2016 Legislation

Assembly Bill

AB 736 (Cooley) – Expand Board’s Authority over COO and CFO

Adds Chief Operating Officer and Chief Financial Officer to those positions for which the Teachers’ Retirement Board has authority to establish desired competencies, set terms and conditions of employment and fix the compensation levels. Imposes limits on annual salary increases paid to a person who served in either position on January 1, 2016, and who does not separate from service prior to the increase. Limits the number of each of the positions under the board’s authority, except for investment officers, to one.

  • Version: Chaptered (Chapter 553, Statutes of 2016)
  • Sponsor: CalSTRS
  • Location: Signed by Governor
  • Board Position: Sponsor 
Assembly Bill

AB 1052 (Cooley) – Investment Procurement Process

Consistent with existing authority set forth in the California State Constitution, authorizes the board of the California State Teachers’ Retirement System to contract for specified investment-related services under the board’s terms and conditions and, except under specified circumstances, utilizing competitive processes, in lieu of state contracting requirements. 

  • Version: Amended 8/19/2016
  • Sponsor: CalSTRS
  • Location: Senate Floor
  • Board Position: Sponsor 
Assembly Bill

AB 1875 (Chavez) – Special Needs Trusts as Option or Annuity Beneficiaries

Allows CalSTRS Defined Benefit (DB) Program members and Cash Balance (CB) Benefit Program participants to designate a specific type of trust established for a disabled individual (often called a “special needs trust”) to be an option beneficiary or annuity beneficiary and receive a benefit for the duration of the disabled individual’s lifetime.

  • Version: Chaptered (Chapter 559, Statutes of 2016)
  • Sponsor: Author
  • Location: Signed by Governor
  • Board Position: Neutral
Assembly Bill

AB 2833 (Cooley) – Private Equity Fee Disclosure

Requires every California public investment fund to require its alternative investment vehicle fund managers and related parties to make specified disclosures regarding fees and expenses for each alternative investment vehicle. Also requires this information to be disclosed at least once annually in a report presented at a meeting open to the public. Applies to new contracts entered into, and to existing contracts pursuant to which the fund makes a new capital commitment, on or after January 1, 2017. 

  • Version: Chaptered (Chapter 361, Statutes of 2016)
  • Sponsor: State Treasurer John Chiang
  • Location: Signed by Governor
  • Board Position: Support, if amended
Assembly Bill

SB 1353 (Pan) – Clarification to 2014 Full Funding Plan

Makes a technical clarification specifying that state contribution changes that occurred after 1990 are not considered when determining future adjustments to the state contribution rate pursuant to the 2014 Full Funding Plan, except for the state contribution rate increases pursuant to that plan.

  • Version: Chaptered (Chapter 350, Statutes of 2016)
  • Sponsor: CalSTRS
  • Location: Signed by Governor
  • Board Position: Sponsor
House of Representatives Bill

HR 4822 (Nunes) – Public Employee Pension Transparency Act

Requires the state or local government employee pension plan sponsor to report to the U.S. Treasury Secretary each plan year beginning on or after January 1, 2017, specified information using the U.S. Treasury Obligation Yield Curve—so as to derive and apply a “risk free” rate of return—to calculate the information, where applicable. Failure to comply with the reporting requirements results in the forfeiture of federal tax benefits to bonds issued by the relevant state or political subdivision until noncompliance is remedied. 

  • Version: Amended 3/21/2016
  • Sponsor: Author
  • Location: House Ways and Means Committee
  • Board Position: Oppose