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 Bill Text - SB-853 Public employees’ retirement.

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 |Add To My Favorites |Track Bill | Version: 10/01/25 - Chaptered
 09/16/25 - Enrolled
 07/15/25 - Amended Assembly
 04/21/25 - Amended Senate
 04/10/25 - Amended Senate
 03/04/25 - Introduced

 SB-853 Public employees’ retirement.(2025-2026)

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 Date Published: 10/02/2025 02:00 PM

SB853:v94#DOCUMENTBill Start

 Senate Bill

 No. 853

 CHAPTER 239

An act to amend Sections 22104.8, 22131, 22146.5, 22713, 22954, 22955, 22955.1, 24616.2, and 26122 of the Education Code, and to amend Sections 7522.02, 20034, 20069, 20638, 20639, 31462.05, 31470.14, and 31680.9 of the Government Code, relating to public retirement systems. 

 [
 Approved by

 Governor
 October 01, 2025.

 Filed with

 Secretary of State
 October 01, 2025.
 ]

LEGISLATIVE COUNSEL'S DIGEST

SB 853, Committee on Labor, Public Employment and Retirement.
 Public employees’ retirement.

(1) 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, creditable service, and age at retirement, subject to certain variations. STRS is administered by the Teachers’ Retirement Board. Existing law requires employers and employees to make contributions to the system based on the member’s creditable compensation. Existing law defines terms for the purposes of STRS. 

Existing law defines “employer” or “employing agency” to mean the state or any agency or political subdivision thereof, including a joint powers authority, as specified. Existing law also defines “membership” under the
 Teachers’ Retirement Law to mean membership in the Defined Benefit Program, except as specified.

This bill would provide that the board has final authority for determining an “employer” or “employing agency” for purposes of the Teachers’ Retirement Law and related provisions governing teachers’ health care benefits. The bill would also provide that the board has final authority for determining membership in STRS, as specified.

Existing law authorizes the governing board of a school district or community college district to establish regulations, subject to specified requirements, to permit an employee who is a member of the Defined Benefit Plan to reduce their workload from full time to part time and have retirement benefits calculated as if the employee was employed full time. Existing law requires the agreement to reduce a member’s workload to be terminated if one of specified actions is taken, including if the member
 performs less than 1/2 of the days or hours the employer requires for full time in that position.

This bill would revise that provision to instead require the agreement to be terminated if the member earns less than 1/2 of the annualized pay rate, as defined.

Existing law makes a continuous annual appropriation from the General Fund to the Controller for transfer to the Supplemental Benefit Maintenance Account in the Teachers’ Retirement Fund, as specified. Existing law requires that transfers made to that account occur on October 15 and April 15 of each fiscal year with each payment to be 50% of the annual appropriation. 

This bill would provide that if either date falls on a weekend
 or holiday, the funds will be transferred the next business day.

Existing law also makes certain continuous annual appropriations from the General Fund to the Controller for transfer to the Teachers’ Retirement Fund, as specified. Existing law requires the total amounts to be divided into 4 equal payments made on July 1, October 1, December 15, and April 15 of each fiscal year, or the following business day after.

This bill would delete the above-described reference to “on the following business day after” and would instead specify that if any of these dates fall on a weekend or holiday, the funds shall be transferred the next business day. 

Existing law establishes procedures governing the recovery of amounts that have been overpaid due to an error by STRS and requires recovery with interest, as specified. Existing law requires a specified amount to be made as a continuous
 appropriation from the General Fund to the Controller each July 1, for transfer to the Teachers’ Retirement Fund.

This bill would provide that if July 1 falls on a weekend or h