SB 984, as introduced, Walters. State teachers’ retirement law.
The Teachers’ Retirement Law (TRL) creates the Defined Benefit Program of the State Teachers’ Retirement Plan for the provision of benefits to members of the plan, which is administered by the Teachers’ Retirement Board. The Defined Benefit Program is funded by employer and employee contributions as well as investment returns and state appropriations. Employee and employer contributions are deposited in the Teachers’ Retirement Fund, which is continuously appropriated.
This bill would make a nonsubstantive change to TRL provisions prescribing employer contributions and their deposit.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 22950 of the Education Code is amended
2to read:
(a) Employers shall contribute monthly to the system
48 percent of the creditable compensation upon which members’
5contributions under this part are based.
6(b) From the contributions required under subdivision (a), there
7shall be deposited in the Teachers’ Retirement Fund an amount,
8determined by the board, that is not less than the amount,
P2 1determined in an actuarial valuation of the Defined Benefit
2Program pursuant to Section 22311.5, necessary to finance the
3liabilities associated with the benefits of the Defined Benefit
4Program over the funding period adopted by the board, afterbegin delete taking begin insert
accounting forend insert
the contributions made pursuant to
5into accountend delete
6Sections 22901, 22951, and 22955.
7(c) The amount of contributions required under subdivision (a)
8that is not deposited in the Teachers’ Retirement Fund pursuant
9to subdivision (b) shall be deposited directly into the Teachers’
10Health Benefits Fund, as established in Section 25930, and shall
11not be deposited into or transferred from the Teachers’ Retirement
12Fund.
13(d) (1) Notwithstanding subdivisions (b) and (c), there may be
14deposited into the Teachers’ Retirement Program Development
15Fund, as established in Section 22307.5, from the contributions
16required under subdivision (a), an amount determined by the board,
17not to exceed the limit specified in paragraph (2).
18(2) The balance of deposits into the Teachers’ Retirement
19Program Development Fund,
minus the subsequent transfer of
20funds, with interest, into the Teachers’ Retirement Fund pursuant
21to subdivision (e) of Section 22307.5, shall not exceed 0.01 percent
22of the total of the creditable compensation of the fiscal year ending
23in the immediately preceding calendar year upon which member’s
24contributions to the Defined Benefit Program are based.
25(3) The deposits described in this subdivision shall not be
26deposited into, or transferred from, the Teachers’ Retirement Fund.
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