Home California Senator Cortese Presents Bill to Ensure Equity & Stability for California’s Oldest Retired Teachers

Senator Cortese Presents Bill to Ensure Equity & Stability for California’s Oldest Retired Teachers

Press Release

by ECT

Senator Dave Cortese (D-Silicon Valley) has introduced SB 868 to ensure equity and financial stability for California’s oldest retired educators. SB 868 is sponsored by the California Teachers Association (CTA) and the California Retired Teachers Association (CalRTA).

Teachers in the California State Teachers’ Retirement System (CalSTRS) who retired before 1999 receive comparatively less benefits than their peers who retired in the early 2000’s or after.

Compounding this, these retirees, overwhelmingly women, have been disproportionately impacted by tremendous financial hardships including inflation erosion, increased health care expenses, and widening holes in Medicare coverage.

While these retirees are struggling to keep pace with rising inflation and California’s complex economy, the Supplemental Benefit Maintenance Account (SMBA), a special account in CalSTRS that protects retirees from inflation, holds a projected excess of $11.2 billion in funds.

SB 868 would equitably distribute excess funds within CalSTRS’ Supplemental Benefit Maintenance Account to California’s oldest retired teachers that are most in need.

Our educators, those who gave their life to developing our next generation and equipping students with the skills they need to succeed, deserve respect and security in their retirement, and they deserve to be treated fairly,” says Senator Cortese.  “SB 868 will not only create equity among retirees, it will also draw new teachers to the workforce at a time when they are so desperately needed in our classrooms.”

“All students need caring, qualified and committed educators in their public schools. Unfortunately, we are in the midst of an unprecedented teacher and school staffing crisis that must be addressed in every way possible. Ensuring educators can retire with dignity and security after decades of service to our public-school students is critical to attracting and retaining teachers and school staff. We thank Senator Cortese for his leadership and believe SB 868 will help CalSTRS retired members most in need of assistance while not compromising the financial integrity of the SBMA and its ability to provide that inflation protection long term,” says E. Toby Boyd, Kindergarten teacher and CTA President

SB 868 helps California’s oldest teachers, the ones who feel inflation the most. This important bill will ensure our retired teachers can sustain financial security in their most senior years,” says Ron Breyer, CalRTA President

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