CA AB1997

Redefines "annualized pay rate," "compensation earnable," and "creditable compensation" for the State Teachers' Retirement System (STRS) to distinguish between base pay and supplemental pay, with supplemental pay excluded from compensation earnable calculations.

Creates new definition of "position subject to membership" to standardize which positions qualify for STRS coverage, including credentialed positions at school districts, charter schools, and community colleges designated through resolution or collective bargaining agreement.

Simplifies "creditable service" to mean service in a position subject to membership, replacing the previous detailed list of specific activities that qualified for retirement benefits.

Establishes that the Teachers' Retirement Board will determine implementation date (no later than July 1, 2027) for all changes, with old provisions becoming inoperative on that date and repealed by July 1, 2027.

Makes an appropriation to the Teachers' Retirement Fund due to changes in how creditable compensation is calculated and contributions are credited to the Defined Benefit Program versus Defined Benefit Supplement Program.