SB538 - Public Employees’ Retirement System: teaching service.

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Senate Bill No. 538 Introduced by Senator Dahle February 20, 2025 An act to amend Section 20309 of the Government Code, relating to public employee’s retirement. LEGISLATIVE COUNSEL'S DIGEST SB 538, as introduced, Dahle. Public Employees’ Retirement System: teaching service. Existing law authorizes a member of the Public Employees’ Retirement System (PERS) who is subsequently employed to perform service subject to coverage by the Defined Benefit Program of the State Teachers’ Retirement Plan to elect to retain coverage by PERS for that subsequent service. Existing law prescribes requirements for the exercise of this election, including that the election be submitted in writing, as specified, within 60 days after the member’s date of hire to perform the service. Existing law authorized, until January 1, 2024, a member of PERS who provided emergency teaching services pursuant to a specified executive order to elect to retain coverage notwithstanding the failure to meet specified administrative requirements. This bill would authorize a member providing services as a substitute teacher, as defined, under certain circumstances to elect to retain coverage under PERS. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. Section 20309 of the Government Code is amended to read: 20309. (a) A member of the system described in subdivision (b) who subsequently is employed to perform service subject to coverage by the Defined Benefit Program of the State Teachers’ Retirement Plan, may elect to retain coverage by this system for that subsequent service. An election to retain coverage under this system shall be submitted in writing by the member to the employer on a form prescribed by the system within 60 days after the member’s date of hire to perform service that requires membership in the Defined Benefit Program of the State Teachers’ Retirement Plan. The employer shall retain a copy of the employee’s signed election form and submit the original signed form to the system. A member who elects to retain coverage under this system pursuant to this section shall be deemed to be a school member while employed by a school employer. (b) This section shall apply to a member of the system who either (1) was employed by a school employer, the Board of Governors of the California Community Colleges, or the State Department of Education within 120 days before the member’s date of hire to perform service that requires membership in the Defined Benefit Program of the State Teachers’ Retirement Plan or (2) has at least five years of credited service under this system. (c) Any election made pursuant to this section shall become effective as of the first day of employment in the position that qualified the member to make an election. (d) A member providing emergency teaching services pursuant to Executive Order No. N-3-22 is eligible to elect to retain coverage under this section, notwithstanding the requirements in subdivision (a). The exception in this subdivision does not exempt any individual from any other requirement for eligibility to make the election authorized by this section. The eligibility to elect to retain coverage as authorized by this subdivision shall remain in effect only until January 1, 2024. (e) (1) On and after January 1, 2026, a member providing services as a substitute teacher is eligible to elect to retain coverage under this section, notwithstanding the requirements in subdivision (a). The exception in this subdivision does not exempt any individual from any other requirement for eligibility to make the election authorized by this section. (2) For purposes of this subdivision, “substitute teacher” means a person who has a valid permit to substitute teach in this state and who does not exceed 30 days per year teaching.