State Teachers' Retirement System: contributions due to system: form.

Existing law, 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. Existing law establishes the Cash Balance Benefit Program, administered by the Teachers' Retirement Board, as a separate benefit program within the State Teachers' Retirement Plan in order to provide a retirement plan for persons employed to perform creditable service for less than 50% of full-time service. Existing law prescribes requirements for the payment of required employer and member contributions to the system. This bill, upon authorization by the Teachers' Retirement Board, would require contributions due to the system by an employer under the Defined Benefit Program and the Cash Balance Benefit Program to be paid by an electronic funds transfer method through an automated clearinghouse, as defined, as prescribed by the board. The bill would permit an employer that is unable, for good cause, to comply with this requirement to apply to the board for a waiver that would allow the employer to pay in an alternate manner.