CA AB1667

Establishes audit procedures requiring STRS to notify affected public agencies and exclusive representatives of audit purpose and scope, provide preliminary findings for written response within 60+ days, and issue final reports with appeal rights to agencies and affected members.

Requires STRS to publish final employer audit reports on its website with personal information excluded, and allows employers and members to request administrative hearings within 90 days of final audit reports.

Allows employers or exclusive representatives to request advisory letters from STRS beginning July 1, 2023, for written guidance on compensation reporting; compensation reported per advisory letters deemed system errors if later found incorrect.

Establishes new rules for recovering overpayments effective July 1, 2024: 85% recovered from General Fund and 15% from employers proportionate to contribution share for system errors; recoveries from employers/employees/members for their own errors; includes regular interest on overpayments.

Prohibits retroactive application of new compensation and creditable service interpretations to prior reported compensation unless required by state/federal law or Governor's executive order; limits benefit reduction to 15% for recipient errors but removes 5% cap for system errors.