20250AB__251997AMD INTRODUCED 2026-02-20 AMENDED_ASSEMBLY 2026-03-09 AMENDED_ASSEMBLY 2026-04-20 2025 AB AMD Introduced by Assembly Member McKinnor LEAD_AUTHOR ASSEMBLY McKinnor

An act to amend

Section 22156.07 of the Education Code, relating to teachers’ retirement, and making an appropriation therefor. teachers’ retirement, and making an appropriation therefor State Teachers’ Retirement System: positions subject to membership. 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.

That law requires the Teachers’ Retirement Board to administer STRS and requires employers and employees to make contributions to STRS based on the member’s creditable compensation.

Existing law, among other things, defines “position subject to membership” to mean prescribed positions at various educational institutions, including, among other positions, a position at a county office of education or school district, not including a charter school, where the position requires the holding of a valid credential, license, or certificate authorized by the Commission on Teacher Credentialing or the State Department of Health Care Services, as prescribed. This bill would expand the above-described definition to also include permitholders.

The bill would additionally include as a “position subject to membership” a comparable position at a charter school eligible to receive state apportionment that is performing, directing, coordinating, supervising, or administering one or more prescribed functions, as specified. Existing law requires the board to determine the date that specified provisions related to this definition become operative based on when STRS has the capacity to implement those provisions and to post that date on the internet website of STRS no later than July 1, 2027.

This bill would delete that requirement and would, instead, make this definition of “position subject to membership” operative on July 1, 2027. Existing law creates the Teachers’ Retirement Fund, which is continuously appropriated for specified purposes, into which certain moneys are deposited, including employee contributions. By expanding the category of positions subject to membership under STRS and affecting the contributions to the retirement fund, the bill would make an appropriation.

Existing law also creates the Cash Balance Benefit Program to provide a retirement plan for the benefit of participating employees who provide creditable service for less than 50% of full time. Existing law requires that the election to become a participant of the Cash Benefit Balance Program be made in writing on a properly executed form prescribed by STRS and filed with the employer within calendar days of the latest of specified dates, including the first day of employment.

Existing law authorizes a member who elects to participate in the Cash Balance Benefit Program to subsequently elect that creditable service performed for the employer be subject to coverage by the Defined Benefit Program in lieu of the Cash Balance Benefit Program on a properly executed form, as prescribed.

Existing law requires these election forms to be received at the STRS headquarters office within calendar days after the date of the employee’s signature and prior to the submission of contributions.</xhtml:p><xhtml:p>This bill would extend the above-described periods for filing the election forms to days, as specified, and would also extend the timeframe for receipt of the forms at the STRS headquarters office to within days of signature.</xhtml:p>"?> MAJORITY YES YES NO NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION

Section 22156.07 of the Education Code is amended to read: 22156.07. (

a) Except as otherwise provided under this part, “position subject to membership” means the following:

(1) A position at a county office of education or school district, not including a charter school, that the governing body of the employer has designated in a resolution adopted at a public meeting as a position subject to membership for which the employer requires the holding of a valid credential, license, permit, or certificate authorized by the Commission on Teacher Credentialing or the State Department of Health Care Services. The resolution must be in effect on the date of hire in the position or be effective retroactively to include the position as of the date of hire, whichever is later, but no earlier than the operative date of this

section as determined by subdivision (c).

(2) A position at a county office of education or school district, including a charter school, that is included in a certificated bargaining unit represented by an exclusive representative, whether by agreement between the exclusive representative and the employer as reflected in a collective bargaining agreement or by written decision of the Public Employment Relations Board. The collective bargaining agreement must be in effect on the date of hire in the position or be effective retroactively to include the position as of the date of hire, whichever is later, but no earlier than the operative date of this

section as determined by subdivision (c).

(3) A position at a charter school eligible to receive state apportionment where the position requires the holding of a Commission on Teacher Credentialing certificate, permit, or other document pursuant to subdivision (

l) of

Section 47605. (4) (

A) A position at a charter school eligible to receive state apportionment that is performing, directing, coordinating, supervising, or administering one or more functions listed in

Section and is either of the following: (

i) A position for which the charter school requires the holding of a valid credential, license, permit, or certificate authorized by the Commission on Teacher Credentialing or the State Department of Health Care Services for the position. (ii) A position that, if it were at a county office of education or school district, not including a charter school, would require the holding of a valid credential, license, permit, or certificate authorized by the Commission on Teacher Credentialing or the State Department of Health Care Services. (

B) In a resolution adopted at a public meeting, the governing body of the charter school eligible to receive state apportionment shall designate each position under subparagraph (

A) that is a position subject to membership and shall identify either one of the following: (

i) The function or functions listed in

Section that the position is performing. (ii) The function or functions listed in

Section that the position is directing, coordinating, supervising, or administering. (

C) The resolution adopted by the governing body of the charter school must be in effect on the date of hire in the position or be effective retroactively to include the position as of the date of hire, whichever is later, but no earlier than the operative date of this

section as determined by subdivision (c). (4)</xhtml:p>"?>

(5) A position at a community college district, that is any of the following: (

A) A faculty member, as defined in

Section 87003, subject to the appropriate minimum standards adopted by the Board of Governors of the California Community Colleges pursuant to

Section 87356. (

B) An academic position, as defined in subdivision (

b) of

Section 87001, subject to the appropriate minimum standards adopted by the Board of Governors of the California Community Colleges pursuant to

Section 87356. (

C) An educational administrator, as defined in subdivision (

b) of

Section 87002, subject to the appropriate minimum standards adopted by the Board of Governors of the California Community Colleges pursuant to

Section 87356. (

D) A position pursuant to a contract with the United States Department of Defense to provide vocational training as an employee of a community college employer. (5)</xhtml:p>"?>

(6) A position as a superintendent of a California public school. (6)</xhtml:p>"?>

(7) A position that would otherwise be subject to membership in a different public retirement system when held by a member who has elected coverage by the Defined Benefit Program pursuant to

Chapter 10 (commencing with

Section 22500). (b) “Position subject to membership” does not mean and shall not include:

(1) A position that would otherwise be subject to coverage by the Defined Benefit Program when held by a member of the Public Employees’ Retirement System who has elected coverage in the Public Employees’ Retirement System pursuant to

Chapter 10 (commencing with

Section 22500).

(2) A position that is not employed by an employer or employing agency as defined in

Section 22131.

(3) A position at a county office of education or school district, including a charter school, that is included in a noncertificated bargaining unit represented by an exclusive representative, whether by agreement between the exclusive representative and the employer as reflected in a collective bargaining agreement in effect on the date of hire in the position or by written decision of the Public Employment Relations Board. (c)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>The board shall determine a date based on when the system has the capacity to implement the changes made by the act that added this subdivision.

The date determined by the board shall be posted on the internet website of the system no later than July 1, 2027.</xhtml:p><xhtml:p>(2)</xhtml:p>"?> (

c) This

section shall become operative on July 1, 2027. <caml:Num>SECTION 1.</caml:Num><caml:ActionLine action="IS_AMENDED" xlink:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'1.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'1.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'14.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'5.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'26401.'%5D)" xlink:label="fractionType: LAW_SECTION" xlink:type="locator">Section of the <caml:DocName>Education Code</caml:DocName> is amended to read:</caml:ActionLine><caml:Fragment><caml:LawSection id="id_530FF1B7-1894-4260-867C-38A4A6385F21"><caml:Num>26401.</caml:Num><caml:LawSectionVersion id="id_05CE6A97-2EBA-4600-A7AB-B5FB1712FE12"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>A member of the Defined Benefit Program who is employed by an employer that provides the Cash Balance Benefit Program may elect to become a participant of the Cash Balance Benefit Program for creditable service performed for that employer if all employment to perform creditable service for that employer meets either of the following conditions:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>The member is employed by an employer, excluding a community college district, to perform creditable service on a part-time basis for less than percent of the time the employer requires for the full-time position or on a substitute, part-time hourly, or part-time daily basis.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>The member is employed by a community college district to perform creditable service on a temporary basis pursuant to

Section 87474, 87478, 87480, 87481, 87482, or 87482.5.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>The election shall be made in writing on a properly executed form prescribed by the system and filed with the employer within calendar days after the first day of employment, or the date of the employer’s governing board’s action to provide the Cash Balance Benefit Program, or the effective date of the employer’s governing board’s action to provide the Cash Balance Benefit Program, whichever occurs later.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>The election form shall be received at the system’s headquarters office within calendar days after the date of the employee’s signature and prior to the submission of contributions.

The employer shall retain a copy of the signed election form.</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>The election shall become effective as of the first day of employment or the effective date of the employer’s governing board’s action to provide the Cash Balance Benefit Program, whichever occurs later.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>If an employee was excluded from participation in the Cash Balance Benefit Program pursuant to

Section 26401.5, as that

section read on December 31, 2000, for the same service, the employee may elect to become a participant for creditable service subject to coverage under the Cash Balance Benefit Program for that employer, provided all of the following conditions are met:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>The employment is pursuant to

Section 87474, 87478, 87480, 87481, 87482, or 87482.5.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>The employer offers the Cash Balance Benefit Program.</xhtml:p><xhtml:p>(C)<xhtml:span class="EnSpace"/>The creditable service is not also subject to mandatory membership in the Defined Benefit Program.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>Employers shall, on or before May 1, 2007, make available to employees described in this subdivision, information and forms provided by the system for making an election regarding participation.

The employee shall submit the form to the employer within a 90-day election period designated by the employer. The employer shall retain a copy of the employee’s signed election form and mail the original signed election form to the system’s headquarters office. The election shall become effective on the first day of the pay period following the pay period in which the election is made.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>A member who elects to participate in the Cash Balance Benefit Program pursuant to this

section may subsequently elect that creditable service performed for the employer be subject to coverage by the Defined Benefit Program in lieu of the Cash Balance Benefit Program.</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>The election shall be made in writing on a properly executed form prescribed by the system and filed with the employer at any time while employed to perform creditable service.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>The election form shall be received at the system’s headquarters office within calendar days after the date of the employee’s signature and prior to the submission of contributions.

The employer shall retain a copy of the signed election form.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>The election shall become effective no earlier than the first day of the pay period in which the election is made and is irrevocable.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection></caml:Fragment></caml:BillSection>"?>