CA SB868

Creates new Section 24410.8 to establish supplemental benefit increases from the Supplemental Benefit Maintenance Account beginning July 1, 2023, with increases based on retirement date: 0% for retirements after December 31, 1998; 5% for January 1, 1990 to December 31, 1998; 10% for January 1, 1980 to December 31, 1989; and 15% for prior to January 1, 1980.

Increases determined on July 1, 2023 shall be augmented by an additional 2% each year commencing July 1, 2024, with increases not compounded.

Supplemental payments are paid quarterly in addition to existing payments under Section 24415, are not part of the base allowance, and are payable only to the extent funds are available from the Supplemental Benefit Maintenance Account.

Amends Sections 24415 and 24417 to exclude the new Section 24410.8 benefits from the purchasing power restoration calculations and to specify that purchasing power for these new benefits is based on changes in the Consumer Price Index between June 2023 and the relevant fiscal year.

Benefits are vested only up to amounts from annual appropriations and adjustments made by the Teachers' Retirement Board, and do not apply to annuities from accumulated annuity deposit contributions or tax-sheltered annuity contributions.