Senate Bill 327 – Reduces The Timeframe Members May Backdate Their Service Retirement Or Service Retirement During Evaluation Of A Disability Application

Existing law establishes the State Teachers’ Retirement System (STRS) and creates the Defined Benefit Program of the State Teachers’ Retirement System.  STRS is administered by the Teachers’ Retirement Board.  Existing law authorizes a member of STRS eligible for and who applies for a disability allowance or retirement to apply to receive a service retirement pending the determination on their application for disability, subject to certain conditions.  As a condition, the member must submit an application on a prescribed form by STRS for disability.  Existing law further provides that if a member’s application for disability is denied or canceled, the service retirement date of a member who submits an application pursuant to these provisions may not be earlier than January 1, 2014.

SB 327 amends existing law as follows:

• Prohibits the service retirement date of a member who submits an application for retirement under these provisions from being earlier than 270 calendar days prior to when the application for service retirement is received by STRS.
• The service member’s retirement allowance terminates no earlier than 270 calendar days prior to the date STRS received the applicant’s application for service retirement following the denial or cancellation of an application for disability retirement.
• The effective date of the service retirement for a member who applied under a specified formula applicable to members 55 years of age or older is no earlier than 270 calendar days prior to when the application for service retirement is received by STRS.

Lastly, the revisions under SB 327 are not effective immediately.  The bill requires the Teachers’ Board determine the date implementation based on STRS capacity to implement the changes.  The Teachers’ Retirement Board must post the date of implementation on STRS website no later than January 1, 2026.

(SB 327 amends, repeals, and adds Sections 24201.5 and 24204 of the Education Code.)