Public employees’ retirement.

The California Senate Committee on Labor, Public Employment and Retirement proposes substantial modifications to the state's public retirement systems through legislation that grants expanded authority to retirement boards and revises key operational procedures.

The bill empowers the Teachers' Retirement Board with final authority to determine employer classifications and membership eligibility in the State Teachers' Retirement System (STRS). For reduced workload agreements, the legislation replaces workload percentage requirements with earnings-based criteria, requiring participants to maintain at least half of their annualized pay rate to remain eligible.

The measure adjusts fund transfer schedules for retirement accounts, allowing transfers to occur on the next business day when scheduled dates fall on weekends or holidays. It establishes specific procedures for recovering benefit overpayments, with 85% funded through General Fund appropriations and 15% recovered proportionally from employers. The legislation also designates the Superior Court of Sacramento County or counties with proper venue as appropriate jurisdictions for STRS legal proceedings.

For county retirement systems, the bill modifies final compensation calculations for members subject to the California Public Employees' Pension Reform Act, basing absence computations on pensionable compensation at the start of the absence. The legislation implements new employer reporting requirements for retired members' employment, with $200 monthly penalties for non-compliance. Employers must notify employees within 10 business days or 80 hours of approaching post-retirement employment limits.