Prohibits the CalSTRS and CalPERS boards from making additional or new investments or renewing existing investments in any investment vehicle issued, owned, controlled or managed by the government of Turkey, immediately upon passage of a federal law imposing sanctions on Turkey for failure to acknowledge the Armenian Genocide, and requires divestment from such investments within six months of the passage of such a federal law, subject to the fiduciary duty of the boards. Requires the boards, within one year of the passage of such a federal law, to report to the Legislature any investments in a Turkish investment vehicle and other specified information. Also indemnifies present, former and future board members, officers and employees of and investment managers under contract with those retirement systems for actions related to the bill. Also provides for repeal of its provisions upon determination that Turkey has officially acknowledged its responsibility for the Armenian Genocide.
Upon authorization by the Teachers’ Retirement Board, requires all employers to submit their contribution payments by an electronic funds transfer method. Also allows an employer that is unable to comply with this requirement to apply to the board for a waiver to pay in an alternative manner.
Version: Chaptered (Chapter 125, Statutes of 2018)
Requires public retirement systems to make new additional or renewed investments in alternative investment vehicles only where the investment manager has adopted and committed to comply with a race and gender pay equity policy, as specified, subject to the fiduciary duty of the retirement board. Also requires the investment manager to submit an annual report to the public retirement system and requires the system to disclose the reported information at a public meeting and to the State Auditor.
Requests the United States Congress and the President to enact legislation which would repeal the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP) from the Social Security Act.
Version: Chaptered (Resolution Chapter 197, Statutes of 2018)
Makes a request by the Legislature to the University of California to establish the Pension Divestment Review Program to assess, at the request of specified legislative parties, any legislative proposal for the divestment or restriction of pension fund investments and prepare a written analysis containing relevant data, as prescribed, regarding the effects of the proposal on public employee pension funds and public policy.
To the extent the CalSTRS and CalPERS boards identify “climate-related financial risk,” as defined, as a material risk to the fund, requires that risk to be analyzed. By January 1, 2020, and every three years thereafter, the bill requires the boards to publicly report on the analysis of the material climate-related financial risks of their public market portfolios. Also provides a sunset date of January 31, 2035.
Version: Amended 3/14/2018
Sponsor: Environment California, Fossil Free California
Prohibits public retirement systems from providing a cost-of-living adjustment to benefits when the unfunded actuarial liability of the system is greater than 20 percent based upon the system’s Comprehensive Annual Financial Report.
Makes various technical, conforming or minor changes to the Teachers’ Retirement Law to facilitate efficient administration of the State Teachers’ Retirement Plan (Plan), which includes the Defined Benefit (DB) Program, the Defined Benefit Supplement (DBS) Program and the Cash Balance (CB) Benefit Program.
Requires a state or local government applicable retirement plan sponsor to report specified plan information to the U.S. Treasury Secretary each plan year beginning on or after January 1, 2019, including the value of plan liabilities using the U.S. Treasury spot rate yield curve—often described as a “risk free” rate of return. 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.
Electronic privacy is crucial for the ongoing success of the Internet as a convenient means to provide customer service. Your personal information will be used only to conduct CalSTRS-related business.
The California State Teachers’ Retirement System website has been developed in compliance with California Government Code §11135, which requires that all electronic and information technology developed or purchased by the State of California is accessible to people with disabilities. There are various types of physical disabilities that impact user interaction on the web. Vision loss, hearing loss, limited manual dexterity, and cognitive disabilities are examples, with each having different means by which to access electronic information effectively.