CalSTRS Asks for Your Support Before July 1
CalSTRS supports Assembly Bill 265 and asks you to support it too
The state Senate will vote on AB 265 by July 1 so please call or email your state senator today. Tell your Senator you want to keep the Supplemental Benefit Maintenance Account stable and secure by passage of AB 265.
What is AB 265?
AB 265 resolves objections to Senate Bill 20x enacted in May. This law defers a $500 million state contribution to the Supplemental Benefit Maintenance Account without certain return of the funds. This benefit account provides quarterly, supplemental payments to retired educators and their survivors when inflation erodes their allowances below 80 percent of its original consumer purchasing power.
AB 265 would eliminate the total $559 million payment due this year and provide full and certain return of the deferral. The Teachers’ Retirement Board is sensitive to the state’s budget difficulties and is willing to do its part to mitigate the current crisis. AB 265 achieves the board’s desire to help the state while fulfilling the board’s fiduciary responsibilities to the CalSTRS members.
While current supplemental benefit recipients and those in the near future will not be affected by the missed contribution, the Teachers’ Retirement Board opposed the original deferral legislation due to the long-term threat it presents to this supplemental benefit program. Therefore, in the absence of a legislative solution, such as AB 265, the Teachers’ Retirement Board has authorized staff to pursue litigation to ensure the contribution is made.