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 annually report their climate-related financial risks in accordance with the Task Force on Climate-Related Financial Disclosures’ recommendations commencing on or before December 31, 2024. Also requires the Climate-Related Risk Disclosure Advisory Group to review and analyze those reports, identify inadequate reports, propose policy changes to implement best practices relating to disclosure, convene representatives to offer input on disclosure and monitor certain federal regulatory actions. In addition, it establishes a civil penalty of up to $500,000 per violation for 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.

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.