Prohibits the CalSTRS and CalPERS boards from making additional or new investments or renewing existing investments in a fossil fuel company, as defined, and requires divestment from such investments by July 1, 2031, unless and only until January 1, 2035, an unforeseeable event creates conditions that materially impact normal market mechanisms for pricing assets. Commencing February 1, 2025, also requires an annual report to be submitted to the Legislature and Governor with specified information. Also indemnifies present, former and future board members, officers and employees of an investment managers under contract with those retirement systems for actions related to the bill.

Requires a covered entity, as defined, to biennially report their climate-related financial risks in accordance with the Task Force on Climate-Related Financial Disclosures’ recommendations commencing on or before January 1, 2026. Also requires a climate reporting organization, as defined, to review and analyze a subset of the reports, identify inadequate reports, convene representatives to offer input on disclosure and monitor certain federal regulatory actions. In addition, requires covered entities to pay an annual fee to cover the California Air Resources Board’s (CARB) costs to administer and implement this bill and requires CARB to seek administrative penalties of up to $50,000 per reporting year from covered entities that are found to violate the requirements of the bill.

Effective upon a date no later than January 1, 2026, determined by the Teachers’ Retirement Board, reduces the timeframe members may backdate their service retirement or service retirement during evaluation of a disability application from as early as January 1, 2012, or January 1, 2014, respectively, to up to 270 calendar days prior to when CalSTRS receives their application.

Increases the CalSTRS annual postretirement earnings limit from one-half to 70% of the median final compensation of all members who retired for service during the fiscal year ending in the previous calendar year. Also modifies the process for obtaining an already-available exemption from the CalSTRS 180-calendar day separation-from-service requirement. Makes these provisions effective from July 1, 2024, through June 30, 2026, and requires CalSTRS to submit a report to the appropriate policy committees of the Legislature on postretirement work.

Makes a conforming change to the Teachers’ Retirement Law to facilitate efficient administration of the State Teachers’ Retirement Plan, which includes the Defined Benefit Program, the Defined Benefit Supplement Program and the Cash Balance Benefit Program. Also makes various technical and conforming changes to the Public Employees’ Retirement Law and the law related to the Judges’ Retirement System II.

Requests the U.S. President and Congress to enact legislation that would repeal the Government Pension Offset and the Windfall Elimination Provision from the Social Security Act.

Eliminates the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP) from the Social Security Act.