State teachers' retirement: Defined Benefit Program: funding.
The State Teacher's Retirement Law (STRL) creates the Defined Benefit Program of the State Teachers' Retirement Plan for the provision of benefits to members of the plan, which is administered by the Teachers' Retirement Board (board) . The Defined Benefit Program is funded by employer and employee contributions as well as investment returns and state appropriations. Employee and employer contributions are deposited in the Teachers' Retirement Fund, which is continuously appropriated. The Defined Benefit Program provides for an improvement factor, as defined, to be applied to monthly allowances or benefits of retired members of the system, as specified. STRL specifies that the Legislature reserves the right to adjust the amount of the improvement factor as economic conditions dictate, provided that an adjustment is prohibited from reducing the retirement allowance, annuity, or benefit below that which would have been payable to the recipient. Existing case law holds that the right to a pension is a contractually protected vested right and that the specific provisions of a pension system that a member earns through employment may be modified to the detriment of the member only if a comparable new advantage is provided.
us/states/ca
California Legislature
20132014
AB 1469
California AB 1469 (20132014)
bill
appropriation
State teachers' retirement: Defined Benefit Program: funding.
California AB 1469 (20132014) — State teachers' retirement: Defined Benefit Program: funding.
The State Teacher's Retirement Law (STRL) creates the Defined Benefit Program of the State Teachers' Retirement Plan for the provision of benefits to members of the plan, which is administered by the Teachers' Retirement Board (board) . The Defined Benefit Program is funded by employer and employee contributions as well as investment returns and state appropriations. Employee and employer contributions are deposited in the Teachers' Retirement Fund, which is continuously appropriated. The Defined Benefit Program provides for an improvement factor, as defined, to be applied to monthly allowances or benefits of retired members of the system, as specified. STRL specifies that the Legislature reserves the right to adjust the amount of the improvement factor as economic conditions dictate, provided that an adjustment is prohibited from reducing the retirement allowance, annuity, or benefit below that which would have been payable to the recipient. Existing case law holds that the right to a pension is a contractually protected vested right and that the specific provisions of a pension system that a member earns through employment may be modified to the detriment of the member only if a comparable new advantage is provided.
Version chain
The bill's text revisions, in order — the diff chain from filing to enrollment.
2014-06-12 From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F.R. amendment-introduction, amendment-passage, reading-2, reading-1, referral-committee
2014-06-15 From committee: Do pass. (Ayes 14. Noes 0.) (June 15). committee-passage-favorable, committee-passage
2014-06-15 Read second time. Ordered to third reading. reading-2, reading-1
2014-06-15 Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0. Page 3904.). reading-3, reading-1, passage
2014-06-15 In Assembly. Concurrence in Senate amendments pending.