CA SB 885
Title: Public employees’ retirement.
Author:
Summary
SB 885, Committee on Labor, Public Employment and Retirement. Public employees’ retirement. (1) The Teachers’ Retirement Law establishes the State Teachers’ Retirement System (STRS) and creates the Defined Benefit Program of the State Teachers’ Retirement Plan, which provides a defined benefit to members of the program, based on final compensation, credited service, and age at retirement, subject to certain variations. STRS is administrated by the Teachers’ Retirement Board. The Defined Benefit Program is funded by employer and employee contributions, as well as investment returns and state appropriations, which are deposited or credited to the Teachers’ Retirement Fund, which is continuously appropriated for the purposes of the system.Existing law, the California Fair Employment and Housing Act (FEHA), prohibits an employer from engaging in various defined forms of discriminatory employment practices. Existing law makes it an unlawful employment practice under FEHA for an employer with 5 or more employees to, among other things, include on any application for employment any question that seeks the disclosure of an applicant’s conviction history, to inquire into or consider the conviction history of an applicant until that applicant has received a conditional offer, and, when conducting a conviction history background check, to consider, distribute, or disseminate information related to specified prior arrests, diversions, and convictions. Existing law specifies situations in which an employer is authorized to request this information, including when hiring for a position for which a state or local agency is otherwise required by law to conduct a conviction history background check.This bill would authorize STRS to collect specified criminal history information for employees of STRS and applicants for employment with STRS while a tentative offer is pending, if the position includes certain duties.(2) Existing law, the Public Employees’ Retirement Law (PERL), creates the Public Employees’ Retirement System (PERS) for the purpose of providing pension benefits to state employees and employees of contracting agencies and prescribes the rights and duties of members of the system and their beneficiaries. Under PERL, benefits are funded by investment income and employer and employee contributions, which are deposited into the Public Employees’ Retirement Fund, a continuously appropriated trust fund administered by the system’s board of administration. Existing law vests management and control of PERS in its board of administration. PERS provides a defined benefit to members of the program, based on final compensation, credited service, and age at retirement, subject to certain variations.Existing law permits the board to charge interest on payments due and unpaid by a contracting agency at the greater of the annual return on the system’s investments for the year prior to the year in which payments are not timely made or a simple annual rate of 10%.This bill would remove the board’s option to charge interest at the annual return on the system’s investments for the year prior in which payments are not timely made, and instead would require the board to charge interest at a simple annual rate of 10%.(3) Existing law authorizes a member of PERS, who is credited with less than a certain number of years of service and who enters employment as a member of another public retirement system supported by state funds, within 6 months of leaving state service, to elect to leave their accumulated contributions on deposit in the retirement fund. Existing law specifies that a member’s failure to make an election to withdraw accumulated contributions is deemed an election to leave the member’s accumulated contributions on deposit in the retirement fund. Existing law provides that a member may revoke their election to allow accumulated contributions to remain in the retirement system, except under specified circumstances. Existing law requires a membe
Status
Chaptered by Secretary of State. Chapter 159, Statutes of 2023.
Bill Documents
CA SB 885 - 09/01/23 - Chaptered
09/01/23 - CA SB 885 (09/01/23 - Chaptered)
CA SB 885 - 08/18/23 - Enrolled
08/18/23 - CA SB 885 (08/18/23 - Enrolled)
CA SB 885 - 06/06/23 - Amended Assembly
06/06/23 - CA SB 885 (06/06/23 - Amended Assembly)
CA SB 885 - 04/17/23 - Amended Senate
04/17/23 - CA SB 885 (04/17/23 - Amended Senate)
CA SB 885 - 03/14/23 - Introduced
03/14/23 - CA SB 885 (03/14/23 - Introduced)