CalSTRS staff brief employers on AB 1997 sequencing, pregnancy leave and investment‑disclosure risks

Joycelyn Martinez‑Wade, director of Governmental Relations, reviewed multiple bills and regulatory actions relevant to employers and CalSTRS operations.

AB 1997 and related regulations
Martinez‑Wade reiterated that regulations implementing AB 1997 (the creditable compensation simplification bill) were approved by the Office of Administrative Law in April and will be codified July 1, 2026, but will not take effect until July 1, 2027 when AB 1997 becomes effective. She said the regulations contain New File Format changes and that training related to AB 1997 will follow.

Bills under review or board consideration
She said the board has a support position on AB 65 (proposal to provide up to 14 weeks of pregnancy leave for educators) and that staff would present AB 1619 (board member per diem increase) and AB 2417 (community college part‑time faculty Social Security materials) for board consideration at the May 28 Teachers' Retirement Board meeting. Staff recommendations on AB 1619 and AB 2417 were neutral at the time of the meeting.

SB 1319 and investment disclosure
Martinez‑Wade described staff analysis of SB 1319 (California Public Records Act amendments related to alternative investments), saying the investment team estimated the bill could reduce returns by about 0.5 percentage points (from 7% to 6.5%), increase general‑fund contributions by an estimated $2.6 billion per year and raise certain member contribution rates (for 2% at 62 members by about 1.5 percentage points). She said CalSTRS posted a staff recommendation to oppose and the bill was held on the Senate Appropriations suspense file.

Timing and administrative remedies
Martinez‑Wade also noted an Office of Administrative Law suggested 15‑day comment period for administrative‑remedy regulations tied to AB 1667 and explained the package will be restarted in September to accommodate board meeting timing.