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CalSTRS board adopts July 1, 2027 effective date for AB 1997, initiates rulemaking on compensation and administrative remedies
Summary
The Teachers Retirement Board voted to set July 1, 2027 as the effective date for board‑sponsored AB 1997, and approved initiating formal rulemaking and public hearings in September to implement regulations on creditable compensation simplification and administrative remedies; votes were recorded and motions passed.
The California State Teachers’ Retirement System board approved three related actions: adoption of an effective date for AB 1997, initiation of formal rulemaking for regulations implementing creditable compensation simplification, and initiation of formal rulemaking for updates to administrative remedy regulations.
On item 11, the board approved setting the effective date for AB 1997 at July 1, 2027. Joycelyn Martinez Wade (staff) explained that date corresponds with the pension solution timetable and permits implementation on a school‑year basis. The motion was moved and seconded and passed with the following recorded votes: Yes — Gallegos, Keeley, Tang, Yamamoto, Hendricks, Gunning, Ruffino, Sanders, Juarez and Chair Bradford (10); Abstain — Whitaker (1). The motion passed and staff will proceed with implementation planning tied to the new system timeline.
On item 12, the board approved initiating the formal rulemaking process for regulations to implement the creditable compensation simplification provisions and scheduled a public hearing at the board’s September meeting. Staff said the proposed regulatory language (Attachment 1) would open a 45‑day written comment period followed by the public hearing; if staff receive substantive comments requiring changes, amendments would be brought back to the board in November for adoption and may prompt an additional comment period. The motion to initiate rulemaking passed on a roll call with the majority voting yes.
On item 13, the board approved initiating formal rulemaking for updates to administrative remedy regulations—changes intended to align employer audit and appeals processes with AB 1667 (overpayments and audit adjustments) and to streamline executive reviews. The board scheduled a public hearing for September and will accept written comments during the notice period. The motion passed on roll call vote with multiple yea votes and some abstentions as recorded in the meeting minutes.
Ending: Staff will publish the proposed regulatory language for public comment, hold the noticed hearing in September and return to the board with final adoption items in November if no amendments are needed or with amended language and an additional comment period if substantive changes are required.
