Governor Acts on Legislation Affecting CalSTRS
It is the middle of the bill signing season and Governor Arnold Schwarzenegger has until September 30 to take action on legislation approved by the Legislature during the 2003-04 Regular Session. While there are a number of bills affecting the California State Teachers’ Retirement System that remain on the Governor’s desk, below are the bills that he has acted upon thus far.
Chapter 442, Statutes of 2004 (AB 1586-PER&SS) beginning January 1, 2005, allows CalSTRS to recalculate benefits paid to part-time and adult education community college employees who were members of the Defined Benefit Program prior to 7/1/96 to correct inadvertent reductions in benefits paid as a result of legislation enacted in 1996 and 1998.
Chapter 474, Statutes of 2004 (AB 3076-Mullin) beginning July 1, 2005, bases the threshold for mandatory membership in the Defined Benefit Program for community college instructors on the employee’s basis of employment for the school year, rather than on the amount of service performed in one pay period.
Chapter 506, Statutes of 2004 (AB 3094-PER&SS) permits state and county retirement systems to recover from financial institutions funds that were directly deposited to members’ and benefit recipients’ accounts following their death.
SB 1137 (Burton) would have required the retired member seat on the Teachers’ Retirement Board be elected by retired members of the Defined Benefit Program and those receiving a disability allowance, and participants of the Cash Balance Benefit Program receiving annuity payments. Click here for the Governor’s veto message