In California Supreme Court
The Board of the State Teachers' Retirement System (STRS) on July 7 filed a write of mandate in the California Supreme Court, legal action designed to compel California to pay the pension system more than $500 million due its Supplemental Benefits Maintenance Account (SMBA).
The funds, withheld from the teachers' retirement system as a result of the enactment of SB 20x, are also the subject of a CTA-sponsored measure, AB 265 (Mullin/Negrete McLeod).
The withheld moneys are used by STRS to underwrite the purchasing power guarantee that protects STRS retirees from inflation.
The suit names Director of Finance Steve Peace and State Controller Steve Westly as respondents. The filing asks the state's highest court to take the issue up directly because of its urgency and importance to the parties and the state.
The California Supreme Court could decide to rule on the suit because of its urgency and importance. It could also direct a lower court to take the issue up.
The suit lists the Teachers' Retirement Board, Karen Russell - a retired teacher and STRS Board Member, and Carolyn Widener - an active teacher and STRS member - as plaintiffs.
CTA has been pressing for the passage of its sponsored measure, AB 265 - which is supported by the STRS - because it would represent a speedy resolution to the issue that would allow the state to repay the funds over a payback period.
CTA representatives have been working closely with STRS to secure repayment of the funds.