CA AB1469

Vests the 2% improvement factor (annual cost-of-living increase) as a contractually enforceable benefit for active members in calendar years when they pay increased member contributions under Section 22901.7, beginning July 1, 2014.

Increases active member contributions to the Defined Benefit Program in three phases (0.15% on July 1, 2014; 1.20% on July 1, 2015; 2.25% on July 1, 2016), with different percentages for members subject to the Public Employees' Pension Reform Act of 2013.

Increases employer and state contributions according to prescribed schedules, starting July 1, 2014, to eliminate unfunded actuarial obligations by June 30, 2046, with contribution rate adjustments capped at 1.00% per year and a maximum of 12.00% total.

Requires the Teachers' Retirement Board to report to the Legislature by July 1, 2019, and every five years thereafter, on the fiscal health of the Defined Benefit Program and unfunded actuarial obligations for service credited before July 1, 2014.

Establishes that all provisions are non-severable and declares the bill takes effect immediately as a budget-related appropriation measure; all legal challenges must be filed within 60 days in Sacramento Superior Court.