Current Legislation

Current Legislation
2021 Legislation

Overview
Assembly Bill

AB 539 (Cooley) – CalSTRS investment procurement

Expands the CalSTRS Collaborative Model, an investment strategy to reduce costs, control risks and increase expected returns by managing more assets internally and leveraging external partnerships. Grants the Teachers’ Retirement Board prudent flexibility to contract with investment managers and advisers under policies it adopts.

  • Version: Amended 2/10/2021
  • Sponsor: CalSTRS
  • Location: Senate L,PE&R Committee
  • Board Position: Sponsor
Assembly Bill

AB 551 (Rodriguez) – CalSTRS individual retirement accounts

Authorizes CalSTRS to offer a traditional (tax-deferred) Individual Retirement Account (IRA) in addition to a Roth IRA and accept rollovers from any eligible retirement plan to those IRAs. It also enables CalSTRS to receive contributions from IRA participants and allows spouses of those participants to contribute to a CalSTRS IRA plan.

  • Version: Amended 2/10/2021
  • Sponsor: CalSTRS
  • Location: Assembly Inactive File
  • Board Position: Sponsor
Assembly Bill

AB 890 (Cervantes) – Emerging managers report

Requires the CalSTRS and CalPERS boards, commencing March 1, 2023, to submit an annual report to the Legislature on the status of achieving appropriate objectives and initiatives, as defined by each board, regarding participation of emerging or diverse asset managers in their investment portfolios. The report must be based on contracts entered into on and after January 1, 2022, and must include specified information regarding each emerging or diverse manager. The bill sunsets on January 1, 2028.

  • Version: Amended 5/24/2021
  • Sponsor: The New America Alliance
  • Location: Senate
  • Board Position: Neutral
Assembly Bill

AB 1019 (Holden) – Turkish divestment

Prohibits state trust money from being used to make additional or new investments or renew existing investments in investment vehicles issued or owned by the government of Turkey, its instrumentalities or political subdivisions. Indemnifies present, former and future board members, officers and employees of and investment managers under contract with those state trust funds for actions related to the bill. Also, provides that its provisions would no longer apply if the government of Turkey adopts a policy to acknowledge the Armenian Genocide and embark on a path of affording justice to its victims.

  • Version: Introduced 2/18/2021
  • Sponsor: Author
  • Location: Assembly PE&R Committee
  • Board Position: Oppose
Assembly Bill

AJR 9 (Cooper) – GPO and WEP repeal

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.

  • Version: Introduced 3/1/2021
  • Sponsor: California Retired Teachers Association
  • Location: Senate L,PE&R Committee
  • Board Position: Support
Senate Bill

SB 294 (Leyva) – Elected officer service credit limit

Removes the 12-year limitation for service credit earned by a member while on a compensated leave of absence for elected service under the Teachers’ Retirement Law and the Public Employees’ Retirement law.

  • Version: Amended 6/14/2021
  • Sponsor: California Federation of Teachers, California Teachers Association
  • Location: Assembly PE&R Committee
  • Board Position: Neutral
Senate Bill

SB 457 (Portantino) – Turkish divestment option for employers

Requires CalSTRS to provide a school district an option to elect an investment portfolio that does not contain investment vehicles that are issued or owned by the government of the Republic of Turkey. Also, extends the same provision to school districts and cities participating in CalPERS.

  • Version: Introduced 2/16/2021
  • Sponsor: Author
  • Location: Assembly PE&R Committee
  • Board Position: Oppose
Senate Bill

SB 634 (L,PE&R) – Public retirement systems’ housekeeping

Makes various technical, conforming or minor changes to the Teachers’ Retirement Law to facilitate efficient administration of the State Teachers’ Retirement Plan, which includes the Defined Benefit Program, the Defined Supplement Program and the Cash Balance Benefit Program. Also makes various technical and conforming changes to the Public Employees’ Retirement Law and the County Employees Retirement Law.

  • Version: Amended 6/14/2021
  • Sponsor: CalSTRS
  • Location: Assembly PE&R Committee
  • Board Position: Support
House of Representatives Bill

S 588 (Feinstein-CA)/HR 1549 (Casten-IL) – Climate Risk Advisory Committee

Establishes a permanent Climate Risk Advisory Committee on the Financial Stability Oversight Council (FSOC), Requires specified regulatory agencies to include climate risk in their supervisory guidance. Requires FSOC to incorporate climate risk into specified decisions. Requires the Federal Insurance Office to report on modernizing and improving climate risk insurance regulation. Encourages financial regulators to join international networks on climate financial risk.

  • Version: Introduced 3/4/2021 and Introduced 3/3/2021, respectively
  • Sponsor: Authors
  • Location: Senate Banking, Housing, and Urban Affairs Committee and House Financial Services Committee, respectively
  • Board Position: Support