CA AB1875

Permits irrevocable trusts established for disabled individuals to be designated as option beneficiaries or annuity beneficiaries under the State Teachers' Retirement System (STRS) Defined Benefit Program and Cash Balance Benefit Program, reversing the prior prohibition on trusts as option beneficiaries.

Requires qualifying trusts to satisfy specified federal requirements, be established solely for a single beneficiary with successor beneficiaries only, and designates the trust's beneficiary as the designated beneficiary for determining benefit eligibility and amounts.

Mandates members and participants provide acknowledged certifications signed by all acting trustees at the time of trust designation and requires trustees to provide updated certifications after the member's death, including attestation that the trust has not been revoked or modified.

Allows members and participants to change beneficiary designations without penalty to designate a trust as beneficiary if the trust's beneficiary is the same person previously named and the trust meets specified requirements.

Provides the Teachers' Retirement Board immunity from liability for determining trustee powers or trust validity when acting in good faith, and specifies that if a trust becomes invalid or terminates, benefits transfer to the trust's beneficiary if eligible.