SB 1220 Summary

• Amends the Teachers' Retirement Law to revise definitions of key terms including "break in service," "creditable service," "credited service," and "final compensation" to account for part-time employment, PEPRA limitations, and service calculation methods.

• Establishes requirements for joint powers authorities to serve as employers providing creditable service under the Defined Benefit Program, including formation under the Joint Exercise of Powers Act and reporting through a single county office of education.

• Reorganizes and revises provisions governing members' election of retirement benefit payment options, particularly regarding beneficiary designations, option changes after retirement, and situations where beneficiaries predecease members.

• Grants members who retired with same-sex spouses or same-sex former spouses designated as beneficiaries the right to change their benefit options between July 1, 2015 and December 31, 2015 under specified conditions.

• Expands the definition of "vendor" for tax-deferred retirement investment products (403(b) plans) to include public retirement systems, broker-dealers, investment companies, and life insurance companies, and adds restrictions on school district waivers regarding STRS-related provisions and health care benefits.