
Consultant: Maureen Ortiz
This bill does not meet the criteria for referral to the
Suspense File.
Bill Summary: AB 2663 makes numerous technical, conforming and
compliance changes to the Teachers Retirement Law to enhance
effective administration of the California State Teachers'
Retirement System.
Fiscal Impact: One-time costs of $85,000 potentially offset by
future savings (Special)
CalSTRS indicates one-time IT costs to make changes to the
member database, and the "myCalSTRS" Website.
Savings will result from consolidation of numerous reports
and from the reduction in the number of mailings to members.
Proposed Law: AB 2663 does the following:
1) Consolidates the following three separately mandated reports
into a single financial report:
a) The return on investments and actual payroll subject to
the system for the prior
fiscal year,
b) The nature, duration, and cost of investment contract
services used,
c) The extent to which inflation has eroded the purchasing
power of defined
benefits and the amount of supplementary increases in
retirement allowances
required to preserve the purchasing power of DB benefits.
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2) Removes reference to a qualifying condition of a member for
survivor benefits under Coverage B that does not currently
exist.
3) Makes conforming changes relating to disability retirement
benefits and workers' compensation benefits.
4) Corrects incorrect code references relating to disability
benefit annuity provisions of law.
5) Allows CalSTRS to withhold mailing certain benefit
statements when the member indicates he or she does not want to
receive them by mail.
6) Clarifies the information that employers must give to
reemployed retired members relating to earnings limitations.
7) Allows a retiring member to report service credit for unused
sick leave from more than one employer, instead of transferring
the service credit from one employer to another and then
receiving the full service credit.
8) Makes several clarifications in regards to the earnings
limitations.
9) Clarifies that employers such as district superintendent,
chancellor of a community college district or other employing
agencies that report directly to CalSTRS are subject to penalty
payments provisions.
10) Clarifies that CalSTRS has existing authority to subpoena
witnesses to compel attendance at a board hearing in addition to
the authority to subpoena the productions of documents relating
to an investigation.
11) Makes other technical changes in regards to credit
compensation, the 403bCompare website, and fixes incorrect code
references to the Teachers' Retirement Law in the Public
Resources Code.
Staff Comments: AB 2663 is an Assembly Committee on Public
Employees, Retirement and Social Security bill that makes
necessary conforming and technical changes in order to continue
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effective administration of the California State Teachers'
Retirement System.