What effect does AB 2700 have on members of the CalSTRS Defined Benefit Program?
The provisions of AB 2700 became effective July 1, 2002, and enhances members’ benefits by expanding the types of service and compensation that are creditable to CalSTRS for retirement purposes. Compensation for summer school and intercession along with stipends for extra duties performed are now creditable. In addition, contributions by the member and the employer on compensation earned for service in excess of one year will be credited to the member’s Defined Benefit Supplement, or DBS, account at the end of the fiscal year. Certain other special compensation will also be credited to DBS. These additional contributions will increase the member’s DBS account and provide a supplemental benefit without reducing the benefit payable under the DB Program.
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