Increases state, employer and member contributions to the Teachers’ Retirement Fund in order to eliminate the unfunded actuarial obligation of the Defined Benefit Program by June 30, 2046.

Makes various technical corrections and conforming changes that align the Teachers’ Retirement Law with the provisions of the Public Employees’ Pension Reform Act of 2013 (PEPRA), as enacted in AB 340 (Furutani).

Makes various changes to California public employee pension systems through the enactment of the California Public Employees’ Pension Reform Act of 2013.

Increases the upper limit on the purchasing power benefit from 80% to 85% and gives the Teachers’ Retirement Board authority to adjust the benefit between 80 and 85% based on long-term actuarial projections. Reduces state General Fund payments into the Supplemental Benefit Maintenance Account by $66 million in 2008-09, $70 million in 2009-10, $71 million in 2010-11 and $72 million in 2011-12 and thereafter.

Allows CalSTRS to calculate benefits for certain part-time community college faculty under the benefit structure that was in place on June 30, 1996, and compare that benefit to the benefit that is currently payable or would be payable under the existing benefit structure and provide the member with the higher of the two benefits.

Increases purchasing power protection from 75% to 80%.

Authorizes CalSTRS to pay Medicare Part A premiums and certain Medicare Part B fees for specified members of the Defined Benefit Program who retire prior to July 1, 2001. Specifies eligibility criteria for the Medicare Premium Payment Program and permits the Teachers’ Retirement Board to extend eligibility for the program, under certain conditions, to members who retire after July 1, 2001.

Authorizes CalSTRS to redirect 25% of the member’s Defined Benefit Program contribution to the member’s Defined Benefit Supplement Program account from January 1, 2001, through December 31, 2010.

Increases current allowance by 1% to 6%, based on initial year of payment.

Makes all compensation for creditable service creditable to the Teachers’ Retirement Plan and credits member and employer contributions for service in excess of 1.000 year in each school year to the member’s Defined Benefit Supplement Program account.

Extends eligibility for the minimum guaranteed allowance enacted by Chapter 632, Statutes of 1999 (SB 713-Burton), that is paid to Defined Benefit Program members, their option beneficiaries and surviving spouses, in varying amounts according to the member’s years of credited service at retirement.

Establishes the minimum annual allowance payable to specified retired members of the Defined Benefit Program, their option beneficiaries and surviving spouses in varied amounts according to the member’s years of credited service.

Extends eligibility to receive service credit at retirement for unused sick leave to members of the Defined Benefit Program, who became members on and after July 1, 1980, and who retire on or after January 1, 1998.