State Teachers' Retirement Plan.

(1) Existing law permits the Teachers' Retirement Board, which administers the State Teachers' Retirement System (STRS) and the State Teachers' Retirement Plan, to establish an amount, not to exceed $10, below which the system may dispense with the processing of benefit payments or the collection of benefit overpayments. This bill would extend this authority to other payments and overpayments provided under the plan in addition to those related to benefits. (2) Existing law permits STRS to contract with employers in the system to provide retirement counseling and provides that documents received in this connection by an official contracted office or by a benefits counselor, as specified, are deemed to have been received by the STRS headquarters. This bill would revise these provisions to clarify that employees of the system may provide these retirement counseling services and would make conforming changes. (3) Existing law grants a member of STRS who returns to employment after performing uniformed services, as defined, certain rights and benefits, including treatment as if there were no break in the member's service to his or her employers for the period of the uniformed services and having that period of uniformed service count towards vesting and eligibility in the defined benefit program. This bill would extend certain of these rights and benefits to a member who dies during uniformed services, would require that qualified military service, as defined, be counted for the purpose of vesting and eligibility for membership if the member dies during that service, and would prescribe how this service is to be calculated. The bill would permit this service to apply to the payment of certain death benefits to a beneficiary, and to survivor benefits, under specified circumstances. (4) Existing law permits the Teachers' Retirement Board to assess penalties against employers participating in the Defined Benefit Program or the Cash Balance Benefit Program if the employers fail to provide monthly reports in an acceptable form. Existing law provides that the amount of the penalties is based on the sum of the employer and employee contributions required, as specified, at a rate of interest equal to the regular interest rate or a fee of $500, whichever is greater. This bill would delete the reference to the $500 fee and base the penalties solely on the contributions and rate of interest, as described above. The bill would also authorize the assessment of penalties, as specified, for late or improper contribution adjustments with regard to the Cash Balance Benefit Program, and would deem these amounts as interest earned. (5) Existing law requires, upon a termination of a member's employment by any cause other than death, disability, or retirement, that certain amounts be paid to the member, including his or her accumulated retirement contributions and annuity deposits. This bill would require that these payments be made upon termination of employment generally and the member's election to be paid. The bill would authorize a reduction in the payment of accumulated retirement benefits by the amount of retirement or disability benefits paid. The bill would also provide that specified beneficiary designations would be invalidated upon a refund of accumulated retirement contributions and would prescribe how the refund request would be made or determined by the board. (6) Existing law permits a member of STRS to apply for a disability allowance if certain requirements are met, including that the member has neither attained normal retirement age, nor possesses sufficient unused sick leave days to receive creditable compensation on account of sick leave to reach normal retirement age. This bill would make technical changes in these provisions. (7) Existing law requires a member of STRS to provide medical documentation to substantiate the impairment qualifying the member for a disability allowance or retirement. Existing law permits the system to order a medical examination of a member to determine whether the member is incapacitated for performance of service and prescribes procedures for this purpose. This bill would also authorize the system to order also a review of medical documentation in this regard. The bill would also make technical changes these provisions. (8) Existing law prescribes the conditions under which a STRS service retirement allowance becomes effective and requires, in this regard, that the effective date be no earlier than the first day of the month in which the application is received at the system's headquarters office. This bill would make various technical changes in the requirements that a member must meet for a service requirement to become effective in specified situations, including instances when service credit is purchased and when an application for disability benefits is made. (9) Existing law permits a member retiring prior to 60 years of age, who has attained 55 years of age, to elect to receive ½ of the service retirement allowance for normal retirement age for a limited time and then revert to the full retirement allowance for normal retirement age. Existing law excepts from this authorization members retiring for service pending a disability. This bill would also except from this authorization members retiring for service following reinstatement, members who perform creditable service for 2 or more years after reinstatement, and members who retire after a prior disability retirement is terminated, among others. (10) Existing law permits a retired member of STRS to perform specified activities as an employee of an employer in the system, as an employee of a 3rd party, or as an independent contractor within the California public school system, but prohibits the member from making contributions to the retirement fund or accruing service credit based on compensation earned from that service. Existing law conditions this authorization on a variety of factors including limitations on the rate of pay of the member and the total amount of compensation. This bill would also permit a retired member, pursuant to the limitations described above, to perform the work of county and district superintendents who are responsible for the supervision of persons or administration of certain duties and to perform trustee work for the Cash Balance Benefit Program. (11) Existing law permits a member of STRS, prior to the effective date of his or her retirement, to elect an option that provides an actuarially modified retirement allowance payable throughout the life of the member and the member's option beneficiary or beneficiaries. Existing law also prescribes how a member may change or cancel these options. This bill would revise when these designations, changes, or cancellations must be submitted. (12) Existing law provides that a child's portion of a STRS retirement allowance begins to accrue on the effective date of that allowance and ceases on the earlier of either the termination of the child's eligibility or the termination of the allowance. This bill would prescribe when a child's portion of a disability retirement allowance terminates. (13) Existing law establishes the Cash Balance Benefit Program, administered by the State Teachers' Retirement Board, as a separate benefit program within the State Teachers' Retirement Plan. This bill would permit a member retired for service under the Cash Balance Benefit Program to perform specified activities as an employee of an employer in the system, as an employee of a 3rd party, or as an independent contractor within the California public school system, but would prohibit the member from making contributions to the retirement fund. The bill would condition this authorization on a variety of factors including limitations on the rate of pay of the member and the total amount of compensation, as well as on the employer maintaining accurate records in this regard, among other things. The bill would also repeal provisions that require that a participant in the Cash Balance Benefit Program who becomes reemployed under certain conditions have his or her annuity terminated.