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AB 1667 (Cooper) – Benefit overpayments

Among other provisions, requires that when a benefit is overpaid, the party responsible for the error that caused the overpayment must pay CalSTRS the full amount of the resulting overpayment, except in instances of CalSTRS error, in which case the overpayment must be recovered with interest on an annual basis from the General Fund and employers, as specified.

Also requires CalSTRS to provide advisory letters on the proper reporting of compensation to specified parties and states that if compensation reported consistent with such a letter is later deemed to be reported in error, any resulting overpayment is deemed an error of the system and must be recovered as specified.

Prescribes various processes for employer audit notifications and appeals and requires final audit reports to be published on the CalSTRS website.

Mandates that CalSTRS annually provide resources to interpret and clarify the applicability of creditable compensation and creditable service laws, specifies when new interpretations may be applied and provides that if compensation reported consistent with such resources is later deemed to be reported in error, any resulting overpayment is deemed an error of the system and must be recovered as specified.

  • Version: Amended 8/25/2022
  • Sponsor: California Teachers Association, California Retired Teachers Association, California County Superintendents Educational Services Association
  • Location: To Governor
  • Board Position: Support

CalSTRS analysis:

As amended 8/25/2022