CTA representatives are urging legislators to allocate a record $11 billion in surplus retirement fund earnings toward boosting benefits for teachers and other instructional personnel.
Benefits provided by the State Teachers' Retirement System lag those enjoyed by other public employees. The Teacher Pension Equity Act, which is contained in a CTA-sponsored measure, AB 2201 by Assembly Member Mike Honda (D-San Jose), addresses those issues. It would:
Raise the purchasing power guarantee to 80 percent - This would ensure that the pensions of STRS members would never fall below 80 percent of the pension payment's original purchasing power. It would boost the current guarantee by five points.
Provide a 2 percent per year factor at age 55 - This would eliminate the actuarial pension reduction for STRS members who retire at 55. Current law provides incentives for teachers who remain employed until age 63.
Allow STRS members to elect their governing board - It would expand the governing board's membership to 13 from the current 12 and double to six the number of STRS member representatives who serve. It would also allow STRS members to elect their six representatives. At present, the governor appoints them.
Compound COLAs - Under current law, STRS members receive a flat 2 percent cost-of-living adjustment figured on the original pension amount. This provision would allow the COLA to be calculated on a new figure that folds previous years' COLAs into the pension payment base.
Base pensions on the highest year of compensation - The Pension Equity Act would require that STRS pensions be calculated on the employee's highest single year of compensation rather than the average of the highest three years.
Cover retiree health benefits - The measure would also provide health benefits for STRS retirees.