AB 996: State Teachers’ Retirement System: investment products.

Existing law requires the Teachers Retirement Board to establish a vendor registration process through which information about tax-deferred retirement investment products shall be made available for consideration by public employees of all local school districts, community college districts, and county offices of education, among others. Existing law requires the board to maintain an impartial investment information bank, via an Internet Web site, with specified information about the retirement investment products offered and objective comparisons of vendors. Existing law also prohibits specified personnel from receiving consideration for promoting a particular vendors products.

The bill would require the investment information bank to include a side-by-side comparison of each registered vendor. The bill would also require all local school districts, community college districts, and county offices of education to adopt a policy addressing the solicitation of 403(b) products, as defined, by vendors on school campuses. Because the bill would require local agencies to perform additional duties it would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.